How I Achieved Full Financial Independence In 5 Years
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- Опубліковано 4 сер 2023
- This weeks episode is a bit of a landmark episode because this is the fifth anniversary of starting this project.
And coincidentally, Adekeye reached full financial independence on that same day.
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Well done Perry. If only property was that cheap in the south. I drive a cab too and houses in my town start at 200k.
They’re too expensive where I live too Vince. That’s why I buy 40 miles away and get someone to source and manage them for me. If the 4 I’ve bought so far, I’ve actually only been in 1 of them
Well done Perry! Great achievement!! I'm sure your dad is looking down with a big proud smile on his face! i've just been promoted at work and have nearly doubled in my income. so i'm now looking at starting my own 10 year journey!
Thanks pal.
Holy crap! An outstanding development.
Drop me an email at abnormal@stupidisthenorm.co.uk if you need some advice or help
UA-cam has been of great help to many facing challenges of making best financial decisions, I have racked up in profits $458,405 from $185k capital in February to be exact on my portfolio, after i watched a news interview on where "Lidia Joann Morris" featured during an IPO and spoke proficiently, caught her name and did a web search on her
Your focus on this project has been outstanding and you thoroughly deserve the success you are now seeing. Here's to the next five years.
Thank you Paul.
I may just have the hardest years ahead with some decisions to make
Well done 👏You are an inspiration Perry and the way you get on with things and don't make excuses is amazing.
Thank you Victoria. I appreciate that.
Congratulations, Perry! Amazing achievement! I'm super happy for you!:)
Thank you Marta
Fantastic! Great to see it working. Keep pushing. Hope to catch up again soon.
I’ll look forward to that Stephen. How’s the HMO going?
Happy anniversary and huge congratulations mate. You’ve done so well. Genuinely pleased for you, you’ve been such a help and inspiration on my journey. Keep going mate. 🤘🌱
Glad to have helped and thanks for coming on the journey with me mate
Well done Perry. Inspiring to watch your progress. Thanks for sharing.
Thanks Sean. Appreciate that mate
Congratulations 🎉. Nice to see you smiling. You've done really well.
Cheers David. Appreciate that mate
BZ Perry, we’ll done and congratulations on hitting the 5 year target. Been following your Journey for quite a while and your success is well deserved!!
Cheers Shaun ⚓️⚓️⚓️
Things are going to accelerate from here. They're going to compound. Your knowledge and experience are far higher. You know this is possible and that your plans are working. Good job, grinding it out!
Thank you Scott.
I think I still have a lot more to learn. My feelings towards wealth. When is enough. Spending more etc
Congrats Perry! It's been fun to watch your journey "from across the pond." What an amazing accomplishment in just 5 years, and you're well on your way to not only achieving your goal, but benefiting the many people who've been inspired and educated by your videos. Cheers to you, sir!
Thanks Allen
If I said I’d enjoyed every step of the way I’d be lieing 😂
5 more years to go.
Best wishes to you and your family across the pond
Perry, fantastic achievement. Congrats. I’ve been following your journey for a while now and truly inspired. Definitely worth a chat with you.
Thank you my friend. Drop me an email if you want at abnormal@stupidisthenorm.co.uk
Congratulations Perry, well earned🎉 looking forward to following the next phase of your journey.
Would love to do something like this, childcare costs remain a killer though and I want to be around for the kids so not sure how I could adapt your approach accordingly?
It’s tough when you have kids. It’s doable but your partner has to be massively supportive because of the sacrifices you have to make. It’s much more of a team game
Good for you mate. Hard work and a plan. 👍
Thanks Michael. Yes, that’s about the sum of it mate
Well done, I’ve followed your journey for a couple of years. Amazing that it could be done. I would like to reach FI one day, but it is still far in the future. On the bright side, I am only 31 years old.
Thank you for sticking with me August.
Oh to be 31 and know what I do now. I’m a it so far in the future because you have children?
Many congratulations Perry, what a fantastic achievement! I’m delighted to learn you have completed on your SA property, good luck with the fit out! I can’t believe it’s been 5 years! Hats off to ya, you have put in some graft alright!
