FLAT or HOUSE Investment? Which should YOU invest in?

Should you buy a flat or a house for your next property investment? In this video I'm breaking down the difference between the two and what I do with these types of properties. I have purchased both houses and flats and really what is comes down to is freehold and leasehold.
Over the last 10 year and I wish I knew this information about flats and houses when first started.
IF you've got anymore questions about anything then drop me a message on instagram @JamieYorkAspire and put "KZbin" so I know where you've come from and I'll reply to all of them.
Make sure you subscribe to the channel so you don't miss my latest video! / jamieyork

[@kh-wg9bt]

So useful for me.. I'm renting out a flat 10 mins from liverpool city centre. Ive got a career (which I enjoy) and work 50 hours a week. so I can't afford the time for tons of refurb or maintenance. Nice apartments just outside city centre seem like my best option.

[@JamieYork]

Sounds great! Everyone has their own preference

[@MarkHunterSolo]

Like your straight talking approach & you don’t waste words - thanks for the info👍

[@138FrOsTy138]

I was struggling to chose between houses and flats but I managed to get a 60s flat in a nice neighborhood (surrounded by 6-800k houses it is by far the worst building on the best streeet) with some decent lease terms, all residents hold a share of the free hold and volunteer so the service charges are very low, I feel this was a better choice than the houses in my budget which were decent but no where near amenities and transport links. When its done I will be aiming for a free hold house though!

[@JamieYork]

If that works for you keep going with it! Great Work

[@BillyLingard]

I like 1 bed and studio flats in city… if all else fails there’s a good amount can be made form air bnb or student lets

[@JamieYork]

You need to be careful to have the permission from the Freeholder!

[@dmitryzenkov6396]

Great video, thanks. I would point out that flats have one advantage you did not mention, which is they are suitable for a more ‘convenient’ type of tenants ie the ones with no kids, no pets, no visitors for bbqs etc. Just my 2 cents for a more balanced approach :)

[@JamieYork]

That's very true, you do tend to get a slightly different type of tenant! Worth adding, my opinion changes slightly if you can buy the block, with the freehold

[@annastachowiak2692]

Exactly that for me too. Aiming at professional tenants. Plus with the expected ability to get 990 leaseholds soon its a win for me. Got my 1st BTL flat this year with 990 lease already :-)

[@Avdarmaly]

@@annastachowiak2692 what postcode did you buy your BTL?

[@annastachowiak2692]

@@Avdarmaly NN1

[@annastachowiak2692]

@@Avdarmaly NN1

[@mollyt4639]

In scotland all flats are freehold too. Main negative is the factor/ management company fees. Can be extortionate!

[@andrewnkany]

this was very helpful thank you jamie i wasnt sure if to invest in a house or flat for my first property

[@JamieYork]

Glad it was helpful! Good luck or your house ;)

[@weekender45]

Really good advise Jamie. Not seen may expalin it as good as this.

[@JamieYork]

Cheers Roger!

[@whatever04811]

I’m saving for my first buy to let. Is getting a small personal loan for a down payment a good idea? Also, i will have to buy a flat which will be Leasehold as flats are cheaper. I realize that I will have to pay my deposit loan as well as mortgage BUT my exit strategy is, like Jamie’s, death. So even if I have to pay service charges and ground rent but at least I could refinance in few years and borrow against buy to let property. Love the videos, Jamie! Keep ‘em coming!

[@JamieYork]

Don't get a personal loan for the deposit! You need to work more on how to Make and Manage your money first! If you can't get the deposit yourself then you shouldn't buy the property! If you're only buying a flat because it's cheaper then don't. Work harder to make more capital and buy the BTL's that you want! Get educated and then you'll be able to smash it! Short term pain = Long term gain!

[@LightninBolt]

I just bought a freehold flat in Devon with no service charge so...

[@JamieYork]

Nice! Great find! Do you own the freehold to the other flats in that case? Massive congrats 😊

[@tecknoid659]

@@JamieYork sorry to jump in on this awesome videos thou what is your view on investing in luxury apartments in big cities like Manchester and Birmingham for example

[@troyaikman888]

Hi Jamie can you talk about the cladding crisis for leaseholders,as most of us are still in the dark over this fiasco? Nick woolcott love your videos

[@explorewithmana780]

My God I love you, I am serious struggling to decide which is better off. Thanks for this video

[@jt305]

was very confused which to buy much clearer now!

[@JamieYork]

Awesome!

