Somebody below (Charlie Sharp) questioned and brought up the matter of factors not addressed in this video (and many other similar videos) when it comes to presenting the figures. They often don’t mention such annoying little things like “income tax” when presenting the apparent “profits”. Charlie Sharp did a nice little estimate that you can see in his post but essentially these show that for the higher rate taxpayer the profit (not even factoring in other ‘unforeseen situations’ ) is circa a mere £1500/year on an example like this. Check it out. I think he’s absolutely right. These type of videos never seem to factor those things in. Also, there are the additional purchase costs that often don’t seem to be mentioned e.g. the EXTRA stamp duty that is incurred in buying anything over your first property which is ‘lost’, dead money. And, that’s assuming absolutely NIL other initial costs such as a redecorating/refurbishments etc. As said, a net profit of £1500 starts to look pretty poor on a £70K (plus lost initial costs as above) investment/exposure with 25% down and a mortgage. £1500 really isn’t going to go very far these days. I can see how this model works, the sums add up and can be worthwhile if done MANY MULTIPLE times over i.e. lots of small profits, from lots of properties but if we take the above example, you have to have 10 of these to even get £15k/year profit! I’m not saying £15K isn’t some decent money but it’s not really going to be sufficient for anyone to rely on as their sole source of (passive) income, not work and “go skiing” instead. For £150K/year…..100 of these properties?! Now all these sums also work whilst the cost of borrowing has been and still remains very low. But will that remain so and for how long? We currently have inflation running at a 40 year high in the UK. Those of us old enough remember with fear the late ‘80s/ early ‘90s which is I bought my first properties when interests rates then hit circa 18% on our mortgages ! If you’re sitting holding a large number of properties that you suddenly can’t service the borrowing on and need to bail out quickly….and every other landlord in the same position is trying to do the same thing…you suddenly have a marketed flooded with properties for sale and hence falling prices. I could see how one could end up in a very nasty multiple negative equity scenario trying to sell lots of houses in a falling market which doesn’t bear thinking about. I still have one BTL left (and my own home) after having to divide my small, debt-free property portfolio with my wife due to a divorce. I also have about £300K in cash and can’t decide how to invest it. One option of course is property. However, if I did, my inclination is to just buy one thing outright again with a single lot of initial ‘starting costs’, no borrowing costs and more importantly no risk because of potential interest rate hikes. The other thing that these type of videos never seem to mention is the human dimension. By that I mean “for whom is this sort of model appropriate?” Whilst going from “Broke to £10 million in 10 years” is undoubtedly impressive and I take nothing away from him for this, simply presenting the a set of numbers cannot be the whole story. Even if they do add-up to show an profit thus presented. The appropriateness of the model in the context of the individual’s circumstances need to be addressed and factored in. For example, “Risk” is very rarely mentioned. All investments carry risks: Right all the way from walking into the Monte Carlo Casino and putting your entire worth on Black all the way to doing nothing and squirrelling your money away in the Bank which is also an inherent risk. The ramifications of “risks” vary from individual to individual. I’m 59 and retired, by the way. I think that’s significant and worth mentioning because I’m not young enough to take on massive risk whilst being prepared to lose it all and still have the time and energy to recover again. I think what’s also probably worth mentioning is that IMHO the above model of risking buying multiple small properties, for multiple small profits with high borrowing (and attendant risks) is probably NOT a viable thing for people already in the ‘young family’ situation. From personal experience, having brought up three kids, it’s probably not appropriate to risk your children’s and partner’s security. This is often a time in peoples’ lives where you just don’t have ‘extra money’ to risk. So, in that respect, I think it’s possibly more appropriate for the younger, dependent-free individual who essentially only has a responsibility to themselves and if they do ‘lose all’, no one else suffers and they still have time on their side to recover. Doubtless, this has worked very well for some people who fit this profile in recent years whilst the cost of borrowing has been extremely low and I take nothing away from people like Samuel who have done this. Add to this now the possibility of monetising one’s experience of doing this by making KZfaq and other Social Media tutorial videos or even running courses on the subject as a parallel income stream and I think for some people this has all worked very well. Again, I think someone like Samuel deserve praise for his achievements in this regard. All I question is whether it’s appropriate for everyone, especially now moving into a more uncertain future? I’d also really appreciate any advice or suggestions from Samuel or others about what to do in my situation. Many thanks in advance.

The actual figures were 600 - 110-20-60-60=350 per month which is 4200 per year

at this point I don't know if I watch your channel for the great information or your energy. entertaining and informative!

