Overseas Property Investment Consultancy & UK Property Investment Consultancy

The introduction of a new year has seen the FTSE 100 cross the 6000 barrier.  The market has seen substantial growth during the last 6 months rising from a low of 4800 at the beginning of July.  It’s a pretty similar picture around the world with all major markets recording strong increases during the second half of 2010 and into 2011.  The Dow Jones industrial average is currently just 15 points below the 12000 mark, in July 2010 is was just below 9700.  So confidence has certainly returned to the markets.

The housing market edged slightly higher in the last month of 2010 according to the Nationwide house price index. The December results revealed a 0.4% rise in the average house price.  The Rightmove survey was broadly in agreement with a figure of 0.3%, however, both Halifax and Hometrack reported price falls for the month of 1.3% and 0.4% respectively.

Commenting on the figures and looking ahead over 2011, Nationwide’s chief economist Martin Gahbauer said: “On balance, a relatively stable picture with the possibility of a small price decline appears the most likely outcome for 2011 at this stage. However, the experience from 2009 – when house prices were widely expected to see a large fall and then ended up rising by 6% – illustrates the uncertainty of the outlook and shows that anything is possible.” 

The rental market continues to gain strength as demand for rental property remains high.  For those who already have rental property in the UK this is excellent news and it looks set to continue throughout the year.  We are undoubtedly in an excellent market for property investors.  Low purchase prices and strong rental demand are resulting in some truly irresistible investment opportunities.

In the news

Increase in mortgage approvals

The number of mortgage approvals has risen for the first time in six months, according to the Bank of England’s figures for November.

Just over 48,000 loans were approved for people buying a property during the month.  

There has also been some positive news for the economy as manufacturing grew at its fastest pace in 16 years during December, according to the latest survey by the Chartered Institute of Purchasing & Supply.

Global growth to be higher than expected in 2011

The International Monetary Fund (IMF) has said that the global economy will grow faster this year than expected.

The IMF revised up its growth forecast from 4.2% to 4.4%. Emerging countries should see growth of 6.5% this year and a similar expansion in 2012, the IMF said.

In its World Economic Outlook, the IMF said US growth was projected to reach 3%, up from the previous estimate of 2.3% published in October. The IMF estimates UK growth will be 2%, unchanged from its previous forecast. There was also no change in the 1.5% growth forecast for both the eurozone and for Japan.

Growth projections for China and India were unrevised at 9.6% and 8.4% respectively.

Country 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.

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. UK property should form the backbone of a strong property portfolio.

We are the UK’s leading supplier of repossessed property.  To discuss our current availability please call 01235 553569.

And finally

So here we are almost one month into 2011 and wherever I look I’m confronted by the same question and countless ‘experts’ trying to answer it – what does this year hold?

To be quite honest, we simply won’t know for sure until the end of the year. Regardless of all the predictions and analysis no one really knows with much certainty. Predictions are at best an educated assessment and personal view and at worse nothing more than pure guess work. There are so many factors at play, many of which can’t be foreseen.

Now, I’m not one to make wild predictions. I feel that it serves no real benefit to anyone in this business. What I will say is that I’m confident we won’t see dramatically falling house prices, and equally I am pretty certain that there will be no sharp increase in interest rates. Sure, rates may end the year very slightly up and house prices may bump along a little, but generally I expect 2011 to be a relatively calm and quiet year. But let’s not be too hung up on what the coming year will hold.

Now don’t get me wrong, of course what happens in the future is important to successful property investing, but we have little to no control over it. I tend to focus far more on the present, and what I will say with absolute certainty is that things couldn’t really be much better for the savvy property investor.

Wow, what a period of opportunity we currently live in. Tenanted property in the UK at 30% below market value, family homes in some of the best regions of the US for less than half the build cost, government backed rental guarantees, buy back guarantees, record low interest rates, net yields in excess of 10%. Do you know that more millionaires are made in periods of economic downturn than in a boom? This is because such periods present opportunities that are generally not available in the good times, and this is the case right now. We are literally seeing some of the best opportunities in a generation and smart investors are jumping on them.

Let’s face it, can you see property prices in the UK falling by more than 30%? Can good American property stay below build cost for long? And this is just a couple of examples.

My point is, keep an eye on trends and be aware of what may happen in the future but don’t base you’re buying decisions on predictions and become blinkered to the opportunities that exist right now. Factor potential changes such as increasing interest rates or falling house prices into your investment decisions and you’ll be well on your way to making good investments.

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.

As we near the end of 2010 let’s take a brief look at how things in the housing market have changed over the year.

