4:Property

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    4:Property - Presentation Transcript

    1. While the UK market is quiet, do you want to make money in more active and profitable markets? West Country Landlords Association 17th December 2008 Chris Howard 4:Property
    2. What do you want to take away from this session?
    3. What do you want to take away from this session? How to make the most of your investments : § Protect what you’ve got § Increase your wealth by growing your returns
    4. What do you want to take away from this session? How to make the most of your investments : § Protect what you’ve got § Increase your wealth by growing your returns We only have a short time, for a very substantial topic, so I’d like to focus on the key elements : § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § Investors’ profits from development § What’s the best way to invest?
    5. First of all, introductions
    6. 4:you and 4:Property Projects Existing Investments/ Developments 4 Property Projects
    7. Who are you? Two questions, for a show of hands 1. UK Home only 1-5 properties 5+ properties 2. Abroad No investments abroad 1-5 5+
    8. Our Agenda Today § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § What’s the best way to invest? § Summary
    9. Our Agenda Today § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § What’s the best way to invest? § Summary
    10. The UK Market § As we know, strong growth in recent years
    11. UK House Prices : The long view : 1970 - 2008 UK Average House Prices 1970 - 2007 250,000 200,000 150,000 100,000 50,000 0 70 73 76 79 82 85 88 91 94 97 00 03 06 09 19 19 19 19 19 19 19 19 19 19 20 20 20 20
    12. UK House Prices : The long view : 1970 - 2008 UK Average House Prices 1970 - 2007 250,000 200,000 150,000 100,000 50,000 0 70 73 76 79 82 85 88 91 94 97 00 03 06 09 19 19 19 19 19 19 19 19 19 19 20 20 20 20
    13. House Price Inflation 1984 - 2007 Source : The ODPM (Table 521) has carried out a comparison between their statistics and those of the Nationwide and Halifax. These are the figures for annual house price inflation, in percentage terms, since 1984.
    14. The UK Market § As we know, strong growth in recent years, now faltering § A lot of media attention
    15. Property : always newsworthy, but not always informative The Times 29th October 2007 The Times 13th March 2007
    16. Property : always newsworthy, but not always informative The Times 29th October 2007 The Times 13th March 2007 The Times 23rd August 03 The Times 30th August 03
    17. The UK Market § As we know, strong growth in recent years, now faltering § A lot of media attention § Many comments by vested interests
    18. The UK Market § As we know, strong growth in recent years § A lot of media attention § Many comments by vested interests : § Savills, Knight Frank .. - central London ‘big ticket’ § Estate Agents, RICS - the only way is up § Council of Mortgage Lenders - ‘lending’
    19. The UK Market § As we know, strong growth in recent years, now faltering § A lot of media attention § Many comments by vested interests § A tendency to make over simplified statements
    20. The UK Market § As we know, strong growth in recent years, now faltering § A lot of media attention § Many comments by vested interests § A tendency to make over simplified statements : “The property market will ….” but there are many property markets § Residential / Commercial / Retail § and local performance matters
    21. Looking into the crystal ball – but let’s try
    22. UK House Prices : The long view : 1970 - 2008 UK Average House Prices 1970 - 2007 250,000 200,000 150,000 100,000 50,000 0 70 73 76 79 82 85 88 91 94 97 00 03 06 09 19 19 19 19 19 19 19 19 19 19 20 20 20 20 Is this just the changing exchange rate between houses and available credit?
    23. Looking into the crystal ball – but let’s try What can we foresee? § A shortage of credit over at least the next 6-12 months § Local conditions matter – city centre apartments, regeneration etc § Financial markets will take a while to settle, then be more wary
    24. Looking into the crystal ball – but let’s try What can we foresee? § A shortage of credit over at least the next 6-12 months § Local conditions matter – city centre apartments, regeneration etc § Financial markets will take a while to settle, then be more wary but, § Supply/ Demand will determine price level § Affordability may determine the ownership/ rental mix § For credit, experienced landlords will be favoured
    25. Looking into the crystal ball – but let’s try What can we foresee? § A shortage of credit over at least the next 6-12 months § Local conditions matter – city centre apartments, regeneration etc § Financial markets will take a while to settle, then be more wary but, § Supply/ Demand will determine price level § Affordability may determine the ownership/ rental mix § For credit, experienced landlords will be favoured Average house price § Has fallen by 10% over the last 12 months § likely to fall up to a further 10% (15%?) over 1-2 yrs
    26. So what are the options for you? The business questions: § How do you make the most of your assets? § How do you manage your money? § What could you do to raise your rate of return?
