is this still true today with interest rates 5.25% +. A 5yr BTL fix coming to an end in 6 months and a new fix 3 times higher than current. What to do??
Hi Abi, What about even if we got equity in property.but in recession all that equity plus property will be sold for peanuts in auction because in recession rates will go up and we will end up no profit from rent and no buyer will have that much cash so we can’t even sell it and can’t even run it and end up loosing the property for peanuts prices at auction when bank reposed
Property prices since time began have gone up on average 7% per year, the bank of England has said they are not concerned about people in negative equity. I'm not 100% sure of your question? Property is a safe bet and prices are due to potentially reduce by 5% next year, this won't have much impact with the last 2 years property prices raising 24%. Recession = Opportunity.
@@abihookway6399 With inflation the real value drop will be 50% A good investment for cash buyers only. I wouldn't use the Bank of England as a berometer here. Negative equity is already happening it will be carnage. By 2025 the market will have dropped 30 to 50 %
Our worry is if interest rates gone upto 14 like in history the rates stayed most of the time in last few decades high as compare to last 5 years they were low. But if this happen again then all portfolio will be destroyed.is property still worth it ?
I borrow money to make money Property offers leverage. Gold, shares, fine wines, classic cars don't. Therefore if you are buying a 100K property a lender is willing to lend you at least 75% That's 75,000 of their own money in a property. How cool is that. That gives me confidence that tells me something about how good an investment property is if a large institution is prepared to lend me 75000 on a 100K purchase. So once I got my head around the fact that I make money on property I invest in then surely it make sense to borrow the max ( as long as I get my cashflow and contingency funding right).
No it wouldn't. This business model hinges on low interest rates and not a large drop in property prices. We could well see rates in double digits and the long term value drop in property will be an average of 30% by 2025.
@cliveallen7778 No that is not a sensible investment strategy. You will from now see lending becoming harder ,the value of your asset plummet and interest rates go crazy. How you can say it is better to Invest in property than shares is deeply wrong. You can get a huge return on dividends from say Coca Cola and these will always pay out whist protecting your initial investment barring the globe being hit with a nuclear bomb and Coca Cola vanishing. Gold always holds its value in a currency crisis or collapse, Briks are set to be the world reserve currency and it is Gold backed way safer than the US dollar or the pound.
Hi Abi and Steve, so interesting. When you said that you can get a mortgage in a limited company if you are any age and you mentioned being 12!, I know Paul spoke about this but I don't know any bank who will give a mortgage if you don't have an income and as you won't have an income when you 12 or when you first purchase up until the point you get a tenant or start a FHL a bank won't lend. I love your videos Abi and its so nice to collaborate with Steve too. BTW when Paul said his son purchased a property at 12 I assumed its because his parents put the money up.
Hi if you are using a BTL mortgage in the LTD company, they are more interested in what the property will do and income from the property than yours. They will look at directors and there is criteria for this. Pauls son lent his money from his Nan who invested and he did buy refurb, refinance and paid his Nan back. Have you been on our 2 day wealth through property event, this will massively help you.
Interesting video and i expected you would say interest only mortgages Could tell us were you can locate the lowest interest only mortgages ? Can you explain what caused the banking crash in the first place, was it political legislation that did it or was it something else as its never really been explained properly ?
Hi, the banking crash was caused by bankers in America over lending to people who couldn't actually afford the properties. A really good film to watch is the big short. They then stopped lending which caused prices to decrease. Legislation around this has been tightened to stop. We are in a housing crisis not enough houses and the population is rising quickly. its supply and demand. Best mortgages rates you can find through any good mortgage broker, thanks for watching.
is this still true today with interest rates 5.25% +. A 5yr BTL fix coming to an end in 6 months and a new fix 3 times higher than current. What to do??
3:20 - can you give more information how to get the mortgage in a limited company?
Thank you guys 💕🙌🏽
Thank you for watching 🙌🏻
Absolutely love this topic 👍🏾
thank you for watching :)
Hi Abi,
What about even if we got equity in property.but in recession all that equity plus property will be sold for peanuts in auction because in recession rates will go up and we will end up no profit from rent and no buyer will have that much cash so we can’t even sell it and can’t even run it and end up loosing the property for peanuts prices at auction when bank reposed
Property prices since time began have gone up on average 7% per year, the bank of England has said they are not concerned about people in negative equity. I'm not 100% sure of your question? Property is a safe bet and prices are due to potentially reduce by 5% next year, this won't have much impact with the last 2 years property prices raising 24%. Recession = Opportunity.
@@abihookway6399
With inflation the real value drop will be 50%
A good investment for cash buyers only.
I wouldn't use the Bank of England as a berometer here. Negative equity is already happening it will be carnage. By 2025 the market will have dropped 30 to 50 %
Our worry is if interest rates gone upto 14 like in history the rates stayed most of the time in last few decades high as compare to last 5 years they were low.
But if this happen again then all portfolio will be destroyed.is property still worth it ?
I borrow money to make money
Property offers leverage. Gold, shares, fine wines, classic cars don't.
Therefore if you are buying a 100K property a lender is willing to lend you at least 75%
That's 75,000 of their own money in a property. How cool is that. That gives me confidence that tells me something about how good an investment property is if a large institution is prepared to lend me 75000 on a 100K purchase.
So once I got my head around the fact that I make money on property I invest in then surely it make sense to borrow the max ( as long as I get my cashflow and contingency funding right).
No it wouldn't. This business model hinges on low interest rates and not a large drop in property prices.
We could well see rates in double digits and the long term value drop in property will be an average of 30% by 2025.
@cliveallen7778 No that is not a sensible investment strategy.
You will from now see lending becoming harder ,the value of your asset plummet and interest rates go crazy.
How you can say it is better to Invest in property than shares is deeply wrong. You can get a huge return on dividends from say Coca Cola and these will always pay out whist protecting your initial investment barring the globe being hit with a nuclear bomb and Coca Cola vanishing.
Gold always holds its value in a currency crisis or collapse, Briks are set to be the world reserve currency and it is Gold backed way safer than the US dollar or the pound.
Hi Abi and Steve, so interesting. When you said that you can get a mortgage in a limited company if you are any age and you mentioned being 12!, I know Paul spoke about this but I don't know any bank who will give a mortgage if you don't have an income and as you won't have an income when you 12 or when you first purchase up until the point you get a tenant or start a FHL a bank won't lend. I love your videos Abi and its so nice to collaborate with Steve too. BTW when Paul said his son purchased a property at 12 I assumed its because his parents put the money up.
Hi if you are using a BTL mortgage in the LTD company, they are more interested in what the property will do and income from the property than yours. They will look at directors and there is criteria for this. Pauls son lent his money from his Nan who invested and he did buy refurb, refinance and paid his Nan back. Have you been on our 2 day wealth through property event, this will massively help you.
@@abihookway6399 Hi Abi, can you tell me a bit more about the course, where and when is it and how much please?
@@lhg2353 Hi! Would you like to call Carol on 07512 306 201 and she will be able to give you more info :)
Interesting video and i expected you would say interest only mortgages
Could tell us were you can locate the lowest interest only mortgages ?
Can you explain what caused the banking crash in the first place, was it political legislation that did it or was it something else as its never really been explained properly ?
Google
@@financiallyfree This wiill not help people Pipz sorry
Hi, the banking crash was caused by bankers in America over lending to people who couldn't actually afford the properties. A really good film to watch is the big short. They then stopped lending which caused prices to decrease. Legislation around this has been tightened to stop. We are in a housing crisis not enough houses and the population is rising quickly. its supply and demand. Best mortgages rates you can find through any good mortgage broker, thanks for watching.