[@gregguk100]

Something to think about when buying an ex-council flat is that the council has you by the balls... New roof - Door entry system - decoration of shared space.. Could be dropped on you. New roof £4000 per flat Door entry 1000 per flat per door and £1000 to decorate corridors.. Since grenfall - exrea fire and safety measures... Hope this helps as I have been stung.. Service charge of £400/A is ok

[@JamieYork]

Wow! Thank you for sharing your experiences!

[@nikkion2140]

Thanks for this. An agent told me ex-council is cheaper running cost...which is not true. I just got rid of my flat costing £4500 per year service charge (parking bay..) even with £50 ground rent. So I am very reluctant to go for an ex-council flat. Having my fingers burnt, I am now looking for a freehold house only.

[@gregguk100]

@@nikkion2140 All about the numbers really and spreading the risk, I have both freehold and some leasehold properties..

[@ruthhughes6567]

Thanks Jamie trying to get my head around leasehold because our area is South Wales and some houses are still leasehold there. Really learned something, especially section 42.

[@JamieYork]

Glad I could help!

[@swanseawales1979]

Thanks for the upload. Learnt a lot from this video. Have a great weekend

[@danielh260691]

I'm in Scotland so house prices are alright. Personally I'd rather a house to a flat. If I bought a flat as soon as I got all the furniture, I'd be looking to buy a house. Think I'd rather just buy the house

[@JamieYork]

I'm team house 80% of the time!

[@teesquare7627]

I really needed this today. Thank you!!!!

[@JamieYork]

Happy to help!

[@alisonnorcross951]

Flats nightmare. Leaksx2. Reliance on when to do maintenance. Only own to plaster. Need permission from freeholder to do anything. Carpet required everywhere. Our flat had a huge pitched roof above = belongs to freeholder they could use it.

[@JamieYork]

Yep, that's why I'm not the biggest fan!

[@connorsmith1406]

Great advice Jamie, helps me out for sure!

[@JamieYork]

Happy to help!

[@thenewmayorofcrazytown7392]

That video was more Lease versus Freehold but still good.

[@JamieYork]

Very true, 99/100 that is the difference between a flat and a house! Those virtual freehold are the odd ones out!!

[@thenewmayorofcrazytown7392]

@@JamieYork A lot to learn. I’ll stay subbed for while!

[@Dan-kr2hg]

Lol, I’m no minted *****! But thanks for your advice, I just want to get as rich as possible as you do

[@JamieYork]

Yes Daniel haha!

[@nickyhannah8443]

Just starting up in property great information Jamie 👍🏻

[@szltfamily8195]

soon you will be able to extend lease to 990 years at zero ground rent.

[@JamieYork]

Personally i can’t wait for that to happen 💪

[@Goady1000]

Really?

[@lmia1160]

Stunning presentation 👏 honestly I've learned a lot in this just one video. Your happy new subscriber 👍🏻 love your humour

[@JamieYork]

Thank you! Glad it helped you!

[@jamessuman5652]

Nice one Jamie, it kind of confirms what I'm thinking.

[@JamieYork]

Glad it helps bud :)

[@AndrewLeeming]

Quite a lot of Manchester is leasehold houses. Not quite peppercorn rent tho. Seems like companies bought up all the freeholds either at development or ad-hoc. Think it is still only £15 a year but did make me a little more worried over bizarre restrictions and ownership

[@desidesigning]

Just one more tip. Banks would not mortgage freehold flats or coach houses! Don't know why?

[@JamieYork]

Do you mean virtual freehold flat?

[@iggymendelson1626]

A question: if everything in the flat that’s behind the door is mine, and I split the 30m2 room into two of 15m2, each with a window and a door, on what grounds can the freeholder sue me? Just because of putting up a lightweight plasterboard wall?

[@David-yn5bs]

So basically, a Leasehold flat is shit?

[@JoeMarine]

If only I had this information 3 years ago. Great content Jamie. Just about to complete on my first buy to let. I think I made every error in the book on this one. But I learnt a lot. So I plan to take the losses and turn them into lessons.

[@JamieYork]

Glad you got some value mate! Here's to the next 3 years 💪

[@colincameron5012]

Lol :-) did I notice a not so subtle dig at a well known Progressive Property VIP award winner who is successfully converting one bed flats to two beds in London?

[@JamieYork]

No way mate. Genuinely I really like progressive and it’s not my style to call out people. No idea who you’re on about in this case, so don’t name names. It was more an example of what some people do is all. Hope you got value from the. Idea lad 😊

[@mzeeshan]

Cool Informative video. Would you be kind enough to provide some info about whether the off-plan new-built virtual freehold apartments/flats with zero ground rent and 999 years of the lease would be a good first Buy-to-let investment or not and what are the pros and cons of this type of investment?

