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Contents · Market snapshot · Market update · In the news · Country profile · And finally
· This home sold for £16,500 · We have others just like it · 20% yields achievable · Instant income · Fully managed · No maintenance costs · No insurance costs · No financing required · Prices start at just £10,000 01235 553569
availability
WPG TV
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April 2012 |
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Market snapshot
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Market update The growth figure surprised a number of market analysts and commentators as the general feeling was that the UK would avoid a double dip recession. However, recession is still not a certainty as this figure will be revised a number of times over the coming months as yet more data is analysed. indeed, there is a strong chance that it may well move to positive territory which would provide a psychological boost to the markets and general confidence. UK House prices have continued to tread water during the last month, with the main house price surveys showing some falls and some gains. The Nationwide house price index reported a fall in prices of 1% during March. Robert Gardner, Nationwide’s chief economist comments: "A slowdown was to be expected, given the imminent expiry of the stamp duty holiday, which had provided a temporary boost to house prices in early 2012 as buyers brought forward purchases that would otherwise have taken place later in the year". "This dampening effect on housing market activity and prices may fade over the course of the summer, especially if the wider economic outlook begins to improve and other policy measures, such as the Government’s NewBuy scheme are successful in supporting buyer demand". In contrast, the Halifax house price survey revealed an increase for the month of 2.2%. The more accurate 3 month survey showed a tiny quarterly change of minus 0.1%. Commenting, Martin Ellis, housing economist at Halifax said:"House prices in the first quarter of 2012 were little changed compared with the final quarter of 2011, showing a decline of just 0.1%. This was the same as the slight fall recorded between the third and fourth quarters of 2011. The underlying trend therefore indicates broad stability in UK house prices. The more volatile monthly figures continue to fluctuate as a result of the historically low level of sales volumes, increasing by 2.2% in March following February’s 0.4% fall". The Hometrack survey reported an increase of 0.2% for the month which is somewhat stronger than previous months. The general picture for UK house prices continues to be one of stability. We are not seeing substantial increases or decreases which indicates that the market continues to ride difficult economic conditions with relative strength, especially when compared to many other housing markets in developed nations around the world.
In the news UK house prices ‘expected’ to rise 3.9% in 6 months The latest Housing Market Sentiment Survey from Zoopla shows that 67% of British home owners expect house prices to rise over the next six months and there are positive signs that lack of mortgage availability has eased over the last quarter. This is the highest proportion of home owners predicting property price growth since the first half of 2010 and in stark contrast to sentiment at the end of 2011 when only 55% of owners were predicting prices to climb. In addition to the rise in overall confidence, homeowners are also more bullish now about how much they expect average house prices to rise over the next six months. At the end of 2011, owners expected prices in their local area to increase 2.2% on average. Over the last quarter this has risen to 3.9%, again, the highest price growth expectation in almost two years. Confidence amongst home owners in London is at a near all-time high with 82% of property owners in the capital now confident of property price rises over the next six months. And owners in the capital are predicting that house prices in London will grow 5.5% by October. Prices rise for Turkish property Regionally they increased 1.06% in Adana, 0.75% in Ankara, 0.49% in Antalya, 1.18% in Istanbul, 0.85% in Izmir and 0.33% in Kocaeli. New home prices increased by 1.28% compared with the previous month and are 11.62% higher than they were in March 2011. In terms of size of properties, those of between 51 and 75 square meters increased by 1.03%, those between 76 and 100 square meters increased by 1.32%, those between 101 and 125 square meters increased by 1%, those between 126 and 150 square meters increased by 1.21% and those at 151 square meters and over increased 1.14%, all compared with the previous month.
Region profile – Canada · Full name – Canada · Location – North America · Capital – Ottawa · Government – Federal parliamentary democracy and constitutional monarchy · Economy - 10th by GDP (Nominal) (IMF) · Currency - Canadian Dollar ($) · Population – 34.7m (2012 estimate) · Language – English and French
The 2nd largest country on earth by total area, beaten only by Russia, yet with just 20% of Russia’s population, Canada is a place of huge extremes. Mountain ranges merge into fertile plains and farmland, the Atlantic and Pacific Oceans batter the East and West coasts whilst a multitude of islands stretch out into the Arctic Ocean to the North. Vast expanses of northern wilderness give way to modern, vibrant cities in the south where most of the country’s inhabitants reside. In fact over 90% of the population live within 200km of the US border. With such a large interior, inland temperatures can be brutal, plunging as low as minus 30°C and soaring into the high 30’s in the nation’s capital, whilst the far north remains in a permanently frozen state. The lower coastal areas experience less extremes and enjoy a more temperate climate with substantial rainfall in many areas. Canada has an abundance of natural resources making it a very wealthy nation, but the country also boasts a strong manufacturing sector producing metals and plastics as well as automotive products and heavy machinery. As one of the top 10 countries in the world in which to live according to International Living Magazine, Canada has become one of the top nations in which to relocate with the city of Vancouver ranking particularly highly as the 4th best city in which to live worldwide, in terms of quality of living. Why we believe Canada is a great place to invest Canada is a highly advanced and stable country, both politically and economically. Good economic management has enabled the country to ride the recent recession better than any other G8 nation. This is mainly due to the fact that strong balance sheets in Canada stood it in good stead to endure the recession and emerge into recovery, whilst the flow of credit was not disrupted as it was in other nations and a large pool of savings were available to finance spending when income fell temporarily. According to a new report from the World Economic Forum, Canada has the most sound financial system in the world. The country is now well placed to return to strong growth especially as demand for raw materials and manufactured goods increases worldwide. The Canadian tourism sector is very healthy with many overseas visitors attracted by the country’s incredible natural beauty and outdoor activities, including world class skiing which can often be more cost effective than many European and American ski resorts. The cities and coastal regions also draw huge numbers of visitors each year. According to the United Nations World Tourism Organisation (UNWTO), Canada is the 15th most visited country in the world, just 1 place behind Greece. During 2008 it welcomed 17.9m visitors (equivalent to over 50% of its entire population), but of course this does not take into account home grown tourism which accounts for a huge slice of the overall tourism sector. We currently have a superb investment opportunity in Nova Scotia on Canada’s Atlantic coast. This world class resort and country club will attract high numbers of domestic and international visitors resulting in high investment returns. Right now you can invest with just £20,000, you could even invest using your existing pension fund. Take a look here for more detail and click on the Canada tab. And finally During the last month we have had a situation of increasing drought in the UK, with the South West, Midlands and even more northerly regions now joining the South East in official drought conditions. Bizarrely, at the same time we have experienced torrential rains and severe flooding. Just this morning I was surprised to see how fast the Thames is now flowing through Abingdon, something that we have not seen for well over a year as normally it looks more like a lake than a river. Anyway, why am I talking about the weather? Well it got me thinking. The situation of drought and flooding is in many ways similar to the property investment industry. During the heady days of the buy to let boom, a time when many people (mostly amateur investors) were buying property in much the same way that they would buy hot cakes, we were in many ways in a drought. Property prices were high, apartment blocks were being thrown up as if there was rental demand to meet the growth, and many unethical property investment clubs were charging enormous amounts to buy them. I know it sounds odd, but really there was a drought of good, well priced, high performing investment properties available. Today, it could be considered that we are in the last days of a flood. A flood that has lasted for a few years. There are plentiful opportunities to pick up solid investment properties with strong rental demand and good long term returns at excellent prices. We have been able to secure 2 and 3 bedroom houses at around 30% below market value, HMO (multi let) properties with immediate cash flow and commercial property with returns of 10% per year. None of this was available during the buy to let drought. In fact, the last substantial property investment flood in this industry was back in the early 1990’s when a number of serious property investors snapped up bargains and made eye watering returns over the next 20 years. Look further afield and you’ll find even more incredible opportunities literally flooding the market. In Spain, beautiful properties can be snapped up for a fraction of the prices we saw just a few years ago, and in the United States (a market in which we are heavily involved) entire family homes can be purchased outright for the cost of a basic family car (see our star property at the top of this newsletter). Take the example of billionaire investor, Warren Buffett who recently said in an interview: "If it were realistic to do so, I’d buy a couple of hundred thousand single family homes"!!! Just as the water companies need to capture and store water which is currently running off of our island nation into the sea, property investors should be building their portfolios with the flood of superb investment properties which are currently on offer all around the world. It won’t last for long, as economic growth returns bargains will quickly start to dry up. For those who acted, strong returns will be their reward. Just make sure you are one of them. Why not give us a call and see how we can help you to achieve exactly this. To your success Kevin Wilkes
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The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE The Worldwide Property Group is a marketing agent for developers and whilst we endeavour to ensure the accuracy of information contained in this site, including figures and forecasts at the time of publication, the Worldwide Property Group does not guarantee or take responsibility for their accuracy. Images are representative of the types of property we offer and may not be of actual opportunities offered by us. Some images may be computer generated. |
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Archive for the ‘Newsletter’ Category
Global Investor March 2012
Friday, May 18th, 2012|
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Contents · Market snapshot · Market update · In the news · Country profile · And finally
· This home sold for £16,500 · We have others just like it · 20% yields achievable · Instant income · Fully managed · No maintenance costs · No insurance costs · No financing required · Prices start at just £10,000 01235 553569
availability
WPG TV
Don’t miss it!!!
