Hi Justin, I’ve a number of Victorian terraced properties. If I was starting again I’d have invested in newer properties (built after 1990) because they are much less prone to damp, since they have cavity walls and a solid concrete ground floor with a proper damp proof membrane. Will be interested to see what your next investment looks like. Cheers David
The thing with newer properties is that they're quite a bit smaller & typically further out of the town/city centre. As long as you're on top of the damp proofing and also look at insulation, then they actually work really well. One of the things I'm doing with my properties is insulated plasterboard both front & back, as the actual side walls are insulated well enough. This fairly simple solution makes a massive difference and has corrected the (condensation) damp issues in the properties where I have done it. Another option is insulated lining paper, I did that in attic bedrooms & it makes a massive difference & goes from a building task into a relatively simple decorating task. The heat saving is really impressive as well, especially with the current state of bills!
@@marklewis3023 Thanks for the insight. It does sound like a good idea. I’ve also preempted internal mould on cold outside walls by using a kitchen & bathroom paint but throughout the whole house. It’s more expensive than a standard emulsion but contains a mould inhibitor so the house is less likely to have mould growth.
Thank you, for making this video. This is very helpful in understanding buy to let. I have seen many video but this has been the most honest and realistic of all videos have seen yet on you tube. Going to check your website now.
Great video. I’m 25 years in this business and you have the right understanding. Property is long term, not easy and not passive. However, I think your wrong about selling. Occasionally it’s the right thing to do… boost cash flow, opportunity, drop a bad egg etc.
Real house prices are the same in Q2 2023 as they were in Q2 2003. And since the peak in 2007 to today house values have declined by £70k. The Nationwide Data shows this clearly and what ‘property investors’ do not realise is that they have essentially been carrying out ‘inflation trades’ assisted by low interest rates inflating away debt. Profits are exaggerated if the value of the money between two intervals is not taken into account.
Great video Justin Interesting that the you tube algorithm only show me your videos now though this information would of been more useful months ago :) well explained Just wondering though in your video you said you couldn't buy many properties as you would of liked so is it not possible to use private investors to fill the gap with purchase refurbish refinance if its not can you explain what the issue is with this as i see many property entrepreneurs say oh yes get finance from investors ? but you have said you would rather use cash in the bank so maybe you could explain if their is some risk that some people are not telling people ? So do you have any videos on how you find private investors loans and what the pitfalls are that many people don't realize can happen ? not many people cover this ? thank you :)
My LL put up every year the rent. We live in London. Yesterday her agency told us she wants a rent increase of £230 per month. £1.900 for a month for 27sqm. Guys, don’t give in. The LL are out of order. We found 1km away something £540 less expensive. Don’t give in. This is out of order.
Shame to hear that. In most instances aren’t purposefully trying to make your life difficult, landlords are just reacting to the continuous interest rate changes. The government know that interest rate rises also increases rents, and that’s what they are trying to do in order to reduce inflation. If you aren’t happy I’d recommend blaming the government or economy over landlords - we’re just trying to survive and make and income like you are in most cases
I live in Australia, and property here is extremely expensive. So, contrary to the US and UK, you cannot buy a detached or attached property for 50k, and something like this in Australia would be 400-500k.
Right now would be a good time to get out of the buy to let if you are borrowing to buy.. Possibly try later after the large drop incoming.Interest levels are going higher in the future
Kindred spirits my friend; also now at the stage where I'm looking towards capital growth over income, and have also experienced a fair amount of pain when it comes to flat roofs 😂
I still don’t believe it is the ‘bubble’ people expect it to be. Good chance demand will ease and prices will drop, but things are so different to previous recessions and bubbles
@@JustinWilkins Prices are dropping because there's an over saturation of buy to let properties on the market. It's a good thing because it will finally give people the chance to buy their first homes.
My mortgage on my last BTL property has gone up from £183 to £410 in the last few years plus 55 agents fee plus 20 a month insurance That’s almost £500 a month Plus general repairs plus gas certificate etc And your very close to the £595 a month rent So house went up for sale and is sold and currently going through smoothly
This video has been a lesson. Never realised BTL mortgages were so low compared to standard mortgages. If you don't mind me asking where is your property?
@@chair56789BTL mortgages aren’t so low they are on an interest only payment meaning the debt never goes down the actual interest rate is higher than a normal mortgage
Did interest rate rises play a part in your decision? At the start your 80k mortgage was costing you £154/mth, by the time your 2 yr deal was up and you had to refinance that 80k mortgage could well be costing you £440/mth. "Assuming" you wouldn't be able to increase your rents and taking into account agent and insurance costs that would leave you with a profit of £51/mth or £612/yr. As you say being a landlord isn't as easy, passive and stress fee as some make out. Did you not just think I could put my £13k initial equity in a savings account at 4.5% and get £49/mth or £585/yr and get a genuinely passive income and I'd only be losing out on £2/mth and saving myself a load of aggrevation?
I will never sell any of my houses,, and if the market price drops then I will be after some bargains,, there are lots of tenants out there wanting to rent..
Hi Justin, you said the house wasn’t mortgageable but you paid stamp duty…this could actually be reclaimed if the house was uninhabitable, let me know if you want more info, good video.
My first buy to let was in 1993. There were no buy to let mortgages the market for buy to,let had t emerged, as a single parent bringing up my daughter on my own instead of getting a bigger house because I worked hard to pay the mortgage off. I bought another property and rented it out. Since then I’ve bought 5 houses/flats at various times did the, up and rented them out. Now I only have 2 apartments I’m letting.
Remember the times in the late 80's and early 90's. It would be interesting to see how they all do with a 6 or 7% plus interest rates. It was around 13% interest in 1990. Remember not being able to find renters either. Sell now and buy later at discounts.
Can imagine those times were tough! One of the worst ones in multiple decades. I was brought up hearing those stories - I’m fully prepped and ready to see tougher times. Considering the insane shortage of rental houses, I don’t think there will be a shortage of renters. And if houses are bought right, and locked in on long term fixed rates, there shouldn’t be a need to sell and try to time the market
Interesting point of view. I don’t think it’s the primary cause. Certain parts of the uk definitely have a higher density of investment properties, but I’d imagine the large amounts of money printing and inflation over the last few decades can’t have helped either 🤷
Council or private, you're still renting. What's the difference? BTL relieves pressure on council backlog and gives the tenant a choice. What's the problem?
@@knowitall3503buy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
@@JustinWilkinsbuy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
Hi, young man. I bought my first property over 40 years ago. I strongly advise you to look at small commercial property. Much more tax efficient than residential. It is easier to deal with tenants . Growth is huge. Good luck
@ChrisLee-yr7tz Surly that makes it a good time to buy? It's all about the return on investment, don't you agree. Commercial loans qualify as tax deductible,increasing the profits .
