Upload
brett-alegre-wood
View
251
Download
0
Embed Size (px)
Citation preview
Inspire. Learn. Update. Act
Aims for today• Introduction to YPC Property Group
• Where to find all the information you need
• Setting the Scene – Current Market Update
• 5 Pillars of Predicting the Market: 1. Fundamentals of property.2. The Current Market through my Property Trend Cycle3. The Ripple effect and its affect on your individual strategy4. Core & Alternate Strategies5. The risks and how to mitigate them.
• Ezytrac Property Group & the Right to Rent Act.
• 5 Step Research and Property Selection Process
• Confidence to take the next steps.
Inspire. Learn. Update. Act
YPC Group& Ezytrac Property Group• Team of over 50 – London, Lincoln and Singapore.
• Actively marketing into Middle East, Asia, Australia and the UK.
• Over £750 million of London & UK property sold.
• Over 2500 clients, 35% are overseas investors.
• Over 1100 properties under management.
• Full Service Portfolio Group.
Intr
od
uci
ng
YP
C
Inspire. Learn. Update. Act
How we help you?Effortlessly…• Research areas
• Negotiate deals
• Education
• Progression (Finance, Conveyance, Third Parties)
• Portfolio Management (One or 50+ properties)
• Let, Manage, & Resell
Intr
od
uci
ng
YP
C
Set & ForgetPhilosophy
• Helping you become an Investor not a Landlord
• Setting up your portfolio so you can forget about it on a day-to-day basis.
• You still have responsibility for it all.
• No hype or BS. • No guarantees you won’t have
problems, things won’t go wrong, just upfront & honest.
Intr
od
uci
ng
YP
C
Inspire. Learn. Update. Act
Where to findthe information you need
• Our Content Creation Strategy
• Investors Academy Homepage
• Dashboard 2
Th
e R
igh
t In
form
atio
n
Inspire. Learn. Update. Act
New Content Strategy
• Means we are adding a massive
amount of relevant free content
• Website
• Social (Facebook, Linkedin, Twitter)
• Books incl. Kindle
• Podcast
• Videos
Th
e R
igh
t In
form
atio
n
Research
Property
News
Education
AboutBrettAlegre-Wood
• Over 20 years experience• Award winning writer, speaker, TV and
radio appearances • Best selling book ‘The 3+1 Plan’ and
20+ books on property• Entrepreneur and owner of Ezytrac,
YPC Group, Castlereach, Bastien Jack Background in success coaching, marketing consulting, property.
PONZI
PONZI
PONZINIGERIA LETTERS
AEROPLANE GAMECOMMISION
SCAM
RECRUIT
FAKE
persuade
CHEAT
CHEAT
CHEAT
ILLEGALFAKE
ILLEGAL
SCAM
A
SCAM
GET-RICH
DECEPTION
FRAUDlossSCHEME
FAKEFRAUDULENT
PYRAMID
by Brett Alegre-Wood
Winner of The People's Book Prize for Non-Fiction 2010
and bestselling author of The 3+1 Plan
How to Avoid Fraud,
a Ponzi Scheme, Scam or
Bad Business Model
The 12 Warning Signs That Will Help You Avoid Being A Victim
Property
IT’S ALL A GAME
Rule #1 - Know the rules thatapply to your chosen strategy
Rule #2 – Mitigate the risks that your strategy exposes you to.
Rule #3 – Take Action
GovernmentChanges• Helping Top End of market decimated
by recent changes and market cycle,
bottom end still buoyant, prices rising.
• Mortgage Criteria (Affordability) is the
issue now.
• Taxation - Minimised impact felt over
the next 5 years
Intr
od
uci
ng
YP
C
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Consider buyingin a company• Consider cost of running a company vs no cost of personal name
• Capital Gains Tax 18%/28% vs Corporation Tax 20% or Both
• Inheritance Tax - Change of Shareholders
• Consider an Limited Liability Partnership (LLP)
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Key Questions to ask before buyingin a company1. Are you a higher rate tax payer?2. Are you likely to sell your buy-to-let properties in the future to fund your lifestyle?3. Do you need the profits from the buy-to-let properties to fund your current lifestyle?4. Do you intend to pass the buy-to-let properties to your children?5. Are you likely to buy and sell properties regularly?6. Will the profits from the buy-to-let properties replace your current income on retirement?
