The Progressive Property Podcast Should I Buy up North? Property Tax Explained | Property Investing Open Q&A
Are you looking for some more information on the property industry and how you can become a successful property investor? Join property investment expert Kevin as he answers all your property dilemmas. Discover the importance of protecting your money, why your most valuable asset is your knowledge and the benefits of having a private investor.
KEY TAKEAWAYS
- If you are in an area outside of ‘Article 4’ then a property with 5 or more people requires you to have an HMO licence but if it is a house with 4 people, then it is classed as an unlicensed HMO. However, whilst it might not be required to be registered, you have got a duty of care to your tenants. You need to make sure that you keep your tenants safe by ensuring that the property has all the correct safety regulations.
- It is so important when lending money that you are careful around making sure you have security around protecting your money. If you are borrowing money, it is easier to borrow all the money you need rather than a little bit of what you need.
- Do not pedestalize your money, pedestalize your knowledge. Wealthy people spend their money trying to save time whilst poor people pedestalize the money. The most valuable asset you have is your knowledge and your time.
- Many private investors will lend you 100% of the value of the property. They lend this money as a ‘first charge’ for security. This means that you have to pay back the investor otherwise they are able to take possession of the house, in the same way that a mortgage company can take away the house if you fail to pay the mortgage.
- A private investor will loan you the full amount for the property and you will then refurbish the property and refinance the property under a traditional buy to let mortgage. You will then pay the investor back along with their interest and you can continue with the buy to let.
- If you purchase a property in your own name, you will have to wait 6 months before you can refinance the property even if you are a cash buyer. If you buy a property within a LTD company you do not need to wait 6 months to refinance the property so long as you buy in cash. There are a lot of lenders out there that will lend to companies with SPV’s.
BEST MOMENTS
“It is dangerous to listen to people who do not know what they’re doing.”
“ This is why it is so important to get educated.”
“They want to make sure that they get that deal done.”
“Wealthy people spend their money trying to save time.”
“Property investors are not with high street banks.”
VALUABLE RESOURCES
https://www.progressiveproperty.co.uk
https://kevinmcdonnell.co.uk
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
CONTACT METHOD
https://www.facebook.com/kevinMcDonnellProperty/
https://kevinmcdonnell.co.uk/