Overseas Property Investment Consultancy & UK Property Investment Consultancy

Global Interest Rates                         Exchange rates £1 buys:

Confidence in property is still high and our recent survey shows that people are turning to property more than any other investment route as a safe place to invest their money. A huge 75% of people interviewed said that they believe bricks and mortar to be the best place in which to invest. To put this into perspective, just 2% highlighted shares as their favoured investment option.

The Nationwide House Price Index reveals a small increase of 0.1% in the price of an average UK home for June. In agreement with this the Hometrack house price survey for June also revealed an overall increase of 0.1%. Commenting on the figures, Hometrack’s director of research, Richard Donnell said:” Over the last four months the supply of homes for sale has grown three times faster than demand – new supply has grown 15% compared to a 4.9% increase in demand. Speculation over changes to Capital Gains Tax and the abolition of Home Information Packs (HIPs) have been the drivers of supply growth. Despite the mis-match between supply and demand, sales volumes are still growing albeit off a very low base.”

Inflation slows further in June

For the second month running the rate of inflation in the UK has slowed. The Consumer Prices Index (CPI) fell from 3.4% in May to 3.2% in June whilst the Retail Prices Index (RPI) fell from 5.1% to 5%. This is welcome news and hopefully a trend that will continue over the coming months.

Although the CPI figure is still substantially above the Bank of England’s 2% target the downward trend will reduce pressure for the Monetary Policy Committee (MPC) to raise interest rates.CPI inflation peaked at 3.7% in April and has remained above the 2% target since December 2009, although Governor Mervyn King has always maintained that it would moderate without the immediate need for interest rate rises.

Only one member of the MPC has so far voted for a rise in interest rates. Andrew Sentance claims that loose monetary policy has contributed to the weakness of Sterling and therefore stoked inflation through the increased cost of imports. He points out that a gradual increase in interest rates in line with a gradual increase in economic recovery would help keep inflation in check.

One reason for the recent spike in inflation is believed to have been driven by the VAT rise back to 17.5%. With this in mind it is quite possible that a further rise in VAT to 20% will temporarily bolster prices again in January.

The Bank of England is confident that as the effects of the government budget cuts kick in and the pound stabilises, inflation should return to its 2% target over coming months.

• 
  Full name – Portuguese republic
• Location – Iberian Peninsula, Western Europe
• Capital city – Lisbon
• Government – Parliamentary republic
• Currency – Euro
  
• Economy – 33rd by GDP (Nominal) (IMF)
• Population – 10.7m(UN 2009)
• Language – Portuguese

Portugal is a country with a rich history of seafaring and discovery. By the 16th century the Portuguese empire embraced huge areas of South America, Africa and Asia. It’s era as a colonial power was brought to an end in 1999 when it handed over its last overseas territory, Macau, to the Chinese. Evidence of the Portuguese empire exists to this day with over 200 million Portuguese speakers outside of Portugal.

A country of great diversity, the north is rugged and mountainous whilst the south features mostly rolling plains. The island chains of the Azores and Madeira are also part of Portugal. The south of the country, which includes the Algarve region, enjoys a somewhat warmer and drier climate than the north.

Portugal joined the European Union in 1986 and since then has changed its heavily public sector biased economic model to embrace private investment and diversify into areas such as Information Technology and business services. Manufacturing and fisheries still account for a significant proportion of the economy, including the production of textiles and clothing, wood products and beverages.

Why invest in Portugal?

Tourism plays a huge role in the Portuguese economy attracting visitors from every corner of the world. The Algarve is one Europe’s most favoured holiday destinations and a raft of new, world class, golf course resorts has succeeded in enticing golfers from the wealthy regions of Northern Europe and North America. This, along with Portugal’s beautiful climate has resulted in a year round tourist industry.

Portugal is also the third most favoured destination for second home ownership by the British, behind Spain and France. Easy and ever improving transportation links, good infrastructure, predictable climate, low cost of living and friendliness of the local population all account for this.

Property in Portugal can be considerably cheaper that other popular European regions and foreign ownership is actively encouraged by the government. Year round rental potential, excellent rental returns and good capital growth potential all lend to making Portugal an excellent country in which to invest in property.