    27. Now there is more property to choose from § UK § Europe - Old Europe, New Europe § Asia - China, SE Asia, India § South America § Australia….
    28. Now there is more property to choose from § UK § Europe - Old Europe, New Europe § Asia - China, SE Asia, India § South America § Australia…. But this raises issues of § Availability, stability and realisability § What suits you? § How much time do you want to spend?
    29. Our Agenda Today § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § What’s the best way to invest? § Summary
    30. Active property markets follow active economies Which to choose depends upon Your target returns § How well you manage your portfolio Your knowledge of the market § Your view of the country § Economic performance § Political stability/ Reliability § or your business partners knowledge
    31. Active property markets follow active economies Which to choose depends upon Your target returns § How well you manage your portfolio
    32. What is your target? Cumulative returns Investing at 5% p.a. 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 1 2 3 4 5 6 7 8 9 10 At 5% per year, every year £1,000 becomes £1,600
    33. What is your target? Cumulative Returns Investing at a 30% per year return 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 At 30% per year, every year £1,000 becomes £14,000
    34. What is your target? Comparison of Cumulative returns 30% p.a. or 5% p.a. 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 So for each £1,000 you invest, after 10 years, The difference is substantial Which would you prefer £1,600 or £14,000?
    35. How do you achieve that? Getting more from your investments • Create a portfolio – Place your funds in diverse independent investments – Plan your profits and manage the uncertainty • Spread your investment – seek more profitable markets – Use your money in a range of investments – Take advantage of higher return investments – Don’t put all your eggs in one basket • Achieve your planned returns – A portfolio achieves closer to the planned returns – A portfolio achieves higher returns
    36. Property Markets Different types § Emerging markets § Active Markets § Mature Markets § Stagnant Markets
    37. Looking ahead now, Economic Growth in 2008-9
    38. Markets behave differently An important comparison UK New joiners to EU (eg Croatia, Romania) Economic Growth 0% 6-7% p.a. (i.e. 25% in 4 years)
    39. Markets behave differently An important comparison UK New joiners to EU (eg Croatia, Romania) Economic Growth 0% 6-7% p,a, (i.e. 25% in 4 years) Property Development Halted Active, investment and new jobs
    40. Markets behave differently An important comparison UK New joiners to EU (eg Croatia, Romania) Economic Growth 0% 6-7% p,a, (i.e. 25% in 4 years) Property Development Halted Active, investment and jobs Property Appreciation -10% p.a. +10 - 20% p.a.
    41. Property Markets Different types § Emerging markets § Active Markets § Mature Markets § Stagnant Markets
    42. Our Agenda Today § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § What’s the best way to invest? § Summary
    43. Active property markets follow active economies Which to choose depends upon Your target returns § How well you manage your portfolio Your knowledge of the market § Your view of the country § Economic performance § Political stability/ Reliability § or your business partners knowledge
    44. International markets are readily accessible What suits you best? Now you can choose from : § UK § Europe - Old Europe, New Europe § Asia - China, SE Asia, India § South America § Australia….
    45. International markets are readily accessible What suits you best? Now you can choose from : § UK § Europe - Old Europe, New Europe § Asia - China, SE Asia, India § South America § Australia….
