london & uk property seminars - is property investment under siege?

Chris Bartlett John Russell Nick Rossington Brett Alegre-Wood

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.

Our Vision A Simple Idea…

Your Home+

3 Properties=

Change your World


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.

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How we help you?Effortlessly…• Research areas

• Negotiate deals

• Education

• Progression (Finance, Conveyance, Third Parties)

• Portfolio Management (One or 50+ properties)

• Let, Manage, & Resell

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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.

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Where to findthe informationyou need

Presenter : John Russell


Where to findthe information you need

• Our Content Creation Strategy

• Investors Academy Homepage

• Dashboard 2

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New Content Strategy

• Means we are adding a massive

amount of relevant free content

• Website

• Social (Facebook, Linkedin, Twitter)

• Books incl. Kindle

• Podcast

• Videos

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Research

Property

News

Education

HomepageInvestor Academy

www.ypc-group.com/academy

Setting the Scene -The CurrentMarket

Presenter : Brett Alegre-Wood

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

Just Make Sure You Know the Rules

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

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Taxation

www.ypc-group.com/tax

www.ypc-group.com/academy-blog

#asimpleidea


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)

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#asimpleidea


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.

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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)

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#asimpleidea


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.

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#asimpleidea


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

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#asimpleidea


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.

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#asimpleidea


China

• Slowing down is not crashing

• They are borrowing to keep growth at expectations

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#asimpleidea


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.

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#asimpleidea


GDP – UK is the 5th largest Economy?S

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IT’S ALL A GAME


5 Pillars of Predicting the Market

Pillar #1 FundamentalsPillar #2 Property Trend CyclePillar #3 Ripple EffectPillar #4 Core & Alternate StrategiesPillar #5 Mitigating Risk

Area & PropertyFundamentals


Pillar #1

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Property Fundamentals

Read it this way.

Shops School TransportLinks

MajorEmployment

MajorInvestment

Property Fundamentals

Implement it this way.

ShopsSchoolTransportLinks

MajorEmployment

MajorInvestment

Lowest impactHouse PricesHighest impact

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#asimpleidea


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

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#asimpleidea


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Regeneration Case Study Wembley (Quintain)


#asimpleidea


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Regeneration Case Study Wembley (Quintain)

View from our office (June 2016)


#asimpleidea


Regeneration Case Study Early Results

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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?

PropertyTrend Cycle


Pillar #2

• 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

Property Trend CycleP

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Why your Strategy should meet the Current Market

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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.

Core & Alternate Strategies


Pillar #3

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


#asimpleidea


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.

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Property Ripple Effect


Pillar #4

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• Predict Price Growth based on fundamentals

• Adjust Individual Strategy

Ripple EffectPentagon

IT’S ALL A GAME


Mitigating the Risksin the Market


Pillar #5


#asimpleidea


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%.

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Mortgages

• London rental coverage

• UK Price increases

• Getting your income & debt in order

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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.

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#asimpleidea


Interest Rateswill increase at some point

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Slower Growth is the new growth,so change in fundamentals isthe real opportunity, not just sit and wait for an area.


#asimpleidea


Developer Risks

• Going Bust

• Poor Build Quality

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#asimpleidea


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.

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IT’S ALL A GAME


Ezytrac and theRight to Rent Act?

Presenter : Nick Rossington

Ezytrac’s Vision

EffortlessPropertyManagement

Our book available at www.ypc-group.com/effortless


Ezytrac Property Group

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• 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.


Ezytrac Property Group Growth

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• Cloud Based Software, so

you can login

• Additional 12 local lettings

offices across London & UK.


Ezytrac Property GroupE

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• 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.


Right to Rent immigration checks forlandlords,agentsandsubletting

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• 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.


Ezytrac Global ReferenceE

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• 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


Landlords rent guaranteeE

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• 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

IT’S ALL A GAME


Our 5-Step Research& Property SelectionProcess



#asimpleidea


Our New Framework 5-Step Research and Property Selection Process

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Hotspots Algorithm

5-S

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• 324 Postcode Districts researched across 108 data points. Each area weighted via Algorithm.

• Over 150 areas that are suitable for investment

Area Investment Guides

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• 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


#asimpleidea


Follow The Ripple Effect5

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• 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.


#asimpleidea


It’s never about Price…5

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• 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.

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• 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

Two Year Cash FlowWork Sheet

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#asimpleidea


Property Available5

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• Over £750 million London

and UK property sold

• Over 200 Developers &

Agents across the UK

• Wembley Case Study


#asimpleidea


Developer Partners

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• 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.

Quintain (Wembley)

• Best way to experience is through a site visit.

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]

london & uk property seminars - is property investment under siege?

Real Estate