How I Bought a £600k New Build Flat in London at 25

[@zacwangldn]

I bought my first flat in London at 26 and I made sure it was a share of freehold. I never considered shared ownership flats because I felt like they were not that great of a deal as you'd still be paying rent on the percentage you don't own, but after watching your video I must admit it can definitely be a smart idea especially if you taken in one or two lodgers!

[@MattBrighton]

ahh awesome - I guess it was an older building that was converted rather than purpose built flats?

[@garethsmith1436]

Exactly my thinking I did the same thing. Unless your salary increases massively you'll never be able to staircase to 100% plus selling it can be a nightmare. I would never consider shared ownership or help to buy having read many horror stories. Appreciate it is there to help people but I think many people don't actually review the negatives. Pretty much like marriage, just rush in without thinking about it. If your clued up sure it can help some people

[@odysseasv7138]

Share of freehold flat? how

[@garethsmith1436]

@@odysseasv7138 You have to find one first. Not as common as leasehold obviously. Tends to be period conversions rather than new builds

[@zacwangldn]

@@MattBrighton Yes indeed. It does comes with its little issues but so does every home I reckon!

[@CamsCampbell]

This is delivering all the value Matt. You're an inspiration on the course!

[@Akta]

This was so valuable thank you so much Matt! You're my weekly dose of property education, I love it!

[@imsk6729]

The title is very wrong...

[@ChikaW]

This is hands down the best video I have seen on shared ownership.

[@MattBrighton]

This is hands down the best comment on this video 😀

[@FreeyourFinance]

Great video again, Matt. Genius idea renting rooms out! Wish I had done it when I was living by myself!

[@GhanYt]

Inflation and Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years..........

[@bahijarhafiri]

You need a Financial Advisor my friend so you don't get ripped off in the market. They provide personalized advice to individuals based on their risk appetite, placing them among the best of the best. There are bad ones, but some with good track records can be very good.

[@amyrylance1387]

Fellow northerner taking on London by storm! I’m also buying this year (but I’m using the equity loan) after 3 years of renting in the Olympic park so I completely resonate with the sudden realisation of the money you’ll never get back! Good on you for making it happen!

[@amyrylance1387]

@@MattBrighton when I started looking I was looking at both shared ownership and equity loan but I couldn’t find a shared ownership property in my desired areas and affordability that was able to be rented out as usually you can’t have a lodger, but I found my flat in Croydon on the equity loan scheme and it benefits from the 40% equity loan which is an ideal bonus!

[@DoctorRadhika]

I'm so impressed! Have come here from PTYA. Congratulations!!

[@MattBrighton]

(re-commenting) Thanks! Glad you found this useful. London is definitely different to Sheffield property prices for a flat in the city haha.

[@imsk6729]

Shared ownership😢😢😢

[@ladylizajane]

Shared deposit scares me because I’m not so familiar, thanks for sharing your experience this is helpful.

[@MattBrighton]

You're so welcome!

[@RayRay79]

Hello, re affordable housing, do you not have any restrictions re additional other property investment?

[@vincentrenz58]

Cheers for the video it’s been very helpful, that’s good to hear you can rent out the other room someone told me before that you can’t rent out a room when you have shared ownership, which put me off the idea

[@MattBrighton]

It all depends on the housing association. It was the first question I asked mine - some do, some don't!

[@vincentrenz58]

@@MattBrighton cheers for the reply Matt will be looking into it seen 3 bedroom apartments in Harrow with a 30% share costing £200,000 all in with rent, mortgage and service charges works out around £1700 a month, rent for a room in the area is between £600-£750 (in an old building) so looking like a good option indeed, originally was planning to buy a 1 bed in Watford for the same money, just shows how the KZbin algorithm can literally change your life plans 🤣

[@guypennell5713]

Great video mate!

[@TheTshego]

Hey Matt thank you very much for this video I really appreciated it I also like you have been renting in London for about three years whilst I finished law school and I’m now thinking about buying my own place. I definitely do not want to live in London for the rest of my life so Shared ownership might be a good shout at the moment so thank you! Subscribed.