@joeclifford4953 Yep. I think yield and long-term capital growth are just as important. It's no use earning a high yield if the capital value is declining. They both have to be taken together. At the end of the day you have to PV all cash flows to work out the value of something. I'm not saying commercial is definitely bad, just questioning both sides of the coin. The piece I can't see is what's the driver for a reversal in the trend on commercial. The high street is dying so I can't see recovery there. I'll ask you this...what gross yield are you targeting on small commercial? What level could you fund it at?
@@ChrisLee-yr7tz Good points well presented. I don't own anything on the high street. Small businesses are queued up to rent light commercial units from me. Motor trade premises obtain premiums. Small warehouse units. And so on I agree with avoiding the high street. They have to go somewhere. Great interesting discussion 👍
Another problem is in a couple of years your rented houses will need to reach a C rating EPC, in some case this isnt going to happen without spending thousands especially if you have an end terrace or the property has a room in the roof, I am a domestic and commercial surveyor, in two days the office has had enquires from two housing associations totalling 950 homes, they are panicking , so should you, some properties would need over 20k spending on them which I have recently visited, wall insulation, room in roof insulation, double glazed throughout to achieve a C rating, tough times for landlords.
I think the EPC of C will be changed to D. It would be nigh on impossible for the majority of our old housing stock to reach that goal. If it is going to be C then renters will be living in tents as few homes will be available to rent.
I’ve just bought a 1930s house rated F, it cost me 1200 to get it down to a C. New central etc combi, 400 m loft insulation, got the house for a snip, it’s rented out now for 800, the new rules are just occupational hazards, it helps being a plumber but it’s not rocket science is it,
Very profitable? What a disaster! Two years of faff, money tied up, exposure to all the risk…. For £10k. Sack it all off, move out of that crumby area, buy Bitcoin and don’t bet your financial future on housing - it’s got 1-2 decades of sideways or decline ahead!
Not sure I used the words very profitable. Literally made this video to show how you can make profit, but it’s also a tough game! Il 100% stay in property over bitcoin. No chance of 1-2 decades of sideways or decline, history and data shows otherwise.
Damp course holes do very little /the damp will come back. The issue here grounds levels in relation to the floor and lime plaster to allow the property to breathe so water evaporates and lime pointing and making sure all water goods work well.
there's a damp specialist somewhere on youtube always repeating damp proofing is effectively a scam and the solution is always curing the underlaying problem which often is some sort of lack of ventilation or water ingress through underfloor vents or incorrectly done rendering blocking the moisture inside the wall etc.
can any of you guys make money solely in property and cut off the "education" part , you loose a lot of credibility by doing that , it immediately associate you to all the youtube scams around property
thats the wrong mindset to have. Education is sold all over the world, whether its university education sold at £30,000 per year (!!!), or someone charging £200 for an online course on cooking. The problem isn't the education in property, its often the people that sell it / or the way they sell it - I believe I take an honest and open approach to saying that property is hard, but very rewarding.
@@JustinWilkins i agree but i don't see elon musk selling courses on how to make cars. you might as well be the only honest one , but you are , at least to me , automatically associated to the likes of samuel leeds etc etc
I wish I was as successful or as smart as Elon musk 😂 Shame to be associated like that, I think what I offer is genuine and priced completely different to others to help beginners, but I take on board all feedback.
Just off the phone today again from LNPG Justin, they are great. So far this year alone since becoming a member I have saved thousands on a kitchen and today I saved over £100 on a Gas Hob which will be installed as well as the old appliance taken away.
What a great attitude you have. Bad tenants and surprise costs can dampen your spirit over time. Selling all my properties it’s definitely not a passive business. Good luck to you.
Thanks! Appreciate that a lot. Property definitely comes with a lot of ups and downs 😅 shame to hear you’re selling all your properties, but I can understand it’s the right decision for some people due to section 24 tax changes, profitability, and because of interest rates!
Houses should be affordable for working people to live in, not for greedy bastards to make a killing out of. You lot and the dinghy boys are the reason we are in this problem of rip off property prices 👹 Roll on the property price crash.
Expensive lessons, but ones that will last a lifetime! Understanding the cause of damp is crucial to how you solve the issue and how much it will cost to do so. My advice would be to take a damp meter (~£10) round on viewings, that way you know if you need to factor in work to remedy it.
Better to use a renovating, lime based plaster and contract matt paint pal so it's breathable. Damp is mainly condensation trapped behind the gypsum based plaster. 👍
My two-penn'orth: this business (letting) is, and always was, about marginal costs. You've done okay in the end on this one but you're always going to be at a disadvantage to a landlord who does most of the refurb work himself and who then manages the property themselves - you've had too many people taking a chunk of the action and, paradoxically, you don't contribute much to the project economically because you don't seem to have any relevant skills. Right now the hope of buying cheap and selling dear simply won't be a winning business strategy.
Very good and interesting points. I’d agree with what you’re saying overall, however I would also add the landlord that is doing the refurb works is at a disadvantage to me because I’m able to move quicker, purchase more properties and not get involved in each and every project. I did previously do minor works to my first buy-to-let, but found it a smarter decision to take myself out of that part - although this does of course cause risks and issues like I faced on the property in this video! There’s no right or wrong way I my opinion, both have advantages and disadvantages
@JustinWilkins my issue with it is that you need a high deposit and its a lot of risk involved. compared to blue chips aristocrats that pay 5% per year and money can be pulled out instantly. This is why i do not like BTL. Maybe if you didnt need a 25% deposit, id give it a whirl. The average earner cannot afford to put 25% on a property unless they want to waste time doing so as the other means are more efficient.
@@JustinWilkins I kept houses. The ones I sold were blocks of flats. 2 x 4 flats1 x 3 flats You get one bad tenant in there, it ruins it for everyone. It was like having 11 kids at Tims. Stressful
I'm new to your channel and found this video insightful and honest... I wish you well on your journey which area of UK do you think there is capital growth potential?
Thanks Richard! Glad it was useful. There lots of great areas coming up in value - mainly within the north of the uk. Parts of Yorkshire, North West and North East. I’ve mainly invested into the north west, but my first few purchases were within slightly higher risk areas, as I bought cheaper properties with high ROI potential. Whilst I’ve been very lucky with these, and bought right, my goal is to purchase in slightly better quality parts of these areas going forward 🤝
Hi Justin, I came across your channel today, and immediately recognised the office building, given that I also work there. I'd love to grab a coffee with you sometime, let me know if that's cool. I've sent you my contact details via your website.
I agree it’s never 100% true ownership whilst you have a mortgage, but given inflation and devaluing of money over long spans of time, it makes sense to leverage the banks money!
@@JustinWilkins it is yours with a mortgage, but it’s a lot of debt to take on. I would not borrow to buy stocks either. Those markets also cyclical. During a pull back it makes sense to rent a few years waiting for the increase following a flip.
