How To Invest £30,000 In A Buy To Let Property | Samuel Leeds
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- Опубликовано: 17 июн 2022
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Somebody below (Charlie Sharp) questioned and brought up the matter of factors not addressed in this video (and many other similar videos) when it comes to presenting the figures. They often don’t mention such annoying little things like “income tax” when presenting the apparent “profits”. Charlie Sharp did a nice little estimate that you can see in his post but essentially these show that for the higher rate taxpayer the profit (not even factoring in other ‘unforeseen situations’ ) is circa a mere £1500/year on an example like this. Check it out.
I think he’s absolutely right. These type of videos never seem to factor those things in.
Also, there are the additional purchase costs that often don’t seem to be mentioned e.g. the EXTRA stamp duty that is incurred in buying anything over your first property which is ‘lost’, dead money.
And, that’s assuming absolutely NIL other initial costs such as a redecorating/refurbishments etc.
As said, a net profit of £1500 starts to look pretty poor on a £70K (plus lost initial costs as above) investment/exposure with 25% down and a mortgage.
£1500 really isn’t going to go very far these days.
I can see how this model works, the sums add up and can be worthwhile if done MANY MULTIPLE times over i.e. lots of small profits, from lots of properties but if we take the above example, you have to have 10 of these to even get £15k/year profit!
I’m not saying £15K isn’t some decent money but it’s not really going to be sufficient for anyone to rely on as their sole source of (passive) income, not work and “go skiing” instead.
For £150K/year…..100 of these properties?!
Now all these sums also work whilst the cost of borrowing has been and still remains very low. But will that remain so and for how long? We currently have inflation running at a 40 year high in the UK. Those of us old enough remember with fear the late ‘80s/ early ‘90s which is I bought my first properties when interests rates then hit circa 18% on our mortgages !
If you’re sitting holding a large number of properties that you suddenly can’t service the borrowing on and need to bail out quickly….and every other landlord in the same position is trying to do the same thing…you suddenly have a marketed flooded with properties for sale and hence falling prices. I could see how one could end up in a very nasty multiple negative equity scenario trying to sell lots of houses in a falling market which doesn’t bear thinking about.
I still have one BTL left (and my own home) after having to divide my small, debt-free property portfolio with my wife due to a divorce. I also have about £300K in cash and can’t decide how to invest it. One option of course is property. However, if I did, my inclination is to just buy one thing outright again with a single lot of initial ‘starting costs’, no borrowing costs and more importantly no risk because of potential interest rate hikes.
The other thing that these type of videos never seem to mention is the human dimension. By that I mean “for whom is this sort of model appropriate?”
Whilst going from “Broke to £10 million in 10 years” is undoubtedly impressive and I take nothing away from him for this, simply presenting the a set of numbers cannot be the whole story. Even if they do add-up to show an profit thus presented. The appropriateness of the model in the context of the individual’s circumstances need to be addressed and factored in.
For example, “Risk” is very rarely mentioned. All investments carry risks: Right all the way from walking into the Monte Carlo Casino and putting your entire worth on Black all the way to doing nothing and squirrelling your money away in the Bank which is also an inherent risk.
The ramifications of “risks” vary from individual to individual.
I’m 59 and retired, by the way. I think that’s significant and worth mentioning because I’m not young enough to take on massive risk whilst being prepared to lose it all and still have the time and energy to recover again.
I think what’s also probably worth mentioning is that IMHO the above model of risking buying multiple small properties, for multiple small profits with high borrowing (and attendant risks) is probably NOT a viable thing for people already in the ‘young family’ situation. From personal experience, having brought up three kids, it’s probably not appropriate to risk your children’s and partner’s security. This is often a time in peoples’ lives where you just don’t have ‘extra money’ to risk.
So, in that respect, I think it’s possibly more appropriate for the younger, dependent-free individual who essentially only has a responsibility to themselves and if they do ‘lose all’, no one else suffers and they still have time on their side to recover.
Doubtless, this has worked very well for some people who fit this profile in recent years whilst the cost of borrowing has been extremely low and I take nothing away from people like Samuel who have done this.
