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The Brief.Property Investment News that matters
EDITION FIVE

2. 01 02 03 04 05 06 07 08 09 10 11
Last weekend IPIN took to the road
again and exhibited at the OPP
Live Property Investor Show at
London ExCel. We found the show
to be time extremely well spent in
many ways. Not only did it provide
another great opportunity to meet
many of our existing Members face
to face, but it was also encouraging
to see the influx of interest in our
Secure Exit Strategy™, particularly
when compared to many of the
opportunities on display elsewhere at
the show. Thank you to everyone that
took the time to come and see us, we
look forward to taking part in more
shows in the future.
Contents
02 CONTENTs
IPIN EXHIBIT AT OPP LIVE
03 International treasure
Wealthy overseas nationals are still buying
properties in prime London
05 Seal of approval?
Ed Balls calls for stamp duty holiday and
100,000 new UK homes
06 THE LONG AND SHORT OF IT
UK housing shortage expected to push
up property prices
07 Take the initiative
UK home sales set to rise – RICS
08 Planning ahead
Student landlords urged to complete UK property
purchases by November
09 GOD BLESS AMERICA
USA property prices increase further
10 you say you want a revolution?
Hostel chic is fast becoming a serious threat to its
higher priced low cost competitors
The Brief.
From left: Michelle Daly, Mark Wilson and Claire Goddard

3. 01 02 03 04 05 06 07 08 09 10 11
Wealthy overseas nationals are still
buying properties in prime London
International
treasure Well over half of overseas high-net-worth individuals (HNWI) still view London
real estate as the number one destination for buying investment property
globally, according to a new survey.
The findings of the Cluttons International Private Capital Survey 2012 revealed
that 57 per cent of overseas HNWI still view London as the world’s leading
destination to invest in property in spite of the UK recession and wider
Eurozone crisis.
Global appetite for buying investment properties in the English capital –
residential and commercial property assets – has actually increased over the past
year, with overseas investors – both institutional and individual – contributing
close to 90 per cent in recent commercial asset transactions.
The Brief.

4. 01 02 03 04 05 06 07 08 09 10 11
Although residential property prices and rental values in prime London are currently are at a record high, the growing
supply-demand imbalance in the city is likely to push prices even higher; an attractive proposition for investors, particularly
HNWI with cash to spend.
The majority of the HNWI surveyed cited strong capital growth as the primary appeal to investing in London; the rapid
recovery of central London residential from the impact of the global credit crunch is a key factor influencing buying
investment property decisions.
“Quite remarkably, 43 per cent of these highly mobile high-net-worth investors state that the global financial crisis has had
no impact on their view of London as a top investment target location. In fact, almost a third [29 per cent] go on to claim
that London is better-placed because of the Eurozone difficulties,” said Bill Siegle, Senior Partner, Cluttons.
He added: “The fundamentals of the London economy remain strong; the city attracts dynamic businesses and skilled
professionals from around the globe. This gravity effect underpins the city’s appeal to wealthy individuals looking for
investment opportunities in the next 12 months.”
The global financial crisis has had no impact on their
view of London as a top investment target location.
The Brief.The Brief.

5. 01 02 03 04 05 06 07 08 09 10 11
Shadow chancellor Ed Balls, during a
recent Labour conference speech, called on
the government to introduce a two-year
stamp duty holiday for all first-time buyers
purchasing properties up to £250,000 and
to finance the construction of 100,000 new
affordable homes to help stimulate the
residential property market and in turn
speed-up the economic recovery.
The Labour MP said that the coalition
government should use the £3-4 billion
expected to be raised from the forthcoming
auction of the 4G mobile phone spectrum
to fund the temporary tax break and house
building programme.
He calculates that the lower estimate of
£3 billion from the 4G windfall would
be sufficient to fund the construction of
100,000 affordable homes - a mix of shared
ownership, affordable rent and social rent
- at a cost of about £2.5 billion and the
two-year stamp duty holiday at a cost of
approximately £500 million.
Mr Balls told delegates that the sharp fall in
house building levels had resulted in a 68
per cent decline in the volume of affordable
homes being developed and the loss of well
over 100,000 jobs, but insisted that a hike
in development activity would result in a
major boost for the economy.
He said: “With this one-off windfall from the
sale of the 4G spectrum, let’s cut through
this government’s dither and rhetoric and
actually do something. Not more talk, but
action right now.
“Let’s use that money from the 4G sale
and build over the next two years 100,000
new homes - affordable homes to rent and
to buy - creating hundreds of thousands of
jobs and getting our construction industry
moving again.
“Add to that a stamp duty holiday for first-
time buyers buying homes up to £250,000
and we can deliver real help for people
aspiring to get on the property ladder.”
The Brief.
Seal of
approval?
Ed Balls calls for stamp
duty holiday and 100,000
new UK homes

