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Galliard homes investors seminar presentation 30th june 1st july 2012

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  • 1. Galliard Homes Buy to Let Investor SeminarPresented by Daniel Dias and Claire Menton 30th June – 1st July 2012
  • 2. Introduction by the Galliard Chairman Stephen ConwayThe idea behind our buy to let seminars 1. How it works 2. Why it works 3. What is likely to happen next 4. Expert advice Where it all started for Galliard Homes 1. From Small Beginnings 2. Regeneration
  • 3. What is buy to let?The Basics An income producing residential investment with exit profit Yield – Net income as a % of your capital invested Capital Growth – Increase in Gross Asset Value Return on Investment – Return on your initial funds invested Excellent return on investment “Professional Investors and first time landlords are continuing to enter into the buy -to-let market as rising rents and cheap mortgage finance boost the appeal of investment properties” Financial Times Feb 2012
  • 4. How does it work?Your investment strategy Calculate how much money you have/want to invest Find out what type and level of mortgage you can get Obtain your price range Consider your priorities – income/capital growth/mix Identify what area to invest to fit your investment criteria FIND YOUR BUY TO LET INVESTMENT PROPERTY
  • 5. Why make a buy to let investment?Residential property was best performing asset class in last 10 yearsResidential property is set for a decade of growthLow Risk InvestmentDue to mortgage availability, it lets you make an investment worth up to three timesyour capital so you achieve better returns– no other type of investment allows you to do this.
  • 6. Residential property in last decade Asset Class Return (Inflation adjusted) 3% Residential Properties 3.7% Equities 7.1% Gilts 0.8% Commercial PropertiesFigures from Global Property Data Firm IPD UK Residential Index
  • 7. How did UK residential propertyperform in 2011? Residential Property outperformed all other asset classes 15.0 10.0 5.0 0.0 -5.0 -10.0 Residential All prop Retail Office Industrial Equities - All Real Estate Share Equities Source: IPD UK Annual Residential Property Index, IPD UK Quarterly Index, FTSE-All Share, FT Real Estate Delivered 11.3% returns across the UK Even higher for London Central London =14.1% Inner London = 12%
  • 8. Forecasts Residential Property predicted to be strongest investment over next 5 -10 years 5 years to 5 years to 10 year periodValues Forecast 2016 Rental Forecast 2016 Total Returns 2011-2021UK 6.0% Prime London 27.6% London Average 6.9%London 19.1% UK Mainstream 20.5% Greenwhich, Tower Hamlets 9% + and NewhamPrime London 22.7%
  • 9. Why invest in London now?Capital Values set to increaseTenant demand outstripping supplyRents increasingGrowing populationInterest rates low – they will riseBuy to let mortgage market has returnedThere are real purchase opportunities in the marketWidening UK GapSeen as “safe haven”Cash investors will move from prime areas to less central areas to seek better returns.Corporate investors e.g. pension funds who historically bought commercial property willmove into residential property as it consistently provides better returns “the time for residential investment has finally come” Yolande Barnes, Savills
  • 10. Why Galliard? - 10 Compelling Reasons HISTORY RELATIONSHIP1. 20 Years a Market Leader 6. Enduring Partnerships CREDIBILITY2. 20,000 New Homes Built 7. QUALITY Modern Designs Built to Last REGENERATION VALUE3. Transforming London 8. Investor Focused Locations4. INNOVATION Buy to Let Pioneers 9. HELPFUL Market Intelligence and Education5. OPPORTUNITY Profit for All 10. IN-HOUSE LETTINGS & MANAGEMENT Caring for Your Investment
  • 11. Regeneration – the key to our successBorn from the word regenerateto “Create Again”Transforming undesired locations ofyesterday into tomorrows hot spotsRejuvenating and Reinvigoratingan Area and its Housing StockCreating Vibrant New Communitieswhere People Want to Live and Work