[@jimmythejetsetter]

Thanks for explaining everything so clearly Jamie, loving the videos!

[@JamieYork]

No worries James, glad you got some value!

[@bendubben6957]

I live in London, I have the dilemma of wanting to buy my own place soon vs starting a property portfolio. I still have my first-time buyer stamp duty allowance which I guess leans me towards saving for my own place before investing (I lose it on a BTL), but because of the longevity of this investment type, I'd also like to start my property portfolio investment ASAP! (Learnt that one from monopoly ;) ) Do you have any advice, personal preference? I guess I'm also unsure about holding property across the country where potentially I can't be on-premise to buy/fix the property, do any renovations myself or even show tenants around. When you first started and while you had your job to help fund the investments, did you only buy the property that was easily accessible or did you build the confidence to invest further afar? All your videos are really informative, thank you! - My favourite property investment videos on YT and sharing with my friends with similar interests.

[@FatosAyvaz]

Hi Ben, same here and I decided to buy BLT first on my new LTD company, and that way I will keep my FTB option to my name personally which means my own one will a personal purchase. Best of luck

[@mrm8818]

His first property was his worst purchase. Was out of area. They say you should hire a letting agent if more than an hour distance.

[@junaidkhan-et6hv]

@@FatosAyvaz this is the way

[@chickdem]

Your dry humour is undercover funny 😄

[@JamieYork]

Haha Thanks ;)

[@nigelforde6299]

Hi, what is share of freehold, this is appearing in some London flats, what is the advantage and disadvantage over leaseholds in general, thank you.

[@nabazmasifi971]

Hi Jamie I’m own my house. And got 100k to invest do you think buy 1 property or 4 of them.sorry for my English I’m still learning.

[@danaakal-kawari6924]

I had the same questions when I started, 2 or 6, I was advised to make my cash work harder by buying more and to spread the risk over several. It is dependent on what your strategy is whether it be for cash flow or growth. I wanted the cash flow so as I was able to drop part time. Buying more properties doubled my cash flow, I'm in Scotland by the way so my money goes further in my investment area. I'm newish to this as well so I hope Jamie doesn't mind me commenting.

[@JamieYork]

I'd want my money to work harder so I'd always go for 4 properties with my 100K :)

[@JamieYork]

@Dana Of course I don't mind :)

[@gerardjachymiak5822]

Well to help your English it's " I own my house " not I'm own my house also you should not put a full stop (.) Before also not " and got 100k to invest " " and I have 100k to invest " or "and I have 100k to invest" no hate I'm an immigrant is well and everyone understands what you typed but if you want it to be perfect.

[@waelelamin1881]

would it matter if the intention is to sell it within the lease period as it achieves capital appreciation which in some key areas are the likely outcome?

[@Goady1000]

My leasehold says I can't have a TV or music so fuck it - I will do what I want lol

[@JamieYork]

What kind of bloody leasehold do you have 😆

[@Goady1000]

@@JamieYork its on the covenants as well.

[@nathanwilliams7901]

I'm looking at buying a 4 bed split into two 2 bed flats. It's a single house and there's a leasehold on 1b but not 1a. Leasehold is putting me off.

[@JamieYork]

Yeah Leasehold has loads issues you need to be weary of

[@nathanwilliams7901]

@@JamieYork just had an email that the lease has been surrendered 👍

[@teesquare7627]

You’re fab Jamie

[@JamieYork]

Thanks so much, glad you got value!

[@HelenaWhitehead]

I've got a Lifetime ISA to buy my first home, however I moved to Cambridge where it is so expensive and I wouldn't be able to get a mortgage so large. I would prefer to buy a house somewhere cheaper and rent it out, but the LISA doesn't allow this. Do you have any suggestions or know any loopholes?

[@iplaywaytoomuch]

My girlfriends in a similar position. We live in my own house which has enough growing room for a long time yet so we don't want to buy another, bigger house together. But she is still a first time buyer and doesn't want to lose her cash sat in the LISA which is tied up. Equally she would like to benefit from a lower deposit I guess but would need to essentially find a friend to rent it for a couple of years lk that case and it would all be slightly rouge 👀

[@JamieYork]

Switch it over to a Stocks and shares ISA. You still get the 25% bonus benefit, but you don't have to use it for property investment

[@HelenaWhitehead]

@@JamieYork If I switch it, then surely I pay the penalty and lose the bonus?