6. 01 02 03 04 05 06 07 08 09 10 11
UK housing shortage expected to
push up property prices
The long and
short of it…
The anticipated surge in demand for housing in the
capital over the next decade is not expected to be met
by an increase in supply which is likely to result in even
higher property prices and rental values, according to
independent research published by Cluttons.
It is estimated that around 240,000 new homes need to
be delivered nationwide each year and yet less than half
that level is actually being met, with many developers
struggling to raise the finance required to invest in fresh
housing.
The most acute supply-demand imbalance is in London
with no sign of the supply side increasing which explains
why the city is expected to see the greatest capital
appreciation moving forward.
The report also shows that London has the highest
concentration of renters in the UK. In fact, private renting
in the capital has doubled in the last 20 years. A sharp rise
in home prices, lending constraints, lifestyle changes
and migration have all been contributory factors.
Despite the fact that new jobs created in the capital over
the next decade will be disproportionately skewed to the
highly skilled and higher earning, a growing proportion
of households will find themselves unable to access
homeownership due to the lack of homes in relation to
demand. Consequently, even more people are expected
to live in rental accommodation which should force rental
values to rise further; an attractive proposition for
buy-to-let investors.
“A growing and vibrant London offers a wide range
of residential opportunities for both investors and
developers. Small private landlords will continue to
play an important role in the capital, including creating
more units from the existing stock,” said Julian Briant,
Head of Residential Consultancy, Cluttons.
The Brief.

7. 01 02 03 04 05 06 07 08 09 10 11
Take the initiative
The residential property market
is expected to see a stronger end
to the year due in part to to the
prospect of greater mortgage
availability on the back of the
government’s Funding for Lending
initiative, the latest Royal Institution
of Chartered Surveyors (RICS)
housing market survey shows.
RICS report that expectations
among surveyors for future home
sales reached their highest level
in September since May 2010 due
to the introduction of the Funding
for Lending scheme which aims
to make cheap funds worth about
£80 billion available to lenders. In
return, they must lend the money
on to commercial and personal
borrowers.
During September, a net balance
of 26 per cent more respondents
projected that transactions would
rise during the final quarter
of 2012.
However, despite the projected
increase in property sales,
RICS suggested that prices are
expected to remain rather flat
over the same period.
Surveyors, when asked about
prospects for property prices in
the fourth quarter, expressed
greater optimism, with nine per
cent more respondents expecting
prices to fall in Q4. Although still
in negative territory, this is the
most positive reading since the
time of the expiry of March’s
stamp duty holiday, RICS said.
Peter Bolton King, RICS Global
Residential Director, commented:
“The housing market was relatively
flat during September but surveyors
are optimistic that the run in to
Christmas could see an increase
in activity in many areas of the
country. Prices are still dipping but
at a much lower rate than seen in
previous months.
“Despite this, problems still exist
and more needs to be done to get
the market moving. Unrealistic
expectations on the part of vendors
seem to be stalling the transaction
process.
“Meanwhile, although the Funding
for Lending scheme appears to be
improving mortgage availability,
those at the very bottom of the
housing ladder are still struggling.”
UK home sales set to rise – RICS
The Brief.

8. 01 02 03 04 05 06 07 08 09 10 11
Student landlords urged to complete UK property purchases by November
People looking to invest in the student property
sector ahead of the next student rental rush in
January 2013 are being advised by Move With Us
to purchase before 1 November 2012 in order to
complete their purchase in time for the busy student
housing season.
Research by Move with Us found that just over half
- 51 per cent - of new students look for property
during January and February for the upcoming
academic year.
The survey also revealed that over half of second
and third year students also start looking for
property to rent in January and February for the
following academic year, not leaving it until
September as some had previously assumed.
“Although January may seem a little premature
for students to be looking for properties to rent for
the next academic year, the competition for high
quality accommodation nowadays is fierce and it’s
very much first come, first served,” said Robin King,
Director at Move With Us.
He added: “Second and third year students typically
begin to look for property at the start of the second
term after the Christmas break, therefore it is a
huge misconception that September is the date that
landlords should work towards. Making sure that
you complete on your property by January will give
you a much higher chance of securing good, reliable
tenants.”
King reports that a growing number of students now
demand more for their money when it comes to
renting property.
He continued: “The myth that students will live
anywhere is long out-of-date and these days
they are demanding much higher standards of
accommodation. When looking for a property
to rent out, investors need to bear this in mind
and amongst other things should ensure that the
bathrooms and kitchens are modern and bright, the
internet connection is fast and reliable and that the
property is in a good location.”
Planning ahead
The Brief.

