grant management uk property investment a carbon neutral company
TRANSCRIPT
Grant Management
UK Property Investment
A carbon neutral company
About us
Founded 1997
125 people in 12 cities
ARLA members
Investors in people
HBOS now own 20%
Plc standards
What we do
One stop solution• Source• Renovate• Furnish• Manage
Traditional properties in city centres(we do not buy new build)
What we do
We create safe, affordable homes to rent
Happy clients refer us on
“Our business has grown…
through happy clients telling their friends”
We aim to ‘under promise’ and ‘over deliver’.
Why 50% of Global warming comes from property Major issue for people under 30 What we do GM is carbon neutral as a business On our properties (offices and properties)
We reduce emissions at renovation stage (saves 30%) We help tenants reduce emissions (saves 20%) We plant a tree for every property let
Benefits Reduced energy costs / heating bills Improves rent levels and occupancy
Our Commitment to the Environment
The Market
Property Market … in university cities
University cities
– Large and growing rental market– Secure income (Joint leases/ guarantors)
– Universities “recession proof”
• City centre locations
• Better rent and yields
• No longer built!
0%
10%
20%
30%
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50%
Percentage of flats available
1 2 3 4 5
No of Bedrooms
Flats avail (Edin)£ Ave monthly rent (all GM flats)
800
850
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950
1000
1050
1100
1150
2002 2003 2004
The market – why larger traditional property
The market - Property v shares
• Property as an investment has grown in popularity– Banks have lent some £120Bn since 1999.
• Shares have become increasingly volatile
• Pensions no longer guaranteed
Where we buy
We target large cities with yields over 6%
How we help clients invest
1. Buying well … location, price, experience!
2. Renovations … getting things done on time, on budget
3. Management … maximising occupancy
Our Focus
Our aim is that happy clients refer us on!
How we buy a property
We assess all properties every week
• Rent & price - controlled by Gm model
• Surveyor confirms value• Lawyer checks legals
Adding Value
Renovations – Adding value
1. Condition … bad is good (less competition, all new, more value)
2. Layout … more rooms (more rent, more value)
Bed 5
Bed 2Bed 1
•Rents rise
•Values rise (condition & kitchen relocation)
•Maintenance costs reduced
V
Kitchen
Renovations – Adding value
The Product
Property Management
“Back in the mid 1990’s we could not find a management
company we liked or trusted…
so we started our own”
As investors ourselves, we instinctively know what’s important
Management – what makes us different
One fee Investors, landlords, tenants.
95% Occupancy * No 1 issue for landlords Tenant loyalty scheme Out of hours viewings We pre-let flats
Rent Payment If tenants pay late, we still pay landlords on 15th **
Add value e.g. video inventories, Co2 neutral, 24hr emergency repairs, property e-tours
“ As investors ourselves, we took all the things that annoyed us … and did the opposite”
* From year 2** 1st month only)
We invest in people, training and systems
Systems
• New phone system records all calls (Quality and training)
• New £300k property system due early 2008
People
• We invest heavily in training (ARLA, service, sales)
• One point of contact … investment and account manager
Behind the scenes we take care of everything from accounts, marketing, safety, compliance, repairs and inspections
Finance
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Assumes average capital appreciation of 10% pa
Finance
Investment £30kSetup £15kBorrowing £120K
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Finance
Performance – how to maximise
Bank gearing gives tax and performance benefits
• Interest rates are still low
• Gross yields are 6% min
• Rental demand rising.
Base rates
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A 5% rise in property values means a 25% return, if geared to 80% LTV
Risks
Property prices could fall
Occupancy cannot be guaranteed
Interest rates could rise
… have a fallback. Do not invest 100%
“Grant Management has been very efficient. Everything they promised has been done.
Purchase price and refurbishment prices quoted were achieved, as was expected rental price and occupation date”
Peter K, Investor.
What our clients say
Summary
We aim to give a complete “solution”There are no up front fees
We only recommend flats we would buy ourselves
If we do a good job, please refer us on.
“a one stop shop for investors and landlords”
“GM never pays more for a property than it is worth”
“effective”
FINANCIAL TIMES
What the papers say
Entrepreneur of the year
Awards and Accreditations
Professional servicesCompany of the year
The next steps
• Brief. We need to understand your likes and dislikes.
• Finance. It helps to have this set up in advance*
• Purchase. You decide which property is right for you.
* GM can give names of good contacts (… we receive no fee)
FAQ
Tax Find a good tax accountant.
How long to renovate 8 weeks max. Furnishing costs Allow £7-10k on furniture.
How fast will it rent 7/10 flat are pre let.
Finance 80 - 85% on end value (purchase plus renovations).
Fees Nothing up front. 1.5% + vat if successful. 15% + VAT of monthly rental income paid on the 15th each
month.
How can you help? Please refer us to others