I did this 8 years ago and bought my first 2 rental properties with the money used as the deposits etc. I have never looked back and this has given me a certain amount of freedom in my life. It really is a no brainer if you know what you are doing.
How much deposit did you put in your first home and how much did you used for the next property. Also, do you have to wait for the remortgage go be able to use it
Totally agree with you, I am not risk averse however my wife is but the defining moment was when I asked my wife to stand outside and look at our house and I told her to imagine that each brick was a £50 note, I explained that it is our money but like the bricks we can see we have them but we cannot remove them or use them for anything else so we may as well use somebody else’s money to be tied up and locked and release our money to do something with. We are now landlords and just incorporated a property company ready to expand our portfolio.
But you need to consider one major thing, interest rate, right know interest rate are low so everyone make profit from rental but soon as it hit 5/6/7% your margin shrink, that why I alway belive your own personal home just be debt free, one asset that you don't have to worry about, of rate go up if you loose your job ect
Although interest rates have been low since the credit crunch of 2008 and the economic system is now aligned to low interest rates I do think that it’s easy to overlook the risk of interest rate rises in the future. Factors beyond our control can change things natural disasters, pandemics etc! I choose to build a portfolio with a slightly greater equity cushion! Life being all about balance etc!
Is it an asset if it losing you money every month? are interest rates going to rise to 5/6/7? What about cap growth? Even though your cashflow will shrink the capital growth maybe worth it! Some many things to think about! I LOVE IT :)
@@JamieYork I think it’s like many things in life, it’s about balance. This is a side hussle for me as you would call it. So I can afford to be conservative but not as conservative as to keep cash in the bank as it’s losing value with all this QE. A couple of years ago we’d have never predicted a pandemic so the spectre of rising interest rates isn’t implausible (the world is less than certain and often beyond our control - though large rate rises are now unlikely) so whilst I accept all the arguments about capital growth and cashflow I’m personally trying to strike the balance with a 50% equity/leveraged portfolio with some owned properties and some on 25% down. Perhaps not the fastest gain but then I remember the casualties of the credit crunch and the fall out of Black Monday. “Slow and steady wins the race as the old timers say”
Currently moving to a new lender, taking an extra 50k out and switching to an Interest Only mortgage for a couple of years. This will fund our 3rd BTL. The rental income completely covers the now reduced outgoings. The money I was spending on paying down the mortgage will be ploughed full force into a Stocks & Shares ISA every month. I only need to beat the interest rate of the mortgage to come out ahead.
Perfectly timed, mate! Have been tossing up whether to go down this route, and decided to pull the equity from my home. Good to see this video aligned with my thoughts.
We are currently remortaging our house after 5 years fixed to release 55k equity to buy our first btl cant wait for this to all start will be 30 next month
Did this to add to our existing portfolio last year and purchased 2 properties, seeing clear fund on in excess of 700 per month, so “It’s A Great idea. Also injected the money into a company as a director loan so are able to draw the fund out without tax later, also accountant set up as a loan so offsetting profits against interest payments.
Great vid. Remortgaged my home 12 months ago and pulled out £390k. Big mindset challenge as always looked to pay it off. Now have 3 BTLs, 1 5 bed HMO (converted from 3 bed house) and 1 luxury holiday let which is due to go live March. I took out 2 year fix - wish I’d known about drawdown mortgage - so mindful of renewal next year. Still challenges me but I think I have done the right thing!😅
Already have BTL properties but I also have a substantial amount of money in my house now owned outright, I fully understand all the information but I am trying to expand by using the BTL properties and remortgaging them in order to pull money out, I fully agree this is a slower route to success but already financially free so in no real rush, But fully agree borrowing money currently is very cheap and if I had zero BTLs And I was not happy at work, I’d be borrowing against my house immediately, absolute no brainer, great video as usual 👍🏠
Hey, I totally agree with you. And Jamie. But at a certain speed,I feel I need to pay off my residential and play with the BTL's. But then again, that's how it all started. Releasing equity from residential and investing in BTl. The best loophole since compound interest
Just started with APG last week and currently have your team looking for my next investment property. Toyan is looking after me very well so far, nice guy that one. Fingers crossed it all goes well and this is hopefully the first of several.......