Add to this now the possibility of monetising one’s experience of doing this by making RUclips and other Social Media tutorial videos or even running courses on the subject as a parallel income stream and I think for some people this has all worked very well. Again, I think someone like Samuel deserve praise for his achievements in this regard.
All I question is whether it’s appropriate for everyone, especially now moving into a more uncertain future?
I’d also really appreciate any advice or suggestions from Samuel or others about what to do in my situation. Many thanks in advance.
Wow, an actual coherent and well written comment for once. 😄 I can’t agree with your statements more. I am due in the next year or so to decide what to do with my savings from being an IT contractor. Property was an option, following a similar model to this. However, I’m in Dorset, and would prefer to buy in this county rather than somewhere cheap like the midlands or up north, obviously anyone can trash your property but somehow I’d feel there’s less risk down here.
But like you say, the hidden costs make this model almost pointless unless you replicate it with 100 properties, and for that you’d need 3 Million’s worth of deposits! As you aren’t refinancing on an interest only unless you put more money in to do it up, and somehow squeeze out an extra 30k in valuation each time.
Would the same be said however doing this model but for properties worth more, for instance a house down here worth 350-400k deposit jumps to 100k potentially, but rents for those home are around 1800-2500pm - do all the hidden costs still make that unattractive?
Although less cash flow, I would prefer a repayment mortgage, as at least then my asset is being paid for, and I may have a chance to refinance it for property number 2 in due course.
As for your pot of cash, I would have said Bitcoin a year ago 😄 but that wouldn’t have ended well. But maybe buying in at this low, and then selling when it reaches back to its high of 60k a coin would be a nice return!
How about property angel investing? You give them 50k, they do all the hard work, turn the property around sell it, X amount back.
@@rw3078 Thanks!
So, as you have read, I certainly don't have the 'answers' but here are some more of my experiences and 'thoughts'...and they really are no more than 'thoughts'...that maybe useful for you chew over if you are due to retire.
So, my circumstances are...
My background is in Medicine, as an NHS consultant surgeon. I won't bore you with the details but for one reason and another I always knew that my NHS pension wasn't going to be great and that I also wanted to retire early.
So, during my career my wife and I built up a small portfolio of: one house that we lived in, a big house in France and also four houses that we rented out in the UK.
We did quite well out of these as all showed a bit of capital growth along with a decent % return in rent annually on the amount invested. I haven't done the exact figures lately but probably about 5% (AFTER tax and expenses - crucially!).
This was all well and very good!
I actually ended up being forced to retire because of health issues at 54. I had planned to go at 55 anyway probably. That was 4 years ago.
The problem was...I didn't foresee that 8 months into retirement that my wife of 30 years would suddenly decide to leave me, end our marriage via a phone call and then proceed to walk off with half of absolutely everything including my pension! There's no point fighting it....this is simply English Law whether it seems just or not.
I don't know what your circumstances are but I only tell you this to highlight "Beware of the totally unexpected!"
So, I'm now left with half my pension income, a house that I live in, one rental property and an amount of 'cash/liquid assests' sufficient to buy about another £300k house...or do something else with. I must admit the 'Coke and Hookers' option is sometimes tempting! 🤔
However, for me in some ways, the "property without further borrowing option" seems perhaps the most attractive simply because it's the one that I have the most personal experience of and hence just more comfortable with.
There is risk in any investment and I guess the greatest risk to the above at the moment is buying into a market that is already 'high' and seeing it fall. Not even because underlying demand isn't there but because the media and 'people' can talk it into a fall. If they talk about an "imminent crash" enough, they can precipitate one simply by people believing in this "impending disaster". People then stop buying, houses struggle to sell...hence prices go down!
I'm as guilty as anybody in that respect and it's what is giving me slightly cold-feet at the moment buying something right now! 😂
So, I've been tossing around other options. I even had a session with a financial advisor recently. He advised me about all these clever and complex investments in stocks, shares, bonds etc etc. However, he cautioned...the phrase "coverd himself" would be better...by continually saying that I needed to be in those for the "longterm e.g 5, 10 even 20 years."
