How I Bought a £600k New Build Flat in London at 25
Vložit
- čas přidán 2. 08. 2024
- SUBSCRIBE ► go.mattbrighton.co.uk/subscribe
In this video I explain how I bought a £600k / $800k shared ownership Flat in London at 25 years old. Buying your first property is a huge moment and it's becoming increasingly harder for young people to get on the property ladder. I worked hard from the age of 16, freelancing and doing design projects on the side. At university, I had 4 jobs and managed to scrape together a £40k deposit.
** Get Free Stocks & Shares Worth Up to £200! **
📈 Trading212 - go.mattbrighton.co.uk/trading212
📊 FreeTrade - go.mattbrighton.co.uk/freetrade
My London Flat Tour:
• My London Home Tour 20...
Timestamps:
00:00 Intro
00:34 High Level Figures
01:25 Why I Wanted To Buy
02:26 My Bitcoin Mistake
03:15 Where I Bought In London
04:15 Moving Into the Flat
04:44 Figures: Property Price, Deposit & Mortgage
05:45 Figures: Monthly Costs
07:21 Figures: Monthly Income
08:00 Figures: Equity In The Flat
08:56 Why I Won't Staircase
09:24 Conclusion & Subscribe
MY FREE ONLINE CLASSES:
👨💻 How to Freelance on Fiverr - Zero to Top Rated Seller
skl.sh/32qhXzb
🔎 SEO Masterclass - Rank Higher in Google
skl.sh/3j3gELP
MY GEAR
4K Camera - go.mattbrighton.co.uk/camera
Lens - go.mattbrighton.co.uk/lens
Shotgun Mic - go.mattbrighton.co.uk/mic
Audio Recorder - go.mattbrighton.co.uk/audiore...
Lighting - go.mattbrighton.co.uk/lighting
Tripod - go.mattbrighton.co.uk/tripod
Mic Boom Arm - go.mattbrighton.co.uk/micstand
Podcast Mic - go.mattbrighton.co.uk/podcastmic
Podcast Mic Stand - go.mattbrighton.co.uk/podcast...
USB Audio Interface - go.mattbrighton.co.uk/audioin...
Monitor Desk Arm - go.mattbrighton.co.uk/monitor...
Macbook Pro - go.mattbrighton.co.uk/macbookpro
Sony Headphones - go.mattbrighton.co.uk/headphones
1TB External SSD - go.mattbrighton.co.uk/ssd
Wireless Mouse - go.mattbrighton.co.uk/mouse
Wireless Keyboard - go.mattbrighton.co.uk/keyboard
MY TOOLS
📽️ CZcams SEO - www.tubebuddy.com/mattbrighton
🎵 Background Music - mattbrighton.co.uk/epidemicsound
💻 Webhost - wtfpropertyinvesting.com/wpxh...
🖌️ Website Builder - go.mattbrighton.co.uk/elementor
🎨 Graphics & Visuals - wtfpropertyinvesting.com/canva
📚 Free Audible Book - go.mattbrighton.co.uk/audible
📨 Email List Builder - go.mattbrighton.co.uk/convertkit
STAY CONNECTED
☕ Buy me a coffee - www.buymeacoffee.com/mattbrig...
💌 Sign up to my email newsletter - wtfpropertyinvesting.com
🌍 My website / blog - wtfpropertyinvesting.com
📸 Instagram - / wtfpropertyinvesting
🐦 Twitter - / wtf_property
📘 Facebook - / wtfpropertyinvesting
WHO AM I:
I'm Matt, a product owner and property investor working in London, UK. I make videos about tech, personal finance, productivity and business. In my spare time, I’m documenting what it takes to diversify my income and build a business.
🌍 My website / blog - wtfpropertyinvesting.com
GET IN TOUCH:
If you’d like to talk, I’d love to hear from you. DM @wtfpropertyinvesting on Instagram and I'll happily get back to you!
PS: Some of the links in this description are affiliate links that I get a small 'thankyou' from, to help fund this channel. It also means you can get awesome deals with my affiliate partners! 😁
This is delivering all the value Matt. You're an inspiration on the course!
This was so valuable thank you so much Matt! You're my weekly dose of property education, I love it!
