I’m 20 and I come back to this video every so often to remind me that there are ways to get into property without a huge investment. Love it man and I want to get into it all after a year or two after I graduate
Absolutely amazing video Justin and I love the breakdown and the comparison against the ISA. I'm looking at potentially buying my own buy to lets and this video was really helpful mate.
Absolutely! Location is first priority, and then work out the numbers. In this video though, I had already bought the house and secured the tenant - so the numbers were the most important thing at that point 👍
Justin Wilkins I remember my 1st I was so excited and great price (I thought ) the 1st day I was there working the neighbours came out and started a fist fight with each other and I thought ‘what have i done’ now I look before I leap 😂.. good luck to yourself and I’ll stay tuned to see you progress 👍👍 cheers Pete
Glad I found your channel man! I'm a similar age to you, just started my 30's and looking to get into property after having my own business for 3 years. I'm also looking to set up a second LTD Company to run it all through so your content is exactly what I needed!
ZunairKler Thank you for watching, pleased it’s been useful! Connect with me on Instagram @justinnwilkins and drop me a message if you ever have any questions!
I stumbled across your video whilst watching a totally different video. I am actually in the process of purchasing my first BTL property in Liverpool. You have a new subscriber. I will be checking out more of your videos. Thank you for this video.
Hi, thanks for watching and subscribing! Great to hear you are currently buying a property in Liverpool, good luck with it. Lots more videos to come regarding Liverpool in the upcoming weeks.
Nice vid Justin especially breakdown of costs but you’ve still left in quite a lot of your own deposit money haven’t you. Will you be looking for your next property that needs work so you can refinance it straight away and get more of your money out to recycle ie by using commercial mortgaging?
You explained everything so well and so clearly thanks Justin! I need to check out the rest of your videos but if you haven’t done so yet, I would love for you to do the video on setting up the limited company! x
Buddy... that's not profit. Assume that every 20 years the boiler, roof and amenities (fridge, freezer, washer, dryer etc) will need to be replaced. IKEA furniture lasts 5 years, mattresses for 10 and every 40 you'll need to fully renovate. You should be putting at least £1200 a year away until you have £20K reserves and keep increasing these thresholds with inflation. You can place your cash reserves into an ISA or other investment vehicle and skim the top if you like. Margins look incredible in the North, I'm jealous, you'll still be able to draw a profit from that. Remember that people say "the only time a rental makes you money is the day you sell it" for good reason. The rent you charge will be unlikely to beat a fixed rate ISA after you factor costs, but those are also a scam, you're really looking to beat inflation (assume 3% pa). A 1.2% fixed rate ISA is therefore loosing you 1.8% of your money every year, it's a terrible investment. The real investment in a rental property are the mortgage payments that are magnified every time the house price rises.
Thanks for watching and I always appreciate different opinions. Whilst I do agree that not all of it will be profit due to maintenance costs, voids, and boiler. The property is not furnished, so no cost there. And I am banking on using the cash flow and (potential) future capital growth to help fund refurbs and portfolio growth. I do agree most the money will be made when mortgages are paid off or the property is sold. I don’t agree that ISAs are a good investment, most just about cover inflation. Appreciate you watching 👊🙂
Good video. The only thing I would add is that when buying remotely I think you should be adding the cost of your travels to view properties. I imagine several visits are required when scouting an area and the costs can easily accumulate to a couple of hundred pounds especially when trying to buy BMv as these properties take longer to find
Hi Jim, good suggestion to work out the cost of the travel and hours. I certainly have a spreadsheet which I use to keep track of it. However, I personally don't think its something I would put into my profit calculations. Cheers for rwatching.
Good job mate, I did the same in my 20's and still doing this into my 30's, keep going it does pay off. From another south coast lad working in London :)
Some things I think should have been mentioned: - Is it fair to compare something tax free (ISA) to an income you get taxed on with rental? - Cost of maintenance priced in (£50/month) - Cost of void periods - Accountants cost to submit tax return (unless you are doing it yourself) - Mortgage is likely to be interest only (people are mistaking this for a repayment cost) - Annual boiler inspection That said, I think it is a good buy for sure. Well done man. I think you should be comparing it to not a fixed cash ISA though. An index fund that returns 7% (mimicking the S&P500) is fairer.
Hi thanks for watching and for your comments. I think it is fair to say that it should have been compared with a fund or fixed rate account, rather than a tax free ISA - the reason behind this comparison is that the average Joe often has tens of thousands sitting in basic rate accounts. Void periods and maintenance are things I wish I had factored into this video... but I will be sure to make a 12 month review video showing all the costs. Accountants fees - it wouldn't be fair to show this as I split my monthly accounting fee between several income revenue streams. Although I guess I could have split it up appropriately and deducted £10-£15 per month from the income. Yes the mortgage is interest only, and I had hoped that was clear but I may well add in a banner if thats not obvious. Appreciate your comments and thanks for watching!
BeAtLeBoAr also add in costs like gas safe certificate, electrical compliance, buildings insurance. I would say a return of 6 to 8 percent is more realistic in the long run.
I like the way you have explained each of the purchase costs that you incurred to buy your investment property in Liverpool. I just recently put a video out about how to save money to buy an investment which you may find helpful. I look forward to seeing more videos on you buying more investment properties. Good luck with that.
The tax breaks that are no longer in place and the fact that you have to have so many safety tests, and the laws that are now in place for landlords to adhere too ,are now to prohibited for is to be a good proposition . Tenants now expect more, for less and the cost in keeping them happy , eats away at the small profit left annually. Whats missing on the board, is the tax on income in this calculation . If your earning already , then the profit from you rental, can push you up in to the next tax bracket. If it does, most of the rental income you will have made can be nearly wiped out when you come to pay your yearly tax account. Im not saying dont do it, but remember any investment that involves a large element of humanity can be unpredictable and time consuming. Yes some tenants will call you out to change a light bulb. On the other side of the coin , if you get good tenants , some landlords for-go the annual rent increases just to keep them happy and to stop them looking around for another property to rent to ease any hassle . Also on the above calculation, is its worked out on a yearly FULL let . Some years the property might be vacant for a few of those months esp if its in an large urban areas where there is a big choice of other property rentals. Then you would have to look at charging less rent to make your property stand out from the crowd. And lastly , your buy to let mortgage, is it fixed rate and for how long? .Mortgage rates are at historic lows, but with the situation with Brexit and now covid, will rates like that carry on? If they dont you could be having to add to the rent to pay the mortgage and to keep the thing afloat. But good luck , property rental is not all bad. But remember it aint as plain sailing as the tv programmes lead you to believe .
@@TheHamood93 No not negative. Just a realist. And an ex estate agent. Who knows the market well and have witnessed many times , how many people have gone under through not working out the sums properly. If you read the whole comment you will see that I say good luck . I never say dont try it , just be better prepared. Not mentioning the tax for starters, or taking in to account the mortgage interest that will be paid over the the term of the mortgage have been left out of the calculations. Add them in and you will see that there will probably be less profit to be made over all. Also you need a contingency fund, this too has been left out. A failing gas boiler when refitted can set you back two grand plus. You cant put repairs off like you used to. Laws in place nowadays, expect swift renewal and certification . Evicting a bad tenant with legal fees and loss of rent can set you back 5 to ten grand. With any money investment, dont just ring fence the monthly profit. Be prepared for the odd rainy day . Of course I can tell you want you want to hear, if that make you less insulting. But hey it aint my money , only yours if you proceed down this path. I also wish you, genuinely good luck.
