Grow your property portfolio

Transcription

1 Grow your property portfolio A Unique investment opportunity. Grow your property portfolio by benefiting from our property sourcing and funding. Tel: Fax: investors@lifepropertygroup.com

2 Contents About Life Property Investors: Page 2 Our Offer: Page 3 The UK Property Market: Page 3 The UK Property Market Today: Page 4 Supporting Your Investment : Page 5 Minimising Your Investment Risk: Page 5 How Our Process Works: Page 6 Building Your Property Portfolio: Page 6 Portfolio Example: Page 7 Equity Growth Scenario: Page 7 Why Life Property Investors: Page 8 Contact Us: Page 8 About Life Property Investors Experience We have vast experience in property investment and understand the difficulties in deciding if certain properties are right for your portfolio based on predicted returns. Accuracy We understand that although professionals in the industry have predicted growth levels of 30 % over the next 5 years, we also know that it is important to base predictions on realistic rental yields and projected resale costs. Our estimated returns take all of these factors into account to give you the most accurate predictions possible. Analysis All properties purchased are valued by an independent valuations expert and a full analysis of the rental predictions are taken into account. Diversity We also advise you of the exit strategy which is the resale value of the property at the end of the chosen term. We also diversify your portfolio by offering geographical spread and property type. Availability Life Property Investors will be available to discuss any questions, problems or concerns that you may have at all stages of your investment including before and after you invest. 2

3 Our Offer A one stop complete process to take the headache out of building up your property investments. The sourcing solution for your property portfolio Recent developments in the UK Property Market From early 2007 many high street lenders began competing for investors Buy To Let mortgage business at small margins above wholesale money market rates or Bank of England Base rate. Lenders also started giving investors the opportunity to buy property at below market value and then remortgage the properties at RICS market value the same day to generate significant cash back payments. Those days and most of those lenders are now gone and many investors have been left holding a Buy To Let property portfolio. Many are having difficulty refinancing at this point in time due to a range of issues including: Increase in property repossessions Developer liquidations hitting new levels Record high by high street bank Buy to Let lending rate margins Increase in residential mortgages with continuing demand from lenders for minimum 15% deposits Buy to let products on the decline making investment difficult Boom in auction business but no competitive deals available All time low Bank of England Base Rate at 0.5% 3

4 The UK Property Market Today The UK property market has experienced a fall in recent times, in particular over the last two and a half years, with prices falling by as much as 30%. It is now more difficult to purchase a property in the usual way, ie borrowing from a lender. The economic crisis has impacted on lending and, in particular, on over-lending on investment property as the banks continue to be over cautious, with no evident desire to bolster the Buy to Let market. As a result, many investors are finding borrowing against their deposits very difficult due to the unwillingness by high street lenders to support Buy To Let investments. Current Buy to Let mortgages for new build properties are available for houses at around 75% to 80% loan to value ration, dropping to approximately 65% on flats, leaving investors to make up the shortfall. For many this is not possible as their cash is tied up in equity. However there is some light at the end of the tunnel for property investors. Typically, property prices in UK tend to follow an 18 year cycle of rise and fall. In addition, economic trends indicate that each price crash is traditionally followed by a period of growth. There still remains the opportunity to buy property at discounted prices due to the rise in repossession and the drop in sales. Based on this theory, as we emerge from the current recession UK property prices should start to increase again, generating opportunities for investment and profit. So now is the time for the clever investors to review their investment portfolio and look at growing their property acquisitions, particularly in the UK residential market which is more predictable than commercial and overseas property, so a safer investment. 4

5 Supporting Your Investment Life Property Investors can source heavily discounted property deals for investors with access to finance who sign up with us. These properties offer equity profit immediately, enabling your investment portfolio to grow and develop. As property prices are currently at the lowest to which they are likely to fall, there are many deals still around from between 10%-20% below market value. If you wait until the market improves, there will be fewer discounts available. And when the market begins to pick up, there will be even greater competition for good deals. So now is the time to review your property portfolio and to invest in your future, with our help and support. Minimising Your Investment Risk To minimise your investment risk we recommend that you follow three key steps: 1) You should always buy below market value (ie the current RICS valuation) and buy for the long term (between 5 and 10 years) 2) You should only buy property that gives positive cash flow 3) You should buy in an area of high rental demand In the long term, your property should go up in value whilst providing you with a steady cash flow and profit. If you are still unsure whether property investment is for you, then you should consider the following points: Do you want to make the most out of a fantastic buying opportunity? Are you regularly sourcing investment deals? Can you finance deals right now? Can you buy with little money down? If you are not sure about any of these questions, then please give us a call to discuss your options. 5

