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00:00:00 – 00:09:07
Samuel Leeds discusses a strategy to help first-time buyers enter the property market with minimal initial investment, focusing on a "residential to buy-to-let" approach. This method involves purchasing a residential property to live in and later converting it to a rental property, allowing buyers to take advantage of 95% loan-to-value mortgages offered by lenders such as Lloyd’s Bank, Santander, NatWest, Virgin Money, and HSBC. Samuel outlines a path to reduce upfront costs, avoid stamp duty, and increase property value through minor refurbishments, potentially funded by personal loans. He provides real-life examples of successful executions, including a case where refurbishments significantly increased property value, leading to notable profits through various refinancing options like a furnished holiday let mortgage. The speaker emphasizes the importance of creativity in property investment and invites viewers to a property investment course to learn more strategies. He concludes by encouraging viewers to engage with the channel for ongoing insights.
00:00:00
In this part of the video, Samuel Leeds introduces a strategy for getting onto the property ladder with as little as £5,000. He explains that the biggest barrier to property investment is often the required 25% deposit and associated costs like stamp duty and legal fees, which can amount to £60,000-£70,000. The strategy Leeds discusses is called “residential to buy to let,” where a first-time buyer purchases a residential property to live in but later converts it to a rental property. This method allows buyers to avoid stamp duty and take advantage of up to 95% loan-to-value mortgages, significantly reducing the initial financial burden.
00:03:00
In this segment, the speaker discusses various lenders offering 95% mortgages to first-time buyers, such as Lloyd’s Bank, Santander, NatWest, Virgin Money, and HSBC. They emphasize the importance of selecting the right property and mention that eligibility for a 95% mortgage depends on one’s income. The speaker provides a link to Money Saving Expert for users to estimate their borrowing potential.
They suggest buying a property that needs minor updates, such as a new kitchen or bathroom, and mention the possibility of using a personal loan for refurbishments. The strategy involves purchasing a property at a low price, improving it over two years, and then obtaining a new valuation. If the property’s value increases, a buy-to-let mortgage can be obtained, allowing for repayment of the initial mortgage and recovering the deposit. The segment ends with an example of a friend who successfully executed this strategy.
00:06:00
In this part of the video, the speaker discusses a property investment case where an individual spends £30,000 refurbishing a house over 12 weeks. The property’s value increased to £250,000, generating a profit of £42,000. The individual originally invested £47,000 of their own money and considered three options: selling for a tax-free profit, refinancing with a buy-to-let mortgage, or using a furnished holiday let mortgage. The latter option was chosen, which allowed the investor to retrieve most of their invested funds and make a substantial monthly profit of around £1,000. The speaker emphasizes the importance of creativity in property investment and invites viewers to a property investors crash course to explore various strategies.
00:09:00
In this part of the video, the speaker encourages viewers to like the video and subscribe to the channel for more similar content. They express their anticipation of future interactions, offer a blessing, and sign off with thanks.