  • 12. Galliard’s Regeneration StrategyUnlocking London’s PotentialOur Unique 10 Point Plan1. Desired Area Fringe✓2. Depressed Prices ✓3. Poor Quality Housing Stock✓4. Transport Links ✓5. Workplace Proximity ✓6. Education & Culture✓7. Leisure ✓8. Social ✓9. Government Initiatives ✓10. Inward Investment ✓“ the fundamentals of regeneration property remain sound, enjoying stronger, less volatile, income growth, and offering prospects of long term outperformance ” Source: IPD and Savills
  • 13. Galliard Regeneration DeliveredGalliard have been Successfully Regenerating London for over 20 yearsThe Southbank ,Docklands, Shad Thames, Westminster , and Clerkenwell.The Southbank - County Hall Up until the GLC was abolished in 1986 it was a local government council office area with very little housing and what did exist was of a poor quality. The location was spectacular but nobody wanted to live there. With fantastic transport links and proximity to workplaces. Galliard pioneered the regeneration offering apartments from as little as £99,000 in 1995. Over the past 15 years a significant number of high quality properties “Since march 2009 – the post have been built, many new hotels have opened, new cafe’s, bars and Lehman low point, prices have restaurants have arrived, and the London Eye opened. risen by 44% in South Bank compared to 37% in prime central These same apartments today sell for close to £500,000 and let for £435 London as a whole” per week. Source – Knight Frank
  • 14. Regeneration Now – Greenwich AreaGreenwich ticks all the boxes ✓• Fringe of Desired area✓ – Prime Greenwich £750 psf• Depressed Prices ✓ – On the fringe £350 psf• Poor Quality Housing Stock ✓• Transport Links✓  DLR – Canary Wharf in 11 minutes, Bank in 20 minutes  Underground – London Bridge in 11 minutes  National Rail – Cannon Street in 12 minutes  Thames Clipper  City Airport - DLR• Workplace Proximity✓ - Canary Wharf, City of London, The Shard• Education & Culture✓ – University of Greenwich, National Maritime Museum, Royal Observatory, Royal Naval College, & Cutty Sark• Leisure✓ - The 02, Greenwich Royal Park, & Greenwich Theatre• Social✓ – The 02, High Quality Café’s, Bars & Restaurants, & Greenwich & Docklands International Festival• Government Initiatives✓- First New Royal Borough in 80 Years, & “Greenwich now voted Royal Greenwich Decent Homes Programme. one of world’s top 10• Inward Investment ✓ - New Cruise Terminal, &Emirates Air Line tourist attractions” Frommers
  • 15. Greenwich Regeneration Opportunities  Distillery Crescent  Victoria Way  97 Apartments (1, 2, 3 &  New Capital Quay  136 Apartments 4 bedrooms)  636 Waterfront (1,2,3 beds)  Summer 2013 Development Apartments  Autumn 2014 (1,2,&3 Bedrooms)  Spring 2013 & Summer 2014
  • 16. Victoria Way – Entry Level Opportunity1 bed, 1 bathPurchase price: £165,000 - £190,000Rental income per month: £ 1,000 - £ 1,200  Deposit/Equity Required (30%): £49,500 - £57,000  Gross Income pa: £12,000 - £14,400  Gross Yield: 7.3%- 7.6%  Potential Capital Growth in 5 years (19.1%): £31,500 - £36,000
  • 17. Distillery Crescent – A Yield Opportunity1 bed, 1 bathPurchase price: £199,000 - £235,000Rental income per month: £ 1,150 - £ 1,300  Deposit/Equity Required (30%): £59,700 - £70,500  Gross Income pa: £13,800 - £15,600  Gross Yield: 6.6%- 6.9%  Potential Capital Growth in 5 years (19.1%): £38,000 - £45,000
  • 18. New Capital Quay – Location, Location, Location1 bed, 1 bathPurchase price: £275,000 - £325,000Rental income per month: £ 1,350 - £ 1,600  Deposit/Equity Required (30%): £82,500 - £97,500  Gross Income pa: £16,200 - £19,200  Gross Yield: 5.9%- 6.0%  Potential Capital Growth in 5 years (22.7%): £62,500 - £74,000
  • 19. What to do now? 1. Come and see our latest developments in Greenwich 2. We will help you find the right property to best fit your investment criteria 3. Make a sound investment in another successful Galliard Homes developmentGalliard Homes Buy to Let Investor SeminarPresented by Daniel Dias and Claire Menton 30th June – 1st July 2012
  • 20. Contact Us Telephone +44 (0) 207 620 1500 www.galliardhomes.com Email: sales@galliardhomes.com Email: daniel@galliard.co.uk facebook.com/galliardresidential @Galliard_DanielGalliard Homes55 Greenwich High Road, Greenwich, London, SE10 8JL