My mortgage on my last BTL property has gone up from £183 to £410 in the last few years plus 55 agents fee plus 20 a month insurance That’s almost £500 a month Plus general repairs plus gas certificate etc And your very close to the £595 a month rent So house went up for sale and is sold and currently going through smoothly
This video has been a lesson. Never realised BTL mortgages were so low compared to standard mortgages. If you don't mind me asking where is your property?
@@chair56789BTL mortgages aren’t so low they are on an interest only payment meaning the debt never goes down the actual interest rate is higher than a normal mortgage
I will never sell any of my houses,, and if the market price drops then I will be after some bargains,, there are lots of tenants out there wanting to rent..
Hi Justin, I’ve a number of Victorian terraced properties. If I was starting again I’d have invested in newer properties (built after 1990) because they are much less prone to damp, since they have cavity walls and a solid concrete ground floor with a proper damp proof membrane. Will be interested to see what your next investment looks like. Cheers David
The thing with newer properties is that they're quite a bit smaller & typically further out of the town/city centre. As long as you're on top of the damp proofing and also look at insulation, then they actually work really well. One of the things I'm doing with my properties is insulated plasterboard both front & back, as the actual side walls are insulated well enough. This fairly simple solution makes a massive difference and has corrected the (condensation) damp issues in the properties where I have done it. Another option is insulated lining paper, I did that in attic bedrooms & it makes a massive difference & goes from a building task into a relatively simple decorating task. The heat saving is really impressive as well, especially with the current state of bills!
@@marklewis3023 Thanks for the insight. It does sound like a good idea. I’ve also preempted internal mould on cold outside walls by using a kitchen & bathroom paint but throughout the whole house. It’s more expensive than a standard emulsion but contains a mould inhibitor so the house is less likely to have mould growth.
Hi, young man. I bought my first property over 40 years ago. I strongly advise you to look at small commercial property. Much more tax efficient than residential. It is easier to deal with tenants . Growth is huge. Good luck
@ChrisLee-yr7tz Surly that makes it a good time to buy? It's all about the return on investment, don't you agree. Commercial loans qualify as tax deductible,increasing the profits .
@joeclifford4953 Yep. I think yield and long-term capital growth are just as important. It's no use earning a high yield if the capital value is declining. They both have to be taken together. At the end of the day you have to PV all cash flows to work out the value of something. I'm not saying commercial is definitely bad, just questioning both sides of the coin. The piece I can't see is what's the driver for a reversal in the trend on commercial. The high street is dying so I can't see recovery there. I'll ask you this...what gross yield are you targeting on small commercial? What level could you fund it at?
@@ChrisLee-yr7tz Good points well presented. I don't own anything on the high street. Small businesses are queued up to rent light commercial units from me. Motor trade premises obtain premiums. Small warehouse units. And so on I agree with avoiding the high street. They have to go somewhere. Great interesting discussion 👍
My first buy to let was in 1993. There were no buy to let mortgages the market for buy to,let had t emerged, as a single parent bringing up my daughter on my own instead of getting a bigger house because I worked hard to pay the mortgage off. I bought another property and rented it out. Since then I’ve bought 5 houses/flats at various times did the, up and rented them out. Now I only have 2 apartments I’m letting.
Another problem is in a couple of years your rented houses will need to reach a C rating EPC, in some case this isnt going to happen without spending thousands especially if you have an end terrace or the property has a room in the roof, I am a domestic and commercial surveyor, in two days the office has had enquires from two housing associations totalling 950 homes, they are panicking , so should you, some properties would need over 20k spending on them which I have recently visited, wall insulation, room in roof insulation, double glazed throughout to achieve a C rating, tough times for landlords.
I think the EPC of C will be changed to D. It would be nigh on impossible for the majority of our old housing stock to reach that goal. If it is going to be C then renters will be living in tents as few homes will be available to rent.
I’ve just bought a 1930s house rated F, it cost me 1200 to get it down to a C. New central etc combi, 400 m loft insulation, got the house for a snip, it’s rented out now for 800, the new rules are just occupational hazards, it helps being a plumber but it’s not rocket science is it,
Hi Justin, you said the house wasn’t mortgageable but you paid stamp duty…this could actually be reclaimed if the house was uninhabitable, let me know if you want more info, good video.
Thank you, for making this video. This is very helpful in understanding buy to let. I have seen many video but this has been the most honest and realistic of all videos have seen yet on you tube. Going to check your website now.
Just off the phone today again from LNPG Justin, they are great. So far this year alone since becoming a member I have saved thousands on a kitchen and today I saved over £100 on a Gas Hob which will be installed as well as the old appliance taken away.
What a great attitude you have. Bad tenants and surprise costs can dampen your spirit over time. Selling all my properties it’s definitely not a passive business. Good luck to you.
Thanks! Appreciate that a lot. Property definitely comes with a lot of ups and downs 😅 shame to hear you’re selling all your properties, but I can understand it’s the right decision for some people due to section 24 tax changes, profitability, and because of interest rates!
Houses should be affordable for working people to live in, not for greedy bastards to make a killing out of. You lot and the dinghy boys are the reason we are in this problem of rip off property prices 👹 Roll on the property price crash.
@@JustinWilkins I kept houses. The ones I sold were blocks of flats. 2 x 4 flats1 x 3 flats You get one bad tenant in there, it ruins it for everyone. It was like having 11 kids at Tims. Stressful
Remember the times in the late 80's and early 90's. It would be interesting to see how they all do with a 6 or 7% plus interest rates. It was around 13% interest in 1990. Remember not being able to find renters either. Sell now and buy later at discounts.
Can imagine those times were tough! One of the worst ones in multiple decades. I was brought up hearing those stories - I’m fully prepped and ready to see tougher times. Considering the insane shortage of rental houses, I don’t think there will be a shortage of renters. And if houses are bought right, and locked in on long term fixed rates, there shouldn’t be a need to sell and try to time the market
Did interest rate rises play a part in your decision? At the start your 80k mortgage was costing you £154/mth, by the time your 2 yr deal was up and you had to refinance that 80k mortgage could well be costing you £440/mth. "Assuming" you wouldn't be able to increase your rents and taking into account agent and insurance costs that would leave you with a profit of £51/mth or £612/yr. As you say being a landlord isn't as easy, passive and stress fee as some make out. Did you not just think I could put my £13k initial equity in a savings account at 4.5% and get £49/mth or £585/yr and get a genuinely passive income and I'd only be losing out on £2/mth and saving myself a load of aggrevation?
As a UK home owner and someone who has experience with landlords, I suspect new buy to let landlords (in the last 5 years) will suffer greatly with losses that may become unsustainable. One thing that wasn't mentioned is a massive correction in property prices, it has long been predicted that UK house prices aren't sustainable and something will have to give and I'm afraid this is on the horizon, the smart money is getting out while they still have the chance.
@@nickb8006 I'm not entirely sure this time is the massive correction, I'm 54 and many times in my life I've thought this can't carry on and still house prices have stabilized and then continued rising.