[@eliasbeverley3274]

J I would like to go into a buy to let see previous comments

[@JamieYork]

Good Luck!

[@joshhollywood]

Interesting mate different in Scotland, is that a whoop I spot

[@JamieYork]

Scotland is different! I'd love to buy property up there!

[@eloisebevan1316]

Hey Jamie, thanks again for a great video! My understanding of freehold and leasehold is definitely a lot better now, I found the explanations on the web to be unclear, but your explanation was great! I live in Scotland and most of the flats here are freehold, but most mortgage lenders (apart from Scottish ones ie Clydesdale!) don't seem to like freehold flats and require them to be leasehold, do you know why this is? I'm not sure if you've invested in property in Scotland? But if you have, a video of your experience and knowledge would be greatly appreciated given the different rules and what not! Elo

[@philliposborn8488]

I'm currently in the process of buying a flat that is leasehold, but I own part of the freehold shared out by the other leases. Shall I be worried or happy?

[@JamieYork]

Should be ok but you won't have control of what other people do

[@AbiBloomUK]

Not sure if you’re aware and I haven’t watched this all the way through yet, but you’ll really really struggle to buy a flat in the UK at the moment. Banks want EWS1 forms for buildings whether they have cladding/timber balconies or not. ARMA had 98% of their buildings coming back as failing these surveys due to missing fire breaks internally and externally behind brick (and other safe materials). Literally no lender will lend on flats these days. I’m part of the End Our Cladding Scandal campaign by the way, so unfortunately I know this subject inside and out 😞

[@JamieYork]

Just another reason I prefer houses more than flats (just a little 😉 ) Although, I just want to be clear, there are 100% added checks now especially with the added questions around cladding, etc. especially in some parts of London following the horrible incident. That being said, it's still relatively simple to purchase and get mortgages on flats in most parts of the UK subject to the individual's lendability and location of the flat, lease length, etc. I've bought and traded a fair few flats this year already, with the most recent completion being just a few weeks ago. Again, I massively prefer house purchases, but flat sales are still incredibly normal and makeup around 18% of the yearly property sales in the residential property market.

[@AbiBloomUK]

@@JamieYork I know, I massively regret buying our flat. We could be homeless and bankrupt soon as our expected bills are £80,000+ to install fire breaks behind the brick work. Signed off by the council, owned by the Church of England but as a leaseholder I’m liable. Unfortunately it’s affecting over 4M people in the UK. It really isn’t that easy to get lending on flats in UK though. I meet with the Directors of UK finance regularly and their lenders will not lend without EWS1 forms. These forms were introduced by Jenrick on the back of our lobbying to help high rises sell whist the others were remediated. However we’re seeing houses and low rise now being asked for these intrusive surveys. Most of which are failing due to shoddy building work. Unless you’re in a flat that is really a house, and not a purpose built block (in most cases) you’ll struggle. The building safety bill that is being passed through parliament at the moment means building owners can pass bills on to leaseholders for any historic defects, leaving leaseholders liable to pay in only 28 days. We’re doing our best to protect leaseholders, like myself but the b**tard conservatives aren’t having it. Buying a flat has ruined my life. Being bankrupt is something I never thought would happen to me as I’m very good with money but this is corruption on another level and millions of leaseholders are paying the prices 😞

[@JamieYork]

That’s absolutely insane! I know there’s a court case on at the moment but surely the leaseholder paying for it all isn’t the outcome?! Let me look into this for you and see if I can help you in any way!

[@AbiBloomUK]

@@JamieYork Legally most leases allow anything to be passed to leaseholders. Developers created shell companies to build these buildings and then dissolve them. The biggest developers are not even being held accountable. It’s criminal really. I ‘work’ with the Housing Minister but gov are focused on the combustible materials and not all the other defects due to systemic failures. I’m just hoping we get a good outcome soon. We found out in Oct 2019 when we tried to sell. Nothing had changed since other than the 10% cladding on our building being funded which costs £2M! Funding doesn’t cover other safety defects which is where we’ll see the massive bills. My neighbour has already gone bankrupt as we paid £400 a month each for a waking watch for 18 months. This is literally a security guard 24/7 watching out for fires. Leasehold is literally the worst thing anyone can sign up for. Unfortunately for us, it wasn’t an issue when we bought in 2017 (pre Grenfell)😞

[@Avdarmaly]

@@AbiBloomUK any update since your last message?