Interesting video Justin, think you spent too much on refurb and agent fees. I’ve been buying properties and renting them out as well as managing other peoples property. I’ve done this for 12 years now and became financially free. Good luck on your journey
Would agree with you on both points actually. Refurb was a really big learning curve, but the managing agent was more of an active choice as I love to be completely hands off! There’s definitely better value agents out there though. Great work doing this over 12 years! Really showing that it’s worthwhile in the long term 👏 thanks for watching
Yes, I would have adviced to do the reverb himself, to learn by doing and not just pay a builder, also I think the original house just looked like it needed a good clean, and some paint.. I would not reverb a property like that, if he spend £2000 into perking it up, the house would still sell for £82K which would have given him a easy £30k.... but this is just my uneducated quess..
All round learning experience but you made a lot of mistakes 1 brought in the wrong area 2 buy a new build or something other than a hundred year old terrace house 3 spent far to much on trades and could of rolled your sleeves up and done some work yourself But hats of to you for trying
Appreciate your thoughts, a lot of lessons learnt. But not the ones you stated. I think a different approach and mindset is required to what you stated above. Firstly a full refurb for £17-18k is hardly ‘far too much’, in fact that’s actually very cheap looking back. I’ve rolled my sleeves up on projects before, and it’s a complete waste of time. I earn far more from working in my business day to day, than I do saving money on trades. Secondly, if the numbers permit, and the project is good enough, then the investor shouldn’t have to get involved. It’s the only way to grow quickly and scale, rather than doing 1 house per year. The only point I agree on is that older properties are far harder to maintain than a newer property. But new builds can be terribly built from what I’ve seen.
Shame to hear it. On the other side, would you agree that there is also a huge amount of jobs and economic benefits created from the tax paid, the construction required, and good homes created instead of left empty?
@JustinWilkins I've been following you from nearly the start (I think), always like your videos but I think it's only fair to cover tax implications, so many RUclips property people don't and the tax is a big part of it, we feel the pain every year 😅
@@JustinWilkins No. You've missed the point of my comment. I wasn't accusing you of not paying tax. I was simply expecting you to have mentioned it in your very informative video. I.e. you mention the £575 rent but unless you're register as a LTD company income tax is due on the full amount; gross as opposed to net. Also the tax on the capital gain is worth a mention especially as you express an interest in capital growth. And, since our lovely chancellor has reduced the tax free allowances which are diminishing over the next couple of years.
Obviously not when landlords are selling in droves.
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Is that Lancing/Broolands industrial estate, the weird red building looks familiar? On a practical note, u said ur profit was 23 grand over 2 years, I think u should take off about 8 grand from that profit as that is what u would get for roughly 80 thousand pounds at 5% interest during the last 2 years. A solid 15 grand...just too many people don't cost inflation or interest into their equations!
Inflation is exactly the reason I have made more money! But do I need to deduct it from my profit, personally I don’t think so. Inflation or not that money still landed in my bank account 🙂 But overall I understand what you’re trying to say and appreciate it 🤝
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@@JustinWilkins "Inflation is the reason I have made more money", u made more pounds, u did not make more money due to inflation!
@@JustinWilkins yes I understand that but it’s very misleading to say about profits when they are not as tax still payable . It almost comes across as tax avoidance advice.
Lots! You are best to speak with a mortgage broker to get access to them. Not many 'high street lenders' are good when it comes to buy-to-let mortgage products.
Thanks for your videos mate,I have learned in recent months is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses. The market is very unstable and you can not tell if it's going bearish or bullish. While myself and others are trading without fear of making a loss others are being patient for the price to skyrocket, I would say trading has been going smoothly for me i started with 3 BTC and i have accumulated over 11 BTC in just one month with the Trading strategy given to me by expert trader Chloe Miller
'effin' 'ell - this guy is the master of the everlasting sentence !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Hi justin. Great video, very informative. We have a renovated property in the north, great location in Burnley, fantastic tenants paying a good rent. We are looking to sell ...if ever you think you might be interested in chatting about it, we would be only too happy to talk.
@JustinWilkins many thanks..I have just subscribed to your email list and have sent an email to you. I failed to mention its a 2 double bed mid terrace. Looking forward to hearing from you.
I think you have made a mistake here. Good property, all work done, yes you spent more than maybe you should but you had a sound property. I think we all over spend in the end but this property was a sound investment.
Thought about this one a lot James, and I see both sides of it. On one side I think you’re right, on the other side I know the projects I’m trying to purchase. Hard one, as I do think that will be a great long term rental now - after I’ve done everything 😂
@@JustinWilkins Single BTLs isn't a great strategy unless you have allot of them, the cash flow is bare minimum & you're relying on a single tenant who could lose their job tomorrow, which makes it risky imo. My preference is to buy larger HMOs, or concentrate on much bigger buildings that can be converted in to multi let blocks. It's more work but the reward will also be that much higher & you spread your risk.
@@marklewis3023always thought the same as well. The only issue for most though is to buy a HMO you normally have to have experience with BTLs to get a HMO mortgage
@myforexreviews my first BTL was a HMO & yes you have to get a HMO mortgage, but that's not a massive issue. Article 4 planning & licensing is the bigger issue, you need to study the rules & regs to make sure you're compliant & then either manage it yourself, or find a decent agent. Once you've done one & understand the requirements, then it's easy to duplicate.
But how much has the house you’ve bought gone up in the same time Plus how much interest did you pay on your mortgage you had on the property People forget to add that up Many people purchase a house for let’s say £100 k They pay the mortgage on it for 20 years And then sell it for £200 k And think and tell everyone they made 100k But if they added all the mortgage payments up The house actually cost them 220 k So they actually lost 20 k
I started my journey in slightly riskier areas where ROI and cashflow was higher, and although capital growth has been good to me. I’d like to focus more attention onto the best areas possible within the north west and Yorkshire 😃
@@JustinWilkins because more often than not it is cheaper to buy a house with a mortgage than what it is to rent the same property. A lot of landlords let out properties as a house share. Is that because you make more money charging 3 people £500 a month rent for one room rather than charging a couple to rent out the whole property for £800 a month? RIP off in my opinion.
The system (Section 24), plus huge interest hikes. is successfully killing off the high leverage interest only Landlords, freeing up purchases for huge housing corps, and cash rich minimal leveraged Landlords. Downing street is protecting and norishing their own.
I could probably find this somewhere, but how old are you buddy? I'm currently on 3 deals this year, trying to get it to 7. Thanks for all the gems in these videos.
never sell Justin, I had my first buy to let with the same issues costing a fortune but I've kept it as the educator. I'd never sell any as it creates a tax bill. I simply use majority of profits this way, 60% into s@s isa, 10% maintenance, 20% aside for tax bill and the remaining 10% filter across into work place pension. creating a good diversified investment allocation, creating an ultimate accelerated pension generator. Its all about tax efficiency and diversified.
very late to this game - BTL or investing in properties is over. To put in simple terms, this is a game that work only when interest rate are very low as the expected rental income will be able to cover all the expenses and make some profit. With the current mortgage rates and tax legislation which has removed the interest paid as deductible, you will never be able to make a profit on any properties (unless you pay 50/60% of the property with your own funds).
