How Much I Made on My Buy to Let (8 Months Later)
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Күн бұрын🏡 My All-in-One Property Deal Analyser
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In this video, I show the numbers on my buy to let property, how much it's worth today and explain all the costs, outgoings and rental income for my first investment property. This made a 90% ROI which is very rare in this market, even though the market is hot, it meant actually securing a deal almost a year ago has helped me lock in great profits.
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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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@MattBrighton 2 жыл бұрын
🚀 Accelerate your property business with my property deal analyser & CRM: wtfpropertyinvesting.com/property-deal-analyser
@gurpreetsingh4977 Жыл бұрын
where did you buy matt or where do u reccomend..
@crest2brown505 Жыл бұрын
Ia8
@RubDev 2 жыл бұрын
Congrats matt! Really liked the breakdown. Not really something I could do in my area/market. Prices and taxes are through the roof atm. I'll keep an eye out anyway, since there are always good deals waiting to happen, I guess. Keep 'em coming!
@heyheyhey3940 2 жыл бұрын
1. unless you have a hard cash figure offer for that value it means nothing, market has cooled massively 2. you have failed to account for a single penny of tax 3. when you refinance and your rate has DOUBLED, margins will be drastically cut 4. stringent EPC ratings could cause massive costs to get your rental up to speed 5. with the cost of living crisis you are assuming 100% occupancy and rent on time which is becoming alarming difficult. there is money to be made in BTL but you have massively over simplified it.
@MattBrighton 2 жыл бұрын
1. Data is your friend - some areas have gone down from 12% YoY to about 10% YoY, headlines going wild for it but still 10% YoY growth in good areas - also shows that buying in the right area matters. If you buy in desirable areas and focus on a high quality product, you'll lower that risk. 2. Figures are pre-tax company profits, based on company expenses I should be able to wipe off most profits to pay £0 tax this year. 3. Rents are also going up astronomically YoY to offset interest rates, it's a horizon risk for sure next year that's on my mind. 4. The house is EPC C. Government are still only talking about this... no papers, consultations or anything material yet, wise business planning, if you have a house below recommended EPC - start putting money aside now to fund improvements or work on a refinancing strategy to fund it and pull some capital out at the same time. 5. This risk is mitigated by heavily vetting tenants, credit checking and full referencing to look at proof of income, credit history and affordability. I anticipated bills rising when selecting tenants so factored higher costs into affordability checks. I created the best product in the area so had over 75 enquiries for this property in 2 weeks, lots didn't meet the requirements so not all good quality enquiries but definitely no shortage of tenants to even worry about large voids. Provide a strong service, give tenants an awesome product and they'll stick around. Simplified for a 6 minute video yes, running a business efficiently, managing projects and taking on good deals, understanding your risks and mitigating them while thinking about your strategy and direction - takes experience for sure.
@dlc2479 6 ай бұрын
This was my thought process aswell, of course things are even worse now
@fooddweller 4 ай бұрын
4:00 Put that money into stock ISA S&P 500 (VUSA) which has a track record of minimum 10% yield annually, so don’t compare with Cash ISA which is worse
@BrianRobertDarby 2 ай бұрын
Also, ISA is tax free, interest on mortgage is counted as income and taxed as such, further reducing rental income - most small landlords are not Ltd.
@afgor1088 Жыл бұрын
"As soon as the land of any country has all become private property, the landlords, like all other men, love to reap where they never sowed, and demand a rent even for its natural produce."
@blahbleh5671 Жыл бұрын
Ah shaddap
@mrgladstone4044 25 күн бұрын
Seeing other vids- sorry about the below I did not know you actually do the work renovating.
@EpicSlug Жыл бұрын
Very good but on the £5,738 you will have 25% corp tax right? as you are in ltd company. I assume you will keep the cash in the company to avoid dividends tax. I guess you could use it to reduce the mortgage when you refinance.