Hi thanks for your comment, appreciate you watching and taking the time to give feedback. With regards to the tax breaks, that is the reason why I purchased the property in a Ltd company - the tax on income is 19% and mortgage interest can still be written off. I think you are going off the new section 24 changes - which charges 20% or 40% tax depending on what someone earns, and they can no longer get relief on mortgage interest. I didn't write the tax figure into my calculation because my tax on earnings will be different from someone else - everyone has different situations, and writes off different expenses, so it wouldn't give a true representation. I definitely take on board your points about maintenance and voids - I should have factored that into my equation. Re mortgage I took out a long 5 year fixed term. I may remortgage in the meantime, but at least I have a reasonable rate locked in, I did stress test the property with a higher interest rate aswell. Appreciate your comments as mentioned, my more recent videos cover some of the 'realistic' sides of property investing. Best of luck to you.
Hi Justin, Thanks for the straight forward / no fluff video! I'm currently looking at my first buy-to-let venture and trying to build a list of all the expenses that are involved! I've been left £90k and not sure how best to invest it?.. buy one flat out right in Liverpool/Manchester or buy a couple and have a mortgage(s)? Any advice is more than welcome.
Paul Durham Thanks Paul! Really appreciate you watching the video. My personal opinion is that I would use the money to purchase 2-3 properties with 25% deposits. The cash flow and capital growth that can be earnt off properties is far greater than one. However, be careful if you are new to property - take your time, do lots of research... there’s lots of good free podcasts and books. Feel free to message me if you want recommendations. and maybe purchase one and wait a few months before going after number 2 and 3... that way you can use the experience from your first one as a guideline for the next ones. I’m still new to investing so I’m sure there plenty of better people to speak with, but I Hope that helps 👍
@@JustinWilkins Thanks for replying. The one thing that puts me off buying multiple properties with mortgages is that if interest rates went up. My thinking is that if i purchased 1 property outright i would'nt have that risk and would have more profit per month. I understand what you mean about the capital growth would be more on multiple properties than just 1. Will need to crunch the numbers and see what works out best over mid to long term. Cheers!
Paul Durham hi Paul. Some good comments and I always like to play it slightly safe myself. If you don’t feel right buying more than one, then you could easily start by purchasing your first house outright for cash, then once you’ve built up some confidence and experience, you could always refinance the house further down the line and pull out funds for purchase 2 and 3. There’s nothing to say you have to buy more than one house now. Your in a fantastic position, so there’s no need to rush anything.
@@Paul_D. I would buy a house for you to live in. Rent out a couple rooms. live rent free plus something on the side. Then look at refinancing 6 months down the line and start investing?
Equity growth is more important than cash flow each month mainly because you don't pay tax. Maybe you should be repaying a mortgage at a higher rate if possible to avoid paying tax on that cash flow.
Thanks for watching. Equity growth is important yes. But, that will be my focus in 5-10 years time. It depends on your personal point of view, but many growing investors look to use the monthly cash flow to help progress and grow their portfolio, rather than paying off debt (which is actually quit cheap, and can be used as a tax right off!).
hi justin, would be great if you do a video on the ins & out of refinancing (whether it is possible for flats as wel) & the best ways to go about it. Also may be an insight to how you pick the properties (right move vs others). thanks and looking forward to more content.
Hi Ahmed, thanks for watching and for your video suggestions. They are both good ones and il add them to the list for video ideas, or to answer them in future Q&A’s.
It wasn’t a necessity, and it wouldn’t have stacked up. Not every deal has BRRR potential sadly 😔 i will look to refinance this house in the future though. Thanks for watching
this whole buying and remortage strat only creates a house of cards waiting to come crumbling down. you will end up with 5 mortgages going and all it will take is one nightmare tenant who doesnt pay then trashes your place after you finally get them evicted.
@@rorymillhouse4041 I prefer buy, fix, sell. I have no interest in renting out for reasons mentioned. It can all come crumbling down. But if it works then awesome.
As you look very young may I ask how long it took you to save up for the whole cost of this buy to let? I live in Liverpool and know that the yields are really good, don't forget you made 12k in equity just off that offer for 58k too which is amazing nice work 👍
Hi, thanks for watching and for the question. I’m reasonably young, but I’m not far off 30 now - think I look younger than I am! 😂 once I decided to save for a BTL it took me a year to save, but I really turned my whole focus to saving and cutting costs everywhere! But it’s really amazing how much you can save if you scrutinise you’re monthly expenses.
@@JustinWilkins wow look well for your age, I'm 27 next month and if I have a shave I look about 16 😂😂 yeah I've been doing calculations too and looks like I'll need around 1 year myself, are you looking to do cash out refinance to gain your 2nd property or save again?
Haha young people problems! Excellent nice work. Il be looking to pull a reasonable amount of money out of my next deal so that I can keep buying quicker 🤞
@@JustinWilkins I know baby face problems haha, yeah that's the route I want to go too is to offer low to leave equity and then refinance to pull out equity to then put into another deposit, hope all goes well for you, keep up the good work and cheers for replying 👍
Great video again Justin. Need to shop around for the insurance. Never ceases to amaze me how much investors pay for insurance. You could get that a lot lower. 👍
Thanks Guy! And so true regarding insurance - you’ll be pleased to know that my policy went down to £24 per month once the tenants moved in. What are your thoughts on that price, high or low in comparison to your properties?
Hi, yes sure. Yield is based off the overall rent per annum divided by the house purchase price (x100 of course), so its actually 10.8% - this is the figure that estate agents tend to use... but as an investor you are probably best to work out the ROI - which is annual profit per annum, divided by the amount invested into the property expressed as a percentage. Hope that helps.
@@SrebrnyQL No problem, I'll explain. Yield = overall rent per annum (£6300) divided by the purchase price (£58k). Estate agents often use yield as their calculation when advertising a property - and they don't know or have the time to sit down and approximately calculate what profit each individual person might make and then give you a yield based off of that.
Hey Justin, you made me want to buy a house up there now! I wanna get into property as well, do you have any let to let? I would love to know how it can work. Thanks mate!
@@JustinWilkins that would be so cool to see and learn about let to let thanks! Also unsure about the laws regarding that. I live in London as well, but definitely here is out of my mind buy to let as you said the return percentage is very low.
Great video. I’m from Liverpool and know the area well. Safer bet is buying on the Wirral. That’s where I buy. You can get similar priced 3 beds in good areas.
Thanks for watching, glad you liked it. Interesting point of view regarding the Wirral as I have a lot of investors in my network that avoid at all costs. I’m going to walk the streets in my next visit and get to know the area some more. Thanks for the comment.
I'm enjoying the video. But it's incomplete and evaluations such as "it's a good investment" and spending 30 seconds on risk is nonsensical. Where did you get the information on Liverpool residential property capital growth, who are "they"? 25percent over 5 years? You skimmed over major issues such as tax and basic maintence landlords are obliged which can easily eat into that mthly income and therefore that needs to be reflected in the yeild assumptions. Tax can be a huge issue especially for landlords and if you are in other paid employment. Furthermore, this video is 3 mths old, the global pandemic had started and not a word about this. I like your style and motivation and 16k isn't much to risk for some. But if you're going to appear on video giving advice you need to be more incisive. Your comment on a flat in the south east would be worse doesn't always ring true. Most returns from property come from capital appreciation and that has been greater in South. You put a 5 year time horizon and call yourself a geek and compare an isa, but fail to look at any other asset classes as a comparison as well which would be interesting. I'm pretty experienced in investments and regrettably seen so many ppl fall down on these BTL things because they think its a license to print money. Good luck, I am a fan of what you're bringing to the table. But needs to be tightened up if your making vids to give advice to people who aren't professional investors. And sorry whatever game or sector we're in, making an assessment on an investment after a few months and concluding "it's a good investment" would raise eyebrows in most competent property and investment firms. You also failed to mention to the viewers what is the contingency /planning if the house is empty for 3 mths. Even if that's not the case most landlords keep some level of capital to cover this (again, that could eat into you our real return in the first year). I did like how you reinforced this is a long term game.
