USEFUL TIMESTAMPS although the video builds on the previous chapter, so for the 1st time ever I would recommend following the order to get a full understanding of everything… 00:00 Introduction 00:25 Are buy to let's still good investments? 01:55 What are Buy to Lets? 02:11 3 Reasons to Invest in Buy to Lets 02:45 Leverage with Buy to Lets 03:25 Why take on mortgage loans? 03:53 Rental multiplier / Coverage for Buy to Lets 04:30 Stress testing Buy to Lets 05:15 Real life example of a Buy to Let I purchased 06:25 Step by Step Process for Buy To Let Process 06:30 Step 1 of the BTL Process 07:12 Step 2 of the BTL Process 07:55 Another example of a Buy to Let I purchased 09:25 Step 3 of the BTL Process 10:42 Step 4 of the BTL Process 11:17 Sales progression process 11:35 Step 5 of the BTL Process 12:13 Step 6 of the BTL Process 13:14 Landlord duties & Bloopers Hope it helps everyone :)
ALSO once you have finished the video it and want to practice the exercises mentioned in here especially the stress testing do this: 1. Click here www.moneysavingexpert.com/mortgages/mortgage-rate-calculator/ 2. Change mortgage amount to 3 x your deposit (or 75% of purchase price) 3. Click interest only 4. Change % to 5 for stress testing 5. Click calculate to see the monthly payment 6. Check against the multiplier
Thanks Max 🙏🏽 the struggle is real atm lol. Been hitting good retention numbers and CTRs but RU-vid says no 😂 But genuinely even just getting 1 person to watch / save some cash / learn a lesson / take something means a lot and it’s why I do it. Appreciate you watching
@@TheAnxiousInvestor Well clearly there is something wrong with YT! Massively inspiring content, just accepted a job offer to train as an IFA, mortgages and financial planning will be my future and can’t wait for it! Look forward to putting your advice in to practice in a year or two. Please don’t stop making content!
Congrats mate hope it all goes amazing for you & I won’t stop mate, I’ve got about 50 videos drafted and hopefully soon I will start new builds and can vlog that for subscribers to learn about it along with other small ventures going on Have a nice weekend and thanks again
I have just started looking to become a landlord. So glad I've stumbled across this. Gonna have to watch quite a few of your clips before I even start 😁🙌
Thank you Aren. New subscriber, finding your videos INCREDIBLE. Will be refinancing my home soon (have that part agreed with my lender) and will be making property investment purchases this year. Your videos are extremely helpful. Thanks again
You are so welcome, and thank you for watching too. I have included a few examples and technical stuff that many people brush over that is worth wrapping your head around. I will also get back to you if you need anything else on this topic here too. Thanks so much and have an awesome day
That was a bloody good video Arun. I will speak on most people behalf’s. Super special. Your superfood has helped me digest this information very well thank you very much.
Yeah I can see this being a problem across the board. One of the main reasons people moved towards LTD companies for their purchases. As for the cost of doing things up, a good handymen (trustworthy) is definitely key.
@@TheAnxiousInvestor Looking for some BTL properties at the moment. However, I am slightly out priced in London. Anywhere else I can invest with a £30k deposit?
This was so helpful, thank you Aren! Please could you tell us more about using a property manager to manage the property for you. Is that worthwhile or a waste of money? Thank-you so much, I can't wait to buy my first buy to let, thanks to all your advice and guidance!
Bless you! Comments like this make my day. Thank you for watching and I’m so glad they helped you. So I’d always go of recommendations where possible. Ensure you have everything understood from: call outs if something goes wrong, to fees & monthly charges. As for a waste of money, they aren’t a waste of money IF you want your time back. For me 10% to them, to deal with a few hours a month managing tenants gives me a few hours to do things I want. Do note though, you need to still be legally compliant as a LL, they won’t be taken to court should you fail on that end. Also finally check payments too. I had a rogue agency charge my tenants £650 but tell me it was £600!!
Hi I have found your channel yesterday and I have to say I am very happy. I always hoped the U.K property investment videos will get more in number and higher in value. I love your videos I have to say! The part when you say " don't be a Slamlandlord " tells a lot about yourself and your personality. Well done! I am at stage of my life where I can afford to buy a property but it is hard to decide where to start. Do I want to buy and move in or do I want to keep renting for myself and invest in buy to let and then repeat. But I know for sure that property investment is my long term goal,.it's just this first step that's quite hard to take as not sure what si the right direction. I was wondering if you were giving advice to new investors outside you tube? I hope you are! That will help people like me a lot! If you are, I am ready to meet/talk and hear the terms. Your help would be highly appreciated! Thank you for the great content!
