So what happens when the economy collapses, because it's going too, 30% of the workforce lose their jobs, your tenant is one of them and can't pay their rent that you use to pay your mortgage? Her system worked for the last 10 years but if you do this now you will lose everything
Personally, the house I live in I want no mortgage on it, I want to play it safe. Then have a LTD company for taking out loans and playing this game, that way if it all goes wrong my home is safe
Very sensible - especially in such a volatile world. And when you pay it off open an investment, mmoney market or high interest account - THAT'S safe income that is protected and insured. Swinging dick tenant is not.
how you going to get a loan from a LTD company? you will have to show your bank statements that your company is doing well. And if all goes wrong you still have to pay back the company loan which a director is liable not just the company.
@@ayres6727No, you do not need a bank statement etc. for a limited company to get a loan. A fresh off the press limited company incorporated yesterday can get a loan today, so long as you have a minimum of 20% deposit. Yes, as a Director, you will be liable for the loan, so if it all goes pear shaped, the lender will come after your personal asset(s). Part of the loan application process entails signing a document to that effect.
Such an old view in the modern climate, your interest rates are so high, so capital repayment is limited. You pay tax on income now, so unless you have a lot of cash to buy a 2nd house, youre borrowing at high rate. This women is absolutely clueless. Has she just been sold to on a property cause!
I don’t understand the premise of using the money from the inflation of the house price. Take the example: if you buy a house at £200k and it’s now valued at £300k, you still have a mortgage of £100k, you remortgage and release almost the full equity from the house. You’re now at a LTV of 90-95% so the interest rate is worse than what you had, plus it’s on a larger amount of borrowing. You take your money from releasing funds and buy another house, (as a landlord, who doesn’t get relief on mortgage payment interest) and you have 2 properties with sub-ideal interest rates and the risk of them dropping in value. So let’s say your property prices now drop by 25%, you now have negative equity on your original house and potentially the same on your rental? I might have misunderstood the idea here??
Do ypu remembet the crash of 2008. Well, people were doing just what you're advising here, and this is the reason why the economy got destroyed. People walked away from their debt responsibilities and ruined things for everybody else. Now, if everybody listened to you, the same thing will happen again. Have you ever heard the saying "If we were all bus drivers, there would be no passengers"
The idea is the rent you receive is more than the mortgage payments. This is risky of course as central banks can increase mortgage interest rates on a whim. You want a pretty large buffer if you're going to play this game. It's much safer to simply invest in the stock market, which historically outperforms the money you'd pay on mortgage payments.
Yes 💯 agreed! But!! Not in this day and age inflation is to high house prices too high, interest rates to high, and when the Bubble burst 💥 and it will developers who are buying during this time will be massively over paying on houses that are not worth what they originally thought! Just be patient people!
Here's the thing you think you are sitting pretty because you have loads of mortgages from the first one, years ago the morgage rates went to 13% we nearly lost our house, if we had more than one property we would have lost both of them or our empire if this is how you see yourself building.... Now then you have only seen 0 percent mortgages up to say 2 percent locked in. If like me you struggled for 15 years until it got better because let's face it buying to let only works if the tennant pays and doesn't smash your house up!! My nephew did what you are doing and got up to 4 houses and it was a nightmare with tennants so much so in the end he had to sell up. So no it doesn't work. We paid 500 a month for our mortgage then when it was paid we could put that 500 in a pot so every couple of months you can go on holiday, make changes to the home buy a car , and not worry about interest changes because 1% change is for some people getting that food on the table or not. So if it works for you great just hope it never gets back to 13% interest rates which in todays climate is a possibility, how much are you paying a month now? All that rent money is taxable too as income so not so shiny rosy as some people think and people are going homeless due to greedy landlords raising the rent. So my advice is pay off your mortgage as quickly as possible as you can do a lot with money in your pocket 😊
So when you've paid off that mortgage, where are you getting that "extra £500" from? Working? If you never use the equity in your home, you're working for the rest of your life.
@@RossH1909 also forgot to mention when you sell a house that's been used for a business its liable for aassive chunk of tax because after all mr tax man wants some of those profits, and its 28% in the Uk because i'm sure over the years your income from rents is more than 50k a year especialy with more than one property.
@@RossH1909 no because you get a pension due to the fact if you pay over 25 to 30 years and move at least once by the time you have finished you're a pensioner etc
@stevirobbo I think you're missing the point here. Using the equity in property, even with the tax liabilities means you're earning an income right now, not in however many years you're eligible for pension. There are people who have the risk taking/ money earning mindset and there are those who don't (the vast majority). I get that, it's just society.
This is disturbing advice. Pay off your mortgage sooner than the bank or building society want you to pay it off. In this way you will save a fortune on interest rate costs. Many people who had mortgages at very low rates are now finding out the truth the hard way.
Yes of course pay off your mortgage - as you are paying interest on it which is lost money. If you can find a savings account which offers a better APR than the APR on your mortgage then fine - but if not then don't. Using the housing market as your pension fund is madness for a small person as you cannot ever compete with the larger companies.
The Negative Comments make me laugh, uneducated people criticism of someone trying to educate them, yes to make money but she is being clear with the concept, Which is paying of low interest mortgage debt whilst increasing high interest bad debt is Madness! Using equity at low interest rates to invest or start a buisness is better than taking out higher interest loans or worst still doing nothing with your money and letting inflation erode it. The only bit i would question is if you release equity from your primary residentual this is normally in ratio to your income, so how do you afford the higher mortgage and prove it to the banks prior to you investments producing the higher yeald to cover the higher payments?
Low interest debt??? Have you been asleep the last two years ??? Rather than insult people and mis-label them as uneducated some of us are actually speaking from experience. If you wanna give this dodgy saleslady all your money you go ahead but don't call us uneducated when we're not
@nickrougier8014 historically interest rates are low, also if you read what I said, I compared high interest rate debt, with low mortgage interest rates. Some people's comments show no or very little "property education" and I'm just saying why out of a limited knowledge of the subject try and be so negative and shout down people with an alternative view.
She knows her stuff and well done for a clear explanation, so many negatives here, but they are the nonrisk takers and want to play it safe. I have always been a risk taker and its paid off really well for me. It's getting harder and harder to borrow money these days and banks that like to say yes on TV adds always say NO . So use your silent equity and make it work for you.
(......"and it's paid off really well for me". ) Yes, yes, of COURSE it has, thats why you've made up a fake account and gushed lyrical over this Guaranteed get rich quick scheme....one of the directors, are you? If it's SO good, what are you doing here trying to push it for?🙄