The average house price in the UK looks much as it did at the beginning of the year. According to the Nationwide the average cost of a home in the UK stands at £163, 398, it started the year at £162,887.  In that time we have seen the last government go and the first coalition government since the second world war arrive.  Home Information Packs (HIPS) have been abolished and the market has experienced a significant increase in supply as a result.  It is widely believed that it is this that has held prices back during 2010.

The Bank of England base rate has remained at the historically low level of 0.5% for the duration of the year providing welcome relief to many home owners with mortgages.  In fact our most recent survey indicates that 71% of respondents are currently benefiting from low interest rates, that’s the highest level since April.

So what’s happened to prices in the last month

According to the Nationwide house price index prices fell by 0.3% during November.  It’s much the same picture with the Halifax survey of house prices which reports a tiny 0.1% drop during the month.  Commenting on the figures Martin Ellis, Halifax housing economist said: “The highly mixed picture of monthly house price rises and falls recorded this year continued. Such a varied monthly pattern is consistent with a relatively flat underlying trend for house prices.”

With a decline of 0.8% the Hometrack house price survey reported the largest fall for the month.  Richard Donnell Director of Research comments: “A continued reduction in the supply of homes for sale seems inevitable in the coming months as vendors either reduce asking prices or withdraw property from the market. We expect this to act as a support to pricing levels over the second part of 2011.”

The window of opportunity is still open for investors.  With none of the major commentators predicting drama in the market, right now continues to offer a great time to buy.  A static market provides some excellent room for negotiation and we are securing some great opportunities at well below market value as a result.  Don’t leave it too long, if you are in a position to invest do so now before the window starts to close.

In the news

Recommendation is for a single house price index

The UK government’s chief adviser on official statistics has recommended that a single official house price index should be introduced.

Concerns regarding the coverage and clarity of official housing statistics led to the review by national statistician Jill Matheson.

Currently the Department for Communities and Local Goevernment (DCLG) produces housing statistics for the UK and the Land registry provides data for England and Wales. This causes a lot of cross over and conflicting information which creates confusion and often misleading information.

The two bodies have been asked to work together on the feasibility of producing a joint statistical report containing a headline house price index.

To further add to the confusion lenders the Halifax and Nationwide produce their own house price data along with several others such as Rightmove and Hometrack.

“There is a great deal of interest in and importance placed on changes in the value of our houses by all sections of society,” Ms Matheson said.

“I want to be sure that official statistics producers are providing the right statistics on house prices to support decision making by us all.”

Demand has increased dramatically for Spanish island of Majorca

Demand for property on the Spanish island of Mallorca has increased dramatically during the last year as a result of realistic price corrections. British developer Taylor Wimpey de España has seen increases of up to 50% in sales from last year. The island has played a major part in bolstering figures by doubling their year on year sales. Sales to foreign buyers in particular have been driven by the price adjustments of up to 25%.

Many developers are now looking to launch new developments to keep up with demand. Mallorca has seen much stronger sales figures than much of mainland Spain and many people now believe the island could lead the recovery in the Spanish property sector.

According to Spanish press reports, Gabriel Oliver, President of Balearic developer’s association, Proinba said: “Developers are very pleased with sales this year. They expect to close the year with 4,000 new homes sold, reducing the inventory of new homes by 2,000, or 34%. As a result there may be demand to start building new homes again in the second half of next year”.

Oliver believes that real estate prices on the islands have now hit bottom after declining 15% since their peak in 2008. He said that getting the price right is the key to recovery.

Country profile – Spain

The second largest country in the European Union by area, Spain occupies an enviable position on the Iberian Peninsula with both Atlantic and Mediterranean coasts and divided from France by the Pyrenees mountain range. A land of great diversity from lush forests to barren desert, and beautiful sandy beaches to snow capped mountain ranges Spain really is unique.

With an empire that stretched to all four corners of the world Spain was Europe’s leading power throughout the 16th and most of the 17th centuries. Because of its reach it was said that the sun never set in the Spanish empire. As a result of Spanish influence around the planet the Spanish language is widely spoken, particularly in South and Central America as well as the Caribbean and even the United States.

Today Spain is a major European Union member state. During the 1960’s the country registered unprecedented economic growth in what was called the Spanish miracle. Tourism became a major part of the economy as tiny fishing communities were replaced with huge hotels and resorts.

Why we think Spain is a great place to invest

During the last four decades the Spanish tourism industry has grown to become the second biggest in the world, According to the World Travel & Tourism Council, Spain generated a massive €225.4 billion in economic activity related to tourism in 2007. Keen to maintain its position as a major destination the Spanish government invested approximately 40 billion Euros, about 5% of GDP, into tourism related facilities and infrastructure during 2007.