Thanks for taking the time to watch and pass on your comments. Lots of points to discuss here :) The article re 25% growth over 5 years was published by Savills, they have now adjusted and updated their predictions as the pandemic will of course hugely effect this prediction! My video was published on February 17th, and I had made it the week before (in mid february), at this point the virus was hardly even a talking point, in fact I'm not sure I even heard of it until the beginning of March? That seems like forever ago now! Agree that I should have mentioned potential maintenance costs or voids... luckily I haven't had much experience in voids, but I have had some maintenance - I cover this in a more recent video called 'First 6 months as a Landlord'. I didn't compare the investment to a broad range of other products as I wanted to keep the video within 5-7 minute range, and to engage with the typical viewer. Most viewers will have not experienced anything other than your typical savings account, premium bonds or ISA. I didn't touch on tax because this is also a lengthy topic, and is very individual towards each user. Giving my opinion on tax during my first year would be reasonably invaluable because its considered a start-up ltd company, and therefore there are lots of tax deductible expenses during the 1st year. I agree my statistics and comparables could be more concise, but I still conclude that the ROI I achieve on my £525 per month rent is a 'good investment' and superior to most other asset classes. It won't always be plain sailing, and thats why I'm looking at the 5, 10, and 20 year plan :) This response is not to argue with you, I wanted to give my points of view. I like some of the points you raise, and appreciate you giving an honest opinion.
@@JustinWilkins yes but you are considering it as if it was purely money spent, but in reality you are building equity. You are doing a great job that's all I'm trying to say !
if you are lucky enough to find an idiot seller who tells you: "I'm desperate to sell", you give a low offer offer and buy. Desperate sellers are gold dust. They are not supposed to tell you they are desperate. Really dumb
Hi Justin - brilliant vid. I've learnt so much and gained a lot of confidence from your experience! It's noticeable also that you've got a great rental income there as a lot of 2 bed terraced houses in Walton are going for around £400 p/m only!
Thanks for watching, i'm really pleased to hear that you've learnt from my videos. My property has done particularly well, and I was initially expecting in the region £475pcm-£500pcm, so I was pleasantly surprised to secure tenants at £525pcm and very grateful to have them so far.
Great price you paid for that house. Your return on cash invested is about 19.3% per annum. This would take 3.7 years if compounded to double your money(using the rule of 72). Well done.
Cheers Steven! I do tend to focus on ROI, and cash flow, just in case the capital growth isn’t there. But I’ve been lucky on this one, and the Liverpool market has rocketed 😃🚀 thanks for watching man!
Great video! It's really nice to see someone open about the numbers! I bought my first place in October and I'd love to buy more. It would be great to hear about your corporation as well
@@JustinWilkins it works as you scale out let's say you make £1200 per property get to 20 thats 24k, after 15 you don't pay the extra stamp duty aswel. Not sure where you are from but self managing at 20 would then give you an extra 18k if you are not going the hmo route should be an avages of a days a week work depending on condition of houses and 1 nightmare tenant could double that work load
Great video mate, thanks for uploading. I’m from Bournemouth but live in Florida now and invest in homes here. Best of luck with your portfolio moving forward. Keep up the good content
Could you please let us know which mortgage package you’re using, how much money is mortgaged, what initial interest rate you’re paying and if that rate goes up after a period of time. Thanks.
Hi there, mortgage interest rates and packages almost aren’t worth sharing because the mortgage market has changed so much in the last 7-8 months since I bought the house. But it’s just under 4% interest only mortgage, it’s a 25 year term with 5 year initial fixed rate. I will either remortgage next year or in 2024 👍
Hi Justin, great video. I would highly recommend using the Pocket Estimator app if you are buying a property that needs work. Its a free tool that you can use to put together the cost of the works. It calculates the cost of labour and materials based on BCIS which basically gives you the national average. I've been using it to get a quick cost plan together which lets me better compare the viability of investment options. Anyway, great work. Keep it up.
Liverpool is doing pretty well in terms of capital growth I think.Did you buy near Everton?,pretty good value near there ,even now.The agency fees are a bit of a scam though it's better getting to know and have a relationship with a few solid tradesmen.
Hi Justin, Question? If someone is buying their 1st Buy To Let? Is it better to rent it out to tenants. Or Would it better as your 1st BTL investment property as a Flip or A BRR (ie Buy, Refurbish and Refinance)?
Depends on your capital. If low on capital, could be better to build up capital first by sourcing or flipping. Then moving on to buy-to-let or BRR once you’ve built up more capital 🙂
Correct :) the cost of £37 a month reduced down after the tenants moved in - its a combo of building insurance, landlord insurance and public liability insurance - but includes most of the things you mentioned above yes.
@@JustinWilkins Great, thanks for the response Justin, been following you for a while, excellent informative videos, looking to take the plunge into property investment myself soon, keep it up.
Well done mate a nice simple breakdown. You have a similar mindset to what I use to have and theres nothing wrong with that! What I would however say is like me you are looking at short term profits... you know yourself tenants can be an arse. I would suggest you try grind it out and up your mortgage payments to break even to your profit ratio... Why? Well because the sooner you pay off your mortgage the bigger lump sum you will have to invest in many other things later in life and by looking at you there is a high chance you could do that before you turn 30. Itll be a grind but stick it out and it'll be worth it. Im only 28 and I dont have a time machine, the next best thing to having a time machine i feel is directing a younger me onto a better path to financial freedom. Proud of you though 👍
Thanks for watching and the suggestion. An interesting point of view that I hadn’t considered before. My plan has always been to keep it on interest only for 5 years whilst building up my portfolio, but your strategy is definitely something to consider. Thanks for watching man 👊
@@JustinWilkins and a quick little hint as well. Bitcoin will flourish December to early next year so if you can spare some change, stick it on! Also do your research into ethereum 2.0. It isn't out yet but stick with it for 2 years. 👍
Great video Justin. I too recently purchased my first BTL in Liverpool. Unfortunately, rule number 1 in Property investing is Location, Location, Location. Did you find out from the previous owner why she was so desperate to move ? I saw Everton’s ground in the video, which would mean your in the Walton Area. I very much doubt you will see much if any capital growth here, no matter what goes on in else where in the city. Always use the police crime map to check an area before purchase. Unfortunately you have purchased in one of the worst areas of the city, with one of the highest crime rates. People who can afford to live elsewhere do. In my opinion (others may disagree). The city is divided into North & South End. The North End is Walton, Bootle, Everton etc. The South End is Aigburth, Allerton, Grassendale, Woolton. Generally the South End would be the better area to invest. Property is more expensive, but more likely to see capital growth. The South End has a lot going for it, Lark Lane full of cool pubs and restaurants, Sefton Park, the Promenade etc. If you want some local knowledge before your next purchase give me a shout 👍🏻
Hi Kevin, thanks for watching and for your comment. Congratulations on purchasing your first buy-to-let, its clearly made you think you are now king of the manor :) I viewed lots of areas, including Walton, Anfield, Bootle, even Seaforth!!! - because I needed to get a complete overview of the different areas first hand. Admittedly I am new to investing, and i'm always willing to take on board experiences and learn where possible. I appreciate that some of your points are very accurate - the Southern Parts of Liverpool are definitely more favourable for rent and capital growth. However to say you won't see capital growth in those areas is a tough call without a crystal ball... it certainly won't grow at the rate that other areas are... however, 15 years ago people said Streatham (South London) would never increase in value due to its crime rate and bad reputation - now look at it! I want to be clear that some of what you say is definitely true, there are far better areas to invest. However, property investment is a balance of capital growth vs income. If I wanted just capital growth I would have stayed investing down South where is the capital gain is superior... but I wanted cash flow off a small investment. Wish you the best with all your investing! Thanks again for watching.
Really interesting video, I've just bought my first property for £430k and planning on buying a buy to let up north. Really useful for me at this stage as I didn't consider limited company etc.
