Today’s thoughtful Thursday episode features 23-year-old mortgage advisor Joe Lane. He joins Samuel to discuss everything from mortgage and the current property climate. Joe is based in Newport wales and is also an Investor of property and has a burgeoning portfolio that he is continuing to grow.
Joe’s work within property mortgages has seen him become a highly requested amongst other property investors. He helps people find the best mortgage solution for their investments. When buying properties Joe believes its best to use a mortgage rather your own cash.
He and Samuel both agree when looking back how they first entered property that they would have used a little of their money as possible. A great reason for both Samuel and Joe is that it gives you the ability down the line to refinance the house this will enable you to pull out up to 90% of equity then reinvest it in other investments.
“Are you able to gain a mortgage without owning a property first?” Yes! This is a question that Samuel regularly hears but Joe clears up all the myths and theories within property. He also explains that you are able to purchase an HMO also without owning a property.
In order to take full advantage of mortgages its best to use specialist lenders instead of your common high street lenders. They will be able to get you better interest’s rates and find you finance more suited to the type of strategy you are investing in.
A big question that is always is always floating around is how can young people invest in property due to the age limit on mortgages. The answer to Joe suggests buying within a company. Opening a limited company and placing parents as the directors with shares being assigned to the investor. They will be then able to complete any transaction on properties of interest.
Joe speaks highly of purchasing in companies it’s a great process. Not only does it come with great tax benefits but also comes with better interest rates from lenders. A key mistake that people encounter when buying in a company. They feel more likely to get approved for a mortgage if the company they are using has a prior history of buying properties. As Joe points out this is not the case it can actually be a detriment and could result in not being approved. The best way to utilize this method is to start with a brand new company with zero history.
For all investors looking to get started and seeking any type of lending the best advice Joe can give is to find a property first. Many people start seeking lenders and mortgage advisors without actually even having a property in mind. This can slow the process down take up a lot of unneeded time it’s better to get in contact with an advisor after you’ve already located your property.
Joe’s future continues to become even brighter as he is in the midst of completing a massive property deal for himself. This will see him take on 35 apartment’s grade 2 listed and ten houses located around.