Thank you. Still started work this morning at 0230. Still grafting mate
@@StupidIsTheNorm 0230 start? Are you working the airports while the kids are off school? Your commitment & work ethic are without question, look after yourself, keep well and graft on!
Yes mate. I lose £420 a week when the kids are off school so it’s got to be made up from somewhere 😂
Thanks again..and because you did it, I think I can do it too.. million thanks. Congratulations Perry.
I’m convinced you can Xoriyo
@@StupidIsTheNorm '😁!
Congratulations and very inspirational!
Thank you my friend
A superb achievement Perry! A very noble and admirable effort to help others. Where would you advertise service accommodation?
My property manager has the SA’s on Airbnb as am well as their own website. More importantly, he has established contacts within all the major commercial companies currently operating in and around Teesside, who contact him direct. Occupancy rates are at 95%
Congratulations on sticking with the plan and achieving the FI. I really enjoy watching your content and I'm rooting for your next 5 years so they go as planned.
And maybe have some celebration time due to the 5yr anniversary - wealthy people do that as part of their mental management process, so maybe it's worth giving a try ;)
Best to you!
Thank you Piotr.
Yes, I’ve told my wife that this is the last year of hard work (well, maybe up to Spring next year). So, next year we’ll take my grandson to Spain for a week
@@StupidIsTheNorm sounds really nice. I'm sure you're gonna spend some lovely time there. I wish my grandparents did that.
I’m looking forward to it Piotr
Great work Perry! You've executed your plan perfectly! Really interested in the whole world of serviced accommodation - you mention there is a big construction contract in the North East so no shortage of tenants, what happens once the contract is complete? Do you think there is enough demand to carry on, or would you look at selling?
I don’t believe in selling Thomas. At the very worst I’ll just convert the commercial mortgage to a standard btl and rent it as normal
Congratulations on becoming independent and reaching your halfway mark. That's great to hear and it's a milestone. I'll be interested on the progress of the SA, it's something I've been interested in, I am thinking of selling(not in an area where they'd work) some and going down that route in a company as the section 24 tax is a nightmare.
True Chris. If interest rates rise much higher, you could end up paying tax on a loss. It’s crazy
@@StupidIsTheNorm It's exactly that reason Perry. I'm just looking at different options, selling and reducing personal debt currently appears to be the best.
Good luck with whichever way you choose mate
Huge inspirations Perry - Very Proud.
Cheers Joe
Fantastic well done
Thank you Stephen
Well done, a story of hard work
Thank you my friend
Love the updates on the journey. Really motivational.
If you were starting today would your plan be any different knowing what you know now?
For example would one of the things you would do be to not bother with buy-to-lets at all and just save for for a serviced - accomadation property from the get go?.
Definitely Scott.
I occasionally consider buying 2 btl’s instead of the 1 SA, but that SA returns 3 times the money of the 2 btl’s. It’s crazy
Congrats Perry. In the 2 years I've been watching you've helped me to see just what is achievable once the totality of several positive financial actions start compounding. Now FI is a very real prospect.
Good for you pal. Glad to have helped. That was one of the reasons I started the channel, to show others on minimum wage what was possible
So good to see your plan coming together. I have a question re SA and that is what do you budget for furnishing a property to the required standard? I wouldn’t know where to begin. Thanks.
The company that sources my properties and manages them provides a 3 bed package for £9000 Mike
What a legend! Inspirational.
Thank you Mark
Well done Perry - brilliant 🎉. Are you overpaying on your family home mortgage? Thanks for the videos! Sue 😊
Thanks Susan.
God no. I’m not a fan of paying off mortgages. I prefer to let time and inflation erode the mortgage’s value.
My intention is to sell my home to my company and rent it from the company at a favourable rate
Congratulations Perry, I hope I can be in your situation in 5 years if rules don't change for SA 🎉
Thanks Trushir mate. Yes, that’s something I worry about too
An inspiration as always, Perry! As someone who works abroad, your videos give me confidence for when I eventually come back. Quick question, after you’ve set up your serviced accommodation, how much have do you think you’ve invested in to property so far?
Cheers Callum.