6 How Our Process Works Investing in property with Life Property Investors is a simple, straightforward way to build your investment portfolio and secure your financial future. We will: Identify ideal investments (new build and second hand properties) from a range of sources to support your investment criteria and budget. Obtain an independent RICS valuation on every property that we propose to you. Negotiate on the properties and secure them for you at a deep discount from their current market value. Secure for you the right buy to let mortgages or commercial funding with little or no money down though a team of independent solicitors and brokers. Ensure that each property is cash flow positive after paying the mortgage. Help you find tenants for the property. Offer an end-to-end, seamless solutions for a fully packaged property investment. Put you in touch with a tax advisor if you wish to run your portfolio tax efficiently. Building Your Property Portfolio Life Property Investors offers the opportunity for investors to expand their portfolio of property through a structured and pro-active approach designed to contribute towards your overall wealth. We provide exceptional service, exclusive deals and a way to invest in UK residential property using the exclusive commercial funding routes from which you can benefit directly. There are no monthly charges and you invest when you choose. You are under no obligation to buy any of the properties we offer. Life Property Investors offers a complete property investment solution. You can select from any of the properties we have available, you simply pay a reservation fee, we arrange financing, valuation and solicitors. Our aim is to help you build your investment portfolio with little of your own money or capital. By buying below market value means you benefit from instant Day 1 equity, for example: On a property valued at 100,000 members would have 10,000-15,000 in Day 1 equity if we had negotiated a 10% - 15% discount. 6

7 Portfolio Example Take for example the following property portfolio: Ten properties worth 1,000,000 (assume 100,000 per property). Assume over a period of time eg 36 months, we secure you ten properties with a market value of 1,000,000. With a conservative discount of 15%, this means you would have made 150,000 in Day 1 equity. Apply a realistic figure of 8.5% growth (the average between the government predicted figure of 5.5% and the actual figure of the last 30 years ie 11.74%), after 3 years of growth you would have over 372,289 of equity in your portfolio, net after fees. Life Property Investors can source and secure for you an average of 10 distressed properties at 15% below their market value which creates instant equity of around 150,000. Because we have a hands on service, we can help you tenant them and ensure that they are cash flow positive after paying the mortgage. The aim is to build you equity from a small initial investment. We source the properties, negotiate with developers, banks and liquidators on your behalf, secure the mortgages and find tenants, where possible with little or no money down,. Equity Growth Over a 3 and 8 Year Period The two charts below show how your equity could grow based on three growth rate projections. Predicted Growth Rates Year 1 Year 2 Year 3 Gross Profit Government Predicted 5.5% 1,055,000 1,113,025 1,174, ,241 Actual (last 30 years) 11.74% 1,117,400 1,248,582 1,395, ,166 Average 8.5% 1,085,000 1,177,225 1,277, ,289 Predicted Growth Rates Year 4 Year 5 Year 6 Year 7 Year 8 Gross Profit Government Predicted 5.5% 1,238,824 1,306,959 1,378,842 1,454,678 1,534, ,685 Actual (last 30 years) 11.74% 1,558,958 1,741,980 1,946,488 2,175,006 2,430,352 1,580,352 Average 8.5% 1,385,858 1,503,656 1,631,467 1,770,141 1,920,603 1,070,603 7

8 Why Life Property Investors? We source properties for you We offer properties that are financially viable We commission independent solicitors and brokers We guarantee a swift completion We can provide properties that already tenanted or we help find tenants We can complete on approximately 5 properties in months on your behalf We can manage your tenants and portfolio, taking all the headaches of property investments away Contact Us If you want Life Property Investors help you build your equity, get in touch by: Phone: Fax: investors@lifepropertygroup.com Or visit our website to find out more about our property investment service: Life Property Investors Castell Close Swansea Enterprise Park Swansea SA7 9FH Tel: Fax: investors@lifepropertygroup.com 8