@boxingtruth2167 I totally agree with UBI, it won't be long before driverless vehicles, AI, and robots take most of the employment, all the Government need to do is workout how much back tax people like Amazon need to pay as they have displaced more workers than most and if companies like that think that an extra tax (automation tax) isn't going to be levied on them then they can think again. Having no work seems bad but I suspect most will find hobbies that will turn into professions, trying to future proof my Son's employment chances has been hard but we have chosen dentistry, something hard for automation to do?
Expensive lessons, but ones that will last a lifetime! Understanding the cause of damp is crucial to how you solve the issue and how much it will cost to do so. My advice would be to take a damp meter (~£10) round on viewings, that way you know if you need to factor in work to remedy it.
Better to use a renovating, lime based plaster and contract matt paint pal so it's breathable. Damp is mainly condensation trapped behind the gypsum based plaster. 👍
Great video. I’m 25 years in this business and you have the right understanding. Property is long term, not easy and not passive. However, I think your wrong about selling. Occasionally it’s the right thing to do… boost cash flow, opportunity, drop a bad egg etc.
@JustinWilkins I've been following you from nearly the start (I think), always like your videos but I think it's only fair to cover tax implications, so many TH-cam property people don't and the tax is a big part of it, we feel the pain every year 😅
@@JustinWilkins No. You've missed the point of my comment. I wasn't accusing you of not paying tax. I was simply expecting you to have mentioned it in your very informative video. I.e. you mention the £575 rent but unless you're register as a LTD company income tax is due on the full amount; gross as opposed to net. Also the tax on the capital gain is worth a mention especially as you express an interest in capital growth. And, since our lovely chancellor has reduced the tax free allowances which are diminishing over the next couple of years.
My rule is, as it always was pre 1997, that unless you can buy a property with 100% cash, you have no business being a landlord. We are going back to the days before easy cheap finance and that's a good thing.
Depends what interest rate you can get. Currently with 25% deposit get 4.5% on 2 year fixed on a £70,000 mortgage. That makes it very manageable as I also have a full time job and no other regular large monthly expenses. So rent plus income into the mortgage means I can pay off in under 4 years. So I'd say it also works if you don't have a mortgage or rent to pay yourself.
@JustinWilkins my issue with it is that you need a high deposit and its a lot of risk involved. compared to blue chips aristocrats that pay 5% per year and money can be pulled out instantly. This is why i do not like BTL. Maybe if you didnt need a 25% deposit, id give it a whirl. The average earner cannot afford to put 25% on a property unless they want to waste time doing so as the other means are more efficient.
I could probably find this somewhere, but how old are you buddy? I'm currently on 3 deals this year, trying to get it to 7. Thanks for all the gems in these videos.
Plan was to potentially refinance after 2 years and take out additional equity, rather than selling. However in hindsight it was the wrong decision and in 2021 I didn’t see the multiple rate increase coming!
@JustinWilkins ah ok, to refinance. Sure, I wasn't suggesting you should've guessed what would happen. I've always gone for 5yr just to be cautious, but that's also because I haven't gone on to increase borrowings after the purchase.
because over 2 years the rate was the lowest. Investors are not that smart if they did not check back at past charts indicating interest rate averages. They would have seen 7% is the average not 2% which is not the norm.
You can’t rely on tenants airing a property properly. They might dry clothes on radiators, cook with no lids on pans and shower without using an extractor fan or open the window.
Yes you’re absolutely right! There are some preventative measures such as; humidity linked extractors, air vents, etc.. but really it comes down to regular visits from the agent and working together with the tenant to try and prevent issues happening.
I trhink the round-up at the end was very important. With the hike in interest rates and general increase in property prices across the board, there is very little yield left on the table (if any) for new investors. If you can weather the storm for now and get a property that has better capital gain potential in the future, it'll probably pay off better than a slow appreciating property with yields being so low at the moment.
Real house prices are the same in Q2 2023 as they were in Q2 2003. And since the peak in 2007 to today house values have declined by £70k. The Nationwide Data shows this clearly and what ‘property investors’ do not realise is that they have essentially been carrying out ‘inflation trades’ assisted by low interest rates inflating away debt. Profits are exaggerated if the value of the money between two intervals is not taken into account.
Great video Justin Interesting that the you tube algorithm only show me your videos now though this information would of been more useful months ago :) well explained Just wondering though in your video you said you couldn't buy many properties as you would of liked so is it not possible to use private investors to fill the gap with purchase refurbish refinance if its not can you explain what the issue is with this as i see many property entrepreneurs say oh yes get finance from investors ? but you have said you would rather use cash in the bank so maybe you could explain if their is some risk that some people are not telling people ? So do you have any videos on how you find private investors loans and what the pitfalls are that many people don't realize can happen ? not many people cover this ? thank you :)
Definitely wasn’t the most profitable purchase in the world. It was never intended to be a flip, hence why I held it for a few years, but I made some money off the rent and I eventually sold it at a much higher price. But the costs / took away a lot of the profit margin. A lot of lessons learnt on this house!!
Is that Lancing/Broolands industrial estate, the weird red building looks familiar? On a practical note, u said ur profit was 23 grand over 2 years, I think u should take off about 8 grand from that profit as that is what u would get for roughly 80 thousand pounds at 5% interest during the last 2 years. A solid 15 grand...just too many people don't cost inflation or interest into their equations!
Inflation is exactly the reason I have made more money! But do I need to deduct it from my profit, personally I don’t think so. Inflation or not that money still landed in my bank account 🙂 But overall I understand what you’re trying to say and appreciate it 🤝
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@@JustinWilkins "Inflation is the reason I have made more money", u made more pounds, u did not make more money due to inflation!
Lots! You are best to speak with a mortgage broker to get access to them. Not many 'high street lenders' are good when it comes to buy-to-let mortgage products.
Unlikely as I wasn't born then! 😂 I think you missed a part - I mention that the kitchen cost was £1900 and kitchen fitting was £1550, that totals £3450 (which actually isn't that cheap)...
Right now would be a good time to get out of the buy to let if you are borrowing to buy.. Possibly try later after the large drop incoming.Interest levels are going higher in the future
I'm flipping just now til likely end of next year. The interest rates likely won't go to as low as we seen them but after they peak at 6% many economists are expecting to see it gradually reduce to 3.5%
I'm new to your channel and found this video insightful and honest... I wish you well on your journey which area of UK do you think there is capital growth potential?
Thanks Richard! Glad it was useful. There lots of great areas coming up in value - mainly within the north of the uk. Parts of Yorkshire, North West and North East. I’ve mainly invested into the north west, but my first few purchases were within slightly higher risk areas, as I bought cheaper properties with high ROI potential. Whilst I’ve been very lucky with these, and bought right, my goal is to purchase in slightly better quality parts of these areas going forward 🤝
But how much has the house you’ve bought gone up in the same time Plus how much interest did you pay on your mortgage you had on the property People forget to add that up Many people purchase a house for let’s say £100 k They pay the mortgage on it for 20 years And then sell it for £200 k And think and tell everyone they made 100k But if they added all the mortgage payments up The house actually cost them 220 k So they actually lost 20 k
I started my journey in slightly riskier areas where ROI and cashflow was higher, and although capital growth has been good to me. I’d like to focus more attention onto the best areas possible within the north west and Yorkshire 😃
Hi Justin thanks for another Quality video!! I am quite new to this but learning so much so fast. I wanted to find out what does that £12-£13k money left in consist of in this deal ??