@Laura-cc6oz 4 ай бұрын
You haven’t accounted for a single penny of tax on your profit, so that is not the figure you will walk away with. All rental income is now taxable
@FA9082 3 ай бұрын
Tax is not the biggest problem here. The problem with these youtubers is when they walk you through a deal they ALWAYS show you that one deal they did where they got lucky and everything went right. They don't show you their typical deal where the returns are much more mediocre
@rpk-yk5gv 10 күн бұрын
He said he bought it through a company, so it’s not taxable until corporation tax is paid which can be 19-25%. But there’s a lot of things you can do with a half decent accountant
@justaguycommenting 2 жыл бұрын
Been looking forward to this, great video Matt, Justin Wilkins is looking at this video with an approving nod i'm sure haha
@tomfisher7751 9 ай бұрын
This is a brilliant video. The kind of video I've Been looking for. Simple and honest
@noodlebrains Жыл бұрын
Where did you find a property for £110k? Was it auction? Which areas do you look in and how do you know if it’s a good area / good deal? I like your breakdown down but it’s hard to read on that clear background
@Nkunkuchanel 2 жыл бұрын
Congrats bro, amazing first project!
@MattBrighton 2 жыл бұрын
Thanks a ton! Conveyancing on the next project at the moment, more to come soon!
@tibraimo7 Жыл бұрын
Do I have to pay Stamp Duty if I am buying on my name rather than a Limited Company for Buy to Let? Thanks
@l.thompson2768 Жыл бұрын
taxes?
@YusufR777 2 жыл бұрын
Can you do a video on opening a ltd company if someone is looking to transfer their BTL property into a ltd company
@MattBrighton 2 жыл бұрын
Will pop it on my list. In a nutshell if you’re transferring it - you are basically selling the property to your limited company so subject to legals, conveyancing, stamp duty, new mortgage etc
@maxemus9079 2 жыл бұрын
Great breakdown very nice and clear. BUT I cant help but feel you got super lucky here! If the market hadn't had a massive up you were planning on a 8k profit? Personally for me i wouldn't of bought this and I 100% would be selling now. Why keep 95k tied up for 2 years? Unless you have another couple hundred thousand sitting around sell and go again on 2 or 3 more btls. At the very least refinance, now the market is at 180k you can pull all your money out and still make 300+ a month. guessing you will pay early charges but will still be positive by my maths.
@MattBrighton 2 жыл бұрын
I’d say so. Tonnes of luck in this. But also creating the best product with highest quality kitchen and bathroom definitely helped with tenant enquiries etc. Because of the original low profit margin the idea was to tie the funds in and take it out after 2 years of capital growth to boost the numbers a bit as I have other capital to work with. It’s defo an option to refinance now - although I have capital for 2 more projects still (next one is a large renovation £1m GDV) and with the original mortgage on 2% interest may as well enjoy higher cash flow on the BTL rather than refinance now onto a higher rate for the sake of pulling £40k out.
@abigaelbamgboye 2 жыл бұрын
Fascinating - thanks for sharing this!
@tk4835 4 ай бұрын
Hello Matt your videos are very helpful, I’m looking to get in to the property market I’m just doing my research at the moment, any pointers for a newbie?
@zanyzoo6767 Жыл бұрын
interesting to see where this is now. Property prices have dropped. Interest rates increased. Has this now or it is it going to be a dept with a hefty price tag?
@dlc2479 6 ай бұрын
Yeah I'd be interested to see an update now
@bornforfreetaxtothedeath..7542 Жыл бұрын
The tide will change after your 2 years fix come to the end, house prices falling fast and sharply, intrest rates has gone up triple %, that means your mortgage monthly payments will be triple also, but your rent income will not be triple... U will feel that when u have to remotgage after that 2 years fix term...
@dlc2479 6 ай бұрын
1 yr on and I think you're right
@C43AM 2 жыл бұрын
Really helpful video Matt! Question on the rent.. do you charge additional to the rent for water and gas?
@MattBrighton 2 жыл бұрын
On a BTL, the tenant pays for their own utility bills.
@jjlovesjam Ай бұрын
Would you not be much better off just sticking the 50k in an index fund and getting compound interest 10%?
@MattBrighton 26 күн бұрын
Possibly yes. Depends on rent & capital appreciation. Or do both
@craigroberts3732 Жыл бұрын
ISA is zero tax where as corporation tax will be 25% soon 😢
@tomroberts3851 7 ай бұрын
Great video, thank you!!
