Brilliant and this is exactly what I'm doing. Buying another property up north as a landlord while renting down here in London. The hope is to save the rent from up north via investments to buy another
In spite of how everyone is frightened and calling the crash, there is already an excessive amount of demand waiting to absorb it, which is another reason it's less likely to happen that way. This forecast was not made in 2008, at least not by the general public, as I will explain below. The ownership rate peaked in 2004, according to the other comment. We reached a peak in the second quarter of 2020 and are currently at the median level. From 2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.
Because they are used to bull markets, most people find it difficult to handle a decline, but if you know where to search and how to get around, you can make a sizable profit. It depends on how you plan to enter and leave.
@@sheliaswelttk2535 Given that we are not accustomed to such uncertain markets, the fact that the US stock market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@joshcassigham9800 My portfolio has been in the gutter for the entire year, so I started researching new ways to profit in the market, but everything I tried just seemed to miss the mark. Please let us know the name of your financial advisor.
@@sheliaswelttk2535 It was run by Juliet Eve Downey, who I learned about and got in touch with thanks to a CNBC interview. Since then, it has served as the point of entry and departure for the games we have emphasized. A search on the internet can be done if tracking is necessary.
@@joshcassigham9800 I just copied and pasted Juliet Eve Downey whole name into my browser, and her website appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.
Another great post Rob. Great balanced views here. It’s not all about the money (or people wouldn’t go on holiday or go to restaurants (cheaper to cook your own at home). Lots of reasons to do different things. Priority is key.
I love this video! This is what I have been telling my friends who want to get into the property market. As they are all living in London, they are all trying to buy in London. They hardly think about investing in higher yield / higher potential capital gain areas while they are renting in London. Especially most of them have no family, so the stability part might not be so much of a factor for them. This is all just personal choice, and how to be smart with ££.
Surprisingly convincing. The problem is that you can buy your own home with very little equity, yet you still get to keep all of the capital appreciation (minus the interest payments). Even better if you have Lodgers, because you can basically 'live for free'. But even if you don't, your appreciation is probably higher than your monthly mortgage payments on average
I definitely lose some flexibility, but in a few years I can refinance onto a BTL mortgage, and buy a new residential home (or just start renting if preferred). I like how thought provoking this video was though, because I wouldn't have considered the rental option previously
Thanks Andy! Agreed, the tax and borrowing options are far better for owner occupiers. Having lodgers is the ultimate (if you don’t mind the lack of flexibility and having the company)
What a great video. I'm new to investing so this is a serious consideration as I want to make the right decisions early on in my property career. Thank you for sharing
Great video. Love renting hate when people say throwing money away. On flexibility as well as hassle of selling moving most mortgage payment in first few years goes to interest not capital so if one moves and upgrades after a few years as people (estate agents, banks etc..) say it is OK to do ('don't worry you can sell your 'starter' home and move after few years) the new now bigger mortgage will have most of it going to interest (ie throwing money to the bank) again in first years not capital. And no one ever mentions hidden cost of lifestyle inflation over time that comes with owing vrs renting is throwing money away (endowment effect)
You do not have to live in the home you own, (you can rent it out), but you must never ever not strive to own your own home, whether you live there or not, but never ever forget to live in the home you own as ALL capital appreciation is free of Capital Gains Tax, this is an 'opportunity cost', and you can get a better LTV on your own home than you can with a commercial mortgage.
Once nice compromise is to own but to set your repayment term to as long as your lender will let you which could be, for example up to age 75. People don't typically do this because they think this means they will have to work until 75, but the reduction in opportunity cost that this affords might mean you can invest more elsewhere and then ironically this might mean you can actually retire earlier than you otherwise would (e.g. at around 55).
I am a landlord that rents… I get it! Think of it like a car, there are benefits to owning a car, there are also benefits of getting a car on subscription. If you own then you have all the maintenance to think about, but you have an asset albeit sometimes a depreciating one. If you subscribe, lease or hire, then maintenance is included and you have the flexibility to change easily. Bizarrely, I prefer to own a car and rent a home!
I genuinely think the biggest factor for deciding to buy or not (assuming you can afford it) is whether or not you have kids and therefore need to have a decent level of stability. There are also inheritance tax implications too.
I will only consider renting when the area I want to live in has a terrible ROI, and currently London and south England are the only possible places to have a low ROI. That can also be one of the reason why London rent rises higher than other places. But generally in the north and midland, where house prices are much more reasonable, it is almost always better to own a house rather than to rent if money is your first concern
I think that’s broadly right, although top-end homes anywhere can end up being cheaper to rent. But as I said in the video, for me money isn’t the primary factor
I was brought up with people saying you have to own a house asap and don't rent but as I've got older I can see the benefits of renting but as you say you need to invest. I actually own my home and had it paid off which felt good for a few weeks then decided to use some equity to buy the premises where I run my business. We're still in the same house but have a commercial property that pays the mortgage and that is half of what the rent was so still kind of mortgage free.