I live in Australia, and property here is extremely expensive. So, contrary to the US and UK, you cannot buy a detached or attached property for 50k, and something like this in Australia would be 400-500k.
Interesting video Justin, think you spent too much on refurb and agent fees. I’ve been buying properties and renting them out as well as managing other peoples property. I’ve done this for 12 years now and became financially free. Good luck on your journey
Would agree with you on both points actually. Refurb was a really big learning curve, but the managing agent was more of an active choice as I love to be completely hands off! There’s definitely better value agents out there though. Great work doing this over 12 years! Really showing that it’s worthwhile in the long term 👏 thanks for watching
Yes, I would have adviced to do the reverb himself, to learn by doing and not just pay a builder, also I think the original house just looked like it needed a good clean, and some paint.. I would not reverb a property like that, if he spend £2000 into perking it up, the house would still sell for £82K which would have given him a easy £30k.... but this is just my uneducated quess..
As an ex-landlord of a single property, now ‘squared away’ with the tax man long ago, I had a rule, but I cannot say it was good or bad, just it was my rule. I only bought a property that was equally useful as a letting or bought property. This is not what buy-to-let landlords do. The classic is an area nose-to-tail with terraced housing and it has already ‘tipped’ into a rental area predominantly. This generally means, any young couple etc, will want not to buy there, and anybody with backing, eg mum & dad etc, will go up-market and buy elsewhere. Hence, rental ghettoes. Flogging a property, is all about timing and disposing of the most adverse property first. Just my opinion. The best timing I ever heard of was someone whose elderly friend had a son doing IT work for banks in London…the summer of 2007, saw them dispose of their property after it had gained £100k in value, and my goodness, they did select a really amazingly good time to sell, didn’t they? I don’t believe anyone is that lucky. They bought in a special situation and they sold in one. Their friend’s son must have had the word down there in London as to the scandal of bundled risk that was about to go t!ts-up, and they literally sold at the peak time, bar a few days I’d say - which is perfect, not merely good, absolutely perfect. So when we speak of terrible people insider trading in shares, and managing to sell just before a crunch by some miracle that we don’t believe, just realise the system is made for those people…nobody tries to catch them, nobody has a chance except one in a hundred thousand of getting a whiff of something naughty. This is way below the chance of getting nabbed for embezzlement of company funds or whatever, this is insider information running the market. So, the question now is going to be answered in retrospect. Whomever sold up at exactly the right time, knew what was coming before anyone else, but we don’t know when that is until afterward. It’s especially handy to know what the effect of government legislation will be, and crucially, the exact date it will take place…the ‘bedroom tax’ renting limit for benefit claimants, chilled all movement on tenants in some areas for years, because no big project was undertaken to root out who had an extra room, they just reviewed your case if you tried to move. As a result, far fewer people moved. Many tenants simply froze in place, with their ‘extra bedroom’ perhaps unknown and retained forever. But the government is always on the side of landlords, whatever’s said or done - because about half of the MPs become landlords eventually, if not already before they get elected. Either them, or their spouses to hide it, it’s all pretty normal stuff - and thus, they really represent an interested minority without anyone having to say much at all. Everyone works hard, that isn’t what enables someone to become a landlord. Take care all.
Knowing exact timing is defo crooked but tbh I saw the writing on the wall in 2019 when I found my one and only rental property suddenly go tits up, Tennant's left no notice and wrecked house owing rent, the changing tax rules and the cost of renovation made my decision for me and I sold, it was clear that gov had it on for landlords and the low interest rates could not stay forever, I was early by a year or 2 so missed out on the biggest gains but glad I'm out, the shxt is really going to hit the fan once rates filter down to more and more people.
That is all well and when property goes up, but the matket us dipping now and i believe will drop 30% in the nexf 2 years as more people have to refinance
@@JustinWilkinsjust a bit of advice. May be if you invest in land if you have a budget that could give you many options in the future. You can always build your home that would be one option. As a British Pakistani. I have invested in land in my home country. Just wanted to give you a tip. All the best in life.
Very interesting! After going through the process of building an extension last year, it’s somewhat become a dream of mine to build a house. Whether for myself or to sell! Would be a very rewarding thing to do I can imagine
Awesome video- thanks for sharing! How do you find being a remote landlord? I'm based in the South of UK and whilst the prices up north are incredibly appealing, I'm worried about being so far away for when the inevitable problems arise....
Not lost much, sold it to an investor myself without an estate agent. Was at the end of my fixed mortgage so no big ERC payment. Just tax really. Any lost money is valuable for the lessons learnt along the way
I don’t agree with the go for yield or growth approach, it’s total return you should seek. In vanilla BTL going for yield results in multiple properties in cheap areas that become long term a burden to manage. Going for growth (or perceived growth) results in investment following fads like property in “boom” areas or “Nottingham”.
sell everything the MOTHER of all Property crashes is coming . interest rates will keep rising and unemployment will go through the roof .And more mortgage products will be pulled these are just a few of the factors that will cause the crash
@ RSA . Please mark my words , property crash will not happen, the properties value will drop by 15% to 20%. Majority of landlords have enough equity in their properties to weather the storm. Don’t know if you are a landlord or a property investor? If you are , feel free to sell up . But people like me can weather this storm , and we will come out on top . Cheers 🥂
@@victoredwards3959 if you sell 1 house now at the declining peak you will be able to buy 2 or 3 when the crash happens . That would be the smart thing to do as an investor
@@victoredwards3959 depends if they have been aggressive with their refinancing, if a landlord has always left only 25% equity and is on interest-only mortgages it could be a little painful!
Out off curiosity mate cause you look very young. Where did you get the initial money from? It is not a cheeky question, but i myself been having high profile jobs and it is strange how someone that young got so much cash in our era.
I don’t mind answering, I enjoy sharing - worked hard to save up £16k. You can revisit my earlier videos and I share this … After the first property I didn’t have any spare money. So I learnt how to launch a business which now generates enough cash that I can buy a couple of properties per year. I also learnt how to raise investor finance to purchase properties, then repay it within 6 or 12 months. I wish I’d left working for corporate companies sooner, because I’d be such much further ahead. In my opinion I’m behind where I should be. I’m early 30s and know tons of young 20 year olds killing it!! 😂 so I need to work harder.
Good video, I've been selling also, have you looked into HMO investments, better cash flow and capital appreciation, probably no bridging loan tho due to the time frame and cost over 8 months
@@odysseasv7138 Ok thanks... You pay Capital Gains Tax if you’re a self-employed sole trader or in a business partnership. Other organisations like limited companies pay Corporation Tax on profits from selling their assets. So basically if you are buying and selling property a lot, do it through a Ltd company.