The figures are truly staggering. Each year Spain welcomes in excess of 60 million visitors with nearly 14 million from the UK alone. The developing luxury end of the market is growing as new golf and spa resorts draw wealthy visitors from around the world, including the United States, Northern Europe and Russia. Because of this it is widely expected that tourism income will increase over the coming years.

Although many areas of the property market have taken somewhat of a battering recently this is by no means representative of the entire market and many regions are still providing good returns. Investors might need to rethink their Spanish property buying strategies a little, but counting this country out is not worth the bet. From its pristine beaches to its beautiful mountains and historic sites, Spain still has what it takes to pull in expats, holidaymakers and buyers. Considering this, investing in Spanish property still makes a great deal of sense.

Take a look at our property pages for full details of our Spanish property investment opportunities.

And finally

Almost a year ago it was announced that the UK was out of recession. In fact, the economy recorded growth for q4 of 2009 and has been growing ever since, yet to listen to the constant barrage of negative reporting from the country’s media you’d be forgiven for thinking that we are still firmly in recession. This got me thinking. Are things really that bad?

I thought I would take a look past the headlines and see what is really happening?

During 2008 and 2009 the UK economy experienced 6 consecutive quarters of contraction, however, the last 4 quarters have seen collective growth of 2.8% and there is no reason to believe that this will not continue. Manufacturing output grew at its fastest rate in 16 years during November and is fast turning into the economy’s golden child as it leads the UK out of recession.

Headlines earlier in December proclaimed that unemployment had experienced a quarterly increase of 35,000 bringing the figure to 2.5m. This is indeed true, but when you look a little deeper things aren’t quite as shocking as at first they appear. Employment within private firms stands at 23.11m, completely unchanged since the summer, however, public sector employment had fallen by 33,000 which makes the overall figure rather unsurprising given that the government has been very clear about making cuts in its workforce.

Therefore we can conclude that the rise in unemployment was caused by cuts and not a weakening jobs sector. This makes private sector figures very positive, yet somehow they have become buried under shock headlines of rising unemployment. Let’s not forget it will be the private sector that will need to take up the slack from cuts in the public sector.

Now don’t misunderstand me, unemployment of any sort is very sad but my point is that the overall picture is more positive than the headlines would have us believe. Remember, this time last year the headlines were that unemployment would reach 2.8m in 2010. 300,000 people in the UK are still in jobs that were expected to no longer exist; now that’s good news, but I don’t see it on the newspaper stands.

My point is that it’s very easy to get caught up in doom and gloom even when the figures don’t really support the headlines. The UK still retains its AAA credit rating when many other leading economies have been downgraded. Our unemployment rate is lower than many of our rivals and believe it or not, we have been out of recession for almost as long as we were in it. Here’s to a positive New Year.

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:

The Nationwide house price index reveals a fall of -0.7% for October, bringing the average price to £164,381. The average price quoted by the Halifax is broadly in agreement at £164,919, however their index reports an increase during October of 1.8%. Commenting on these figures Halifax housing economist, martin Ellis said: “We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners.”

The Hometrack house price survey reports that prices are 0.9% lower than the previous month however, results from the LSL Acadametrics report show that prices not only increased by 0.3% but that this is the sixth consecutive month of price increases. Richard Sexton on behalf of LSL comments: “House price growth may have been marginal over the last six months, but the housing market has shown a surprising resilience in the face of strong headwinds. For cash buyers – or those with a big enough deposit – the market presents an attractive opportunity. The supply of properties on sale has continued to grow, and vendors are increasingly flexible over price negotiations.”

The UK base rate has now remained at 0.5% since March 2009 and certainly looks set to stay there for some months to come.  With the Bank of England becoming more open to the idea of a new round of quantitative easing it is widely believed that the housing market could be boosted as a result. 2011 could be the year that sees a return to more predictable growth and a strengthening market.

In the news

Third quarter growth confirmed at 0.8%

The UK economy grew at 0.8% between July and September, latest official figures have confirmed.The Office for National Statistics (ONS) said exports of goods and services rose by 2.2% while imports rose by 0.7%.

However, growth in government and household spending slowed. During the third quarter of 2010, household expenditure grew by 0.3%, the ONS said. The ONS also confirmed that the economy had grown by 2.8% compared with a year ago.

David Kern, chief economist at the British Chambers of Commerce, said the latest figures showed the UK’s economic recovery remained “on course and is broadly based”.