Forgive me if I've missed something but if you have put down 25% and then refinanced why are you talking about your investors ? Is the 25% not your seed money ? Where do these investors come into the picture ?
I was definitely in two minds before selling - but ultimately I think the new opportunities I am going after will offer better returns in the long run!
@@JustinWilkins yes I have just spent over £100,000 on the foundation of this new build. So I think that something that is bringing in some profit just needs to be replicated. A friends of mine has I don’t even know how many of those and no longer needs to work.
I don’t agree with the go for yield or growth approach, it’s total return you should seek. In vanilla BTL going for yield results in multiple properties in cheap areas that become long term a burden to manage. Going for growth (or perceived growth) results in investment following fads like property in “boom” areas or “Nottingham”.
Good video, I've been selling also, have you looked into HMO investments, better cash flow and capital appreciation, probably no bridging loan tho due to the time frame and cost over 8 months
🤔 I really don’t understand the point of taking photos with all the furniture 🪑 upside down all those chair can be easily move out of the way and that sofa can be kept on the floor with a push … all the drama 🎭 for nothing End of the day house refurbishment mean totally different work not to be confused with house cleaning 🧹
Haha what are you on about. The house was bought in that condition, with the furniture, with the broken windows, with the damp and missing kitchen. It wasn't for drama - it was simply showing the property in the condition it was bought.
Don't damp proof a traditional property like this damp will just return due to it having nowhere to go, lime plaster the walls, remove any cement repointing for lime and add windows with ventilation slots. Resin injection ruins old houses like this.
Hi Justin thanks for another Quality video!! I am quite new to this but learning so much so fast. I wanted to find out what does that £12-£13k money left in consist of in this deal ??
Hi Justin, I’ve a number of Victorian terraced properties. If I was starting again I’d have invested in newer properties (built after 1990) because they are much less prone to damp, since they have cavity walls and a solid concrete ground floor with a proper damp proof membrane. Will be interested to see what your next investment looks like. Cheers David
The thing with newer properties is that they're quite a bit smaller & typically further out of the town/city centre. As long as you're on top of the damp proofing and also look at insulation, then they actually work really well.
One of the things I'm doing with my properties is insulated plasterboard both front & back, as the actual side walls are insulated well enough. This fairly simple solution makes a massive difference and has corrected the (condensation) damp issues in the properties where I have done it. Another option is insulated lining paper, I did that in attic bedrooms & it makes a massive difference & goes from a building task into a relatively simple decorating task. The heat saving is really impressive as well, especially with the current state of bills!
@@marklewis3023 Thanks for the insight. It does sound like a good idea. I’ve also preempted internal mould on cold outside walls by using a kitchen & bathroom paint but throughout the whole house. It’s more expensive than a standard emulsion but contains a mould inhibitor so the house is less likely to have mould growth.
I've got a loft PIV unit in my older properties, since doing so 2 years ago, I've not had problems with condensation in any of them
Hope you have some spare cash to bring your old damp prone victorian terraces up to the new EPC standards which is due soon.
@stevenhull5025 deadline changed, was 2025 and now 2028, so not soon.
Thanks for being so open and transparent with figures and all details to help others.
Thanks for watching 🙌
Yeah credit as most RUclipsrs deliberately leave out the reality
@@bigbawsdogg 🤝 here to share the good and bad!
@@JustinWilkins nice timing; the top is in
Thank you, for making this video. This is very helpful in understanding buy to let. I have seen many video but this has been the most honest and realistic of all videos have seen yet on you tube.
Going to check your website now.
Lack of social housing & landlords buying multiple properties are helping to destroy the fabric of society & communities.
Interested to hear you explain how?
The government isn’t providing rented accommodation so who do you think will? 😂
Great video. I’m 25 years in this business and you have the right understanding. Property is long term, not easy and not passive. However, I think your wrong about selling. Occasionally it’s the right thing to do… boost cash flow, opportunity, drop a bad egg etc.
Real house prices are the same in Q2 2023 as they were in Q2 2003. And since the peak in 2007 to today house values have declined by £70k. The Nationwide Data shows this clearly and what ‘property investors’ do not realise is that they have essentially been carrying out ‘inflation trades’ assisted by low interest rates inflating away debt. Profits are exaggerated if the value of the money between two intervals is not taken into account.
How to check property owners detail online?
With the current 6% BTL mortgages, yield would be only 3%. Even some current accounts now paying more than that. BTL is dead for sure.
Far from dead
Great video Justin
Interesting that the you tube algorithm only show me your videos now though this information would of been more useful months ago :) well explained
Just wondering though in your video you said you couldn't buy many properties as you would of liked so is it not possible to use private investors to fill the gap with purchase refurbish refinance if its not can you explain what the issue is with this as i see many property entrepreneurs say oh yes get finance from investors ?
but you have said you would rather use cash in the bank so maybe you could explain if their is some risk that some people are not telling people ?
So do you have any videos on how you find private investors loans and what the pitfalls are that many people don't realize can happen ? not many people cover this ?
thank you :)
My LL put up every year the rent. We live in London. Yesterday her agency told us she wants a rent increase of £230 per month. £1.900 for a month for 27sqm. Guys, don’t give in. The LL are out of order. We found 1km away something £540 less expensive.
Don’t give in. This is out of order.
Shame to hear that. In most instances aren’t purposefully trying to make your life difficult, landlords are just reacting to the continuous interest rate changes. The government know that interest rate rises also increases rents, and that’s what they are trying to do in order to reduce inflation. If you aren’t happy I’d recommend blaming the government or economy over landlords - we’re just trying to survive and make and income like you are in most cases
I live in Australia, and property here is extremely expensive. So, contrary to the US and UK, you cannot buy a detached or attached property for 50k, and something like this in Australia would be 400-500k.
Interesting - always depends on area. It would be £400-£500k in some parts of the UK too.
Nothing wrong with a quick gain it certainly doesn't deviate from the 'long game' if re-invest in better assets.
100% onto the next projects 😃
Still watching your films Justin. Thank you. Maybe we should we talk about a project?
Glad to hear it, hope you’re well Guy! Would be good to catch up
Right now would be a good time to get out of the buy to let if you are borrowing to buy..
Possibly try later after the large drop incoming.Interest levels are going higher in the future
Kindred spirits my friend; also now at the stage where I'm looking towards capital growth over income, and have also experienced a fair amount of pain when it comes to flat roofs 😂
I have a property that I need a full refurbishment for, can you please advise a reasonably priced good builder for me?