Great video again, Matt. Genius idea renting rooms out! Wish I had done it when I was living by myself!
I bought my first flat in London at 26 and I made sure it was a share of freehold. I never considered shared ownership flats because I felt like they were not that great of a deal as you'd still be paying rent on the percentage you don't own, but after watching your video I must admit it can definitely be a smart idea especially if you taken in one or two lodgers!
ahh awesome - I guess it was an older building that was converted rather than purpose built flats?
Exactly my thinking I did the same thing. Unless your salary increases massively you'll never be able to staircase to 100% plus selling it can be a nightmare. I would never consider shared ownership or help to buy having read many horror stories. Appreciate it is there to help people but I think many people don't actually review the negatives. Pretty much like marriage, just rush in without thinking about it. If your clued up sure it can help some people
Share of freehold flat? how
@@odysseasv7138 You have to find one first. Not as common as leasehold obviously. Tends to be period conversions rather than new builds
@@MattBrighton Yes indeed. It does comes with its little issues but so does every home I reckon!
This is hands down the best video I have seen on shared ownership.
This is hands down the best comment on this video 😀
Hi Matt- thanks for the video! I was just wondering how your mortgage works - my (basic) understanding was that there are residential mortgages (where you live in a property) and separate mortgages when you’re buying to let. Which one do you fit under?
Fellow northerner taking on London by storm! I’m also buying this year (but I’m using the equity loan) after 3 years of renting in the Olympic park so I completely resonate with the sudden realisation of the money you’ll never get back! Good on you for making it happen!
@@MattBrighton when I started looking I was looking at both shared ownership and equity loan but I couldn’t find a shared ownership property in my desired areas and affordability that was able to be rented out as usually you can’t have a lodger, but I found my flat in Croydon on the equity loan scheme and it benefits from the 40% equity loan which is an ideal bonus!
Hi Matt, really good video. I watch a lot “property investors “, you best one!!!
Cheers
All the best
@@MattBrighton Hi Matt, I have question, but dont want to ask here. Can you please send test email to mva1703@gmail.com.
Its about investing to property's
Cheers
Great video mate!
Thank you for your video Matt, one question: when I researched the shared ownership plan it is said you cant not sublet your flat. How did you manage to rent your room out?
@@MattBrighton Thank you very much Matt this information is very helpful!!
I'm so impressed! Have come here from PTYA. Congratulations!!
(re-commenting)
Thanks! Glad you found this useful. London is definitely different to Sheffield property prices for a flat in the city haha.
Hello, re affordable housing, do you not have any restrictions re additional other property investment?
Hey Matt thank you very much for this video I really appreciated it I also like you have been renting in London for about three years whilst I finished law school and I’m now thinking about buying my own place. I definitely do not want to live in London for the rest of my life so Shared ownership might be a good shout at the moment so thank you! Subscribed.
Glad it was helpful! Shared Ownership is a great little stop gap to gain some equity in a property!
Hey Matt! Thanks for a great video. I've been browsing a few similar video but I've found yours most informative and genuine! I'm considering doing the exact same thing and want to ask you why would you avoid a new built if you do it again. Do you think purchasing resale of Shared Ownership has a better potential to increase the equity?
Also, you found any other associations letting lodgers, it would be great to know! Thanks:)
I've just had mine formally RICS valued and it's increased £35k in 3 years which isn't bad, although it's only 7.5% over 3 years which isn't the best - that being said it's more because flats in London aren't performing as strong as houses outside the M25 so not related to the shared ownership bit.
New builds can be great, but buying off-plan always comes with risks. We've been looking at housing developments recently and I keep finding things wrong (EG built next to a motorway, houses in dodgy locations on the master plan) so it's just doing the research, versus viewing an older house where you know EXACTLY what you're buying.
Purchasing Resale could also work, with shared ownership - everything is RICS valued whether it's new or resale meaning it's a fair market value, rather than going via an estate agent where the price is up for negotiation. So for me to sell my flat, I have to get a RICS valuation and the housing association take that as the sale price with no negotiation which has it's pros and cons. Where as an estate agent might add 10% to over-egg it then negotiation begins.