Interesting point of view. I don’t think it’s the primary cause. Certain parts of the uk definitely have a higher density of investment properties, but I’d imagine the large amounts of money printing and inflation over the last few decades can’t have helped either 🤷
Council or private, you're still renting. What's the difference? BTL relieves pressure on council backlog and gives the tenant a choice. What's the problem?
@@knowitall3503buy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
@@JustinWilkinsbuy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
I've asked this question on other channels. Could someone with a 9-5, that already has a Buy to Let, be able to also take on a HMO with a full time job? Everyone is telling me it's too much of an ask working 9-5 and running a HMO.
I’ve never purchased or completed a hmo - I’ve just done buy-to-let properties (2 and 3 beds). I know people that have done this whilst working full time, so I can’t see why it’s not possible. It will be a large task and undertaking, but with the right team im sure it could be done!
@@JustinWilkins Thanks for replying Justin. Everyone is saying that's where the big money is these days. Single lets have no profit anymore with these current Interest rates. But a HMO, Five people, each paying £600 a month. That's £3,000 a month. Just dont know if I could manage it and work 9-5!
@@wicked-witch-of-the-westabsolutely no reason why you can’t. I know many that do and see very successful. Circumstances are specific here but it can definitely be done. Good luck
My LL put up every year the rent. We live in London. Yesterday her agency told us she wants a rent increase of £230 per month. £1.900 for a month for 27sqm. Guys, don’t give in. The LL are out of order. We found 1km away something £540 less expensive. Don’t give in. This is out of order.
Shame to hear that. In most instances aren’t purposefully trying to make your life difficult, landlords are just reacting to the continuous interest rate changes. The government know that interest rate rises also increases rents, and that’s what they are trying to do in order to reduce inflation. If you aren’t happy I’d recommend blaming the government or economy over landlords - we’re just trying to survive and make and income like you are in most cases
You seem like the most genuine and transparent property youtuber! Thank you so much for your honest and humble video
Appreciate that a lot ! 🙂🤝
Thanks for watching
Sunday landlords being eliminated by interest rates. Actually good move on his part as prices of houses will go lower.
Just increase the rent.
@@independenciafinanceirauk4152 people who don’t own the place outright have no reason to let it to others.
@@kristinesharp6286exactly, we’ll said.
Not in London.
haha, any suggestion for people who took his lesson and brought a house last year?
Thanks for being so open and transparent with figures and all details to help others.
Thanks for watching 🙌
Yeah credit as most TH-camrs deliberately leave out the reality
@@bigbawsdogg 🤝 here to share the good and bad!
@@JustinWilkins nice timing; the top is in
My mortgage on my last BTL property has gone up from £183 to £410 in the last few years plus 55 agents fee plus 20 a month insurance
That’s almost £500 a month
Plus general repairs plus gas certificate etc
And your very close to the £595 a month rent
So house went up for sale and is sold and currently going through smoothly
This video has been a lesson. Never realised BTL mortgages were so low compared to standard mortgages. If you don't mind me asking where is your property?
@@chair56789BTL mortgages aren’t so low they are on an interest only payment meaning the debt never goes down the actual interest rate is higher than a normal mortgage
How in the Jesus was it so cheap? Is it normal for buy to let's to be so cheap?
@@scittyboom1989I see
@@chair56789 Sunderland
Sold for £130k for a tiny 2 bed semi
I will never sell any of my houses,, and if the market price drops then I will be after some bargains,, there are lots of tenants out there wanting to rent..
Hi Justin, I’ve a number of Victorian terraced properties. If I was starting again I’d have invested in newer properties (built after 1990) because they are much less prone to damp, since they have cavity walls and a solid concrete ground floor with a proper damp proof membrane. Will be interested to see what your next investment looks like. Cheers David
The thing with newer properties is that they're quite a bit smaller & typically further out of the town/city centre. As long as you're on top of the damp proofing and also look at insulation, then they actually work really well.
One of the things I'm doing with my properties is insulated plasterboard both front & back, as the actual side walls are insulated well enough. This fairly simple solution makes a massive difference and has corrected the (condensation) damp issues in the properties where I have done it. Another option is insulated lining paper, I did that in attic bedrooms & it makes a massive difference & goes from a building task into a relatively simple decorating task. The heat saving is really impressive as well, especially with the current state of bills!
@@marklewis3023 Thanks for the insight. It does sound like a good idea. I’ve also preempted internal mould on cold outside walls by using a kitchen & bathroom paint but throughout the whole house. It’s more expensive than a standard emulsion but contains a mould inhibitor so the house is less likely to have mould growth.
I've got a loft PIV unit in my older properties, since doing so 2 years ago, I've not had problems with condensation in any of them
Hope you have some spare cash to bring your old damp prone victorian terraces up to the new EPC standards which is due soon.
@stevenhull5025 deadline changed, was 2025 and now 2028, so not soon.
Hi, young man.
I bought my first property over 40 years ago.
I strongly advise you to look at small commercial property.
Much more tax efficient than residential.
It is easier to deal with tenants .
Growth is huge.
Good luck
Thanks Joe, interesting advice. Appreciate you taking the time to share - il explore it further!
I thought commercial valuations have been taking a battering?
@ChrisLee-yr7tz
Surly that makes it a good time to buy?
It's all about the return on investment, don't you agree.
Commercial loans qualify as tax deductible,increasing the profits .
@joeclifford4953 Yep. I think yield and long-term capital growth are just as important. It's no use earning a high yield if the capital value is declining.
They both have to be taken together.
At the end of the day you have to PV all cash flows to work out the value of something.
I'm not saying commercial is definitely bad, just questioning both sides of the coin. The piece I can't see is what's the driver for a reversal in the trend on commercial. The high street is dying so I can't see recovery there.
I'll ask you this...what gross yield are you targeting on small commercial?
What level could you fund it at?
@@ChrisLee-yr7tz Good points well presented.
I don't own anything on the high street.
Small businesses are queued up to rent light commercial units from me.
Motor trade premises obtain premiums. Small warehouse units.
And so on
I agree with avoiding the high street.
They have to go somewhere.
Great interesting discussion 👍
My first buy to let was in 1993. There were no buy to let mortgages the market for buy to,let had t emerged, as a single parent bringing up my daughter on my own instead of getting a bigger house because I worked hard to pay the mortgage off. I bought another property and rented it out. Since then I’ve bought 5 houses/flats at various times did the, up and rented them out. Now I only have 2 apartments I’m letting.
👏👏👏
@@JustinWilkins thank you !
Another problem is in a couple of years your rented houses will need to reach a C rating EPC, in some case this isnt going to happen without spending thousands especially if you have an end terrace or the property has a room in the roof, I am a domestic and commercial surveyor, in two days the office has had enquires from two housing associations totalling 950 homes, they are panicking , so should you, some properties would need over 20k spending on them which I have recently visited, wall insulation, room in roof insulation, double glazed throughout to achieve a C rating, tough times for landlords.
