delphselect building better returns
Metalworks Apartments The Jewellery Quarter, Birmingham
Welcome to Delph Select
Dear Investor I am delighted to introduce Delph Select to Birmingham, a revolutionary service that takes the hassle out of property investment for the investor. Delph Select offers property investors the opportunity to benefit from annual income and long term growth together with a hassle-free service. You simply leave the day to day management to us and sit back and receive your monthly rental income. Delph Select is part of Delph Property Group, one of the UK’s largest private landlords with a portfolio of over 1000 investment properties. We have been specialising in the property market for
over 65 years. The most important lesson we have learned is that there are no get rich quick schemes. However, with a mid to long term outlook and an expert partner at your side, we know that there is no better investment than property to provide better returns for you and your family.
Best regards Howard Crocker Managing Director Delph Select
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Delph Select Building better returns the hassle-free way Uncovering good property investments takes months of careful research and analysis.
thorough due diligence process, with the aim of ensuring a better return for our investors.
At Delph Select we are in constant contact with Developers, Builders, Estate Agents and Banks throughout the UK ensuring that we are fully aware of all the latest investment opportunities.
Delph Select embraces the operational ethics of conservatism, caution and care which continue to support our success and the success of Delph Property Group
Each investment property that we offer goes through a rigorous and
If you want to invest in buy-to-let or even expand your existing portfolio, Delph Select could be for you. As
well as offering you a wide choice of investment properties with high rental demand, we help you make the most of investing without any of the hassle. We assist you every step of the way, from sourcing a Solicitor and an Independent Financial Advisor for your purchase, to organising the letting and management of the property on your behalf.
Our purchasing criteria are
Financial security Yield Growth
Unless we are 100% confident that these criteria are met, we will not proceed with the investment. Please note: The value of your property investments can go down as well as up. In addition, your home may be at risk if you do not keep up repayments on your mortgage or any other debt secured on it. Please remember that Income Tax and Capital Gains Tax may be payable on any profit. We suggest that any potential purchaser seeks proper legal, tax and, if appropriate, independent financial advice, from a qualified professional adviser. 4
Our commitment to you
At Delph Select we have a continuous commitment to our clients. Our service is designed to make the process of buying and letting property easy and hassle-free so you can spend your time enjoying the return on your investment.
Benefits of Delph Select Due diligence
Deposit protection
Structural warranty
Delph Select uses the same rigorous vetting and due diligence procedure when buying for our investors as we do when buying for ourselves, with the aim of ensuring security, yield and growth of the investment.
Your 10% deposit, paid on exchange, is protected under an NHBC* Buildmark Warranty (or similar scheme) ensuring your money is returned in the event the developer goes into administration.
All Delph Select properties have an NHBC* (or similar scheme) 10 year structural warranty, which includes cover for latent defects within the first two years from completion.
Solicitors fees
Stamp duty
Hassle free
Delph Select will contribute £400 towards your solicitor’s conveyancing fees when you purchase an investment from our portfolio 1.
We will pay your stamp duty on properties priced up to £250,0001.
Delph Select works alongside Letting and Management specialists Complete RPI to ensure a hassle free service at competitive rates for our investors.
No introductory fees Delph Select does not charge you a fee for helping to identify the right investment property for you to purchase.
1 Subject to terms and conditions, please ask for further details * National House Building Council
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Birmingham: reasons why you should invest
Largest city economy outside London Population set to grow by 8% between 2011 and 20211 Number of households set to grow by 9% between 2011 and 20211 HS2 will reduce journey times to london to 40 minutes2 BIG CITY Plan – 20 year plan including £10 billion investment, aims to provide 5,000 new homes and 50,000 new jobs £600 million redevelopment of New Street station due to be complete in 2015 £129 million extension of Birmingham’s metro system to be completed in 2015 £200 million expansion of Birmingham airport
1 Source: Knight Frank. 2 Source: Savills. 3 Work commences in 2017
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Birmingham has 5 universities and 78,000 students Local house prices predicted to rise by 21.6% between 2014 and end of 20183 Major employers include Jaguar Land Rover, JCB, Kraft, Amey, Deloitte, Deutsche Bank, Cadbury and ASOS Birmingham is the most visited city outside London for European visitors It is also the youngest city in Europe with nearly 40% under 25 years of age Jewellery Quarter produces an estimated 40% of the UK’s jewellery Predicted shortfall of over 100,000 new homes by 2031
About the development Modern two bedroom apartments with secure parking available. Located in Birmingham’s popular Jewellery Quarter. Currently under construction - due for completion Spring/Summer 2015. Buy at today’s prices. Strong rental demand. Close to shops and transport facilities.
