4:Property

• 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 2008Chris Howard4: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 youve 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 youve got Increase your wealth by growing your returnsWe only have a short time, for a very substantial topic, so Id 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 Whats the best way to invest? 5. First of all, introductions 6. 4:you and 4:Property Projects Existing Investments/ Developments4 Property Projects 7. Who are you?Two questions, for a show of hands 1. UKHome only 1-5 properties 5+ properties 2. AbroadNo 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 Whats 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 Whats 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 - 2008UK Average House Prices 1970 - 2007 250,000 200,000 150,000 100,00050,0000 707376798285889194970003060919 19 19 19 19 19 19 19 19 19 20 20 20 20 12. UK House Prices : The long view : 1970 - 2008UK Average House Prices 1970 - 2007 250,000 200,000 150,000 100,00050,0000 707376798285889194970003060919 19 19 19 19 19 19 19 19 19 20 20 20 20 13. House Price Inflation 1984 - 2007Source : The ODPM (Table 521) has carried out acomparison between their statistics and those of theNationwide and Halifax. These are the figures forannual 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 2007The Times 13th March 2007 16. Property : always newsworthy, but not always informative The Times 29th October 2007The Times 13th March 2007 The Times 23rd August 03The 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 lets try 22. UK House Prices : The long view : 1970 - 2008UK Average House Prices 1970 - 2007250,000200,000150,000100,000 50,000 070 73 76 79 82 85 88 91 94 97 00 03 06 09 1919191919191919191920202020Is this just the changing exchange ratebetween houses and available credit? 23. Looking into the crystal ball but lets tryWhat 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 lets tryWhat 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 warybut, 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 lets tryWhat 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 warybut, Supply/ Demand will determine price level Affordability may determine the ownership/ rental mix For credit, experienced landlords will be favouredAverage 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 Whats the best way to invest? Summary 30. Active property markets follow active economies Which to choose depends uponYour 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 uponYour target returns How well you manage your portfolio 32. What is your target?Cumulative returnsInvesting at 5% p.a. 1.81.61.41.210.80.60.40.201 2 34 567 8 9 10At 5% per year, every year1,000 becomes 1,600 33. What is your target?Cumulative Returns Investing at a 30% per year return 16141210 8 6 4 2 0 1 2 345 6789 10 At 30% per year, every year1,000 becomes 14,000 34. What is your target? Comparison of Cumulative returns 30% p.a. or 5% p.a. 1614121086420 1 2 3456 789 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 Dont 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 MarketsDifferent types Emerging markets Active Markets Mature Markets Stagnant Markets 37. Looking ahead now, Economic Growth in 2008-9 38. Markets behave differently An important comparisonUK 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 comparisonUK 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 UKNew joiners to EU (eg Croatia, Romania)Economic Growth 0%6-7% p,a, (i.e. 25% in 4 years)Property Development HaltedActive, investment and jobsProperty Appreciation-10% p.a. +10 - 20% p.a. 41. Property MarketsDifferent 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 Whats the best way to invest? Summary 43. Active property markets follow active economies Which to choose depends uponYour 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 growthNew Europe will continue to grow 47. The areas to invest inThere is currently substantial inward investment EU - airports, cheap flights, motorways, banks and utilities Corporations Private Investment company and propertyIncreasing local incomes and buying power 48. The areas to invest inThere is currently substantial inward investment EU - airports, cheap flights, motorways, banks and utilities Corporations Private Investment company and propertyIncreasing local incomes and buying powerWhere to invest? Areas of economic growth Commercial Centres Regeneration Areas Tourist Areas 49. Foreign Direct Investment growing for 10 yearsForeign Direct Investmentduring the 3 years before; 2 years after and 6-8 years afterjoining the EU 1200 10008006004002000IrelandUKPortugal 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 Whats the best way to invest? Summary 51. Property MarketsDifferent types Emerging markets Active Markets Mature Markets Stagnant MarketsDifferent 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 InvestmentThis 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 wiselyValue of Propertythe Site Appreciation Property Completes100PP225PP1105 Green Construction PropertyWithLandPhasePlanning Ownership Permissionor BTL 56. Managing your property investment wiselyValue of Propertythe Site Appreciation