These slides are part of the Property Seminar hosted by Slater Heelis solicitors on 8 July 2010, The seminar provided property investors with a snapshot of market trends and opportunities, financing options, tax considerations and an outline on the future market for investment in waste to energy facilities.

1. PROPERTY INVESTMENT – BACK
IN VOGUE?
8 July 2010
Presented by Ruth McCarthy
www.slaterheelis.co.uk

2. Why Property Investment?
• 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”.
www.slaterheelis.co.uk 1

3. Types of Investor and 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.
www.slaterheelis.co.uk 2

4. Residential Market – The calm after the
storm? (1)
• 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.
www.slaterheelis.co.uk 3

5. Residential Market – The calm after the
storm? (2)
• 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?
www.slaterheelis.co.uk 4

6. Investment Yields
Source – Savills Research/Residential Property Focus 02/10
www.slaterheelis.co.uk 5

7. Market Snapshot
Source – Savills Research/Residential Property Focus 02/10
www.slaterheelis.co.uk 6

8. Market Snapshot
Source – Savills Research/Residential Property Focus 02/10
www.slaterheelis.co.uk 7

9. Focus – Prime London leading recovery
• 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.
www.slaterheelis.co.uk 8

10. Focus – Student Accommodation
Demand Supply
www.slaterheelis.co.uk 9

11. Focus – Student Accommodation
Rental growth prospects Yields & values
www.slaterheelis.co.uk 10

12. Focus - HMO
• What is an HMO?
• The attractions.
• The downsides.
www.slaterheelis.co.uk 11

13. The Funding Environment
• Mortgage availability will remain tight.
• Banks beginning to repay government loans.
• Banks rationing mortgages and using sharply
differentiated rates depending on deposits.
www.slaterheelis.co.uk 12

14. Buying at Auction
• The process.
• The “do’s” and “don’ts”.
• Risks vs rewards.
www.slaterheelis.co.uk 13

15. Buying Distressed Property
• T.I.B./Receiver/Administrator.
• Caveat emptor!
• Undervalue issues.
www.slaterheelis.co.uk 14

16. A cautious approach
• 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.
www.slaterheelis.co.uk 15

17. The Future
• Development - The end of “high rise developments”
Source – Savills Research/Residential Property Focus 02/10
www.slaterheelis.co.uk 16

18. The Future
• The land market
Source – Savills Research/Residential Property Focus 02/10
www.slaterheelis.co.uk 17

19. For Further Information
Should you require further information or if you would like
a copy of these slides please contact.
Ruth McCarthy
Slater Heelis
Dovecote House
Off Old Hall Road
Sale Moor
M33 2HG
e: ruth.mccarthy@slaterheelis.co.uk
dd: 0161 975 3827
www.slaterheelis.co.uk 18

20. 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.
www.slaterheelis.co.uk 19

21. THE END
THANK YOU FOR YOUR TIME
20 May 2010
Presented by Ruth McCarthy
www.slaterheelis.co.uk