BUSSINESS CONTEST

PRESENTER--- LILY CHAI

19 OCT 2013

THE LCBS PROJECT

THE WORLD IS GOING TO

CHANGE TOMORROW

THE PRESENT THE PRESENT

GLOBAL SITUATIONGLOBAL SITUATION

PRESENT SITUATIONPRESENT SITUATION

PRESENT SITUATION IN CHINA PRESENT SITUATION IN CHINA

Many factors influences the housing market in any country.Many factors influences the housing market in any country.

In this case, the stock market is inflating pricesIn this case, the stock market is inflating prices

PRESENT SITUATION IN USAPRESENT SITUATION IN USA

In the USA, the fiIn the USA, the financial crises was started by the housing bubblenancial crises was started by the housing bubble

In the UK, young people cannot afford to buy a house.In the UK, young people cannot afford to buy a house.

PRESENT SITUATION IN UKPRESENT SITUATION IN UK

PRESENT SITUATION IN INDIAPRESENT SITUATION IN INDIA

In India , the price growth has been tremendous .In India , the price growth has been tremendous .

What is most important for modern What is most important for modern people?people?

What is the largest problem in What is the largest problem in property markets?property markets?

Is there a bubble?Is there a bubble? Is this bubble going to burst?Is this bubble going to burst? What will be a feasible solution?What will be a feasible solution?

QUESTIONSQUESTIONS

NeedsNeeds One of the basic human needs is the need One of the basic human needs is the need

for shelter. Long long ago humans lived in for shelter. Long long ago humans lived in caves where they were they could protect caves where they were they could protect themselves from the elements. These days themselves from the elements. These days modern man is also yearning for his own modern man is also yearning for his own house. An English saying states: “Every house. An English saying states: “Every king has his castle”. king has his castle”.

NEEDSNEEDS

SolutionSolution Using the funds from existing home-Using the funds from existing home-

owners to help migrant workers to owners to help migrant workers to buy a house.buy a house.

I believe that solution that will be a I believe that solution that will be a win-win situation for both the win-win situation for both the youngsters and existing home-owners youngsters and existing home-owners that possess more than onethat possess more than one

dwelling.dwelling.

FEASABLE SOLUTIONFEASABLE SOLUTION

1. 1. Establish building Establish building

societysociety 2. Mission statement2. Mission statement

3. Convince present 3. Convince present owners to joinowners to join4. Marketing to migrant 4. Marketing to migrant workersworkers

PROCESSES INVOLVEDPROCESSES INVOLVED

5. Financial details5. Financial details

What is a building society?What is a building society? A building society is an organization that A building society is an organization that

lends money to people who want to buy a lends money to people who want to buy a house. house.

I am going to establish a building society I am going to establish a building society and call itand call it

Lily Chai Building Society. Lily Chai Building Society.

( LCBS for short )( LCBS for short )

ESTABLISH BUILDING SOCIETYESTABLISH BUILDING SOCIETY

Mission StatementMission Statement

To assist people to obtain their own home To assist people to obtain their own home without first having to collect a deposit.without first having to collect a deposit.

To build large quantities of low-cost To build large quantities of low-cost housing by using the funds from existing housing by using the funds from existing home-owners that are members of the home-owners that are members of the building society.building society.

MISSION STATEMENTMISSION STATEMENT

Present ownersPresent owners Advantages:Advantages: 1. They will immediately be sure that they 1. They will immediately be sure that they

have a buyer.have a buyer. 2. They will know how much profit they are 2. They will know how much profit they are

going to make.going to make. 3. They will have the opportunity to re-3. They will have the opportunity to re-

invest their profits.invest their profits. 4. They do not have to pay interest 4. They do not have to pay interest

on a large loan.on a large loan.

CONVINCE PRESENT OWNERSCONVINCE PRESENT OWNERS

Migrant workersMigrant workers Advantages:Advantages: 1. They do not have to go to family and 1. They do not have to go to family and

friends to beg for help in getting sufficient friends to beg for help in getting sufficient funds together for the deposit on a house.funds together for the deposit on a house.

2. The rent they pay is a permanent 2. The rent they pay is a permanent investment into the future. investment into the future.

3. The rent payments become a small 3. The rent payments become a small expense after a few years, as the payment expense after a few years, as the payment is fixed but their salaries are increasing is fixed but their salaries are increasing annually.annually.

MARKTEING TO MIGRANT WORKERSMARKTEING TO MIGRANT WORKERS

FINANCIAL DETAILSFINANCIAL DETAILS

House #1 65 sq/m 15 000 / sqmRent income

Purchase price 975,000 5000 / monthRent Income 1,200,000 60 000 / yearGross profit 225,000 1 200 000 / 20 yrsCommission to LCBS 25,000Profit to owner 200,000

ExampleExample

FINANCIAL DETAILSFINANCIAL DETAILS

House #2 45 sqm 10 000 / sqmRent income

Purchase price 450,000 3000 / monthRent Income 720,000 36 000 / yearGross profit 270,000 720 000 / 20 yrsCommission to LCBS 27,000Profit to owner 243,000

ExampleExample

FINANCIAL DETAILSFINANCIAL DETAILS

House #3&4 45 sqm Rent income

Purchase price 450,000 3000 / monthRent Income 720,000 36 000 / yearGross profit 270,000 720 000 / 20 yrsCommission to LCBS 27,000Profit to owner 243,000

This will have a

Snowball effect

ExampleExample

SNOWBALL EFFECTSNOWBALL EFFECT

HOUSE 2# 、 3# 、 4#

HOUSE 1# 975,000

20Y 120,0000

RE-INVEST

Long-term visionLong-term vision The long-term vision of LCBS is that this The long-term vision of LCBS is that this

solution will snowball. As more people join, solution will snowball. As more people join, more money will become available. LCBS more money will become available. LCBS will develop affordable housing estates and will develop affordable housing estates and complexes. The effect will be global as complexes. The effect will be global as LCBS will collaborate with any interested LCBS will collaborate with any interested country, and start branches wherever country, and start branches wherever there are people that are prepared to there are people that are prepared to partake in this venture.partake in this venture.

LONG-TERM VISIONLONG-TERM VISION

CONCLUSIONCONCLUSION I am sure that this project is going to I am sure that this project is going to

be a great success and eventually be a great success and eventually revolutionize the banking and real-revolutionize the banking and real-estate sectors all over the globe.estate sectors all over the globe.

CONCLUSIONCONCLUSION

Happly peopleHapply people

FinallyFinally

Finally

I would like to thank Eric and Jiahua for the opportunity to take part in this Business Competition. Eric is not only a great mentor, but also has become my friend. Good luck to the other competitors, and may the best lady win.

Thank You!Thank You!