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UK Property Investment – How To Invest In Property 2019


Hi, what’s up. My name’s Samuel Leeds. In
this video I wanted to explain how you can invest in UK property investment. First thing,
before I tell you how and what steps you should take I’m just going to explain why I personally
love buying property investment in the UK and that is because if I invest my money in
anything else, I can invest it in the bank. If you put money in the bank the money shrinks
over time because the cost of living goes up, the money stays the same, the money becomes
worth less over time. I can invest it in business and that’s great and that can be really successful
but of course there’s always a risk because the business could go bust, there’s staff,
there’s much higher risk. I could put the money in stocks and shares and again, same
sort of problem. It could disappear overnight. I could put the money in gold and someone
could steal the gold. Whereas if I put it in property the property
is attached onto the land, it’s attached onto the ground and it’s going to go up over time
in value because history repeats itself. I’m going to get paid in capital appreciation
as the property appreciates in value and I’m going to have a tenant in there looking after
it, paying me money as well so I’m going to get paid twice. That’s why I really want to
invest in property but the question is how. Well there’s different was to invest in property.
By the way, if you’re enjoying this video don’t forget to smash that like and hit the
subscribe button right now. There’s two different way, basic was. Number one is I can buy and
sell. That’s how most people think about property investment. They think, “I’ll buy a house.
I’ll do it up and then I’ll sell is.” That’s a fantastic method, however, I prefer to buy
and hold and the reason I prefer to buy and hold is because if you buy and sell effectively
you’re still trading your time for money because you’re going to have to buy it, you’re going
to have to oversee it, you’re going to have to make sure that you can add value then you’re
going to sell it and then you’re going to get paid a chunk of money. You’ve got that
money in exchange for your time so you’re exchanging your time for money, which is fine. But I think that the first thing before you
start doing that you want to become financially free so you want to be in a position whereby
your passive income covers your lifestyle so that you don’t have to work and you’re
financially free. And to do that, you’re going to need your rental income to cover your living
expenses yourself. Your properties have enabled you to go full time in property and work because
you want to, not because you have to. My properties, most of them, I never ever ever ever plan
on selling them. My plan is to hold onto them until the day I die and I’ll just benefit
from the rents. If they go up in value, rather than selling
them I’d rather refinance them and get a new mortgage and then buy more properties and
then make more rent. I’m going to be talking more about that strategy, which is buying
and holding, which we call buy to let. If you’re wanting to get into the buy to let
market, you are going to typically, conventionally you’re going to need some money behind you.
Now I do teach in some of my other videos how you can buy property with no money so
you can find those on this channel. Typically when you buy to let, you’re going
to put in 25% of the purchase price. I’m going to use my calculator here to make sure that
these numbers are correct. Let’s say you’re buying a house for a hundred thousand pounds.
You’re going to put in 25%, which means you’re going to have to put in twenty-five thousand
pounds to buy that property, which is a hundred thousand pound house. Now if you put twenty-five
thousand in that means your mortgage is going to be 75%, which is seventy-five thousand
pounds. Now interest payments are typically around about, buy to let mortgages, about
3%. You’re going to be paying your interest payments of 3%, which is two thousand, two
hundred and fifty pounds, divide that by 12, your monthly mortgage interest payments are
doing to be one eight seven. When you’re looking at buy to let property
what you need to be looking at it is will your rent cover this one eight seven and more
because of course you’re going to have some costs, management costs. Maybe some maintenance
as the property goes on. You’ll have to change the carpets every couple of years maybe. You’re
going to have make sure that your rent is a lot more than one eight seven to be making
a profit. Now the real trick is to buy low, rent high so that you can then get a good
return. Now, how do you even start? What’s the very
first thing that you should do right now if you’re interested in investing in property?
