slaterheelis property seminar 8 july 2010 ruth mccarthy

www.slaterheelis.co.uk

8 July 2010

PROPERTY INVESTMENT – BACK IN VOGUE?

Presented by Ruth McCarthy

www.slaterheelis.co.uk 2

• Worst recession since 1930’s – slow recovery.• Low returns on savings.• Property vs the Stock Market.• Rising assets

– UK house prices rise 117% in the “noughties”.

• The rise of “buy to let”.

Why Property Investment?


• Commercial vs residential.• Commercial – industrial, retail, mixed use.• Residential – buy to lets, HMO, holiday lets, off plan.• Land.• Property Investment Funds.• Types of investor

– cautious– moderate risk– speculative.

• Sourcing property.

Types of Investor and Investment


• 2007/2008 “annus horribilis” x2– Paralysis of credit availability– House price falls.

• Recent price rises– Low supply– Very low mortgage rates.

• Little competition from alternative investment options.• Price rises – sustainable?

– Slow recovery– Volatility on a month by month basis.

Residential Market – The calm after the storm? (1)


• Future concerns – increased unemployment, future

finance costs, inflation, government debt, tax rises and

spending cuts.

• Hung Parliament - Conservative/Lib Dem Coalition

– What does it mean to the housing market?

Residential Market – The calm after the storm? (2)


Investment Yields

Source – Savills Research/Residential Property Focus 02/10


Market Snapshot



• Strong demand – UK and international.• “Boom and bust” more extreme.• Why “out performing”?

– Same reasons as elsewhere in UK but more

pronounced.– Returning confidence – economic prospects brightening

more rapidly.– Resilient demand.– Plummeting supply.– Devaluation of sterling since 2007.

Focus – Prime London leading recovery


Focus – Student Accommodation

Demand Supply


Focus – Student Accommodation

Rental growth prospects Yields & values


• What is an HMO?• The attractions.• The downsides.

Focus - HMO


• Mortgage availability will remain tight.• Banks beginning to repay government loans.• Banks rationing mortgages and using sharply

differentiated rates depending on deposits.

The Funding Environment


• The process.• The “do’s” and “don’ts”.• Risks vs rewards.

Buying at Auction


• T.I.B./Receiver/Administrator.• Caveat emptor!• Undervalue issues.

Buying Distressed Property


• Seek professional guidance.• Always check discounts and rental indications.• Do your research.• Be careful of “free” seminars and property clubs with

expensive membership.• Always leave some spare capital for unexpected

purchase costs and potential rent voids.• Maintain diversity in any portfolio.

A cautious approach


• Development - The end of “high rise developments”

The Future



• The land market

The Future



Should you require further information or if you would like

a copy of these slides please contact.

Ruth McCarthySlater Heelis

Dovecote HouseOff Old Hall Road

Sale MoorM33 2HG

e: [email protected]: 0161 975 3827

For Further Information


Disclaimer

Risk warning and disclaimer:

These slides are produced for general information only and are not to be relied upon in anyway. No responsibility or liability whatsoever can be accepted by Slater Heelis for any loss or damage resulting from any use of, reliance or reference to the contents of this document. As a general document, this material does not necessarily represent the view of Ruth McCarthy or Slater Heelis in relation to a particular property, properties or projects. You are advised to seek additional guidance from property and other professionals.

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20 May 2010

THANK YOU FOR YOUR TIME

Presented by Ruth McCarthy

THE END

slaterheelis property seminar 8 july 2010 ruth mccarthy

Business

property vs

property clubs

particular property

sourcing property

property investment

focus hmo

residential market

distressed property