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

Galliard Homes Buy to Let Investor SeminarPresented by Daniel Dias and Claire Menton 30 th June – 1st July 2012

Introduction by the Galliard Chairman

Stephen Conway

The 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

5. From Small Beginnings

6. Regeneration

What is buy to let?

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

The Basics

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

How does it work?

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

Your investment strategy

Why make a buy to let investment?

Residential property was best performing asset class in last 10 years

Residential property is set for a decade of growth

Low Risk Investment

Due to mortgage availability, it lets you make an investment worth up to three times your capital so you achieve better returns – no other type of investment allows you to do this.

Residential property in last decade

Figures from Global Property Data Firm IPD UK Residential Index

Return (Inflation adjusted)

7.1%

0.8%

3.7%

3%

Asset Class

Residential Properties

Equities

Gilts

Commercial Properties

How did UK residential property perform in 2011?

Delivered 11.3% returns across the UK Even higher for London

Central London =14.1% Inner London = 12%

Residential Property outperformed all other asset classes

Residential All prop Retail Office Industrial Equities - All Share

Real Estate Equities

-10.0

-5.0

0.0

5.0

10.0

15.0

Source: IPD UK Annual Residential Property Index, IPD UK Quarterly Index, FTSE-All Share, FT Real Estate

Forecasts

Residential Property predicted to be strongest investment over next 5 -10 years

Values Forecast5 years to

2016

UK 6.0%

London 19.1%

Prime London 22.7%

Rental Forecast5 years to

2016

Prime London 27.6%

UK Mainstream 20.5%

Total Returns10 year period

2011-2021

London Average 6.9%

Greenwhich, Tower Hamlets and Newham

9% +

Why invest in London now?

Capital Values set to increase

Tenant demand outstripping supply

Rents increasing

Growing population

Interest rates low – they will rise

Buy to let mortgage market has returned

There are real purchase opportunities in the market

Widening UK Gap

Seen 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 will

move into residential property as it consistently provides better returns

“the time for residential investment has finally come” Yolande Barnes, Savills

Why Galliard? - 10 Compelling Reasons

2. CREDIBILITY 20,000 New Homes Built

3. REGENERATION Transforming London

4. INNOVATION Buy to Let Pioneers

5. OPPORTUNITY Profit for All

6. RELATIONSHIPEnduring Partnerships

7. QUALITY Modern Designs Built to Last

8. VALUEInvestor Focused Locations

HELPFULMarket Intelligence and Education9.

10. IN-HOUSE LETTINGS & MANAGEMENT Caring for Your Investment

HISTORY 20 Years a Market Leader1.

Regeneration – the key to our success

Born from the word regenerate to “Create Again”

Transforming undesired locations of yesterday into tomorrows hot spots

Rejuvenating and Reinvigorating an Area and its Housing Stock

Creating Vibrant New Communities where People Want to Live and Work

Galliard’s Regeneration Strategy

1. 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

Unlocking London’s Potential

Our Unique 10 Point Plan

Galliard Regeneration Delivered

Galliard have been Successfully Regenerating London for over 20 years

The 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

have been built, many new hotels have opened, new cafe’s, bars and

restaurants have arrived, and the London Eye opened.

These same apartments today sell for close to £500,000 and let for £435

per week.

“Since march 2009 – the post Lehman low point, prices have risen by 44% in South Bank compared to 37% in prime central London as a whole”

Source – Knight Frank

Regeneration Now – Greenwich Area

Greenwich 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, & Royal Greenwich Decent Homes Programme.

• Inward Investment ✓ - New Cruise Terminal, &Emirates Air Line

“Greenwich now voted one of world’s top 10 tourist attractions”

Frommers

Greenwich Regeneration Opportunities

Distillery Crescent

97 Apartments (1, 2, 3 &

4 bedrooms)

Summer 2013

New Capital Quay

636 Waterfront

Development Apartments

(1,2,&3 Bedrooms)

Spring 2013 & Summer 2014

Victoria Way

136 Apartments

(1,2,3 beds)

Autumn 2014

Victoria Way – Entry Level Opportunity

1 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

Distillery Crescent – A Yield Opportunity


£59,700 - £70,500

Gross Income pa: £13,800 - £15,600



New Capital Quay – Location, Location, Location


£82,500 - £97,500

Gross Income pa: £16,200 - £19,200



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 development

Galliard Homes Buy to Let Investor SeminarPresented by Daniel Dias and Claire Menton 30 th June – 1st July 2012

Contact Us

Telephone +44 (0) 207 620 1500

www.galliardhomes.com

Email: [email protected]

Email: [email protected]

facebook.com/galliardresidential

@Galliard_Daniel

Galliard Homes55 Greenwich High Road, Greenwich, London, SE10 8JL

http://www.ideasproject.com/servlet/JiveServlet/previewBody/8932-102-1-2601/facebook-logo.png

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

Investor Relations

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