Sharing our experience and knowledge on the basics of Buy-to-Let in London

1. London Buy-to-Let
Seminar
31st March & 1st April 2012
Daniel Dias

2. London Buy-to-Let 2012
Buy-to-Let Fundamentals
•Yield
•Capital Growth
•Return on Investment
•Investment Strategy
•Initial Funds
•Leverage
•Costs

3. London Buy-to-Let 2012
Buy-to-Let Fundamentals – Yield
Gross Income - Costs = Net Income
Net Income
x 100 = Yield
Capital

4. London Buy-to-Let 2012
Buy-to-Let – Example 1 Yield
Property Value £250,000.00 £250,000.00
LTV 60.00% 75.00%
Loan £150,000.00 £187,500.00
Annual Interest Rate 3.88% 4.49%
Annual Interest £5,820.00 £8,418.75
Deposit £100,000.00 £62,500.00
Gross Income £12,500.00 £12,500.00
Costs -£5,820.00 -£8,418.75
Net Income £6,680.00 £4,081.25
Yield 6.68% 6.53%

5. London Buy-to-Let 2012
Buy-to-Let Fundamentals –
Capital Growth
• Increase in the Gross Asset Value (Property Value)
Sales Price - Purchase Price = Increase
Increase
x 100 = Capital
Purchase Price Growth

6. London Buy-to-Let 2012
Buy-to-Let Fundamentals –
Return on Investment
• Return on Your Initial Funds Invested (Capital)
Sale Proceeds - Purchase Costs = Profit
Profit ROI
x 100 =
Capital Return on Investment

7. London Buy-to-Let 2012
Buy-to-Let – Example 2 ROI
Purchase Price £250,000.00 £250,000.00
Purchase Costs (2%) £5,000.00 £5,000.00
Total Purchase Cost £255,000.00 £255,000.00
Capital Growth 10.00% 20.00%
Sales Price £275,000.00 £300,000.00
Sales Costs (2%) -£5,500.00 -£6,000.00
Sales Proceeds £269,500.00 £294,000.00
Profit £14,500.00 £39,000.00
Capital (40% + Purchase Costs) £105,000.00 £105,000.00
ROI (Return on Investment) 13.81% 37.14%
Capital (25% + Purchase Costs) £67,500.00 £67,500.00
ROI (Return on Investment) 21.48% 57.78%

8. London Buy-to-Let 2012
Buy-to-Let Fundamentals –
Mortgage Funding & Other Costs
• LTV – Loan to Value (% of Property Value)
•Leverage (Debt to Capital Ratio)
•Agents Fees
•Service Charges & Ground Rent

9. London Buy-to-Let 2012
Buy-to-Let Fundamentals –
Letting, Management, & Maintenance
• Letting
•Management
•Maintenance
•Choose the Right Agent

10. London Buy-to-Let 2012

11. London Buy-to-Let 2012

12. London Buy-to-Let 2012

13. London Buy-to-Let 2012
Buy-to-Let Fundamentals –
Investment Strategy
• Goals
• Risk
• Initial Funds
• Capital Growth or Yield
• Research & Education
• Commit & Take Action

14. London Buy-to-Let 2012
What to do now?
•Design Your Investment Strategy
•Select Your Targets
•Do Your Research
•Negotiate a discount
•Select the Correct Mortgage
•Execute YOUR Strategy

15. Knowledge is the
Key
Daniel Dias

16. Contact Us
Telephone +44 (0) 020 760 1500
www.galliardhomes.com
Email: sales@galliardhomes.com
Email: daniel@galliard.co.uk
facebook.com/galliardresidential
@Galliard_Daniel
Galliard Homes
55 Greenwich High Road, Greenwich, London, SE10 8JL