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Instruction for use. - Smuts _ Taylor

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Instruction for use. - Smuts _ Taylor Powered By Docstoc
					Instruction for use.                                            Canary Wharf E3

1. Click on the "Plot Details" Tab in the bottom left below.
2. This sheet gives you an overview of each of the plots.
3. Once you have decided what plot you are interested in click the "Purchase Breakdown" Tab below.
3. Use the white drop down box to pick the plot you want to look at.
4. If applicable, be sure to enter the exchange rate in the second white box
5. Throughout the sheet there are numerous white boxes. The info in these can be changed to give you the outcome of various scenarios.
   You are free to increase or decrease the rates that we have used and see how these changes will affect your cashflow.
            a) You can choose the Realistic rental.
            b) You can choose the letting fee you will pay
            c) You can choose your interest rate
            d) You can increase or decrease the property markets growth
            e) You can increase or decrease the Rand's (ZAR) devaluation against the Pound (GBP)

Feel free to change any of the above fields as often as you like. They will provide you with a number of different structures for the deal.
                                                                                               Canary Wharf E3




                              Unit Number              1                 Accommodation                1 Bed/1 Bath
Property details & pricing




                                                                         Floor                                  2
                                                                         Size (Sqft)                           515

                              Exchange Rate           15                 Purchase Price £                    292,478
                              (if applicable)
                                                                                       GBP £                 ZAR R
                              Reservation Fee                                            1,500                22,500
                              Exchange Deposit                   5%                     14,624               219,359
                              Interim                            5%                     14,624
                              Typical Mortgage Deposit          15%                     42,372                635,576
                              Mortgage Amount                   75%                    219,359              3,290,378
                              Amount due on Completion          100%

                                                              Timeline                 GBP £                 ZAR R
                              Reservation Fee                 1 day                      1,500                22,500
                              Finders Fees@2.5%+VAT           7days                      8,592               128,873
Breakdown of capital outlay




                              Exchange Deposit    5%          4-6 wks                   14,624               219,359
                                                                                        24,715               370,732

                              Interim payment 1       2.50%   6 months                    7,312                  109,679
                              Interim payment 2       2.50%   12 months                   7,312                  109,679
                              Mortgage Deposit          15%   Q3 2010                    42,372                  635,576
                              Completion Cost
                                        Stamp duty tax                                      8,774                131,615
                                        Solicitors fees                                     1,400                 21,000
                                        Valuation survey                                      400                  6,000
                              Post Completion
                                        Furniture                                         2,500                37,500
                                        Flooring                                              -                      -
                                        Appliances                                            -                      -
                                                              Total                      94,785              1,421,781

                                                                                       GBP £                 ZAR R
                              Rental valuation                                           1,200                 18,000
Breakdown of holding costs




                              Letting agents fees
                              Choose rate            0%                                         0                      0
                              Monthly mortgage payment
                              Choose rate          6.00%                                    1,097                 16,452
                                                              Monthly Total                   103                  1,548

                              Allowance for void periods (See notes below)                  1,012                 15,186
                              Annual ground rent                                              515                  7,725
                              Annual service charges                                        1,236                 18,540

                                                  Total allowance per anum                  1,525                 22,874
Potential capital growth     Year of ownership                                   Year 1        Year 2        Year 3        Year 4        Year 5
                             Choose estimated % growth                            0%            2%            3%            6%            9%

                             Estimated future value                               292,478        298,328      307,277        325,714      355,028
                             Capital growth                                             0          5,850        8,950         18,437       29,314
                             Less mortgage                                        219,359        219,359      219,359        219,359      219,359

                             Equity                                                 73,120        78,969     87,919          106,356      135,670

                             Return on investment                                       0%             6%          9%            19%            31%

                                                                                 Year 1        Year 2        Year 3        Year 4        Year 5
Potensial returns in Rands




                             Total equity in ZAR                                1,096,793      1,184,536 1,318,783        1,595,333 2,035,047
                             If ZAR devalues against the
                             GBP by         5%     pa
                             Then exchange rate will be:                         15.75          16.54      17.36           18.23      19.14
                             Then total equity in ZAR will be:                  1,151,632      1,305,951 1,526,657        1,939,137 2,597,293

                             Then return on investment:                           81%            92%          107%          136%          183%




                             The developer is offering a 2yr mortgage payment period:
                              1. developer will take full responsibility for letting the apartment post completion
Notes




                              2. no letting or management fee will be charged (Normally around 8-10% of rent)
                              3. should there be any void periods, your mortgage will be paid in full, up to a 2yr period
                              4. No tax liability for rental income.
                              5. Appliances and flooring included.

                             This material is intended for illustration purposes only, and may change under certain circumstances.
                             Consequently, it should be treated as GENERAL GUIDANCE ONLY, and cannot be relied upon as accurately
                             describing any of the Specified Matters prescribed by any Order made under the Property Misdescriptions Act
                             1991. This material does not constitute a contract, part of a contract, or a warranty. The contents do not
                             constitute financial advice in any way. You are required to keep the contents of the information contained in
Disclaimer




                             this document confidential. It may not be copied or distributed or otherwise made available without the express
                             consent of Smuts and Taylor Ltd (“the Company”). Mortgage applications are subject to status and there is no
                             guarantee that applicant will obtain a mortgage. Investing in property can be a risky business just like any
                             other investment. The Company does not give financial advice under the regulations of the financial services
                             authority. Neither Smuts and Taylor Ltd nor any of its partners, directors, employees or representatives will be
                             liable for damages arising out of or in connection with the use of information provided in this document. You
                             should seek independent professional advice before making any investment. Historical growth in property
                             prices does not necessarily means that prices will increase in the future. Rents and property values can go
                             down as well as up. Your property may be repossessed if you do not keep up payment on your mortgage.
                                        cb981482-ec9e-4971-b924-1bb3fef08349.xls 8/23/2011

      Canary Wharf E3
      Unit Specifications

No.   Plot   Floor    Accomodation     Sqft         View      Carparking   GR/pa   SC/pa    Price/Sqft   Purchase Price    Rent
 1     203     2       1 Bed/1 Bath    515    Courtyard          tba       £515    £1,236      £568         £292,478      £1,200
 2     403     4       1 Bed/1 Bath    515    Courtyard          tba       £515    £1,236      £573         £295,279      £1,200
 3     502     5       1 Bed/1 Bath    515    TER BCL            tba       £515    £1,236      £580         £298,641      £1,200
 4     714     7       1 Bed/1 Bath    520    Park & Bridge      tba       £520    £1,248      £587         £305,234      £1,200
 5    1014    10       1 Bed/1 Bath    519    Park & Bridge      tba       £519    £1,246      £582         £301,818      £1,200
 6    1111    11       1 Bed/1 Bath    498    Penthouse          tba       £498    £1,195      £620         £309,000      £1,200
 7     421     4       1 Bed/1 Bath    511    River              tba       £511    £1,226      £597         £305,000      £1,200
 8     104     1       2 Bed/1 Bath    643    Courtyard          tba       £643    £1,543      £565         £363,607      £1,475
 9    1015    10       2 Bed/1 Bath    616    Oblique River      tba       £616    £1,478      £591         £364,335      £1,475
10     211     2       Studio/1 Bath   332    Oblique River      tba       £332     £797       £633         £210,000       £950
11    1112    11       Studio/1 Bath   340    Penthouse          tba       £340     £816       £691         £235,000      £1,000

				
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posted:8/24/2011
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