Why should I buy property Off Plan

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Why should I buy propertyOff Plan?
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We will discuss..

• What we mean by off plan
• Benefits of buying off plan
• Basics of how to buy off plan
• How Greenhouse Property Investors Ltd can support
  you

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What we mean by Off Plan

• By buying a property that has not yet been built
  i.e. off plan, you secure a property at today's
  prices, but complete the purchase some time in
  the future, typically 12 to 24mths.

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So when buying Off Plan

• You are buying a property from an architects
  drawing where planning permission has been given

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Benefits to you.

• You will own a brand new property with a 10 year
  National Housing Building Certificate

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Investment benefits to you.

• A relatively small deposit, usually 5 to 10
  secures a large investment and therefore the
  buyer can benefit from capital growth on 100 of
  the value of the property, not just the the 5 to
  10 deposit you paid.
• The discounts off todays market valuation that
  Greenhouse Property Investors Ltd negotiate with
  developers, will give instant equity on
  completion.

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Understanding Leveraging

• If you had 30k to invest and you invested it in
  the stock market and during the first year it
  gave you a 10 return of 3K, I suppose you would
  say that was quite a good profit wouldnt you?
• Lets invest our 30k in a different way now and
  put a 15 deposit on a 200k house. If our
  property increases by 20k on a 30k investment
  that equates to a massive 66 growth on capital.
  Now thats profit!
• 30k in the stock market is only controlling 30k
  in the stock market.
• 30k invested in property is controlling 200k of
  assets!
• This is known as leveraging and means you are
  making your money work more effectively for you.

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Investment Benefits to You..

• Property investment history has shown that the
  value of our property doubles every seven to ten
  years.
• Remember though, that this does not mean that
  your property will show a steady growth year on
  year. That growth line may show a few highs
  and lows
• House prices never go up in a straight line!
  There will always be the property booms and the
  property corrections. Remember investing in
  property is a long term investment.

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Conducting Due Diligence and Managing Risk

• No investment is totally risk free, so by
  conducting due diligence on all our developments
  ensures that off plan properties have
  investment potential and are of good quality. It
  is important to us that you invest your money
  wisely.

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Who conducts Due Diligence?

• Developers
• Generally a developer will not build in an area
  where he will get poor return on investment. In
  other words where he will struggle to sell
  properties, therefore he will conduct due
  diligence on that area.
• Greenhouse Property Investors Ltd
• We also do our own research to ensure that we are
  offering our clients the best possible deals,
  including chartered surveyors valuations for
  capital and rental valuations.
• Yourself
• We also encourage our clients to do their own
  research for their own peace of mind.

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What to research in the Due Diligence
Process
The Developer Profile credibility Quality of
past developments Gain agreement on discounts
prices specifications

The Post Code Investment potential Regional
local infrastructure such as transport links,
parking, schools Local amenities
Development Look at other local
developments Find out rental values
demand Research long term capital investment
potential
The Country If buying abroad we research..
Economic climate Political stability Investment
potential Buying mortgage process
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Reasons to Reject a Development

• Reasons to Invest in a Development
• Regeneration area
• Forecasted steady or fast growth property market
• Rentals stack up
• Strong buy to let market
• Potential future rental demand e.g. increased
  university student intake or increased employment
  forecast

• Valuations do not stack up
• Poor location
• Rentals do not stack up
• Some areas have poor buy to let market and have
  a stronger owner occupied market

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Before purchasing your property investment
ensure you have adequate financial resources

• You will need money for..
• Deposits
• Solicitors fees
• Valuation fees
• Searches
• Mortgage fees
• Stamp duty where appropriate
• Greenhouse Property Investors Ltd fees

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• Realistic management of your cash flow is the
  secret to stress free management of your
  property investment.
• Plan for every need and eventuality..
• Insurances buildings and contents
• Service charges if apartment (usually covers
  buildings insurance)
• Ground rent
• If you are renting out your property you will
  need to put some money by for possible rental
  voids
• Letting agent fees
• You may also need to buy a furniture package if
  the local rental market dictates it
• Property maintenance
• Increase in mortgage interest rates

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Lets recap
Soif you are shrewd with your cash flow in
order to manage and maintain your property and
you have carefully researched your investment by
your due diligence, then you will be well placed
to manage your property investments even when
interest rates rise. Remember property is a long
term investment
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Why rent your property?

• Rental income will not make you rich, although it
  could create some income.
• Rent either fully or partly finances your
  mortgage payments, depending on interest rates
  and the size of your mortgage.
• In other words you are using your tenants money
  to fund the loan on your investment.
• Remember that it is the increase in the value of
  the property and the subsequent capital gains
  that in the longer term will make you money.

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How Greenhouse Property Investors Ltd can support
you

• We negotiate discounts from developers
• We thoroughly research new property deals
  ensuring due diligence
• We have a network of independent professionals to
  help you with the purchase and rental of your
  property
• We offer advice and support to help grow your
  investments and develop your property portfolio

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How the numbers stack up

• Click on the image to see an example..

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Lets summarize
Ensure you have adequate financial resources
in place
You own a brand new property with a 10yr NHB Cert
Leveraging makes your money work harder
Small deposit secures a large investment
Property values Have been shown to double
every 7 to 10 yrs
Greenhouse Property Investors Ltd offers YOU
expertise and support
Shrewd cash flow management helps with stress
free management of investments
Conduct due diligence on your investments
Rent from your property pays the mortgage