1. Rob Moore Mark Homer

2. “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

3. 1.The New Paradigm 2.The Investors secret weapon 3.Green and Pleasant returns 4.Grow up, get lower rates on Pick and Mix finance “The 4 sure fire strategies to supercruise your profits in the new world”

4. Section 1: The New Paradigm -Great crash of ’08 – 2 main segments -Finance Led, so high LTV worst affected -Different from late 80s – people want to buy! -Bottom end Rents rising strongly “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

5. Section 1: The New Paradigm -Low end residential outpacing commercial -7% this year, 6.5% next, 5.5% in 2012 (Savills) -Low end of cycle where prices don’t rise as quickly (for now!) -Yield explosion “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

6. Section 1: The New Paradigm -UK private rented sector growth: Europe -Size, imbalance of returns, attractiveness brings -Institutional investors: Banks lending on rent -Commercial Properties valued on rent “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

7. Section 1: The New Paradigm -Surveyors instructed this way -What can you do?: - Pick areas with high LTV -Pick the highest yielding properties “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

8. Section 2: The Investors Secret weapon -Inflation now CPI: 4.0%, RPI 5.1% In January -Believable? -Govt using backdoor strategy! 70s? -Helps rental growth -Devalues debt + Drives capital value “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

9. Section 2: The Investors Secret weapon -Less Sellers with equity -Yields will reduce as market grows, pre crunch 3% lower! -Eventually yields will be so high and people Wake up – yield compression “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

10. Section 2: The Investors Secret weapon -Solution: Lease Options/Long stop -No Deposit, can take old cheap mortgages -Agents full of people who cant/wont sell -Incentivise them with fee over time “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

11. Section 3: Green and Pleasant returns -Low rate, normally easily accessible system -High borrowing by world standards -Just behind US -UK Property Market very focussed on finance “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

12. Section 3: Green and Pleasant returns -London recognised as the most attractive European City for Investment (LaSalle Inv Mang), ask Lord Sugar! -Growth post 70s, 80s and 2008 crashes -Credit Crunch particularly severe here “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

14. Section 3: Green and Pleasant returns -Population from 60M to 71M by 2031 -Doomsday book – 1086 -Land was worth around £75k - £1 Trillion today -over 10% annually! AFTER Inflation -Planning – not in my back yard “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

15. Section 3: Green and Pleasant returns -US/Australia too much building land -Europe rents -Build costs rising – wiring quote! Ged materials -Upswing will be greatest in UK “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

16. Land value?

17. Section 3: Green and Pleasant returns -Weak Sterling drives building costs on imports + Local materials pushed abroad -Developers build less houses if no profit -Barker report ‘03 around 230k new homes needed -Avg 3 bed 1000 sq ft house £80k plus to build! “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

18. Section 3: Green and Pleasant returns “The unsheathed truth behind UK property economics and why supercharged returns are inevitable” -Yr to June 2010 around 100k completions (CLG)

19. Section 4: Grow up and get lower rates on Pick and Mix finance -Relationship based -Little by little – rent stress eases/interest only -Remortgage straight away “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

20. Section 4: Grow up and get lower rates on Pick and Mix finance -Lloyds – 70% LTV, around 3% over base. Who? “The unsheathed truth behind UK property economics and why supercharged returns are inevitable” -2.5%-3% over base! -No CML -Short Leases, Title defects, owned for short period

21. Section 4: Grow up and get lower rates on Pick and Mix finance “The unsheathed truth behind UK property economics and why supercharged returns are inevitable” -Not RBS! -Santander, Butterworths, Adam Bank, Aldermore great for HMO (value on rent) -Unlikely CO-OP! -Barclays – Interest only lower rent stress

22. The credit committee

23. Section 4: Grow up and get lower rates on Pick and Mix finance -Need a business Plan – credit committee -Demonstrate knowledge (bus manager likely to know less than you about residential property!) -Wet their appetite – lots to refinance -HOW? “The unsheathed truth behind UK property economics and why supercharged returns are inevitable”

24. Section 4: Grow up and get lower rates on Pick and Mix finance “The unsheathed truth behind UK property economics and why supercharged returns are inevitable” -Credit history not important to some -Show some income