Bought MY FIRST BUY-TO-LET PROPERTY Up North (Costs) (Part 2)
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In this video, I show you my first buy-to-let project in the UK in a limited company and the numbers & deal analysis covering all costs through the purchase process as well as the rental returns, ROI, yield and refurb costs. The house is near Sheffield. Stay tuned for videos on the refurb process and transforming this house!
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Timestamps
00:00 Intro
01:45 Costs
03:39 ROI, Yield, Figures
04:58 Income
06:18 Strategic 2 Year Goal
07:24 Summary & Next Plans
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WHO AM I:
I'm Matt, a product owner and property investor working in London, UK. I make videos about money, finance and property investing to help people lead a more financially savvy life. In my spare time, I’m documenting what it takes to diversify my income and build a business.
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If you’d like to talk, I’d love to hear from you. DM @mattbrighton_ on Instagram and I'll happily get back to you!
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#buytolet #propertyinvesting #propertyrefurb
@JamieWhiffen 2 жыл бұрын
Congrats Matt! So interesting to watch this journey up until this point, looking forward to seeing your tour of the property in your next video.
@MattBrighton 2 жыл бұрын
Thanks Jamie! Have been hoping September is when I get the keys. Need to make it worth it so 3 months minimum amount of content haha
@husnainshah443 2 жыл бұрын
Love your videos man! The quality and content is insane!!!
@MattBrighton 2 жыл бұрын
Thanks man 🙏
@briandbedford4178 Жыл бұрын
Great video. Thank you. I need to find a property like this one.
@mogheesmir 2 жыл бұрын
Congrats Matt! Looking forward to the tour.
@MattBrighton 2 жыл бұрын
Thanks Mo! Hoping to do a before / during / after tour plus some more special vids on specifically ripping out the bathroom and some of the DIY stuff, fill a few weeks of content :P
@mogheesmir 2 жыл бұрын
@@MattBrighton good luck with the refurb, hope it all goes well! I'm hoping to complete on my flip project and 2-3 weeks. Looking forward to seeing how you get on 👍
@foshiniikes8866 2 жыл бұрын
Thank you ❤️
@MattBrighton 2 жыл бұрын
You’re welcome 😊
@jamesdoherty2329 Жыл бұрын
So, with a BTL interest only mortgage, even though you are not paying off any capital in the property; do you still get to keep any profit made from the appreciation of the house when you sell it? My mindset is moving from "only a repayment mortgage is worth doing, as you get an asset after the mortgage is paid" to "I could actually pay an interest only even if the house was empty for a few weeks without feeling tennants panicked"
@saayelruparelia8464 2 жыл бұрын
Congrats bro
@MattBrighton 2 жыл бұрын
Thanks so much!
@rickp2293 2 жыл бұрын
Your broker ripped you off mate. Find another one… never paid a fee more than £120.
@davidmason84 2 жыл бұрын
Great video. I wasn't aware that you could still get an interest only mortgage on a buy to let. Are they still doing them?
@MattBrighton 2 жыл бұрын
Yep! Mines interest only, £200 a month on a £106k house
@AlexSavage 2 жыл бұрын
Good luck! I'm curios when you going to blow your budget. I'm on my 1st btl refurb and blown my budget and there still a bit to spend..
@MattBrighton 2 жыл бұрын
Haha I have contingency built in. At the moment I’ve costed up 7.5k of work and the full budget is 10k so hopefully it stays within that range!
@jimholland7933 2 жыл бұрын
Well done Matt. For me is all about the ROCE which is mega 👌do you think there is anything you could have got cheaper on this deal?
@MattBrighton 2 жыл бұрын
Hey Jim! Thanks man, happy with 21% ROCE on day 1, when I did the maths on the project as a 2 year deal, 64% blew my mind! Will probably refinance, keep £16k in and take out the rest, then even with rent alone it would be 30% ROCE a year after refinancing after year 2. Crazy!
@jimholland7933 2 жыл бұрын
@@MattBrighton It certainly is a lovely deal. Crazy how the picture of deal changes if you zoom out even a little bit.