Great! Thanks for watching. I created a video with my accountant which discusses the pros and cons of opening a limited company for property - hopefully thats useful for you.
@@JustinWilkins Literally watched that and about 15 of your other videos this morning. Really useful. One question that I've got mixed replies too.. Would you rather buy the property out right or go via a mortgage? I'm looking for a long term investment and I've been toying with the idea of potentially purchasing a property outright up north.
Hey im 20 still at university in London and hopefully by the end of 2022 fingers crossed Theres a slight pull back in property prices i want to purchase my first BTL
waw absolutely fairplay to you mate, great video which explains things so clearly and good on you for putting the work and the effort in. I've been looking at trying to do this for a little while now and this is good motivation to crack on
You did very well. To give you an idea, I bought a property in Stockton (Liverpool is better) for £69k and I am getting £500pcm in rent. You did really really well.
Hi Chris, thanks for watching. So my plan is to continuing growing my portfolio using interest only mortgages, then once in 5-10 years time il switch them over to repayment mortgages to pay down the debt. Whilst mortgages tend to have 25-30 year terms, you have to renew the product normally every 2 or 5 years. So you can switch then 🙂👍🏻
I would recommend either working with a property sourcer who can potentially provide you with a full video walkthrough, photographs, quotes, etc ... or I would book a few days holiday off work and visit yourself. Buying blind without either of those isn't worth the risk in my personal opinion. Also estate agents are unlikely to accept an offer from you without seeing the property.
Ive been letting out my property for about a year now. You will always have additional expenditure. I think ive had to shell out about 1k last year, that's nothing as I make £800 a month profit on the property. I have owned it for over 12 years so my mortgage and equity is very good. That's on an interest only mortgage. I need to think about paying it off after this virus has passed.
Hi Ben, thanks for watching. I completely agree, there will always be money that is needed for maintenance and void periods. Now that I am 6 months into being a landlord I have experienced this ... I made a video on that aswell. Great to hear your experiences, and if you're not looking to grow your portfolio more, then paying down the mortgage is a great idea! Cheers again for watching
Hi, great video, do you have a video explaining how and why to set up a limited company and also do you know if you buy to let and have the deposit do you also need an annual salary to get a mortgage?
Hi Karim, yes I have other videos explaining how and why to setup a limited company for property. I also have an interview with my accountant which discusses that topic! Hope you enjoy those. Regarding deposit and mortgage - I think banks ideally look for £25k salary plus ... but worth speaking with a mortgage broker as some banks won't have that as a requirement I believe.
Thanks Lynne! I don't mention tax, because quite often in property people have very different tax circumstances... depending whether they invest in a ltd co or personal name. Also, I bought my property in a ltd company that has a couple of revenue streams in, meaning my tax liability will most likely differ from a lot of other people.
Hi, I have somewhat different question. Where are good areas to buy house to live for my own small family? I looked online and could afford something up to £100,000. I liked some houses in areas Old Swan, Huyton, Roby, Prescott, all areas close to railway leading to St Hellens were nice and I like to have rail access. All what I need is somewhat easy access to center and safe area to live.
I’m 20 and I come back to this video every so often to remind me that there are ways to get into property without a huge investment. Love it man and I want to get into it all after a year or two after I graduate
this is the best explained video on youtube, all those "property millionaires" on youtube talk shit for 20 minutes with no sense.
Legend! Thanks Lukas, glad you enjoyed it 😂 hopefully one day il be a property millionaire, but one that talks sense! Lol
Hey man this is such a good video! You've explained things far better than a lot of people on here! good job on you pal! subscribed!
Thanks man. Great to hear that, thanks for watching and subscribing!
Verry good investment curry on
Love this mate, an honest and straightforward video that does exactly what it says on the tin, good luck building your portfolio.
Thanks for watching Andy! Pleased you like it 👍
@@JustinWilkins how about length of mortgage as regards total spent
Absolutely amazing video Justin and I love the breakdown and the comparison against the ISA. I'm looking at potentially buying my own buy to lets and this video was really helpful mate.
Thanks for watching, and I’m glad you hear you liked it! Good luck with your future buy-to-let 👊
Hi, remember numbers are just numbers the most important thing in any property is location location location!!
Absolutely! Location is first priority, and then work out the numbers. In this video though, I had already bought the house and secured the tenant - so the numbers were the most important thing at that point 👍
Justin Wilkins
I remember my 1st I was so excited and great price (I thought ) the 1st day I was there working the neighbours came out and started a fist fight with each other and I thought ‘what have i done’ now I look before I leap 😂.. good luck to yourself and I’ll stay tuned to see you progress 👍👍 cheers Pete
justin i got a question if you just brought the entire house without mortgage would you be earning £500 (after agent, & insurance) of rent money?
All bills including council tax passed onto tenants?
@@pistolpete5189 haha what a story! I bet you can look back now and laugh, but at the time that cant have been much fun!
This is a really good video, down to earth, real from your own experience and no BS. GOOD JOB
Thank you, it’s great to receive that feedback. Cheers for watching 👊
Great to find a Good numbers based rental property video for the UK, shows it definitely can be done! Big inspiration, thanks Justin
Thanks very much!
Glad I found your channel man! I'm a similar age to you, just started my 30's and looking to get into property after having my own business for 3 years. I'm also looking to set up a second LTD Company to run it all through so your content is exactly what I needed!
Nice and simple video on buy to let. Thanks.
Thanks very much for watching!
Great video mate, I’m looking around for my first property investment in Manchester. It’s good to see someone making a hands on video
ZunairKler Thank you for watching, pleased it’s been useful! Connect with me on Instagram @justinnwilkins and drop me a message if you ever have any questions!
I stumbled across your video whilst watching a totally different video. I am actually in the process of purchasing my first BTL property in Liverpool. You have a new subscriber. I will be checking out more of your videos. Thank you for this video.
Hi, thanks for watching and subscribing! Great to hear you are currently buying a property in Liverpool, good luck with it. Lots more videos to come regarding Liverpool in the upcoming weeks.
So transparent, thank you mate, keep up the good work
Thank you for watching! Pleased to hear you liked it.
You explained it so well man. Absolutely brilliant video and amazingly explained. Big love for you for this. Thank you
Thanks very much for watching! appreciate it, and glad it was useful :)
Glad I found this video I’m 20 from Scotland I’m saving up for the deposit for my first btl
BRSK thanks for watching, and I’m pleased it was useful! 👊
What is a blt
@@braggsbrag5390 blt is a bacon lettuce tomato sandwich :) and when we refer to a btl above, we mean a buy-to-let property.
Justin Wilkins haha
Nice vid Justin especially breakdown of costs but you’ve still left in quite a lot of your own deposit money haven’t you. Will you be looking for your next property that needs work so you can refinance it straight away and get more of your money out to recycle ie by using commercial mortgaging?
This video was bloody brilliant. Super helpful, clear, informative. Thankyou very much.
Cheers for watching Harry!
You explained everything so well and so clearly thanks Justin! I need to check out the rest of your videos but if you haven’t done so yet, I would love for you to do the video on setting up the limited company! x
Thanks so much for watching, and great to hear its explained :) thanks for watching my videos.
Amazing by far the best video on buy to let investment I ve watched. Thank you!!!
Glad you enjoyed it! Thanks very much for watching
Buddy... that's not profit. Assume that every 20 years the boiler, roof and amenities (fridge, freezer, washer, dryer etc) will need to be replaced. IKEA furniture lasts 5 years, mattresses for 10 and every 40 you'll need to fully renovate. You should be putting at least £1200 a year away until you have £20K reserves and keep increasing these thresholds with inflation. You can place your cash reserves into an ISA or other investment vehicle and skim the top if you like. Margins look incredible in the North, I'm jealous, you'll still be able to draw a profit from that.