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March 2012 |
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Market snapshot
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Market update So is this reflected in the housing market? The UK housing market normally experiences a surge of activity at this time of year – the so called ‘Spring bounce’. 2011 saw a minimal increase in activity, however, 2012 is shaping up to be a whole different story. The Hometrack house price survey reports zero change on house prices for last month, however the survey also monitors changes in other market indicators such as those focused on supply and demand. It is this that is looking interesting. Richard Donnell from Hometrack comments: " February saw a marked improvement in housing market conditions off the back of a robust seasonal upturn in demand. Over February the number of buyers registering with agents grew by 18% – the strongest level of demand seen since the start of the downturn and higher than the 15% increase in potential buyers recorded in February 2009." It’s a similar story with Nationwide’s house price index. The index reveals prices rose 0.6% during February but other measures also re-enforce those reported by Hometrack. Nationwide’s Chief Economist, Robert Gardner said: " Measures of activity in the housing market have picked up, with the number of housing transactions rising by 23% y/y in January and the number of UK mortgage approvals – a leading indicator of sales – up 36%." Although current difficulties in the Eurozone have still to be overcome, across the Atlantic the US economy certainly seems to be gathering pace. Unemployment is falling, large sectors such as car manufacturing are growing strongly and there are strong signs that the housing market is starting to recover, and where they lead we tend to follow. The UK’s Olympic year is certainly looking rosier.
In the news Private landlords should be wary of relying on photos for inventories Photographs and video can provide good illustration, but are not at all helpful without a detailed inventory, it says. The association believes that inventory reports should contain a full description of a property and its contents, with detail on every bit of damage and its exact location at the start of a tenancy. This can be supported with photographs and video but these need to be of a high quality, so that any damage can be seen clearly. ‘We want landlords and agents to be better informed in the event of a dispute, that means providing quality evidence to substantiate their claims for withholding the deposit,’ said Pat Barber, chair of The AIIC. ‘The law clearly states that the deposit remains the tenant’s money and that they are entitled to get it back at the end of their stay, provided they have met the terms of the tenancy agreement, so the onus lies with the agent or landlord to provide proof,’ she explained. I’d buy a couple of hundred thousand single family homes says Warren Buffett Buffett said that’s because he believes purchasing a home with ultra-low rates and holding it for the long-term has become a better investment than stocks right now. "Housing will come back, you can be sure of that," Buffett wrote in his annual letter to shareholders recently. Buffett forecasts an increase in household formations, as more people who moved in with their parents or family members during the recession look to move out and get their own home soon. Buffett said the recovery in the housing market could vary quite a bit among local housing markets, however, he did not provide a timeline of when he expected a full housing recovery.
Region profile – USA · Full name – United States of America · Location – North America · Capital – Washington DC · Government – Federal presidential constitutional republic · Economy - 1st by GDP (Nominal) (IMF) · Currency - US Dollar ($) · Population – 308m (US census bureau) · Language – English
The United States conjures up images of good living. Big cars, spacious homes, huge shopping malls, world class theme parks and every kind of landscape imaginable – it’s the American dream. At almost 10m square kilometres and with over 300 million people, the United States is the third largest country on earth by both total land area and population. With the biggest economy in the world and the highest military budget by far (43% of global military spending), the USA is the world’s only remaining super power. Blessed with some of the planet’s most spectacular landscape, from the Nevada Desert to the Florida Everglades; the Rocky Mountains to the prairies of the Midwest, and the ancient forests of the west coast to the tropical beaches of the south, this is a country that really does have it all. The United States is a relatively new country. Gaining independence from Great Britain in the late 18th century it has grown dramatically ever since. A melting pot for countless diverse nationalities, the country is made up of people from all corners of the world and continues to draw millions of people each year all searching for their own piece of the American dream. This is also a highly visited country. 2nd in the world by visitor numbers, tourism adds billions of dollars to the American economy annually. Home of the theme parks, Florida alone welcomes over 5 million international visitors each year. Why invest in the USA? In recent years the USA has been particularly badly impacted by the global financial crisis. Several previously buoyant states such as California and Florida have been particularly badly hit whilst many well known cities including Detroit and Las Vegas have experienced devastating levels of foreclosure. Property can now be purchased very cheaply right across the country and in some of the very finest locations thereby offering some irresistible investment potential. As a result of the difficulties, property prices in many areas have fallen by as much as 70% with the level of bank foreclosed property reaching 5 to 10 times the long term average in some of the worst hit regions. This has resulted in many people having to turn to the Department of Housing and Urban Development (HUD) housing choice voucher programme more commonly known as section 8. This has, however, opened up a huge opportunity for investors to not only purchase excellent property at well below even build cost but to also benefit from high tenant demand, tenant screening and rental payments paid directly by the US government. Under this scheme net yields of between 10% and 15% are easily achieved and future capital growth looks exceptional. Economically, the country now appears to be turning a corner. With falling unemployment, a strengthening car industry and predicted GDP growth of 1.8% in 2012, it won’t be long before house prices recover strongly. The United States without doubt currently offers some of the best property investment opportunities in a generation. It deserves the attention of any serious property investor. We currently have a number of unbelievable property investment opportunities in the USA. Click here for more details of these and our other great property investment opportunities around the world. Or take a look at our video showing one of our typical USA investment properties. Click below for the video.
And finally Every now and again an investment opportunity presents itself that really stands out as something quite exceptional. As a result of our continuous and extensive research we recently found one such opportunity, and it has been received with far more enthusiasm than we initially expected with the first allocation selling out in just a matter of days. What is the opportunity that I’m talking about? United States Land Contracts. The term ‘land contract’ is actually a little misleading as this is not a land investment. Land contracts are pretty much unknown in the UK and we are in fact one of the only businesses currently offering these to UK investors. These are however common place in the United States, and with very good reason as they carry a number of benefits to all parties involved. Quite simply, a land contract is in effect very similar to owning the mortgage note/deed on a house much the way the banks do here in the UK. As the investor, you will hold a land contract/mortgage note on a house, with the home occupier (buyer) paying you the monthly mortgage payments as you are, in effect, the bank. With our land contracts, the investor (you) buys the property at a price heavily below market value. The buyer then purchases the property in agreed monthly payments to you over a set period (in most cases 15 years). These payment are often lower than the cost of renting and at the end of the 15 year period the buyer owns the property outright. You, as the land contract/mortgage provider have no responsibility for the upkeep of the property, the taxes on the property or any property insurances etc (just like any bank in the UK). In return for this complete armchair investment you can expect to receive yields often as high as 20% per year over the 15 year period. In a nutshell, the purchaser is able to buy a home often with a lower monthly payment than that required to rent and the investor is able to make exceptional returns but without any of the problems associated with being a landlord. You can see why we’re so excited by this opportunity and why the first allocation sold out in a matter of days. At the time of writing we just secured a new allocation of properties, so if you are interested in finding out more please call us on 01235 553569. Or click here for more information. To your success Kevin Wilkes
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The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE The Worldwide Property Group is a marketing agent for developers and whilst we endeavour to ensure the accuracy of information contained in this site, including figures and forecasts at the time of publication, the Worldwide Property Group does not guarantee or take responsibility for their accuracy. Images are representative of the types of property we offer and may not be of actual opportunities offered by us. Some images may be computer generated. |
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Global Investor February 2012
Wednesday, March 28th, 2012|
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Contents · Market snapshot · Market update · In the news · Country profile · And finally
· UK opportunity · Self storage units · Rapid market growth · Average returns of 10% pa · 6 year rent guarantee · Fully managed · Guaranteed buy back · Suitable for SIPP investment · Prices start at just £3,750 01235 553569
availability
WPG TV
Don’t miss it!!!
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February 2012 |
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Market snapshot
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Market update The Nationwide house price index for the month reveals a slight fall in the average price of 0.2%. The Hometrack house price survey indicates that there was no movement either way during the month, whilst the Halifax house price index shows an increase of 0.6%. Commenting on the figures Martin Ellis, Halifax housing economist said: "Prospects for house prices over the coming months will, to a large extent, depend on events in the Eurozone and the repercussions of developments there for the UK economy. If the UK can avoid a prolonged recession, we expect broad stability in house prices in 2012." Interestingly, the Rightmove house price survey which records average asking prices of all new property listed on the website reports an increase of 4.1%. This follows a fall last month of 0.8% and is the highest monthly increase since April 2002. Although Spring normally witnesses an increase in asking prices, the reported increase is both early and surprisingly strong. Rightmove believe this has been caused by a general scarcity of sellers leaving the figures to be fuelled by cash-rich market sectors where demand exceeds supply. Whether this increase in asking prices translates to an increase in selling prices remains to be seen. Rightmove also say there is some evidence of increasing housing market confidence with more mortgage deals currently available. In fact the number of products available with a 10% deposit is up a third on a year ago.
