@@__-mt6jk really? Buy to let investors outbid locals on property, repeat several times, come winter local population is hugely reduced. Similar has also happened with second home owners too
Fully agree. Only 5% for maintenance. I'm looking at buying and my calculations for making it a place I'd be okay with living in put it at 10% minimum. This includes roof repairs and replacements, boiler, flooring, pipework, bathrooms, driveway etc... Over a 25 year cycle. 750/month leaves £900 a year for maintenance. Sounds like a lot, but a boiler 20% of a decade is gone on a boiler. 20% of a decade is gone on new flooring. 30% of a decade is gone on a cheap bathroom and kitchen. Save the 50% for major repairs £5000 is a roof replacement. £2000 driveway. £2000 repointing and cleaning brickwork, chimney repair etc... Yep. At least 10%
@@markp8295definitely a strategy to follow but £5k for a roof replacement? That wouldn’t even do a medium sized extension these days. My team and I fibreglassed a roof this very day and that was a £5,500 job and was probably 15ft x 10ft.
Going to rattle a few feathers here but how about not telling the world that houses are cheaper in Wales and leave them for the Welsh people that want a home not a profit. Amen
@@FontaineBrothers obviously wouldn’t rattle your feathers… Hopefully all your houses don’t stand empty long enough for the locals to notice. Be a hell of a shame if all your copper pipes etc got ripped out the gaff wouldn’t it son lol. Have a nice day
@@stedmodopar6252that won’t make any sense to this greedy bellend. He won’t see a problem taking affordable housing from those that need it to line his own pockets.
The same everywhere. Landlord doesn't do bugger all about a tenant complaint, but you bet if they had the same issue in their own home that premium tradesmen would be there in seconds. A landlord wouldn't tolerate a month with no washing machine then have some generic "property maintenance" people barging in at 6am with a heap of garbage, having only notified you at 10pm the night before. They would just get John Lewis to deliver a £2000 Miele affair next day and provide the full white glove service. They are so detached from the issues their tenants face and they genuinely don't care. The government have woken up at least, and finally these parasites are being hammered. A career landlord would change their tune pretty quick if they were charged 300% stamp duty on their new purchase, also if they were taxed 30% of all the rental income.
As someone from South Wales I would just like to ask, where are you finding houses at 75k? Houses in my street were 80k 6 years ago. Covid raised them by 60k+…
Don't do this.... That's 4 roofs, 4 Kitchens, 4 bathrooms, 4 sets of tenants each potentially defaulting on rent..... Think long term, decent location.
Awful advice. The reason you have cash flow on your properties is to cover maintenance. You don’t make money using cash flow, you make your money in the appreciation of the asset. It’s another reason why this video is crap - house prices don’t go up in Wales and they are hard to sell - that’s why they are dirt cheap.
@@04andyh I once saw an obvious former growhouse on Rightmove. The whole place was filthy and poorly kept, including the upstairs attic room with silver ducting, empty plant pots laying around and even some small remains of blue-and-white police tape. Lovely. A growhouse is generally badly contaminated and needs full renovation. There's also a serious risk that they tampered with the electric so that would probably need inspected and potentially gutted. The other issue with the growhouse is users or scumbags thinking it's still active which is a security risk to you.
@@TomHartill Yeah, it's not the deliberate lack of housebuilding over the period of about 50 years or the deliberate increase in population through immigration - it's landlords. Definitely landlords.
@ty194 well actually, it's a combination of things. Property being bought up by rich overseas investors and not lived in, growing population/immigration, supply shortage AND large numbers of baby boomers owning second homes, too many landlords. These factors combined contribute to a supply/demand issue and drive up house prices/rent. You cannot simply hand pick which factors you want to fit your narrative, then write sassy youtube comments. Obviously having too many people owning multiple homes, and career landlords inflating prices are real factors. Do we need landlords? Yes. Do we need this many landlords? No.
Only people doing this are people that don’t understand property. Now you got to fix 4 broken boilers instead of one. And they are not much cheaper in wales.. also looking at the numbers now your going to be losing money on cash flow with new mortgage rates and probably close negative equity at this point with price drops. Good job 👍🏻
Cannot agree more... Unfortunately there is a pocket of people that will still fall for this scam. If you really want to go for it. First go local one small property, then you will see the double digit ROI, in your dream.. One suggestion Google tenant credit check first .