Remember that people say "the only time a rental makes you money is the day you sell it" for good reason. The rent you charge will be unlikely to beat a fixed rate ISA after you factor costs, but those are also a scam, you're really looking to beat inflation (assume 3% pa). A 1.2% fixed rate ISA is therefore loosing you 1.8% of your money every year, it's a terrible investment. The real investment in a rental property are the mortgage payments that are magnified every time the house price rises.
Thanks for watching and I always appreciate different opinions. Whilst I do agree that not all of it will be profit due to maintenance costs, voids, and boiler. The property is not furnished, so no cost there. And I am banking on using the cash flow and (potential) future capital growth to help fund refurbs and portfolio growth. I do agree most the money will be made when mortgages are paid off or the property is sold. I don’t agree that ISAs are a good investment, most just about cover inflation. Appreciate you watching 👊🙂
The best I e seen so far. Thank you for this.
Wow, thanks very much for watching! :)
Good video. The only thing I would add is that when buying remotely I think you should be adding the cost of your travels to view properties. I imagine several visits are required when scouting an area and the costs can easily accumulate to a couple of hundred pounds especially when trying to buy BMv as these properties take longer to find
Hi Jim, good suggestion to work out the cost of the travel and hours. I certainly have a spreadsheet which I use to keep track of it. However, I personally don't think its something I would put into my profit calculations. Cheers for rwatching.
great video, Nice to see how much you've growth since them
Good job mate, I did the same in my 20's and still doing this into my 30's, keep going it does pay off. From another south coast lad working in London :)
Amazing to hear, thanks Simon!
no problems Justin!
Totally agree mate, that's a huge increase :)
Mate thank you so much, this video was very helpful to me, I learned new things from this video, so thank you
Thanks very much for watching it! Glad it was helpful :)
Very informative, I’ve been looking at Liverpool myself, thank you this video really has helped.
Thanks Ryan, I’m glad it helped! Cheers for watching
Nice, clear and concise, great video
Thanks, great feedback, really appreciate it! 👌😃
Watched this one again, really useful justin
Haha cheers for re-watching!
Great video, short and sweet. Thanks for sharing!
Thanks for watching! I’m pleased you liked it 🙂👍
Some things I think should have been mentioned:
- Is it fair to compare something tax free (ISA) to an income you get taxed on with rental?
- Cost of maintenance priced in (£50/month)
- Cost of void periods
- Accountants cost to submit tax return (unless you are doing it yourself)
- Mortgage is likely to be interest only (people are mistaking this for a repayment cost)
- Annual boiler inspection
That said, I think it is a good buy for sure. Well done man.
I think you should be comparing it to not a fixed cash ISA though. An index fund that returns 7% (mimicking the S&P500) is fairer.
Hi thanks for watching and for your comments. I think it is fair to say that it should have been compared with a fund or fixed rate account, rather than a tax free ISA - the reason behind this comparison is that the average Joe often has tens of thousands sitting in basic rate accounts.
Void periods and maintenance are things I wish I had factored into this video... but I will be sure to make a 12 month review video showing all the costs.
Accountants fees - it wouldn't be fair to show this as I split my monthly accounting fee between several income revenue streams. Although I guess I could have split it up appropriately and deducted £10-£15 per month from the income.
Yes the mortgage is interest only, and I had hoped that was clear but I may well add in a banner if thats not obvious.
Appreciate your comments and thanks for watching!
BeAtLeBoAr also add in costs like gas safe certificate, electrical compliance, buildings insurance. I would say a return of 6 to 8 percent is more realistic in the long run.
I like the way you have explained each of the purchase costs that you incurred to buy your investment property in Liverpool. I just recently put a video out about how to save money to buy an investment which you may find helpful. I look forward to seeing more videos on you buying more investment properties. Good luck with that.
Thanks Stephen, appreciate you watching my videos, I will check out your videos this weekend! Best, Justin
@@JustinWilkins cheers.
The tax breaks that are no longer in place and the fact that you have to have so many safety tests, and the laws that are now in place for landlords to adhere too ,are now to prohibited for is to be a good proposition . Tenants now expect more, for less and the cost in keeping them happy , eats away at the small profit left annually. Whats missing on the board, is the tax on income in this calculation . If your earning already , then the profit from you rental, can push you up in to the next tax bracket. If it does, most of the rental income you will have made can be nearly wiped out when you come to pay your yearly tax account. Im not saying dont do it, but remember any investment that involves a large element of humanity can be unpredictable and time consuming. Yes some tenants will call you out to change a light bulb. On the other side of the coin , if you get good tenants , some landlords for-go the annual rent increases just to keep them happy and to stop them looking around for another property to rent to ease any hassle . Also on the above calculation, is its worked out on a yearly FULL let . Some years the property might be vacant for a few of those months esp if its in an large urban areas where there is a big choice of other property rentals. Then you would have to look at charging less rent to make your property stand out from the crowd. And lastly , your buy to let mortgage, is it fixed rate and for how long? .Mortgage rates are at historic lows, but with the situation with Brexit and now covid, will rates like that carry on? If they dont you could be having to add to the rent to pay the mortgage and to keep the thing afloat. But good luck , property rental is not all bad. But remember it aint as plain sailing as the tv programmes lead you to believe .
you are just another negative person he has to deal with, I bet he will be a millionaire on the long run
@@TheHamood93 No not negative. Just a realist. And an ex estate agent. Who knows the market well and have witnessed many times , how many people have gone under through not working out the sums properly. If you read the whole comment you will see that I say good luck . I never say dont try it , just be better prepared. Not mentioning the tax for starters, or taking in to account the mortgage interest that will be paid over the the term of the mortgage have been left out of the calculations. Add them in and you will see that there will probably be less profit to be made over all. Also you need a contingency fund, this too has been left out. A failing gas boiler when refitted can set you back two grand plus. You cant put repairs off like you used to. Laws in place nowadays, expect swift renewal and certification . Evicting a bad tenant with legal fees and loss of rent can set you back 5 to ten grand. With any money investment, dont just ring fence the monthly profit. Be prepared for the odd rainy day . Of course I can tell you want you want to hear, if that make you less insulting. But hey it aint my money , only yours if you proceed down this path. I also wish you, genuinely good luck.
Hi thanks for your comment, appreciate you watching and taking the time to give feedback. With regards to the tax breaks, that is the reason why I purchased the property in a Ltd company - the tax on income is 19% and mortgage interest can still be written off. I think you are going off the new section 24 changes - which charges 20% or 40% tax depending on what someone earns, and they can no longer get relief on mortgage interest. I didn't write the tax figure into my calculation because my tax on earnings will be different from someone else - everyone has different situations, and writes off different expenses, so it wouldn't give a true representation.
I definitely take on board your points about maintenance and voids - I should have factored that into my equation.
Re mortgage I took out a long 5 year fixed term. I may remortgage in the meantime, but at least I have a reasonable rate locked in, I did stress test the property with a higher interest rate aswell. Appreciate your comments as mentioned, my more recent videos cover some of the 'realistic' sides of property investing. Best of luck to you.
Thanks for the support Ahmed! Appreciate you watching. I hope il be a millionaire one day! Haha
Excellent vid mate, very refreshing to see a full break down rather than skewed window dressing 👍
Thanks Ryan! Appreciate you watching
Hi Justin,
Thanks for the straight forward / no fluff video! I'm currently looking at my first buy-to-let venture and trying to build a list of all the expenses that are involved!
I've been left £90k and not sure how best to invest it?.. buy one flat out right in Liverpool/Manchester or buy a couple and have a mortgage(s)? Any advice is more than welcome.