In the news UK landlords market confidence increases They highlighted rising tenant demand, high rents and reduced housing stock as the main reasons for boosting their assurance in the sector, the research from online lettings agency Upad shows. The research also revealed the different reasons landlords have such confidence. One landlord in Winchester said it was because of the good student housing demand and professional lets in the area while another in south east London said it was due to a lack of rental properties on the market. ‘My last let was snapped up immediately without any negotiation on the asking rent,’ he said. In addition, landlords have noticed that interest among renters is increasing. ‘I am more confident due to the amount of response I have had to my recent rental property. Having sold a property last year, the difference in the amount of viewing for my rental property in comparison to my property for sale has been very encouraging,’ said another landlord. US property sales up for 7th month in a row It shows that real estate sales are now 3.4% above levels seen a year earlier in the 53 metropolitan areas covered by the survey. Perhaps due to falling foreclosure numbers, for the 19th consecutive month, inventory levels dropped in January. The average inventory of homes for sale dropped 24.1% from a year earlier and 4.2% from December. ‘If sales continue ahead of last year’s pace and inventory does not increase significantly, we could start to see increasing home prices this year,’ said RE/MAX chief executive officer Margaret Kelly. Of the metro areas included in the January survey, 20 saw double digit jumps from a year earlier, and 36 experienced higher sales, including Albuquerque up 33.9%, Wilmington-Dover, Delaware, up 33.2%, Atlanta up 26.3%, Indianapolis up 19.6%, Providence, Rhodes Island, up 19.6%, Nashville up 19.5%, Cleveland up 18.9% and Chicago up 15.3%.Meanwhile, data from the Commerce Department shows that housing starts rose 1.5% in January, the highest level since October 2008.
Region profile – UK · Full name – United Kingdom of Great Britain and Northern Ireland · Location – North Western Europe · Capital – London · Government – Parliamentary Democracy and Constitutional Monarchy · Economy - 7th by GDP (Nominal) (IMF) · Currency - Pound Sterling (£) · Population – 62.2m (World Bank) · Language (recognised) – English, Irish , Ulster Scotts, Scottish Gaelic, Scots, Welsh & Cornish
The world’s first industrialised nation, the UK was the foremost world power during the 19th and early 20th centuries with an empire that extended to every corner of the planet. The economic cost of 2 world wars and the decline of the empire somewhat reduced the country’s global influence, however, the UK remains a major power with the 7th largest economy and 4th highest defence spending in the world. A land of great diversity, from areas of mountainous wilderness in the north to long sandy beaches in the south, from modern dynamic cities to sleepy country villages, the UK is the 6th largest tourist destination in the world and tourism makes up a substantial sector of the economy along with manufacturing, agriculture, pharmaceuticals and oil and gas extraction. However, almost three quarters of the UK’s GDP is now made up of the service sector (dominated by financial services). Leader of the 3 ‘command centres’ for the global economy (along with New York City and Tokyo) is London. The world’s most visited city and home to the largest number of foreign bank branches in the world (including the headquarters of the world’s largest bank HSBC), London is the giant of international business, finance and insurance. A highly advanced and multicultural nation, the UK has brought and continues to bring a great deal to the wider world including culture, music, literature, invention, the list goes on. Why invest in the UK? During the 20th century property ownership took hold in the UK and today the population enjoys one of the highest rates of ownership in the world. However, in more recent years there has been a swing towards a more continental style rental culture. Driven by the need to be more mobile and flexible, and a change in beliefs, the rental market in the UK is growing. Add to this an increasing shortfall in housing stock, growing demand and the prospect of an upturn in property prices indicating a return to strong capital growth over the coming years and you have the recipe for an un-missable opportunity. Property investment in the UK extends well beyond residential buy to let. Commercial property, land, Holiday rentals, Hotel room investments, even garages and parking spaces all offer exciting opportunities for excellent return on investment. Costs of buying property in the UK are relatively low, straight forward and safe. Legal systems and financial systems are mature and provide great security for buyers and owners of property. If history teaches us anything it is that the UK property market provides excellent long term growth and there is no reason for this not to continue. In a nutshell, the UK offers relative safety and stability for property investors along with excellent capital growth potential, varied opportunities and low purchase costs. We currently have a number of superb opportunities in the UK with considerably higher returns than more conventional buy to let opportunities, such as: Multi let (HMO) opportunity with yields of up to 15% – Click here Commercial self storage opportunity with prices starting at just £3,750 (see star property) And finally Prior to the credit crunch and subsequent economic turmoil the buy to let industry experienced unprecedented growth and exposure. Unfortunately, this spawned a new phenomenon, that of the property club. Very soon a large number of unethical companies found their place within this new sector. These were the days of ‘get rich quick property schemes’ and many inexperienced people got caught up in the frenzy that ensued. All too often, the only people who got rich quick were those behind these property clubs. Driven by the unquestioned belief that property prices would continue to increase at unsustainable rates, many of these new landlords were encouraged to borrow way beyond their means. We have all heard heartbreaking stories of people who have since lost everything as a result. The credit crunch was a time of reckoning for these businesses. As property prices started to fall and mortgages became more difficult to get, many of these businesses were sent into oblivion. As the dead wood was cleared from the industry a few strong businesses remained and flourished. These were the experienced property investment consultancies that based their business on customer service and market expertise as well as an ethical approach to property investment. Today however, with an improving mortgage market and strengthening economic conditions, the deadwood is returning to our industry. Once again we are starting to receive emails promising unrealistic returns, training courses and mentoring programmes with large price tags, and the lure of quick and easy wealth. This can’t be allowed to happen again. An experienced consultancy that believes in its products won’t charge for training or mentoring. These are essential services designed to ensure that clients understand the business of property investment. An ethical company will make sure that their clients invest with their eyes open and that all care is taken to ensure that they are investing in the right products for their objectives. This is the responsibility of the business and certainly should not be a chargeable service. Your money should be used for investing!!! As an ethical and highly experienced market leading consultancy, the Worldwide Property Group has for many years campaigned for the introduction of regulation to make this industry a safer place for all concerned. We will continue to push for this, but in the meantime we warn you all to beware of businesses that over promise and charge for services that should be a standard part of their service offering. To your success Kevin Wilkes
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The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE The Worldwide Property Group is a marketing agent for developers and whilst we endeavour to ensure the accuracy of information contained in this site, including figures and forecasts at the time of publication, the Worldwide Property Group does not guarantee or take responsibility for their accuracy. Images are representative of the types of property we offer and may not be of actual opportunities offered by us. Some images may be computer generated. |
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Global Investor December 2011
Wednesday, January 25th, 2012 |
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This month’s Star property 
01235 553569
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| Market snapshot Global Interest Rates Exchange rates £1 buys:
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| Market update As we approach the end of 2011 it is interesting to look back and see just how resilient the housing market has been during what can only be described as an economic rollercoaster year. The Nationwide house price index reveals that UK house prices increased by 0.4% in November. Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “UK house prices increased by 0.4% in November, taking the annual rate of growth to 1.6%, up from 0.8% the previous month. The price of a typical home is now £165,798.” “House prices have remained surprisingly resilient in recent months, despite the deterioration in the economic outlook. But, with the UK economic recovery expected to remain sluggish well into 2012, house price growth is likely to remain soft, with prices moving sideways or drifting modestly lower over the next twelve months.” This is a view shared by Halifax’s housing economist, Martin Ellis who said: “Prices fell by 0.9% between October and November. This followed October’s 1.2% gain, therefore, continuing the very mixed monthly pattern seen this year. Overall, house prices have remained remarkably stable in 2011 despite the difficult and deteriorating economic climate and the substantial pressure on households’ finances. The UK average price now is only marginally lower than at the end of 2010. In addition, activity has recently shown a few signs of strengthening a little. We expect the market to remain broadly unchanged in terms of both prices and sales over the coming few months as demand and supply conditions alter little.” The Hometrack house price survey also recorded a decline in prices for the month at 0.2%. However, this is a tiny figure and just re-enforces the fact that the market is holding firm against a backdrop of unprecedented global economic instability. With little change expected next year in either direction, and rental prices anticipated to continue their upward trajectory, this very much remains an investors market. In the news
In the last month there have been more searches for property in France than ever before, according the latest monthly report from Rightmove Overseas. Currency expert Charles Purdy, managing director at Smart Currency Exchange, said they have also seen an increase in buyers seeking money transfers to buy in France. ‘Our experience is very similar with France continuing to be ever popular. Buyers tend to be in a position to act quickly and therefore get better value for money. Also we have seen some weakness in the euro which has reduced the sterling cost of their new property,’ he said. ‘The recent upheaval with David Cameron exercising his veto has seen the euro weaken to over €1.18/£1, a level last seen in the first few months of 2011. Market forecasters are predicting further weakness for the euro which should encourage increased interest in buying in France and elsewhere in the Eurozone,’ he added. Bank united over rates and quantitative easing The Bank of England voted unanimously to keep interest rates on hold at 0.5% and quantitative easing at the same level of £275bn earlier this month, according to minutes of the meeting. Members of the Bank’s Monetary Policy Committee (MPC) concluded the risks for growth and inflation had not changed over the last month. But the minutes added that further quantitative easing “might well become warranted in due course”. Region profile – USA
The United States conjures up images of good living. Big cars, spacious homes, huge shopping malls, world class theme parks and every kind of landscape imaginable – it’s the American dream.
