current market conditions

www.internationalpropertysolutions.com

Current Market Conditions

• Prices have softened for the last year and have now picked up– First 6 months

• Nationwide - London highest growth rate in UK– Primary – more than 7% growth– Secondary – very strong– Yields = 5.5% Victorian and 4.5% growth

annually– Ex local – 6.6%

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy

5. Current conditions

6. Examples

7. Financing

8. Conclusions


Current Market Conditions•If such trends continue,

•The average cost of a house in England will break through the £300,000 mark in the next five years, research suggests. •Prices will near the half a million mark in London by 2012, from the current average of £318,864. •Even in regions traditionally regarded as cheaper - such as the North West and Yorkshire - average prices will break through the £200,000 level.

•National Housing Federation (NHF)

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


What will happen next?

“I never have the faintest idea what the stock market is going to do in the next 6 months, or the next year, or two.”

Warren Buffet

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Missed the boat or perfect timing?

• Compared with other asset classes, London property is still an attractive investment

• Perfect timing is something that can only be know with hindsight

• Staying out can be as costly as going in

• Done properly and seen over the long term it should be a low risk investment

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Foreign Currency Hedge1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions

Comparison of buying in the UK versus South Africa

Year Exchange Rate

Avg SA Price Growth Avg UK Price

Growth Avg UK Price

Growth UK Money

Growth

1988 £100,000

1995 R 5.67 R 165,000 £29,101 £29,101

2006 R 13.28 R 700,000 424% £52,711 181% £279,418 279% £81,312

Profit / Growth = £23,610 £52,212 221%


Examples1. Vogue1 - Zone 1 – Algate East – 10

minute walk to Liverpool Street and in the hub of the financial district• Priced - £349 950 - £700 000

2. Completion – May to August 2008 Belmont Park – Zone 2 – Tulse Hill• Priced £290 000 for 2 bedroom

apartment3. Slough Central – Slough – 20

minutes from Paddington and central London• Priced £172 255 - £250 000

4. Fractional Ownership -Chiswell Street, The City, London• £110,250 to £125,500 for a quarter

share in hotel room

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Vogue11. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Vogue1Development•44 unit development over 7 floors•Yield – 5% to 5.3%•Price per sqm – £680/sq ft or £7,200/m2•Very high quality of internal finish – include wood, chrome and porcelain•9 - 12 month lead time allowing good capital growth•Positioned in the heart of London’s ‘Rag’ district•Affordable Housing separate to the development with different entry points•Video entry to flats•Urban myth kitchens and fitted wardrobes with S/S Siemens appliances, stone composite kitchen tops, under unit lighting•Ceramic tiles to kitchen and bathroom. Underfloor heating and heated towel rails•Communal roof garden

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Vogue1Area•Easy access to the city, Liverpool Street is in walking distance•Services by District and Hammersmith and City underground lines•Brick lane in walking distance – boasting diverse choice of Asian restaurants•Abundance of pubs, galleries and other restaurants•Old Street in walking distance with its new gastro strip•St Katherine’s Dock and Butlers Wharf are also in walking distance and are popular riverside entertainment areas

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Vogue11. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Vogue1Developer•Established for 30 years, build 600 units a year•Privately owned company with turnover in excess of £205million/yr•High quality of finish•Cutting edge design teams, interior decorators and architects employed•Renowned for attention to detail and top customer care

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Belmont Park1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Belmont ParkDevelopement•6 Superb apartments in London•Market price £290,000•Monthly rentals up to £1200•Rental yield 5.5%•Landscaped communal gardens•Video entry system•Completion September 2007

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Belmont ParkArea•Situated within easy reach of the funky shops, bars and restaurants of Brixton as well as the beautiful, rolling open spaces of Brockwell Park.•Local transport links include Tulse Hill (British Rail) and Brixton Underground Station (Victoria Line) for connections into and out of central London.Developer•Trojan Asset Management

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Belmont Park1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Slough Central1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Slough CentralDevelopment•2 Blocks – 8 stories and 15 stories•1 & 2 bedroom apartments – 229 units•Section 106 or affordable housing is offsite•24 x 1 bedroom apartments – huge demand for 1 bedroom units•Completion – Mid 2009•Less than 1 min from station•Trademark – floor to ceiling windows•Pristine Interiors

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Slough CentralArea•Easy access to the city, 20 min from Paddington•Huge regeneration program•Terminal 5 – 30 000 jobs is in close proximity down the M4

Developer•London Green and My City Pads – currently got about 30 projects on the go.

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Slough Central1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Fractional•Chiswell Street, The City, London•£110 000 - £125 000 per fraction•Own one quarter•6 – 8% return (45% over 8%)•13 days a year•70% gearing

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Financing & Procedures

1. 3000 different borrowing options2. Asset based lenders3. Financing Options

• 70% to 85% LTV• Interest only

4. Offshore structures

5. See Example brochures for costs and cost breakdown

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions


Conclusions1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions "ver van jou goed, na aan jou skade"



2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions

Partners:• International Property Solutions

• Offices• Cape Town• JHB• Durban• London

• 500+ units in the past 4 years• Specialise in foreign investment

and especially off plan developments



2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions

Partners:1. Conveyancing (Legals)

• Breytenbachs2. Structures, Foreign Exchange

Control, Money Transfers• Lionel Levin & Associates & Rosebank

(UK) Limited)3. Mortgage Broker

• Worldwide Financial Solutions4. Management

• Bespoke – best of breed


Thank youHeath Adamson Sean WalshBrad AllenScott PickenLondon No = 09 44 208 971 3245SA No = 072 575 8719JHB Office = 011 4477189Cape Office = 021 424 3353Email: [email protected]

1. Introduction

2. UK Property

3. Fundamentals

4. Strategy


6. Examples

7. Financing

8. Conclusions

current market conditions

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