Paul Durham Thanks Paul! Really appreciate you watching the video. My personal opinion is that I would use the money to purchase 2-3 properties with 25% deposits. The cash flow and capital growth that can be earnt off properties is far greater than one. However, be careful if you are new to property - take your time, do lots of research... there’s lots of good free podcasts and books. Feel free to message me if you want recommendations. and maybe purchase one and wait a few months before going after number 2 and 3... that way you can use the experience from your first one as a guideline for the next ones. I’m still new to investing so I’m sure there plenty of better people to speak with, but I Hope that helps 👍
@@JustinWilkins Thanks for replying. The one thing that puts me off buying multiple properties with mortgages is that if interest rates went up. My thinking is that if i purchased 1 property outright i would'nt have that risk and would have more profit per month. I understand what you mean about the capital growth would be more on multiple properties than just 1. Will need to crunch the numbers and see what works out best over mid to long term. Cheers!
Paul Durham hi Paul. Some good comments and I always like to play it slightly safe myself. If you don’t feel right buying more than one, then you could easily start by purchasing your first house outright for cash, then once you’ve built up some confidence and experience, you could always refinance the house further down the line and pull out funds for purchase 2 and 3. There’s nothing to say you have to buy more than one house now. Your in a fantastic position, so there’s no need to rush anything.
@@Paul_D. I would buy a house for you to live in. Rent out a couple rooms. live rent free plus something on the side. Then look at refinancing 6 months down the line and start investing?
Equity growth is more important than cash flow each month mainly because you don't pay tax. Maybe you should be repaying a mortgage at a higher rate if possible to avoid paying tax on that cash flow.
Thanks for watching. Equity growth is important yes. But, that will be my focus in 5-10 years time. It depends on your personal point of view, but many growing investors look to use the monthly cash flow to help progress and grow their portfolio, rather than paying off debt (which is actually quit cheap, and can be used as a tax right off!).
hi justin, would be great if you do a video on the ins & out of refinancing (whether it is possible for flats as wel) & the best ways to go about it. Also may be an insight to how you pick the properties (right move vs others). thanks and looking forward to more content.
Hi Ahmed, thanks for watching and for your video suggestions. They are both good ones and il add them to the list for video ideas, or to answer them in future Q&A’s.
Thanks man best I've seen realistic in many ways
Brad George Thanks Brad, glad you liked it and thanks for watching!
Why didn’t you refurb the property and get it revalued and refinance so you can recycle your initial investment?
It wasn’t a necessity, and it wouldn’t have stacked up. Not every deal has BRRR potential sadly 😔 i will look to refinance this house in the future though. Thanks for watching
this whole buying and remortage strat only creates a house of cards waiting to come crumbling down. you will end up with 5 mortgages going and all it will take is one nightmare tenant who doesnt pay then trashes your place after you finally get them evicted.
Xbot4Life going to be a very slow process becoming a property investor if you don’t want mortgages
@@rorymillhouse4041 I prefer buy, fix, sell. I have no interest in renting out for reasons mentioned. It can all come crumbling down. But if it works then awesome.
So well explained and put together! Brilliant video.
Thanks Ina 😃 it’s an old one, but a good one! Can’t beat a classic whiteboard video haha
As you look very young may I ask how long it took you to save up for the whole cost of this buy to let? I live in Liverpool and know that the yields are really good, don't forget you made 12k in equity just off that offer for 58k too which is amazing nice work 👍
Hi, thanks for watching and for the question. I’m reasonably young, but I’m not far off 30 now - think I look younger than I am! 😂 once I decided to save for a BTL it took me a year to save, but I really turned my whole focus to saving and cutting costs everywhere! But it’s really amazing how much you can save if you scrutinise you’re monthly expenses.
@@JustinWilkins wow look well for your age, I'm 27 next month and if I have a shave I look about 16 😂😂 yeah I've been doing calculations too and looks like I'll need around 1 year myself, are you looking to do cash out refinance to gain your 2nd property or save again?
Haha young people problems! Excellent nice work. Il be looking to pull a reasonable amount of money out of my next deal so that I can keep buying quicker 🤞
@@JustinWilkins I know baby face problems haha, yeah that's the route I want to go too is to offer low to leave equity and then refinance to pull out equity to then put into another deposit, hope all goes well for you, keep up the good work and cheers for replying 👍
Excellent video. We want to see more of this sort of videos from you . Thank you
Thanks very much, there will definitely be more to come when I purchase more properties!
Are you you just paying off the interest on this property or paying the mortage off
Interest only mortgage 👍
Justin Wilkins can I ask why you went for interest only?
Aish x most people I know do, it’s cheaper. The mortgage just becomes a cost. Obviously you need an long term plan or exit plan
Great video again Justin. Need to shop around for the insurance. Never ceases to amaze me how much investors pay for insurance. You could get that a lot lower. 👍
Thanks Guy! And so true regarding insurance - you’ll be pleased to know that my policy went down to £24 per month once the tenants moved in. What are your thoughts on that price, high or low in comparison to your properties?
Justin, help me out here. I'm struggling to see how you're calculating a 10% yield?
Hi, yes sure. Yield is based off the overall rent per annum divided by the house purchase price (x100 of course), so its actually 10.8% - this is the figure that estate agents tend to use... but as an investor you are probably best to work out the ROI - which is annual profit per annum, divided by the amount invested into the property expressed as a percentage. Hope that helps.
@@SrebrnyQL No problem, I'll explain. Yield = overall rent per annum (£6300) divided by the purchase price (£58k). Estate agents often use yield as their calculation when advertising a property - and they don't know or have the time to sit down and approximately calculate what profit each individual person might make and then give you a yield based off of that.
Great Informative Video!
Thanks Zac!
Hey Justin, you made me want to buy a house up there now! I wanna get into property as well, do you have any let to let? I would love to know how it can work. Thanks mate!
Great to hear it, thanks for watching! I don’t have any rent to rent properties no, is this a topic you want me to cover in future? Thanks
@@JustinWilkins that would be so cool to see and learn about let to let thanks! Also unsure about the laws regarding that. I live in London as well, but definitely here is out of my mind buy to let as you said the return percentage is very low.
Great video. I’m from Liverpool and know the area well. Safer bet is buying on the Wirral. That’s where I buy. You can get similar priced 3 beds in good areas.
Thanks for watching, glad you liked it. Interesting point of view regarding the Wirral as I have a lot of investors in my network that avoid at all costs. I’m going to walk the streets in my next visit and get to know the area some more. Thanks for the comment.
I'm enjoying the video. But it's incomplete and evaluations such as "it's a good investment" and spending 30 seconds on risk is nonsensical. Where did you get the information on Liverpool residential property capital growth, who are "they"? 25percent over 5 years? You skimmed over major issues such as tax and basic maintence landlords are obliged which can easily eat into that mthly income and therefore that needs to be reflected in the yeild assumptions. Tax can be a huge issue especially for landlords and if you are in other paid employment. Furthermore, this video is 3 mths old, the global pandemic had started and not a word about this. I like your style and motivation and 16k isn't much to risk for some. But if you're going to appear on video giving advice you need to be more incisive. Your comment on a flat in the south east would be worse doesn't always ring true. Most returns from property come from capital appreciation and that has been greater in South. You put a 5 year time horizon and call yourself a geek and compare an isa, but fail to look at any other asset classes as a comparison as well which would be interesting. I'm pretty experienced in investments and regrettably seen so many ppl fall down on these BTL things because they think its a license to print money. Good luck, I am a fan of what you're bringing to the table. But needs to be tightened up if your making vids to give advice to people who aren't professional investors. And sorry whatever game or sector we're in, making an assessment on an investment after a few months and concluding "it's a good investment" would raise eyebrows in most competent property and investment firms. You also failed to mention to the viewers what is the contingency /planning if the house is empty for 3 mths. Even if that's not the case most landlords keep some level of capital to cover this (again, that could eat into you our real return in the first year). I did like how you reinforced this is a long term game.
Thanks for taking the time to watch and pass on your comments. Lots of points to discuss here :)
The article re 25% growth over 5 years was published by Savills, they have now adjusted and updated their predictions as the pandemic will of course hugely effect this prediction!