At almost 10m square kilometres and with over 300 million people, the United States is the third largest country on earth by both total land area and population. With the biggest economy in the world and the highest military budget by far (43% of global military spending), the USA is the world’s only remaining super power. Blessed with some of the planet’s most spectacular landscape, from the Nevada Desert to the Florida Everglades; the Rocky Mountains to the prairies of the Midwest, and the ancient forests of the west coast to the tropical beaches of the south, this is a country that really does have it all. The United States is a relatively new country. Gaining independence from Great Britain in the late 18th century it has grown dramatically ever since. A melting pot for countless diverse nationalities, the country is made up of people from all corners of the world and continues to draw millions of people each year all searching for their own piece of the American dream. This is also a highly visited country. 2nd in the world by visitor numbers, tourism adds billions of dollars to the American economy annually. Home of the theme parks, Florida alone welcomes over 5 million international visitors each year.
Property can now be purchased very cheaply right across the country and in some of the very finest locations thereby offering some irresistible investment potential. As a result of the difficulties, property prices in many areas have fallen by as much as 70% with the level of bank foreclosed property reaching 5 to 10 times the long term average in some of the worst hit regions. This has resulted in many people having to turn to the Department of Housing and Urban Development (HUD) housing choice voucher programme more commonly known as section 8. This has, however, opened up a huge opportunity for investors to not only purchase excellent property at well below even build cost but to also benefit from high tenant demand, tenant screening and rental payments paid directly by the US government. Under this scheme net yields of between 10% and 15% are easily achieved and future capital growth looks exceptional. The United States without doubt currently offers some of the best property investment opportunities in a generation. It deserves the attention of any serious property investor. We currently have a number of unbelievable property investment opportunities in the USA. Click here for more details of these and our other great property investment opportunities around the world. Tax matters
France and Spain are among the most popular choices for Brits buying property abroad. Some may be deterred by the image these countries have of being ‘high tax’ countries, particularly as they both have what are called ‘wealth taxes’, but this needn’t be so. However, it’s a good idea to be aware of the tax system in any country before you commit yourself to buying, and this is where a professional adviser will prove invaluable. In particular, if you are considering buying a property in Spain, or you already own one, you should be aware that Spain is reintroducing its Wealth Tax with effect from 31 December 2011. Wealth Tax is a tax that is imposed on the capital value of your assets, whether they produce income or not. If you are resident in Spain, you will pay Wealth Tax on your worldwide assets. If you are not resident in Spain, you will only pay Wealth Tax on your Spanish assets. Broadly speaking, you will be considered resident in Spain for tax purposes if you spend more than half the year in Spain. If your assets – in Spain or worldwide, as the case may be – are worth more than €700,000, you will have to pay the new Wealth Tax. The rates of tax range from 0.2% to 2.5%. There is a partial exemption for the value of your home, so even if you live in Spain you may not have any Wealth Tax to pay at all. The Wealth Tax, or Impuesto Sobre El Patrimonio, was suspended with effect from 2008. In September the Spanish government announced that the suspension would be lifted for two years. The first tranche of Wealth Tax is payable on assets you may hold at 31 December 2011. France also imposes a Wealth Tax, but in contrast to Spain its minimum asset threshold was recently raised to €1.3m. There is also a partial exemption for those who have become resident in France within the last five years. In summary, owners of French or Spanish property worth close to or more than the thresholds would be well advised to seek proper, professional advice, as would those considering buying such property. Having said that, whilst tax is a consideration it should not be a reason not to buy! Rachel Finch is a tax partner at Burton Sweet chartered accountants, specialising in international tax. If you would like to contact Rachel, please email us at enquiries@w-wideproperty.com and we will put you in touch. And finally
Even during past economic downturns property has fared rather well as an investment. Sure, prices have fallen but never by 100% as with many stocks and shares. And of course with property, even if the price does fall you still have the original tangible asset. This provides future growth, thus quickly recouping any losses and then moving further into profit; and what a profit!!! Just look at the last decade to get an idea. Anyway, this got me thinking. How has the last decade compared to previous decades? So I downloaded Nationwide’s house price data right back to when their records began in 1973, and here’s what I found. In 1973 the average house price according to the Nationwide house price index was £9,767. Did you or your parents buy a house back then? So let’s break the average house down into 10 year periods. As the records start at 1973 we’ll use an 8 year period to get us started. In this 8 years house prices rose 143%. In the next 10 years they rose again, by 130%. In the following 10 years (and this covers the recession of the early 1990’s) they rose by 54%, and in the 10 years to date guess what? They rose further by 93%. There’s a pretty interesting pattern here wouldn’t you say? So let’s look ahead. Assuming this pattern repeats itself (and I certainly don’t know of anyone who thinks otherwise) the average house price in 38 years time could be a cool £2.7m. Once again, if you base this on an initial deposit of 15% (£24,989), and take interest payments out of the equation for simplicity, the return would be just over £2.5m. Now who wouldn’t be interest in an investment like that? To your success
Kevin Wilkes
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| The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com
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Global Investor November 2011
Wednesday, January 25th, 2012 |
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| Contents
This month’s Star property
01235 553569
Quick links Latest property
availability
WPG TV
FREE Property Investment Masterclass FREE SIM evening Don’t miss it!!!
Grab £250 cash
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November 2011 | ||||||||||||||||||||||||||||||||||||
| Market snapshot Global Interest Rates Exchange rates £1 buys:
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| Market update As the current debt crisis in the Eurozone continues to sweep across the continent, and impact on the economies of the wider world, there is increasing talk that the turmoil may result in property values falling in the UK. Is this really the case? Figures from the main market surveys for October certainly don’t show any evidence of a falling market, but rather a market that continues to stand firm showing great resilience in the face of economic crisis. The Nationwide house price index reported an increase in the average price of a property of 0.4%, with this and the previous month pretty much offsetting the 0.6% fall in August. Commenting on the figures Robert Gardner Nationwide’s chief economist said: “UK house prices increased by 0.4% in October, lifting annual house price growth into positive territory for the first time in six months. The price of a typical home was 0.8% higher than October 2010.” Halifax also reported a rise in prices for October with a surprising 1.2% increase, although this index has shown more volatility on a month by month basis. It is not until you look back at the previous 10 months that a more accurate picture of stability becomes apparent with 5 monthly increases, 4 monthly falls and 1 month that recorded no change. Reporting a slight fall in prices of 0.2% for the month, Hometrack is the only major price survey to record a fall. However the report also revealed some other interesting trends. Richard Donnell, Director of research at Hometrack comments: “On the supply-side, October registered a 1.3% increase in the number of properties listed with agents. Over the last 6 months supply has grown 11%.” Take a look at our newsletter next month for a snapshot of trends through this month. In the news US house sales pick up pace Total sales of completed transactions that include single family, townhomes, condominiums and co-ops, rose 1.4% to a seasonally adjusted annual rate of 4.97 million in October from a downwardly revised 4.90 million in September, and are 13.5% above the 4.38 million unit level in October 2010. A higher rate of contract failures has held back a sales recovery. Contract failures reported by NAR members jumped to 33% in October from 18% in September, and were only 8% a year ago. Contract failures are cancellations caused by declined mortgage applications, failures in loan underwriting from appraised values coming in below the negotiated price, or other problems including home inspections and employment losses. An ongoing positive trend is a steady decline in the number of homes on the market. Total housing inventory at the end of October fell 2.2% to 3.33 million existing homes available for sale, which represents an eight month supply at the current sales pace, down from an 8.3 month supply in September. Inventories have been trending gradually down since setting a record of 4.58 million in July 2008. Distressed homes, that is foreclosures and short sales typically sold at deep discounts, slipped to 28% of sales in October from 30% in September and 34% a year ago. All cash sales accounted for 29% of purchases in October, little changed from 30% in September and 29% in October 2010 with investors making up the bulk of cash transactions.Investors purchased 18% of homes in October, compared with 19% in September and 19% in October 2010. First time buyers accounted for 34% of transactions in October, up from 32% in September and 32% in October 2010. Region profile – Brazil
The world’s 5th largest country by area and population, Brazil is the economic powerhouse of Latin America. Covering almost half of South America and with over 4,500 miles of coastline Brazil is an immense country of great diversity. From the remote depths of the Amazon basin, to the bustling cities of Sao Paulo and Rio de Janeiro.
