Understanding the investors magic formula | Property Hub University

[@rikardsaje]

Great video Rob, explained very well. I bought my first property in September 2007 (close to the worst time to buy) and was in negative equity with a 5% interest rate. The rent just covered the interest payment, it didn't gain much growth for years. I managed to keep it ticking over but wasn't making a penny so it was really demoralizing. So glad I hung on to it though as the flat has £100k equity in it which I'm going to use in other BTL'S and the rent is nearly double with the mortgage interest payment half of what it was. The flat is in central Bristol which has had good growth over the last few years. This just reaffirms what this video is saying. Thanks for a great video.

[@PropertyHubUK]

Thanks for sharing Rich. This is exactly just one of the reasons we always say property is for the long-term!

[@imaresurcher]

did the rents stay as high after the crash as they were before the crash in 2008?

[@bapatchaitanya]

Really insightful video about how property investment can be looked it & compared with equity.. instead of just superficial comparison with ROI without considering leverage/discount. Question - an issue with property is that there are hidden costs associated with it for operating - annual property tax, annual maintenance expenses etc. How do we account for that in comparisons here?

[@otissstaples7320]

Thank you, I really appreciate this detailed, eye-opener. I will share! ❤️

[@PropertyHubUK]

You are so welcome!

[@imaresurcher]

is refinancing towards the peak not v risky as you'd be loading yourself with a huge amount of debt? then what happens when it crashes and your property is worth 50% less and the lender recalls their loan? are we basically assuming the lender will never recall the loan, hoping that rents continue to cover the mortgage throughout the crash?

[@muhammadraza8818]

loved this video but the bakcground music is very distracting, for future videos can you reduce how loud the background music is :)

[@adrenalineisbrown]

Can u please reduce the background music. It's very distracting, it's like your on a call with your local GP. I want to listen to you, not the music.

[@Andromedaxterr]

well, it is free so be happy with that !!

[@robertward8832]

I have to agree. Otherwise great video