At the end of this, I reminded him that I had been a cancer surgeon and that professional experience had taught me that generally people of nearly 60 years old can't be guaranteed a good quality of life or indeed any life at "5, 10 or 20 years" and that frankly anything which wasn't yielding fairly instant (I.e. certainly sub-5 year) results was of no interest to me whatsoever! 🤣
He looked fairly shocked and swallowed hard at the concept that people do actually....die! It seemed not to figure in any of his calculations. I found that surprising given that he looked about the same age as me. 🤣
Your suggestion regarding Bitcoin has actually been on my radar! I personally knew nothing about it until a few weeks ago when I got my eldest son (27) to give me a short tutorial. He's very bright and in the 2 years since graduating with a Master's in Mechanical engineering he's turned a few hundred pounds invested in cryptocurrency into £80K !
He gave me a template to use of about half a dozen currencies to invest in, of varying risk and suggested a % split between them.
I haven't done it yet and was glad given the recent falls. However he (like you) considers despite, or even because of this, now may still be a good time!
I can fully understand your feelings and rationale for wanting to buy property near to where you are and perhaps in areas with which you are familiar. But, it doesn't necessarily have to be so. All of ours were spread across the Midlands. I'm not sure people in the Midlands, North or anywhere else are more or less likely to be better or worse tenants than the SW or anywhere else simply by virtue of region! 😂
But, it's where you're most comfortable with.
I'd be seriously personally interested in what areas of the SW you'd be looking at to get those kind of returns in monthly rentals on a purchase price as you've suggested. Could you tell me, please?
Although I now live in the East Midlands, I have a lot of time on my hands to travel and so I don't mind searching in the SW plus above mentioned Son now lives in Bristol.
If I buy somewhere else, I'm prepared to buy anywhere. I will however use and pay for an agent to do the running. I can't be bothered with the hassle of actually dealing with tenants anymore.
I'd like to hear your thoughts and suggestions on that....or any other investment thoughts you have!
Cheers 🙂
Fuck sake mate that bored the arse right off me a paragraph in
@@CelticGlasgow20 😂
This comment is why I never even watch the videos - I only read the comments where the unbiased true experience is found. Thanks for sharing and congrats on your journey to success following divorce , divorce broke my uncle who slashed his wrists in the bathtub after years of living in poverty alone. You survived divorce which is a huge accomplishment
The actual figures were 600 - 110-20-60-60=350 per month which is 4200 per year
The maths in the video was so basic, second guessing the advice.
What about gas , electric , internet, water?
@@jiolopmiokop7820 people who rent the property pay for those bills, not the landlord
What about tax? I understand is about 40% tax for personal investment and 20% if you get it trough a company
@@beta12h no bud thats not true corporations pay 19% tax but sole traders pay between 0-60% tax (if you include national insurance) on a sliding scale the more you earn the more you pay but the money in a corporate account isn't yours its the companies money you still have to get it out and into your bank and pay extra taxes on it then
at this point I don't know if I watch your channel for the great information or your energy. entertaining and informative!
Great video, very straightforward, consise. It's great to see how your thought process helps you find a property. Oh and I've viewed properties down that street in Stoke.
Is there any help with how to set up and find property management companies that are rated highly, reliable and trustworthy? Can you recommend who to choose?
You forgot vacancy/void, council tax, and Intrest rates are not 2.5 even when you made this vid 9 months ago they were at 4%
Love your videos Samuel, Very inspiring stuff and how you have helped people and it has motivated me so much i cannot stop watching your content and after many years I feel the hunger coming back to take on new challenges. I am in Scotland though, not came across any others to see if things work slightly different for us with the methods you teach. hope you can clarify and would be great if you could do a crash course in Glasgow as I would be first to sign up. I have family in Birmingham and could have attended that one but it's fully booked.
Please be very careful Tazz. Samuel owns 10 companies and makes the majority of his money from his selling courses, setting out to achieve what he hasn’t himself achieved. There was a BBC documentary that exposed him and you can watch that by heading to the video entitled ‘Samuel Leeds BBC Investigation into Property Training’ on RUclips.
I myself am a fellow Scot who has luckily just come across this information and felt the need to pass it on. His schemes cost £1995 at a “reduced rate” from £12000 and promises to walk you through the entire process of your first buy. Many people pay it but they receive no support whatsoever. There was even a father that killed himself after being encouraging to enter debt to cover the costs of the course. Its all in the bbc documentary so might be worth a watch before going any further than just watching youtube. As far as im concerned the dudes a conman preying on those seeking financial freedom and the undercover footage make that more than clear.
