I’m now a Property Investor?! – Savings Report #11

This is a Saving Ninja savings report. Go to How To Track Your Savings to check out the Saving Ninja Super Spreadsheet. Please note that I split my expenses equally with my partner and the savings rate, house equity and house value represent my share only. The spreadsheet calculates my savings rate based off £12,000 worth of expenses per year, even though my expenses are actually Less Than 10k Per Year. This is to create a buffer; I’m aiming for at least 12k to reach financial independence.


Oooo, look at that nice big 90!

Investments took a bit of a nose dive this month and lost £1,579 in value, although that was expected with the huge £2,816 gain from last month.

BUT, we still saw my net worth grow by £3,337.

This increase came from one extra special new investment to my portfolio: a buy to let property!

Spurred on by Nick and his latest property purchase. I thought it was about time I added something into that forever blank ‘Other Investments’ section.

For my BTL purchase, I used a very cool new platform called Property Partner. They let you invest as little as £100 into a huge variety of properties that they manage and I’ve heard nothing but good things from the friends who use them.

So, I decided to stick £1k in first to test out the platform. Say hello to property #1:

The property consists of 9 flats in the up and coming area of Cheshire (near where I grew up) and I now own 2000 shares in it, woo woo!

Click here to view the listing.

The expected dividend yield is a pretty good 4.21% but all of these dividends will be automatically reinvested back into the property (at a discount) and I’ll be hoping for a decent capital gains pay off. As it’s risen 26.5% in the last 5 years, and some properties in the UK have risen by over 50%, it’s an investment risk that I’m willing to take.

I know what you’re going to tell me: The property market can’t go up forever! I understand your concerns, BUT, I’m only investing £1k for now, and I’m thinking that even if there was a small property crash, the dividend income alone may even outperform the stock market. You’ve got to have a little fun, right?

I actually paid a premium of 7.8% to purchase this property due to the current popularity, who wouldn’t want it – it’s pretty flipping cool – which is why my ‘Other Investments’ section only stands at £911 after £1000 invested. Let’s see how long it takes for me to break even!

If you want to purchase a share in the same property and become my fellow investor, check it out here and let me know in the comments below!

Other Thoughts

May has been a month full of walking and wedding planning. The wedding is under 2 months away now and I’m getting pretty damn nervous.

Thankfully the planning seems to all be falling into place, although it’s still probably going to be a mad rush in the weeks leading up to it (no matter how organised I think I am!)

That reminds me, there is probably going to be a period of no posts for about a month in August due to the wedding and honeymoon. I was hoping to get some written and scheduled to bide you guys over, but I seem to be running out of time. We’ll see, still some time left yet 🙂

Matched Betting

Even though I said last month that I was going to ‘taper-down’ the EW betting. I actually… kinda didn’t.

I made an additional £3,041 this month from matched betting (mostly EW). I guess I’m addicted to the tax-free money!

Saying that, most of the month was pretty rubbish. The bulk of my profit came from an insane profit winning day on the 3rd of May.

I will be lowering my stakes to £20 EW (from £40 EW) for the time being and trying out a new risk-free method called ‘arbing’ this month. Let’s see how it goes!

How was your month?

OddsMonkey

28 thoughts on “I’m now a Property Investor?! – Savings Report #11

  1. Those EW betting returns are awesome. The variance can be a killer though. What has been your worst month?
    I’ve just started EW betting but did a fair bit of matched betting and arbing previously. If you bet on both sides it’s guaranteed but you have to be careful of movement in odds and take commission into account. Good luck.

    1. All of the exchanges currently have an 0% commission deal 🙂

      I’ve been lucky enough to never have a negative profit month (so far). I have had bad months, but even those saw profits of around £200. I have, however, lost £1300 in a single day on a new B365 account (who proceeded to gub me the day after!)