I think the EPC of C will be changed to D. It would be nigh on impossible for the majority of our old housing stock to reach that goal. If it is going to be C then renters will be living in tents as few homes will be available to rent.
I’ve just bought a 1930s house rated F, it cost me 1200 to get it down to a C. New central etc combi, 400 m loft insulation, got the house for a snip, it’s rented out now for 800, the new rules are just occupational hazards, it helps being a plumber but it’s not rocket science is it,
Hi Justin, you said the house wasn’t mortgageable but you paid stamp duty…this could actually be reclaimed if the house was uninhabitable, let me know if you want more info, good video.
Thank you, for making this video. This is very helpful in understanding buy to let. I have seen many video but this has been the most honest and realistic of all videos have seen yet on you tube.
Going to check your website now.
Just off the phone today again from LNPG Justin, they are great. So far this year alone since becoming a member I have saved thousands on a kitchen and today I saved over £100 on a Gas Hob which will be installed as well as the old appliance taken away.
Great result Joe 🙌🙌 pleased to hear that and thanks for watching!
What a great attitude you have. Bad tenants and surprise costs can dampen your spirit over time. Selling all my properties it’s definitely not a passive business. Good luck to you.
Thanks! Appreciate that a lot. Property definitely comes with a lot of ups and downs 😅 shame to hear you’re selling all your properties, but I can understand it’s the right decision for some people due to section 24 tax changes, profitability, and because of interest rates!
Houses should be affordable for working people to live in, not for greedy bastards to make a killing out of. You lot and the dinghy boys are the reason we are in this problem of rip off property prices 👹
Roll on the property price crash.
I sold 11 of my btl’s. Kept 4.
The relief is beautiful
One love
Out of interest, what attributes did the 4 properties you keep have over the others? Would be interesting to know
why do you feel relief? :)
@@JustinWilkins I kept houses. The ones I sold were blocks of flats.
2 x 4 flats1 x 3 flats
You get one bad tenant in there, it ruins it for everyone.
It was like having 11 kids at Tims. Stressful
@@esp643 Stressful being a landlord. Particularly blocks of flats
Thank you sharing your experiences. Do you have a rough guide on how much you spend on each property e.g. by sqft or sqm?
Remember the times in the late 80's and early 90's. It would be interesting to see how they all do with a 6 or 7% plus interest rates. It was around 13% interest in 1990. Remember not being able to find renters either. Sell now and buy later at discounts.
Can imagine those times were tough! One of the worst ones in multiple decades. I was brought up hearing those stories - I’m fully prepped and ready to see tougher times. Considering the insane shortage of rental houses, I don’t think there will be a shortage of renters. And if houses are bought right, and locked in on long term fixed rates, there shouldn’t be a need to sell and try to time the market
It’s worse now than it was then the cost is higher when you look at the price of mortgages now vs then
You got an absolute bargain with the refurb on that property, I don't think you'd be able to hit those figures in the current market.
Greedy bastards!!
Did interest rate rises play a part in your decision? At the start your 80k mortgage was costing you £154/mth, by the time your 2 yr deal was up and you had to refinance that 80k mortgage could well be costing you £440/mth. "Assuming" you wouldn't be able to increase your rents and taking into account agent and insurance costs that would leave you with a profit of £51/mth or £612/yr. As you say being a landlord isn't as easy, passive and stress fee as some make out. Did you not just think I could put my £13k initial equity in a savings account at 4.5% and get £49/mth or £585/yr and get a genuinely passive income and I'd only be losing out on £2/mth and saving myself a load of aggrevation?
Justin, please do a video on the areas you are focussing on. thank you
When you say remote lamdlord. How remote? What area is this in? How would you identify areas if capital growth?
As a UK home owner and someone who has experience with landlords, I suspect new buy to let landlords (in the last 5 years) will suffer greatly with losses that may become unsustainable. One thing that wasn't mentioned is a massive correction in property prices, it has long been predicted that UK house prices aren't sustainable and something will have to give and I'm afraid this is on the horizon, the smart money is getting out while they still have the chance.
Those late to an economic cycle, when everyone and their dog is interested and fully 'invested' always get burnt.
@@nickb8006 I'm not entirely sure this time is the massive correction, I'm 54 and many times in my life I've thought this can't carry on and still house prices have stabilized and then continued rising.
@boxingtruth2167 Since long before 2008. I'd suggest the 70s. But yes, in particular that year the gap widened significantly
Roll on the property crash 😁
@boxingtruth2167 I totally agree with UBI, it won't be long before driverless vehicles, AI, and robots take most of the employment, all the Government need to do is workout how much back tax people like Amazon need to pay as they have displaced more workers than most and if companies like that think that an extra tax (automation tax) isn't going to be levied on them then they can think again. Having no work seems bad but I suspect most will find hobbies that will turn into professions, trying to future proof my Son's employment chances has been hard but we have chosen dentistry, something hard for automation to do?
Got out the game a few years ago and took early retirement. Gets harder every year
100% has got harder every year for a while now, but I do think this will bring great opportunity in the near future
You dont instal damp proof membranes in old single walls houses.
Expensive lessons, but ones that will last a lifetime! Understanding the cause of damp is crucial to how you solve the issue and how much it will cost to do so. My advice would be to take a damp meter (~£10) round on viewings, that way you know if you need to factor in work to remedy it.
100%, damp meter was one of the best purchases I made, just took me too long to buy it 😂 thanks Richard!
Better to use a renovating, lime based plaster and contract matt paint pal so it's breathable.
Damp is mainly condensation trapped behind the gypsum based plaster. 👍
@@pasto312agree completely
Great video. I’m 25 years in this business and you have the right understanding. Property is long term, not easy and not passive. However, I think your wrong about selling. Occasionally it’s the right thing to do… boost cash flow, opportunity, drop a bad egg etc.
Just catching up with this now. Totally understandable. Great video - glad to see things are going well for you.
Thanks mate! Always appreciate you watching and likewise 🤙
Roll on the property crash 😁
Nice to see you here 😀. Looking forward to your upcoming car flipping videos
How to check property owners detail online?
Did you mention income tax and capital gains tax, sorry if I missed it. How much was your CGT bill?
Didn’t mention it in the video as wanted to focus on the pros and cons of the actual ownership, rather than go detailed on the profits , vs tax etc
@JustinWilkins I've been following you from nearly the start (I think), always like your videos but I think it's only fair to cover tax implications, so many TH-cam property people don't and the tax is a big part of it, we feel the pain every year 😅
Very informative but no mention of Tax?
You’ve missed the point of the video entirely. Of course il pay tax lol
@@JustinWilkins No. You've missed the point of my comment. I wasn't accusing you of not paying tax. I was simply expecting you to have mentioned it in your very informative video. I.e. you mention the £575 rent but unless you're register as a LTD company income tax is due on the full amount; gross as opposed to net. Also the tax on the capital gain is worth a mention especially as you express an interest in capital growth. And, since our lovely chancellor has reduced the tax free allowances which are diminishing over the next couple of years.
