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High Yield Property InvestingHigh Yield Property Investing
Andrew PhillipsAndrew Phillips
Back groundBack ground
• IT ConsultantIT Consultant (CITP MBCS CEng)(CITP MBCS CEng)
• Investor for 18 yearsInvestor for 1...
Investment CriteriaInvestment Criteria
•Good rental return 4% 10% 15% ??Good rental return 4% 10% 15% ??
•Capital growthCa...
This InvestmentThis Investment
•Rental return :-Rental return :-
Guaranteed 10%Guaranteed 10%
2 Years2 Years
5 Years5 Year...
This InvestmentThis Investment
•BMVBMV
Currently 40% +Currently 40% +
•Low deposit or NMD :-Low deposit or NMD :-
30% depo...
This InvestmentThis Investment
•MortgageMortgage
GuaranteedGuaranteed
•Hassel free managementHassel free management
Fully ...
This InvestmentThis Investment
•Satisfied investor wantsSatisfied investor wants
• Free HoldFree Hold
•Resort ManagedResor...
Computer Generated Image
Computer Generated Image
Computer Generated Image
Computer Generated Image
Due DiligenceDue Diligence
• DeveloperDeveloper
– UK based, family owned companyUK based, family owned company
– One of th...
Due DiligenceDue Diligence
• Suitable for SIPPsSuitable for SIPPs
• Liverpool Football soccer schoolLiverpool Football soc...
•Day 45 Balance of 30% deposit = £29,000
•Day 1 Reservation fee = £ 1,000
How to BuyHow to Buy
•1st floor Studio Apartment...
ExampleExample
•Funding the 30% deposit
•The investor raises a loan to pay the 30% deposit and developer will
pay the mont...
Redeem original deposit - £30,000
Total - £114,650
Final account at completion:
Balance of purchase price - £70,000
Stage ...
Balance required by investor - £114,650
Completion – What do we need?
Unit Value - £175,000
70% LTV Mortgage*- £122,500
* ...
Balance required by investor
including deposit return - £114,650
Completion – What do we Get?
Unit Value - £175,000 (60350...
Property Original Purchase Price = £100,000
Mortgage taken out = £115,000 (no CB) Int Rate = 7%
= £8050 P.A (int only)
Mor...
Year 3
Occupancy rate = 70% Room Rate = £150/night
£150 x 365 nights = £54,750
£54,750 x 70% occ = £38,325
Property Invest...
Property Original Purchase Price = £100,000
Mortgage taken out = £115,000 Int Rate = 7%
= £8050 P.A (int only)
Mortgage In...
£150 x 70% Occupancy = Income of £19,162.50
£200 x 75% Occupancy:
£200 x 365 nights = £73,000
£73,000 x 75% occ = £54,750
...
Property Original Purchase Price = £100,000
Mortgage taken out = £115,000 Int Rate = 7%
= £8050 P.A (int only)
Mortgage In...
Studio apartmentStudio apartment
Purchase Price =Purchase Price =£100,000£100,000 unitunit
Therefore mortgage costs = appr...
SummarySummary
• Good investment on both return and capitalGood investment on both return and capital
growth.growth.
• Ful...
Exit StrategyExit Strategy
• Opportunity to resell the contract prior to completion –
100% finance offered to new buyer – ...
What NextWhat Next
• For Brochures & info
http://www.fugabella.co.uk/investments-abroad.html
• Call Andy Phillips for full...
High Yield Investments
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High Yield Investments

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One way to get high yield investments with no management problems.