My video was published on February 17th, and I had made it the week before (in mid february), at this point the virus was hardly even a talking point, in fact I'm not sure I even heard of it until the beginning of March? That seems like forever ago now!
Agree that I should have mentioned potential maintenance costs or voids... luckily I haven't had much experience in voids, but I have had some maintenance - I cover this in a more recent video called 'First 6 months as a Landlord'.
I didn't compare the investment to a broad range of other products as I wanted to keep the video within 5-7 minute range, and to engage with the typical viewer. Most viewers will have not experienced anything other than your typical savings account, premium bonds or ISA.
I didn't touch on tax because this is also a lengthy topic, and is very individual towards each user. Giving my opinion on tax during my first year would be reasonably invaluable because its considered a start-up ltd company, and therefore there are lots of tax deductible expenses during the 1st year.
I agree my statistics and comparables could be more concise, but I still conclude that the ROI I achieve on my £525 per month rent is a 'good investment' and superior to most other asset classes. It won't always be plain sailing, and thats why I'm looking at the 5, 10, and 20 year plan :)
This response is not to argue with you, I wanted to give my points of view. I like some of the points you raise, and appreciate you giving an honest opinion.
Ash R bruh chill, go pay for all that
Good video and straight to the point. Subbed
Thanks very much, and I'm glad you enjoyed the video!
You also have to take into consideration that you are paying off your loan
Yes that consideration is in the figures. £149 a month
@@JustinWilkins yes but you are considering it as if it was purely money spent, but in reality you are building equity. You are doing a great job that's all I'm trying to say !
Yes true! Hopefully 🙂 Cheers for watching
Good video but would have been good to know which type of yield you used for the calculation.
Yes sure! I should have mentioned that I was using the gross yield 😃
if you are lucky enough to find an idiot seller who tells you: "I'm desperate to sell", you give a low offer offer and buy.
Desperate sellers are gold dust. They are not supposed to tell you they are desperate. Really dumb
Haha very good point! Its great to hear it as investors though :) Thanks for watching
Hi Justin - brilliant vid. I've learnt so much and gained a lot of confidence from your experience!
It's noticeable also that you've got a great rental income there as a lot of 2 bed terraced houses in Walton are going for around £400 p/m only!
Thanks for watching, i'm really pleased to hear that you've learnt from my videos. My property has done particularly well, and I was initially expecting in the region £475pcm-£500pcm, so I was pleasantly surprised to secure tenants at £525pcm and very grateful to have them so far.
Great price you paid for that house. Your return on cash invested is about 19.3% per annum. This would take 3.7 years if compounded to double your money(using the rule of 72). Well done.
Cheers Steven! I do tend to focus on ROI, and cash flow, just in case the capital growth isn’t there. But I’ve been lucky on this one, and the Liverpool market has rocketed 😃🚀 thanks for watching man!
Like this short and informative. No filler. Subscribed keep it up and good luck 👍
Thanks very much! Appreciate it
Great video! It's really nice to see someone open about the numbers! I bought my first place in October and I'd love to buy more. It would be great to hear about your corporation as well
Thats amazing to hear!
Thanks for watching, and i'd love to buy more houses too!
You need to add in an average of 2 months void period so £1000 plus £1000 in maintenance. That puts your profit down to £1500 per year.
Fair comment. It potentially might need a reasonable amount of maintenance cost, I’m waiting to see and il do a review after 12 months 👍
@@JustinWilkins it works as you scale out let's say you make £1200 per property get to 20 thats 24k, after 15 you don't pay the extra stamp duty aswel. Not sure where you are from but self managing at 20 would then give you an extra 18k if you are not going the hmo route should be an avages of a days a week work depending on condition of houses and 1 nightmare tenant could double that work load
Great straightforward video 👍 maybe I should of considered Liverpool !
Thanks for watching Ben!
Great video mate, thanks for uploading. I’m from Bournemouth but live in Florida now and invest in homes here. Best of luck with your portfolio moving forward. Keep up the good content
Thanks David. Appreciate you watching!! Good luck with your portfolio, and if I can help, feel free to drop any questions on my channel!
Great video, very organic and open information!
Thanks very much!
Could you please let us know which mortgage package you’re using, how much money is mortgaged, what initial interest rate you’re paying and if that rate goes up after a period of time. Thanks.
Hi there, mortgage interest rates and packages almost aren’t worth sharing because the mortgage market has changed so much in the last 7-8 months since I bought the house. But it’s just under 4% interest only mortgage, it’s a 25 year term with 5 year initial fixed rate. I will either remortgage next year or in 2024 👍
Justin Wilkins Thanks buddy.
Great video mate - very clear and concise.
DAWIT TEKLU thank you for watching, and pleased you liked it!
Hi Justin, great video. I would highly recommend using the Pocket Estimator app if you are buying a property that needs work. Its a free tool that you can use to put together the cost of the works. It calculates the cost of labour and materials based on BCIS which basically gives you the national average. I've been using it to get a quick cost plan together which lets me better compare the viability of investment options. Anyway, great work. Keep it up.
Thanks very much for the recommendation, I will download it and check it out!
@@JustinWilkins let m know what you think.
Liverpool is doing pretty well in terms of capital growth I think.Did you buy near Everton?,pretty good value near there ,even now.The agency fees are a bit of a scam though it's better getting to know and have a relationship with a few solid tradesmen.
Enjoying this channel a lot!
Property Hero Appreciate you taking the time to watch! More videos to come.
cheers justin
Hi Justin, Question? If someone is buying their 1st Buy To Let? Is it better to rent it out to tenants. Or Would it better as your 1st BTL investment property as a Flip or A BRR (ie Buy, Refurbish and Refinance)?
Depends on your capital. If low on capital, could be better to build up capital first by sourcing or flipping. Then moving on to buy-to-let or BRR once you’ve built up more capital 🙂
Best property blogger
:D thanks!
My tip would be to get good landlord insurance too. Covers a multitude of things regarding vacating tenants too
Absolutely! Completely agree, and I do cover landlord insurance In the video, it costs £37 whilst it was empty and went down to £24 once tenanted. 👌
Great breakdown, straight to it no bullshit
Thanks very much!!
great video, appreciate the transparency on costing!
Thanks Matthew!
You mentioned you have public liability insurance, does this also cover the building and void periods like a landlord insurance would?
Correct :) the cost of £37 a month reduced down after the tenants moved in - its a combo of building insurance, landlord insurance and public liability insurance - but includes most of the things you mentioned above yes.
@@JustinWilkins Great, thanks for the response Justin, been following you for a while, excellent informative videos, looking to take the plunge into property investment myself soon, keep it up.
Excellent video, Thankyou for going through your figures with us.
Thanks very much for watching!
Well done lad 👍🏻 good investment!
Thanks Mitch! Appreciate you watching
Will you save 10% of gross rent for maintenance cots? All "professionals' advise this. Great video and transparency. Thanks.
Absolutely! I didn’t at first, but I have done ever since. Can highly recommend saving £40-£50 a month for maintenance and voids! 👍🏻
Well done mate a nice simple breakdown. You have a similar mindset to what I use to have and theres nothing wrong with that!
What I would however say is like me you are looking at short term profits... you know yourself tenants can be an arse. I would suggest you try grind it out and up your mortgage payments to break even to your profit ratio... Why? Well because the sooner you pay off your mortgage the bigger lump sum you will have to invest in many other things later in life and by looking at you there is a high chance you could do that before you turn 30.
Itll be a grind but stick it out and it'll be worth it. Im only 28 and I dont have a time machine, the next best thing to having a time machine i feel is directing a younger me onto a better path to financial freedom.