Nasdaq index etf produces 17% annually for the last 10 years. Sp500 12%. Money is liquid sipp and is tax-free gains . You decide 🤔
You said in title you are selling your buy to letS - so selling multiple properties. And interest rates are presumably the issue when you refinance?
So after you finish the refurb, you don’t get a snagging survey done by someone else? To make sure things are done right?
Good question - yes I do now either review them myself or with the help of a friend in the industry. But at the time of completing this one I didn’t
These prices are crazy,how is that all you pay for kitchen and bathroom, unbelievable
Where is this "area where there is more capital growth"?
Too many people got into the buy to let market. The bubble was going to burst eventually as the market got too saturated.
I still don’t believe it is the ‘bubble’ people expect it to be. Good chance demand will ease and prices will drop, but things are so different to previous recessions and bubbles
@@JustinWilkins Prices are dropping because there's an over saturation of buy to let properties on the market. It's a good thing because it will finally give people the chance to buy their first homes.
Great little vid Justin! considering doing brr and this was defo worth a watch 👌
Thanks Matthew, glad it was worth the watch 🤝
Need any EPC's in cheshire Crewe etc or STOKE-ON-TRENT. I can help.
😂😂😂😂
👍👍
My mortgage on my last BTL property has gone up from £183 to £410 in the last few years plus 55 agents fee plus 20 a month insurance
That’s almost £500 a month
Plus general repairs plus gas certificate etc
And your very close to the £595 a month rent
So house went up for sale and is sold and currently going through smoothly
This video has been a lesson. Never realised BTL mortgages were so low compared to standard mortgages. If you don't mind me asking where is your property?
@@chair56789BTL mortgages aren’t so low they are on an interest only payment meaning the debt never goes down the actual interest rate is higher than a normal mortgage
How in the Jesus was it so cheap? Is it normal for buy to let's to be so cheap?
@@scittyboom1989I see
@@chair56789 Sunderland
Sold for £130k for a tiny 2 bed semi
Sunday landlords being eliminated by interest rates. Actually good move on his part as prices of houses will go lower.
Just increase the rent.
@@independenciafinanceirauk4152 people who don’t own the place outright have no reason to let it to others.
@@kristinesharp6286exactly, we’ll said.
Not in London.
haha, any suggestion for people who took his lesson and brought a house last year?
Did interest rate rises play a part in your decision? At the start your 80k mortgage was costing you £154/mth, by the time your 2 yr deal was up and you had to refinance that 80k mortgage could well be costing you £440/mth. "Assuming" you wouldn't be able to increase your rents and taking into account agent and insurance costs that would leave you with a profit of £51/mth or £612/yr. As you say being a landlord isn't as easy, passive and stress fee as some make out. Did you not just think I could put my £13k initial equity in a savings account at 4.5% and get £49/mth or £585/yr and get a genuinely passive income and I'd only be losing out on £2/mth and saving myself a load of aggrevation?
Just catching up with this now. Totally understandable. Great video - glad to see things are going well for you.
Thanks mate! Always appreciate you watching and likewise 🤙
Roll on the property crash 😁
Nice to see you here 😀. Looking forward to your upcoming car flipping videos
You seem like the most genuine and transparent property youtuber! Thank you so much for your honest and humble video
Appreciate that a lot ! 🙂🤝
Thanks for watching
I will never sell any of my houses,, and if the market price drops then I will be after some bargains,, there are lots of tenants out there wanting to rent..
Hi Justin, you said the house wasn’t mortgageable but you paid stamp duty…this could actually be reclaimed if the house was uninhabitable, let me know if you want more info, good video.
You got an absolute bargain with the refurb on that property, I don't think you'd be able to hit those figures in the current market.
Greedy bastards!!
My first buy to let was in 1993. There were no buy to let mortgages the market for buy to,let had t emerged, as a single parent bringing up my daughter on my own instead of getting a bigger house because I worked hard to pay the mortgage off. I bought another property and rented it out. Since then I’ve bought 5 houses/flats at various times did the, up and rented them out. Now I only have 2 apartments I’m letting.
👏👏👏
@@JustinWilkins thank you !
Remember the times in the late 80's and early 90's. It would be interesting to see how they all do with a 6 or 7% plus interest rates. It was around 13% interest in 1990. Remember not being able to find renters either. Sell now and buy later at discounts.
Can imagine those times were tough! One of the worst ones in multiple decades. I was brought up hearing those stories - I’m fully prepped and ready to see tougher times. Considering the insane shortage of rental houses, I don’t think there will be a shortage of renters. And if houses are bought right, and locked in on long term fixed rates, there shouldn’t be a need to sell and try to time the market
It’s worse now than it was then the cost is higher when you look at the price of mortgages now vs then
BTL should be banned. BTL is a primary cause of HPI and why so many people are in pain today.
Interesting point of view. I don’t think it’s the primary cause. Certain parts of the uk definitely have a higher density of investment properties, but I’d imagine the large amounts of money printing and inflation over the last few decades can’t have helped either 🤷
Council or private, you're still renting. What's the difference? BTL relieves pressure on council backlog and gives the tenant a choice. What's the problem?
@@knowitall3503buy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
@@JustinWilkinsbuy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
Hi, young man.
I bought my first property over 40 years ago.
I strongly advise you to look at small commercial property.
Much more tax efficient than residential.
It is easier to deal with tenants .
Growth is huge.
Good luck
Thanks Joe, interesting advice. Appreciate you taking the time to share - il explore it further!
I thought commercial valuations have been taking a battering?
@ChrisLee-yr7tz
Surly that makes it a good time to buy?
It's all about the return on investment, don't you agree.
Commercial loans qualify as tax deductible,increasing the profits .
@joeclifford4953 Yep. I think yield and long-term capital growth are just as important. It's no use earning a high yield if the capital value is declining.
They both have to be taken together.
At the end of the day you have to PV all cash flows to work out the value of something.
I'm not saying commercial is definitely bad, just questioning both sides of the coin. The piece I can't see is what's the driver for a reversal in the trend on commercial. The high street is dying so I can't see recovery there.
I'll ask you this...what gross yield are you targeting on small commercial?
What level could you fund it at?
@@ChrisLee-yr7tz Good points well presented.
I don't own anything on the high street.
Small businesses are queued up to rent light commercial units from me.
Motor trade premises obtain premiums. Small warehouse units.
And so on
I agree with avoiding the high street.
They have to go somewhere.
Great interesting discussion 👍
Got out the game a few years ago and took early retirement. Gets harder every year
100% has got harder every year for a while now, but I do think this will bring great opportunity in the near future
I’d sell the lot while you have a small chance 😅
😂😂
Another problem is in a couple of years your rented houses will need to reach a C rating EPC, in some case this isnt going to happen without spending thousands especially if you have an end terrace or the property has a room in the roof, I am a domestic and commercial surveyor, in two days the office has had enquires from two housing associations totalling 950 homes, they are panicking , so should you, some properties would need over 20k spending on them which I have recently visited, wall insulation, room in roof insulation, double glazed throughout to achieve a C rating, tough times for landlords.