Ask about out LLP Structure which is replacing a company structure.
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Supply of property
• Land Prices (London) too expensive
• Planning problems
• Lack of labour available to build
• Conflict between Government and Local Councils
• Watch out for oversupply issue (in about 5 years)
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Are internationals still buying?
• London has became the World’s 'flight-to-safety' city
much like gold. So expect that prices will hold if turmoil
ensues.
• Major cities of UK have become the secondary market for
international buyers.
• No other real choice for them at the moment.
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Everyone’s saying “What else can we to invest in?”• Wine
• Tech stocks
• IPO’s
• Stock Market
• Pensions??? Really…
• ISAs... You are joking aren’t you.
• Crowdfunding
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Deal Staking Consideration
• BTL - Loan to Value - 60% to 75%
• Mortgage Cost Averaging - 6%
• Careful with specialised assets
• Be prepared to change broker, depending on their broker
network.
• Apply for your mortgage early.
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
China
• Slowing down is not crashing
• They are borrowing to keep growth at expectations
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Brexit – Does it matter?
• We are the 5th largest Country in the world, we can survive,
despite the misleading BS.
• If it does happen, the initial shock will drop prices but then
everyone will realise we are fine and prices will go back up.
• There’s no doubt though, the initial period will create uncertainty
and that will affect house prices & economy.
• I think BREXIT is a good thing, large corporates have not really
served the populations, only themselves.
Se
ttin
g t
he
Sce
ne
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
GDP – UK is the 5th largest Economy?S
ett
ing
th
e S
cen
e
5 Pillars of Predicting the Market
Pillar #1 FundamentalsPillar #2 Property Trend CyclePillar #3 Ripple EffectPillar #4 Core & Alternate StrategiesPillar #5 Mitigating Risk
Pro
pe
rty
Fu
nd
ame
nta
ls
Property Fundamentals
Read it this way.
Shops School TransportLinks
MajorEmployment
MajorInvestment
Property Fundamentals
Implement it this way.
ShopsSchoolTransportLinks
MajorEmployment
MajorInvestment
Lowest impactHouse PricesHighest impact
Pro
pe
rty
Fu
nd
ame
nta
ls
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Regeneration
• Regeneration, Regeneration, Regeneration – Massive
change in fundamentals causes prices to increase as they
area become more desirable.
• Ideal to learn Developers with good incremental price
increase strategy
• Large scale regeneration, get in early, ride it up and, flip it
or complete it
Pro
pe
rty
Fu
nd
ame
nta
ls
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Se
ttin
g t
he
Sce
ne
Regeneration Case Study Wembley (Quintain)
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Se
ttin
g t
he
Sce
ne
Regeneration Case Study Wembley (Quintain)
View from our office (June 2016)
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Regeneration Case Study Early Results
Intr
od
uci
ng
YP
C
Networking TimeYou have 15 mins to network with at least 3 people
The Market Education Finances Fear Nothing
Question 1: What’s stopping you from adding one property to your portfolio this year?
• Most experts are wrong most of the time.
• All of my predictions can fall under the
‘Expert’ category.
• If you want to read about experts read
my book
How to Predict House Prices
Why your Strategy should meet the Current Market
Pro
pe
rty
Tre
nd
Cy
cle
Strategy –Reset Cash Flow. Build up Equity Buffer through lower Loan to values 60-75% max.
Strategy –Careful/Avoid Off Plan, Long-term investments and Value Adds only.
Type – Buy in the suburbs.
Type - Buy anything with Fundamentals
Strategy - Buy, Remortgage, Buy, Remortgage, Buy.
Type – Buy City Centres and best areas. Long-term Off Plan later in phase.
Type – Buy with Cash Flow considerations.
A B C D
Strategy -Ridiculous Offer.
A
Strategy - Buy, Remortgage, Buy, Remortgage, Buy.
10 yearssince last recession
• Its been 10 years since the downturn which means we are due a downturn/slowdown.
• London prices have increased, however outside London has skipped a cycle so are prices really going to drop further? Its unlikely.
Brett’s Beware-Y of these Investments
• USA Property – good market, being missold, if it was so good why are prices so cheap. Market slowing now.