@@JamieYork how do I start? Looking to use the equity in mine and my parents house?? Parents want to transfer the property over to me so i can start an investment portfolio
Hi Jamie, this is video i was waiting for, in fact it cleared my doubts that i have chosen right way, as i used to think as you say "best to be debt free" but seeing a lot of people i have worked for who have proved it not bee the best strategy at all, as they are instead of siting on finances using them to built their portfolios. 😀
I think this should be taught in every school in the country! Being an entrepreneur should be taught as part of curriculum. 100%. I just wish I knew what I know now about money 10 years ago! Knowledge is invaluable.
I paid off my mortgage early because interst rate was at 17.5% lol. I then carried on saving and earning interst on the savings until I could buy another house in cash.
Bought my house 8 years ago, paid my mortgage off 4 years ago and had I listened to advice from peers could have invested in BTL’s at the point in time Could have bought been much further down the line in my BTL journey!!
APG Hello Jamie.I’m 59 and Living in Tokyo.I have a house near Norwich and a student flat,which I bought last year in Bradford. However I would like to continue to build my portfolio.
Even though I’m currently on my 3rd BRRR, I’m still considering refinancing my residential so I can “potentially” try and double efforts with building my BTL portfolio. But understand when you mentioned about “cash elsewhere” aspect and technically I do have it, but only when the next property is ready after refurb etc So still an indecisive donkey at the moment 🐴 (no emoji of donkey hence horse)
Great advice Jamie just getting into property and looking to purchase property for BTLs by using equity done my figures on some property am looking at and it’s a no brainer
Hello, no one from people who are doing business with rentá houses don’t say best way to get 25% deposit for first BTL property. I bought residental house 1 year ago and even if value is higher now by £35.000 I can take just £13.000 equity because second property mortgage is on base of your job income instead of value of property. Buying 3th, 4th, is quiet easier because of Value of house + rent but get second house what is BTL property is harder if you don’t earn £40.000+/year :)
I started last year bought a holiday let I have just recently bought a four bedroom buy to let which is almost ready to go I’m just waiting for a butchers shop with a flat above This time next year will be millionaires
When I saw this video I actually wondered if I’d inspired it but maybe not then if a few people have just generally asked this question. Reason I wondered is that i read your APG brochure and briefly spoke to your team about the service but they advised would be better to have a more detailed call once I have the cash available, and I won’t have it until next October when I remortgage - annoyingly we’re locked in on a 5 year fix till then and costs of remortgaging early are like 6/7 grand so hardly worth it I don’t think. Either way safe to say I will defo be pulling out equity when I can! And would be very hesitant in future to fix for too long to avoid this same scenario again down the line. One thing I wasn’t clear in with your APG service was what the ongoing service looks like, ie do you guys work as the management company and take a cut of 10% or something a month? Guess those are more questions for the next phone consultation in 12 months time though! Cheers for the videos
Cheers James, It doesn't sound like a good idea to be paying 6/7 grand to get out early! We don't take a 10% cut as it is all part fo the fee included!
If I had suitable equity in my home I would gladly refinance it to fund property investments; that to me is a no brainer. I’m not old enough to qualify for a lifetime mortgage but do qualify for interest only residential - so that would likely be my chosen route. I like the idea of owning my own home but racing to become mortgage free at the expense of investing sounds dumb to me.
I've had this option in the back of my mind, thank you for the information about different mortgage options, very useful. Currently looking for forth BTL, after that would need to find more funds so this is an option.
I'm looking to take equity out of my property after my fixed term ends in may. I have around 70k in equity but looking to take around 40k to get into buy to lets or flips.
Hi, new subscriber here. I have a home in Metro Atlanta Georgia that I would like to eventually sell. I would like to use the net proceeds from the sale to purchase a new home all cash. I would like to make sure that I am correct, and just this easy or have I lost my mind... - I only owe $80k. I really want to pay this off so i plan to double my payments. - The value now is slightly under $350k. -I would like to wait until the home appreciates more before selling. -When I sell, I would like to close on both properties on and about the same time. -I do not want any loans at all. Scenario ( 1) in my mind: the property appreciated to $600. K., buyer purchase property at that price. The lender is paid off. I collect the proceeds and purchase my new home all cash. OR Scenario (2) I pay off the $80K.and rent the home out. Again, the home is valued at $600K take from the equity and purchase my new home all cash. I think that I would need to pay the amount that I borrowed back, right? Thanks.