  2. Why not just invest in REITs or even housebuilders?
    Much simpler, much more liquid, lower fees/costs, greater diversification, ISA/SIPP friendly and better regulated?
    Peer2Peer investing might sound fun but there are very real potential pitfalls and how do you know that you have not just invested in the Warrington equivalent of parking spaces at Gatwick airport?
    https://aspenwoolf.co.uk/gatwick-airport-parking-scam-notice/
    Time will tell. 🙂

    1. I was kind of thinking the same thing, but I didnt want to be a downer 😛

      In all fairness, Property Partner is not a P2P platform – it’s more like crowdfunding, where you actually own a share of the actual building, so I belive it’s a fairly solid investment. However, I think I would have also gone with some REITs first, considering (as you say) that they are ISA/SIPP friendly…

    2. Don’t put me off GFF! 😀

      As I’m only investing a small amount, I wanted it to be a bit more exciting than a set and forget fund. I’m treating it as ‘fun money.’

      Most of my investments will still be going into low-cost passive funds.

      Cheers for the warning though! If I ever want to move into REITs, I’ll come and find you 😉

  3. Welcome onboard the property Train! 😛

    I’m glad you’ve finally decided to diversify a bit! You planning on adding Property #2 anytime soon? 😉

    I sure wish I had your matched betting options in DK! With that kind of take-home (tax-free) money, I’d be on that like shit on velcro!
    I did look into arb-betting at one point, but it seemed the margins were very small, so I never really got around to making any money off of it – but I’m sure you’ll get something out of it, with your track record in MB 😉

    Getting closer to that £100K mark! I bet you’re excited. I think the best part will be to compare the time it takes you to get to those £200K with the time it took you to get to £100K 😉

    1. What are the betting laws over there? Is it tax-free? You should revisit arbing, I’m just moving into this now and there are some unknown methods of locking in a lot of cash, risk-free! We should have a catch-up about it 🙂

      I think I’m gonna see how this one does before adding #2 first. I wish I could invest in a fun project like yourself! I need a bit more of a stash for that.

      Yeah, I can’t wait to analyse the data after a few years. I’m happy my net worth is almost 100k, but I won’t be ‘celebrating’ it, I’ll wait until I have 100k invested, not counting my primary residence in my ‘goals.’ 100k invested is my first milestone!

  4. Good luck on the property investing side of things! I am looking to get into property myself with the idea of buying a BTL for around £50 – £80k (of course mortgaged….) but thought there may be too much risk involved. I’ll keep watching out for updates on that!

    1. Would you do this through a company? The UK Government seems to have killed much of the benefits of going into BTL alone, really has put me off. That’s why Property Partner seems so good, you won’t get penalized for having a BTL with “second home tax” if you invest via PP.

  5. This is one of the first properties I bought when trading at a 1% premium. That makes us 2 “property landlords” 🙂

    Although I have spent a fair amount of time researching PP and writing about it, I have yet to find a good method for tracking performance. I’m more interested in annualised performance taking into account my ongoing contributions, which PP don’t really provide.

    On the EW front, how do you deal with emotional ups and downs? I find myself demotivated when in the red for say, 5 days in a row. I have to overcome this mental barrier before increasing my stakes (while also avoiding the risk of ruin…).

    1. Ayyy! My fellow landlord 😉 I do feel like I was a bit silly paying such a premium. The property is so cool though!

      With EW, I’m not going to lie, it effects me. I know people who have earned triple the profit that I have and it still affects them too. You have to try and think of it as monopoly money, which is hard. Especially for finance enthusiasts 😉

      But, it’s just one of those things you have to overcome in the pursuit of money. Especially these amounts! I must have said I was going to quit at least 4 times. Even now, I’ve lowered to £20 EW when my bank really would support over £80 EW – my profits could be 4x higher, but my emotional barrier isn’t as strong for those stakes yet.

  6. Have you recorded how much time you spend on EW betting? It’s something I’ve considered doing more research in and giving it a go but feels quite time consuming.

    Congratulations on your first property. I tried property crowdfunding but it just wasn’t for me. Although like you, I’ve only heard of good things about Property Partner.

    1. Don’t worry about time CC! Even though I go a bit over the top with the time I spend on it, you could allocate 1 hour per day and easily get 75% profit (£500, £2000, £5000 – depending on stake size). EW is really special, it takes barely any time, you can do it on your phone at work or whilst on the toilet. Just start with low stakes and say to yourself, “Every time I’m on the toilet, I’ll place a few bets.”

      The only trouble is, when you start making a lot of money, you’ll end up checking your phone constantly not wanting to miss a ‘big winner’ that comes in. But that’s up to you to control, it’s not necessary!

  7. Hey SN

    Great work on the numbers and congrats on your new ‘property investment’.