We are currently offering some incredible opportunities at a 5 star health spa resort in the Algarve region of Portugal with 20% instant equity, 2 year rental guarantee followed by profit share from year 3, and personal use each year for an incredible £5,000 including all closing costs and taxes.

Take a look at the property pages on our website http://www.w-wideproperty.com/CMS/Properties.php? for further information or call us on 01235 553569.

I believe not.

Interest rates have now been at a historical low of 0.5% since March 2009. This is an astoundingly low level and in fact one that has never before been reached. To bring it into context, the lowest base rate level reached during the last 100 years was 2%; it remained for 7 years between 1932 and 1939.

The MPC are involved in a complicated balancing act. On one side they have the threat of increasing inflation whilst on the other they have the risks attached with fledgling economic recovery. Although stability is returning to the housing market and wider economy, this recovery is fragile and carefull economic management is required to keep it on track and allow it to strengthen.

Inflation, although significantly above the Bank of England’s 2% target is on a downward trend and generally the committee is of the opinion that this will continue. If this is the case, then the pressure to raise the base rate in order to curb inflation diminishes. Interestingly, the Consumer Prices Index (CPI) stood at 5% in September 2008, considerably more than the current 3.2% level.

This reduction in pressure to increase rates is reinforced by the results of our most recent monthly survey. The number of people who believe that rates will increase during the next 12 months has reached its lowest level since January (63%).

I believe that raising interest rates at this stage is unnecessary and could cause some destabilisation of the housing market and reduce consumer spending, which in turn could have further reaching effects on the UK economy. Although I appreciate that the base rate will need to increase at some point, I think this is unlikely to happen before the effects of the VAT increase early next year have been assessed and economic recovery has become more established. Therefore, although I am of the opinion that rates could increase within the next 12 months, this is most likely to be towards the back end of this timeframe, and even then by only small increments.

If this scenario is correct then we have many more months to enjoy interest rates at levels that have never before been experience. What a great time to invest in property.

To your success

Kevin Wilkes

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.

Global Interest Rates                         Exchange rates £1 buys:

At home the new government has started to detail how it plans to tackle the UK’s deficit and this has been well received around the world with G20 leaders strongly backing the plans at the recent summit in South Korea.

House prices have continued to show their resilience to economic difficulties during the last month. The Nationwide survey of house prices reveals a May increase of 0.5% bringing the average property price to £169,162. The report shows a 12.2% increase since the February 2009 trough with prices currently sitting just 10% below the 2007 peak. Based on this, a £150,000 property purchased in February last year would have made a capital growth of £18,300. Not a bad return for a recession!!!

Hometrack have also reported an increase in their survey of 0.2% whilst surprisingly the Halifax survey shows a drop of -0.4% bringing their indicator of average property prices broadly in line with the Nationwide at £167, 570.

Looking at asking prices Rightmove say they have seen a monthly increase of 0.7% in the asking prices of newly listed properties. Overall the general direction remains upwards which is encouraging.

Government figures show annual house price inflation back in double digits.

New figures from The Department for Communities and Local Government (DCLG) showed April house prices were 10.1% higher than a year ago.

This represents the strongest rate of inflation since October 2007. The report indicates growth of 0.4% during April, broadly in line with other market reports.

Wales has recorded the highest annual growth at 11.3%, whilst England trailed slightly behind at 10.9%. Scottish house price growth was considerably lower at 2.2% but Northern Ireland saw average prices falling by 8.9%. The Council of Mortgage Lenders (CML) says that lending is 15% higher than a year ago.

RICS

Meanwhile, the most recent survey from the Royal Institution of Chartered Surveyors (Rics) shows a “sharp increase” in the amount of property reaching the sales market.

The report says that 22% more surveyors reported a rise in prices than reported a fall in the three months to May. RICS spokesperson Ian Perry said: “Surveyors are generally confident that sales will continue to pick up over the summer months. The increase in supply as a result of the abolition of Hips is helping to support this optimism.”

• Full name – United Kingdom of Great Britain and Northern Ireland
• Location – North Western Europe
• Capital city – London
• Government – Parliamentary democracy and constitutional monarchy
• Currency – Pound sterling (£)
  
• Economy – 6th by GDP (Nominal) (IMF)
• Population – 61.6 million (UN 2009)
• Language – English, Irish, Ulster Scots, Scottish Gaelic, Scots, Welsh and 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 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 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 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. UK property should form the backbone of a strong property portfolio.