“The figures confirm our assessment that the UK economy is in a more robust state than many had thought,” he said.

And across the Atlantic US spending rises

Latest data from the US commerce department reveals that household incomes and spending rose during October, giving Wall Street a lift.

Personal income was 0.5% higher than September and consumer spending was up by 0.4%. Markets were also encouraged by a report from the US Department of Labour that said weekly claims for unemployment benefits fell to the lowest level in more than two years last week.

News of this surprise drop in unemployment benefit claims along with the spending report boosted US shares, even though difficulties still remain within the US housing market.

Country profile – France

A major player on the world stage and a country at the centre of European politics, France is a nation with substantial global influence and continues to play an important role in shaping the world as it has done for centuries.

From the snowy peaks of the Alps and Pyrenees to the sun drenched Mediterranean coast, and sleepy villages to vibrant cities, this is a land of extremes. Beyond the shores of mainland France, the nation has retained a high number of overseas territories. Uniquely, many of these are controlled centrally and form part of the French system of departements. Because of these overseas territories France has the 2nd largest Exclusive Economic Zone (EEZ) (the sea zone over which a state has special rights over resources and exploration) in the world, beaten only by the United States.

France is the largest country in Western Europe with a land area more than twice that of the United Kingdom yet it’s population is broadly the same. The most visited country in the world by a very substantial margin France attracted nearly 75m visitors last year, as such tourism is an important sector for the French economy.

Why we think France is a great place to invest

French property has always attracted buyers from the UK. Being our closest mainland neighbour and with ease of access via air, rail, road or sea it’s easy to see why. Buying property in France is relatively straight forward, although the transaction will most likely be conducted in French so it’s important to work with a good agent.

France has a mature property market and well established financial and legal systems as well as first class infrastructure, further enhancing its image as a great place in which to buy. Although property prices in France have suffered considerable falls this has differed greatly from region to region, and today the market is broadly stable. Historically, the French property market has been more stable than many other markets, with houses generally appreciating in value steadily rather than having rapid price inflation followed by dramatic price falls.

The country offers a huge range of property, from chic city centre apartments, ski lodges and stunning Mediterranean villas, to quaint country cottages and rambling farmhouses. Many bargains can be found for those who are prepared to look a little further beyond the well known towns and villages.

Many British people have purchased property in France through the French leaseback scheme. This highly successful government initiative is designed to promote investment and tourism in France, and leaseback properties are available throughout the country in a huge range of styles. Under the scheme an investor guarantees to lease the property back to a holiday management company for a set period (normally around 20 years). In return the buyer receives a refund of the VAT included in the purchase price, resulting in a substantial saving. Many leaseback properties also provide guaranteed rent for the lease period and an annual personal usage allowance.

If you are interested in buying in France, we are currently offering a superb opportunity in the Limousin region with a 5 year rental guarantee and 150% buy back guarantee. This stunning five star 19th centrury Chateau spa resort offers outstanding investment potential.
Click here to view the investment brochure.

And finally

A few days ago I read an interesting article by a well known American business philosopher, Jim Rohn. The article focused on the importance of building a successful team and re-enforced something that I have been saying for years; in the world of property investment it is essential to build a team that you can rely on, a team that will really help you reach your goals, a team that will bring you success.

In his article Jim applies this to business, so at first you may be of the opinion that this doesn’t apply to property investment, but of course property investment is a business and should be viewed and approached as such, something many property investors fail to recognise.

It is when you change your mindset and start to apply sound business principles to property investment (something that my colleague Anthony Tinsley focuses on in his master class) that it becomes clear why Jim’s message is so relevant for property investors. No one buys property on their own. Without really thinking about it they rely on financial advisors, solicitors, estate agents and property sourcers to name but a few. So why not ensure that these are the very best and working together as effectively as possible?

In his article Jim lays out a four part checklist to help find the right people. He highlights instinct as a major aspect in making his 4 part plan successful. The four points are:

Check history – are they well qualified to undertake the work? How long have they been doing this particular role?

Check interest level – how interested are they to have your business. Arrange to meet face to face; this is a good way to gauge interest.

Check responses – ask searching questions and listen carefully to the responses. This will tell you a lot about a person’s integrity, character and skills.

Check results – The most crucial point is results. What have they achieved for other clients? Maybe they would let you speak to other clients to ask their opinion.

Building an effective team is potentially one of the greatest challenges for property investors. It is time consuming and requires a great deal of research, but ultimately it will pay dividends. Of course, the best way to do this is to place your trust in a company that already has an unbeatable ‘power team’. You are already in a strong position because you have found one such company, the Worldwide Property Group. Our global network of mortgage professionals, legal experts, property sourcers, developers, letting agents, property furnishers and more, means that by adding just one contact to your team, you are in affect adding a full and unbeatable ‘power team’.