Great video Jamie, I’m thinking of pulling out some equity to start investing in property. I just need to convince the Mrs. A few of your videos will help do this I reckon. I’d be interested in talking with you guys about how you could help me. Please get in touch. APG
I have a bit different situation. We bought second house for cash , way below market value because it required some works to be done inside. After all renovation the value of this house increased significantly. We will rent it out. The question is, can i use full equity of that house (remember there is no mortgage on this house) and use several parts of it as deposits to buy few more houses in order to rent them out as well?
Dear Jamie. I am looking for a video from you published. What would be potential impact on the existing landlords as corporates are gearing up for purpose "built to Let" When are they actually flood the market What qty House are built How the rental price war is going to impact the LL's Will that leads to BTL property prices stagnant Obviously no one predict the exact future but your views please
Jamie. Absolutely love the channel. Commented a few months back on a 19% roi investment opportunity that you says go for! I got signed and sealed and now rented out problem is due to market circumstances I am now hesitant and I am trying to buy of higher quality and newer build due to epc ratings and general maintenance simplicity. Should I hold off on deals for time being as market is high or keep buying. Thanks for the advice. You really have helped me so far. Kind regards
All good if your personal income is high but if its not you find yourself in my position. 300k equity and unable to access it as I'm at the limit of borring for my earning.
APG - got house on mortgage on fixed 5 years... 2 years left. We want to get into investing in houses. Want to remortgage or work with equity (totally green in this topic unfortunately)... Got some money in the bank. Not too much which may be a problem. Looking for sb trusted who will help us understand all of this and help to work all the numbers so we know everything that should be taken into consideration. We are Polish which makes it slightly harder to understand (its hard in polish as well) :):):):) If you have solution for us, please let us know. Stay safe.
Great video and interesting views again Jamie. 👍🏻 I’ve been umming and arring about this, I like the security of being mortgage-free for my residence. I have 3 BTL properties earning a good income, but if I mortgaged the home, which has about £600k equity, (so could release maybe £300k?) I could leverage the heck out of it and buy another 5ish properties. But in this market it seems to be a rash move. I am tempted to wait until the seller’s market cools before doing this. I was also thinking should I wait until my fixed rate mortgages are up in 4 years, at which point I should be able to refinance and release about £220k out of them because of capital growth. Then I could buy another 3 or 4 properties with that. It’s a quandary, and you’re right. It’s all about attitude to risk. Opinions/thoughts anyone?
Do it. Consider moving to an Interest Only mortgage if you can use that kind of capital more productively. Keep the rental income to one side and pay it off later.
Jamie, your saying to use the equity for deposits, would you then mortgage on top of the deposits? and if so would you be doing it with the same firm who released the equity or can you use someone else ?
I understand this only work if you don’t have any share equity (lift scheme - in scotland). I would have to pay out the equity first before follow this path?
I've just cleared my mortgage and own my home cash free. Would let to buy be a good investment for my retirement longterm? I'm currently 37 and dont know what to invest in going forward :/ I currently have 40k savings, my current home is in a rental area and would yield good constant rent. Going by what properties on my street yield.
Hi Jamie loving your videos.. I'm in a position where I have a residential property that I own and currently living in.. I am in a 5 year fixed rate plan and have another 2 years left before i remortgage.. I'm now looking into buying my second home (one I'm looking to live in forever)..what advice can you give me based on my current position I'm in and what's the best way to take out capital in order for me to purchase my second home?
Hi I've got at least £140000 equity in my own home. I'm looking to buy my first buy to let. I have the 25% deposit but need an extra £15000 to cover the whole deal. I guess this seems a relatively small risk to obtain my first buy to let? Many thanks
Thank you, Sale price £110,000 Mortgage £825000 Monthly interest £145 five Yr fixed, no fee. Rent pcm £480 Very little work needed. Plus equity release from my own home of no more that £15000 to cover remaining stamp etc. As I'm new I can't work out if it's worth while. Also as no improvement needed I'm worried I won't be able to refinance btl and keep going. Thank you
APG - I would be interested into this. I got my builders team and got limited SPV company. As average we buying 2-3 properties a year, so far I am doing everything myself, but as we growing and I am working in multiple places, struggling to source good deals sometimes (mainly due to time shortage). I sent couple messages on your portals Jamie, but nobody replied to me :)
Hi, What about releasing some equity whilst porting?? I have had an agreed sale on my property for 295K. My current Mortgage balance is 130K and I am on a 10 year fixed ending in 2029. I am looking to buy another property for 295K too and at the same time I want to release some equity I have built up. More precisely 35K. I know my mortgage is portable (lender told me so) with the same rate but What it's unclear to me is whether there's going to be a new rate in place as a result of this equity release etc or 2 pots etc
Two minds..... Sell my residence completely and rent and use 100% equity or remortgage pulling out 75% and still live in my current residence....... What a conundrum ????
