London buy to-let fundamentals seminar 31st march 2012
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The document summarizes a seminar on London buy-to-let properties. It discusses key buy-to-let fundamentals like yield, capital growth, return on investment, investment strategy, costs and funding. Examples are provided to illustrate how to calculate yield and return on investment. The seminar also reviews factors like location selection, property research, financing and management of rental properties. Attendees are encouraged to design an investment strategy that meets their goals and risk tolerance.
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London buy to-let fundamentals seminar 31st march 2012
- 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
- 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