What I Would Do With £1000 | How to get started in Property Investing UK

in this video i'm going to share exactly step by step what i would do if i wanted to get on the property ladder but the problem is i only have 1 000 pounds if you've got one grand and if you haven't got a thousand pounds guess what go get it right go and whack it on a credit card or just find it because a thousand pounds is not a huge amount of money because in this video i'm gonna show you how with a thousand pounds you can get on the property ladder in 2022 in the uk that's a huge big deal by the way because house prices now the average house price is about 300 000 pounds you need 25 percent as a deposit to buy a house so that's it's like what 75 grand plus stamp duty plus um solicitor fees all those costs you're talking about a hundred thousand pounds and to save a hundred thousand pounds if i did a video called what to do for a hundred thousand pounds it wouldn't be that applicable to most people but i'm sure you can get a thousand pounds so okay if i've got a thousand pounds is what we're doing i'm gonna find a house doesn't matter where it is because if it's a house right if it's if it's a house in the uk it's gonna be worth something maybe even if it's 50 grand 100 grand it's worth something i'm going to find a house i'm not going to be picky about the area i'm not going to be picky about it it has to be really close to my home because i've got a thousand pounds beggars can't be choosers i just want to get on the property ladder so i'm going to look around for properties that are for sale and i'm going to find houses for sale that have been on the market for months and months and months and can't sell i'm then going to speak to the sellers direct and i'm going to speak to them direct by booking viewings through companies like purplebricks where you deal with the owner direct or i'm gonna find the title deeds online on the land registry and pay three pounds that's gonna leave me now with 9997 pounds because i just bought the title dudes and i'm going to speak to sellers and i'm going to offer them something called a purchase option agreement now purchase option agreement can be done for a thousand pounds here's how it works you buy a house now but you agree to pay for it when later can you really do that with properties yes you can this is the thing they won't tell you this they'll tell you when i say that i'm talking about the media the government the school systems they'll tell you buy a sofa from dfs or whatever it's called and pay for it later they'll tell you buy a holiday and pay for it later they'll tell you get married and pay for it later they'll tell you go to university be part of us be part of the system and and pay for your uni later but what they don't tell you is you can actually do that with residential property in the uk right now you can buy properties in the uk on a purchase lease option and you can pay for them later that that's huge news okay why do you need a thousand pounds then because you're gonna need some money right because it's gonna cost you about 750 pounds minimum just for the solicitor fee so you need some money to actually get that agreement so who on earth would let you buy the house and pay for it later well let's find some people right now let me show you how i do this i'm going to go to um a very famous website called rightmove rightmove.cod.uk and i'm looking kind of i'm thinking up north like some areas where houses are a bit cheaper okay so i'm going to type in somewhere like maybe like newcastle or i could do stoke on trent maybe even birmingham um liverpool and let's see we'll do within 20 miles because you know why because it doesn't matter where it is 50 grand will go up to 150 grand let's see how many houses are selling at this price range we'll include under offer at the minute so over 4 000 a lot of houses that are selling from between 50 to 150. let me see if i can just change this and get rid of the ones that are under offer and that drop significantly let's see what it goes to okay still over 1 000 to go out so all these houses that are for sale now the problem is is if you go after some of these houses like let's say this one if i ring up these guys and i'm trying to negotiate with the owner for sale board outside i ain't going to be able to get a good deal on that they won't let me you know how i know because it was added today so if it was added today ben charles the gatekeeper are going to be like oh no put forward your best and final offer we've got 20 people that are interested so you ain't going to be able to negotiate and be flexible with the seller however if you look from not lowest price but oldest listed if you go to all this listed so this is priced to sell okay price to sell um interesting it's in durham how long has it been on okay it's actually not been on that long since june but what i'm interested in is i'm going to click here i can see market information i can see property sale history so they bought it for forty six thousand in two 2007 and now they're marketing it at 55 grand that's crazy you know what that means that means that from 2007 to 2022 the market's hardly even gone up you know what that means that means in the next five ten years