So, the first property I worked to put £20k into. That property paid me £400pm so I didn’t need to generate that income for the second. As it happens I put pretty much nowt into the second. Probably put £10k in the third. I refinanced the first and took £20k out so maybe £10k in the second. So a total (ish) of £40k?
So how did you square things with your friend who bought the 2nd house to share, if you could not buy the 3rd together??? I don’t understand how that worked, as you seem to be saying you put nothing into the 2 nd house but receive half the money and all the money from the other houses you have bought. Can you clarify that bit please.
Im interested in this too 😂
Sure Julie.
I’ve refinanced the property giving him a chunk of his money back and removed his name from the title so it’s in my name only. He may be picking up some bad credit and wanted to avoid me getting bad credit by being ‘associated’ with him on the mortgage.
See my response Zoe
@@StupidIsTheNorm thanks makes perfect sense. I have got an SA with Blue Skies going live this coming week, so I am really hoping the returns are as positive as you suggest. Fingers crossed, good luck 😀👍
Fantastic work Perry. Congratulations on such a fabulous milestone. What did you ever do about the damp bill of £9.5k for one of your BTLs?
Thank you my friend.
Do you remember I started with £10k of credit card debt? I’d just repaid it and 2 months later I borrowed it back. Really pissed me off, but by paying the cash (which I had), it would have slowed the purchase of my next property
@@StupidIsTheNorm frustrating but there will be hurdles along the way! At least this debt is not for anything stupid or frivolous - it was put to good use! I really appreciate you sharing your realistic journey Perry. You're my favourite person on UA-cam!
Haha. Thanks for that mate. Still a long way to go. Thanks for your support
Well done on sticking to your plan & achieving goals. Can I ask how you plan to attract contractors to your SA please?
Cheers John
I let the same company who provided the property let it out for me. They naturally have a website, but more importantly have massive connections with contractors who need accommodation
@@StupidIsTheNorm that’s brilliant, would you mind if I asked for their details, I have SA’s but in Liverpool 👍
Sure John. Email Mike@blueskiespropertyinvestment.co.uk mention that you’d been speaking to me
@@StupidIsTheNorm thanks Perry, I definitely will mention you, keep up the good work 👍
Actually Perry I wanted to ask, and maybe it merits it's own short video. All this income is taxable. So when you quote your cabby wage and rental wage is this gross or net?. I assume you now have an accountant to make sure HMRC are kept happy? Could you do a short video to explain the income tax implications your new milestone presents?
That’s a good idea.
The figures I quote are gross of tax. I have an accountant for my cabbing and the 3 properties I own in my own name, and a separate accountant for the property Ltd Co. That’s because it’s a relatively specialised sector of income and my original accountant wasn’t comfortable with doing the accounts.
It’ll be years before I pay tax in the Ltd Co due to me ‘lending’ the company £40k for the first purchase. That means I can take the first £40k profit out the company without paying tax as it’s the repayment of my loan
Your story should be on TV...
That would be nice 🙏😂
Great job, just wondering what you're doing with the money that your money is making lol, do you have it building up in a high interest account, though inflation will be devaluing that over time, or are you buying into stocks via an ISA or maybe commodities such as Gold?
I just save it in a bank and when there’s enough for another deposit m, I buy another property mate
What is your net worth now if you don’t mind me asking our member a few months ago it got to 100 K be very interesting to see what it is now cheers Perry
It’s only about £120k I guess because I’ve increased the mortgages to free up cash.
Although I say I’ll demonstrate how to become a millionaire on minimum wage, it’s mildly irrelevant and mostly dependent upon the market.
I say irrelevant because it’s the income that’s that provides the lifestyle. The net worth is ego. At the end of my 10 years, net worth may be o my £600k. However, that £600k may be kicking out net of £16k pm
How much was the serviced accomodation house when you brought it. How many bedrooms? How much did it it cost to make it look nice? Do you charge for a cleaner? Where abouts in Teeside are these properties? Thanks
Bought last Friday for £105k 3 bedrooms. It’s ready to use. I don’t charge but the people who manage the property charge me 20% of the rent. It’s in Hartlepool
@StupidIsTheNorm Thank you Perry well done and keep on going....