• Student Lets – being missold, no exit, limited capital growth, management dependent, what happens when its old.
• Hotel Rooms – Poor history or performance, totally dependent on management, what really happens after the rent guarantee period, Cannot sell.
• Commercial Property – All about covenant.
• Land Banking – Just don’t even touch this. Sharks and Conmen. I have never ever seen a deal that actually produced a profit… ever…
All about Core Strategy
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Core Strategy• Residential property in your Home Country is your
Core Strategy
• Maximum 3 Strategies and only after you have mastered the Core Strategy.
• Diversity is misunderstood concept
• So if you live in UK then UK residential is your Core Strategy. Others are Alternate Strategy
• All about the rules of the game that apply to that particular strategy.
Se
ttin
g t
he
Sce
ne
5-S
tep
Pro
cess
• Predict Price Growth based on fundamentals
• Adjust Individual Strategy
Ripple EffectPentagon
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Mitigating the Risks
• Despite the risks you have to keep moving forward.
• A plan to mitigate is the most important thing for restful nights sleeping and avoiding problems.
• I run two scenarios:
1. If I lost my job for 90 days and got a new one at 70%.
2. If prices dropped 30%.
Mit
igat
ing
Ris
k
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Mortgages
• London rental coverage
• UK Price increases
• Getting your income & debt in order
Mit
igat
ing
Ris
k
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Off-Plan Mortgage Risk• If prices drop, you may be required to put in more of a
deposit. Run the numbers.
• £300,000 property 30% deposit or 90k deposit. Price drops 10% new value is £270,000 x 70% Max LTV or £189,000 or new Deposit of £111,000.
• Now add if they change criteria to Max LTV of 60%... New Deposit is £138,000 or another £48,000.
• Don’t load up too many off plans that complete at the same time. Spread them out or be prepared to sell.
Mit
igat
ing
Ris
k
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Interest Rateswill increase at some point
Mit
igat
ing
Ris
k
0
0.5
1
1.5
2
2.5
3
3.5
Slower Growth is the new growth,so change in fundamentals isthe real opportunity, not just sit and wait for an area.
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Developer Risks
• Going Bust
• Poor Build Quality
Mit
igat
ing
Ris
k
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Opportunity Cost outweighs the cost of selling then buyingThink Long term because the transaction costs are up,
BUT think selling to access equity to continue to build.
You don’t own a property, its just part of your portfolio
until you need the money to buy another.
Mit
igat
ing
Ris
k
Inspire. Learn. Update. Act
Ezytrac Property Group
Ezy
trac
and
Rig
ht
to R
en
t A
ct
• Established in 2008, management centre based in
Lincoln.
• 20 staff – all either ARLA qualified or working towards
the qualification.
• Nearly 1,200 properties under management.
• National coverage with local presence.
Inspire. Learn. Update. Act
Ezytrac Property Group Growth
Ezy
trac
and
Rig
ht
to R
en
t A
ct
• Cloud Based Software, so
you can login
• Additional 12 local lettings
offices across London & UK.
Inspire. Learn. Update. Act
Ezytrac Property GroupE
zytr
acan
d R
igh
t to
Re
nt
Act
• Taking the stress out of managing your properties.• One Point of Call - Dedicated senior property manager
for all your properties.• 24 hour property maintenance service.• Pay your Bills - Ground rents, service charges, council
tax bills and utility bills – all managed in-house.• Financials - Consolidated statements for end of year
accountancy returns.• Pay landlords rent within 24 hours of receipt into our
bank.
Inspire. Learn. Update. Act
Right to Rent immigration checks forlandlords,agentsandsubletting
Ezy
trac
and
Rig
ht
to R
en
t A
ct
• From 1st April 2016, all landlords of private rental accommodation required to carry out Right to Rent checks for new tenancy agreements to determine whether occupiers have the right to live in the UK legally.
• Fine of up to £3,000 per occupier if you rent your property to someone who isn’t allowed to stay in the UK and you can’t show that you checked their Right to Rent.