the market's going to boom like crazy so i'm kind of interested but it's not been on long enough i want to find something that's been on a long time so that why so that i can then negotiate better so this one this one's in durham i've got houses in durham see i don't mind where it is as long as it gives me money oh see how quickly i can find these opportunities this house was bought in 2006. what was happening in 2006 lenders were giving out 100 mortgages now they don't do that now they make you put down 25 back in 2006 it was different that's why we had a recession because the banks were giving out so much money the banks run out of money the banks stopped lending because the banks stopped lending people couldn't afford to buy houses house prices crashed so this house and this whole area of durham by the way crashed so bad it's still not even recovered but what happens after a really bad crash a really big boom so this house it was sold in 2006 and the buyer bought it for 82 000 pounds they probably have a mortgage of about 82 000 pounds now it's on the market for 79 950 trying to make it sound cheap it's 80 grand right so it's on the market for 80 grand i've only got a thousand pounds i can't buy this house because if i'm buying this house i'm only a 20 000 pound deposit and then i'm gonna leave my legal fees and i'm gonna have to pay stamp duties so i haven't got i ain't got 20 grand i got 1 000 so what am i going to do what i'm going to do is i'm going to approach the owner and the owner has been trying to sell this ill house since 2018. june 2018. they've been trying to sell this house for four years why can't they sell the house the reason they can't sell the house is because it's not worth 80 grand it's probably only worth 70 grand clearly but no one's going to um no one's going to give out 80 grand no one is giving them 80 grand but they're not going to accept 70 grand why not because they've got a big mortgage of 82. they're in what we call negative equity they want to sell the house they're fed up with the house they want to move on but they can't because they've got a big fat mortgage and the mortgage is probably the same or even bigger than the house so what am i going to do well i'm going to i'm going to approach the owner and i'm going to say to the owner hey i like your house i want it i can see it's on the market for 79 950. i know you bought it for 82. it's not sold it's been four years how about this how about i'll buy it now i'll take on your mortgage you can move on with your life i'll pay the mortgage payments i'll become the landlord releasing you from the property and i'll pay you 82 grand which is 2 000 pounds more than you're asking for it which is way more than anyone's offered you but we need to give the market chance to recover so i'll give you the money in five years time that's called a purchase lease option agreement now you now take on the property you can rent this property out the mortgage payments on a property with an eighty thousand pound mortgage are probably going to be about 150 pounds a month but the rent what's the rent on a house like this i'd have to do a bit more research it's got to be at least 500 pounds so you're now making 400 pounds maybe 350 after everything 350 pounds a month profit straight away you've also got the option to buy the property in five years time so what are you going to do well your 1 000 pounds is going to get you the uh he's going to get you the property bank you've now got you've now got access to it you've now got control of it you've now got the option to buy it anytime you want but you're making 350 pounds a month for five years you're going to use okay you're going to use that 350 pounds a month times that by 60 because the 60 months in five years that's 21 grand so after five years you've got 21 grand what are you gonna do with that 21 grand you're going to use that 21 grand to put down as the deposit to pay for the house but here's the extra good news in five years time that house won't be worth 80 grand in five years time that house will be worth 120 grand minimum so when you put down your 20 grand that you've saved through the rent of the house you then immediately refinance the house and pull the 21 grand back so what did your 1 000 band do you're 1 000 pounds helped you buy this property completely for free get on the ladder just because instead of thinking i've only got one grand how do i get my money you became creative and started thinking how you can solve people's problems using purchase lease option agreement i hope you guys enjoyed the video um if you did go ahead smash the like drop a comment below and i'll see you next time [Music] you

Channel: Samuel Leeds

Views: 407,352

Keywords: property investing, uk property investing, how to invest in property, property training, property education, property entrepreneur, property investing tips, property investing news, real estate, real estate investing, millionaire, property millionaire, rent to rent, passive income, serviced accommodation, lease option agreements, buy refurbish refinance rent, brrr property, hmo property, below market value property, how to be a property investor

Id: eWO__Q0wlds

Length: 10min 30sec (630 seconds)

Published: Sun Jun 26 2022