Maritime House Greenwich Property Investment
OVERVIEW
CONTENTS ■ 10% Below Market Value ■ Olympic effect in East London ■ 5% exchange deposit ■ Located adjacent to Greenwich mainline and DLR station ■ High rental Yield – mortgage coverage ■ Prices start from below £250,000! ■ 10 minutes on DLR to the heart of Canary Wharf ■ Greenwich offers a fantastic mix of modern and contemporary living ■ £2.18Billion Regeneration budget to be spent on the borough
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INVESTMENT SUMMARY
Location
London, Greenwich, SE10
Investment Outlay
5% DEPOSIT ONLY
Discount
10% under market value
Projected Rentals 1 Bed: £1100 - 1300 per month 2 Bed: £1300 - 1600 per month Tenure
Leasehold 125 Years
Ground Rent
£150pa - 1 Beds & £250pa – 2 Beds
Service Charge
Approx £1,000pa – 1 Beds & £1,200pa – 2 Beds
Detail of Indemnity Underwriters
NHBC
Completion date
Nov 2008
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INTRODUCTION
We are excited to release this development of apartments situated within an area of strong heritage Greenwich, London. Greenwich, world famous for The Meridian, where East meets West at zero degrees Longitude, offers an eclectic mix of attractions and amenities to spice up the life of any jaded city dweller. We all know that we are currently in a buyerʼs market where investors have the ability to negotiate terms which we have not seen for years. With this in mind, we feel that this opportunity offers an incredible investment proposition due to the fact that last year we could not obtain this deal or opportunities in areas such as these where demand for property is secure, safe and strong. Apart from the bars, restaurants and shops, youʼll also find theatres, a cinema, comedy club, and, of course, the famous Greenwich markets - a covered Arts and Crafts weekend market, and Greenwich Village Market. The streets of small specialist shops selling everything from second-hand books, music, fashions and home wares add to the bohemian feel of the area. As a place of contrasts, Greenwich also offers elegant architecture and historic landmarks such as the Cutty Sark, the Old Royal Naval College, the Royal Observatory and, of course, the Greenwich itself is a rich mixture of heritage and the modern world. Being a traditional maritime centre it still holds the Maritime Greenwich World Heritage Site which encompasses architectural masterpieces and designed landscape at the Old Royal Naval College, National Maritime Museum and extends outside the town centre to the Royal Park. Greenwich was also the subject of a large re-generation scheme during the 1990ʼs which brought its town centre firmly up to date with the most prominent areas of London and re-established itself as a tourist hotspot. With the renewed re-generation over the next five years comes the need, as ever, to preserve the historical importance of Greenwich, here is a quote from Greenwich Council – “The Council will preserve and promote the enhancement of historic Greenwich town centre. Refurbishment or new development in Greenwich must be appropriately scaled, respect existing form and character, and demonstrate the highest standards in design, landscaping, detailing and finishing.”
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INVESTMENT PROPOSITION
The London market has consistently out-performed most areas of the world over the past 15 years. Last year London saw fantastic growth with some areas boasting 30% capital growth.
Greenwich is now without doubt one of Londonʼs most desirable areas maintaining its world renowned name (GMT) and stature whilst still having very a reasonably priced property market compared with other exclusive London postcodes. By 2016, the population of Greenwich is projected to rise by 17,400 or circa 2,000 people per year. This means demand for property will further increase in an area where there is already a massive demand and limited supply. As investors this puts us in a very strong position to ensure future capital growth as supply and demand is what drives our market. With the Olympics coming to London in 2012 and an extensive regeneration programme throughout East, South/East and North/East London we would expect to see formidable capital growth throughout these areas over the next few years. Already prices are moving and interest has picked up considerably. Along with strong predictions for capital growth there is also (unlike most of the UK) a very strong rental yield in this prime area, making this a fantastic all round investment opportunity.
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SPECIFICATIONS
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White two panel smooth effect internal doors with chrome ironmongery Double glazed aluminium windows
Smooth painted ceilings in white emulsion
Internal walls finished in soft white emulsion Quality kitchens by Moores
Single oven, electric hob and chimney hood in stainless steel White sanitaryware throughout Ceramic tiling to bathroom
TV point to living room and master bedroom BT point to living room and master bedroom Entryphone system to all apartments
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TRANSPORT FOR GREENWICH
Communication links are excellent – Both Greenwich mainline (servicing Charing Cross, Cannon Street, SE London and Kent) and Greenwich DLR station are within a few minuteʼs walk. The DLR offers a 10 min journey to Canary Wharf. This site is also minutes away from the A2 which, if followed West, leads into Old Kent Road and Central London whilst East will take you directly to the M25.