Thank you for the kind message and taking time to support the channel & watch. If you want to speak about investment please message me on Instagram. Be careful there’s a lot of scam accounts. The_anxious_investor is my handle but there’s a lot that look similar. Be happy to chat there
Congrats on 6k mate. Great video mate keep it up always love the content. Have a great week, I have exams for next two weeks :(, then I leave after :). What's your plans
These videos are terrific. thanks for sharing your insight! I'm looking to get into the Buy to Let game to increase my monthly cashflow and would love to hear your thoughts on best ways to let out a property - I would be potentially looking to get 3-4 over the coming 12 months... do you use agencies to rent out your properties or do you do it all directly? Also, do you use insurance in case a property is emapty for a period to guarantee revenue?
appreciate you mate. It really depends on your own appetite for wanting to be a fulltime LL. I dont. But i do have some older properties i self manage, but my latest projects I always outsouce to letting agents for peace of mind. All my properties have building insurance but i dont have rental guarantees in place for my single lets, only my lease contract for the 10 flats we have on our site.
The market has turned and is heading south and fast. You can tell the people who recently bought have substantially higher rent asking prices. Around here a 2/2 is about 2000USD. New buyers are asking for 2800+ and they look panicked when people turn away when asked pricing. I understand they need to cover costs and make some profit but as the smoke clears they are noticing they bought at the height and are now holding dead weight.
Hi Aren, great video to get me started. I've been a lurker for a while now, but I thought I shall ask. (Apologies if already covered) I have had big difficulties getting in touch with a mortgage advisor (to discuss btl mortgages and get an aip), what is the best way to find one? Interesting to see the calculations around mortgage affordability. However, I was concerned if my credit score may affect my mortgage application, again I don't want to go for a btl if I am going to be rejected. But I assume I would go via a mortgage broker to get an AiP. Also could you go for a higher ltv mortgage to help with the affordability check? I was interested to see why you did an interest only mortgage vs a repayment mortgage? And when you look at houses, what do you typically look out for, electrics, damp, etc? Thanks again
Hey :) thanks for the comment and watching. Ill try and address everything now: 1. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_mRSrZOW0SA.html Interest only vs capital repayment video 2. You can approach banks, or estate agents as they have in house mortgage brokers to understand your lending. If you have something concentre I can recommend some. 3. Credit score is important, I am doing a video on this. A broker will likely do this yes. 4. A higher LTV to help with affordability check? Do you mean, a lower loan to value? I.e. take less of a loan and put more deposit in? If yes, then that could help, but without full context of your situation - its best to work with a broker on this. 5. I will do what I look for when viewing houses, videos and I have done some smaller ones / i will throw up on my Instagram too so if you ever are lurking check it out there haha. instagram.com/the_anxious_investor/ Hope that helps.
@@TheAnxiousInvestor thank you so much for your detailed comment! I haven't gone for anything concrete as I haven't got a broker yet. I will let you know how I get on. Cheers!!
Really good video, Any reason why you are doing interest only mortgage rather than repayment? If you are doing interest only are you making payments to reduce the overall balance. Be interested to know.
Thanks Jatinder appreciate you watching, so it’s specific to everyone’s goals: I’d recommend watching this: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-_mRSrZOW0SA.html It explains pros and cons of both and obviously my perspective leans more on IO rather than repayment
Hi Aren, great informative video. Do you have any spreadsheets with formula to help wotk out the figures you discuss in the video? Maybe I'm being a little cheeky asking. 🤔
This is amazing information, is their way you can get their without having 20% of the deposit or can you borrow from a lender to then borrow again eg the mortgage?
Hey mate thanks for watching. So you can sometimes get a 80% LTV, but the criteria may be stricter & I don’t recommend over leveraging too much, especially as rates are now increasing too.
@@TheAnxiousInvestor honestly your content could change peoples lives! A massive role model for people! Also thanks for replying to my comment I have so many questions about buy to let
solid info looking forward to the coming vids 👊🏽...quick question regarding the example you gave. With the rent of 7200 annually how much were you cash flowing each month after all costs?
Hey! So quick costs off the top of my head: mortgage was circa £150 on interest only minus the insurance & putting aside 10% for voids / maintenance (had no voids) hope that helps. The refinance was awesome releasing just shy of £8k and that property now, all my initial input had come back out
I have mate. I think coronavirus is unique in terms of what we’ve been through and doesn’t have anything similar to it, over the past century. You could argue the impact of ww2 but again I’m no expert on history. Personally if the cycle is to happen again we could see a short boom for a few more years before a dip? Who knows! I’m just preparing for the worst in all my figures and DD
This was absolutely amazing thank you so much for your information. My ultimate goal is to cover my salary so I can just be home with the family. Long journey yet and still learning but I really appreciate your videos. How does it work using your first home as equity towards your first buy to let? If that makes sense
thank you for watching:) Do you mean use equity within your first home and release it to buy a buy to let? If that is the case, then you would be best speaking to a broker or your lender to see what options you have and how much you can potentially release, giving you an indication in terms of how expensive a property you can go up too..