One way of looking at it is when you have a mortgage, you’re renting the money from the bank. If you’re using that money to earn a higher return than the interest you pay (like in your case) you’re winning.
or, hear me out, you can get a residential mortgage on your property and own it, live there paying mortgage towards it, feel it out and fine tune the place so it won't be having lots of minor issues when being rented out, while researching for your next project. when the mortgage term is up, take out a btl mortgage on it, use it to pay off your remaining mortgage and have the rest as a deposit for your next home/future rental property. residential mortgage rates are usually better than btl rates as well so you are not really losing out. it's not for portfolio landlords who want to hoover up 20 properties in 3 years, but a steady way for more relaxed property lovers to make good stable income while maintaining this fine hobby.
The only thing I would disagree with is the point about how if you own the house outright you're losing the opportunity to invest this in something else. It's quite easy to get an unencumbered loan based on this asset to then invest in other things, normally with really good interest rates compared to a mortgage etc as it's a safer bet when you already own the asset.
@@dlc2479 I'm not encouraging people to do anything. Just pointing out that if you own the house outright, it's not true that you're then losing the opportunity for better investments. If you are able to get a good interest rate (which you normally can with an unencumbered loan, as unlike a mortgage, there's little risk to the lenders as you fully own the asset) an unencumbered load is a good option to leverage the asset to then make other investments with. Obviously only if people are in a good position to do so.
Folk forget that in the UK it was not possible to rent in the private sector before 1985 as there was almost no stock to be had, this was because of rent control and anyone renting out a house would have their rent halved with no prospect of growth,
I was just wondering why you rented and didnt live in your own property, thanks. However, to clarify, CGT IS applicable IF you can't claim Personal Residential Relief (PRR), ie you dont live their 100% of the time, an example is if you separate from a partner and move out and rent, I know!!!
Don't you need your own property first before banks will consider offering you a buy to let? I thought I read/heard that from you either on your podcast on in your book.
Could you make a vide about air BnB. I'm currently living in the first property I have bought but I a thinking about moving then Air BnB this property. I want to know what factors I might be overlooking.
Not if you have income from other investments that covers your rent. Instead of equity in your home you have equity in other homes (or other asset classes)
@@PropertyHubUK You're assuming those investments will only ever go up. That will bite you big time and considering the market is down probably won't be long until you lose that income
I rent so I can use my capital to invest in rental assets that provide me with an income. I leverage that amount by 4 times by using Buy To Let mortgages.
thinks renting is fine whilst the sun shines . When you have to finish work early due to ill health you will find you are stuffed and the council won't be picking up the bill.
He is saying he rents where he lives and gets exposure to the property market via owning his rental properties. By renting where he lives he can move when he likes and upsize or downsize depending on his current needs with very minimal cost (doesn't have to sell his home).
@Dr Nickyyy hey doctor... so "cos" you are a doc and should be clever so... cooking at home is like living in your own home and eating out is like renting ??? So if you are renting, then you are technically eating out every day every single meal?! 🤔 If you have many properties(home) but you don't or not suitable for you and your family to live in it??? I know property is a business, but also, it's a home!
private landlords provide people with flexiblity, it's important for students, young professionals who aren't sure where to settle down yet, migrant workers this society desperately needs to function, or simply people who don't want the resposiblilties associated with owning a home. where do you expect those people to live if it's one house per person?
Brilliant and this is exactly what I'm doing. Buying another property up north as a landlord while renting down here in London. The hope is to save the rent from up north via investments to buy another
In spite of how everyone is frightened and calling the crash, there is already an excessive
amount of demand waiting to absorb it, which is another reason it's less likely to happen
that way. This forecast was not made in 2008, at least not by the general public, as I will
explain below. The ownership rate peaked in 2004, according to the other comment. We
reached a peak in the second quarter of 2020 and are currently at the median level. From
2008 to 2012, it fell by 3%, and in the second quarter of 2020, it dropped from 68 to 65.
Because they are used to bull markets, most people find it difficult to handle a decline, but
if you know where to search and how to get around, you can make a sizable profit. It depends
on how you plan to enter and leave.
@@sheliaswelttk2535
Given that we are not accustomed to such uncertain markets, the fact that the US stock
market has been on its longest bull run ever makes the widespread anxiety and excitement
comprehensible. There are opportunities if you know where to go, as you noted that it wasn't
difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I
would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@joshcassigham9800
My portfolio has been in the gutter for the entire year, so I started researching new ways to
profit in the market, but everything I tried just seemed to miss the mark. Please let us know
the name of your financial advisor.
