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
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