@@TheAnxiousInvestor yes that is correct I am not ready for buy to let is it too early for advice? Just thinking ahead and you are welcome I look forward to your bloopers lol 😂
I’m really interested in looking at buying a BTL but due to living down south, a 3 bedroom you would need like 70-80k deposit, so I was contemplating looking up north such as Liverpool as you buy good size house for 100k, is this something you would consider as an investor or is there alternative areas you would buy a BTL? Thanks
Great info here, really helpful for someone who is looking to get into this. Do you have any info on doing buy to let with spv? The taxes don't really help doing it personally :(
Thank you. Usually best to speak with your accountant / tax advisor as for higher tax bracket earners, from my experience tend to opt towards ltd spv as it’s only way to at least earn something profitable. I have a very basic video 8/9 months ago on here but it’s literally what you probably already know. I’d speak to a professional let them know your full situation then weigh up the pros and cons of running property more as a “business” via the ltd than in your personal name. Obviously rates are slightly higher (mortgages too) Best of luck with your ventures though
Very good video thanks. Just want to clarify as a noobie, if I buy 100k property for 80k and put a 25% deposit down do it up and make it worth say 130k that leaves about 50k plus the deposit as equity ? Now if I want to remortgage it at the 130k value will the bank give me 75% of my equity or 75% of the 130k ?
Thanks Kevin, so your figures and the basic premise is correct however if you’re looking to add value to refinance a BTL Mortgage is not what you would take out. You would buy with cash, or with a bridge. Using the right product for the right type of transaction is key to avoid mortgage fraud and not get yourself in the bad books with lenders Hope that helps
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Thank you for the informative video. We are living in a property owned by my husband and I am planning to buy a residential property in few years and rent the current one. We ran the numbers and unfortunately there would be very less cash flow after deductions like mortgage, maintenance, agency company fee, etc since my husband is in higher income tax bracket. Do you reckon it would be sensible to form Ltd company or just sell the property rather than renting it?
If you move it into a ltd generally speaking you would need to pay stamp duty again. As for your income situation & what’s best I can’t personally advise and I’d recommend speaking to your tax advisor or accountant. Interest only could be a better option if you haven’t considered it too. Good luck with whatever you both do and thanks for watching
hm, I am interested with this 1.5 figure,. In London and other high value areas, this just isn't going to be the case. I suppose its because property in these areas are considered as long term investments, so the prices are more speculative? How does this come into the equation, as you cant seriously argue buying property in a place like central London is a bad idea?
Hi Daniel, do you mean what would you do? It’s not necessarily about whether or not you believe it’s a good area of investment etc. If the multiplier doesn’t work, then you’ll likely need to put in a higher deposit than the basic 25%. Interest only you can get away with less obviously. Is that what you meant?
Hey mate yes you can For example, if one of your businesses is in Buy-to-Lets, have one Ltd company with one SIC code, and for the Flip side of your business, have another Ltd company with its own relevant SIC code. There are 4 SIC codes relevant specifically to Property. 68100 Buying and Selling of own Real Estate. This SIC Code is the one to use for Flipping property. 68209 Letting and Operating of own or leased Real Estate. If you're going to have Buy-to-Lets and hold them, this will be the one for you. 68320 Managing of Real Estate on a fee or contract basis. Hope this helps. An accountant can do it or you can do it yourself for £13 or so
Save yourselves alot of hassle and monies tied up in Bricks !! As an existing Landlord with Residential & Commercial, I can honestly say BTL time is over. If you want to be a tax collectors for hmrc then go ahead otherwise for all the hassle with possible shitty tenants, repair costs, agent fees, accountants fees etc etc, btl does not & will not pay. Save into S&S SHares or Cash isa at 4% pa compounded isa which is 100% tax free AT THE MOMENT, 40K PER YEAR for him & her, INVESTED WITH EVERY PENNY EARNT UNTIL RETIREMENT IS "TAXFREE" WITH NO HASSLES, NO HIGH DEBTS ETC ETC. The rest is upto you people..
Haha so true. West Midlands has a few pockets although becoming more rare by the year but up north it’s a different game too London is in a world of its own lol
I don't think property business is any good because of new tax regulations where you can no longer offset mortgage interest payments. Specielly someone who is in 40% tax bracket
@@TheAnxiousInvestor It has it's own downside. Cost of managing the limited company is higher plus hard to get mortgage with limited company or interest rate will be higher. Not sure but I think you pay more stamp duty if you're buying through Limited company. In short property was an awesome business but since Tories started treating cash cows I don't think it is a good business anymore.
Stamp is the same & refinancing is the same, higher rates do happen though but ease of access & pushing things through is relatively the same. I wouldn’t completely write it off. Can still be beneficial, although I do prefer BRRR
@@TheAnxiousInvestor the only benefit I see is the increase in capital but amount of money one is investing vs benefit considering the risk if you fell for a bad tenant is huge. I have 3 bed property and had a problematic tenant whcih was evicted using bailiffs and overall cost including damage to the property was well over 22k. How long it will take to recover that loss? Secondly due to tax changes I have stopped investing in UK except I have only one rental property now so i bought a commercial property in Pakistan which generate more income compare to if I invest similar money in UK. Plus income generated there is almost tax free. UK is no longer an ideal place for investment :(
Lol Give me a shout if you do. But in all seriousness, 10 years of working & saving a little something every month & not wasting it got me there. It’s always easy to downplay long term sacrifices but it’s possible.