Amazing. Great video. Learning alot. Thank you so much for this

Great video thanks for making it easy to understand

Great video, very straightforward, consise. It's great to see how your thought process helps you find a property. Oh and I've viewed properties down that street in Stoke.

So helpful Sam I am going for it🎉

Samuel u r one great fellow. The way u break down this things is amazing and quite easy to understand. Thank you man u r just a blessing

Love your videos Samuel, Very inspiring stuff and how you have helped people and it has motivated me so much i cannot stop watching your content and after many years I feel the hunger coming back to take on new challenges. I am in Scotland though, not came across any others to see if things work slightly different for us with the methods you teach. hope you can clarify and would be great if you could do a crash course in Glasgow as I would be first to sign up. I have family in Birmingham and could have attended that one but it's fully booked.

that was amazing! may God bless you, because you just changed my life, ive got some money saved up and I work day and night to save so now I am planning to do this.

Agreed. Just looking for my investing hot spot right now. I don’t want it close to me, as that could tempt me to manage it and that would be a bad use of my time

I love the videos Samuel, only criticism is you never include the necessity to pay tax when calculating final returns. At a rent of £7200 a year, your tax burden if in the higher rate tax bracket is £2880. Factor in void period, certificates and agent fees, your profit would be around £1500 IMO. Excellent proof of concept however.

As a landlord myself I wish we could get 2.5% interest rates. Almost all of them are now between 5.3% and 7.5% now which means your interest only repayments have doubled or even tripled now depending on the term of the loan. I am literally just off with Barcley's an hour ago and their rates start nowhere less than 5%. Remember, if you can get a low interest, 10 year term deal, get it locked in. Do not wait around because you have no idea how high rates can go in this climate.

You forgot vacancy/void, council tax, and Intrest rates are not 2.5 even when you made this vid 9 months ago they were at 4%

Wow no word you are so brilliant..Godbless you you have also positive sprit

Some calculation need rectify. £490-140=350 Simon but i agree.

Great video, thank you!

Thanks For The Great Content

Samuel you are the best !

Thankyou brother this helped me alot

Thanks for the useful information..

Hi Samuel do you have any videos on commercial property investing - I heard lot of advantages of this? Thanks big fan

Just a quick question if someone call help me , Sam mentions about renting it out on rooms but don't you need a hmo licence if is more than 2 households ? Thanks

Awesome Dude Thanks....

Love it.👍

You explained that very well

Thank you mate

So, what management comp would you recommend??

Scuppered that last subtraction there Samuel, considered the calculator but decided against it and mistakes were made haha. 490 - 260 = 330, 100 off in yours, regardless though it's definitely a good value, How much does something like a rise in inflation swing that mortgage payment though? And how do you account for voids? Another 10%? So potentially we should take another £100 off at least and call it £230, maybe even £200 to be conservative.. So more like £2400 a year, 12 years to break even, around 7-8% ROI off the top of my head? Doesn't feel lucrative enough imo but that's also not considering appreciation. Great illustration regardless though, keep it up :)

Great Video Sam, i cannot express how helpful and smart this is mate, well done, keep it up!

great informative video.

Thanks for the informative content. I am from Tanzania, I would like to know if I will be able to invest in such properties in UK.

Will you always choose interest only mortgages? Does repayment not make sense so you can pay part of the principal (although more expensive monthly payments)?

Did the numbers wrong, 600-110-60-60-20 = £350 profit pcm, £4200 annual 👍

Hi thanks for your time but can you please help with a video about a lawyer fee, financial advisors in the UK? Rough prices thanks

Top man🙌

You are amazing!

samuel, you needed to be a bit more transparent and give a proper calculation. you need to state ALL costs. for example the repair and maintenance you gave it as £60 a month, but as we all know if things go wrong , you can end up spending a lot more than that e.g. blocked drains , plumber could charge £100'ss for that, a boiler packed up could cost £3000 etc. this could mean you will see no profit for a whole year. Also, you say the profit per month as £460, but you need to pay 20% tax on that ! so you will be left with around £370 per month. you say the interest rate on a buy to let mortgage is around 2.5%, but in reality it is around 4% , especially if your credit rating is not great. which means your monthly mortgage payments will be a lot higher. also, remember if it is a buy to let mortgage, this is not the same as a mortgage if you want to use it as a hmo. you need to obtain a different mortgage for a hmo. and you will find it tough to rent this property out room by room as it is probably very far away from the town centre or a train station. also you will find it tough to get a management agent to manage the property if it is too far out from the town centre. all i have said gives a clearer picture, otherwise people will just be misled.