@@MattBrighton Hey thanks for a detailed reply. And congrats on your home getting a descent valuation! Can I expect a vlog about your selling process as well? That would be super useful for lots of people:)
Ohh I didn't know that resale also has go go through RISC. Great to know. Thanks! I guess in that case I should consider both new built and resale and do my numbers. Would you say closer to central would have a better market potential than new development areas in zone 2/3 London?
Thank you so much for sharing, i have been considering immigrating from Australia. And the lease hold situation is really confusing.
Cheers for the video it’s been very helpful, that’s good to hear you can rent out the other room someone told me before that you can’t rent out a room when you have shared ownership, which put me off the idea
It all depends on the housing association. It was the first question I asked mine - some do, some don't!
@@MattBrighton cheers for the reply Matt will be looking into it seen 3 bedroom apartments in Harrow with a 30% share costing £200,000 all in with rent, mortgage and service charges works out around £1700 a month, rent for a room in the area is between £600-£750 (in an old building) so looking like a good option indeed, originally was planning to buy a 1 bed in Watford for the same money, just shows how the CZcams algorithm can literally change your life plans 🤣
Shared deposit scares me because I’m not so familiar, thanks for sharing your experience this is helpful.
You're so welcome!
Those monthly payments are more than my income 😳 but having a lodger sounds like it's working 😁
Hi thanks for your content!! Are we able to have our residential property through Shared Ownership and invest in buy to let properties elsewhere? (As in wouldn't it be in breach of the contract?)
Yep - that's allowed, as long as the shared ownership place is your main residence where you live. That's what I'm doing at the moment
I am currently trying to find out whether this is possible with help to buy as well as I got my residential flat using this.
@@tchi9endaz Only works for new homes & I think first time buyers as a residential property to live in. May be wrong
Yes it's only for first time buyers you're correct. But I meant I have already bought my property using HTB and planning to invest in BTL but not sure Im allowed thats why I was curious about your case where you purchased using shared ownership.
Hey Matt! Great video, thanks! I wonder how you end up paying for the mortgage only at the end of the month? You claim service charge and rent against your lodger profit, but you should still be left with roughly £900 left to pay - is there something I’m missing? Basically, I’m trying to do same thing, but in my calculations I’m still left with some additional costs on top of the mortgage i.e. bills.
Finances have changed a bit since this video but it was essentially £2k costs roughly including bills, £1150 from spare room, then split the rest with my other half.
@@MattBrighton so did you buy with your other half as well?
Matt is it worth buying a leasehold flat on it's own or should you buy the freehold of the flat as well to be able to pass it on to generations ? based on the fact that some leases can last only between 80-100 years.
Depends if it's purpose built or not. If it's a purpose built block, obtaining the freehold might be hard, but if for example somebody converted a house into 2 flats, one downstairs, one upstairs there might be reason. Depends on what value or benefit the freehold brings for you.
@@MattBrighton Thanks for the advice Matt. I will definitely aim for freehold. With freehold the value will continue to rise and there is a lot less to worry about. I think the best way forward would be owning most of the flats in the building and than applying for the lease to covert to freehold :) btw your videos are great.
Great video. How do you purchase more shares? And how much does it cost to buy up to 100% of the shares?
@@MattBrighton thanks for the quick reply mate. Very helpful for someone like me who's just moved to the UK. Keep up the good work.
Thanks appreciate it! :D
How did you find a housing association which lets you rent a room?? Who are you with? I thought it was next to impossible. I’m considering doing this with help to buy equity loan but I don’t think mortgage lenders allow it :(
Few and far between! It's the first question I asked when meeting them on viewings
Really nice breakdown - How have you found being a live-in landlord?
living with your landlord is a nightmare !
Well done Matt. You're a sensible man with a brain but the rent you are still paying. The Lodgers rent is great idea. New builds are of poor quality though, they have a lot of faults. But well done.
How much do you pay of property taxes per year?
UK council tax isn’t too bad as it’s only a 2 bedroom apartment so about £120 a month
if you have no income how can you start saving for 100k maybe in my dreams but an help would be appreciated, for deposit for mortgage
I have 10 so I need 30 more.