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High Yield Investments

  1. 1. High Yield Property InvestingHigh Yield Property Investing Andrew PhillipsAndrew Phillips
  2. 2. Back groundBack ground • IT ConsultantIT Consultant (CITP MBCS CEng)(CITP MBCS CEng) • Investor for 18 yearsInvestor for 18 years • Buy to letsBuy to lets – Students / HMOStudents / HMO – ProfessionalProfessional • RenovationsRenovations • AbroadAbroad • Property sourcing for othersProperty sourcing for others
  3. 3. Investment CriteriaInvestment Criteria •Good rental return 4% 10% 15% ??Good rental return 4% 10% 15% ?? •Capital growthCapital growth •BMVBMV •Low deposit or NMDLow deposit or NMD •Mortgage or fully financedMortgage or fully financed •Hassel free managementHassel free management •Hassel free maintenanceHassel free maintenance •Low VoidsLow Voids •Low RiskLow Risk
  4. 4. This InvestmentThis Investment •Rental return :-Rental return :- Guaranteed 10%Guaranteed 10% 2 Years2 Years 5 Years5 Years 10 years10 years •Capital growth :-Capital growth :- appreciating at between 10 – 15% +appreciating at between 10 – 15% + www.Propertywire.comwww.Propertywire.com
  5. 5. This InvestmentThis Investment •BMVBMV Currently 40% +Currently 40% + •Low deposit or NMD :-Low deposit or NMD :- 30% deposit30% deposit Complete financingComplete financing •Loan :- payments paid for you byLoan :- payments paid for you by Developer affectively providing NMDDeveloper affectively providing NMD •SIPPSIPP
  6. 6. This InvestmentThis Investment •MortgageMortgage GuaranteedGuaranteed •Hassel free managementHassel free management Fully included in rental schemeFully included in rental scheme •Hassel free maintenanceHassel free maintenance Fully included in rental schemeFully included in rental scheme •VoidsVoids Fully included in rental returnFully included in rental return
  7. 7. This InvestmentThis Investment •Satisfied investor wantsSatisfied investor wants • Free HoldFree Hold •Resort ManagedResort Managed •Who would like to own a VillaWho would like to own a Villa •UK ResortUK Resort •CaribbeanCaribbean •BrazilBrazil –Free 30 days accommodation at your 5 star resort every year.Free 30 days accommodation at your 5 star resort every year.
  8. 8. Computer Generated Image
  9. 9. Computer Generated Image
  10. 10. Computer Generated Image
  11. 11. Computer Generated Image
  12. 12. Due DiligenceDue Diligence • DeveloperDeveloper – UK based, family owned companyUK based, family owned company – One of the largest developers in the CaribbeanOne of the largest developers in the Caribbean – All land unencumbered: Debt free.All land unencumbered: Debt free. • Development recently valued at $450 millionDevelopment recently valued at $450 million – Building contractors 5 A ratedBuilding contractors 5 A rated – Projects supported by local government – Some taxProjects supported by local government – Some tax benefits granted for investors*benefits granted for investors* – No banks involvedNo banks involved
  13. 13. Due DiligenceDue Diligence • Suitable for SIPPsSuitable for SIPPs • Liverpool Football soccer schoolLiverpool Football soccer school • Gary Player Golf course and SignatureGary Player Golf course and Signature HotelsHotels • Pat Cash Tennis AcademyPat Cash Tennis Academy • Oasis Hotel Chain managementOasis Hotel Chain management – Asian resort trainersAsian resort trainers
  14. 14. •Day 45 Balance of 30% deposit = £29,000 •Day 1 Reservation fee = £ 1,000 How to BuyHow to Buy •1st floor Studio Apartment at Las Canas Beach Resort - Completion 2012 •Purchase Price = £100,000 If a loan is used to source the 30% deposit, developer will make the monthly payments on the investor’s behalf. No further funds will be required from the investor until completion.
  15. 15. ExampleExample •Funding the 30% deposit •The investor raises a loan to pay the 30% deposit and developer will pay the monthly loan repayments until completion •Loan repayments @ 7%* = approx £175 per month x 42 months = £7,350 •This amount will be added to the final account at completion. * Subject to Status
  16. 16. Redeem original deposit - £30,000 Total - £114,650 Final account at completion: Balance of purchase price - £70,000 Stage Payment Interest - £7,300* CompletionCompletion • Estimated property value at completion - £175,000 30% Loan Repayments - £7,350 * Approx interest due
  17. 17. Balance required by investor - £114,650 Completion – What do we need? Unit Value - £175,000 70% LTV Mortgage*- £122,500 * Anticipated LTV
  18. 18. Balance required by investor including deposit return - £114,650 Completion – What do we Get? Unit Value - £175,000 (60350 equity) 70% LTV Mortgage*- £122,500 Cash back - £7850 * Anticipated LTV
  19. 19. Property Original Purchase Price = £100,000 Mortgage taken out = £115,000 (no CB) Int Rate = 7% = £8050 P.A (int only) Mortgage Income* Year 1 £8050 £10,000 Year 2 £8050 £10,000 Year 3 £8050 ???? * Excluding Costs Rental Income
  20. 20. Year 3 Occupancy rate = 70% Room Rate = £150/night £150 x 365 nights = £54,750 £54,750 x 70% occ = £38,325 Property Investors 50% share = £19,162.50 Rental Income
  21. 21. Property Original Purchase Price = £100,000 Mortgage taken out = £115,000 Int Rate = 7% = £8050 P.A (int only) Mortgage Income* Year 1 £8050 £10,000 Year 2 £8050 £10,000 Year 3 £8050 £19,162.50 * Excluding Costs Rental Income
  22. 22. £150 x 70% Occupancy = Income of £19,162.50 £200 x 75% Occupancy: £200 x 365 nights = £73,000 £73,000 x 75% occ = £54,750 Property Investors 50% share = £27,375 Rental Income
  23. 23. Property Original Purchase Price = £100,000 Mortgage taken out = £115,000 Int Rate = 7% = £8050 P.A (int only) Mortgage Income* Year 1 £8050 £10,000 Year 2 £8050 £10,000 Year 3 £8050 £19,162.50 Year 4 £8050 £27,375 * Excluding Costs Rental Income
  24. 24. Studio apartmentStudio apartment Purchase Price =Purchase Price =£100,000£100,000 unitunit Therefore mortgage costs = approxTherefore mortgage costs = approx £8,050£8,050 If Occupancy =If Occupancy = 70%70%, nightly room rate must be minimum £, nightly room rate must be minimum £6363 perper nightnight Buccament bay figures from ExpediaBuccament bay figures from Expedia These properties have availability for 9/8/2010 - 15/8/2010These properties have availability for 9/8/2010 - 15/8/2010 Tamarind Beach Hotel & Yacht Club from £132.93 per nightTamarind Beach Hotel & Yacht Club from £132.93 per night The Palm Island Resort from £444.99 per nightThe Palm Island Resort from £444.99 per night Cotton House from £340.29 per nightCotton House from £340.29 per night Break even pointBreak even point * These figures exclude management charges
  25. 25. SummarySummary • Good investment on both return and capitalGood investment on both return and capital growth.growth. • Fully FinancedFully Financed • Commercial so can use a SIPPCommercial so can use a SIPP • Developer Debt freeDeveloper Debt free – All Land Unencumbered.All Land Unencumbered. – No Banks involvedNo Banks involved • 5 Star resort chains + celebrity endorsement5 Star resort chains + celebrity endorsement
  26. 26. Exit StrategyExit Strategy • Opportunity to resell the contract prior to completion – 100% finance offered to new buyer – subject to status • Complete on the property and restructure the finance – End mortgage – 70% loan to value developer loan - reinvest • Complete on the property enjoy the rental income • After completion resale office on each site
  27. 27. What NextWhat Next • For Brochures & info http://www.fugabella.co.uk/investments-abroad.html • Call Andy Phillips for full financing information 07799 475037 • Visit head office

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