    46. International markets are readily accessible What suits you best? Now you can choose from : § UK § Europe - Old Europe, New Europe § Asia - China, SE Asia, India § South America § Australia…. Politically stable, strong economic growth New Europe will continue to grow
    47. The areas to invest in There is currently substantial inward investment § EU - airports, cheap flights, motorways, banks and utilities § Corporations § Private Investment – company and property Increasing local incomes and buying power
    48. The areas to invest in There is currently substantial inward investment § EU - airports, cheap flights, motorways, banks and utilities § Corporations § Private Investment – company and property Increasing local incomes and buying power Where to invest? Areas of economic growth § Commercial Centres § Regeneration Areas § Tourist Areas
    49. Foreign Direct Investment growing for 10 years Foreign Direct Investment during the 3 years before; 2 years after and 6-8 years after joining the EU 1200 1000 800 600 400 200 0 Ireland UK Portugal Spain Property Secrets : Eastern Europe
    50. Our Agenda Today § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § What’s the best way to invest? § Summary
    51. Property Markets Different types § Emerging markets § Active Markets § Mature Markets § Stagnant Markets Different Ways of investing § Land § Development § Buy to sell/ off plan § Purchase and hold (BTL)
    52. Property Investment : Using the property cycle • Land • Development • Buy to sell/ off plan • Purchase and hold (BTL)
    53. Property Investment : The Options • Land • Higher risk and potentially higher reward • Needs good local knowledge • Development § High returns, reliable profits, fixed project period § But not readily accessible to individual investors • Buy to sell/ off plan • Developer valuations • Market maturity • Purchase and hold (BTL) § Returns depend on market appreciation § And successful sale in the future
    54. Property Investment This is also the sequence of • Land a project • Higher risk and potentially higher reward • Needs good local knowledge • Development § High returns, reliable profits, fixed project period § But not readily accessible to individual investors • Buy to sell/ off plan • Developer valuations • Market maturity • Purchase and hold (BTL) § Returns depend on market appreciation § And successful sale in the future
    55. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 PP2 25 PP1 10 5 Green Construction Property With Land Phase Planning Ownership Permission or BTL
    56. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 PP2 25 PP1 10 5 Green Construction Property With Land Phase Planning Ownership Permission or BTL
    57. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 PP2 25 PP1 10 5 Green Construction Property With Land Phase Planning Ownership Permission or BTL
    58. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 PP2 25 PP1 10 5 Green Construction Property With Land Phase Planning Ownership Permission or BTL
    59. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 PP2 25 Added PP1 Value: 20 10 5 Green Development Property With Land (Construction) Ownership Planning Permission Phase or BTL
    60. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 Added Value : 75 Costs : 35 Profit : 40 PP2 25 Added PP1 Value: 20 10 5 Green Development Property With Land (Construction) Ownership Planning Permission Phase or BTL
    61. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 A larger Return PP2 25 PP1 10 5 Green Development Property With Land (Construction) Ownership Planning Permission Phase or BTL
    62. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 A larger Return PP2 25 But a PP1 larger 10 % return 5 Green Development Property With Land (Construction) Ownership Planning Permission Phase or BTL
    63. Managing your property investment wisely Value of Property the Site Appreciation £ Property Completes 100 BTL - A larger Return return depends totally on market PP2 appreciation 25 But a PP1 larger 10 % return 5 Green Development Property With Land (Construction) Ownership Planning Permission Phase or BTL
    64. So the key questions for property investors, and for you are ……. § Are you making the capital gain or income you want from your investments? § Are you using the market opportunities available to you? § Are you using the stages of the property cycle? § Do you have the right balance, for you, of UK and other more profitable property markets?
    65. Our Agenda Today § The UK market outlook § Managing your assets to achieve stronger growth § Why the ‘new joiner’ markets § The investment options § What’s the best way to invest? § Summary
    66. To grow your assets you have to look for growth § Invest in the market you know - use the cycle § create profit and asset § Watch market performance – for active markets § Seek more profitable markets § Spread your investments § Use your assets, to actively re-invest, this will § Raise your rate of return § Create larger assets to invest later
    67. Typical UK residential development % UK Sales Value £ 20% PROFIT 50% BUILD LAND 30%
    68. New joiner to the EU residential development % UK % NJEU Sales Value Sales Value £ 20% PROFIT 35-40% PROFIT 50% BUILD BUILD 50% LAND 30% 10 - 15% LAND