I think the EPC of C will be changed to D. It would be nigh on impossible for the majority of our old housing stock to reach that goal. If it is going to be C then renters will be living in tents as few homes will be available to rent.
I’ve just bought a 1930s house rated F, it cost me 1200 to get it down to a C. New central etc combi, 400 m loft insulation, got the house for a snip, it’s rented out now for 800, the new rules are just occupational hazards, it helps being a plumber but it’s not rocket science is it,
Very profitable? What a disaster!
Two years of faff, money tied up, exposure to all the risk…. For £10k.
Sack it all off, move out of that crumby area, buy Bitcoin and don’t bet your financial future on housing - it’s got 1-2 decades of sideways or decline ahead!
Not sure I used the words very profitable. Literally made this video to show how you can make profit, but it’s also a tough game! Il 100% stay in property over bitcoin. No chance of 1-2 decades of sideways or decline, history and data shows otherwise.
Damp course holes do very little /the damp will come back. The issue here grounds levels in relation to the floor and lime plaster to allow the property to breathe so water evaporates and lime pointing and making sure all water goods work well.
there's a damp specialist somewhere on youtube always repeating damp proofing is effectively a scam and the solution is always curing the underlaying problem which often is some sort of lack of ventilation or water ingress through underfloor vents or incorrectly done rendering blocking the moisture inside the wall etc.
Don't buy a house with solid 9" walls. Cavity walls were introduced in the 1920/30s for a reason.
Justin, please do a video on the areas you are focussing on. thank you
Another clear and concise video from the big dog Justin, keep up the great work and content!!
Thanks Lizzy & Ben 😃🏆
Big views only from now on!
can any of you guys make money solely in property and cut off the "education" part , you loose a lot of credibility by doing that , it immediately associate you to all the youtube scams around property
thats the wrong mindset to have. Education is sold all over the world, whether its university education sold at £30,000 per year (!!!), or someone charging £200 for an online course on cooking. The problem isn't the education in property, its often the people that sell it / or the way they sell it - I believe I take an honest and open approach to saying that property is hard, but very rewarding.
@@JustinWilkins i agree but i don't see elon musk selling courses on how to make cars. you might as well be the only honest one , but you are , at least to me , automatically associated to the likes of samuel leeds etc etc
I wish I was as successful or as smart as Elon musk 😂 Shame to be associated like that, I think what I offer is genuine and priced completely different to others to help beginners, but I take on board all feedback.
Just off the phone today again from LNPG Justin, they are great. So far this year alone since becoming a member I have saved thousands on a kitchen and today I saved over £100 on a Gas Hob which will be installed as well as the old appliance taken away.
Great result Joe 🙌🙌 pleased to hear that and thanks for watching!
What a great attitude you have. Bad tenants and surprise costs can dampen your spirit over time. Selling all my properties it’s definitely not a passive business. Good luck to you.
Thanks! Appreciate that a lot. Property definitely comes with a lot of ups and downs 😅 shame to hear you’re selling all your properties, but I can understand it’s the right decision for some people due to section 24 tax changes, profitability, and because of interest rates!
Houses should be affordable for working people to live in, not for greedy bastards to make a killing out of. You lot and the dinghy boys are the reason we are in this problem of rip off property prices 👹
Roll on the property price crash.
To make any capital gains in the next couple of years you will need some insane deals!
Tough couple of years ahead, but it’ll teach people to be better investors!
Thank you sharing your experiences. Do you have a rough guide on how much you spend on each property e.g. by sqft or sqm?
Expensive lessons, but ones that will last a lifetime! Understanding the cause of damp is crucial to how you solve the issue and how much it will cost to do so. My advice would be to take a damp meter (~£10) round on viewings, that way you know if you need to factor in work to remedy it.
100%, damp meter was one of the best purchases I made, just took me too long to buy it 😂 thanks Richard!
Better to use a renovating, lime based plaster and contract matt paint pal so it's breathable.
Damp is mainly condensation trapped behind the gypsum based plaster. 👍
@@pasto312agree completely
My two-penn'orth: this business (letting) is, and always was, about marginal costs. You've done okay in the end on this one but you're always going to be at a disadvantage to a landlord who does most of the refurb work himself and who then manages the property themselves - you've had too many people taking a chunk of the action and, paradoxically, you don't contribute much to the project economically because you don't seem to have any relevant skills. Right now the hope of buying cheap and selling dear simply won't be a winning business strategy.
Very good and interesting points. I’d agree with what you’re saying overall, however I would also add the landlord that is doing the refurb works is at a disadvantage to me because I’m able to move quicker, purchase more properties and not get involved in each and every project. I did previously do minor works to my first buy-to-let, but found it a smarter decision to take myself out of that part - although this does of course cause risks and issues like I faced on the property in this video! There’s no right or wrong way I my opinion, both have advantages and disadvantages
@@JustinWilkins Hmmn. Thing is, at our level of investment it's really not about "the deal".
Crushed this video bro! You’re smashing it 🙌🏼
Thanks bro 😎 !!
i thought getting a BTL on a second property and the costs are not worth it.
Depends on a lot of factors, but with most of my properties it’s been more than worth it!
@JustinWilkins my issue with it is that you need a high deposit and its a lot of risk involved. compared to blue chips aristocrats that pay 5% per year and money can be pulled out instantly. This is why i do not like BTL. Maybe if you didnt need a 25% deposit, id give it a whirl. The average earner cannot afford to put 25% on a property unless they want to waste time doing so as the other means are more efficient.
I sold 11 of my btl’s. Kept 4.
The relief is beautiful
One love
Out of interest, what attributes did the 4 properties you keep have over the others? Would be interesting to know
why do you feel relief? :)
@@JustinWilkins I kept houses. The ones I sold were blocks of flats.
2 x 4 flats1 x 3 flats
You get one bad tenant in there, it ruins it for everyone.
It was like having 11 kids at Tims. Stressful
@@esp643 Stressful being a landlord. Particularly blocks of flats
I'm new to your channel and found this video insightful and honest... I wish you well on your journey which area of UK do you think there is capital growth potential?
Thanks Richard! Glad it was useful.
There lots of great areas coming up in value - mainly within the north of the uk. Parts of Yorkshire, North West and North East. I’ve mainly invested into the north west, but my first few purchases were within slightly higher risk areas, as I bought cheaper properties with high ROI potential. Whilst I’ve been very lucky with these, and bought right, my goal is to purchase in slightly better quality parts of these areas going forward 🤝
Hi Justin, I came across your channel today, and immediately recognised the office building, given that I also work there. I'd love to grab a coffee with you sometime, let me know if that's cool. I've sent you my contact details via your website.