[@muhammadawan3204]

Hey Jamie some really great content and explanation do you provide any help service for advisory I am looking to go on property market I already own couple

[@JamieYork]

Drop me a message on Instagram and lets see how I can help you :) @JamieYorkAspire

[@muhammadawan3204]

@@JamieYork just pinged you there thanks Jamie

[@mz2081]

Hi, do house investment pay good rent, I am thinking of investing in btl properties in order to get good returns .I am thinking of liverpool, as it has postcodes and properties that pay good rent , but the ones I've seen are all flats, how should I go about it?

[@eliasbeverley3274]

So Jamie this is what I have a #semi #freehold #owntheground understood in central bham 3bed house #inherited! am looking to sell you may ask why not keep it needs refurb no funds also need to buy out other individual any suggestions?

[@JamieYork]

Maybe look for an investor to do an assisted sale! They refurb it and make a profit and you make more money!

[@kh-wg9bt]

@@JamieYork great idea. My dad has a huge corner 4 bed with literally room for another house in the garden. I need to have a think about how we can maximise the value. Could probably sell the land if we got planning permission. Or maybe extend the house and do a major upgrade through an investor like you say. 1 step further would be get planning permission and get a mortgage for a self build

[@eliasbeverley3274]

@@JamieYork thank you @JamieYork #novice how would I first go about this any suggests

[@janporkpie]

Some excellent videos Mr York. What's your take on complete management services for non mortgage buyers - firms such as Find UK Property?

[@JamieYork]

I think it's a great shout, and something that I'm going to be seriously considering down the line myself as a business

[@tecknoid659]

jesus christ we deffo need the blues clues guys these drawings are something else

[@JamieYork]

I’m an artist mate... just not a very good one 😂

[@eliasbeverley3274]

Hi Jamie subscribed and belled Yr #algorithims luv Yr vids

[@JamieYork]

Thanks for subbing!

[@ClipsReacted]

A great stock is AAZ ( Anglo Asian mining) you should have a look before it shoots up

[@JamieYork]

Maybe I will...

[@MrScarysmiles]

sell those drawings as NFT's and you'll make a million a week

[@JamieYork]

I'm the new Banksy

[@iplaywaytoomuch]

I've just been thinking about this exact question. My thoughts were that I personally would likely outgrow a flat more quickly and so my tenants would too which could lead to a higher turnover and more void periods. Also void periods could be a little more expensive due to the SCs and GR. Is this in line with your experience or am I just overthinking it?

[@JamieYork]

You're right with everything you say!

[@massimilianozingarelli5116]

Hey Jamie, what about situations in which the flat will be most likely let to students around the city? I want to get on property investment ASAP but I don’t have enough money to buy a house. What do you think about 2 beds flats investments in this case?

[@JamieYork]

I know people who do very well with 2 bed flats around a city with both student lets and also SA's (Serviced accommodation) What do you want your strategy to be? Do you want to buy flats or is that just because flats are cheaper? You need to work on making and managing your money first and then you can be ready to buy the properties you want. Short term pain and long term gain.

[@bob1234881]

Free of charge at £19.99 🤣 P.s. 99 doesn't work anymore. :)

[@JamieYork]

Damn it, they need to change it to 97 now 😉

[@TC_Design_Creation]

You on twitter?

[@JamieYork]

I'm not properly on there. Just instagram mainly!

[@TC_Design_Creation]

@@JamieYork I dm’d you on Insta...

[@ahmadalwadi9156]

3:16 uhm, not to critique your work, but wtf that chimney to house ratio lmaooo

[@JamieYork]

Don't you dare insult my art work 😉 Want to know what's worse? That was meant to be the garden. Unsubscribe, I don't deserve your loyalty 😂

[@ahmadalwadi9156]

@@JamieYork AHAHHAHAHA no way that's the garden lmaooo, really thought it was the chimney. Also, just finished the video and a question popped, like see when you ’buy‘ a flat, after the lease ends, like do you have to buy it again or is it just a trivial legal amount. Also, would you be able to sell it? I mean you have signed a lease.

[@JamieYork]

😂 You have to get a lease extension once it goes below a certain number of years. Usually this cost around 10% of the property value, but it really depends on the location. If you let it go to zero (why would you) it technically would go back to the freeholder! 😳

[@ahmadalwadi9156]

@@JamieYork damn, flats seem like a scam ngl lmaoo

[@paulmessenger9836]

Do you have to speak to people like they are children

[@JamieYork]

This is the first comment like this in 4 years. I don’t think I do, I think I’m trying to simplify complex content. Appreciate the feedback

[@usy5475]

First

[@JamieYork]

WAHOOO