@@bigmack198 thank you for the heads up, I will look into this and check the investigation video out and tread carefully
Hi Samuel do you have any videos on commercial property investing - I heard lot of advantages of this? Thanks big fan
Agreed. Just looking for my investing hot spot right now. I don’t want it close to me, as that could tempt me to manage it and that would be a bad use of my time
that was amazing! may God bless you, because you just changed my life, ive got some money saved up and I work day and night to save so now I am planning to do this.
So helpful Sam I am going for it🎉
I love the videos Samuel, only criticism is you never include the necessity to pay tax when calculating final returns. At a rent of £7200 a year, your tax burden if in the higher rate tax bracket is £2880. Factor in void period, certificates and agent fees, your profit would be around £1500 IMO. Excellent proof of concept however.
Yeah and factor in when things go wrong E.g. if the boiler packs up you will be spending around 3k. So you won't see any profit for a whole year. Lol
Every landlord knows the pit falls of reality as opposed to theory
I was a landlord for 15 years before selling off my 10 properties pre-covid.
Too many rogue tenants and a landlord hostile government to make it feasible anymore. Too much regulation and taxation to boot as well
@@KingShaf7
Hope you made a fortune and can retire without ever having to work
@@KingShaf7 You must be multimillionaire then?
And void rent periods, damages that aren’t covered by the deposit. A £70k house will be in a crap area with really terrible tenant quality so there will be many void periods and damages. My advice is to buy fewer houses in nicer areas.
Samuel u r one great fellow. The way u break down this things is amazing and quite easy to understand. Thank you man u r just a blessing
Almost like he's used to being on stage?
Amazing. Great video. Learning alot. Thank you so much for this
Just a quick question, 110 pounds per month, but that's only interest. The bank usually add interest to the installment. So if 52 500 pounds for 10 years, it means, you need to pay the bank, at least 5250 per year or 437.5 per month. Adding 110, then it is around 548 pounds that you need to pay the bank each month. Is my calculation correct? or is there a bank that only allows us to pay only the interest?
Scuppered that last subtraction there Samuel, considered the calculator but decided against it and mistakes were made haha. 490 - 260 = 330, 100 off in yours, regardless though it's definitely a good value,
How much does something like a rise in inflation swing that mortgage payment though? And how do you account for voids? Another 10%? So potentially we should take another £100 off at least and call it £230, maybe even £200 to be conservative..
So more like £2400 a year, 12 years to break even, around 7-8% ROI off the top of my head? Doesn't feel lucrative enough imo but that's also not considering appreciation.
Great illustration regardless though, keep it up :)
Yeah the maths didn’t work did it. 600 minus 110 is 490. Then 60 for maintenance, 20 insurance and 60 for management is 140 so 490 minus another 140 is 350 per month.
Oops 😂 but then no mention of voids? Assumption 100% occupancy. How do you then scale this and build up to 10 properties 🤔
If you look at capital appreciation:
70,000*1.06^12=141,000: new value of property after 12y if appreciation was 6%.
141,000-52,500=88,500: capital gain. 62,000 after tax?
30,000*1.063^12=62,000: ie 30,000 to 62,000 over 12y is ~6.3% annual return.
7%+6%=13% annually.
So what would you do with 30,000 instead?
Wekk you’d be waiting that long to see a return on investment but you would also still have the equity on the house you now own. So any appreciation in the house and you’ve done very very well. Not ideal in todays market climate but maybe be a good idea again in afew years when markets have bottomed out
Hello Samuel, and thank you for your interesting videos. I am European, and I lived in London many years ago. Can I, as a European, buy a house in England (or Ireland - Scotland) as an investment and rent it out? How landlord-friendly are the rules and regulations there, if at all possible at all? I've already done some research, but it contradicts what my London-based pals have informed me, so I'll ask you. Also what about taxes, are they high? Thank you
Is it easy for a german national to buy a Property in UK as now is brexit, like you mentioned! As I am really interested to buy and have a equity almost like 60 k..does that worth to go in all for first property? I would love to do stay in same flat and can do airbnb myself..does that works?
