My First Buy-To-Let Property - FULL REVIEW (4 years on) 

Thanks! And yes il definitely look to create some videos on my latest property purchases soon 😃

Cheers Jonny 🍻

Thanks Matthew! 🙏

Cheers Ben, appreciating your support 🤝

Noted!

I prefer these updated angles and higher quality. I’m sure most others do

Thanks Michael. Hard to know what’s best. appreciate feedback from both perspectives 🙏

Thanks David. Yes happy with this property 😃

Negative equity is only an issue if you want to sell I guess

It doesn’t make a difference unless you’re selling. Even if you bought today for £100k and tomorrow it’s worth £1

​@@joey-pn3xeIt makes a difference if you want to refinance after a fixed term is up. In this case he bought at such a good price, it would take a crash of epic proportions for him to fall anywhere near negative equity.

Thanks Tony. Just odd jobs required at the house; bits of plastering, painting, fixing taps, fixing blinds, etc etc. I’d say that for most people getting a ‘ready to rent’ buy-to-let and then getting any odd jobs done by a local trade is easy to manage and setup!

Had a mentor who showed me the ropes, and self taught certain parts / ideas to myself.

Interest only mortgage! Most buy-to-let investors use them to get more cashflow from a property, rather than repayment

Thanks! not all lenders are quite so fussy, but some lenders can be. On this occasion, they felt like I was a high risk for leaving a mortgage with them early. E.g. I get a 2 year mortgage product with them, and then sell the property 5 months in (meaning they don't get their full interest on the debt). I don't know this for definite, but his is my theory off the back of discussing this with a few mortgage brokers.

How is your ROI if you don’t mind me asking

Regardless, yield is fairly useless as a measure of the profitability vs capital invested

My mortgage payments are far lower than my rent? I wouldn’t recommend ever buying a property where the mortgage payments are higher than the rent

Thanks Stu! Meant to timestamp it

Yes interest only!

As a former financial advisor I've seen lots of landlords with high leverage literally lose everything in a few months...85% interest only loans , re finance, and if you have 10 or more of these I'd love to see your exit strategy when you have a few voids, a dew tena ts who won't pay, interest rate rises etc...a system like this will eat you alive financially if you don't have a big war chest...

@@pault3705 really interesting points Paul and I actually really agree. Two really important things you mentioned there; don't over leverage, and have a large war chest - theres bound to be some bad times. I personally try not to refinance a property more than once, and ideally keep 25-40% equity in my properties. 1 property I have is at about 45% equity. Exit strategy is also a very important consideration, at some point investors need to consider their timeline for switching to repayment, or paying down the debt on their portfolio. Thanks for sharing.

Have to disagree in this one. The better rates / fees are usually from lenders that are not happy with flipping. Lenders that are, usually come at a higher price. There was so many factors involved in my purchase, and change of strategy, that it wasn’t as simple as choosing a better lender (sadly). However, it would probably be helpful for anyone watching if you could list the lenders you’d recommend below Jo 👇 thank you!

@@JustinWilkins Personally, and from past experience, I would always go with a Building Society - they are usually not as greedy as banks ‼️ At present I buy outright, I don't need to lend - lucky me 😊

@@JustinWilkins I know that we also vastly disagree on Repayment -v- Interest Only mortgage. IO will cost you much more and the banks are laughing their heads off at you if you go this route - speak with your Accountant

Buying cash reduces the return on your cash investment. By using the lenders money he could buy 3 of these for the same cash investment. There’s no right and wrong in property, only what’s right for YOU

@@StupidIsTheNorm and this from someone who calls themselves 'stupid' 😀😀 but yes, you make a very good point - everyone has different ideas, listen to ideas, but do what you think is the right route - obviously cash or finance plays the major role when starting out ... 👍

😂😂