[@MattBrighton]

Glad it was helpful! Shared Ownership is a great little stop gap to gain some equity in a property!

[@RS-po8mx]

You did not want to pay for rent, so you bought an apartment but you end up to pay rent still every month. Would it be not better to pay those 700 into your mortgage rather then rent for ownership to others ?

[@dariodimi]

I agree , it seems to not be making sense to me . Also you still have a flatmate that occupies your house . Not much of a good deal to me 😅

[@coco128431]

Matt is it worth buying a leasehold flat on it's own or should you buy the freehold of the flat as well to be able to pass it on to generations ? based on the fact that some leases can last only between 80-100 years.

[@MattBrighton]

Depends if it's purpose built or not. If it's a purpose built block, obtaining the freehold might be hard, but if for example somebody converted a house into 2 flats, one downstairs, one upstairs there might be reason. Depends on what value or benefit the freehold brings for you.

[@coco128431]

@@MattBrighton Thanks for the advice Matt. I will definitely aim for freehold. With freehold the value will continue to rise and there is a lot less to worry about. I think the best way forward would be owning most of the flats in the building and than applying for the lease to covert to freehold :) btw your videos are great.

[@bajajmusic3825]

Are you not paying a ridiculous amount in benefit in kind tax, you should definitely look at staircasing especially as your property is increasing in value.

[@MattBrighton]

Yep, BIK is about £100 a month so not too crazy but balances out the benefits of the mortgage rate

[@bajajmusic3825]

@@MattBrighton especially as rates are so low right now.

[@beltingtokra]

Those monthly payments are more than my income 😳 but having a lodger sounds like it's working 😁

[@revmane5578]

In my own opinion this isn’t a great investment, short term yeh make a bit on the side with flatmates but long term you are still locked in by the government scheme not to mention your service charge is probably increasing at a crazy rate. I would avoid lease holds like this like the plague buy a old freehold place and do it up yourself

[@MattBrighton]

Agree! Definitely not the best but managing to keep it 'ok'. But would much rather get an old house and do it up next on a freehold!

[@tchi9endaz]

Hi thanks for your content!! Are we able to have our residential property through Shared Ownership and invest in buy to let properties elsewhere? (As in wouldn't it be in breach of the contract?)

[@MattBrighton]

Yep - that's allowed, as long as the shared ownership place is your main residence where you live. That's what I'm doing at the moment

[@tchi9endaz]

I am currently trying to find out whether this is possible with help to buy as well as I got my residential flat using this.

[@MattBrighton]

@@tchi9endaz Only works for new homes & I think first time buyers as a residential property to live in. May be wrong

[@tchi9endaz]

Yes it's only for first time buyers you're correct. But I meant I have already bought my property using HTB and planning to invest in BTL but not sure Im allowed thats why I was curious about your case where you purchased using shared ownership.

[@NO-TALK-GuitarPlugin]

How much do you pay of property taxes per year?

[@MattBrighton]

UK council tax isn’t too bad as it’s only a 2 bedroom apartment so about £120 a month

[@imsk6729]

Uk don't have yearly property tax like usa... we have a large lump sum stamp duty to pay on completion of purchase.

[@yuewang4410]

Thank you for your video Matt, one question: when I researched the shared ownership plan it is said you cant not sublet your flat. How did you manage to rent your room out?

[@yuewang4410]

@@MattBrighton Thank you very much Matt this information is very helpful!!

[@colouring_beek]

Four jobs at uni?!? What did you do? I'm at uni I don't even have time for one

[@colouring_beek]

@@MattBrighton impressive!

[@saltykatherine]

I have 10 so I need 30 more. However, my credit score is very low as I did not use any credit card. Now i am using them and paying in full but it is not increasing that much. I am stuying accouting and I am 24. Any tips for my self

[@MattBrighton]

If you run a free credit check on experian, credit karma etc or the others it might give you tips on what you need to do to improve your credit

[@tlannan2208]

Thank you so much for sharing, i have been considering immigrating from Australia. And the lease hold situation is really confusing.

