How to Buy a House Cheap in 2024 (Samuel Leeds)
Main Theme: This video by Samuel Leeds outlines a strategy to buy a house for a low initial investment using the "Residential to Buy-to-Let" method.
Key Points:
Problem: Saving for a 25% deposit, plus stamp duty and fees, makes property investment inaccessible for many.
Solution: Residential to Buy-to-Let:Buy a property as a first-time buyer to avoid stamp duty.
Utilize 95% Loan-to-Value mortgages available from major lenders for first-time buyers.
Example: Buy a £100,000 house with only a £5,000 deposit.
Strategy Execution:Purchase a property needing refurbishment (new kitchen, bathroom, etc.)
Refurbish using a personal loan or own funds.
Live in the property for 2 years (due to mortgage restrictions).
Benefit from natural capital appreciation and forced appreciation through refurbishment.
After 2 years, get a new valuation reflecting the increased value.
Options after 2 Years:Sell the property tax-free as it was your primary residence.
Refinance with a Buy-to-Let mortgage at 75% LTV, potentially recouping initial investment.
Secret Twist: Refinance with a Furnished Holiday Let mortgage, enabling higher rental income and potential tax benefits.
Case Study: Elliot successfully used this strategy, achieving a £42,000 profit after a 12-week refurbishment.
Call to Action: Attend Samuel Leeds' property course to explore various creative property investment strategies.
Important Quotes:
"This strategy is called residential to buy to let."
"When you're a first-time buyer and you buy a house to live in you don't pay any stamp Duty."
"...you could put down as little as £5,000 as a deposit and you could get the mortgage provider to put in £95,000."
"...you're going to buy a house that needs work done to it."
"...you're going to turn it from the worst house in the street to the best house in the street."
"He refinanced it on a furnished holiday let mortgage..."
"The people that succeed in this business are the people that get creative."
Disclaimer:
The information presented is based solely on Samuel Leeds' video. Further research and professional advice are recommended before making any financial decisions. The viability of this strategy depends on individual circumstances and market conditions.