9. 01 02 03 04 05 06 07 08 09 10 11
People looking to invest in the student property sector ahead of the next
student rental rush in January 2013 are being advised by Move With Us to
purchase before 1 November 2012 in order to complete their purchase in time
for the busy student housing season.
Research by Move with Us found that just over half - 51 per cent - of new
students look for property during January and February for the upcoming
academic year.
The survey also revealed that over half of second and third year students also
start looking for property to rent in January and February for the following
academic year, not leaving it until September as some had previously
assumed.
“Although January may seem a little premature for students to be looking for
properties to rent for the next academic year, the competition for high quality
accommodation nowadays is fierce and it’s very much first come, first served,”
said Robin King, Director at Move With Us.
He added: “Second and third year students typically begin to look for property
at the start of the second term after the Christmas break, therefore it is a huge
misconception that September is the date that landlords should work towards.
Making sure that you complete on your property by January will give you a
much higher chance of securing good, reliable tenants.”
King reports that a growing number of students now demand more for their
money when it comes to renting property.
He continued: “The myth that students will live anywhere is long out-
of-date and these days they are demanding much higher standards of
The recovery in the US housing
market continues to strengthen, with
property sales and prices rising across
many parts of the country, fresh
figures show.
According to the National Association
of Realtors, sales of previously
occupied homes, or resales, increased
by 7.8 per cent in August compared
to the previous month, marking the
highest pace of growth since May
2010, and were up 9.3 per cent
year-on-year.
The month-on-month hike in property
values to an average of $187,400
(£117,000) represents the fastest
pace of growth in over six years,
suggesting that the market has
already embarked on the long road to
recovery.
“The US housing recovery is for real,”
said Sal Guatieri, Senior Economist at
BMO Capital Markets.
The recent rise in demand for
homes in the US has been driven by
increased affordability levels, record-
low mortgage borrowing rates and
greater activity among national and
international investors seeking to take
advantage of high rental yields in
some parts of the country.
Guatieri added: “Great affordability,
pent-up demand and strong investor
interest in rental units are driving the
market, and QE3 can only help by
reducing mortgage rates further.”
A separate report from the Commerce
Department reveals that housing
starts increased by 2.3% from
July, and were up 29.1% from the
August 2011 rate, acting as a further
indication that US property market
conditions are improving.
USA property prices increase further
The Brief.

10. Hostel chic is fast becoming
a serious threat to its higher
priced low cost competitors
You say
you want a
revolution?
The humble hostel has previously been associated with
backpackers and traveling groups of students, but these
days the picture is very different, offering modern high
end accommodation appealing to more cost-conscious
travellers than ever before. This specific asset class
is growing significantly, showing particular resilience
through the current economic recession. Particularly
in urban centres like Liverpool, the location of our
current SES investment, with demand for affordable
accommodation outstripping supply. The budget hotel
sector is the fastest growing part of the travel industry,
growing by 35% during the recession (three times faster
than the overall hotel market). In the next two decades
we can expect to see a UK budget hotel being built,
opened or converted every five days.*
Historically, little data has been compiled about the
hostel sector, but as more figures become available,
it is becoming increasingly clear that it poses a serious
threat to its higher priced competitors. Not only are
hostels more cost-effective, their convenient facilities
and services are also putting them in increasingly high
demand for city-trippers, business travellers, groups
and financially prudent families. Amenities such as
self-catering kitchens, the availability of larger rooms
for families to share, games and movie rooms to keep
guests of any age entertained on site make these hostels
a particularly high demand choice.
IPIN’s current Secure Exit StrategyTM
application –
EVOLUTION LIVERPOOL – is progressing rapidly with over
50% of all units now allocated. The key features of this
investment are:
• 18% annualised returns
• Maximum 3 year term
• Invested deposit protected
*Melvin-Gold Consulting 2011
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CLICK HERE FOR MORE!
EVOLUTION LIVERPOOL
The Brief.

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