Grant Management UK Property Investment

1. Grant Management UK Property Investment

2. About us Founded 1997 125 people in 12 cities ARLA members Investors in people HBOS now own 20% Plc standards

3. What we do One stop solution • Source • Renovate • Furnish • Manage Traditional properties in city centres (we do not buy new build)

4. What we do We create safe, affordable homes to rent Happy clients refer us on

5. “Our business has grown… through happy clients telling their friends” We aim to ‘under promise’ and ‘over deliver’.

6. Our Commitment to the Environment Why • 50% of Global warming comes from property • Major issue for people under 30 What we do • GM plant trees in partnership with Globaltrees.co.uk • On behalf of all 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

7. The Market

8. Property Market … in university cities University cities • Large and growing rental market • Secure income (Joint leases/ guarantors) • Universities “recession proof”

9. The market – why larger traditional property • City centre locations • Better rent and yields • No longer built!

10. The market - Property v shares • Propertyas an investment has grown in popularity • Banks have lent some £120Bnsince 1999. • Shareshave become increasingly volatile • Pensionsno longer guaranteed

11. Where we buy We target large cities with yields over 6%

12. How we help clients invest

13. Our Focus • Buying well … location, price, experience! • Renovations… getting things done on time, on budget • Management… maximising occupancy Our aim is that happy clients refer us on!

14. How we buy a property We assess all propertiesevery week • Rent & price - controlled by Gm model • Surveyor confirms value • Lawyer checks legals

15. Adding Value

16. Renovations– Adding value 1. Condition … bad is good (less competition, all new, more value) 2. Layout … more rooms(more rent, more value)

17. Renovations – Adding value Bed1 Bed 2 V Kitchen Bed 5 • Rents rise • Values rise(condition & kitchen relocation) • Maintenancecosts reduced

18. The Product

19. Property Management

20. “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

21. Management– what makes us different 95% Occupancy *No 1 issue for landlords Tenant loyalty scheme Out of hours viewings We pre-let flats Rent PaymentIf tenants pay late, we still pay landlords on 15th ** Add valuee.g. video inventories, 24hr emergency repairs, property e-tours * From year 2 ** 1st month only) “ As investors ourselves, we took all the things that annoyed us … and did the opposite”

22. We invest in people, training and systems Systems • New phone system records all calls (Quality and training) • New state of the art property system 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

23. Finance

24. Finance £’000 Investment £30k Setup £15k Borrowing £120K Year Assumes average capital appreciation of 10% pa

25. Finance £’000 Year Assumes average capital appreciation of 10% pa

26. Performance – how to maximise Bank gearinggives tax and performance benefits • Interest ratesare still low • Gross yieldsare 6% min • Rental demand rising. A 5% rise in property values means a 25% return, if geared to 80% LTV

27. Risks Property prices could fall Occupancy cannot be guaranteed Interest rates could rise … have a fallback. Do not invest 100%

28. Buyers market… • Credit crunch effect Low confidence, large fall in transactions • Zero competition creates opportunity: Scotland– values remain level, we can buy at 10% discounts England– values down 10%, we can buy at 20 -25% discount • Fundamentals Housing shortage, growing pop. and Student market, low interest rates. • History shows the market moves ahead more quickly after a slowdown. (New Build not recommended – banks not keen to support.)

29. What our clients say “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.

30. 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.

31. Recent articles…

32. What the papers say “a one stop shop for investors and landlords” “GM never pays more for a property than it is worth” “effective” FINANCIAL TIMES

33. 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)

34. FAQ Tax Find a good tax accountant. How long to renovate 8 weeks max. Furnishing costsAllow £7-10k on furniture. How fast will it rent 7/10 flat are pre let. Finance75% - 80% on end value (purchase plus renovations). FeesNothing 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