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The potential financial returns at Metalworks When investing in property, your return can be worked out in a number of ways, including: the capital growth (the increase in value of a property over the long term) and the cash yield (the return you get from your cash invested). The following illustrations show how much you could receive as a return on your initial property investment if you purchase a new Metalworks apartment.
The potential return on your property investment The figures below are based on buying a two bedroom, one bathroom apartment at Metalworks for £170,000 and let at £850 per calendar month, subject to an interest-only mortgage.
Cash % invested
25%
40%
60%
100%
Cash amount invested
£42,500
£68,000
£102,000
£170,000
Mortgage required (%)
£127,500 (75%)
£102,000 (60%)
£68,000 (40%)
£0 (0%)
Purchase price
£170,000
£170,000
£170,000
£170,000
£10,200
£10,200
£10,200
£10,200
Interest-only mortgage payment 2.59%1
£3,302
£2,641
£1,761
£0
Letting & management fee 12% P/A (excluding VAT)
£1,224
£1,224
£1,224
£1,224
Service charge P/A
£854
£854
£854
£854
Ground rent P/A
£300
£300
£300
£300
Total income
£10,200
£10,200
£10,200
£10,200
Total costs
£5,680
£5,019
£4,139
£2,378
Annual profit
£4,520
£5,181
£6,061
£7,822
Return on your cash invested
10.6%
7.6%
5.9%
4.6%
Income received 1st year projected rental income Annual costs*
Return
Comparison Cash ISA2
2.85%
Savings account
2.85%
Investment limit or lock-in period of up to 4 years
Annuity
2% to 8%
Fluctuates in line with long-term interest rates
Gilt
2.97%
Fluctuates in line with long-term interest rates
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* Not including conveyancing and related purchasing costs - please ask for further details.
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The potential capital growth of your cash invested The figures below are based on buying a two bedroom, one bathroom apartment at Metalworks for £170,000 and assuming 3% growth per annum. (The forecast for house price growth in the West Midlands is 7% nominal growth, but it is likely that the Central Birmingham market will outperform).
Cash % invested
25%
40%
60%
100%
Cash amount invested
£42,500
£68,000
£102,000
£170,000
Mortgage required (%)
£127,500 (75%)
£102,000 (60%)
£68,000 (40%)
£0 (0%)
Purchase price
£170,000
£170,000
£170,000
£170,000
Property value
£197,077
£197,077
£197,077
£197,077
Increase in property value
£27,077
£27,077
£27,077
£27,077
Gross return on cash invested
64%
40%
27%
16%
Property value
£228,466
£228,466
£228,466
£228,466
Increase in property value
£58,466
£58,466
£58,466
£58,466
Gross return on cash invested
138%
86%
57%
34%
Property value
£307,039
£307,039
£307,039
£307,039
Increase in property value
£137,039
£137,039
£137,039
£137,039
Gross return on cash invested
322%
202%
134%
81%
After 5 years
After 10 years
After 20 years
Sources as at 1st September 2014 1. virginmoney.co.uk - Virgin Tracker Interest Only Mortgage, available at time of print 2. money.co.uk - Yorkshire Building Society 5 year fixed ISA 3. money.co.uk - Investec 5 year Step Up bond 4. FT.com - Annuity Rates table, based on £100,000 and across age ranges 5. Bloomberg - 30yr UK Gilt yield
Please note: The value of your property investments can go down as well as up. In addition, your home may be at risk if you do not keep up repayments on your mortgage or any other debt secured on it. Please remember that Income Tax and Capital Gains Tax may be payable on any profit. We suggest that any potential purchaser seeks proper legal, tax and, if appropriate, independent financial advice, from a qualified professional adviser. 9
Metalworks is located in the heart of Birmingham’s Jewellery Quarter The jewel in the crown
Jewellery Quarter amenities
Metalworks is located in the heart of this historic district. It is currently the only new development of its kind in the area and will therefore encourage strong demand, capital growth and strong rental yields.