    I’ve got a post in draft about my own investment mistakes and it includes property investment… but don’t let that put you off, some have good experience, some have bad (and no, it was not with Property Partner!). Good luck with your investment.

    Incredible matched betting profits as usual! Arbing interests me but I’m not quick enough and don’t have the liquidity in my exchanges to make it worth my while. Will be interesting to read how you get on with that.

    1. Thanks Weenie 🙂

      Oooo, sounds like an interesting post. The property investment allocation currently stands at about 1.75% of my total investment assets. I don’t see it increasing too much from that figure, I’m a huge advocate of passive funds! But you never know 😉

      I mainly did this for a bit of fun and to fill the blank ‘Other Investments’ category. It was either this or Bitcoin!

  8. Very exciting! I can understand your desires to experiment with something new alongside the tried and tested index trackers; I recently tried my hand at P2P lending by sticking a grand in Ratesetter. Your idea sounds much cooler though!

    Good luck with your wedding preparations. Maybe that’s a good idea for a future post, similar to Mr YFG and The FIRE Shrink? Always interesting to see how people have brought the cost of their wedding down!

    1. I was considering adding a P2P lending investment as well in the future. I wanted to do Mintos but they’ve stopped offering to the UK at the moment. I’ll look at Ratesetter, thanks 🙂

      That would be a very interesting post, but it would be a bit bland. Most of the costs are being covered by my partner’s wealthy father. If we had a choice we would have eloped to Italy and done it all for a few grand. We were kind of guilt-tripped into staying and having an ‘extravagant’ wedding for their ‘only daughter’ with them stating that they’d foot the bill.

      We are still paying for a few things such as the photographer, cake and all of the bits in between, I could do a post about that 🙂

      1. If you do decide to go for Ratesetter, I’ll be cheeky and point out that they have a refer-a-friend scheme. If you join via my link, they’ll pay you an extra £100 and me £25. I’ve had no problems so far (6 months in) and have received ~3.5% interest. That plus the £100 after 12 months = ~13% interest, which I decided was worth the risk.

        Ah, that’s fair enough. I can see there being pros and cons to having most of the wedding paid for by the in-laws. It’s obviously great to have an extravagant party, but I’m not sure I’d like that loss of control!

  9. I’ve just started off with match bettings but I can see that I’ve still got a long way to learn after seeing your profits, I can understand it has you addicted, as the boosting income it provides can shorten you FI path considerably!

    Also, congrats on purchasing your first property share investment via Property Partner, I have been a happy user for over one and a half years. Hopefully, it will keep being like that for many years though.

    Good luck with your investment and looking forward to seeing how it develops 🙂

    I

    1. Thanks Tony! 🙂

      Matched betting is an awesome side-hustle. Let me know if you need any help!

      Are you coming to any of the London meetups? You should before you disappear to Spain 😉 (if you end up moving!)

    1. Hey Ninja #2 (you’re that on my site! Hehe)

      Thanks. It’s currently about 1.75% of my total investments, so it’s a bit small, but diversification nonetheless!

      Matched betting is currently only doable in the UK (and a few other places, I believe Auz?) as we don’t get taxed on gambling winnings. It’s different in the USA, I think gambling is outright banned in most states, right?

  10. I started EW about a month ago. I only go £5 EW but I’ve already been restricted by BetFred! 🙂 I don’t know how you manage to hang-on to your accounts at £30+ EW!

  11. Great month Ninja. I think is says a lot about how comfortable you are with your plan that you’re happy to dabble in P2P property. Having the confidence that it doesn’t matter too much what happens with that investment says a lot about your strategy.

    Also amazing work on the EW betting – that’s like 1/3-1/4 of your spending/budget for the entire year. Incredible!

    Enjoy the last few months running into the wedding. Looking back many years to mine, the only advice I would offer is to make sure that you keep focussed on the fact that you’re doing this ‘cos you want to get married. The wedding is only one day, it’s the years afterwards that really matter…doesn’t stop that the run into that day being stressful!

    1. Hey Caveman, thanks dude 🙂 I’m happy with the velocity of my saving at the moment, just wish I’d come to London earlier (so I could have invested more!)

      Sound advice, thank you. Just learning a dance at the mo – even more nerve-wracking! Haha.

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