Is it easy for a german national to buy a Property in UK as now is brexit, like you mentioned! As I am really interested to buy and have a equity almost like 60 k..does that worth to go in all for first property? I would love to do stay in same flat and can do airbnb myself..does that works?

I’ve no experience of property but find your videos interesting. One thing I wonder is why are all buy to let mortgages interest only. Why not use the tenant to pay them off then in 25 years sell them and become mega rich instantly. Are they that much more expensive than interest only that it’s impossible?

600 -110 - 140 after the morgage is paid is 350 a month x 12 =4200 income

interst only quoted here-whatabout the pricipal of 52,500? Buy to let mortgage will be more than 2.5 % interest rate. The rent for the flat will be more like 400-500 for the house and area in question. management fee will be 12.5 % not 10%. In current approaching market conditions, prices will be falling next year and beyond- 60,000 value will fall to 50,000 in 2 years. gas safety cert, electrical safety certs, condition of boiler, condition of roof, drains etc. are not clear from looking on a website,

Samuel, I'm addict of your videos, thank you!!! What is your opinion of my idea if I want to buy a flat for renting it on airbnb?

Hi Sam We own our house out right and thinking of remortgaging to buy a apartment or terrace to rent out , would you would you pull out the full amount to buy the second property for cash or just enough for a deposit ? our place is worth 130 and looking at properties in the region of 80

How to turn a reception room into Bedroom. You put a bed in it. That was classic Samuel 😂😂😂

Just a quick question, 110 pounds per month, but that's only interest. The bank usually add interest to the installment. So if 52 500 pounds for 10 years, it means, you need to pay the bank, at least 5250 per year or 437.5 per month. Adding 110, then it is around 548 pounds that you need to pay the bank each month. Is my calculation correct? or is there a bank that only allows us to pay only the interest?

love it;

Thank you, what if you only have 10k? Leverage via credit card? Is it best to buy via individual or limited company these days for your fiesta investment property?

Hi mate love your videos, have you got property in herringswell Suffolk at all. ?

No one picked up on his calculations error? 600 quid - 110 rent - 140 [insurance, maintenence, management] = 350 not 440. Don't know where he got 440 from. So instead of 5500 a year, you end up with 4100.

Hello Samuel, and thank you for your interesting videos. I am European, and I lived in London many years ago. Can I, as a European, buy a house in England (or Ireland - Scotland) as an investment and rent it out? How landlord-friendly are the rules and regulations there, if at all possible at all? I've already done some research, but it contradicts what my London-based pals have informed me, so I'll ask you. Also what about taxes, are they high? Thank you

You said that very well

Would you use a Ltd company or personal ?

Thank you so much for this content. may I ask if the £109 monthly payment ( that's the 2.5% interest of the mortgage). My question is What of the monthly repayment of the 52500 mortgage (75% from the lender).

Thanks to KZfaq algorithm, that referred your videos to me.

Hi do I can legally rent out 4beds?using buy to let?can you recomend me broker?one broker told me that I can not use buy to let if I want rent out rooms

Can I still get a interest only morgage if it’s my first property

Do you only pay interest on the mortgage then ?

7 GODS NUMBER - thanks for throwing that in...i caught it. bless u

Brilliant

Good information samuel i am looking buy a house in stock on Trent .

This is based on an interest only mortgage, which I’m not sure you can get unless you already own your own house ???

30k that means I don't need ALL the money in the world. Thanks so much.

Samuel, I'll be honest, the first of your videos that I watched I thought you were a bit of a Tw@t, and I apologise, I think its just your energy! Having watched many many more, its clear I don't hold that opinion now. As someone who is wanting to buy their first BTL in the next 6-12 months, I'm worried the market is about to turn, we are heading for recession (and I know thats good for rent), high interest rates, unemployment etc. Another worry is tenants that trash the place, don't pay rent, turn it into a cannabis farm etc. It would be awesome if you could make a video on worst case scenarios and how to mitigate or handle these situations if and when they do arise. Thanks!

I came here for the ‘Step 1). Have £30,000 to invest!’ Comment So glad I never found it. Keep being positive everyone, your wealth is yours to have.