Well what I would say it, “Get yourself, open a computer, go to Zoopla, Rightmove, Rightmove
is the best because there are so many hundreds of thousands of properties on Rightmove. Go
to Rightmove, look at the properties available, try to find some properties.” And again, most
people say, “I want to buy properties that are nice. I want to buy properties that I’d
live in myself.” No, this is a business. You want to buy properties that are going to give
you a good return on investment. That you’re going to be able to buy low and rent out high. Now people say, “Oh, buy low, rent high. That’s
sounds like you’re just a greedy horrible landlord.” No, you’ll rent it out high because
the property would demand a high rent because you’re giving value. And you’ll buy it low
because you’ll be buying it in an area whereby right now houses, you can buy them reasonably
low. This isn’t a case of trying to squeeze as much out of the tenant as possible. You’re
going to have to look after the tenant. Let me tell you this, property investing is a
business. Your house is your product, you want a good product, your tenant is your customer.
This is a business about supply and demand. You’re going to try to find the correct kind
of house that’s going to give you a very good return on investment. What I’ll suggest, go right now, find some
houses that you think could give you a good return on investment, ring up the agent and
ask to go and look around the house. The best way to learn this is to actually go out and
just look around the house. If you want to learn all about watches, you know, just learn
about watches, you’re probably best to just go to a shopping mall and look at watches
and try them on and get an understanding. If you want to learn about sports cars, go
and do some test drives. Learn about cars. Go and see some cars. If you want to learn
about property, what I would say is just go and view some houses. Don’t feel like, “Oh,
but I’m not quite really to buy.” No, no, no, just go and view some houses. Go and speak
to the agents. Tell them what you want. Say, “Look, I’m thinking of, I’m interested
in investing in property. Can you give me some good investment properties?” You’ll learn
so much off of them. When they show you around, make sure you’re looking at properties not
with your feelings but with your formulas. I’ve done a video which is how to work out
the return of investment. I’d check that out just above. You know, look at properties that
are going to give you the best return on investment. Now what are the risks to buying property?
What are things you need to be careful of? I think the risks are one, buying a bad house.
Buying a house that needs too much work that you’re unaware of. This can often happen by
if you buy from an auction or if you buy really hastily based on feelings. Again, when you
buy a house always get a survey. I recommend getting an independent builder’s survey to
look at it with a fine tooth comb, to check any problems, and then quote how much it’s
going to cost to fix those. Next, not just a bad house but also you’ve
paid the wrong price for the house. Again, always make sure. If you’re getting a mortgage
it’s not too bad because the lender will not lend to you on the property unless it is worth
the amount you’re paying for it. If you’re paying over the odds it’ll get down valued.
Make sure you don’t pay over the odds for a house. Someone once said, “If you’re not
embarrassed about the offer that you’ve put forward, then the offer is too high.” Always
go in a little bit lower. The worst that can happen is they can say no and then you can
creep up a little bit. Once you’ve bought the house, what are the
risks then? Bad tenants, no tenants. I always say, “Everything will work out at the right
price. You just need to know what the right price is.” Make sure you do your due diligence.
You get trained, you speak to these agents, you speak to the local letting agents and
you know how much that house will rent out for, who the types of tenants will be and
next, make sure you’ve got a good property management company the are going to references,
they’re going to do all the credit checks, they’re going to make sure their putting the
right tenants in to your property. If you’ve got the right power team, have the
right surveys, the right property managers, you do your right due diligence, property
investing I think is one of the most lucrative ways to make money and I also think it’s the
best way to invest your money. If you look at the rich list, nearly all of the people
on the rich list either have made their money through property or they have made their money
through business or whatever and now they are also investing in property but property’s
always the theme. I love property through and through. I think the UK is one of the
best places to invest in property in spite some of the uncertainty that’s going on right
now. When people are a little bit uncertain that’s when you need to be super greedy and
get in there as Warren Buffett would say. I hope that video’s kind of given you some
ideas and been helpful. I’d love to hear your thoughts so please do comment below and do
not forget to subscribe, stay tuned and I look forward to seeing you next time. Thank you so much for watching this video.
It’s Mentoring on a Monday every single week at 7:00 p.m. on a Monday. Between 8:00 p.m.
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