We are fast becoming the UK’s leading supplier of repossessed property with several hundred new properties coming on very soon. What ever you’re looking for, we will have it. If you would like to be one for the first to hear of these new properties give us a call on 01235 553569 and register your interest.

Almost immediately it was announced that Home Information Packs (HIPS) would be abolished. It is widely believed that these packs have achieved little more than reducing the number of properties coming to the market as well as the time taken to bring a property to market. The Energy Performance Certificate (EPC) will however remain. I believe this is the ideal compromise as although HIPS were undoubtedly a bad idea, a whole industry has built up around the EPC’s and it would have been wrong to destroy peoples businesses, especially given that EPC’s are actually a good idea.

Of course, with compromise in the air some manifesto pledges had to be forgotten and one of these was the conservative’s plans to increase the inheritance tax threshold. With huge increases in property values over the last decade or so, the current threshold is a great deal lower than it should be if it were to have kept pace with the increases. Shelving the Conservative’s plans unfortunately means that property owners in particular will not be able to pass on as much as perhaps they would like to, free of tax.

Also of impact to property investors is the announcement that Capital Gains Tax (CGT) will be increased to 28% for higher rate tax payers. There has been a lot of uncertainly and fear surrounding this in recent weeks but in reality the increase was nowhere near as high as was expected.

The new government then turned its attention to new developments. Firstly they reversed a Labour decision to classify gardens as brown field sites, giving local authorities greater powers to block proposed developments based on local objections.

Next they looked at housing density and abolished the ‘minimum density targets’ for new developments set by the previous government. The policy which dictates that at least 30 homes are built on every hectare of development land has been blamed for a profusion of apartments as well as threatening the existing character of towns and cities in addition to more traditionally green and open areas. There have also been signs that an existing policy which details that new developments must contain a set amount of social housing may also be reformed or scrapped.

Most recently has been the announcement that the Financial Services Authority (FSA) is to be scrapped and more power given to the Bank of England. Many will see this as a good move given FSA failures during the recent credit crunch and subsequent recession.

So there we have it, one month down and some major changes already in place. As property investors will we be affected? In a word, yes.

The new government has certainly hit the ground running and without doubt some of these announcements are good news, unfortunately some are not so good for us, but time will tell whether the positives will out way the negatives. One thing is always certain though; property investment is a great route to wealth and financial independence and right now offers some incredibly exciting opportunities and we have some of the best. Grab them while you can, with economic recovery in the air they may not exist for long.

To your success

Kevin Wilkes

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.

Global Interest Rates                         Exchange rates £1 buys:

So what effect has all this had?

Stock markets have experienced a turbulent month, mainly as a result of the Greece debt crisis, however with the agreement of a Eurozone/IMF financial package to stop the crisis transferring to other countries the markets have demonstrated greater stability. Currently, the markets are trading at levels greatly higher than during the record lows of early and mid 2009.

The United States Dollar continues to strengthen against other major currencies lending weight to the belief that the US economy is continuing to strengthen.

At home the property market has continued its spring bounce with average prices rising across the country. According to the nationwide house price survey, average UK house prices are now just 10% below the October 2007 peak. The survey reported a 1% increase during the month of April.

The Hometrack survey of house prices also reveals an increase for the month of 0.2%. In its survey of asking prices, the UK’s largest property website Rightmove recorded a 2.6% increase bringing the average price of a property on its website to £235,512. The company said that it had experienced a significant pre election surge in listed property with the highest weekly figure since June 2008.

Is this a sign that the market is returning to more normal conditions? Certainly, with a new government in place we expect to see increasing stability within the market.

Home Information Packs become history

Home Information Packs (HIP’s) have been suspended by the new coalition government.

Following through with a policy that had both Conservative and Liberal Democrat backing, Housing Minister Grant Shapps said: “Today the new government is ensuring that Home Information Packs are history. By suspending home information packs today, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront.”

