@Saj Hussain With BTL and BRRR, its all relative to the rent you can get vs the mortgage payments at these current rates. If you are investing in an area with cheap house prices and high rents, you will be alright. You just have to do the maths.
Disagree on 3rd. BRRR still works. Aslong as you have the purchass price low. And aslong as you buy something else with the money that you pull out. Wont work on normal small properties. I bought a block of flats 255k. Spent 45k refurb. Revised Value 460k. 205k added. (3 years of apreciation also however) I used 120k to buy and refurb it. After refinancing, i have 176k. (All money out plus 56k) Rents for 2500. Cost me 1000pcm to pull out the 176k on 6%. Initial loan still on 3.4% which is 560pcm. Even if this was on 6% i would still be in positive cashflow, But even if it meant i broke even, i would still make more money on the next one. I have another property im buying, same figures as above but doube the figures. Even with a 100% mortgage i will be making cashflow. Again these are blocks of flats though, not single lets, which i agree would be difficult. You did say there are certain circumstances though i supose! :)
The last 3 years of appreciation will have been a significant profiting factor in your last investment. I don't think you'll get the same appreciation over the next few years. It'll take much longer.
@@dillyraf5422 yes you are correct, however i still have the current market value to work your figures off. If your purchase price is where it needs to be there is still money to be made, cashflow and all money out. Granted not as much cashflow due to the interest. I found a deal where the purchase price is the same per unit as it was in 2020. The next deal will be the same 200k pulled out, 2k cashflow. This is using 100% mortgage too (refinanced old property as deposit) It is double the size, however due to the intrest and no deposit, only make 2k per month. Would be making 4k if put money down and the rates were the same. Just explaining it all can still work. Hopefully interest will be 4% in a year or so. For me as an investor, now is the time to buy as everyone is scared. No competition. Property prices low.
@krisjenkins4167 I agree there are opportunities out there, but the property prices where I am up north haven't seem to have dropped as much just yet, so I'm waiting to find the right deal at those low prices you mention. What I have noticed is that property in good locations at a reasonable price still have a queue of people wanting to buy. The demand is still high in those areas. Ultimately, I think timing the market is important. People coming off low fixed rates this year, who can't afford to remortgage on the high rates for the long term is where you'll see an increase in supply of property to the market.
Point 1- why not increase the rent? if you hand it back to the landlord, won’t he just he will increase rent otherwise he’ll also have zero profit! With point 2: it’s a long term hold? So all youd want (at least) is the rent to break even wouldn’t you?
Sit tight, cherry pick the right properties from mid next year. The market has already turned. Lots of reduced properties, and many unsold at auctions. Prices are still too high. Bit of a waiting game right now.
I agree that none of these work with property prices as they are currently. Possible options, buy at auction, buy cash with discount, adjust strategy from short-term to longer-term approach.
Excellent advice 👌. No alternative to experience in the property world. When the market is jumping up everything works. On the current market only experienced operators can make money by and large. Newbies need a lot of luck. Experience tells you at a glance if it will work. Saj your content is simply the best on the Internet.
@TheSajHussain when I started out in the property world in the early 1980's people thought I was crazy. I didn't have people like you around. You are indeed helping youngsters to get into the property world and most importantly understand it with the top notch people who you have on your podcasts. giving extremely good advice and sharing their experiences with us the public. Very useful information about the property world. Kindly keep up your hard work. May almighty Allah protect you and give you even greater success.
Thank you for the gold nuggets every video Saj. In my opinion in this market I think lease option agreements and commercial to resi for Service Accomodation are potentially the best strategies. They are complex strategies therefore used by the more savvy and experienced investors. Look forward to see your next video on this matter. God bless you.
@@TheSajHussain You definitely need to get Hayley Andrews in she is the Hmo queen. Iv had a meeting with you and she spoke very highly of you. Market is about to collapse and its a buyers market now.
wouldnt the rent from the tenants go up as well though similar to the landlords rent?
Yes, but not by the same rate
@Saj Hussain With BTL and BRRR, its all relative to the rent you can get vs the mortgage payments at these current rates. If you are investing in an area with cheap house prices and high rents, you will be alright. You just have to do the maths.
Disagree on 3rd. BRRR still works. Aslong as you have the purchass price low. And aslong as you buy something else with the money that you pull out.
Wont work on normal small properties.
I bought a block of flats 255k. Spent 45k refurb. Revised Value 460k. 205k added. (3 years of apreciation also however)
I used 120k to buy and refurb it.
After refinancing, i have 176k.
(All money out plus 56k)
Rents for 2500.
Cost me 1000pcm to pull out the 176k on 6%. Initial loan still on 3.4% which is 560pcm. Even if this was on 6% i would still be in positive cashflow,
But even if it meant i broke even, i would still make more money on the next one.
I have another property im buying, same figures as above but doube the figures.