Hi Sam
We own our house out right and thinking of remortgaging to buy a apartment or terrace to rent out , would you would you pull out the full amount to buy the second property for cash or just enough for a deposit ? our place is worth 130 and looking at properties in the region of 80
Great video thanks for making it easy to understand
As a landlord myself I wish we could get 2.5% interest rates. Almost all of them are now between 5.3% and 7.5% now which means your interest only repayments have doubled or even tripled now depending on the term of the loan. I am literally just off with Barcley's an hour ago and their rates start nowhere less than 5%. Remember, if you can get a low interest, 10 year term deal, get it locked in. Do not wait around because you have no idea how high rates can go in this climate.
They’re not likely to go any higher tbh, if anything they will drop slowly over the next 5 years. I’d wait.
@BIG2hats they're still going up 😂
so is it a good time to buy at these rates?
@@alexandertraveler510 Honestly no on knows. The states just increased their rates by 025%. No one knows the future no matter who they say they are. If your comfortable with the risk go for it, if not they dont.
I just did a deal 4 months after your message at 4.15% locked in for 10 years. Going up to around 8% variable.
I did have a Barclays offer of 2.9% back in 2021 but they are too expensive now. That place fell through due to a ground rent issue changing the tenancy and also insurace
Also beware with some lease places as if the freeholder has to get the tenant out. They can take possession
Thanks for the informative content. I am from Tanzania, I would like to know if I will be able to invest in such properties in UK.
Will you always choose interest only mortgages? Does repayment not make sense so you can pay part of the principal (although more expensive monthly payments)?
No, because you need a cashflow, not repaying mortgage.
Depends on if you’re looking at cash flow/income replacement or long term investment. Remember that over 10 years or so inflation will half the real world cost of your mortgage repayments.
Hi thanks for your time but can you please help with a video about a lawyer fee, financial advisors in the UK? Rough prices thanks
Wow no word you are so brilliant..Godbless you you have also positive sprit
Samuel, I'm addict of your videos, thank you!!! What is your opinion of my idea if I want to buy a flat for renting it on airbnb?
So, what management comp would you recommend??
samuel, you needed to be a bit more transparent and give a proper calculation. you need to state ALL costs. for example the repair and maintenance you gave it as £60 a month, but as we all know if things go wrong , you can end up spending a lot more than that e.g. blocked drains , plumber could charge £100'ss for that, a boiler packed up could cost £3000 etc. this could mean you will see no profit for a whole year.
Also, you say the profit per month as £460, but you need to pay 20% tax on that ! so you will be left with around £370 per month.
you say the interest rate on a buy to let mortgage is around 2.5%, but in reality it is around 4% , especially if your credit rating is not great. which means your monthly mortgage payments will be a lot higher.
also, remember if it is a buy to let mortgage, this is not the same as a mortgage if you want to use it as a hmo. you need to obtain a different mortgage for a hmo.
and you will find it tough to rent this property out room by room as it is probably very far away from the town centre or a train station. also you will find it tough to get a management agent to manage the property if it is too far out from the town centre.
all i have said gives a clearer picture, otherwise people will just be misled.
without counting that in the calculation he didn't included the mortgage payment.
These guys want it to appear easy so they can sell courses
This is based on an interest only mortgage, which I’m not sure you can get unless you already own your own house ???
Would you use a Ltd company or personal ?
I’ve no experience of property but find your videos interesting. One thing I wonder is why are all buy to let mortgages interest only. Why not use the tenant to pay them off then in 25 years sell them and become mega rich instantly. Are they that much more expensive than interest only that it’s impossible?
Thank you, what if you only have 10k? Leverage via credit card? Is it best to buy via individual or limited company these days for your fiesta investment property?
Buy s&p 500 instead
Thanks For The Great Content
Samuel you are the best !
Can I still get a interest only morgage if it’s my first property
Thank you so much for this content. may I ask if the £109 monthly payment ( that's the 2.5% interest of the mortgage). My question is What of the monthly repayment of the 52500 mortgage (75% from the lender).