@mogheesmir 2 жыл бұрын
Hi Matt, quick question. Did you use bridging finance for this BTL whilst you refurbed it or did you go straight to BTL mortgage? Wondered if it's possible to get a BTL mortgage whilst refurbing a property and whilst it's not tenanted. Thanks 👍
@MattBrighton 2 жыл бұрын
Used a BTL mortgage on this, wish I had bridged it though - would have pulled out funds a lot quicker. I didn't anticipate the market to be so hot, the property is already worth about £170k based on sold comparables now, will refinance it in 1.5 years and pretty much pull all the money out at this rate
@mogheesmir 2 жыл бұрын
@@MattBrighton The market doesn't seem to be slowing at all! As your property wasn't tenanted did you have to agree a timeliness with the mortgage company on when you'd have the work completed by? Thanks Matt, appreciate your advise mate
@MattBrighton 2 жыл бұрын
@@mogheesmir Technically it did say 4 weeks in the mortgage docs, ended up being more like 12 - 14 weeks by the time I got somebody in as It fell over the Christmas period. Shouldn't really be done that way so I wouldn't make a habit of it but worked. There's always a risk they look into it then demand the mortgage back.
@kingofwebguru Жыл бұрын
Well done Matt. At 6:54, why is the refurb of £9K a profit not cost?
@oktfg 2 жыл бұрын
Good luck with this project
@MattBrighton 2 жыл бұрын
Thanks! Hopefully only a few weeks from completion now to actually get in there
@MrAshtonunderlyne1 2 жыл бұрын
Hi Matt I live in Sheffiled, which area should I invest around Sheffile, Rothreram, Barsnley, Chesterfield etc within 100k thanks.
@MattBrighton 2 жыл бұрын
My buy to let is in Rawmarsh in Rotherham. Any area of Sheffield still good though and some outskirts on the east side of Sheffield you can pick up a deal for 100k. Just a bit more competition looking at Sheffield compared to Rotherham areas!
@ritzrn630 2 жыл бұрын
congrats
@MattBrighton 2 жыл бұрын
Thanks! Excited to showcase it very soon!
@osmanamjid2432 7 ай бұрын
Based on the Figures provided your Intrest rate on the mortgage was 3.07% giving you a mortgage payment of £203 Currently at the end of 2023 the rate is 5.25% which means by todays standard you would be paying £347 a month on the mortgage currently the ROI on a buy to let is very low and not how it was 2-5 years ago.
@briandbedford4178 Жыл бұрын
Question: Are landlords in UK obliged to renovate buildings for energy efficiency in order to reduce energy consumption? In Germany this is law and can mean very high renovation costs.
@MattBrighton Жыл бұрын
Currently in consultation in UK government, unclear if it will become law yet but is heading that way
@stevewalden1159 2 жыл бұрын
Hi Matt, great video as usual! Matt would you mind giving me your brokers details. My broker seems to have a problem getting 75% ltv when using a limited company. Many thanks
@MattBrighton 2 жыл бұрын
Hey Steve - drop me a DM on Instagram :)
@sunilhpatel 2 жыл бұрын
Where about is that property? Thanks
@MattBrighton 2 жыл бұрын
In a smaller town around the Sheffield area, outside of the city centre :)
@divinastrain1286 2 жыл бұрын
And Tax?
@MattBrighton 2 жыл бұрын
This is all before tax. With it being in a limited company it would be 19% of rental profits. I believe it memory serves me right - if I refinance rather than sell in 2 years. That money is tax free
@cbmateas787 2 жыл бұрын
Please, as someone who rents, no magnolia!
@MattBrighton 2 жыл бұрын
Magnolia is the devil! And silk paint, nasty stuff
@kenancirik7123 2 жыл бұрын
How did you manage to buy a house worth 130K for 106K ?
@MattBrighton 2 жыл бұрын
It was in dire need of a refurbishment, so in it's condition and quality it's worth less compared to if it was nicely done up and decorated. Thus if you can refurbish a property for less than the gap between the purchase price and the gross development value - you make profit. In this case the market has surged and the house is now worth about £170k based on sold comparables in the area - it's still the highest spec property in the area compared to others that have sold now so could be worth more.
@frankspencer2142 2 жыл бұрын
Hi Matt, I think you were being a bit harsh on yourself there. Firstly, your ROI you divided the profit by GDV. Shouldn't that be profit divided by total investment ROinvestment. That gives you 8.4%. Also, if you rented, rather than flipped, you would get back 22% ROCE and get nearly all your money out in 2 and a bit years leaving a £4.5k income. I'll try and post my Project Analyser spreadsheet with all the data you put in.... No, doesn't let me. I'll find you on Facebook and send it. Frank
@MattBrighton 2 жыл бұрын
I'll have a look thanks! One thing I've come to realise is that everybody has a slightly different way of working out ROI / ROCE and what figures to include, EG if it's a flip people might look purely at profit, but for renting I'm including the rental figures and capital etc and seeing it as a 2 year end to end project.
Dishawn Irwin - DTI Information Network
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