I understand what you want Vincent. We can not analyse the future only use experience and trends to help us forecast. For commercial capital growth depends on the paperwork, the lease or alternative use such as converting to flats. Good luck.
Hi Paul, I'm really enjoying your material. I ummed and ahhed for ages but you've convinced me! What would you do if you owned a house outright that you rented? Sell and buy again or remortgage?? Thankyou
Even the Doncaster property would struggle if higher rate tax payer because of s24 if buying in personal name, and think would come stuck with new rental stress tests, think the deposit would be higher than £60k. Crazy I agree going to be such a lack of rental stock
@@PaulSmithTouchstoneEducation yes I agree, its just a shame this government has made us jump through such hoops for something that should be relatively straightforwards.
But if not higher rate tax payer, then there is no bottom line difference. There may be ways to lower the marginal rate of a taxpayer, such as with extra pension contributions on employment or self-employment income. Alternatively, changing some of the properties to SA so that Section 24 does not apply, and maybe get to use some capital allowances.
Hi Lee, it is more difficult to add value as gardens & rooms are typically smaller than older houses. We will often turn a 3 bed to a four bed for example by moving internal walls or build an extension in the garden. This is much harder with a more compact new home. The upside of the new home is 10 year guarantees and much less to do! Hope this helps.
Great video Paul !!1 What is it called this tool you use to calculate mortgages ? Also, I dont have £60,000 to invest in a property like that so if i find someone to fund a deal like that, do you think that by refinancing it would make me get this £60K back + interest to investor or at least around that? Thanks
@@PaulSmithTouchstoneEducation As I have learnt from you, property is a series of micro markets. I have been investing in my own way into my local market in Bristol. I can see the Sums don’t add up to invest more money into Bristol. I have invested money into Tesla shares. (Probably a fools move).As it’s only a small amount of money I’ve used I view it for fun. My passion is to serve my community. And we’re going to go through the biggest housing crunch we’ve ever had. I will be investing in property again.I just want to wait for interest rates top first.
@@PaulSmithTouchstoneEducation So just in case case you cry bullshit. I’ve been investing one share a month for Sometime. So I can honestly say I bought the bottom of the market and the top and the middle.
I tuned in and was disappointed to see you talking about making 500 quid a month using rightmove, can we have an update on the 1 million quid in 6 months refurb?
@@PaulSmithTouchstoneEducation It came up automatically when the previous video ended. One thing you should add to this calculation is the cost of capital, the 50k deposit could earn interest of about 2k per year at the moment in a bank. Given the uncertainty in the housing market at the moment any property investment should be approached with extreme caution in my opinion. Look forward to seeing the update on the 1 million challenge.
@@chrisdickinson4576 Thanks Chris, I wish I could control RU-vid! It has a mind of its own. £50k to earn £2k is 4%. I do not see 4% deposit interest rates. That also ignores inflation at circa 10% which gives a real interest rate of minus 6%. I agree we could add cost of capital to the calculation though. Good luck Chris.
@@PaulSmithTouchstoneEducation The base rate is literally 4%. Numerous banks offer 4%+ on 1 year deposits. A big part of your calculation on the cheaper property looking profitable is you are subsidising the mortgage with a large interest free deposit. If you look at a BTL rate mortgage rate of 5.3% (HSBCs current rate) on the full 180k (75%) and 4% on the deposit of 60000 (25%) you are basically talking about 12k a year in interest (before you even take into account mortgage costs) which makes the whole investment alot less attractive on paper.
My family home is worth more than others in the area or the same private estate because of whom I am and what I have achieved. And therefore the value is allot greater than my neighbour’s. The value can be f compared equal to Westminster Cathedral and st Paul’s in London. My books will explain more upon there 2025 released ⚡️🤴🏽🕉🔺➕
Why should someone spend 20 hours of their 40 hour working week to pay off someone else's mortgage? Private rent landlords are parasites on the backs of working people. Build more social housing.
Great question Kathryn. Who will build your social housing? I left home at 17 with £170. Nobody gave me anything after that. I used the rules and earned it. Why can others not do the same?
@@PaulSmithTouchstoneEducation there is more than enough money to build social housing, its a political choice. The neoliberal economic system has failed, creating mass inequality and predatory capitalism. A more Kensian system is required. Social housing would create jobs, solve the housing crisis and the rents used by councils to improve and support communities. .... . Others work hard, but decades of stagnant wages, zero hour contracts, high rents and lack of opertunity mean very few get the breaks a handful of other get, and not everyone is prepared to exploite others to be advantaged.
@@kathrynbeetham5308 your idea is similar to the one operated in those communist countries. Have you ever thought about why all of the people in the communist country immigrate to capitalist countries? Because people's lives are worse there. I can say this as I have lived in both. You need to travel a bit, so you know what the reality is. Your theory seems good, but it does not tick that way. Unfortunately This is what the socialists do not see, IMO Most of the landlords work harder than those who rent social housing and pay a lot more tax to the country. It's debatable who the parasites are.
@@hongstewart9095 oh please. What rubbish. Communism is authoritarian. Democratic socialism is libertarianism. Calling something Communism to try to shut down the debate about social justice and ethical, people centered, economics is so 1970's. Do you not think obsean profits by energy companies is absorbant while their customers work 40+ hours a week and still cannot pay their bills? Predatory capitalism has delivered nothing but poverty and destruction of the planet for the last 5 decades, and your answer is to call anything that proposes a solution "communism" in the hope it scares people from realising there is a choice. It doesn't have to be like this.
@@kathrynbeetham5308 OK stop being a "worker" ... that term always interests me.. everyone "works" some just get paid more for it than others. So why not get a better paid job or start a business? If your point is a political one then OK. I am not a politician and I do not have a vote in the UK. I live in Monaco. What are you asking me to do about your issues?
