I am glad I made productive decisions about my finances that changed my life forever. I am living in Vancouver Canada, bought my second house in September and hoping to retire next year at 50 if things keep going smoothly for me
I bought a property in 2014 for 235k and selling it in 2023 for 215k. Property prices for flats are falling due to landlords exiting the rental business.
There’s a hell of a lot of new builds that have no where near doubled in price over a 7 year period. Even in the hotspots on new builds you’re looking best case 6% yield which at current interest rates, general fees and likely high service charges is not going to leave you will much if any cash flow. To tie up 200k capital in the hope the price will double in 7 years doesn’t seem sensible to me.
Maybe you are looking in the wrong areas James? Out latest one is a few thousand below £500k in Manchester. Rent is a touch over £3k per month. Precise yield is 7.3%. This "best" mortgage figure is going to change every day but Mansfield Building Society is currently offering 75% LTV @ 4.79% for a limited company. Assuming you got this mortgage today your interest only mortgage would be £1,488. This gives £1,512 before costs (letting fees / insurance / etc) I would suggest very conservatively you would achieve a free cashflow (profit) of £1,000 per month. Capital required for this specific property is £125k plus stamp/legal. I hope this more specific example helps?
@@PaulSmithTouchstoneEducation Perhaps - I'm in HMOs and SA do can't comment just an observation. Although your example is a different proposition to purchasing 3 or 4 new builds worth at ~ £200k each. Likewise, your gross yield on paper is good but I'd assume after hefty service charges and management fee you'd be left with a fair bit less. My main hesitation with your strategy is you're at the whim of the market. Hard to add value to new builds so always the risk of having your capital tied up if things don't go your way. Let's see where we are in 7 years - maybe I eat a slice of humble pie !
@@jamesw3551 Or maybe I do! It is largely about lifecycle of both the investor of the market and the investor. I love SA and my team are still heavily into it for me. HMO's yes great cash flow, a bit more time intensive. Still very much worth it with the right effort. At one point I had way more than 100 HMO rooms. I don't really mention it. the prices we have been offered to sell our HMO's were more than I would have paid so we sold them.... Good luck wherever your investing journey takes you.
Abi, you say your portfolio is worth £5m, but how much is your debt .. even approx. ? In the interest of disclosure, think all your viewers would like to know so people can have a more balanced view.
Hi 007, it started at normal 75% lending, since then property values have increased, some properties have been remortgaged. Current LTV will be circa 65%.
@@PaulSmithTouchstoneEducation Thank you Paul. So net worth increased from £1.25 to £1.75m over 5-7 yr period. So perfectly feasible to argue that in 10yrs net worth would be £1m+.
With house prices currently the old maxim ‘past performance is no guarantee of future performance’ has never been so true. The house market has so many headwinds, not least affordability, interest rate increases and lenders tightening lending criteria. Some would suggest the house price / inflation spike chart shows the regular peaks and troughs of house prices and no real link to inflation- for example, have their biggest net rise and fall toward the right of the chart- with no corresponding spikes in inflation. Nicely presented and explained video though.
I’ve just come across your videos and I love them. I’m wondering if the knowledge I would get from taking your 2-day course would apply to other countries as well. I live in northern Italy. Could I invest in the way you teach in Italy as well? Thank you 🙏
Yep. And if you bought Bitcoin in 2015 it would have gone up 70 times so your £100,000 would now be worth £7million. Without any of the fuss of being a landlord.
Agreed and if you bought £1,000,000 bitcoin at $65,000 per bitcoin in November 2021 it would be worth $23,000 as I write this so your £1,000,000 would be worth £354,000. You would have lost roughly 66% in less than 18 months. Swings and roundabouts of investing. Thats why I like "safe as houses"..... Crypto can be great. In my view it is highly speculative. Only invest in crypto is you are prepared to lose it all. Good luck.
Very impressed with your presentation and knowledge of the property investment business. A £5m portfolio is a great achievement in a short space of time Abbie. Can I ask how much borrowing you have against that?
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
I am glad I made productive decisions about
my finances that changed my life forever. I am living in Vancouver Canada, bought
my second house in September and hoping to retire next year at 50 if things keep going smoothly for me
This is not the real Neil McCoy ward
You’re a legend Paul. Touchstone is like a University for property investing.
Thank you for sharing your knowledge and expertise. 😊
Very kind Simon, thanks for watching.
I bought a property in 2014 for 235k and selling it in 2023 for 215k. Property prices for flats are falling due to landlords exiting the rental business.
