Great video and thank you for not cutting it as tight. Sounds much better when you let the audio breathe. Trust me. 😉 I know audio and you know property and you've massively helped me on my journey thank you.
the problem with BTL property at the moment is interest rates / BTL mortgage rates, and the monthly 'interest only' costs wiping out any profit if you are leveraged to say just 10-25% equity. So, you have to have lots of equity in the property, eg 70% plus, or your rent is hardly covering the monthly mortgage cost! Am I wrong.., is so how?
Outside the south east it’s easy enough to find deals that stack at 75% LTV. Even if the profit after all costs isn’t astounding, the rent goes up over time while the mortgage cost is now less likely to adjust significantly upwards than it was. Plus of course your equity grows over time because the debt stays static while inflation lifts the asset value. That’s what we observe anyway - everyone will have their own opinions and experiences.
Great video, very informative! I have a question I hope you can help with. My friend owns a limited company in the IT sector and is looking to purchase a buy-to-let property through the business. She was advised to open a separate limited company and add SPV codes to it instead of adding the codes to her current limited company. The problem is, the new company won’t have any capital, and her IT company can’t lend money to the new one. If she takes dividends instead, she’ll face extra personal tax. Is it true that lenders generally avoid lending to limited companies even they have the necessary SIC numbers? What would be the best approach in this situation? Thanks
I’m a bit out of touch with property investing at the moment. I recall watching a video maybe a year ago, where according to the 18 year property cycle, it was predicting the crash phase in 2025/6…… is this still the case, or has the 18 year property cycle itself crashed? I’m sure you will have covered it already, but I’ve not seen/ heard it. Thanks
Could view this as a silent crash. Inflation has gone wild over the last few years, but property has not risen (average) much. A 100k property that should have increased to 130k due to inflation is a 30k loss of value if the prices did not keep up.
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Great video and thank you for not cutting it as tight. Sounds much better when you let the audio breathe. Trust me. 😉 I know audio and you know property and you've massively helped me on my journey thank you.
1:50 BRRR. I think the extra R is 'repeat'
the problem with BTL property at the moment is interest rates / BTL mortgage rates, and the monthly 'interest only' costs wiping out any profit if you are leveraged to say just 10-25% equity. So, you have to have lots of equity in the property, eg 70% plus, or your rent is hardly covering the monthly mortgage cost! Am I wrong.., is so how?
Outside the south east it’s easy enough to find deals that stack at 75% LTV. Even if the profit after all costs isn’t astounding, the rent goes up over time while the mortgage cost is now less likely to adjust significantly upwards than it was. Plus of course your equity grows over time because the debt stays static while inflation lifts the asset value.
That’s what we observe anyway - everyone will have their own opinions and experiences.
Great video, very informative! I have a question I hope you can help with. My friend owns a limited company in the IT sector and is looking to purchase a buy-to-let property through the business. She was advised to open a separate limited company and add SPV codes to it instead of adding the codes to her current limited company.
The problem is, the new company won’t have any capital, and her IT company can’t lend money to the new one. If she takes dividends instead, she’ll face extra personal tax.
Is it true that lenders generally avoid lending to limited companies even they have the necessary SIC numbers?
What would be the best approach in this situation?
Thanks
I’m a bit out of touch with property investing at the moment.
I recall watching a video maybe a year ago, where according to the 18 year property cycle, it was predicting the crash phase in 2025/6…… is this still the case, or has the 18 year property cycle itself crashed? I’m sure you will have covered it already, but I’ve not seen/ heard it.
Thanks
Could view this as a silent crash. Inflation has gone wild over the last few years, but property has not risen (average) much. A 100k property that should have increased to 130k due to inflation is a 30k loss of value if the prices did not keep up.
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