@ivansa9669 7 ай бұрын
quick question: income tax?
@MattBrighton 7 ай бұрын
No personal income from the company taken. Able to declare a loss in the first year due to milage, renovation costs etc and because asset isn't sold the 'profit' isn't realised and therefor not taxable yet.
@ivansa9669 7 ай бұрын
@@MattBrighton Thank you, Matt.
@daddo1600 2 жыл бұрын
Def landed a good deal in such a crazy market. Hope you haven't set that as the 'norm' or 'benchmark' noting 30% is more realistic.
@MattBrighton 2 жыл бұрын
Total fluke! In the market at the moment, I'd happily take a break-even project (I had a similar mindset when taking this deal on) and realising the returns in 2 years time with a bit of capital growth. But also shows the importance of buying in a good area and creating an excellent end product that's desirable rather than buying a random terraced house in the arse end of a city.
@daddo1600 2 жыл бұрын
@@MattBrighton firstly, cheers for the reply. I’m use to getting responses from bots and spam. Which area did you purchase in? You mentioned you weren’t looking to do it again because of the heavy lift in work? Would you consider a hands off approach and spend more on the refurb cost to free up your time?
@MattBrighton 2 жыл бұрын
@@daddo1600 Bought in South Yorkshire, a nice family area near a 'Good' school and being a 3 bed semi with lots of garden space it's leagues above terraced housing in rougher areas. It's more the strategy going forward - the figures have been pretty awesome so I'd definitely flip a property in the future, in terms of strategy I'd rather do a refurb and flip on a property which I can then turn into an HMO. The plan is to start creating luxury student HMO's so next project will definitely be an HMO.
@RoxusMaximus Жыл бұрын
Hey Matt, thanks for the video. Is this property a leasehold? If so, how long I to the lease do you plan to keep it?
@tomwiggins3816 2 жыл бұрын
Hi Matt. Really love this channel! Who got you into investing? I didn’t discover index fund investing until my late twenties/early thirties. Wish someone had explained it all to me when I was 19! I’d be so much so much further along in my financial independence journey.
@MattBrighton 2 жыл бұрын
Just became something I was naturally curious about. Started off with wanting to boost my savings so started researching what stocks and shares ISAs are
@Cheesieshorts Жыл бұрын
Hey Matt, i know i'm late to the party on watching this video. Would love to hear how you went about setting up your limited company. In a similar situation with a good amount of cash saved and wanting to get into investing in the next 2 years when prices (hopefully) are on the decline. Would be great to hear back from you cheers!
@Fizzeetoast 12 күн бұрын
Accounting fees?
@harjkunn Жыл бұрын
Great video, please next time don't use a random clear window with a reflection, cant read some of your notes. Please use a normal whiteboard
@g0801215 Жыл бұрын
If you don’t work then it’s pure profit but if you have other income, you would definitely be paying tax on it.
@ap6311 2 жыл бұрын
No mention of income tax?
@MattBrighton 2 жыл бұрын
Figures are pre-tax. Tax is different for everyone, accountancy costs etc.
@jermainerobinson7098 3 ай бұрын
Nice video very well explained you got me ready to have a go how’s things been in 2024 ? Interest to know if you would do it in today climate?
@Plum478 2 жыл бұрын
Congrats and great vid! For the mortgage cost how did you manage to make it £203 per month? I’m interested in buy-to-let but every time I do the calculations I realise I could be in a loss due to the mortgage.
@BiscuitOath 2 жыл бұрын
Are you looking at interest only mortgages?
@Plum478 2 жыл бұрын
@@BiscuitOath thanks, didn’t realise lol
@MattBrighton 2 жыл бұрын
I got the mortgage in October 2021 so before interest rates started surging. If I remember right it was 2.01% or something very close to that interest only. There were a few at 1.9% but because I have a holding company structure I couldn’t use that bank. I haven’t looked recently at BTL mortgage rates but can only assume 2% is a distant memory!