You don't repay the mortgage, you only pay the interest, it's called Interest only mortgage, you will always own the bank 52500. But if the value of the house goes up the bank won't take 75%, they will only take the 52500 that they gave you.
Hope that helps
Their system is different from where we're coming from. U only pay back the principal if you're reselling the house in the future
I'm sure the deposit on buy to let is much higher than 25% or is that if its a interest only buy to let. I'm looking to do the same but don't know if getting a buy to let interest only is the way to go.
25% is standard. Internet free is so you can cash flow, if you don’t care about cash flow then you can build equity in the property by paying the mortgage too
Some calculation need rectify. £490-140=350 Simon but i agree.
Buying costs, stamp duty and tax ??
Do you only pay interest on the mortgage then ?
Great video, thank you!
2 questions. 1, is the €110 a month not just the mortgage interest ? Excluding the actual mortgage ? 2, 490-140 = 350 on profit after expenses? Or am I missing something
Hi do I can legally rent out 4beds?using buy to let?can you recomend me broker?one broker told me that I can not use buy to let if I want rent out rooms
Thankyou brother this helped me alot
Thanks for the useful information..
Great insight, Samuel. But you have only calculated the monthly interest on the mortgage which comes to about 110 quid. What about the actual mortgage repayment? You did not account for that. One would be left with far less after that!
Yes, interest only would be better right.
So after doing further research, I just realised most people taking BTL mortgages only care about paying back the monthly interest. This is so they can have better cash flow. Hats off Mr. Leeds!
@@victoradedokun5878 Better cash flow but no real asset accumulation.... unless of course you bank on your BTL property increasing in value over time.
couple of things, firstly, you can pay the mortgage as interest only to free up more cash rather than paying the full payment. Or, if you're talking about profit as assets instead of cash, making the main mortgage payment is actually just a transfer of assets between cash and your equity in the house. You can essentially get that money back by re-mortgaging or selling the house.
hi l have a house in Gloucester on an interest only morgage.l owe £118000 with 11.11 years left on it .would buy to let be a better option or something else you are the Guru.
Hi mate love your videos, have you got property in herringswell Suffolk at all. ?
600 -110 - 140 after the morgage is paid is 350 a month x 12 =4200 income
I really want to learn how to invest in California been working for years pay check to paycheck if any advice please reply
Hi Mr Leeds!
Have a question:
I've got a mortgage of 330k (+30k deposit, so 360k total).
I'm toying between buying in London (outskirts only barely affordable area) or Manchester (where I can probably buy a really nice house) as I work in both areas.
I purely want to invest in the place that has greatest potential for equity growth (will want to convert to BTL in the future).
Ps I'm from London btw so will want to be there long term
Well, all I can say is both the areas are good for capital appreciation. So the question is do you want to live in a small property near London or a big house in Birmingham. It all depends on what you prefer. As I said either area is good.
Personally I would prefer to live in a house all to myself. Better and comfortable living.
The house prices in birmingham have gone up almost the same percentage as London.
Also with a house you can rent it out later room by room and get a better income than say if you rent out a flat near London.
All the best.
Manchester then rent a room or 2 to supplement the income as majority is tax free then
What about now that we are going into a global recession and many people will start becoming bad tenants as they lose their jobs, living costs become unmanageable and many stop paying rent?
Also now that the property market is about to roll over risk is high and potential reward is vastly reducing by the day. Would you say to wait 6 to 12 months until property prices have fallen or would you still invest now and risk having vacant property, or tenants not paying the rent, or property in negative equity due to the falling market prices about to happen?
Wow pessimistic. You may need to stick to bitcoin mate.
@@JoshuaH88 I wish you luck. You seem oblivious to reality my friend 😉
I get your point 😉 however there are opportunities to be had no matter the economic climate. Job availability is fantastic, unemployment is not being affected as you may think. There will always be risk. Good luck to you too
@@JoshuaH88 🤝
how did you calculate the monthly mortgage repayments ?
He's assuming an interest only mortgage. i.e. 2.5% x 52,500 giving annual interest of £1,312. This equates to £110/month. Don't think 2.5% mortgage will be available now.
How to turn a reception room into Bedroom.
You put a bed in it.
That was classic Samuel 😂😂😂
You explained that very well
Awesome Dude Thanks....