One of the four emerging economies referred to as the BRIC economic group (which also includes Russia, China and India), Brazil is well on the way to becoming a global economic power and is predicted to become the 4th largest economy on earth by 2050. Brazil’s economy is made up of many sectors but manufacturing and agriculture are the backbone of the country’s economy. Brazil has a strong aeronautical and automotive sector producing aircraft, cars and space technologies. In recent years Brazil has discovered massive oil reserves and is totally self sufficient with oil and gas. Although petrochemicals are a major economic sector, the country is also a global leader in terms of new cleaner energy technologies. In fact since 1976 cars in Brazil have had to run on a mixed petroleum/ethanol fuel with ethanol now accounting for around 25% of the mix. Interestingly, Brazil also has the world’s 2nd largest hydroelectricity plant. Because it was the world’s first sustainable energy economy, Brazil has provided a model that has been widely followed by many other leading nations.
With living costs at a fraction of many first world nations including the UK, even a luxury holiday in Brazil can cost very little. Of course the living costs are also a major attraction to increasing numbers of Europeans who are choosing to settle here. The North East coast in particular is seeing the construction of several luxury holiday resorts, and a new international airport at Natal set to open in 2014 (the 4th largest in the world) will enable the region to cope with the anticipated increase in visitor numbers. Surprisingly the flying time from London to Natal is much the same as that to Miami. Currently, Brazilian property is probably as cheap as it will ever be, and with huge capital growth potential, Brazil is a property investor’s paradise. Tax matters
The new rules, which will come into effect on 6 April 2012, will make it harder to qualify for the tax advantages furnished holiday lettings currently enjoy.There have been two significant changes announced so far: 1. If you make a loss in the year on a qualifying property it can be offset against your other income, potentially giving rise to a tax refund. New legislation will mean that losses may only be used against profits made by other furnished holiday let properties. This change means that if you only have 1 qualifying property, or if you make a bigger overall loss than you make a profit then the balance of the loss is just carried forward, you do not get relief against your other Income Tax. 2. A furnished holiday let property is any property in the UK or elsewhere in the European Economic Area (EEA) which is commercially let and meets certain letting criteria, which are also set to change. From 6 April, the number of days in a tax year for which the property must be available for letting to third parties to qualify as a furnished holiday let will increase from 140 days to 210 days. Secondly, the number of days for which the property must actually be let will increase from 70 days to 105 days. These changes mean that properties in areas with short seasons which had previously qualified for furnished holiday let treatment may no longer qualify for beneficial tax treatment.At the moment there is no word on whether the favourable Capital Gains Tax treatment of Furnished Holiday Lettings will also change in April, these include: 1. Provided that you have held the property for over 12 months, that you own over 5% of it, and that it meets the Furnished Holiday Letting criteria, then the property may qualify for Capital Gains Tax Entrepreneur’s Relief. This means that if the property is sold the rate of Capital Gains Tax payable could be reduced from 28% down to just 10%. 2. Currently, Furnished Holiday Lets qualify for certain Capital Gains Tax Reliefs, such as ‘Business Asset Roll-Over Relief’, this means that if you sell a qualifying property and reinvest the sale proceeds within 3 years in certain other business assets, you may be able to defer payment of Capital Gains Tax until you dispose of those new assets. Further details of the changes are expected in the March 2012 Budget. If you have a furnished holiday let property and are unsure how the changes may affect you, please email us at enquiries@w-wideproperty.com and we will put you in touch with Rachel Finch, Tax Advisory Partner at Burton Sweet. And finally
Ok, so we know there’s a problem. We know what it means for Eurozone economies, our own economy and those in the wider world. But I’ve been thinking; we all move in property investment circles, so how exactly does all this affect us? My honest opinion is, not really very much. This really is a question of two parts, the first being the UK and the second being all that is beyond our shores. Let’s look at the UK first. The UK is not part of the Eurozone so we are not directly responsible for dealing with the crisis unlike France and Germany. Because of this the financial impact of bailing out indebted nations such as Greece, Portugal and possibly Italy isn’t as significant for the UK as it is for the major nations of the Eurozone. Of course, we still pay into the International Monetary Fund (IMF) and the amount we pay has increased as a direct result of the Eurozone turmoil, and we also added substantial finds to the bailout package of the Irish republic, but for the other Eurozone bailouts it is the Eurozone nations that carry the financial burden and the risk. This is all good and well to a degree, but our trade with Europe is huge and the financial exposure of many of our banks (and our Government) to these economies is substantial. As we all know, this is adding further pressure to our fragile economic recovery and it may well also have an impact on capital values within the property sector, although there is little sign of this yet. Certainly, it has an impact on lending, an area that is already much contracted as a result of events in the last 3-4 years. So what does all of this mean to UK property investors? Well for one thing it means that more people are renting so rental prices are rising. As a result of the economic turmoil in the UK and Eurozone, interest rates are down and rental rates are up – a perfect combination for a property landlord! With demand for good rental property expected to remain at high levels for quite some time yet, upward pressure and thus monthly profits will remain. A decline in property values meanwhile also opens up more opportunity to property investors (especially those not so reliant on mortgage finance). Short term, this increases potential rental yields and longer term will result in greater capital appreciation. In essence, it creates a buyer’s market for those who have the funds to make acquisitions. So what about those people who invest in property in other nations? Well, I see little to be worried about here as long as you invest in good property in good locations. Much overseas property investment is in one way or another driven by tourism. Most tourism, by its very nature, normally involves visitors from other nations, so do we think that people from wealthy Northern Europe, Russia and North America will stop visiting Greece because of its economic problems? Or Portugal, or Spain or Italy? Of course not. A nation’s sovereign debt really doesn’t affect its ability to attract visitors and right now there are some jolly good opportunities for us property investors, especially those with cash. For example, despite Portugal’s well documented sovereign debt problems, 2010 was a record year for tourism income at its 5* resorts. Turkey was actually the fastest growing economy in the world during the first half of 2011, and Brazil’s economy grew by over 7% last year compared to a paltry 1% in the UK. You see, there is not a worldwide recession currently going on, just a selective recession in some bloated western economies. Property deals and healthy profits remain widely available, you just need to know where to look – Just take a look at our property pages and you’ll see what I mean. Don’t be scared by the headlines but rather embrace the opportunities that economic downturn has brought to us. We may never see such opportunity again in our lifetime. To your success
Kevin Wilkes
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| The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com
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Global Investor September 2011
Monday, October 3rd, 2011 |
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| Contents
This month’s Star property 
01235 553569
Quick links  Latest property
availability
 Brand new SIM event Don’t miss it!!!
 FREE Property Investment Masterclass  Newsletter archive
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September 2011 | ||||||||||||||||||||||||||||||||||||
| Market snapshot Global Interest Rates Exchange rates £1 buys:
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| Market update Once again, the headlines seem to be dominated by the current global economic turmoil. The Eurozone is experiencing its toughest test since its creation and things are still pretty tough on the other side of the Atlantic where economic growth in the United States appears to have weakened again. As a result of these difficulties, stock markets around the world have taken some nasty tumbles and the road continues to remain very bumpy with the FTSE 100 index currently bouncing between 5000 and 5400 points (10%-15% lower than 2 months ago). So what about house prices? Once again, they are broadly unchanged. Property is continuing to show incredible resilience at a time when we are seeing almost unprecedented economic instability. The Halifax house price index reports the largest change in the average UK property price for August with a decline of 1.2%. All the other major market surveys reveal a picture of minor changes with the Nationwide revealing a 0.6% fall, Hometrack a 0.1% fall and Rightmove a 0.7% increase in asking prices. As Nationwide’s chief economist, Robert Gardner said when commenting on the figures: “UK house prices declined by 0.6% in August, although this doesn’t change the picture of relative stability that has characterised the market over the past twelve months. Indeed, prices were broadly unchanged compared with August 2010 – just 0.4% lower.” Martin Ellis, housing economist at Halifax said: “As we have pointed out before, the current low volume of sales tends to make house prices volatile from month to month. The 1.2% fall in August follows three months when prices have risen. As a result, the more reliable quarterly change, which smoothes out some of the monthly volatility, shows a rise in prices of 1.0%.” Compare these changes to those seen in the stock markets and you start to see just how resilient the housing market has been. In fact, if we compare the FTSE 100 index to the UK average house price since the turn of the century we see that house prices right now are 115% higher (according to Nationwide) whilst the stock market is 28% lower. The question is, where would you put your money? In the news Figures show that property market performed better than expected this summer The UK housing market fared better than expected this summer, latest figures show, with estate agents reporting an increase in sales during the traditionally quiet month of August. According to the National Association of Estate Agents (NAEA), the average agent sold eight properties per branch, up from seven in July and compared to seven from 12 months ago. House-hunters also showed renewed interest as demand figures reached a four year high. The number of people registering to look for homes rose from 299 to 304 on average. Other figures showed the level of unsold stock on agents’ books dropping from 70 to 65. Data collated from the NAEA’s 7,000 members showed that many sales arose from three to four bedroom properties. ‘This Summer has seen the return of what you might call the serious seller, those who price realistically because they have a strong imperative to sell,’ said Wendy Evans-Scott, president of the NAEA.