HIP’s were introduced in 2007 in England and Wales. It was believed that they would speed up the house selling process by making sellers provide much of the required conveyancing information when properties are first put up for sale. The packs have been widely criticised by sellers and estate agents who believe that they have done little more than hinder the recovery of the housing market by reducing the number of new properties put up for sale.

If this is correct, we should see a significant increase in market activity over the coming weeks and months.

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Country profile – Florida

• Location – South East United States
• State Capital – Tallahassee
• Largest City – Jacksonville
• Currency – United States Dollar
  
• Population –  18.3 million
• Language – Official language is English, however Spanish is also widely spoken

The most southerly state in the continental United States, Florida conjures up images of warm sunny days, long stretches of White sandy beaches, theme parks, and holidays, but visitors to the Sunshine State leave in the knowledge that Florida offers so much more, including excellent property investment potential.

The 22nd largest state by land area but the fourth most populated in the US, Florida continues to attract wealthy retirees from across the country and indeed from many other regions of the planet but there is also a very young, multi cultural and vibrant feel to many of the cities such as Miami and Orlando. Florida is truly unique, a place of cultural extremes which co-exist in a very laid back and understanding level of acceptance.

Florida is fast becoming an investor’s paradise and many professional investors are starting to return to the state to take advantage of the huge potential for capital growth that currently exists. In fact, in a recent survey conducted by the Worldwide Property Group, Florida came top of a list of best places to invest globally.

Investors in Florida property have access to a number of different rental options. In and around the cities, especially Miami and Orlando (home of the theme parks) holiday lets are plentiful with visitors flooding in from around the world. Holiday lets can prove very lucrative and a well placed apartment or villa will be in great demand even in today’s climate. Florida also has another quite unique rental market. Each Winter millions of retirees known locally as ’snow birds’ flock to the State from across the northern United States and Canada to take advantage of the sub tropical weather and avoid the harsh winters of the north. This influx of people swells Florida’s population hugely and rental properties (particularly around the coasts) experience very high demand. Many of these people choose to return to the same property year after year making this rental market very appealing to property investors,
especially if their property is more of a second home than a pure investment.

The real estate market in Florida has been particularly badly hit by the global financial crises and subsequent recession. However, prices now appear to have bottomed out in most areas with a number of regions starting to see a return to property price growth. With increasingly strong growth expected to return in the near future and greater numbers of visitors to the region, right now offers a window of opportunity that will soon close.

The sunshine state undoubtedly offers truly outstanding investment potential. If you are interested in investing in Florida we will soon be releasing a range of stunning properties in the Orlando region at up to 85% discount. Please check your email over the coming days for details of this opportunity.

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The Worldwide Property Group Master Class

I have just finished presenting our latest Master Class to our new and existing clients, which I have to say was inspirational. The feedback I received from the delegates in regard to their future aspirations was testament to our customer survey that our clients are definitely in the market for expanding their property portfolios during 2010 – 2011.

It is always refreshing to experience the culture of how our company interacts with its clients which as a result confirms that our strategies are the reason that our clients continue to invest with us and why, we as a company have grown each year despite the recession. This confidence drives us on with our aspirations to be one of the largest and respectable property investment companies in the UK.

What is good to notice is that our new clients are a very different animal to those of the mid 1990’s they have more clarity in regard to their investment goals and strategies. We are not the only company experiencing this new breed of investor “The Post Crisis Investor” as penned by Ashley Rigg for Global Edge.

I would concur that these investors:

• Are more informed and will demand a better service from industry professionals.
• They demand openness and transparency and will not make decisions based on small snippets of information.
• They prefer to buy completed property with amenities they can enjoy right now and are sceptical of “off plan” properties unless they are part of an extremely professional and reliable business plan.
• They expect to see a huge difference in price from the market highs of 2007 and are prepared to haggle further for “high end” properties.
• They are interested in property that delivers revenue in the short term and are not averse to investing in “low key” properties.
• They are more sceptical of promises made by developer on their websites and brochures and look for guidance from professionals.

As a company we have to rise to deliver the services and professionalism they seek and our promise of client care and customer service will ensure that we as a business and our clients will continue with successful collaboration during a future that seems much brighter that the recent past.