There’s a hell of a lot of new builds that have no where near doubled in price over a 7 year period. Even in the hotspots on new builds you’re looking best case 6% yield which at current interest rates, general fees and likely high service charges is not going to leave you will much if any cash flow. To tie up 200k capital in the hope the price will double in 7 years doesn’t seem sensible to me.
Maybe you are looking in the wrong areas James? Out latest one is a few thousand below £500k in Manchester. Rent is a touch over £3k per month. Precise yield is 7.3%. This "best" mortgage figure is going to change every day but Mansfield Building Society is currently offering 75% LTV @ 4.79% for a limited company. Assuming you got this mortgage today your interest only mortgage would be £1,488. This gives £1,512 before costs (letting fees / insurance / etc) I would suggest very conservatively you would achieve a free cashflow (profit) of £1,000 per month. Capital required for this specific property is £125k plus stamp/legal. I hope this more specific example helps?
@@PaulSmithTouchstoneEducation
Perhaps - I'm in HMOs and SA do can't comment just an observation. Although your example is a different proposition to purchasing 3 or 4 new builds worth at ~ £200k each.
Likewise, your gross yield on paper is good but I'd assume after hefty service charges and management fee you'd be left with a fair bit less.
My main hesitation with your strategy is you're at the whim of the market. Hard to add value to new builds so always the risk of having your capital tied up if things don't go your way.
Let's see where we are in 7 years - maybe I eat a slice of humble pie !
@@jamesw3551 Or maybe I do! It is largely about lifecycle of both the investor of the market and the investor. I love SA and my team are still heavily into it for me. HMO's yes great cash flow, a bit more time intensive. Still very much worth it with the right effort. At one point I had way more than 100 HMO rooms. I don't really mention it. the prices we have been offered to sell our HMO's were more than I would have paid so we sold them.... Good luck wherever your investing journey takes you.
Abi, you say your portfolio is worth £5m, but how much is your debt .. even approx. ? In the interest of disclosure, think all your viewers would like to know so people can have a more balanced view.
Hi 007, it started at normal 75% lending, since then property values have increased, some properties have been remortgaged. Current LTV will be circa 65%.
@@PaulSmithTouchstoneEducation Thank you Paul. So net worth increased from £1.25 to £1.75m over 5-7 yr period. So perfectly feasible to argue that in 10yrs net worth would be £1m+.
With house prices currently the old maxim ‘past performance is no guarantee of future performance’ has never been so true. The house market has so many headwinds, not least affordability, interest rate increases and lenders tightening lending criteria. Some would suggest the house price / inflation spike chart shows the regular peaks and troughs of house prices and no real link to inflation- for example, have their biggest net rise and fall toward the right of the chart- with no corresponding spikes in inflation.
Nicely presented and explained video though.
And when the population declines prices will go backwards.. just look at Japan.
Great stuff, love this Paul and Abi !
The power of leverage and compound interest is truly a wonder of the world 👍🏾
100% agree Clive
Enjoyed this 😊
thank you for watching :)
I’ve just come across your videos and I love them. I’m wondering if the knowledge I would get from taking your 2-day course would apply to other countries as well. I live in northern Italy. Could I invest in the way you teach in Italy as well? Thank you 🙏
Very interesting video.
Quality 👍
Very kind
Excellent video 👌
Thank you Keith
@@PaulSmithTouchstoneEducation my 19 year old how do l get him started . I've just watched the video . Is it best for me to do a buy to let for him .
@@marcdinning2249 great idea. Good luck.
What is CPD please?
Continuous professional development. Many professions need a certain amount of CPD hours per year. Hope that helps.
@@PaulSmithTouchstoneEducation thank you for clearing that up for me. Kind regards Chris
Yep. And if you bought Bitcoin in 2015 it would have gone up 70 times so your £100,000 would now be worth £7million. Without any of the fuss of being a landlord.
Agreed and if you bought £1,000,000 bitcoin at $65,000 per bitcoin in November 2021 it would be worth $23,000 as I write this so your £1,000,000 would be worth £354,000. You would have lost roughly 66% in less than 18 months. Swings and roundabouts of investing. Thats why I like "safe as houses"..... Crypto can be great. In my view it is highly speculative. Only invest in crypto is you are prepared to lose it all. Good luck.
Very impressed with your presentation and knowledge of the property investment business.
A £5m portfolio is a great achievement in a short space of time Abbie.
Can I ask how much borrowing you have against that?
Roughly 65% LTV Ian. Thanks for watching.
@@PaulSmithTouchstoneEducation Thank you!