Appreciate the advice, but the numbers are all over the place, making this investment seem much better than it actually is.
Interest was 4%, not 2.5% at the time of the video, which means the mortgage was $278 on £110.
600-278-140= £182/m instead of the £460/m mentioned
Quite a change!
And this does not take into account vacancy/void, council tax, etc.
Please correct me if I am wrong
Wouldn't the tenant pay council tax?
Thank u Mr Leeds how du purchase Uk property if u outside the UK
Interesting content - but what about the money you need to put into the property to renovate it to a HMO, and also to potentially fix the EPC rating (cheap properties tend to have poor EPC ratings)?
I have 30k in the bank and am looking for similar properties - after the calculations I do the market looks very poor to make a profit for rentals- even presuming you know competent trades people to fix the properties up.
Hi - did you end up buying
Fuck the tax off and rent it for cash
Can you buy a property on a buy-to-let without owning a residential property?
Samuel iam impressed. Iam 67 ear old lady if I put deposit of 25 thousand .can I buy house the places you have shown. I never had owned property.its bater not to far from leicester will be ideal. posseble
How many are auction properties... Cash buy only!
No one picked up on his calculations error? 600 quid - 110 rent - 140 [insurance, maintenence, management] = 350 not 440. Don't know where he got 440 from. So instead of 5500 a year, you end up with 4100.
You just failed the aptitude test. Basic maths skills are not required on these training course and are positively discouraged.
Also you pay income tax on the profit of 20%. Not included here either
@@DMC888 lol, basic maths skills are essential in investing, you need to calculate your profit correctly or you could end up losing money. What a silly comment
Read my comment again, I said basic maths skills are not required on these training courses.
They're actively looking for gullible people with poor maths skills, as the figures they use are just pure fantasy designed to suck you in to paying £12k for more useless training.
People with good maths skills would see right through it. Have you not seen what the BBC, Joe Lycett and The Guardian have to say about this training and the high pressure selling?
Your basic calculations are wrong. Assuming £600 pcm rent then minus £110 mortgage £140 insurance, management and maintenance that leaves £350 not £460. If the tenant breaks it they fix it really, in what universe does that happen?
Management fee as well!? …. Inc tests for electrical / boilers ect …
That’s around 240-50 in the clear per month
Who pays the utility and water?
Great Video Sam, i cannot express how helpful and smart this is mate, well done, keep it up!
great informative video.
Hi Samuel, hope you are well? Could you recommend a mortgage broker?
Can you please advice me how I can start with £10,000 thanks.
Good information samuel i am looking buy a house in stock on Trent .
if you have a lot of equity in your residential property can you take some of that out to put down on a buy to let? if so do you have to prove that you can also afford both your own mortgage and the buy to let mortgage?
Yes you can and the affordability for a buy to let is different than a residential one it’s much easier as long as you have some sort of income coming in it’s normally good
@@mackers962 appreciate the response mate i shall look into it thanks.
No. You don't need to prove your personal income for a buy to let. It's all based on the rental income you will be receiving. Nothing to do with your own personal income or affordability. Solely based on if the rental income is enough to pay the buy to let mortgage.
Also remember you need at least 25% deposit for a buy to let. Sometimes more depending on the property.
Tread carefully though as we are at a start of a global recession, both the stock markets and crypto markets have fallen heavily, and this will not be good for the property market, likelihood of the prices falling in the next coming months.
@@The_Rizz_Lord_ thank you very much appreciated and helpful.
@@The_Rizz_Lord_ lol that is some very Newby advice. B2L is NOT based entirely off the rental income of the property though is more important in the calculations. Banks will need to know you can afford to pay the mortgage if you have void periods so you do need an income of sorts even if the bank says you don't. Most banks will also have a minimum personal income requirement of 20-25k per annum not including the new buy to let
Can someone explain how he got the mortgage to be £110, that’s just the interest part of the mortgage payments, no?
Samuel, I'll be honest, the first of your videos that I watched I thought you were a bit of a Tw@t, and I apologise, I think its just your energy! Having watched many many more, its clear I don't hold that opinion now.