Anthony Tinsley, highly regarded business expert, property investor and serial entrepreneur is a leading global property market expert. Currently living in Spain (retired on the profits of property investing) Anthony has been delivering lectures and courses for many years. Anthony’s teaching style is entertaining and compelling, and ensures that even the most complicated principles are easily understood.

If you would like to attend a Worldwide Property Group master class please call 01235 553569 for full details or email enquiries@w-wideproperty.com

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And finally


So, we have our first coalition government for 70 years, and already they have started to address the difficulties facing the property market. Unfortunately, they have also announced major changes to the rate of Capital gains tax that may impact heavily on us property investors.

With the promise that CGT will increase to become more in line with income tax rates we are all in danger of having to pay 40% or maybe even 50% tax on our property investment profits. But actually it’s not quite as bleak as it first appears.

Firstly, it is quite possible that buy to let property could be given business status and would therefore not be liable for the new rate of tax. Or if this doesn’t happen there is a growing belief that the government may introduce taper relief on these investments. For those who don’t know, taper relief works by reducing the tax rate of a particular asset depending on how long you have held the asset.

Of course, we will not know the government’s plans with any certainty until the upcoming budget. However, even if CGT is increased and none of these tax reducing measures are introduced, it is still possible to escape this potential tax increase. If you own a second property or a larger portfolio of investment properties, I would urge you to contact us without delay so that we can help you to find the right option for you. Call us today on 01235 553569 or email
enquiries@w-wideproperty.com and ask for a CGT fact find form.

To your success

Kevin Wilkes

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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.

Global Interest Rates                         Exchange rates £1 buys:

March experienced strong price increases with all main market surveys reporting increasing values. The Hometrack survey of house prices recorded an increase of 0.3% for the month. Commenting on the figures Richard Donnell, Director of research for Hometrack said: “Talk of improved market conditions and prices returning to near peak levels in some markets is encouraging a growing number of households to sell their properties. Many registered buyers are also sellers, and as they gain the confidence to move so they need to put their homes on the market. Overall we’re moving from a sellers’ market back towards something more akin to normal conditions with supply and demand broadly in balance.”

The Nationwide house price survey revealed a March increase of 0.7% bringing the average property price in the UK to £164,519. Even more positive news came from the Halifax survey which reported a huge increase of 1.1%. This is more in line with figures from several years ago and was the 8th price increase recorded by Halifax in the last 9 months. This takes the average house price to 9.1% above the low reached in April last year. For those people who correctly judged the bottom of the market and purchased in April, this would equate to an increase in equity of £13,720!!!

This shows the enormous potential of investing in property, even in a period of economic uncertainty.

Market activity increases during March

March experienced a large rise in mortgage lending according to the Council of Mortgage Lenders (CML). The figures show that lending jumped to £11.5bn, a rise of 24% from February. Interestingly, the figure was also 3% higher that March last year which is extremely positive news.

There has been a significant rise in market activity during recent months following the post Christmas slump. Although activity in the property market always picks up around Spring time, this increase is particularly interesting given that we are just weeks from a very uncertain general election. This normally would signal a stand still, but on the contrary, we have still seen an upturn.

The National Association of Estate Agents (NAEA) and the Royal Institution of Chartered Surveyors (Rics) have also reported that March had seen a big rise in the number of people putting their homes up for sale.

The number of potential sellers rose in March to its highest level for six months, the National Association of Estate Agents (NAEA) said. The number of prospective buyers also increased up by 7% last month. The NAEA said spring had brought its usual increase in activity, and suggested sales would improve in the coming months.

The most recent official figures have also shown that the number of completed sales in the UK went up in February to 58,000, a rise of 15% from January.

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Country profile – Finland

• Full name – Republic of Finland
• Location – Northern Europe
• Capital city – Helsinki
• Government – Parliamentary republic
• Currency – Euro
  
• Economy – 34th by GDP (Nominal) (IMF)
• Population –  5.3 million (UN 2009)
• Language – Finnish, Swedish and Sami

A country ruled by its neighbours (Sweden and Russia) for hundreds of years, Finland finally gained independence in 1917 and stepped out onto a path that has led it to the top of the Lugatum prosperity index (an annual ranking of 104 countries based on economic performance and quality of life).

