UK Property Investment – How To Invest In Property 2019
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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.
I’m going to be live answering all your comments and questions. Don’t forget to subscribe right
over here so you’ll never miss one of these videos. I’ll see you next week at 7:00 p.m.
Also, if you haven’t got a copy of my book, you need this in your life. You can get it
from Amazon for ten pound ninety-nine or a gift from me absolutely free down below in
the subscription link. I’ll see you next week, Monday at 7:00 p.m.

82 Comments

  • SiFE

    Great video Samuel! Keep up the good work! 👏 As always the video is well written and extremely informative.✅

    You're one of the entrepreneurs that has greatly inspired us to start our YouTube channel. So thank you for your time and effort in sharing your knowledge on business and property with your viewers. We wish you all the best for 2019. 📈

    Speak soon!

    Eugene from SiFE

  • Ryan Richardson

    Hi Samuel, I'm really interested in investing in property and becoming financially free, I don't currently have significant capital to invest but it would be fantastic if you could explain in more detail, perhaps another video, how to invest with no money as you have mentioned, keep up the great content!

  • Pentru Barbati

    Do you ofer sourcing services for overseeas person i;m from Eastern Europe and i;m interested/looking for investing in a property or more in Liverpool area Thanks

  • Joanne Smith

    Hi Sam, should we pause from investing in BTL at the moment, the Brexit issue is causing house prices to drop, and there has been more and more investing articles coming out in the last few weeks warning us all of a even greater house price decline. I think we should be very cautious at least until after 29th of March

  • Theo Bullion

    Hey Sam,

    How would I go about having a one-to-one chat with you, I'm very young and new to property investment and i'd like to know your thoughts on my situation and how I can get started in the best way possible, Would love to hear your thoughts!

    Kind Regards

    Theo Bullion

  • Peter Jackson

    Always have 5% of your wealth in gold bullion held outside of the banking system. Its your insurance against a systemic economic collapse.

  • Robert Ledingham

    You could buy bitcoin, remember your private key, get old, get Alzheimer's, forget what bitcoin was and have to sell your houses to pay for your care. 😉
    I will keep buying property and crypto (saved on a ledger nano s).

  • S Lovell

    I'm attending your crash course and I can't wait! I've just secured my first mortgage with a loan to value ratio of 40%

    I really want to pull some of that equity out and purchase a buy to let.

    Your content is fantastic thank you for taking the time to make them!

    Sam

  • BLzD Clan

    Great video Samuel , these videos are really helpful,I’m part of the Facebook group . Thank you for putting these out here

  • Sam Hammond

    Hey Sam. I bought my first property for my family to live in last year securing it with 25% on a 5 year fixed rate. Does this mean I wouldn't be able to re-finance to free up some equity to purchase my second?

  • Chris Stein

    I am a landlord and make a good return but they are not tax efficient compared to investing in stocks through an ISA or SIPP. The major advantage is leveraging through a mortgage but then it's the banks that own property and not people.

  • Dan

    Samuel you guys got it made in the UK, in the US it is hard to get an interest only loan for rentals. No wonder your cash flow is great. Great videos.

  • Bad Wolf

    Hey Sam is there a guide to EVERYTHING that you would need to do and documents etc on investing in properties, such as leasing agreements and or buying a property. What would you do after that? What would you need in documents etc thanks!

  • Millionaire Mindset

    90% of this info is factual. I've followed similar strategy on my journey and its done wonders for me. I will actually be uploading my experiences this week….or as soon as I master this editing thing lol.

  • Sergio Faber

    Great video Samuel,

    Is it possible to invest in uk properties for a dutch guy. I am interested in Buy to let.

    Thank you and keep up the great work

  • Rajvir Dhardwar

    Hi Samuel, can’t wait to attend your crash course in Peterborough on the 22nd – 23rd Feb. Me and my wife are very excited to start this venture and to meet you.

  • Yasir Khan

    Honestly your channel has inspired me to start becoming a property investor and start my journey to financial freedom. I am coming to your seminar in Peterborough in Feb as well as the stock trading seminar. Looking forward to meet you.

  • Banana VPN

    Hello Samuel, i don't understand about the interest rates. I calculated using https://www.moneysupermarket.com/loans/calculator/ and gives me 414/m payment (20years). Do you only pay back the interest? Won't the bank still want the rest? i don't get it.

  • CryptoCondemnation

    If the property market crashes you are fucked. Going into massive debt to buy houses is not a good way to build wealth.

  • saqib chughtai

    Rent should secure the mortgage interest payment ?  what about the mortgage of 75k ?  please can you explain that further ?  much appreciated, and thank you in advance. 🙂

  • Andrew Jones

    Was the £187 a month interest only mortgage ..?
    As that seems very cheap for a repayment and interest mortgage
    With a ltv of 75%.
    Why would you buy a property with an interest only mortgage can you please explain.