Proud of you though 👍
Thanks for watching and the suggestion. An interesting point of view that I hadn’t considered before. My plan has always been to keep it on interest only for 5 years whilst building up my portfolio, but your strategy is definitely something to consider. Thanks for watching man 👊
@@JustinWilkins and a quick little hint as well. Bitcoin will flourish December to early next year so if you can spare some change, stick it on!
Also do your research into ethereum 2.0. It isn't out yet but stick with it for 2 years.
👍
Nice one mate. I am thinking of buying property next year. Wish we had yields like that here in Australia!
Haha amazing to have someone watching from Australia! Thanks
Great video Justin. I too recently purchased my first BTL in Liverpool.
Unfortunately, rule number 1 in Property investing is Location, Location, Location. Did you find out from the previous owner why she was so desperate to move ?
I saw Everton’s ground in the video, which would mean your in the Walton Area. I very much doubt you will see much if any capital growth here, no matter what goes on in else where in the city. Always use the police crime map to check an area before purchase.
Unfortunately you have purchased in one of the worst areas of the city, with one of the highest crime rates. People who can afford to live elsewhere do.
In my opinion (others may disagree). The city is divided into North & South End. The North End is Walton, Bootle, Everton etc. The South End is Aigburth, Allerton, Grassendale, Woolton. Generally the South End would be the better area to invest. Property is more expensive, but more likely to see capital growth. The South End has a lot going for it, Lark Lane full of cool pubs and restaurants, Sefton Park, the Promenade etc. If you want some local knowledge before your next purchase give me a shout 👍🏻
Hi Kevin, thanks for watching and for your comment. Congratulations on purchasing your first buy-to-let, its clearly made you think you are now king of the manor :)
I viewed lots of areas, including Walton, Anfield, Bootle, even Seaforth!!! - because I needed to get a complete overview of the different areas first hand.
Admittedly I am new to investing, and i'm always willing to take on board experiences and learn where possible.
I appreciate that some of your points are very accurate - the Southern Parts of Liverpool are definitely more favourable for rent and capital growth.
However to say you won't see capital growth in those areas is a tough call without a crystal ball... it certainly won't grow at the rate that other areas are... however, 15 years ago people said Streatham (South London) would never increase in value due to its crime rate and bad reputation - now look at it!
I want to be clear that some of what you say is definitely true, there are far better areas to invest. However, property investment is a balance of capital growth vs income. If I wanted just capital growth I would have stayed investing down South where is the capital gain is superior... but I wanted cash flow off a small investment.
Wish you the best with all your investing! Thanks again for watching.
Really interesting video, I've just bought my first property for £430k and planning on buying a buy to let up north. Really useful for me at this stage as I didn't consider limited company etc.
Great! Thanks for watching. I created a video with my accountant which discusses the pros and cons of opening a limited company for property - hopefully thats useful for you.
@@JustinWilkins Literally watched that and about 15 of your other videos this morning. Really useful.
One question that I've got mixed replies too.. Would you rather buy the property out right or go via a mortgage? I'm looking for a long term investment and I've been toying with the idea of potentially purchasing a property outright up north.
Good start. You’ve missed out other costs, like maintenance, check in and check out, cleaning between let’s. Tenant should pay some of it though.
Correct! I will make sure to do a 12 month update with all the maintenance costs, etc
Hey im 20 still at university in London and hopefully by the end of 2022 fingers crossed Theres a slight pull back in property prices i want to purchase my first BTL
waw absolutely fairplay to you mate, great video which explains things so clearly and good on you for putting the work and the effort in. I've been looking at trying to do this for a little while now and this is good motivation to crack on
Thanks very much for the feedback, and great to hear it! Good luck
Really good video. Appreciate you making the effort to do this and share it with us!
Thanks very much for watching! appreciate it
You did very well.
To give you an idea, I bought a property in Stockton (Liverpool is better) for £69k and I am getting £500pcm in rent.
You did really really well.
Thanks very much! Glad to hear you invest aswell, and from those numbers yours is still sounds like a good deal!
What do you do when the interest only period is finished? Do you refinance and start with a new interest only period?
Hi Chris, thanks for watching. So my plan is to continuing growing my portfolio using interest only mortgages, then once in 5-10 years time il switch them over to repayment mortgages to pay down the debt. Whilst mortgages tend to have 25-30 year terms, you have to renew the product normally every 2 or 5 years. So you can switch then 🙂👍🏻
Which estate agent is letting and looking after your Liverpool house?
I'm interested in buying up there as well
Great video mate. Thanks for sharing
Can you pls explain further on the mortgage deal, is it from private lender? Thanks
Normal mortgage lender, 80% LTV which they don’t do as much of now, and if they do they usually charge high interest rates
Massive well done bro, great investment & a great video too, thanks 🙏
Thank you, and I appreciate you watching the video!
I live down south and can't make it up there much.
What is your opinion on purchasing a property with just an online viewing?
I would recommend either working with a property sourcer who can potentially provide you with a full video walkthrough, photographs, quotes, etc ... or I would book a few days holiday off work and visit yourself. Buying blind without either of those isn't worth the risk in my personal opinion. Also estate agents are unlikely to accept an offer from you without seeing the property.
@@JustinWilkins where do you find soucer from?
Ive been letting out my property for about a year now. You will always have additional expenditure. I think ive had to shell out about 1k last year, that's nothing as I make £800 a month profit on the property. I have owned it for over 12 years so my mortgage and equity is very good. That's on an interest only mortgage. I need to think about paying it off after this virus has passed.
Hi Ben, thanks for watching. I completely agree, there will always be money that is needed for maintenance and void periods. Now that I am 6 months into being a landlord I have experienced this ... I made a video on that aswell.
Great to hear your experiences, and if you're not looking to grow your portfolio more, then paying down the mortgage is a great idea! Cheers again for watching
Hi, great video, do you have a video explaining how and why to set up a limited company and also do you know if you buy to let and have the deposit do you also need an annual salary to get a mortgage?
Hi Karim, yes I have other videos explaining how and why to setup a limited company for property. I also have an interview with my accountant which discusses that topic! Hope you enjoy those.
Regarding deposit and mortgage - I think banks ideally look for £25k salary plus ... but worth speaking with a mortgage broker as some banks won't have that as a requirement I believe.
Where does the 10 per cent yield come from? I don't see it. Excellent video by the way.
Thanks very much! Yield is annual rent £6300 divided by purchase price £58,000.
Great video, incredibly helpful & clear!
Thanks Jack! Appreciate you watching. Followed you on and off for many years on IG. So great to see you on my channel 👊🙂
Great video! I noticed that you didn't mention about income tax on your rental profit.
Thanks Lynne! I don't mention tax, because quite often in property people have very different tax circumstances... depending whether they invest in a ltd co or personal name. Also, I bought my property in a ltd company that has a couple of revenue streams in, meaning my tax liability will most likely differ from a lot of other people.
@@JustinWilkins That makes sense, thank you:)
Corp tax and dividend tax breakdown to include the final yield?
Should have done, but didn’t 😢
How do you set up a tenancy agreement for a couple of sharers. As i know someone in the same situation? But not sure how to set up agreement
Usually either a combined AST, or individual ASTs, depending on the relationship between tenants will probably dictate the answer
Just subscribed. This is great! Keep it up
Thanks for watching and subbing! Glad you like the videos
Thanks for this v.helpful
Thank you for watching! 🙂👍
Justin. What about the annual maintenance costs. You're £264 a month ignores running maintenance costs.
Absolutely right. I did miss maintenance from this which is something I will cover in my 12 month update video, and include... thanks for watching.
Great simple video.
Thanks Stephen! Glad you liked it.
Hi, I have somewhat different question. Where are good areas to buy house to live for my own small family? I looked online and could afford something up to £100,000. I liked some houses in areas Old Swan, Huyton, Roby, Prescott, all areas close to railway leading to St Hellens were nice and I like to have rail access. All what I need is somewhat easy access to center and safe area to live.