My rule is, as it always was pre 1997, that unless you can buy a property with 100% cash, you have no business being a landlord. We are going back to the days before easy cheap finance and that's a good thing.
Depends what interest rate you can get. Currently with 25% deposit get 4.5% on 2 year fixed on a £70,000 mortgage.
That makes it very manageable as I also have a full time job and no other regular large monthly expenses.
So rent plus income into the mortgage means I can pay off in under 4 years.
So I'd say it also works if you don't have a mortgage or rent to pay yourself.
Will this model work with higher rates and falling house prices.
Still works but is much harder! I’m purchasing a couple of houses right now, and il be doing the same strategy on those 2
😂
Obviously not when landlords are selling in droves.
Amazing video Justin! Been a little busy but catching up on your content and just wow... good on you man. Very inspiring!
Pepe! Good to hear from you man. Thanks for watching
i thought getting a BTL on a second property and the costs are not worth it.
Depends on a lot of factors, but with most of my properties it’s been more than worth it!
@JustinWilkins my issue with it is that you need a high deposit and its a lot of risk involved. compared to blue chips aristocrats that pay 5% per year and money can be pulled out instantly. This is why i do not like BTL. Maybe if you didnt need a 25% deposit, id give it a whirl. The average earner cannot afford to put 25% on a property unless they want to waste time doing so as the other means are more efficient.
Was capital gains tax and general income tax taken into account in the calculations.
No I didn’t share these in this video
Nice breakdown, i got one question though - what do you mean by "money left in" and how is this calculated?
I could probably find this somewhere, but how old are you buddy? I'm currently on 3 deals this year, trying to get it to 7. Thanks for all the gems in these videos.
When you originally took out the mortgage why did you only fix for 2 years?
Plan was to potentially refinance after 2 years and take out additional equity, rather than selling. However in hindsight it was the wrong decision and in 2021 I didn’t see the multiple rate increase coming!
@JustinWilkins ah ok, to refinance.
Sure, I wasn't suggesting you should've guessed what would happen. I've always gone for 5yr just to be cautious, but that's also because I haven't gone on to increase borrowings after the purchase.
because over 2 years the rate was the lowest. Investors are not that smart if they did not check back at past charts indicating interest rate averages. They would have seen 7% is the average not 2% which is not the norm.
Please can someone use money made outside salary for mortgage
Where was this house?
North west of England 🙂
@@JustinWilkins thanks bro
Who did you use for the bathroom work?
You can’t rely on tenants airing a property properly. They might dry clothes on radiators, cook with no lids on pans and shower without using an extractor fan or open the window.
Yes you’re absolutely right! There are some preventative measures such as; humidity linked extractors, air vents, etc.. but really it comes down to regular visits from the agent and working together with the tenant to try and prevent issues happening.
That comes from the floor, you are not solving the problem like this, lol.
I trhink the round-up at the end was very important. With the hike in interest rates and general increase in property prices across the board, there is very little yield left on the table (if any) for new investors. If you can weather the storm for now and get a property that has better capital gain potential in the future, it'll probably pay off better than a slow appreciating property with yields being so low at the moment.
Thanks for sharing, what was your final margin in percentage% from this buy and flip because you did finally flip the property in the end.
Real house prices are the same in Q2 2023 as they were in Q2 2003. And since the peak in 2007 to today house values have declined by £70k. The Nationwide Data shows this clearly and what ‘property investors’ do not realise is that they have essentially been carrying out ‘inflation trades’ assisted by low interest rates inflating away debt. Profits are exaggerated if the value of the money between two intervals is not taken into account.
Great video Justin
Interesting that the you tube algorithm only show me your videos now though this information would of been more useful months ago :) well explained
Just wondering though in your video you said you couldn't buy many properties as you would of liked so is it not possible to use private investors to fill the gap with purchase refurbish refinance if its not can you explain what the issue is with this as i see many property entrepreneurs say oh yes get finance from investors ?
but you have said you would rather use cash in the bank so maybe you could explain if their is some risk that some people are not telling people ?
So do you have any videos on how you find private investors loans and what the pitfalls are that many people don't realize can happen ? not many people cover this ?
thank you :)
Another clear and concise video from the big dog Justin, keep up the great work and content!!
Thanks Lizzy & Ben 😃🏆
Big views only from now on!
Great summary, I have been n property for a long time and wish I had documented my journey like this
I have a property that I need a full refurbishment for, can you please advise a reasonably priced good builder for me?
So a total of 2k profit, all in, inclusive of the 8k roof and damp proofing bill prior to selling ??
Definitely wasn’t the most profitable purchase in the world. It was never intended to be a flip, hence why I held it for a few years, but I made some money off the rent and I eventually sold it at a much higher price. But the costs / took away a lot of the profit margin. A lot of lessons learnt on this house!!
I take it that the mortgage is interest only, yes?
Correct, yes it was IO 👍
Is that Lancing/Broolands industrial estate, the weird red building looks familiar? On a practical note, u said ur profit was 23 grand over 2 years, I think u should take off about 8 grand from that profit as that is what u would get for roughly 80 thousand pounds at 5% interest during the last 2 years. A solid 15 grand...just too many people don't cost inflation or interest into their equations!
Inflation is exactly the reason I have made more money! But do I need to deduct it from my profit, personally I don’t think so. Inflation or not that money still landed in my bank account 🙂
But overall I understand what you’re trying to say and appreciate it 🤝
@@JustinWilkins "Inflation is the reason I have made more money", u made more pounds, u did not make more money due to inflation!
With the current 6% BTL mortgages, yield would be only 3%. Even some current accounts now paying more than that. BTL is dead for sure.
Far from dead
what bank offers mortgages on buy to let on homes under £100k?
Lots! You are best to speak with a mortgage broker to get access to them. Not many 'high street lenders' are good when it comes to buy-to-let mortgage products.
Replaced the rads for £600? Kitchen refurb 1.5 grand? What year was this again? 1987?
Unlikely as I wasn't born then! 😂 I think you missed a part - I mention that the kitchen cost was £1900 and kitchen fitting was £1550, that totals £3450 (which actually isn't that cheap)...
Crushed this video bro! You’re smashing it 🙌🏼
Thanks bro 😎 !!
Regarding the damp issue could the no mess/plaster dryzone rod system not be used ?
thats what i thought
To make any capital gains in the next couple of years you will need some insane deals!
Tough couple of years ahead, but it’ll teach people to be better investors!
Right now would be a good time to get out of the buy to let if you are borrowing to buy..
Possibly try later after the large drop incoming.Interest levels are going higher in the future
Did your profit include cap gains tax? Otherwise that last number is 28% lower.
Correct. Purpose of video was to show pros and cons of ownership, not my tax liability 🙂
Interesting. I was doing this until Brexit and looking to get back into it and not sure whether to wait for further prove tasks.
Thanks! Market is certainly challenging right now, but I do think that with challenges comes opportunity
I'm flipping just now til likely end of next year. The interest rates likely won't go to as low as we seen them but after they peak at 6% many economists are expecting to see it gradually reduce to 3.5%
Hi are you advising not to buy BTL? How long for?