Thanks Anita
Did you buy your SA through a ltd company? Is it a two or three bed? Did you have to buy it as a commercial property so you get to pay business rates rather than council tax?… sorry.. questions over
Yes I bought it through a ltd co using a commercial mortgage Jack.
The property remains liable for standard council tax as it’s still a domestic/residential property.
Well done Perry. Total respect for the grind. Trying to figure out my own way to make this work for me without having a supportive wife to raise my kids and run my home 😂
If you have a trusted friend or relative that shared your goal and vision, that could work Zoe
Congratulations Perry. Are you kitting out the SA yourself or having a company do it for you?
Cheers Joe.
My property manager is kitting it out. It’s £9k (I’ll do all the figures in a later video)
Thank you Perry. I’m a month or two behind you with my SA purchase. I’m definitely following your progress with interest.
@@StupidIsTheNorm Blue skies charged me 12k, which I was not expecting it to be so much??
@@juliead3774So did it cost you £40,000 for everything or more than Perry is saying?
Good achievement- are all the mortgages owned on interest only? What are the longer term plans at end of term?
Yes mate. Btl and commercial btl mortgages are by default interest only.
Firstly, as an investor you NEVER repay the mortgage. Inflation will repay the mortgage.
At the end of the 25 year term, you simply take out another mortgage, repaying the first one. If the rules have changed and you can’t take another mortgage, then the property is sold, the mortgage is repaid, and after paying capital gains tax, the balance is yours
@@StupidIsTheNorm hmmm which is fair comment assuming the property increases … now I appreciate that most of the time this in theory does happen however if the counter argument is property will grow at a faster rate why not use the savings to chip away at the balance to leave in an even better position.
It leaves you in a worse position as a return on investment.
Let’s say a property is worth £100k and I have £100k. Say that property rents for £500pm. I could buy it outright and trouser £500pm.
However, if instead I use the £100k as deposits on 4 properties, I make £500 less a £220 mortgage, but I now have 4! That’s £880.
Then if my property with no mortgage rises in value by 10% I make £10k. However, if my 4 properties rise by 10% I make £40k!
@@StupidIsTheNorm makes sense but I think those figs are slightly low 280x4 - 1120….. I get the point though- most lenders have a view on btl 75% Ltv and I assume you always ensure the right rental threshold 150% to avoid any affordability check? Assume these are also just in sole name too?
Because I can use the money to buy more property which is a better return on the money than paying down debt
Well done. Is there a way we can invest in teeside as well? Do you have any contacts I can link with?
Of course Kamal. I’ve bought my properties through Blue Skies. Here’s the link. They manage them too so I’m completely hands off. Mike@blueskiespropertyinvestment.co.uk just mention my name. He’ll probably say ‘who?’ 😂
@@StupidIsTheNorm Thank you.
You’re welcome mate
are you still buying houses around the £50-60K mark?
I just bought one last Friday for £105k. 3 bed terraced in Hartlepool. I’m using it for Serviced Accommodation and should net over £1000 pm
How much has the first income reduced because of interest rates ?
Hi Craig, from around £1100pm to £660. On the plus side, when I became 60, an investment in a pension I had with The Forces kicked in and pays me £400pm. So, I’m not penalised so much by interest rates
@@StupidIsTheNorm and do you have any other coming off fixed mortgages? or they are already reflecting the higher rates?
2 of them reflect the higher rates. I took the opportunity to raise further finance on them at the same time, and released £30k in equity. I’ll refinance the last of the 3 in December, and use the cash out of it to buy a second SA and my fifth property over all
Impressive
Thank you Tim
Please take a well deserved vacation
Thank you my friend.
I need to buy one more, which I think will complete Spring time next year. Gross unearned income will be around £100k then. I plan to take a week of during the autumn half term with my wife and grandson
❤
Cheers mate
Are your mortgages affected by section 24?
The first 3 I bought in my first name are, but moving forward I’m buying through a Ltd Co to avoid that point Shaon
You are from whales, right??
Newcastle mate. We’re often mistaken for Welsh though- it’s the Celtish twang