Hasn’t factored in tax or accountancy fees on a Ltd company. Plus rental voids etc. just invest in the market in a S&P tracker, liquid money and no tax if you utilise your annual isa allowance. Simple. Seen many more rich people make money this way than those that invest in good old bricks and mortar.
Finally someone’s who’s actually honest about how much people make in real estate. 4-9% return on equity is pretty decent, most people make 4-6% gross and in major cities it’s on the lower end of that. But if you go online people are claiming making double digit returns are normal, sorry but in the long run it’s just not.
@@jrfw96 regardless we dont want people like this buying up the properties, its hard enough for youngsters in the local areas to get onto the property ladder let alone people like this muscling in and out bidding on properties
@What’s good nobody asked you to comment on my comments lol.. i can tell you dont care, maybe thats why ur broke and lonely surfing youtube for an argument
In my town (200k people) every single last new HMO application in 2023 was rejected. Every. Single. One. One got through but was revoked on appeal after the locals started banging the dustbin lids. Lovely family homes in good areas, carved up into rooms by a slumlord and rented out to tramps and criminals. There was one that was shut down by the council and everyone evicted, after one resident murdered his buddy across the hall.
How did you manage to get nearly £100k upfront? That's amazing, especially for a young lad. Wish you all the best with the journey, wish I was as brave. I had over £100k in 2016 but played it safe, got married, paid debts off, moved to a bigger house, helped family. Yes my equity is now about £300k in my house but no passive income above that
Ahhh well I’ve been running business for nearly 10 years now and failed them all only been getting success in the last 3 years haha so hopefully I can keep going
,,I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this
What he’s neglecting to say is to buy a 80k house in south wales you need to buy up the valleys where most people don’t have much money so you won’t end up getting much rent if any just a lot of head ache trying to evict
Or put your saving into an ETF fund where it can return you on average of 7-10% yearly. Without worrying about tenants and hassle or renting a property?
Hello lads, met you in the travel lodge a while back when you were picking your daughter up. I spilled my pint a little 😂 - do you have any properties in Dorset at all? Could definitely help each other out 💯 checkatrade highly rated in Poole, Bournemouth, Wareham, Swanage.. and GMB top rated Blandford. Let me know 😊
Yep, if you rent out straight away,if tenants will pay you rent each month,if you don't have to evict them,if you evict them quickly -- just costs,costs,fees, headache
All look easy in the beginning but on long run you see half of the profit gone when tenants don’t pay rent and don’t want to vacate also take you court and make you spend more.
Good on you young man…I started doing the same in London 28 years ago,89 properties later I’m still at it,keep it up,your an inspiration to all young people watching 🙏👏👏
Yeah but in Wales, as soon as you fit the new boiler stairs etc ,before the contractor returns to Bournemouth the new stuff has been removed by locals. I know, I'm one of the contractors that worked for a lady in London. She was a lovely lady ( Theo Russell) just trying to make a living. Welsh hate the English.
@@gavinthomas7375 I hope you're not suggesting that the English hate the Welch. I personally travelled to Swansea many weekends to have a good night out from Somerset. I'd stay there and in the pub the next day. I suffered no such discrimination. I love the Swansea folk. But when I worked in Rural Blanoufestiniog. You could cut it with a knife. Talk about "Take the wrong turn".
Your expenses have missed out either corporation tax or income tax. So say it’s 25% corporation tax, for four properties you’ve only actually made £585 per month. If it’s income tax and this is large scale you’ll earn even less. Plus interest only mortgage so at some point down the line you’re going to have to pay off a £400k debt, at £585 profit that will take you 57 years. And yes you could sell the properties to pay off that debt but then you have to worry about capital gains tax or market crashes. Dangerous game to play and as others have said immoral anyway as your driving up the rent in the cheaper areas.
Interesting take on this, and just as interesting… is the comments section. Will be looking into more if your videos. I’ve lived in North Cyprus for over 6 years where it’s similar strategies, but with the advantage of short-term rentals being maintained for about 8 months per year.
Respect to you... I did the same thing in Liverpool and then Lisbon... But don’t forget to talk about the potential pitfalls. If you get problem tenants who don't pay rent... Problems with plumbing, electrics etc. All that cost is down to the Landlord. You need some funds (contingency) in the backround on top of what you're talking about.