Not at all, I am currently buying other properties for my portfolio. Just a slight pivot and change of property for me 😃
I'm new to your channel and found this video insightful and honest... I wish you well on your journey which area of UK do you think there is capital growth potential?
Thanks Richard! Glad it was useful.
There lots of great areas coming up in value - mainly within the north of the uk. Parts of Yorkshire, North West and North East. I’ve mainly invested into the north west, but my first few purchases were within slightly higher risk areas, as I bought cheaper properties with high ROI potential. Whilst I’ve been very lucky with these, and bought right, my goal is to purchase in slightly better quality parts of these areas going forward 🤝
You said in title you are selling your buy to letS - so selling multiple properties. And interest rates are presumably the issue when you refinance?
Can you put up your list for tacking your damp issue please!
Not a bad profit. I bought a semi 4 years ago (not to rent) for 190, selling for 265 to go up the property ladder so made about 50k on it.
Great work! 👏 did you do much work to it? Or was that just from buying and holding?
But how much has the house you’ve bought gone up in the same time
Plus how much interest did you pay on your mortgage you had on the property
People forget to add that up
Many people purchase a house for let’s say £100 k
They pay the mortgage on it for 20 years
And then sell it for £200 k
And think and tell everyone they made 100k
But if they added all the mortgage payments up
The house actually cost them 220 k
So they actually lost 20 k
@@boyasaka20k to live in a property for 20 years. Not bad if you ask me😂
No boasting please. Ok why not. I made £170,000 profit on a property I bought at auction in Wales. Sat on it for 6 years though.
So after you finish the refurb, you don’t get a snagging survey done by someone else? To make sure things are done right?
Good question - yes I do now either review them myself or with the help of a friend in the industry. But at the time of completing this one I didn’t
Great video. You mentioned about high capital growth. What area that would be?
I started my journey in slightly riskier areas where ROI and cashflow was higher, and although capital growth has been good to me. I’d like to focus more attention onto the best areas possible within the north west and Yorkshire 😃
short term panic ... what are you going to invest in that would do better long term
More properties - not short term panic, moving money into better properties
Hi Justin thanks for another Quality video!! I am quite new to this but learning so much so fast. I wanted to find out what does that £12-£13k money left in consist of in this deal ??
Lack of social housing & landlords buying multiple properties are helping to destroy the fabric of society & communities.
Interested to hear you explain how?
The government isn’t providing rented accommodation so who do you think will? 😂
@justinwalkins could you please share your experience so far joining LNPG in terms of savings etc
Nothing wrong with a quick gain it certainly doesn't deviate from the 'long game' if re-invest in better assets.
100% onto the next projects 😃
Who do you use for bridging? Fees seem very reasonable
Bridging was together money, but at the time the rate was around 0.6% per month. It’s now around 1% per month due to change in the market and rates
I live in Australia, and property here is extremely expensive. So, contrary to the US and UK, you cannot buy a detached or attached property for 50k, and something like this in Australia would be 400-500k.
Interesting - always depends on area. It would be £400-£500k in some parts of the UK too.
Interesting video Justin, think you spent too much on refurb and agent fees.
I’ve been buying properties and renting them out as well as managing other peoples property.
I’ve done this for 12 years now and became financially free.
Good luck on your journey
Would agree with you on both points actually. Refurb was a really big learning curve, but the managing agent was more of an active choice as I love to be completely hands off! There’s definitely better value agents out there though.
Great work doing this over 12 years! Really showing that it’s worthwhile in the long term 👏 thanks for watching
😢Q
Yes, I would have adviced to do the reverb himself, to learn by doing and not just pay a builder, also I think the original house just looked like it needed a good clean, and some paint.. I would not reverb a property like that, if he spend £2000 into perking it up, the house would still sell for £82K which would have given him a easy £30k.... but this is just my uneducated quess..
As an ex-landlord of a single property, now ‘squared away’ with the tax man long ago, I had a rule, but I cannot say it was good or bad, just it was my rule. I only bought a property that was equally useful as a letting or bought property. This is not what buy-to-let landlords do. The classic is an area nose-to-tail with terraced housing and it has already ‘tipped’ into a rental area predominantly. This generally means, any young couple etc, will want not to buy there, and anybody with backing, eg mum & dad etc, will go up-market and buy elsewhere. Hence, rental ghettoes. Flogging a property, is all about timing and disposing of the most adverse property first. Just my opinion. The best timing I ever heard of was someone whose elderly friend had a son doing IT work for banks in London…the summer of 2007, saw them dispose of their property after it had gained £100k in value, and my goodness, they did select a really amazingly good time to sell, didn’t they?
I don’t believe anyone is that lucky. They bought in a special situation and they sold in one. Their friend’s son must have had the word down there in London as to the scandal of bundled risk that was about to go t!ts-up, and they literally sold at the peak time, bar a few days I’d say - which is perfect, not merely good, absolutely perfect. So when we speak of terrible people insider trading in shares, and managing to sell just before a crunch by some miracle that we don’t believe, just realise the system is made for those people…nobody tries to catch them, nobody has a chance except one in a hundred thousand of getting a whiff of something naughty. This is way below the chance of getting nabbed for embezzlement of company funds or whatever, this is insider information running the market. So, the question now is going to be answered in retrospect. Whomever sold up at exactly the right time, knew what was coming before anyone else, but we don’t know when that is until afterward.
It’s especially handy to know what the effect of government legislation will be, and crucially, the exact date it will take place…the ‘bedroom tax’ renting limit for benefit claimants, chilled all movement on tenants in some areas for years, because no big project was undertaken to root out who had an extra room, they just reviewed your case if you tried to move. As a result, far fewer people moved. Many tenants simply froze in place, with their ‘extra bedroom’ perhaps unknown and retained forever. But the government is always on the side of landlords, whatever’s said or done - because about half of the MPs become landlords eventually, if not already before they get elected. Either them, or their spouses to hide it, it’s all pretty normal stuff - and thus, they really represent an interested minority without anyone having to say much at all. Everyone works hard, that isn’t what enables someone to become a landlord. Take care all.
Knowing exact timing is defo crooked but tbh I saw the writing on the wall in 2019 when I found my one and only rental property suddenly go tits up, Tennant's left no notice and wrecked house owing rent, the changing tax rules and the cost of renovation made my decision for me and I sold, it was clear that gov had it on for landlords and the low interest rates could not stay forever, I was early by a year or 2 so missed out on the biggest gains but glad I'm out, the shxt is really going to hit the fan once rates filter down to more and more people.
Can you please make your explanation a bit more in-depth & longer next time….this one was way to short!!! 👍 lol
More like ramblings of a mad man. Buy to let's will make money but need to leverage with caution and focus on location.
I’ve sold most of my BTL and invested in global index funds and now live off the 3% rule.
Interesting, what made your decision to sell most of them?
@@JustinWilkins Index funds are more passive, more tax efficient and liquid. Historically the stock market has doubled every 7 years.