As someone who is wanting to buy their first BTL in the next 6-12 months, I'm worried the market is about to turn, we are heading for recession (and I know thats good for rent), high interest rates, unemployment etc. Another worry is tenants that trash the place, don't pay rent, turn it into a cannabis farm etc.
It would be awesome if you could make a video on worst case scenarios and how to mitigate or handle these situations if and when they do arise.
Thanks!
Having a bad tenant is one of the worst things ever. You won't see Any rent for years. And you cant evict them easily.
That's why always go for professionals with good jobs, like doctors, bankers etc. Or even students. Remember students will have thier parents as guarantor. And they won't be bad tenants because you can report them to thier University and they will get kicked out from thier course, which is something they don't want.
Would this not be even more beneficial when the house prices crash even more?
Question: I was told banks don't offer buy to let mortgages to first time buyers. How to get round this?
You can't get around it. If you are a FTB then it will be assessed on your income like a residential mortgage (but you will get a BTL interest rate), alternatively if you have a trusted family member willing to go in on it then it may work but be aware of the stamp duty implications of this for them and so on
@@BrandNew777 Right but the buy-to-let mortgage is still doable\feasible while I have a considerable income right? And I do live separately - I live independently - there's no specific likelihood that I'll just try to occupy the buy-to-rent (which is the concern, right)?
Did the numbers wrong, 600-110-60-60-20 = £350 profit pcm, £4200 annual 👍
Thank you for putting that out there. I was itching and thought everyone missed it. It changes every thing.
And tax 20% ?
is 109 pounds not the interest payment only? so why did he not add the mortgage itself to the interest?
Love it.👍
interst only quoted here-whatabout the pricipal of 52,500? Buy to let mortgage will be more than 2.5 % interest rate. The rent for the flat will be more like 400-500 for the house and area in question. management fee will be 12.5 % not 10%. In current approaching market conditions, prices will be falling next year and beyond- 60,000 value will fall to 50,000 in 2 years.
gas safety cert, electrical safety certs, condition of boiler, condition of roof, drains etc. are not clear from looking on a website,
Prices will go up in 2 years my friend
Thank you mate
You only paying the interest off? Not the full mortgage?
Thanks to RUclips algorithm, that referred your videos to me.
Great video. Do you know if Americans get charged more for a down payment on a house?
Hello, I live in Turkey. The way you said you want to buy a house from England, but I have questions in my mind. Can I get a home loan without a residence permit? How can I rent the house? Is it possible to buy a house remotely?
You would be better off buying in Turkry and doing it as a holiday let, or making it a retreat
yes, you can but you would pay more legal costs and the deposit will be asked higher than 30% for non-residentials.
Is it best to get your buy to let property under a ltd company ?
foctor in accountancy costs if you do that
You are amazing!
7 GODS NUMBER - thanks for throwing that in...i caught it. bless u
Hello Samuel, I live in ontario CA and would love to take your course as well as be your first Financial Freedom challenge here. What says you?
Oh wow. We are neighbors. I am in san bernardino.
I think Samuel helped someone secure a rent to rent in philly. Not sure if he has helped anyone else in the US.
What about the tax I would have to pay on the rent ??
Top man🙌
Fantastic...u make it sound to easy lol
How do you find time to view propertys all across the country though
Viewuber
I’m Australian. My father was born in London so I’m a citizen of uk at birth. I have never been to uk and am now wanting to live there. I will be coming over with about 70,000 pounds I think it will be and no job. I’m very interested in doing this but I will have no credit rating. Will a bank still lend to me with no job or credit rating? I’m wanting to do this as a job. I am wanting to do your course. I have no idea where to start. Please help me.
Start with samuel leeds £1 crash course first
30k that means I don't need ALL the money in the world. Thanks so much.
Have we factored in a nice emergency fund for when things inevitably go pear shaped 🤔
I wonder what the figures are now with current interest rates....
so you are saying if I have 30 000 pounds in the bank I can have a property for 70 000 , ok does that mean it is possible to get that mortgage from the bank even if I have no job ??
Fixed interest rate 2,5% is for 2 years. After two years it's about 6% (Barclays). Make your maths if it really worths
You said that very well
Good video, but wrong calculations.
You're left with £350 and that's without paying any of the money off that you borrowed (interest only).