  • Gregor Pirie

    Hi Samuel. Just a quick question. Would you get a survey done if you are buying a sourced deal from someone like yourself or Alastair?

  • Ryan

    Just applied for a free book!
    I've been watching your videos for about a week now and was going to buy the book next week.
    I just saved a 10er this offer, couldn't have had better timing!

  • Matthew Ferrante

    I'm new to real estate. Can you do Rent to Rent deals in the United States? I cant seem to find anything but European sites talking about it.

  • battle lemon15

    hey sam i just received you're book and just wanted to say thanks for the crash course tickets and sadly i cant get to were its placed but just wanted to say thank you!

  • Marlon King

    I really want to get started, I'm in the south east but feel I need 50k to get started which is impossible. I've always avoided apartments. But maybe that is what I need to do. Also its finding a list of helpers that I can rely on. Need to sort this asap.
    Thanks for the video dude

  • Pierre Miniggio

    Hey I did a woopsy, I forgot to write one line in the address on the form to get the free book. Where can I write you (or your team in charge) to correct the address I entered?

  • Fong Wong

    Sorry if this sounds harsh but I would like to give you some advice. Please don't feel bad for me trying to criticise you but it is constructive: I can see you are making good money, but if you keep all the properties until the day you die, then your family/children will need to pay 40% inheritance tax on your properties. But then again, if you sell before that time, you will probably pay capital gains tax in the upper limit. You are holding a gold mine that is only growing but there is no chance escaping both taxes I mentioned. My point is plan for your family's future to reduce the biggest taxes as holding all of them till the day you die is selfish. Just something to think about 🙂

  • M M

    Hello anyone willing to chat on a private room on telegram regarding property investment sharing knowledge and idea? @propertyinvestmentuk

  • M M

    he really is the person he claims to be?
    Most of the time talks about very basic property information and in many occasions there is not economic feasibility

  • Josh Pickles

    25% minimum deposit, 3% additional stamp duty, inability to offset mortgage payments as an expense, housing law that protects tenants but not landlords, brexit, housing stock flooding the UK market, service charges, licencing schemes…why on earth would anyone want to buy investment property in the UK? Its a terrible place to be a landlord that's getting worse year by year.

  • Billy Bob

    Samuel your good person dude for giving out free advice which other greedy pricks charge shit loads of money for. Slaute

  • Frazer Hatyai Loves Thailand

    new subscriber here, I live in Thailand and I am considering buying property in the UK. my income comes from China and is paid into a UK account so I could get a UK mortgage.
    I want to buy as a long term investment and rent it out. any pointers on where to start? advice on how to manage the property while out of the country and are there many things that will require me to be in the country to do or will having a family member their to deal with issues be enough

  • A.montana77

    No one ever mentions the astronomical tax’s we pay when we buy a buy to let… not to mention the stamp duty……

  • Nicholas Koppanen

    In Scotland the trend is to pay over the asking price. Most properties are list for offers over only. Can you recommend a strategy to still get the most for your money and arrive at a suitable offer with lowest amount possible? Nick

  • Matthew Cobley

    Ha, you made a small error which funny enough you highlighted when speaking about cash in the bank! Property (generally) doesn't go up in value, money goes down! However, properly does hold value (very well vs inflation) and pays a health yield (rent) and of course there are many other swings and roundabouts where extra value can be obtained (Buying cheap, bad areas becoming a good ones, increasing demand, etc).

    Overall, I love your videos and I'm looking into diversifying into rental property. Might even see me on one of your events!

  • Tyson Spiller

    Great video. But remember we all need to consider the extra stamp duty, tax and capital gains tax etc.

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  • Daniel M

    That maths was slightly incorrect.

    ASSUMING a £100K house, £25K deposit and a 25 year mortgage with an interest rate of 4% you are looking at a repayment per month of between £375 to £450 a month. The total repayment over the 25 years would be around £120K and barring hyperinflation, this is a really good deal, since the value of the house will have indeed appreciated faster than the rate of inflation. I’m surprised someone with 10 years experience would mislead people like that.

    Please do the maths properly people

  • Tahmid Ahmed

    Wait, you said the monnthly repayment would only be £187 but that's just the interest. What about the actual mortgage itself? (the 75k)

  • Christina Boss

    Samuel, I love lit this video because of the Calculator things, please make more for us, it so so easy for me to understand how you explain, plus I can see it on screen, absolutely amazing.
    I am a single mum, two years in uk, but I can’t wait to have a happy home for us 🏠🇬🇧🤗.
    Please more video with calculators.
    Thanks 🙏🏻 again

  • HELLROT TRUCK

    I pause the videos at least twice to check the market on rightmove , zoopla , primelocation , onthemarket etc . while u speak 😂😂😂😂

  • TheKoKsOnePL

    Just had a look at Barclays’ “interest only” mortgage and it required me to earn £75,000 a year.

    How on Earth do you get on the property ladder when the banks want you to be wealthy already in order to start?

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