Inspire. Learn. Update. Act
Ezytrac Global ReferenceE
zytr
acan
d R
igh
t to
Re
nt
Act
• We take away the stress from Landlords by confirming that a Tenant has the right to rent in the UK
• We protect against any penalty that may be applied by the Home Office and guarantee to pay the fine if the tenant has completed our Global reference process and met the criteria
• What it includes: • ID Validation• Follow-up checks for time-limited certification• Home office checks• Residency confirmation• Financial sanctions check• Electoral role confirmation• Politically Exposed Persons check
Inspire. Learn. Update. Act
Landlords rent guaranteeE
zytr
acan
d R
igh
t to
Re
nt
Act
• Full rent protection for the total monthly rent
• Rent payable until vacant possession is obtained
• Legal costs to obtain possession of the property if tenant fails to
pay
• Total claims limit of £50,000
• Covers breaches of the tenancy agreement by the tenant
• Court attendance included as part of the service
Networking TimeYou have 15 mins to network with at least 3 people
Question 2: Assuming your current situation, if you were to buy a property, Where would it be? And Why?
London Zone1 or 2
London Zone3, 4, or 5
CommuterTowns
MajorCities
MajorTowns
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Our New Framework 5-Step Research and Property Selection Process
5-S
tep
Pro
cess
Hotspots Algorithm
5-S
tep
Pro
cess
• 324 Postcode Districts researched across 108 data points. Each area weighted via Algorithm.
• Over 150 areas that are suitable for investment
Area Investment Guides
5-S
tep
Pro
cess
• 150+ Areas• Covers Area Fundamentals• Great Info• But you still need to get more details
to invest
Download your chosen areas at: www.ypc-group.com/guides
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Follow The Ripple Effect5
-Ste
p P
roce
ss
• Buy in the Zone you can afford to stretch to.
• Then maybe move 1 or 2 Areas before getting back to the original area.
• Feel free to diversify in the areas.
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
It’s never about Price…5
-Ste
p P
roce
ss
• Price is a reflection of the market.
• Value is a reflection of what the market is willing to pay.
• Affordability is about It’s always about fundamentals
• Good fundamentals insulate against price decreases
• Great, best fundamentals but short term growth will be limited.
• Look for major regeneration areas –Earls Court, Elephant and Castle.
LondonZone 1 & 2
Current MarketLong Term – Buy, still best fundamentals.Short Term – Slow steady price may drop short term.
• Wembley
• East London
• Greenwich Peninsula
• Ealing (Southall)
• Colindale
LondonZone 3, 4 & 5
Current MarketLong Term – Buy in places where ripple effect hasn’t hit yet, closer to London the better, Regeneration is massive opportunity.Short Term – Still buy but watch for overpricing, ideal London option
• Ripe for investment now!
• Inner 30mins
• Outer 30mins
• Committed <90mins
LondonCommuterTowns
Current MarketLong Term – Buy closer to London the better, watch for oversupply. Regeneration is massive opportunity.Short Term – Definite buy, market moving now.
• With Universities
• Universities take out lower value properties and prop up the market
MajorCities
Current MarketLong Term – Buy if that’s what you can afford. Short Term – Consider buying larger cities, more central at this stage.
• >100,000 Population
• Remember it’s a ripple so no guarantees that prices will go up in all towns.
• Look for best fundamentals within towns
• Look for big house price increases, get ahead of the curve.
MajorTowns
Current MarketLong Term – If you must, Buy. If you can afford go to cities. Buy regeneration for quicker returns. Short Term – Save up for the cities.
5-S
tep
Pro
cess
• Over 200 Developers & Agents
• Match Developers with Ripple Effect & Regeneration and then choose Developments.
Developers/ Developments
Area Fundamentals (and Pics)+
Development Fundamentals (and Pics)+
Comparables+
Contacts+
Glossy fun and interesting photos
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Property Available5
-Ste
p P
roce
ss
• Over £750 million London
and UK property sold
• Over 200 Developers &
Agents across the UK
• Wembley Case Study
www.ypc-group.com/academy-blog
#asimpleidea
Inspire. Learn. Update. Act
Developer Partners
5-S
tep
Pro
cess
• Why we have Partners (over 200 agents & Developers)
• Examples are Berkeley Homes, Quintain, Hamptons,
JLL, Colliers, and more
• Commuter Towns is a real focus now.
It’s all a GameJust make sureYou know the Rules
Want to Personalise your plan?
Book yourComplimentary 2-hourPortfolio Strategy Meeting
Speak to our team on
Phone +44 207 812 1255or email [email protected]