@MattBrighton 2 жыл бұрын
Yep - interest only
@Plum478 2 жыл бұрын
@@MattBrighton thanks 🙏😁
@taggthis Жыл бұрын
Hi, I have 60k to pay off on my mortgage for a 1 bed flat but I am planning to buy a house with my partner going halves. Shall I just try to pay off my one first mortgage so it will truly be an asset?
@ayres6727 7 ай бұрын
how can i get mortgage on a property that my parents paying rent?
@lifeoflee14 2 жыл бұрын
Just brought my first buy to let, thanks for tips and advice. Also making a series on my channel about the journey.
@MattBrighton 2 жыл бұрын
Best of luck!
@idesireit31 6 ай бұрын
You need a white or black background for your presentation. Can't see any of the figures
@soundslight7754 Жыл бұрын
Well done
@thebest5productsforyou 2 ай бұрын
Huge mistake locking in at 2 years
@Air51 6 ай бұрын
That must be a low interest rate?
@jamietozer4950 2 жыл бұрын
You haven't taken off the tax on profit?
@MattBrighton 2 жыл бұрын
Pre-tax profits as it hasn't been crystallised yet. The house is on a 2 year fix so will refinance it at the end of 2023 to pull the profit out.
@MattBrighton 2 жыл бұрын
Also - with it being in a company, with the director's loan, milage and other costs I'm hoping to wipe out most of the taxable profit due to expenses in the company. Won't quite know this until I sit down with my accountants in 2023 to go through it
@defkake Жыл бұрын
Taxes?
@Ryan-rb3bh Жыл бұрын
Hi Matt, come across this video today- Just wanted to sense check something. Based on the net profit after deductions- you mentioned maintenance and mortgage costs etc- But did not hear you talk about tax which is the big drain. So was your example in the video including tax as a deduction? Or would you then pay tax on top of that net cost... Reducing it further?
@MattBrighton Жыл бұрын
Haven't covered tax in this as it's different for everyone. All figures are before tax, on my latest accounts I'm working on at the moment I can technically declare a non-taxable loss in the company due to the renovation costs, milage etc and carry it across multiple years to minimize tax in future years.
@g0801215 Жыл бұрын
Did you get permission off the mortgage lender to rent out the property? They usually won’t let you rent it out and force you onto a buy to let.
@simonwalker8674 9 ай бұрын
Get a white board not a window mate ha ha
@danbee415 Ай бұрын
Buy to lets are not worth it!!! Seriously, whack the figures into chatgpt, it says all you need to know. I'm sick to death of BTL videos saying how profitable it is. It is so much work to make SO LITTLE MONEY. Honestly, better off doing a part time job. BTL only works for people who are already millionaires. If you're asset poor but income rich, seriously, wouldn't even bother with BTL. Stocks would pay more.
@MrBlazer3585 Жыл бұрын
Tax on the £5k income?
@MattBrighton Жыл бұрын
For 1 - 2 years I'll pay no tax as I can declare a company loss from the renovation + milage done in the car between home and BTL.
@Lawrencekingsley01 9 ай бұрын
"To obtain financial freedom, one must be either a business owner, an investor, or both, generating passive income, particularly on a monthly basis." - Robert Kiyosaki. I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already,earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing is a grand choice I made..
@Hypedanielx 7 ай бұрын
Great advice ! Are you financially free purely through real estate?
@dylanxd6404 2 жыл бұрын
Buy to let is scummy
@MattBrighton 2 жыл бұрын
There's a lot of bad landlords out there.
@jdeusl Жыл бұрын
@@MattBrighton How do you sleep at night going you are stopping someone from probably owning their own home so you can make profit?
@bobbybrown4652 Жыл бұрын
Haha 😂😂 People who can't manage their finances are so Salty 🤣🤣
@jdeusl Жыл бұрын
@@bobbybrown4652 the level of arrogance in that comment is disgusting
@gavinlun Жыл бұрын
@@jdeusl its not the case mate. Landlords offer a service as there is always a demand for rental houses. Some people need to rent for flexibility or to have whilst saving for a deposit. If you look at other countries that have targeted landlords to the extent they leave the market it always causes a housing crisis
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