[@jiaxiliang4038]

How did you find a housing association which lets you rent a room?? Who are you with? I thought it was next to impossible. I’m considering doing this with help to buy equity loan but I don’t think mortgage lenders allow it :(

[@MattBrighton]

Few and far between! It's the first question I asked when meeting them on viewings

[@taresy6789pp]

if you have no income how can you start saving for 100k maybe in my dreams but an help would be appreciated, for deposit for mortgage

[@dasomna6191]

Hey Matt! Thanks for a great video. I've been browsing a few similar video but I've found yours most informative and genuine! I'm considering doing the exact same thing and want to ask you why would you avoid a new built if you do it again. Do you think purchasing resale of Shared Ownership has a better potential to increase the equity? Also, you found any other associations letting lodgers, it would be great to know! Thanks:)

[@MattBrighton]

I've just had mine formally RICS valued and it's increased £35k in 3 years which isn't bad, although it's only 7.5% over 3 years which isn't the best - that being said it's more because flats in London aren't performing as strong as houses outside the M25 so not related to the shared ownership bit. New builds can be great, but buying off-plan always comes with risks. We've been looking at housing developments recently and I keep finding things wrong (EG built next to a motorway, houses in dodgy locations on the master plan) so it's just doing the research, versus viewing an older house where you know EXACTLY what you're buying. Purchasing Resale could also work, with shared ownership - everything is RICS valued whether it's new or resale meaning it's a fair market value, rather than going via an estate agent where the price is up for negotiation. So for me to sell my flat, I have to get a RICS valuation and the housing association take that as the sale price with no negotiation which has it's pros and cons. Where as an estate agent might add 10% to over-egg it then negotiation begins.

[@dasomna6191]

@@MattBrighton Hey thanks for a detailed reply. And congrats on your home getting a descent valuation! Can I expect a vlog about your selling process as well? That would be super useful for lots of people:) Ohh I didn't know that resale also has go go through RISC. Great to know. Thanks! I guess in that case I should consider both new built and resale and do my numbers. Would you say closer to central would have a better market potential than new development areas in zone 2/3 London?

[@moa3668]

Hi Matt- thanks for the video! I was just wondering how your mortgage works - my (basic) understanding was that there are residential mortgages (where you live in a property) and separate mortgages when you’re buying to let. Which one do you fit under?

[@i.i1215]

I bought a 1 bedroom that I 100% own, which for me is more viable than a 2 bedroom with shared ownership. Also I wouldn’t want to share my home with a stranger , as I am a woman and it’s not really if my culture.

[@imsk6729]

100% my thoughts and totally agree. I so strongly dislike shared ownership and to share hone...bathroom and kitchen with a lodger... no thanks 😢😢😢

[@darelis420able]

Hey Matt! Great video, thanks! I wonder how you end up paying for the mortgage only at the end of the month? You claim service charge and rent against your lodger profit, but you should still be left with roughly £900 left to pay - is there something I’m missing? Basically, I’m trying to do same thing, but in my calculations I’m still left with some additional costs on top of the mortgage i.e. bills.

[@MattBrighton]

Finances have changed a bit since this video but it was essentially £2k costs roughly including bills, £1150 from spare room, then split the rest with my other half.

[@ArianaBerkeley]

@@MattBrighton so did you buy with your other half as well?

[@laylakarimi6589]

did you have cladding issues?

[@MattBrighton]

Thankfully not!

[@enochkan4312]

Great video. How do you purchase more shares? And how much does it cost to buy up to 100% of the shares?

[@enochkan4312]

@@MattBrighton thanks for the quick reply mate. Very helpful for someone like me who's just moved to the UK. Keep up the good work.

[@MattBrighton]

Thanks appreciate it! :D

[@kumyveluppillai2597]

Really nice breakdown - How have you found being a live-in landlord?

[@TELEVISIBLE]

living with your landlord is a nightmare !