The Jewellery Quarter is a designated conservation area and proposed World Heritage Site and is already a prestigious and highly desired part of Birmingham. It is experiencing further development as some of the old factories are converted into apartments, restaurants and shops. And it is only a short distance to all that Birmingham City Centre has to offer.
Shopping 1. Artfull expression 2. Braderie Vintage and New 3. El dorado 4. Geosia Weber Handmade 5. GM Glass Design Bars 6. Actress & Bishop 7. Après 8. Stirlings 9. The Jewellers Arms 10. The Red Lion 11. The Vaults 12. Vertu Bar Restaurants 13. Andersons Bar & Grill 14. Big Nanny’s 15. Blue Nile 16. Fleet Street Kitchen 17. Itihaas 18. Lasan 19. The Drop Forge
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City amenities Parks 15. St Pauls Square 16. Golden Square
Shopping 1. The Bullring featuring Selfridges 2. The Mailbox featuring Harvey Nichols 3. Pavilions High Street 4. The Great Western Arcade 5. Piccadilly Arcade 6. Burlington Arcade 7. New Street High Street
Art Galleries & Museums 25. RBSA Gallery, Brook Street 26. St Paul’s Gallery, Northwood Street 27. Turner Fine Art, Warstone Lane 28. Museum of the Jewellery Quarter 29. Birmingham Science Museum
Bars 17. The Wellington 18. The Old Joint Stock 19. Post Office Vaults 20. Brewdog 21. Yardbird Jazz Club
Restaurants 8. Opus 9. Brindley Place 10. Annexe 11. The Karczma 12. Warehouse Café 13. Purnell’s 14. Adams
Universities 30. Aston University 31. University College, Birmingham 32. The University of Law 33. Birmingham Metropolitan College
Cinemas 22. Cineworld 23. Odeon 24. Giant Screen Cinema, Millenium Point
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Call us today 0800 088 6080 www.delphselect.co.uk
The information contained in this promotional material is provided for general guidance and for illustrative purposes only. Whilst reasonable care has been taken in providing this information, Delph Property Group and its related companies and their representatives, consultants and agents (“we” or “us” “our”) and, where applicable, the sellers or lessors of a property whose agents we may be, accept no responsibility for, and, to the fullest extent permitted by law, exclude any liability for, any loss or damage whatsoever arising out of or related to the accuracy or completeness of any information contained in this document or for any action taken in reliance on such information by any person whether purchaser, potential purchaser, estate agent, advertiser, introducer or otherwise. We do not make any representation or give any warranty, guarantee, condition, undertaking or term either expressed or implied as to the condition, quality, state of readiness or fitness for purpose of any property. No person employed or engaged by or on behalf of us has any authority to make or give any representation or warranty whatever in relation to any property. This document does not constitute, nor constitute part of, an offer, contract, warranty or guarantee. The information contained in this document is subject to change. You should take appropriate steps to verify any information contained in this document including visiting our site marketing suite and inspecting the property any other relevant documentation. We suggest that any potential purchaser should seek proper legal, tax and, if appropriate, independent financial advice, from a qualified professional adviser. Nothing in this document shall be regarded or taken as legal or financial advice. Notwithstanding the generality of the above, please note that: (i) all descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details are given in good faith and are believed to be correct, but no person, whether purchaser, potential purchaser, estate agent, advertiser, introducer or otherwise, should rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (ii) commentary, descriptions, figures, calculations, example financial projections (including, where applicable, examples of possible rental income and yields), plans, images and representations are illustrative only; (iii) images and plans may include artist impressions and computer-generated images which are not to scale; (iv) changes to the property may be made during the further planning or development stages of any development or otherwise, and dimensions, fittings, finishes, ongoing costs and specifications and representations and any other aspect are subject to change without notice; (v) measurements provided are taken at the widest points of rooms, except on angled walls where the measurement is generally taken at the centre of the room; (vi) apartment numbers are for sales purposes only and postal addresses may differ; and (vii) all journey times stated are approximate. The above notice and all issues regarding this promotional material are governed by English law.
delphselect building better returns