Mortgage lenders even for buy to let like you to have a residence with a mortgage on it. You'd get better offers with the 75% some won't even lend for buy to let to non home owners. Why not speak to a mortgage broker for guidence?
@jamie York Thanks for all the help bro, I have a decent savings with access to OPM, what would you recommend as a FTB in real estate, would buying a 400k property be more profitable from the 5% deposit than having 4 100k properties etc?
APG. Hi Jamie, I’m brand new to property investing but am just about to free up £50k of equity and would love some advice as to how you could help me invest it wisely and safely. I’m particularly interested on your guaranteed returns of a minimum of 8%. Look forward to your reply
I am currently looking into releasing equity. I am 54 with 7 years left on my mortgage. Is it best to do a basic remortgage? I have looked at lifetime mortgage for over 55's but i don't like the idea of giving up my house when I die. I would like my daughters to keep the house to rent.
Jamie am I right in thinking Banks don't let you remortgage to buy another house? And do people usually get round this with some kind of home improvement loan ?
Hi Jamie, great video. Can you get a mortgage which is buy to sell (flip)? Not BTL I own my own property and therefore to flip properties, I don't think I can use a BTL mortgage as I wouldn't be putting a tenant into the property. Is this correct? I appreciate you may not be able to give full financial advice, but do you know if buy to sell mortgages are common and available? Thanks
If you had a good plan how to invest the money would you go for 100% LTV on your own home? Or is it risky because bank might ask to pay a certain amount of money bank in case the value of the property drops? Is the mechanism same like with investment mortgage?
Great question. All debt comes with an element of risk. My personal opinion is that is a VERY unlikely risk that could come to fruition due to a multitude of reasons (maybe I can do a video around this 😊)
Hi Jamie I have a buy to let property and my home that are both mortgage free and I want to release some equity from my buy to let in order to purchase another how would I go about doing that?
If it sounds too good to be true it probably is. I doubt this would be a good idea unless you also had at least three months mortgage payments hidden away for each of the properties you own. Tenants leave, boilers break, floods happen all manner of shit can happen that will put you in dire straits without a safety net. Anyone who did this in 2021 is probably sh1tt!ng bricks now in 2024 with 6% mortgage rates. On three properties? Who is going to cover the shortfall, the renters?
Hey, was wondering if i use help to buy for my first house, can i air bnb it? if not, in what situation can i, second, is it possible to own a buy to let in a limited company after i have a house in my own name with help to buy
Hi Jamie! Is there an age limit to this in the UK? We are thinking of doing this to start our portfolio of properties but I saw somewhere that you have to be min 55 years old? Thanks
Love these videos JY! I got lucky with my place, got it for just under 600K back in Dec2020 when everything else on my street is 650-675K. We've done a lot to it since then and got an agent round to value it, they've quoted 675K. It's been over 7 months since we've moved in and i want to remortgage and use the extra money to buy a 2nd place but my lender said they'd only remortgage at 620K which wouldnt release enough for us to use as a deposit to buy a 2nd place in the area we want...why is there such a big difference in lender vs estate agent values and what can i do to get the most from my remortgage? should i suggest my lender comes round to visit the property rather than doing a desk valuation?
You don’t need to do that to get into BTL in a limited company! But you would as you’re pulling out equity which would naturally pay off the government
Thanks! Would be great to work together! Head over to www.aspirepropertygroup.co.uk/?RU-vidOrganic and fill in your details, and a member of my team will be in touch! 😊
Thanks! Would be great to work together! Head over to www.aspirepropertygroup.co.uk and fill in your details, and a member of my team will be in touch! 😊