Finland is a stunning country with a landscape of forests, lakes and rivers. A region of great extremes where in the summer the far north experiences 10 weeks of solid daylight, whilst in the winter it experiences 8 weeks of total darkness. The northern region of Lapland takes on a magical appearance each winter as the ground disappears under a blanket of thick snow and the northern lights dance overhead, drawing huge numbers of visitors each year.

The capital city Helsinki contains a mix of Swedish and Russian architecture reflecting the country’s past under rule from both nations at differing times. Around 20% of the country’s population live in the Helsinki area whilst much of the rest of the country is very sparsely populated.

A relative latecomer to industrialisation Finland began rapid economic development from the late 1950’s reaching the world’s top income levels in the 1970’s. The country joined the European Union in 1995 and is the only Scandinavian nation to use the Euro. It is widely recognised as the second most stable country in the World (fund for peace index 2009).

Heavy investment into education, training and research has resulted in one of the best educated and trained workforces in the world.

Why invest in Finland?

The country enjoys world class infrastructure and excellent links with the rest of the world. A superb road network, modern airports and extensive rail network combine to create an enviable transport system. The country also boasts an advanced communications network that will enable every citizen to access the internet with a minimum speed of 1mbps by July 2010.

Finnish tourism is growing at an extraordinary rate in part due to the country’s globalisation and modernisation but mainly as a result of increased publicity and awareness. The country has 35 national parks and outdoor activities are plentiful during all times of the year, from golf, Yachting and hiking in the warmer months to Skiing and other winter sports in the colder months. The country has seen tourism growth of 5% year on year in recent years mainly driven by visitors to Helsinki and Lapland.

If you are interested in investing in Finland we will soon be releasing a range of stunning Ski lodges in the Lapland region. If you would like to hear more please call us on 01235 553569, we can then run through the opportunity with you and you can register your interest.

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And finally

With the general election just around the corner and with the potential of a completely new government in Westminster in a matter of days, I was thinking just how this would affect the UK property market. Economic and market commentators have differing opinions on this subject, and it’s very difficult for anyone to really know how the property market will respond to the various scenarios following May the 6th, but there are 2 main points that will have an impact, one of which has already happened.

The conservative party promised to abolish stamp duty for first time buyers on property purchases up to £250,000 if elected. The government introduced exactly this in the budget last month for a period of 2 years. It really makes no difference whose idea it was; the important thing is that this policy has without doubt had a positive effect on the property market.

Following the end of the stamp duty holiday earlier in the year we saw a significant slowing of the market, the introduction of this new policy resulted almost instantly in a strong rebound, so we can clearly see the effect this has had. I have always said that targeting first time buyers is the best way to stimulate the market. First time buyers form the market’s foundation and a strong foundation is essential in creating strength and stability further up.

If elected, a conservative government would make this policy permanent. In my opinion a very welcome move, although I suspect a Labour government would do the same as the 2 year point neared.

The Conservatives and Liberal Democrats have made their position very clear with regard to Home Information Packs (HIP’s); they would both scrap them. Strong evidence suggests that this would have an immediate impact on the number of properties coming to the market and the speed at which properties could be brought to the market. The expected increase would go some way to restoring more normal market conditions which would result in greater stability overall, and a stable property market is in everyone’s interest particularly property investors. Steady long term growth is an essential factor in building an effective and reliable property portfolio. It is this that makes property such a safe and forgiving investment.

So who knows what the political landscape will look like on the morning of May the 7th. One thing we can be sure of though, is that a change of government will have an impact on the property market, and I am pretty certain it will be positive.

To your success

Kevin Wilkes

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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.

Global Interest Rates                         Exchange rates £1 buys:

The price of crude oil has also risen steeply and is once again creating inflationary pressure as prices at the pumps and shops increase as a result. However, February saw a substantial rise in retail sales (see next article), bringing good news to the High Street.

The UK house price figures for February are a pretty mixed bag with some of the reports indicating rising prices and others showing falling prices. Both the Halifax and Nationwide house price surveys reported a negative February price change most probably as a result of the end of the stamp duty holiday. However, the Rightmove house price index revealed a huge increase in asking prices of 3.2% for the month.

The Hometrack house price index also recorded rising prices for February with an overall increase of 0.3%, one of the largest increases recorded by Hometrack in the last year. In fact, Hometrack say that the figures have revealed the first year on year rise since March 2008. Good news indeed.