Even with a 100% mortgage i will be making cashflow.
Again these are blocks of flats though, not single lets, which i agree would be difficult.
You did say there are certain circumstances though i supose! :)
Ok no one cares
@@rickp2293 I would imagine actual investors do.
The last 3 years of appreciation will have been a significant profiting factor in your last investment. I don't think you'll get the same appreciation over the next few years. It'll take much longer.
@@dillyraf5422 yes you are correct, however i still have the current market value to work your figures off.
If your purchase price is where it needs to be there is still money to be made, cashflow and all money out. Granted not as much cashflow due to the interest.
I found a deal where the purchase price is the same per unit as it was in 2020.
The next deal will be the same 200k pulled out, 2k cashflow.
This is using 100% mortgage too (refinanced old property as deposit)
It is double the size, however due to the intrest and no deposit, only make 2k per month. Would be making 4k if put money down and the rates were the same.
Just explaining it all can still work.
Hopefully interest will be 4% in a year or so.
For me as an investor, now is the time to buy as everyone is scared. No competition. Property prices low.
@krisjenkins4167 I agree there are opportunities out there, but the property prices where I am up north haven't seem to have dropped as much just yet, so I'm waiting to find the right deal at those low prices you mention. What I have noticed is that property in good locations at a reasonable price still have a queue of people wanting to buy. The demand is still high in those areas.
Ultimately, I think timing the market is important. People coming off low fixed rates this year, who can't afford to remortgage on the high rates for the long term is where you'll see an increase in supply of property to the market.
The best strategy at the moment is to sit on your money.
No it's not your money becomes less valuable as each year goes by
Inflation is devaluing your money
Amazing thanks looking forward to best strategy 👍
I was thinking about getting into the rent to hmo. What 3 or so strategies are working now. Halal methods
One of the best videos so far!
Thank you 💯
Commercial to Residential HMO/SA
Point 1- why not increase the rent? if you hand it back to the landlord, won’t he just he will increase rent otherwise he’ll also have zero profit!
With point 2: it’s a long term hold? So all youd want (at least) is the rent to break even wouldn’t you?
BRR to 6+ Bed higher end HMO’s with on suite in lower value areas with high rental demand + Refinance on commercial mortgage. 👍🏼
Sit tight, cherry pick the right properties from mid next year. The market has already turned. Lots of reduced properties, and many unsold at auctions. Prices are still too high. Bit of a waiting game right now.
Money is to be made in this market, you just have to know which strategy to use. I’ll make a follow up video soon
@@TheSajHussain I look forward to it
I agree that none of these work with property prices as they are currently. Possible options, buy at auction, buy cash with discount, adjust strategy from short-term to longer-term approach.
HI Saj , is Service Acc a good strategy right now?
Excellent advice 👌. No alternative to experience in the property world. When the market is jumping up everything works. On the current market only experienced operators can make money by and large. Newbies need a lot of luck. Experience tells you at a glance if it will work. Saj your content is simply the best on the Internet.
Thank you for always supporting my videos 💯
@TheSajHussain when I started out in the property world in the early 1980's people thought I was crazy. I didn't have people like you around. You are indeed helping youngsters to get into the property world and most importantly understand it with the top notch people who you have on your podcasts. giving extremely good advice and sharing their experiences with us the public. Very useful information about the property world. Kindly keep up your hard work. May almighty Allah protect you and give you even greater success.
Great video. Looking forward to see a video about the strategies which are working right now.
Coming soon😉
@@TheSajHussain Thank you! :)
BTL: £840k, deposit: £440k, mortgage 1k/month, rental: £2700/month. SAJ this is what I have set for the next 5 years. I am pleased with my BTL
Thank you for the gold nuggets every video Saj. In my opinion in this market I think lease option agreements and commercial to resi for Service Accomodation are potentially the best strategies. They are complex strategies therefore used by the more savvy and experienced investors. Look forward to see your next video on this matter. God bless you.
As always, spot on, Saj.
What could work in the current market? BRRR combined with SA, and adding massive value like conversion.
For standard buy to let won't you just raise the rent higher? High demand for renters at the moment.
What about new built, is that good move atm??
I am sure one that works would be Rent to SA.
Great video, looking forward to next video on best strategies in current market
Thanks! Expect a new video very soon😉
Interested
Thanks Saj.. great video. Waiting for the other part of the video.
We’re working on it. Will be out soon
Hi Saj can you do best profitble strategies video? Would be great 👍🏼
Yes, definitely 💯
Looking forward to see the next video
Soon😉
Great video again. Keep up the Hard Work
Thank you! I’m working on a follow up video to this. Will show you the best strategies for the current market in my opinion
@@TheSajHussain You definitely need to get Hayley Andrews in she is the Hmo queen. Iv had a meeting with you and she spoke very highly of you. Market is about to collapse and its a buyers market now.
Good analysis !