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LOCATION MAP
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LOCATION MAP
Maritime House
Greenwich
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THE BUSINESS CASE
In terms of “expected capital growth” we can never say exactly how any market will perform in the future. We know that we are currently experiencing a buyerʼs market meaning growth prices are low. Nationwideʼs most recent report puts annual property growth at 2.7%. We choose areas and developments which will and have consistently outperformed the general ʻUK marketʼ. We therefore anticipate capital growth of higher than the national average on this site... If we assume 3% growth using an 85% loan-to-value buy-to-let mortgage to leverage our investment we would still see a 20% return on our investment in the first year which should outperform most if not all other asset classes which do not offer the same security as bricks and mortar. Rental returns should cover mortgage payments, allowing investors the freedom to take a medium-long term v of their properties whilst servicing their debt. Over a five year cycle we believe this opportunity will see very substantial returns. We have also acquired this site at 10% below current market value giving instant equity (without deposit) of at least £34,000... Or for those who are struggling to keep faith in the current UK market we have acquired this site at 10% below market value to alleviate any fears that the market may actually go down (which has not happened since the infamous crash in the early nineties).
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INVESTMENT PROCESS STEP 1 > RESERVATION – HOW TO RESERVE WITH US Once you have made the decision to add a unit to your portfolio, you can make a provisional reservation by telephone. You must complete and return to us a Reservation form and provide cleared funds for your initial deposit. Your Portfolio Manager will ask you a £2000 non returnable reservation deposit, which we will forward to the developer. Within 48 hours, you will then pay the non-returnable 2% fee. The Finder’s Fee is also, and if not paid at the time of reservation. We accept payment by DEBIT/CREDIT CARD or by same day TELEGRAPHIC TRANSFER. Your initial deposit is passed on directly to the developer on securing your reservation and are offset by the developer against the balance on exchange. STEP 2 > EXCHANGE OF CONTRACT – DEPOSIT TO DEVELOPER Exchange of contracts is usually targeted for 28 days after the solicitor is instructed, but in many cases this takes longer. During the 28 days between reservation and legal exchange of contracts, the solicitor appointed on your behalf by us will carry out the standard legal work. At all times, the solicitor will act in your best interests, reviewing the contract and ensuring that everything is in order to enable you to exchange contracts. At the point of exchange, your solicitor will ask you to pay the remainder of the exchange deposit, typically between 5% and 10% of the purchase price. The £2000 already paid is used as part of the exchange deposit, so you are required to deposit with your solicitor the balance of the monies. At this point, unconditional exchange of contracts has taken place. STEP 3 > COMPLETION – MORTGAGE We have a dedicated sales progression department, who will contact you approximately 4 months prior to anticipated legal completion to put in motion the process of arranging the most competitive mortgage available. Obviously, all mortgages are subject to individual circumstances. We have arrangements with a panel of mortgage advisors who are specialists in arranging buy-to-let mortgage finance, but you are obviously free to discuss your mortgage requirements with any advisors you choose. A full mortgage offer needs to be obtained approximately 4-6 weeks prior to completion, and all necessary documents need to be provided to your solicitor to ensure that the mortgage monies are with your solicitor prior to completion. Your solicitor will also ask you to deposit any remaining monies required for completion. STEP 4 > AFTER COMPLETION We have negotiated discounted rates with specialist executive rental furnishers who will quickly and efficiently furnish your apartment to the required standard to obtain the maximum rental possible. Also, we can assist you with the furnishing and letting of your property. We can provide you with good tenants and have a reputation of efficiency, or we can provide advice on current rental values and also on the best ways to achieve the highest rent possible.
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COST BREAKDOWN The next step to reserve your property is to complete a reservation form and secure it with a £2,000 deposit and our 2% finderʼs fee. Mortgage finance will be arranged for you by our independent IFA near completion.
DAY 1 £2000 within 28 DAYS 5% deposit ON COMPLETION Balance payable
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CONTACT US
Abacus Estates 104 Fortune Green Road West Hampstead London NW6 1DS Tel: 44 207 431 3777 Fax: +44 207 431 9777 Email:
[email protected] Web: www.AbacusEstates.com
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