Region profile – United Kingdom
The world’s first industrialised nation, the UK was the foremost world power during the 19th and early 20th centuries with an empire that extended to every corner of the planet. The economic cost of 2 world wars and the decline of the empire somewhat reduced the country’s global influence, however, the UK remains a major power with the 6th largest economy and 3rd highest defence spending in the world.
A land of great diversity, from areas of mountainous wilderness in the north to long sandy beaches in the south, from modern dynamic cities to sleepy country villages, the UK is the 6th largest tourist destination in the world and tourism makes up a substantial sector of the economy along with manufacturing, agriculture, pharmaceuticals and oil and gas extraction. However, almost three quarters of the UK’s GDP is now made up of the service sector (dominated by financial services). Leader of the 3 ‘command centres’ for the global economy (along with New York City and Tokyo) is London. The world’s most visited city and home to the largest number of foreign bank branches in the world (including the headquarters of the world’s largest bank HSBC), London is the giant of international business, finance and insurance. A highly advanced and multicultural nation, the UK has brought and continues to bring a great deal to the wider world including culture, music, literature, invention, the list goes on.
Property investment in the UK extends well beyond residential buy to let. Commercial property, land, Holiday rentals, Hotel room investments, even garages and parking spaces all offer exciting opportunities for excellent return on investment. Costs of buying property in the UK are relatively low, straight forward and safe. Legal systems and financial systems are mature and provide great security for buyers and owners of property. If history teaches us anything it is that the UK property market provides excellent long term growth and there is no reason for this not to continue. In a nutshell, the UK offers relative safety and stability for property investors along with excellent capital growth potential, varied opportunities and low purchase costs.
And finally
To your success
Kevin Wilkes  |
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The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com The Worldwide Property Group is a marketing agent for developers and whilst we endeavour to ensure the accuracy of information contained in this site, including figures and forecasts at the time of publication, the Worldwide Property Group does not guarantee or take responsibility for their accuracy. Images are representative of the types of property we offer and may not be of actual opportunities offered by us. Some images may be computer generated. |
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Global Investor August 2011
Friday, September 16th, 2011 |
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| Contents
This month’s Star property 
01235 553569
Quick links Latest property
availability
Brand new SIM event Don’t miss it!!!
FREE Property Investment Masterclass Newsletter archive
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August 2011 | ||||||||||||||||||||||||||||||||||||
| Market snapshot Global Interest Rates Exchange rates £1 buys:
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| Market update In a month that saw dramatic news of potential US default and ongoing difficulties in the Eurozone, UK house prices once again demonstrated considerable resilience to global financial shocks. Across all of the main market surveys the picture is much the same, stable and steady. The Nationwide house price index reveals that house prices on average rose by 0.2% whilst figures from the Halifax survey of house prices painted the same picture with an overall increase of 0.3%. Commenting on the figures, Nationwide’s chief economist Robert Gardner said: “Stability has been the watchword for the UK housing market over the past 12 months. Sluggish demand for homes, combined with only a gradual rise in the supply of available properties, has helped to keep property prices relatively stable.” Reinforcing this view Martin Ellis, housing economist at Halifax said: “Overall, there has been little change in either the level of house sales or the number of properties on the market for sale since late 2010. These steady market conditions have helped to stabilise house prices in 2011 following last year’s modest decline.” Showing a slight fall in house prices during July of just 0.1%, the Hometrack house price survey recorded exactly the same pattern as that revealed in it’s May and June results. Will the effect of dramatic activity in the stock markets around the world during August be revealed in the August house price figures? Or will UK house prices continue to demonstrate great resilience in the face of unbelievable instability within the world’s financial markets. Well one thing is certain, many investors will be looking to put their funds into stable investment sectors right now, and I think we all know which is the best don’t we?
In the news Bank votes unanimously to keep interest rates on hold All nine of the Bank of England’s Monetary Policy Committee (MPC) voted to keep interest rates on hold at its August meeting, minutes have shown. Two members who had regularly voted for an increase to ward off rising inflation ditched their stance in the face of a weaker economic environment. The vote means interest rates are likely to stay at the current record low of 0.5% for the foreseeable future. The Bank of England has held rates there since March 2009. Minutes from the monthly meeting showed MPC members Spencer Dale and Martin Weale voted to maintain rates rather than raise them. In the past few months, both have been voting for higher borrowing costs. “The hawks have thrown in the towel at last,” said Nida Ali, an economic adviser to accountants Ernst & Young. Victoria Cadman of Investec, said: “I’m particularly surprised at the minutes… I really hadn’t expected to see Dale or Weale change their position. The tone of the minutes is particularly dovish – it certainly pushes back the possibility of rate hikes well in to the distant future.” Region profile – Caribbean
The Caribbean is a region consisting of more than 7,000 islands in the Caribbean Sea. Landing here in 1492 Christopher Columbus believed he had reached the Indies (Asia), it is this that brings the name ‘West Indies’ and to this day the people of the Caribbean are collectively referred to as West Indian.
Many European nations including Britain, France, Spain and The Netherlands have had huge influence in this region, and on many islands these different cultures are still evident today in terms of language, customs, cuisine and legal and political structures. The Caribbean is one of the planet’s premier holiday destinations drawing millions of visitors primarily from North America, Europe and increasingly Russia and beyond. Tourism is the mainstay of many Caribbean nations accounting for 30% of total gross domestic product ($20 billion). Since 1990 international arrivals within the Caribbean have increased by 41.2%. Of the main Caribbean holiday destinations the Dominican Republic is now dominant attracting 4 million visitors during 2008. To put this into perspective Cuba and Jamaica combined attracted visitor numbers of 4.1 million during the same period.
Many Caribbean destinations still have strong ties with major European nations (UK, France, Spain, and The Netherlands) with many still under direct control. As such European languages are widely spoken with English by far the most common language. To make investing in Caribbean property even more enticing many countries are designated tax havens meaning that taxation is either very low or in many circumstances non existent. Greater stability, good legal and banking systems, tax breaks and great choice make the Caribbean one of the best investment regions in the world. And finally
. To your success
Kevin Wilkes
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| The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com
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Global Investor July 2011
Wednesday, August 3rd, 2011 |
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| Contents
This month’s Star property
01235 553569
Quick links Latest property
availability
Brand new SIM event Don’t miss it!!!
FREE Property Investment Masterclass Newsletter archive
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July 2011 | ||||||||||||||||||||||||||||||||||||
| Market snapshot Global Interest Rates Exchange rates £1 buys:
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| Market update
The Nationwide house price index demonstrates this nicely with a change in the average cost of a UK home standing at 0% for the month of June. In fact, looking back over the last 12 months house prices have only fallen by 1.1% according to the index. Commenting on the figures, Nationwide’s chief economist Robert Gardner said: “Stability remained the theme in June, with house prices flat over the month. This left house prices 1.1% below the level prevailing in June 2010. The property market has moved sideways over the past six months, and June’s data suggest that trend is being maintained through the summer months.” Looking at the results of other major house price surveys for the month we see further evidence of continuing stability. The Home track house price survey revealed a monthly change of just minus 0.1%. Halifax reported an increase of 1.2% but again we see evidence of continuing stability in the comments of Halifax’s housing economist, Martin Ellis: “The number of mortgages approved to finance house purchase is a leading indicator of completed house sales. The industry-wide number of approvals has remained within the range of 45,000-50,000 per month since the beginning of 2010, indicating broad stability in market activity.” So the market is stable, this is certainly good news but are we about to see house prices start to increase again? The following news article certainly suggests that this may be a possibility.
In the news Return of sellers boosts property market confidence in UK, it is claimed
The average number of properties for sale per branch increased from 68 in May to 74 in June. This is the highest figure since April 2009, which saw an average of 76 homes for sale per branch. The number of sales agreed also increased, from an average of eight per branch to nine. This suggests that the increase in sellers reflected confidence in the market rather than a glut of unsold properties, said the NAEA. ‘The leap in available housing stock suggests increased confidence amongst sellers. They think there is a much better chance that their home will sell. For house hunters, this is welcome news as it offers a wider choice of properties to pick from,’ said NAEA Wendy Evans-Scott. Meanwhile, the latest index from FindaProperty.com shows that optimism is returning to the UK real estate market with asking prices of properties that came onto the market in June 8.9% higher than those already for sale. The average asking price for properties new on the market was £240,019 and there has also been strong growth in houses with five or more bedrooms which are selling at their fastest rate since June 2008, it also says.