Fantastic...u make it sound to easy lol

I'm sure the deposit on buy to let is much higher than 25% or is that if its a interest only buy to let. I'm looking to do the same but don't know if getting a buy to let interest only is the way to go.

how did you calculate the monthly mortgage repayments ?

Thank u Mr Leeds how du purchase Uk property if u outside the UK

Nice

What about now that we are going into a global recession and many people will start becoming bad tenants as they lose their jobs, living costs become unmanageable and many stop paying rent? Also now that the property market is about to roll over risk is high and potential reward is vastly reducing by the day. Would you say to wait 6 to 12 months until property prices have fallen or would you still invest now and risk having vacant property, or tenants not paying the rent, or property in negative equity due to the falling market prices about to happen?

Hi Mr Leeds! Have a question: I've got a mortgage of 330k (+30k deposit, so 360k total). I'm toying between buying in London (outskirts only barely affordable area) or Manchester (where I can probably buy a really nice house) as I work in both areas. I purely want to invest in the place that has greatest potential for equity growth (will want to convert to BTL in the future). Ps I'm from London btw so will want to be there long term

7:37 thats bollocks, they DO care about your salary, otherwise anyone with a lump of cash could start a property empire

Got it sir

Who pays the utility and water?

Fixed interest rate 2,5% is for 2 years. After two years it's about 6% (Barclays). Make your maths if it really worths

Great insight, Samuel. But you have only calculated the monthly interest on the mortgage which comes to about 110 quid. What about the actual mortgage repayment? You did not account for that. One would be left with far less after that!

Interesting content - but what about the money you need to put into the property to renovate it to a HMO, and also to potentially fix the EPC rating (cheap properties tend to have poor EPC ratings)? I have 30k in the bank and am looking for similar properties - after the calculations I do the market looks very poor to make a profit for rentals- even presuming you know competent trades people to fix the properties up.

hi l have a house in Gloucester on an interest only morgage.l owe £118000 with 11.11 years left on it .would buy to let be a better option or something else you are the Guru.

Great insight into how to find a deal but at least get the math right prior to selling the dream

These buy to let things are great....if the people you rent it to pay the rent.

2 questions. 1, is the €110 a month not just the mortgage interest ? Excluding the actual mortgage ? 2, 490-140 = 350 on profit after expenses? Or am I missing something

Can you please advice me how I can start with £10,000 thanks.

Management fee as well!? …. Inc tests for electrical / boilers ect … That’s around 240-50 in the clear per month

Appreciate the advice, but the numbers are all over the place, making this investment seem much better than it actually is. Interest was 4%, not 2.5% at the time of the video, which means the mortgage was $278 on £110. 600-278-140= £182/m instead of the £460/m mentioned Quite a change! And this does not take into account vacancy/void, council tax, etc. Please correct me if I am wrong

I really want to learn how to invest in California been working for years pay check to paycheck if any advice please reply

Nice tips!!! 👍 Very helpful ❤

So guys all sounds great , let's break it down So Legal fees £2000 standard Stamp duty 3% Estate agent set up fee for full management £400 finders fee plus the 10% plus vat 12% Smoke and Co alarm as standard £400 approx EPC in 2 years which is going to be a C That property was maybe a Low D To bring that up to a C , cavity wall insulation , floor insulation if suspended floor , thermostatic valves in each room, plus condensing boiler etc ,10k Oh yeh and the tax on the whole rent , not just the profit after the interest payment This government is killing the people who just want a good life when they retire , shame on them I would of considered this 5 years ago Tax tax and more tax 😆 I hate the money grabbing government Move to Portugal and live in a cave Cheers 😘

How many are auction properties... Cash buy only!

Can you buy a property on a buy-to-let without owning a residential property?

Samuel iam impressed. Iam 67 ear old lady if I put deposit of 25 thousand .can I buy house the places you have shown. I never had owned property.its bater not to far from leicester will be ideal. posseble

Hi Samuel, hope you are well? Could you recommend a mortgage broker?

Try that down south

Would this not be even more beneficial when the house prices crash even more?

Good video, but wrong calculations. You're left with £350 and that's without paying any of the money off that you borrowed (interest only).

Mortgage arrangement fee??? Normally £2k over 24 months. So knock off another £83 pcm. Plus no contingency for interest rates or voids.

Have we factored in a nice emergency fund for when things inevitably go pear shaped 🤔

Didnt include solicitors, refurb, tax, travel expenses etc. Deluded

It's 350 the rental income not 460

Can we hear more about your side hustles as a kid like selling the pizza….