When it’s not a property you own outright you are playing with other people’s (the bank”s) money. It’s not a long term thing.
I agree it’s never 100% true ownership whilst you have a mortgage, but given inflation and devaluing of money over long spans of time, it makes sense to leverage the banks money!
@@JustinWilkins it is yours with a mortgage, but it’s a lot of debt to take on. I would not borrow to buy stocks either. Those markets also cyclical. During a pull back it makes sense to rent a few years waiting for the increase following a flip.
SELL THEM ALL. Did I miss it on your vid , I didnt see you work out the tax on the 23k profit.
Haha I will never sell them all! I did not work out the tax on the video
In that case you’re not being transparent enough Justin.
Interesting video Justin, think you spent too much on refurb and agent fees.
I’ve been buying properties and renting them out as well as managing other peoples property.
I’ve done this for 12 years now and became financially free.
Good luck on your journey
Would agree with you on both points actually. Refurb was a really big learning curve, but the managing agent was more of an active choice as I love to be completely hands off! There’s definitely better value agents out there though.
Great work doing this over 12 years! Really showing that it’s worthwhile in the long term 👏 thanks for watching
😢Q
Yes, I would have adviced to do the reverb himself, to learn by doing and not just pay a builder, also I think the original house just looked like it needed a good clean, and some paint.. I would not reverb a property like that, if he spend £2000 into perking it up, the house would still sell for £82K which would have given him a easy £30k.... but this is just my uneducated quess..
All round learning experience but you made a lot of mistakes 1 brought in the wrong area 2 buy a new build or something other than a hundred year old terrace house 3 spent far to much on trades and could of rolled your sleeves up and done some work yourself
But hats of to you for trying
Appreciate your thoughts, a lot of lessons learnt. But not the ones you stated.
I think a different approach and mindset is required to what you stated above.
Firstly a full refurb for £17-18k is hardly ‘far too much’, in fact that’s actually very cheap looking back. I’ve rolled my sleeves up on projects before, and it’s a complete waste of time. I earn far more from working in my business day to day, than I do saving money on trades.
Secondly, if the numbers permit, and the project is good enough, then the investor shouldn’t have to get involved. It’s the only way to grow quickly and scale, rather than doing 1 house per year.
The only point I agree on is that older properties are far harder to maintain than a newer property. But new builds can be terribly built from what I’ve seen.
You dont instal damp proof membranes in old single walls houses.
Don't like btl ppl who think that they can just live off rent income part of reason house prices are high hope 8pc plus rates wrecks btl market
Shame to hear it. On the other side, would you agree that there is also a huge amount of jobs and economic benefits created from the tax paid, the construction required, and good homes created instead of left empty?
@@JustinWilkins Why would they be left empty?
Did you mention income tax and capital gains tax, sorry if I missed it. How much was your CGT bill?
Didn’t mention it in the video as wanted to focus on the pros and cons of the actual ownership, rather than go detailed on the profits , vs tax etc
@JustinWilkins I've been following you from nearly the start (I think), always like your videos but I think it's only fair to cover tax implications, so many RUclips property people don't and the tax is a big part of it, we feel the pain every year 😅
Very informative but no mention of Tax?
You’ve missed the point of the video entirely. Of course il pay tax lol
@@JustinWilkins No. You've missed the point of my comment. I wasn't accusing you of not paying tax. I was simply expecting you to have mentioned it in your very informative video. I.e. you mention the £575 rent but unless you're register as a LTD company income tax is due on the full amount; gross as opposed to net. Also the tax on the capital gain is worth a mention especially as you express an interest in capital growth. And, since our lovely chancellor has reduced the tax free allowances which are diminishing over the next couple of years.
So your using click bait to get viewers! You're Not Selling Your Buy To Let's! I'll now unsubscribe !
Did you watch the video? I did sell my buy-to-let
Will this model work with higher rates and falling house prices.
Still works but is much harder! I’m purchasing a couple of houses right now, and il be doing the same strategy on those 2
😂
Obviously not when landlords are selling in droves.
Is that Lancing/Broolands industrial estate, the weird red building looks familiar? On a practical note, u said ur profit was 23 grand over 2 years, I think u should take off about 8 grand from that profit as that is what u would get for roughly 80 thousand pounds at 5% interest during the last 2 years. A solid 15 grand...just too many people don't cost inflation or interest into their equations!
Inflation is exactly the reason I have made more money! But do I need to deduct it from my profit, personally I don’t think so. Inflation or not that money still landed in my bank account 🙂
But overall I understand what you’re trying to say and appreciate it 🤝
@@JustinWilkins "Inflation is the reason I have made more money", u made more pounds, u did not make more money due to inflation!
Amazing video Justin! Been a little busy but catching up on your content and just wow... good on you man. Very inspiring!
Pepe! Good to hear from you man. Thanks for watching
Not much mention of paying tax here 🤔 TAX MAN ???? TRUST ME NOT MUCH LEFT THESE DAYS IF DONE TOTALLY LEGIT!
Point of the video was to share the experience, not my annual tax bill. But yes I will be paying tax
@@JustinWilkins yes I understand that but it’s very misleading to say about profits when they are not as tax still payable . It almost comes across as tax avoidance advice.
Just get a job pal.
Got one thanks, it’s going pretty well
The bank puppets are going under.
Property prices are only kept up by immigration and it doesn't look like it's stopping anytime soon
When others are fearful be GREEDY. When others are greedy be FEARFUL.
Àll planned to destroy the economy and private property rights
Was capital gains tax and general income tax taken into account in the calculations.
No I didn’t share these in this video
what bank offers mortgages on buy to let on homes under £100k?
Lots! You are best to speak with a mortgage broker to get access to them. Not many 'high street lenders' are good when it comes to buy-to-let mortgage products.
Thanks for sharing, what was your final margin in percentage% from this buy and flip because you did finally flip the property in the end.
Thanks for your videos mate,I have learned in recent months is to remain calm, especially when it comes to investments in cryptocurrencies. Learn not to sell in a panic when everything goes down and not to buy in euphoria when everything goes up. I advise y'all to forget predictions and start making a good profit now because future valuations are all speculations and guesses. The market is very unstable and you can not tell if it's going bearish or bullish. While myself and others are trading without fear of making a loss others are being patient for the price to skyrocket, I would say trading has been going smoothly for me i started with 3 BTC and i have accumulated over 11 BTC in just one month with the Trading strategy given to me by expert trader Chloe Miller
I have seen a lot of positive post about this Chloe
Please How do I contact her ?