Country profile – USA – North America – 308m (US census bureau)
The United States conjures up images of good living. Big cars, spacious homes, huge shopping malls, world class theme parks and every kind of landscape imaginable – it’s the American dream.
At almost 10m square kilometres and with over 300 million people, the United States is the third largest country on earth by both total land area and population. With the biggest economy in the world and the highest military budget by far (43% of global military spending), the USA is the world’s only remaining super power. Blessed with some of the planet’s most spectacular landscape, from the Nevada Desert to the Florida Everglades; the Rocky Mountains to the prairies of the Midwest, and the ancient forests of the west coast to the tropical beaches of the south, this is a country that really does have it all. The United States is a relatively new country. Gaining independence from Great Britain in the late 18th century it has grown dramatically ever since. A melting pot for countless diverse nationalities, the country is made up of people from all corners of the world and continues to draw millions of people each year all searching for their own piece of the American dream. This is also a highly visited country. 2nd in the world by visitor numbers, tourism adds billions of dollars to the American economy annually. Home of the theme parks, Florida alone welcomes over 5 million international visitors each year.
This has resulted in many people having to turn to the Department of Housing and Urban Development (HUD) housing choice voucher programme more commonly known as section 8. This has, however, opened up a huge opportunity for investors to not only purchase excellent property at well below even build cost but to also benefit from high tenant demand, tenant screening and rental payments paid directly by the US government. Under this scheme net yields of between 10% and 15% are easily achieved and future capital growth looks exceptional. The United States without doubt currently offers some of the best property investment opportunities in a generation. It deserves the attention of any serious property investor. And finally
Every now and again an investment opportunity presents itself that really stands out as something quite exceptional. As a result of our continuous and extensive research we recently found one such opportunity, and it has been received with far more enthusiasm than we initially expected with the first allocation selling out in just a matter of days. What is the opportunity that I’m talking about? United States Land Contracts.
These are pretty much unknown in the UK and we are in fact one of the only businesses currently offering these to UK investors. Land Contracts are however common place in the United States, and with very good reason as they carry a number of benefits to all parties involved. The term ‘land contract’ is actually a little misleading as this is not a land investment. Quite simply, a land contract is in effect very similar to owning the mortgage note/deed on a house much the way the banks do here in the UK. As the investor, you will hold a land contract/mortgage note on a house with the homeowner/buyer paying you the monthly mortgage payments as you are, in effect, the bank. With our land contracts, the investor (you) buys the property at a price heavily below market value. The homeowner/buyer then purchases the property in agreed monthly payments to you over a set period (in most cases 15 years). These payment are often lower than the cost of renting and at the end of the 15 year period the buyer owns the property outright. You, as the land contract/mortgage provider have no responsibility for the upkeep of the property, the taxes on the property or any property insurances etc (just like any bank in the UK). In return for this complete armchair investment you can expect to receive yields often as high as 20% per year over the 15 year period. In a nutshell, the homeowner/buyer is able to buy a home often with a lower monthly payment than that required to rent and the investor is able to make exceptional returns but without any of the problems associated with being a landlord. You can see why we’re so excited by this opportunity and why the first allocation sold out in a matter of days. At the time of writing we just secured a new allocation of properties so if you are interested in finding out more please click here or call us on 01235 553569.
To your success
Kevin Wilkes
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| The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com
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Global Investor June 2011
Wednesday, August 3rd, 2011|
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Contents · Market snapshot · Market update · In the news · Country profile · And finally
· Abkuk Turkey · 5 star luxury resort · Choice of suites & villas · Fully furnished · 2 year 6% rental guarantee · Fully managed rental programme from year 3 · Mortgages up to 90% available (subject to status) · Suitable for SIPP investment · Prices from just £49,000 01235 553569
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June 2011 |
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Market snapshot
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Market update Generally the UK housing market remains sluggish with all major house price surveys reporting little by way of house price changes. The Nationwide house price index revealed a slight decline of 0.3% whilst the Halifax survey showed a slight increase of 0.1%. As with previous months, the housing market still appears to be treading water. The changes in prices reported by the house price surveys are so small that we can assume there is no movement in prices, especially as some show a positive figure whilst others show a negative, thereby effectively cancelling each other out. The average price of a home in the UK as measured by the Halifax house price survey is £160,519, very slightly lower that at this time a year ago. How long will house prices remain static? The general opinion is that the market could remain flat for several more months yet. Nationwide’s chief economist Robert Gardner comments: "Overall, the modest pace of house price growth suggests that the property market is continuing to mirror the lacklustre trends evident in the wider economy." If this is true we could well see prices start to pick up over the coming months as the economy strengthens. As property investors we aim to buy at the bottom of the market wherever possible. If prices are due to rise soon right now looks like a great time to buy. There are certainly many investors who are doing just this right now. For further up to date market news, analysis and opinion visit our blog at www.w-wideproperty.com/blog
In the news Mortgage rates at lowest level for 23 years Interest rates on new mortgage deals have fallen to their lowest level since 1988, according to the financial information service Moneyfacts. It says this is due to lenders finding it cheaper to raise funds in the financial markets. This has been due to the realisation that the Bank of England is unlikely to raise its bank rate above 0.5% soon. However most mortgage deals still require buyers to put down at least a 20% deposit. "Earlier this year the market expected a rise in bank base rate, that saw mortgage rates start to rise," said Michelle Slade of Moneyfacts. "An imminent rise in bank base rate now appears unlikely, and the cost of funding on the swap rate market has reduced. Lenders appear to be applying cuts equally across all loan-to-value (LTV) tiers, which is good news for first-time buyers, as previously cuts were only being applied to the lower LTV bands," she added.
Country profile – Turkey · Full name – Republic of Turkey · Location – Spanning South Eastern Europe and Western Asia · Capital city – Ankara · Government – Parliamentary republic · Currency – Turkish Lira · Economy – 17th by GDP (Nominal) (IMF 2010) · Population – 75.8m (UN 2010) · Language – Turkish
The gateway between East and West, the point at which Europe meets Asia, Turkey is a strategically, economically and politically important nation. With the 17th largest economy in the world and GDP growth in excess of 5% for 2010, Turkey is experiencing faster growth than any other European economy. Roughly 97% of the country is situated to the east of the Bosporus with just 3% on the European continent to the west of the waterway. 25% larger than Europe’s largest country, France, and with a population of 77.8m Turkey is a country with a similarly low level of population density. It also has a surprisingly varied climate as a result of it’s geology. The arid interior experiences sharply contrasting seasons whilst the Southern coastal areas enjoy a more Mediterranean climate. Far reaching reforms in the early 1980’s resulted in rapid economic growth. Between 1981 and 2003 the economy managed average annual growth of 4% but this wasn’t without its problems; corruption, high inflation, large public sector deficits and economic volatility spawned an economic crisis in 2001. Further economic reforms at this time brought about increased growth, single digit inflation, falling unemployment and a huge surge in foreign investment. Since then confidence has continued to grow and the country has never looked back. Turkey has been an associate of the EU (then EEC) since 1963 and entered formal accession negotiations with the EU in 2005. Why invest in Turkey? In the last 20 years Turkey has become increasingly aligned to the west. It has made great strides in political, economic and human rights reform and is today a stable and forward looking nation. As the nation has become more open and accessible its tourist market has exploded and continues to grow rapidly. Drawn by almost guaranteed good weather, beautiful beaches, ancient history and ease of access, 25.5m international visitors arrived in 2009 making Turkey the 7th most visited country in the world, just one place behind the UK. To cope with demand, huge resorts have been constructed and infrastructure improvements have been dramatic. Year round tourism, competitive property prices, excellent potential returns and relative ease of purchasing have all contributed to making this an exciting option for overseas property investment. Today Turkey has joined the ranks of more established property investment markets such as France, Spain and Portugal. In recent years many people have purchased property in the country and undoubtedly the rate of investment will only increase as global economic conditions strengthen further. We currently have a superb opportunity to invest in a 5 star resort in the Akbuk region of Turkey. This opportunity is suitable for SIPP investment with prices starting from just £49,000. For more information click here. And finally Like many people in the UK, I have a number of redundant pension policies. Policies which I and previous employers have paid into over the years, and then pretty much forgotten about as they became redundant. The thing is, I have no idea how much they are all worth, or even how many I have. What I do know is that the chances of these policies paying a decent pension when I retire is rather limited to say the least. These policies just kind of sit there in the hands of people I don’t know and I have no idea where this money is invested, or even how well it is performing. But this is real money, my money, and I have little day to day input into what happens to it. So I have decided it is time to do something about it, I’m going to take control of it, and so I am in the process of setting up a SIPP (self invested personal pension). With a SIPP you potentially have a much greater choice as to where your money is invested. There are a large number of HMRC approved assets in which you can invest such as stocks and shares, gold bullion and commercial property. Now property is an area that I know a great deal about, and interestingly hotel rooms are considered commercial property which opens up a very interesting investment route. As a company, we have a number of SIPP approved investment opportunities. These opportunities have the potential to generate very substantial returns on investment. My first step was to get some advice and so I contacted our FSA authorised IFA partner. This clarified in my own mind that this was the right option for me and as such, I am now well on my way to pooling all of my pension funds into a SIPP and investing in one of our own Caribbean property investment opportunities. The incredible thing is that the combined value of my pension policies is far greater that I ever imagined and so I can invest in a larger unit with even greater potential returns. I am not the first person in the business to do this, many of my colleagues have already taken this route and this made me think that it may be a logical route for me to follow as well. Do you think it may be for you? If you have existing pension policies whether you pay into them or not, you could do the same. If you would like to investigate this further we would be delighted to put you in touch with our FSA authorised SIPP specialist who will be able to advise you whether this is a good option for you based on your own specific circumstances and requirements. Of course, if you do go this route we would be very pleased to present to you our current SIPP approved property investment opportunities that you could then discuss with the IFA. Simply give us a call on 01235 553569 and we will arrange for our IFA partner to contact you. Like me, you may be surprised at just how large your pension fund may be. To your success Kevin Wilkes
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The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE The Worldwide Property Group is a marketing agent for developers and whilst we endeavour to ensure the accuracy of information contained in this site, including figures and forecasts at the time of publication, the Worldwide Property Group does not guarantee or take responsibility for their accuracy. Images are representative of the types of property we offer and may not be of actual opportunities offered by us. Some images may be computer generated. |
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Global Investor May 2011
Wednesday, August 3rd, 2011 |
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| Contents
This month’s Star property 
01235 553569
Quick links Latest property
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Brand new SIM event Don’t miss it!!!