U can get a better return putting ur cash into high interest account and no hassle now the housing market value as stabilised and even falling then when the recession hits u got cash to buy more ,and no long drive to Wales 😊
I accidentally got sent a load of rental receipts by a letting agent once. I opened them. The landlord was making £32k in rent before tax and I knew the area well enough to learn that his properties were probably worth about £700-800k. It was a cheap town and this was 2015 or so. At the time my annual salary from working full time wasn't much more than £32k.
Allow for repairs, delinquencies and so on and 4.9% does not look much better than gilts, without the huge downside risk of 4x leverage in an increasingly bearish housing market. Typical housing downturn in the UK is over 30% real. With 25% equity, not great.
Few issues with this. 1. It destroys communities for greed. 2. Where the duck do people get the £90,000 from? 3. Where do you live if youve spent all your savings on investment instead of a house of your own? Dont knock you as it is very solid advice. The problem is this boomer advice and only applicable to rich people who probably got rich out of pure birth lottery rather than knowing something special.
What about appreciation, here in Canada it’s less on cash flow and more on appreciation cause real estate goes up every year Would you ever swap to a conventional mortgage and pay your loan down?
He doesn't factor in people in Bournemouth pay the rent, people in valley's don't pay least 50% of the time and wreck the houses so you don't get better return and they don't really rise in price hence why can buy 4 for price of 1
Yeah I agree. My wife and I liquidated any older builds and moved into the new/modern build sector. Even with the premium rates we have no effort of getting reliable tenants before the build is even ready. Gives you more pride n your portfolio also even if the income level wouldn't technically be as good.
Fergus Wilson retired and sold everything. At one point he seemed to have been personally earning about £600k a month before tax. Nicholas van Hoogstraten has also basically done the same, with most of what he formerly owned now held in trusts managed by his kids. NvH's strategy is a very common and very sensible one - you own sod all, therefore there is sod all to be taken from you. It's also a good way of skirting IHT.
People don’t realise these profit margins are too small. If you rent a house for £1000 and your mortgage is £700 you don’t make £300 the government say you are making £1000 and charge tax on that £1000 not the £300. Then there is costs things breaking tenants not paying you. Property is dead now unless you are rich and looking for a greater return than a bank account on your money…
Exactly. And that's where people get their fingers burnt, by not knowing this very simple fact. I friend of mines dad came to London from Cyprus in the early 70's. He got into rentals and built a small empire. Spoke to him a little while back and he said it's impossible to what he done now.
@@tilerman I know people that done the same thing the only reason they made money was because of the boom in London which you either predicted and knew more than most or you got lucky. Everyone talking on here about buying property with tiny margins clearly have never actually owned any property because you would be crying after recent mortgage hikes. You would be paying on top every month for the mortgage and then you would be paying a hefty tax bill at the end of the year on top. I suppose they have to sell there courses about how to buy property with no money lol as if 😁
There's a reason why Fergus Wilson sold up and retired. There's also a reason why the artist formerly known as Nicholas van Hoogstraten now owns basically nothing and it's all in trusts run by his kids. Headache, hassle, and the government turning the screws. People like this are being actively targeted by the government and it will probably get worse under Labour.
Yh just fuck up the house prices for the people who live there and want to buy when they're old enough, but don't earn as much as you because of where they live.
Except that your local area you more than likely won't need management so that's 12% saved already and capital appreciation will be far different. They all have pros and cons, plus Wales? R.I.P PRS
go ahead, buy the 4 properties in wales and see how much time you spend fixing them and commuting to do the work on them. youll be doing a 400 mile round trip every time a light bulb goes.
The problem is the houses you are on about are cheap for a reason. You will struggle to get a tenant because barely anyone live in these areas and the people who do live there are the older generation who already own their home. Also you would find it very hard to sell the house.
People please tread carefully. Investment is subject to your own circumstances and risk profile. This may or may not be good, but the gains in property were made when money was effectively free when we had 0.5% rates. It's now 5.5% , tax is a factor and the economy is tanking. Remember returns will kick in the long run. This guy actually put maintenance at 70 per mth😂😂😂😂😂😂 he's living in dreamland. Often these cheap houses will need a lot of maintenance. The rental segment of the market is renowned for causing damage to property. Trust it's not going to be 70
Wales don’t let people do this, they done it in Cornwall with holiday homes etc, completely ruined the house pricing so Cornish people can’t afford basic homes on their wages
And the renter the agent puts in the house on a 6 month contact pays for the first month and then leaves after legal proceedings 6 months later. I would use a better strategy based around SAs