Property Completes100PP225PP1105 Green Construction PropertyWithLandPhasePlanning Ownership Permissionor BTL 57. Managing your property investment wiselyValue of Propertythe Site Appreciation Property Completes100PP225PP1105 Green Construction PropertyWithLandPhasePlanning Ownership Permissionor BTL 58. Managing your property investment wiselyValue of Propertythe Site Appreciation Property Completes100PP225PP1105 Green Construction PropertyWithLandPhasePlanning Ownership Permissionor BTL 59. Managing your property investment wiselyValue of Propertythe Site Appreciation Property Completes100PP225 AddedPP1Value: 20105 Green Development PropertyWithLand(Construction) OwnershipPlanning Permission Phaseor BTL 60. Managing your property investment wiselyValue of Propertythe Site Appreciation Property Completes100Added Value :75 Costs :35 Profit:40 PP225 AddedPP1Value: 20105 Green Development PropertyWithLand(Construction) OwnershipPlanning Permission Phaseor BTL 61. Managing your property investment wiselyValue ofPropertythe SiteAppreciation Property Completes100A larger ReturnPP225PP1105 Green Development PropertyWithLand(Construction) OwnershipPlanning Permission Phaseor BTL 62. Managing your property investment wiselyValue ofPropertythe SiteAppreciation Property Completes100A larger ReturnPP225 But aPP1larger10 % return5 Green Development PropertyWithLand(Construction) OwnershipPlanning Permission Phaseor BTL 63. Managing your property investment wiselyValue ofPropertythe SiteAppreciation Property Completes100 BTL - A largerReturn returndepends totally on marketPP2appreciation25 But aPP1larger10 % return5 Green Development PropertyWithLand(Construction) OwnershipPlanning Permission Phaseor BTL 64. So the key questions for property investors, and for you are . Are you making the capital gain or income you wantfrom your investments? Are you using the market opportunities available toyou? Are you using the stages of the property cycle? Do you have the right balance, for you, of UK and othermore 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 Whats 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%PROFIT50%BUILD LAND 30% 68. New joiner to the EU residential development% UK% NJEU Sales Value Sales Value 20%PROFIT 35-40%PROFIT 50%BUILDBUILD 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%BUILDInvestment inBUILD 50%site, designpermissionLAND 30% 10 - 15%LAND 70. New joiner to the EU residential development% UK% NJEU Sales Value Sales Value 20%PROFIT 35-40% Marketing,PROFITsales andconstruction 50%BUILDInvestment inBUILD 50%site, designpermissionLAND 30% 10 - 15%LAND 71. New joiner to the EU residential developmentReturns% UK% NJEU Sales Value Sales Value 20%PROFIT 35-40% Marketing,PROFITsales andconstruction 50%BUILDInvestment inBUILD 50%site, designpermissionLAND 30% 10 - 15%LAND 72. New joiner to the EU residential development% UK% NJEU Sales Value Sales Value 20%PROFIT 35-40%PROFIT 50%BUILDBUILD 50%InvestmentLAND 30% 10 - 15%LAND 73. New joiner to the EU residential developmentReturns shared% UK% NJEU50 / 50 Sales Value Sales Value Investors first call 20%PROFITon profits, 35-40%PROFITthen4P + local Partner 50%BUILDBUILD 50% InvestmentLAND 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%BUILDBUILD 50% LAND 30% 10 - 15%LAND 76. Find the site Location, Starigrad Croatia amenities, appealUtilities,access,attractiveness 77. Design the detailed Scheme - on the outsideLika, Croatia 78. Design the detailed Scheme and on the inside 79. Market the Scheme to property buyers Mountain view, BorovetsRila View,Samarkov 80. 4:Croatia Each country is different, but similar segmentsIn Croatia, focusing on Coastal and ski tourist centres and Second homes near the capital, Zagreb Apartments at Cavtat, DubrovnikBut local knowledge is key 81. 4:MontenegroEach country is different, but withsimilar segments In Montenegro, focusing on the tourist centres, nearDubrovnik airport Boka Bay and Kotor, in abeautiful but small economy But local knowledge is key 82. 4:BulgariaEach country is different, but withsimilar segments In Bulgaria focusing on Tourist centres, and second homes near theCapital, Sofia But local knowledge is key 83. 4:Romania Each country is different, butwith similar segments In Romania focusing on Commercial Centres, and the Capital, Bucharest But local knowledge iskey 84. 4Property Investments - Current Projects SINGLE COUNTRY ReturnsInvestor Profit Land 1. Romania Land40% p.a. 96% in 2 yearsDevelopment 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 COUNTRYReturnsInvestor Profit Land 1. Romania Land 40% p.a. 96% in 2 yearsDevelopment 2. Cavtat, Croatia35% p.a. 82% in 2 years 3. Romania Land and Devt30% p.a. 120% in 3 yearsPORTFOLIO INVESTMENTS 4.Wealthbuilder int. paid 18% p.a. Income 54% over 3 years Landlords Investment20% p.a. C.Gain 73% over 3 years5. UK Tax Free - SIPPS20% p.a. 73% in 3 years5. 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 toProfit 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 yearsInclude 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 toProfit 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 yearsInclude 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 profitsA 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