FREE Property Investment Masterclass Newsletter archive
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| Market snapshot Global Interest Rates Exchange rates £1 buys:
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| Market update
The Hometrack survey reports that prices are unchanged on last month, although this is the first in nine months where the survey did not reveal a slight fall. Commenting on the figures, Richard Donnell, Director of research at Hometrack said: “An increase in demand (up 22% over the first 4 months of the year), coupled with a strong growth in the number of sales agreed over the first quarter of 2011 (up 46%) has provided a boost to market confidence and eased the downward pressure on prices over recent months. The bounce back in buyer interest over the last quarter is largely down to pent-up demand feeding back into the market after a weak final half of 2010.” Halifax’s survey of house prices showed a surprising drop of 1.4% for the month, the only major survey to show a negative direction. However, in their survey of asking prices, Rightmove have reported an increase of 0.7%. So overall the market is remaining stationary but there are a few indicators of potential increases on the horizon. Whilst it remains flat the UK market continues to offer some exceptional opportunities for savvy property investors many of whom are buying at well below market value. Just how long this window of opportunity remains depends on how long prices remain flat. If you are looking to invest in UK property you would be well advised not to leave it too long. When prices start to rise sellers will be far less likely to accept such low offers and the bargains will become harder and harder to find.
In the news Rents reached record high in April The average rent paid by tenants in England and Wales matched a record monthly high of £692 in April, according to a survey. Rents rose by 0.8% compared with the previous month and were 4.4% higher than a year earlier, letting agency network LSL Property Services said. This meant that, on average, landlords were charging nearly £30 a month more than a year ago. London and the south-east of England saw the biggest annual rent rises. The survey also revealed that the proportion of tenants in arrears leapt, with 11.8% of all UK rent unpaid or paid late by the end of April. However, the calendar was one key reason for these late payments, according to LSL estate agency managing director David Newnes.” The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent,” he said.
There has been a huge rise in the proportion of home buyers paying for their new homes in cash. Figures compiled by the Council of Mortgage Lenders (CML) show that in January 2011, nearly 40% of buyers did not need a loan to buy their home. This means the proportion of cash buyers has more than doubled since 2005, when the records began. In April 2005 16,457 homes were sold to cash buyers, equivalent to 15% of the market. In January 2011, the latest figure, there were 27,600 cash transactions, equivalent to nearly 40% of the market. Market experts believe that cash buyers are investing in property because they see it as one of the few investments which they can make money from and use at the same time. An independent property expert said: “Putting the money in a bank account may be safe, but you will get a woeful return on it, while stocks and shares look like the two ugly sisters – leaving property as the Cinderella of the investment world.” This is having a clear impact on those people who need to borrow in order to purchase a property and it appears that long-term renting may well be on the way back. The proportion of people owning and actually living in their properties has been steadily falling, having peaked at 71% in 2004 and fallen back to 67% last year. During the same period there has been a big increase in the private rented sector.
Country profile – Brazil
The world’s 5th largest country by area and population, Brazil is the economic powerhouse of Latin America. Covering almost half of South America and with over 4,500 miles of coastline Brazil is an immense country of great diversity. From the remote depths of the Amazon basin, to the busting cities of Sao Paulo and Rio de Janeiro.
One of the four emerging economies referred to as the BRIC economic group (which also includes Russia, China and India), Brazil is well on the way to become a global economic power and is predicted to become the 4th largest economy on earth by 2050. Brazil’s economy is made up of many sectors but manufacturing and agriculture are the backbone of the country’s economy. Brazil has a strong aeronautical and automotive sector producing aircraft, cars and space technologies. In recent years Brazil has discovered massive oil reserves and is totally self sufficient with oil and gas. Although petrochemicals are a major economic sector, the country is also a global leader in terms of new cleaner energy technologies. In fact since 1976 cars in Brazil have had to run on a mixed petroleum/ethanol fuel with ethanol now accounting for around 25% of the mix. Interestingly, Brazil also has the world’s 2nd largest hydroelectricity plant. Because it was the world’s first sustainable energy economy, Brazil has provided a model that has been widely followed by many other leading nations.
In an effort to position itself as a leading tourist destination, the country has in recent years invested heavily in infrastructure with new roads, airports and drainage systems in addition to historical heritage restoration and environmental preservation. With living costs at a fraction of many first world nations including the UK, even a luxury holiday in Brazil can cost very little. Of course the living costs are also a major attraction to increasing numbers of Europeans who are choosing to settle here. The North East coast in particular is seeing the construction of several luxury holiday resorts, and a new international airport at Natal set to open in 2010 (the 4th largest in the world) will enable the region to cope with the anticipated increase in visitor numbers. Surprisingly the flying time from London to Natal is much the same as that to Miami. Currently, Brazilian property is probably as cheap as it will ever be, and with huge capital growth potential, Brazil is a property investor’s paradise.
And finally
Let me explain. The problem is that the press has such enormous influence that the vast majority of people soon start to believe things really are as bad as portrayed in the newspaper headlines and news reports. This then makes these exaggerated headlines ‘real’ and people act accordingly by spending less, complaining more and becoming more fearful and disillusioned than they need be. I find it hard to believe that things are as bad as many in the press would have us believe, so I have done my own research, and here’s what I have found: This government has made some sweeping changes to many aspects of our economy and society, with unprecedented spending cuts, welfare reform and tax increases at the centre of this. One of the immediate objectives of these cuts was to ensure that the UK retained its AAA credit rating thereby keeping our enormous debt repayments to a minimum. This was achieved and the UK still holds this highest level of credit rating. Government borrowing for last year was £2 billion less than predicted and overall borrowing is predicted to fall sharply as the cuts start to take effect and tax revenues continue to increase. GDP growth for the first quarter of 2011 was a very respectable 0.5%. The IMF believes that growth for 2011 will be 1.7%, higher than France, Italy, Spain and in fact the entire Euro zone. In the first 3 months of 2011 unemployment actually fell by 36,000 bringing the unemployment rate to 7.7%. This compares to 9.9% in the Eurozone, 9% in the USA and 7.6% in Germany. In fact, this is one of the lowest rates of any of the developed economies, and is being viewed as a good indication that economic growth is continuing at respectable levels. Regardless of what the doom mongers have been predicting for years, house prices in the UK did not crash as they have in other parts of the world such as Spain and the USA. What we have experienced is a more healthy re-correction of prices and a further period of price consolidation thereby removing heat from the market without any of the nasty effects of an all out crash. The historically low interest rate level has been a major factor in maintaining stability in the housing market and keeping repossessions to a minimum. Personal debt levels have fallen significantly as many people have used their interest rate savings to pay off large chucks of debt. Our own survey has consistently shown that almost two thirds of people are benefitting from lower interest rates. Interestingly, the World Bank lists the UK as the 4th best country in the world for ease of conducting business. This puts the UK ahead of 5th placed USA and beaten only by Singapore, Hong Kong and New Zealand. This is a huge advantage not only for encouraging enterprise but also in attracting overseas businesses to set up in the UK. This will help economic recovery. Now there’s a great newspaper headline. So to recap, we currently have house price stability and low repossession rates, comparatively low unemployment, historically low interest rates, diminishing personal debt levels, one of the strongest levels of economic growth in Europe, stable government, an enviable business environment and the highest credit rating possible. Not quite as bad as the press make out is it?
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| The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com
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