@@sheliaswelttk2535
It was run by Juliet Eve Downey, who I learned about and got in touch with thanks to a CNBC
interview. Since then, it has served as the point of entry and departure for the games we have
emphasized. A search on the internet can be done if tracking is necessary.
@@joshcassigham9800
I just copied and pasted Juliet Eve Downey whole name into my browser, and her website
appeared right away. You've saved me several hours of arduous research, therefore I appreciate it.
Another great post Rob. Great balanced views here. It’s not all about the money (or people wouldn’t go on holiday or go to restaurants (cheaper to cook your own at home). Lots of reasons to do different things. Priority is key.
I love this video! This is what I have been telling my friends who want to get into the property market. As they are all living in London, they are all trying to buy in London. They hardly think about investing in higher yield / higher potential capital gain areas while they are renting in London. Especially most of them have no family, so the stability part might not be so much of a factor for them. This is all just personal choice, and how to be smart with ££.
Surprisingly convincing. The problem is that you can buy your own home with very little equity, yet you still get to keep all of the capital appreciation (minus the interest payments). Even better if you have Lodgers, because you can basically 'live for free'. But even if you don't, your appreciation is probably higher than your monthly mortgage payments on average
I definitely lose some flexibility, but in a few years I can refinance onto a BTL mortgage, and buy a new residential home (or just start renting if preferred). I like how thought provoking this video was though, because I wouldn't have considered the rental option previously
Thanks Andy! Agreed, the tax and borrowing options are far better for owner occupiers. Having lodgers is the ultimate (if you don’t mind the lack of flexibility and having the company)
If you own a SPV BTL company. You are working at home. Can you claim the rental fee as company expenses?
What a great video. I'm new to investing so this is a serious consideration as I want to make the right decisions early on in my property career.
Thank you for sharing
For me the biggest downside of renting (which you didn't mention in the video) is that it will restrict your mortgage options on your BTL
Great video. Love renting hate when people say throwing money away. On flexibility as well as hassle of selling moving most mortgage payment in first few years goes to interest not capital so if one moves and upgrades after a few years as people (estate agents, banks etc..) say it is OK to do ('don't worry you can sell your 'starter' home and move after few years) the new now bigger mortgage will have most of it going to interest (ie throwing money to the bank) again in first years not capital. And no one ever mentions hidden cost of lifestyle inflation over time that comes with owing vrs renting is throwing money away (endowment effect)
You do not have to live in the home you own, (you can rent it out), but you must never ever not strive to own your own home, whether you live there or not, but never ever forget to live in the home you own as ALL capital appreciation is free of Capital Gains Tax, this is an 'opportunity cost', and you can get a better LTV on your own home than you can with a commercial mortgage.
excellent & to the point!
Once nice compromise is to own but to set your repayment term to as long as your lender will let you which could be, for example up to age 75. People don't typically do this because they think this means they will have to work until 75, but the reduction in opportunity cost that this affords might mean you can invest more elsewhere and then ironically this might mean you can actually retire earlier than you otherwise would (e.g. at around 55).
Another option is to get an interest only mortgage on your residence - but I understand most lenders require 50% LTV for this.
@@singletrackmind84 And a very high salary
I am a landlord that rents… I get it! Think of it like a car, there are benefits to owning a car, there are also benefits of getting a car on subscription. If you own then you have all the maintenance to think about, but you have an asset albeit sometimes a depreciating one. If you subscribe, lease or hire, then maintenance is included and you have the flexibility to change easily. Bizarrely, I prefer to own a car and rent a home!
Bizarre to some maybe, but who cares - what makes you happy is more important than the numbers!
I genuinely think the biggest factor for deciding to buy or not (assuming you can afford it) is whether or not you have kids and therefore need to have a decent level of stability. There are also inheritance tax implications too.
I will only consider renting when the area I want to live in has a terrible ROI, and currently London and south England are the only possible places to have a low ROI. That can also be one of the reason why London rent rises higher than other places. But generally in the north and midland, where house prices are much more reasonable, it is almost always better to own a house rather than to rent if money is your first concern
I think that’s broadly right, although top-end homes anywhere can end up being cheaper to rent. But as I said in the video, for me money isn’t the primary factor
I was brought up with people saying you have to own a house asap and don't rent but as I've got older I can see the benefits of renting but as you say you need to invest. I actually own my home and had it paid off which felt good for a few weeks then decided to use some equity to buy the premises where I run my business. We're still in the same house but have a commercial property that pays the mortgage and that is half of what the rent was so still kind of mortgage free.