[@microlearning6537]

How do you bring in a lodger when this is not allowed unless in 'exceptional' circumstances? @matt brighton

[@MattBrighton]

Do you mean in regards to shared ownership? Some housing associations are unhappy with it, mine thankfully was fine. However they only allow lodgers when you live in the property. You can't let the property out fully on an AST contract.

[@carlb721]

Well done Matt. You're a sensible man with a brain but the rent you are still paying. The Lodgers rent is great idea. New builds are of poor quality though, they have a lot of faults. But well done.

[@divinastrain1286]

If someone wants to buy your flat, will they buy 40% or 100% of the property?

[@MattBrighton]

They could buy either. The housing association who own the 60% get first right to refusal when I want to sell, they have 10 weeks to find a buyer at a properly valued market value. Otherwise I can then sell privately either at any % or get an outright buyer for the whole 100%

[@MrChoycey2a]

Ratings to you 👏🏾 I think Croydon is the closest to central London I would buy and even there is crazy cash

[@MattBrighton]

Thanks! In hindsight, and having been in London a few years - I'd definitely prefer more space and greener areas now!

[@MrChoycey2a]

@@MattBrighton oh most definitely

[@nfornneka]

This is misleading. You bought a share of a 600k flat.

[@MattBrighton]

Yep - pretty much explained it in the first sentence

[@imsk6729]

​@MattBrighton your tile then needs to change. I guess this is a very old video. Just popped up.

[@MrMCsquare100]

0.1% interest rate... that is just insane.

[@MrMCsquare100]

@@MattBrighton that's a massive advantage in helping you to expand your property portfolio. Utilise it more bro😊

[@niblike]

Yess do you lose it if you leave them?

[@KILLIONist]

Is that monthly or annually?

[@MattBrighton]

0.1% per annum - unfortunately, can only use it only on residential property though that's mine so can't grow a portfolio with it. And the benefit in kind tax wipes out some of the benefit.

[@lookatcha]

Bitcoin hit a new record high in the past few days

[@MattBrighton]

It's still climbing!

[@summerrr1]

Buying a new build property is one of the biggest financial mistakes you can make.

[@MattBrighton]

Definitely! Unless it works REALLY really well in the area, most of them are at a premium!

[@SandrKozlov]

Hi, You make it look so easy giving people a false hope as you forget to say that your salary to buy this flat must be not less than £56450 a year to pass the 45% affordability check criteria. That means your monthly take home salary is not less than £3265!

[@MattBrighton]

Joint shared ownership, that would be 2x £27k salaries minimum.

[@SandrKozlov]

@@MattBrighton yes but you talking in a video as one person buying, so people can assume that one can easily get it

[@matildamedley3738]

Great video until it glossed over the help from parents with no reference to how much that was financially or any acknowledgement of that privilege - bit disappointing

[@MattBrighton]

About £10k inheritance passed down. Nothing crazy

[@matildamedley3738]

@@MattBrighton Useful context, lots of viewers probably need to factor extra £10K in - but appreciate you sharing!

[@TravellingFreak991]

Anyone who buys a flat for 600k has lost their fucking minds. That shit has probably depreciated already.

[@husnainshah443]

Beautiful flat man and that's the smart move to do financially! Not gonna lie I was laughing so much on fact that you legit just gambled your savings with bitcoin😂

[@BigBoss7777777]

If he held bitcoin his £30k would be worth £300k now. That's a good gamble.

[@evan]

“Help from parents” Yup cool good job

[@MattBrighton]

About £3000 when I was 16. The rest was graft & working multiple jobs to build up the deposit. So don't be too quick to judge, Evan.

[@chris94kennedy]

@@MattBrighton ignore him lol he probably has a trust fund on the sly ;)

[@miguelhip-hop2981]

Jrny crypto music on 🎵

[@PatrickEvans-x1v]

It will take you years to pay it off.

[@tobsstone]

That flat will be worth 450k in 2024

[@thehungrygoldfish]

Back when Covid happened, people were saying that you could get a rental in NYC for $350, so no I don't believe you, lol.