However, my credit score is very low as I did not use any credit card. Now i am using them and paying in full but it is not increasing that much. I am stuying accouting and I am 24. Any tips for my self
If you run a free credit check on experian, credit karma etc or the others it might give you tips on what you need to do to improve your credit
You did not want to pay for rent, so you bought an apartment but you end up to pay rent still every month. Would it be not better to pay those 700 into your mortgage rather then rent for ownership to others ?
I agree , it seems to not be making sense to me . Also you still have a flatmate that occupies your house . Not much of a good deal to me 😅
Beautiful flat man and that's the smart move to do financially! Not gonna lie I was laughing so much on fact that you legit just gambled your savings with bitcoin😂
If he held bitcoin his £30k would be worth £300k now. That's a good gamble.
did you have cladding issues?
Thankfully not!
Ratings to you 👏🏾 I think Croydon is the closest to central London I would buy and even there is crazy cash
Thanks! In hindsight, and having been in London a few years - I'd definitely prefer more space and greener areas now!
@@MattBrighton oh most definitely
Four jobs at uni?!? What did you do? I'm at uni I don't even have time for one
@@MattBrighton impressive!
In my own opinion this isn’t a great investment, short term yeh make a bit on the side with flatmates but long term you are still locked in by the government scheme not to mention your service charge is probably increasing at a crazy rate. I would avoid lease holds like this like the plague buy a old freehold place and do it up yourself
Agree! Definitely not the best but managing to keep it 'ok'. But would much rather get an old house and do it up next on a freehold!
I bought a 1 bedroom that I 100% own, which for me is more viable than a 2 bedroom with shared ownership. Also I wouldn’t want to share my home with a stranger , as I am a woman and it’s not really if my culture.
If someone wants to buy your flat, will they buy 40% or 100% of the property?
They could buy either. The housing association who own the 60% get first right to refusal when I want to sell, they have 10 weeks to find a buyer at a properly valued market value. Otherwise I can then sell privately either at any % or get an outright buyer for the whole 100%
Bitcoin hit a new record high in the past few days
It's still climbing!
Are you not paying a ridiculous amount in benefit in kind tax, you should definitely look at staircasing especially as your property is increasing in value.
Yep, BIK is about £100 a month so not too crazy but balances out the benefits of the mortgage rate
@@MattBrighton especially as rates are so low right now.
This is misleading. You bought a share of a 600k flat.
Yep - pretty much explained it in the first sentence
Hi, You make it look so easy giving people a false hope as you forget to say that your salary to buy this flat must be not less than £56450 a year to pass the 45% affordability check criteria. That means your monthly take home salary is not less than £3265!
Joint shared ownership, that would be 2x £27k salaries minimum.
@@MattBrighton yes but you talking in a video as one person buying, so people can assume that one can easily get it
0.1% interest rate... that is just insane.
@@MattBrighton that's a massive advantage in helping you to expand your property portfolio. Utilise it more bro😊
Yess do you lose it if you leave them?
Is that monthly or annually?
0.1% per annum - unfortunately, can only use it only on residential property though that's mine so can't grow a portfolio with it. And the benefit in kind tax wipes out some of the benefit.
Jrny crypto music on 🎵
Buying a new build property is one of the biggest financial mistakes you can make.
Definitely! Unless it works REALLY really well in the area, most of them are at a premium!
Great video until it glossed over the help from parents with no reference to how much that was financially or any acknowledgement of that privilege - bit disappointing
About £10k inheritance passed down. Nothing crazy
@@MattBrighton Useful context, lots of viewers probably need to factor extra £10K in - but appreciate you sharing!
“Help from parents”
Yup cool good job
About £3000 when I was 16. The rest was graft & working multiple jobs to build up the deposit. So don't be too quick to judge, Evan.
@@MattBrighton ignore him lol he probably has a trust fund on the sly ;)
It will take you years to pay it off.
Anyone who buys a flat for 600k has lost their fucking minds. That shit has probably depreciated already.
How do you bring in a lodger when this is not allowed unless in 'exceptional' circumstances? @matt brighton
Do you mean in regards to shared ownership? Some housing associations are unhappy with it, mine thankfully was fine. However they only allow lodgers when you live in the property. You can't let the property out fully on an AST contract.
That flat will be worth 450k in 2024
Back when Covid happened, people were saying that you could get a rental in NYC for $350, so no I don't believe you, lol.