One way of looking at it is when you have a mortgage, you’re renting the money from the bank. If you’re using that money to earn a higher return than the interest you pay (like in your case) you’re winning.
or, hear me out, you can get a residential mortgage on your property and own it, live there paying mortgage towards it, feel it out and fine tune the place so it won't be having lots of minor issues when being rented out, while researching for your next project. when the mortgage term is up, take out a btl mortgage on it, use it to pay off your remaining mortgage and have the rest as a deposit for your next home/future rental property. residential mortgage rates are usually better than btl rates as well so you are not really losing out. it's not for portfolio landlords who want to hoover up 20 properties in 3 years, but a steady way for more relaxed property lovers to make good stable income while maintaining this fine hobby.
Flexibility is fine if you live alone or with a partner. When you have a family of five though certainty is (and must be) far more important.
Rob have you thought of getting an interest only mortgage on your residence?
The only thing I would disagree with is the point about how if you own the house outright you're losing the opportunity to invest this in something else. It's quite easy to get an unencumbered loan based on this asset to then invest in other things, normally with really good interest rates compared to a mortgage etc as it's a safer bet when you already own the asset.
Imagine encouraging over leverage in a high interest climate...
@@dlc2479 I'm not encouraging people to do anything. Just pointing out that if you own the house outright, it's not true that you're then losing the opportunity for better investments. If you are able to get a good interest rate (which you normally can with an unencumbered loan, as unlike a mortgage, there's little risk to the lenders as you fully own the asset) an unencumbered load is a good option to leverage the asset to then make other investments with. Obviously only if people are in a good position to do so.
@@jennarobinson4136 That's not how that works. Look up the term opportunity cost, that's what you're missing
Folk forget that in the UK it was not possible to rent in the private sector before 1985 as there was almost no stock to be had, this was because of rent control and anyone renting out a house would have their rent halved with no prospect of growth,
I was just wondering why you rented and didnt live in your own property, thanks.
However, to clarify, CGT IS applicable IF you can't claim Personal Residential Relief (PRR), ie you dont live their 100% of the time, an example is if you separate from a partner and move out and rent, I know!!!
why stock ? one can rent out the owned house
Don't you need your own property first before banks will consider offering you a buy to let? I thought I read/heard that from you either on your podcast on in your book.
Could you make a vide about air BnB. I'm currently living in the first property I have bought but I a thinking about moving then Air BnB this property. I want to know what factors I might be overlooking.
Yes but the rent is so high now that you don’t find
I have always wondered how those choosing to rent can afford it in later life ie once retired, that is going to be a massive expense surely?
Not if you have income from other investments that covers your rent. Instead of equity in your home you have equity in other homes (or other asset classes)
@@PropertyHubUK You're assuming those investments will only ever go up. That will bite you big time and considering the market is down probably won't be long until you lose that income
I rent so I can use my capital to invest in rental assets that provide me with an income. I leverage that amount by 4 times by using Buy To Let mortgages.
Will this work now with the rising cost?
@@senmuchak Yes it does
Yep same approach here
Thoughts on renting rooms in the house you live in?
I’m too antisocial but it’s a great strategy if you’re willing to do it. Lots of investors started out that way.
thinks renting is fine whilst the sun shines . When you have to finish work early due to ill health you will find you are stuffed and the council won't be picking up the bill.
Ever thought of renting an iron?
I was waiting for this comment 😂
What would actually help with these videos mate is if you gave some actual numbers from your situation. A bit of transparency would go a long way.
What numbers would you find helpful?
May I suggest investing in an iron for that T shirt 😂
Nah I’ll just rent one 😉
Once you have bought several houses, chances are you will choose to rent.
Makes no sense... you buy property and you rent out, don't you? So... what is the difference???
He is saying he rents where he lives and gets exposure to the property market via owning his rental properties. By renting where he lives he can move when he likes and upsize or downsize depending on his current needs with very minimal cost (doesn't have to sell his home).
Exactly. Plus wherever you want to live may not meet your criteria for a good financial investment.
did you watch the video? numpty!!
Just cos you can cook to save money doesn't mean you're going to cook everyday
@Dr Nickyyy hey doctor... so "cos" you are a doc and should be clever so... cooking at home is like living in your own home and eating out is like renting ??? So if you are renting, then you are technically eating out every day every single meal?! 🤔
If you have many properties(home) but you don't or not suitable for you and your family to live in it??? I know property is a business, but also, it's a home!
If renting was so good the rich wouldn't be forcing a future of rent only. Its a scam end of
ufffffff, you are a cutie
If you're landlord is watching this he'll probably put the rent up now lol!
😂 it’s only just gone up 17% -London rents are brutal!
@@PropertyHubUK ya bro I live I London too, think I just jinxed myself, my landlord has just put my rent up today, it's up 28% since late 2020!
People shouldn’t be able to own more than 2 houses.
Why not?
Bollocks.
private landlords provide people with flexiblity, it's important for students, young professionals who aren't sure where to settle down yet, migrant workers this society desperately needs to function, or simply people who don't want the resposiblilties associated with owning a home. where do you expect those people to live if it's one house per person?