    69. New joiner to the EU residential development % UK % NJEU Sales Value Sales Value £ 20% PROFIT 35-40% PROFIT 50% BUILD Investment in BUILD 50% site, design permission LAND 30% 10 - 15% LAND
    70. New joiner to the EU residential development % UK % NJEU Sales Value Sales Value £ 20% PROFIT 35-40% Marketing, PROFIT sales and construction 50% BUILD Investment in BUILD 50% site, design permission LAND 30% 10 - 15% LAND
    71. New joiner to the EU residential development Returns % UK % NJEU Sales Value Sales Value £ 20% PROFIT 35-40% Marketing, PROFIT sales and construction 50% BUILD Investment in BUILD 50% site, design permission LAND 30% 10 - 15% LAND
    72. New joiner to the EU residential development % UK % NJEU Sales Value Sales Value £ 20% PROFIT 35-40% PROFIT 50% BUILD BUILD 50% Investment LAND 30% 10 - 15% LAND
    73. New joiner to the EU residential development Returns shared % UK % NJEU 50 / 50 Sales Value Sales Value £ Investors first call 20% PROFIT on profits, 35-40% PROFIT then 4P + local Partner 50% BUILD BUILD 50% Investment LAND 30% 10 - 15% LAND
    74. Our Agenda Today § Why property § Why the ‘new joiner’ markets § The investment options § Investors’ profits from development § Where should I invest? § Summary
    75. New joiner to the EU residential development % UK % NJEU Sales Value Sales Value £ 20% PROFIT 35-40% PROFIT 50% BUILD BUILD 50% LAND 30% 10 - 15% LAND
    76. Find the site Location, Starigrad Croatia amenities, appeal Utilities, access, attractiveness
    77. Design the detailed Scheme - on the outside Lika, Croatia
    78. Design the detailed Scheme – and on the inside
    79. Market the Scheme to property buyers Mountain view, Borovets Rila View, Samarkov
    80. 4:Croatia Each country is different, but similar segments In Croatia, focusing on § Coastal and ski tourist centres and § Second homes near the capital, Zagreb § Apartments at Cavtat, Dubrovnik But local knowledge is key
    81. 4:Montenegro Each country is different, but with similar segments In Montenegro, focusing on § the tourist centres, near Dubrovnik airport § Boka Bay and Kotor, in a beautiful but small economy But local knowledge is key
    82. 4:Bulgaria Each country is different, but with similar segments In Bulgaria focusing on § Tourist centres, and § second homes near the Capital, Sofia But local knowledge is key
    83. 4:Romania Each country is different, but with similar segments In Romania focusing on § Commercial Centres, and § the Capital, Bucharest But local knowledge is key
    84. 4Property Investments - Current Projects SINGLE COUNTRY Returns Investor Profit Land 1. Romania Land 40% p.a. 96% in 2 years Development 2. Cavtat, Croatia 35% p.a. 82% in 2 years 3. Romania Land and Devt 30% p.a. 120% in 3 years
    85. 4Property Investments - Current Projects SINGLE COUNTRY Returns Investor Profit Land 1. Romania Land 40% p.a. 96% in 2 years Development 2. Cavtat, Croatia 35% p.a. 82% in 2 years 3. Romania Land and Devt 30% p.a. 120% in 3 years PORTFOLIO INVESTMENTS 4. Wealthbuilder – int. paid 18% p.a. Income 54% over 3 years Landlords Investment 20% p.a. C.Gain 73% over 3 years 5. UK Tax Free - SIPPS 20% p.a. 73% in 3 years 5. Invest4charity 28% p.a. 63% in 2 years
    86. Our Agenda Today § Why property § Why the ‘new joiner’ markets § The investment options § Investors’ profits from development § Where should I invest? § Summary
    87. In summary - Make the most of your investments Create a portfolio of independent investments § Use the strength that different investments brings you Make the most of the cumulative returns over time § Achieve higher profits, more predictably, year in, year out Choose the investments that suit your strategy § Choose to earn income or capital gain § Short term or long term
    88. 4Property Projects allow our investors to Profit from the market changes § Spread your investment in the active property markets wisely § Use these major economic changes § Expect active EU property markets for 5-10 years Include the profitable 4Property Projects in your portfolio § High rates of return : 20% - 40% per year compound : on plan performance typically 2x in 3yrs § Investor Security § During the project : First charge on the assets § On completion : First share of profits
    89. 4Property Projects allow our investors to Profit from the market changes § Spread your investment in the active property markets wisely § Use these major economic changes § Expect active EU property markets for 5-10 years Include the profitable 4Property Projects in your portfolio § High rates of return : 20% - 40% per year compound : on plan performance typically 2x in 3yrs § Investor Security § During the project : First charge on the assets § On completion : First share of profits A natural part of any property investment
    90. ‘Just good business’ § Good profitable business for you § Wise use of major economic trends § Long lasting and repeatable, rolling over…. § What else would you look for?
    91. Thank you 4 Property Telephone : 0800 1601 004 E mail : invest @ 4property . uk. com Website : www . 4property . uk . com

    + alison13alison13, 9 months ago

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