I will drop sher tel in bits because of RUclips guidelines
+1
61631
93914 📌📌📌📌
Just get on with the video;
You can’t get a cheap loan. There you go, end video
😂😂 that’s incorrect
'effin' 'ell - this guy is the master of the everlasting sentence !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Il take that crown 👑 many thanks
Hi justin. Great video, very informative. We have a renovated property in the north, great location in Burnley, fantastic tenants paying a good rent. We are looking to sell ...if ever you think you might be interested in chatting about it, we would be only too happy to talk.
Hey! Thanks for watching. Sure, drop us an email at sourcing@property-x.co.uk with all the info and we’ll take a look
@JustinWilkins many thanks..I have just subscribed to your email list and have sent an email to you. I failed to mention its a 2 double bed mid terrace. Looking forward to hearing from you.
I think you have made a mistake here. Good property, all work done, yes you spent more than maybe you should but you had a sound property. I think we all over spend in the end but this property was a sound investment.
Thought about this one a lot James, and I see both sides of it. On one side I think you’re right, on the other side I know the projects I’m trying to purchase. Hard one, as I do think that will be a great long term rental now - after I’ve done everything 😂
@@JustinWilkins Single BTLs isn't a great strategy unless you have allot of them, the cash flow is bare minimum & you're relying on a single tenant who could lose their job tomorrow, which makes it risky imo.
My preference is to buy larger HMOs, or concentrate on much bigger buildings that can be converted in to multi let blocks. It's more work but the reward will also be that much higher & you spread your risk.
@@marklewis3023always thought the same as well. The only issue for most though is to buy a HMO you normally have to have experience with BTLs to get a HMO mortgage
@myforexreviews my first BTL was a HMO & yes you have to get a HMO mortgage, but that's not a massive issue. Article 4 planning & licensing is the bigger issue, you need to study the rules & regs to make sure you're compliant & then either manage it yourself, or find a decent agent. Once you've done one & understand the requirements, then it's easy to duplicate.
I off-loaded my mortgaged ones in early 2022 when all these youtube channes were saying buy. My Tesla shares up 55% in 3 months 😂. Cheers everybody🎉🎉🎉
The dump will go back again.
When you say remote lamdlord. How remote? What area is this in? How would you identify areas if capital growth?
Not a bad profit. I bought a semi 4 years ago (not to rent) for 190, selling for 265 to go up the property ladder so made about 50k on it.
Great work! 👏 did you do much work to it? Or was that just from buying and holding?
But how much has the house you’ve bought gone up in the same time
Plus how much interest did you pay on your mortgage you had on the property
People forget to add that up
Many people purchase a house for let’s say £100 k
They pay the mortgage on it for 20 years
And then sell it for £200 k
And think and tell everyone they made 100k
But if they added all the mortgage payments up
The house actually cost them 220 k
So they actually lost 20 k
@@boyasaka20k to live in a property for 20 years. Not bad if you ask me😂
No boasting please. Ok why not. I made £170,000 profit on a property I bought at auction in Wales. Sat on it for 6 years though.
Great video. You mentioned about high capital growth. What area that would be?
I started my journey in slightly riskier areas where ROI and cashflow was higher, and although capital growth has been good to me. I’d like to focus more attention onto the best areas possible within the north west and Yorkshire 😃
Financial freedom by ripping off mug tennents by getting them to buy you houses 😡
Roll on the property price crash 🤣
Interesting mindset - how am I ripping off tenants?
@@JustinWilkins because more often than not it is cheaper to buy a house with a mortgage than what it is to rent the same property.
A lot of landlords let out properties as a house share. Is that because you make more money charging 3 people £500 a month rent for one room rather than charging a couple to rent out the whole property for £800 a month?
RIP off in my opinion.
Justin do you do mentoring? I would love to buy my first BTL just like your first one so inspiring.
Yes 🙂 please email at program@ property-x.co.uk and il send more info
Tough times dont last, tough people do - that african guy
Great quote! haha
The system (Section 24), plus huge interest hikes. is successfully killing off the high leverage interest only Landlords, freeing up purchases for huge housing corps, and cash rich minimal leveraged Landlords. Downing street is protecting and norishing their own.
I could probably find this somewhere, but how old are you buddy? I'm currently on 3 deals this year, trying to get it to 7. Thanks for all the gems in these videos.
never sell Justin, I had my first buy to let with the same issues costing a fortune but I've kept it as the educator. I'd never sell any as it creates a tax bill. I simply use majority of profits this way, 60% into s@s isa, 10% maintenance, 20% aside for tax bill and the remaining 10% filter across into work place pension. creating a good diversified investment allocation, creating an ultimate accelerated pension generator. Its all about tax efficiency and diversified.
I’ve sold most of my BTL and invested in global index funds and now live off the 3% rule.
Interesting, what made your decision to sell most of them?
@@JustinWilkins Index funds are more passive, more tax efficient and liquid. Historically the stock market has doubled every 7 years.
very late to this game - BTL or investing in properties is over. To put in simple terms, this is a game that work only when interest rate are very low as the expected rental income will be able to cover all the expenses and make some profit. With the current mortgage rates and tax legislation which has removed the interest paid as deductible, you will never be able to make a profit on any properties (unless you pay 50/60% of the property with your own funds).
Forgive me if I've missed something but if you have put down 25% and then refinanced why are you talking about your investors ?
Is the 25% not your seed money ?
Where do these investors come into the picture ?
I understand refinancing.
I don’t understand selling.
Selling a cashflowing asset does not make sense to me.
I was definitely in two minds before selling - but ultimately I think the new opportunities I am going after will offer better returns in the long run!
@@JustinWilkins yes I have just spent over £100,000 on the foundation of this new build. So I think that something that is bringing in some profit just needs to be replicated.
A friends of mine has I don’t even know how many of those and no longer needs to work.
I don’t agree with the go for yield or growth approach, it’s total return you should seek. In vanilla BTL going for yield results in multiple properties in cheap areas that become long term a burden to manage. Going for growth (or perceived growth) results in investment following fads like property in “boom” areas or “Nottingham”.
Good video, I've been selling also, have you looked into HMO investments, better cash flow and capital appreciation, probably no bridging loan tho due to the time frame and cost over 8 months
🤔 I really don’t understand the point of taking photos with all the furniture 🪑 upside down all those chair can be easily move out of the way and that sofa can be kept on the floor with a push … all the drama 🎭 for nothing
End of the day house refurbishment mean totally different work not to be confused with house cleaning 🧹
Haha what are you on about. The house was bought in that condition, with the furniture, with the broken windows, with the damp and missing kitchen. It wasn't for drama - it was simply showing the property in the condition it was bought.
Don't damp proof a traditional property like this damp will just return due to it having nowhere to go, lime plaster the walls, remove any cement repointing for lime and add windows with ventilation slots. Resin injection ruins old houses like this.
Hi Justin thanks for another Quality video!! I am quite new to this but learning so much so fast. I wanted to find out what does that £12-£13k money left in consist of in this deal ??
Not so relevant with Starmer in No. 10
Still relevant