UK retail sales rise sharply

Further evidence that the UK economy is strengthening has been released by the Office for National Statistics (ONS).

In its March report the ONS shows a strong rise in retail sales between January and February. The figures reveal a 2.1% rise in volume for the period following disappointing figures for January. The January figures are widely believed to have been the result of extreme weather conditions across the UK and also the re-introduction of the 17.5% rate of VAT.

The reported rise was widely expected by analysts and is hoped to continue month on month throughout the year. Compared to February last year, the report showed sales volume to be 3.5% higher or 5% higher in terms of value. Increasing retail sales are a good indicator of economic recovery.

• Full name – Portuguese republic
• Location – Iberian Peninsula, Western Europe
• Capital city – Lisbon
• Government – Parliamentary republic
• Currency – Euro
  
• Economy – 33rd by GDP (Nominal) (IMF)
• Population – 10.7 million (UN 2009)
• Language – Portuguese

Portugal is a country with a rich history of seafaring and discovery. By the 16th century the Portuguese empire embraced huge areas of South America, Africa and Asia. It’s era as a colonial power was brought to an end in 1999 when it handed over its last overseas territory, Macau, to the Chinese. Evidence of the Portuguese empire exists to this day with over 200 million Portuguese speakers outside of Portugal.



A country of great diversity, the north is rugged and mountainous whilst the south features mostly rolling plains. The islands chains of the Azores and Madeira are also part of Portugal. The south of the country, which includes the Algarve region, enjoys a somewhat warmer and drier climate than the north.

Portugal joined the European Union in 1986 and since then has changed its heavily public sector biased economic model to embrace private investment and diversify into areas such as Information Technology and business services. Manufacturing and fisheries still account for a significant proportion of the economy, including the production of textiles and clothing, wood products and beverages.

Why invest in Portugal?

Tourism plays a huge role in the Portuguese economy attracting visitors from every corner of the world. The Algarve is one Europe’s most favoured holiday destinations and a raft of new, world class, golf course resorts has succeeded in enticing golfers from the wealthy regions of Northern Europe and North America. This, along with Portugal’s beautiful climate has resulted in a year round tourist industry.

Portugal is also the third most favoured destination for second home ownership by the British, behind Spain and France. Easy and ever improving transportation links, good infrastructure, predictable climate, low cost of living and friendliness of the local population all account for this.

Property in Portugal can be considerably cheaper that other popular European regions and foreign ownership is actively encouraged by the government. Year round rental potential, excellent rental returns and good capital growth potential all lend to making Portugal an excellent country in which to invest in property.

We are currently offering some incredible opportunities in the Algarve region of Portugal with 20% instant equity, 2 year rental guarantees and 5 weeks personal use each year for an incredible £3,000!!!

Take a look at the property pages on our website for further information or call us on 01235 553569.


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And finally

The big story this week is the chancellors decision to abolish stamp duty for first time buyers for the next 2 years on property valued at up to £250,000. A welcome move that will save an estimated 73% of first time buyers from having to pay this tax. In fact, according to the Council of Mortgage lenders (CML) this decision could result in around 350,000 property purchases being exempt stamp duty in this calendar year. Good news indeed.

The stamp duty announcement got me thinking. Would there be any benefit to property investors? The answer is a big yes.

The entire property market is underpinned by the first time buyer sector, this is basically the foundation of the market and without a strong foundation anything built on it is unstable. A healthy first time buyer market makes for a healthier market overall, and this is what the chancellor has addressed with this announcement.

With a significant easing of entry costs, many more fist time buyers will be in a position to buy a home, thereby creating additional transactional activity at the bottom of the market which will steadily filter up into the rest of the market. This increase in activity will generate additional demand and as we all know from simple economics, demand is the driver of price increases especially when mixed with current low supply.

As the market strengthens, price increases are inevitable and this is great news for property investors. Many parts of the country have been experiencing strong sales and increasing prices for a while now. My advice is to buy now and take advantage of anticipated capital growth. Although we are no longer at the bottom of the market, right now is still the best time to buy before prices increase further.

To your success

Kevin Wilkes

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.