4 Reasons I Bought A Buy To Let Property!

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Күн бұрын

Пікірлер: 54

@MitchShoesmith 10 ай бұрын

Happy Monday guys! 3 months into being a landlord has flown by so I thought i'd share an update. As you may have noticed by the change in background, i'm also moving house currently and using a temporary setup until I move into my new place, so bare with me as it's not the most visually appealing setup! Also, for any new, existing or aspiring landlords here is a great tool called Lendlord that I use that helps me manage my property and assess other investment opportunities too: lendlord.io/sign-up-page-uk-mitch-investing

@user-op8fg3ny3j 10 ай бұрын

Hey mitch, what do you think about the government's proposed new law on landlords?

@MitchShoesmith 10 ай бұрын

@@user-op8fg3ny3j hey, are you referring to the the renters reform bill?

@user-op8fg3ny3j 10 ай бұрын

yeah! @@MitchShoesmith

@hersdera 10 ай бұрын

To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.

@Derawhitney 6 ай бұрын

Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.

@bernadofelix 6 ай бұрын

I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.

@SandraDave. 6 ай бұрын

Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.

@bernadofelix 6 ай бұрын

Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Margaret Johnson Arndt for the last five years or so, and her returns have been pretty much amazing.

@King_Harrold 10 ай бұрын

Good fortune with your investment Mitch. At 37 I've got 4 mates who had buy-to-lets. 2 or 3 beds in the Midlands. They are all selling up and getting out of the game. The way you pay income tax on revenue not profit, issues with tenants and their ever increasing rights, capital gains tax allowance decrease, rising letting agent fees, repair costs increasing, increased mortgage costs etc etc. Many felt the stress and work not worth it. But again, good fortune to you. I hope it proves lucrative. Plus smart move on the Ltd company. I advised my friends to do this, but they didnt want the complexity of returns etc.

@MitchShoesmith 10 ай бұрын

Thanks mate! Yeah I think that’s where having the Ltd co model works best, and can still work, whereas the personal name model perhaps doesn’t work as well nowadays because of the tax changes etc… I think the way I’ve got mine structured with one business funding the buy to let business is fairly sound as things stand 🤞🏼

@King_Harrold 10 ай бұрын

@@MitchShoesmith certainly. It's not the passive buy, forget and benefit model it was for the last 15 years. You've got to run it as a business and play the game. I'm hoping to buy a commercial property in my SiPP .but you need greater equity as you can only mortgage 50% of the pension fund value.

@joshuacurryPI 10 ай бұрын

Nothing better than buying property, we are stilling buying now and will continue to do so!!

@DestinysJesus 10 ай бұрын

Good video, I think UK rates and market is way too unstable right now but using your KZbin money thats sitting around doing nothing offsets the risk a good bit at least.

@MitchShoesmith 10 ай бұрын

Yeah for sure, and a side of me is also considering de-leveraging after my 2 year fix is up anyway to offset any issues with interest rates, but that’s something to consider for midway through 2025!

@scittyboom1989 10 ай бұрын

@@MitchShoesmithinstead of deleveraging you can leverage against the rise in value of the property I’ve done this to build a small portfolio over the years 6 BTL and 1 holiday let. Debt is good if used properly good luck,on your adventure pal 👍

@MitchShoesmith 10 ай бұрын

@@scittyboom1989 hadn’t though about that, thanks for the info! Amazing you’ve got all those BTL’s, congrats!!

@ploppy193 10 ай бұрын

I'd love to become a property investor, don't think you can go too far wrong as long as you do your sums. Great video.

@MitchShoesmith 10 ай бұрын

Yeah agreed! & the longer you hold onto it, the better those sums become 👌🏼

@jacobpreston7171 10 ай бұрын

Mitch you have done it again, another quality video. The transparency is great really helps people to understand the ins and outs. You should feel proud of what you’ve accomplished, your doing great congrats man!!❤

@MitchShoesmith 10 ай бұрын

Really appreciate it Jacob, thanks mate!

@MikeReeves-d5j 7 ай бұрын

Hi Mitch great channel and best of luck with your 1st BTL. You make an interesting point on pensions. These shouldn’t be overlooked and very tax efficient tool for building wealth. Had you put your £36k in a SIP invested in an S&P ETF for example with an average annual return of 9% you’d have a £530k after 30 years. You should consider both options 😉

@MitchShoesmith 7 ай бұрын

Hey! Yeah for sure you make a great point, the SIPP is something I’ve discussed with my accountant, I’ll definitely be considering doing both. The aim is to get another couple of properties and then I’ll likely go back to my bread and butter of long term investing in the stock market instead, depending on how things play out of course!

