Hey! I invested 5/6 years before a course & I have bought courses but regret it entirely. It’s why I try and teach the theory here for free as most the lessons are learnt doing rather than reading
Thanks Rubi! It’s always gotta be specific to the journey/goals so I’m glad it’s helped. I wish I knew about it back in the day because my 1st BTL I’d have benefited from an IO because I never kept it 🤦🏽♂️😂 & initially a repayment mortgage hardly touched your debt until the mid-latter parts of a mortgage term
Interest only mortgages are brilliant because the UK government has one of the highest debt to GNP ratios in the world (incredible but true. UK public debt is over 200% compared to 'only' 135% debt to GNP in the heavily indebted US). History proves that money printing is the only method Government uses to cling to power and so it is a 100% certainty that in 25 years from now the house you bought in 2021 for £100,000 will be worth £250,000 - £400,000 albeit in much devalued pound sterling which makes it a safe and profitable investment.
This is definitely a common thought process amongst investors & why IO has so many benefits and shouldn’t be misunderstood Thanks for adding some detailed knowledge to the conversation too / much appreciated
I have a question/query to run by you. Thought process: 1) Get a buy a let property by putting down 25% deposit for an interest only mortgage. 2) Rent out the property and with the rent gathered, pay off the interest payment. 3) With the remaining rent gathered, pay it into my own mortgage for my own house ( helping me pay that off quicker) 4) in time, 15 years etc, sell the house and recoup my original deposit and hopefully the value of the property has increased, therfore increasing my 25% Does this make sense?
Got your points👌 But too late for me, I’ve already signed up for Repayments. Hopefully, in my next few properties, might consider paying interest only. Thanks for all your videos, very informative. 👌
Was thinking to do that this week funnily enough! I’ve written about 4 so hopefully if I feel up to it can shoot tomorrow! Thanks for watching Stanley and hope you’re keeping well
Great Video. I was actually one of those guys who used to think, why would anyone ever choose a interest only repayment, but Now it makes much more sense. I think it would be still be best to to take repayment mortgage on your main residential home and investment properties 100% interest only. DO you think that is the good way of doing it?
Just found you from the FYP on TikTok (of all places). Great content! Looking to move into property. 22 now and have just bought my first home (80k, done it up whilst living in it) but question is where do I go from here? Do I move into the next house and rent this one out? Did you do the same? Cheers!
Hey mate! Thanks for watching You have a few options with this & I’m happy to jump on a call (link in bio if you need?) But you could: 1. Sell and benefit from no capital gains & use that profit to go again 2. You could potentially refinance & release equity to buy an alternate property 3. You could rent this out by getting a consent to let & release equity via a refinance or use savings to go again I never did this but I sold my residential and used that profit & equity to buy a site.
Thank you so much! Bit of a struggle being on a next to minimum wage job so a lot of overtime is needed. But I think a lot of people starting out would be in my boat, my parents were keen on having the extra space so no option to buy to let for me straight away. Currently renting a room out to my sister which helps (keep that on the hush😂). Because I got the house so cheap, I was hoping to release a little, re-finance and go again, I’m handy on the tools which helps too. Thanks again!
Haha don’t worry I’ll stay 🤐 ! Yeah you’re not alone mate- key is to try and save now as much as possible & if the market does dip you’ll have more of an opportunity to invest & make instant equity. Some lenders accept you without having a huge salary too / so never discount that you could still potentially get refinancing or lending opportunities
Great vid & just subscribed. Rookie question: Would you ever invest in a property where the monthly rental income only covers an IO mortgage payments & not a RM payments? Thanks
No rookie Qs here mate ask anything on any of the videos. So I’d recommend watching my buy to let video as it’ll explain why that’s not possible. ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-eon5QQvRJX0.html Rental coverage is very important. I do mainly do IO now however.
Hey Riaz, just checked the google sheet yes, my mistake I think I mixed them when I moved it around to fit behind me on the green screen. But the figures are correct. So 16.29% for the IO & 8.49% for the Capital (only the blue cells have been mixed) Thanks for recognising it and letting me know
@@TheAnxiousInvestor Yeah like saving vs paying off. It’s like anything between £5 - £15 interest per day depending on interest rate and amount owed. That’s a profit in my eyes, guaranteed with no risk.
@@scazz007 it depends on where your savings are going though in my eyes. For example if you was to just have money sitting there we know with inflation it’s not going up in value - so it’s about maximising / leveraging Low interest rates in my opinion. I think as I grow my portfolio and maybe 10-15 years time I’ll look to have some properties without debt just because that has its own benefits & once my cashflow is at a certain level (I won’t need to bleed everything dry). I do have an unemcumbered property now though but it’s a family owned one.