That is all well and when property goes up, but the matket us dipping now and i believe will drop 30% in the nexf 2 years as more people have to refinance
Good luck to you .keep standing on your feet .stay positive .
Thanks! Really appreciated 🙌
@@JustinWilkinsjust a bit of advice. May be if you invest in land if you have a budget that could give you many options in the future. You can always build your home that would be one option. As a British Pakistani. I have invested in land in my home country. Just wanted to give you a tip. All the best in life.
Very interesting! After going through the process of building an extension last year, it’s somewhat become a dream of mine to build a house. Whether for myself or to sell! Would be a very rewarding thing to do I can imagine
What was the EPC rating on the property?
D rating, although epc was old. Potentially could be a C given the works I did
Awesome video- thanks for sharing! How do you find being a remote landlord? I'm based in the South of UK and whilst the prices up north are incredibly appealing, I'm worried about being so far away for when the inevitable problems arise....
I'm a landlord up north and remote landlords from out of the area are generally the properties we have most problems with.
There is no difference. Plenty of contractors to take care of any issues. Just budget them in. Do your due diligence as always.
No mention of tax anywhere...?
Correct, no mention of tax
Did you get a survey done?
Always :D
what about the capital gains tax, there is no mention of this and how much you paid
I will be paying capital gains tax when required. The purpose of the video was to share the pros and cons, not my taxes :)
but how much will you have lost as you try to sell them off ?
Not lost much, sold it to an investor myself without an estate agent. Was at the end of my fixed mortgage so no big ERC payment. Just tax really. Any lost money is valuable for the lessons learnt along the way
I don’t agree with the go for yield or growth approach, it’s total return you should seek. In vanilla BTL going for yield results in multiple properties in cheap areas that become long term a burden to manage. Going for growth (or perceived growth) results in investment following fads like property in “boom” areas or “Nottingham”.
Shouldn’t be any stamp duty on £50k purchase?
Justin do you do mentoring? I would love to buy my first BTL just like your first one so inspiring.
Yes 🙂 please email at program@ property-x.co.uk and il send more info
sell everything the MOTHER of all Property crashes is coming . interest rates will keep rising and unemployment will go through the roof .And more mortgage products will be pulled these are just a few of the factors that will cause the crash
Sell really?
@@jameshaydon4473 inflation and internet rates are linked . Interest rates will go way higher
@ RSA . Please mark my words , property crash will not happen, the properties value will drop by 15% to 20%. Majority of landlords have enough equity in their properties to weather the storm. Don’t know if you are a landlord or a property investor? If you are , feel free to sell up . But people like me can weather this storm , and we will come out on top . Cheers 🥂
@@victoredwards3959 if you sell 1 house now at the declining peak you will be able to buy 2 or 3 when the crash happens . That would be the smart thing to do as an investor
@@victoredwards3959 depends if they have been aggressive with their refinancing, if a landlord has always left only 25% equity and is on interest-only mortgages it could be a little painful!
Out off curiosity mate cause you look very young. Where did you get the initial money from? It is not a cheeky question, but i myself been having high profile jobs and it is strange how someone that young got so much cash in our era.
I don’t mind answering, I enjoy sharing - worked hard to save up £16k. You can revisit my earlier videos and I share this …
After the first property I didn’t have any spare money. So I learnt how to launch a business which now generates enough cash that I can buy a couple of properties per year. I also learnt how to raise investor finance to purchase properties, then repay it within 6 or 12 months.
I wish I’d left working for corporate companies sooner, because I’d be such much further ahead.
In my opinion I’m behind where I should be. I’m early 30s and know tons of young 20 year olds killing it!! 😂 so I need to work harder.
Good video, I've been selling also, have you looked into HMO investments, better cash flow and capital appreciation, probably no bridging loan tho due to the time frame and cost over 8 months
In which city is this house in please
North west, specifically I tend to buy in Liverpool and St Helen’s 👍
Very informative and knowledgeable.
Cheers Peter 🤝
SELL THEM ALL. Did I miss it on your vid , I didnt see you work out the tax on the 23k profit.
Haha I will never sell them all! I did not work out the tax on the video
In that case you’re not being transparent enough Justin.
Capital gains tax to be paid within 60 days of selling....otherwise you get fined ....for an individual....not sure if same rules apply to a company?
Company doesn’t pay CGT.
It pays business tax(19%) on any profits
@@odysseasv7138 Ok thanks... You pay Capital Gains Tax if you’re a self-employed sole trader or in a business partnership. Other organisations like limited companies pay Corporation Tax on profits from selling their assets.
So basically if you are buying and selling property a lot, do it through a Ltd company.
With the uk currently financially finished will prices drop or have they started dropping already
to little supply
What does flat roof mean?
The flat roof over the top of an extension usually
@@JustinWilkins so was the flat roof repaired or replaced?
BTL should be banned. BTL is a primary cause of HPI and why so many people are in pain today.
Interesting point of view. I don’t think it’s the primary cause. Certain parts of the uk definitely have a higher density of investment properties, but I’d imagine the large amounts of money printing and inflation over the last few decades can’t have helped either 🤷
Council or private, you're still renting. What's the difference? BTL relieves pressure on council backlog and gives the tenant a choice. What's the problem?
@@knowitall3503buy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
@@JustinWilkinsbuy to let itself isn't a problem. buy to let through money printing-creation, which causes massive house price inflation and rent inflation is.
I've asked this question on other channels. Could someone with a 9-5, that already has a Buy to Let, be able to also take on a HMO with a full time job? Everyone is telling me it's too much of an ask working 9-5 and running a HMO.
I’ve never purchased or completed a hmo - I’ve just done buy-to-let properties (2 and 3 beds). I know people that have done this whilst working full time, so I can’t see why it’s not possible. It will be a large task and undertaking, but with the right team im sure it could be done!
@@JustinWilkins Thanks for replying Justin. Everyone is saying that's where the big money is these days. Single lets have no profit anymore with these current Interest rates. But a HMO, Five people, each paying £600 a month. That's £3,000 a month. Just dont know if I could manage it and work 9-5!
@@wicked-witch-of-the-westabsolutely no reason why you can’t. I know many that do and see very successful. Circumstances are specific here but it can definitely be done. Good luck
@wickedwitchofthewest69 you could get a hmo management company to run it for you it would eat some of your profit but you would still have a profit
@@dinapatina3669 They would take £500 from what ive just seen, no ready for that hence i'm working could i manage it and work full time lol
My LL put up every year the rent. We live in London. Yesterday her agency told us she wants a rent increase of £230 per month. £1.900 for a month for 27sqm. Guys, don’t give in. The LL are out of order. We found 1km away something £540 less expensive.
Don’t give in. This is out of order.
Shame to hear that. In most instances aren’t purposefully trying to make your life difficult, landlords are just reacting to the continuous interest rate changes. The government know that interest rate rises also increases rents, and that’s what they are trying to do in order to reduce inflation. If you aren’t happy I’d recommend blaming the government or economy over landlords - we’re just trying to survive and make and income like you are in most cases