@BullmanRugby 10 ай бұрын

Genuine question- Do you still live in your parents house or have you another property too?

@MitchShoesmith 10 ай бұрын

I have my own property for my personal residence, just sold & in the process of moving into my second house.

@djkazc1818 10 ай бұрын

Congratulations Mitch and good luck, some achievement. I would love to get into the property game at some point. Got to finish off ACCA studies alongside work, and renovate my own home first though!

@MitchShoesmith 10 ай бұрын

Thanks!! Fair play, ACCA exams are tough going, wish you all the best with your studies mate!

@Kalarandir 8 ай бұрын

It all sounds good, but the maths based on what you show doesn't add up to over 8%. Additionally, there is no mention of any mortgage or maintenance fees. It would be good to see the actual income after all initial and ongoing expenses are taken into account.

@slabbygabby 9 ай бұрын

Being a landlord myself and getting Stable rent...no thank you. In order to make it tax efficient I end up dumping all the income in a pension fund anyway.

@Andy72668 10 ай бұрын

Good video and well done Mitch

@MitchShoesmith 10 ай бұрын

Thanks Andy!

@matthewhunty 7 ай бұрын

So are you actually making a profit on the rent now as I don’t believe your spreadsheet figures in your earlier video are correct?

@jr3.1415 6 ай бұрын

You don’t mention costs associated with buy to let. That yield will all but disappear by the time those are taken into account. This is very misleading.

@Justaleedsthing 10 ай бұрын

Good evening mate hope All is well, I was wondering if you could do a video on how to set up vanguard, because I’m wanting to open up another side Isa account but I don’t really understand it

@MitchShoesmith 10 ай бұрын

Hiya, when you say side ISA, you can only invest in one stocks and shares ISA per tax year…

@aaronbbb5675 10 ай бұрын

Great, thanks for being part of the problem 👍🏻 sincerely hope you get all the issues that come with being a landlord too

@MitchShoesmith 10 ай бұрын

Great mentality, wish you all the best 👍🏼

@aaronbbb5675 10 ай бұрын

@@MitchShoesmith I wish you the worst, with your incredibly selfish mentality. But if you can live with yourself knowing you’re indirect harming people, more power to you I suppose 👍🏻

@user-nw3eh3jj7j 10 ай бұрын

Good video Mitch! What type of mortgage do you have on your new property? Repayment or interest only?

@MitchShoesmith 10 ай бұрын

Thanks! It’s interest only currently, ideally would like it on capital repayment when I come to remortgage though

@user-nw3eh3jj7j 10 ай бұрын

Yea, get your strategy! It’ll hit your profit when you do switch. But at least you’ll start reducing the capital debt and hopefully the interest rates may have fallen

@MitchShoesmith 10 ай бұрын

@@user-nw3eh3jj7j yeh hopefully rates fall, and if I can pay a lump sum off the debt hopefully I can work the numbers so the monthly cash flow can stay about the same👌🏼

@jacobpreston7171 10 ай бұрын

I have a question for you Mitch, do you rent or live in your own property?

@MitchShoesmith 10 ай бұрын

I live in my personal residence

@user-op8fg3ny3j 10 ай бұрын

What do you think about the news that the UK is heading into a recession now?

@MitchShoesmith 10 ай бұрын

Media publications have been calling a recession for the best part of the past 12-18 months, makes no odds to me personally, it’s just another economic cycle that we’ll all get through

@ShaneJackson 10 ай бұрын

Could I ask what your service charge is? It’s the one thing that puts me off flats

@JoeK7 10 ай бұрын

Hey Mitch, I have been curious about starting my own side business whilst working full time and have been worried about the tax side of things. So if you register a ltd company and keep the money earned in that account, does that mean you do not get slapped with a big tax bill?! It is all new to me and not sure where to properly read up on it

@MitchShoesmith 10 ай бұрын

Hey Joe. Yeah essentially because I keep all the money in the business account I only pay corporation tax. If I were to start paying myself as an income from the business, I’d then get hit with a tax bill for income tax. Tax rates are slightly lower on dividends, and you do have a tax free dividend allowance but I think it’s only about £500 a year now. You can find some good info on the gov.uk website.