We have spent much time, energy and resources building this network to ensure that our clients have access to the very best professionals in the industry. As a client of the Worldwide Property Group these people are at your disposal and will do their very best to ensure that your property investment business can reach its maximum potential.

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:

One of the larger cuts announced was to the area of social housing. This will have a significant effect on the social and private rental sector. With council rents for some tenants expected to rise to 80% of market value and the abolition of life time rental agreements the private rented sector is undoubtedly about to get somewhat busier. For property investors this could prove to be good news.

With regard to house prices, Autumn appears to be showing signs of being a generally quiet period. During September, house prices basically remained static. The Nationwide house price survey reveals a marginal increase in prices of 0.1%, whilst the Hometrack survey of house prices shows a slight fall at -0.4%. In their most recent survey Rightmove reports a 3.1% increase in asking prices whilst the Halifax house price index shows a fall of 3.6%. Overall, we can conclude that prices are currently standing still.

Generally, market opinion is that prices are being kept relatively stable by a reduction in supply which is enabling demand and supply to rebalance. Limited supply last year caused prices to rise unexpectedly.

In the news

Sustained low interest rates causing increased desire to purchase property


Results from our latest confidence tracker survey have revealed that sustained low interest rates are causing more respondents to consider property as a means of investment. Of those questioned, 64% said that they are benefiting from the continuing low level of interest rates. Interestingly, 71% said that the current level of rates had increased their desire to purchase a property, making this the highest figure since the survey began in August 2009.

This increased desire has also demonstrated that confidence in property has once again reached its highest level since April. In the September confidence tracker survey, a huge 86% of respondents said that now is a good time to buy a property in the UK. In addition, 73% are of the opinion that this is also good time to buy a property overseas; again the highest level since April, with 68% actively considering buying a foreign property.

Of the regions that are of most interest, the United States, Caribbean and Brazil were still top of the list closely followed by more traditional European countries such as Spain and France, Italy and Portugal also ranked highly.

Commenting on the figures, Kevin Wilkes, Managing Director of the Worldwide Property Group said: “The results of this survey make for very positive reading. I am delighted to see that confidence in property both in the UK and overseas has reached such a high level. It is also very interesting to see that with all the fantastic opportunities currently available around the world, it is still the more traditional markets that draw the most interest. This is valuable information as it enables us to offer exactly what our clients want.”

Construction leads the way to Turkish recovery

The latest figures from the Turkish Statistics Institute shows that the Turkish economy saw GDP growth of 10.3% in the second quarter of the year, making it the world’s third fastest growing economy for the April June quarter, behind Singapore and Taiwan.

The figures also show the Turkish construction sector posted a 21.9% growth in the second quarter of 2010. These statistics back up the confidence in the Turkish property industry, according to leading real estate agents.

Over 32,000 Brits are now reported to own property in Turkey according to the Turkish General Directorate of Land Registry. They are looking to buy both holiday homes and properties for investment in order to benefit from the inevitable property price rises to come after economic recovery from the global finance crisis.

Another report has shown that Turkey is leading the way in terms of real estate market transparency. In recent years the Turkish government has made a strong commitment to improving the business environment and has introduced a number of private initiatives aimed at improving real property data. Such news is likely to further add to the destination’s desirability as an investment option, with strong economic growth and a robust housing market already helping to attract buyers.

What is it? Leverage

Leverage is one of those awful terms that people in all industries tend to throw around like it really means something. The thing is, in the world of property investment, it really does.

Take a look in the thesaurus and you will notice several alternative words for leverage that all follow the same pattern: influence, power, force, control etc. Relate these back to property investment and leverage is all of these things – it is a powerful force that gives you tremendous influence and control over your investment returns.

Quite simply, leverage (also known as gearing) is the means of achieving a large output from a very small input. Think of a lever or a set of gears. By inputting a small amount of energy you can achieve an output of greatly increased force, often by a factor of three or four times or more. Think of this with money. You want to buy an investment property that will generate the maximum return on your initial investment. Your return will be increased the lower your initial capital investment, so the key is to put in as little money as possible. But how do you achieve this?

You use the power of OPM (other people’s money): you borrow it! Even in today’s market it is possible to borrow the vast majority of capital required to purchase a property.

Imagine you buy a £100,000 property using all of your own money. If the property value increases by 25% you have a return on your investment of 25% right? Now imagine you purchased the same £100,000 property using £25,000 of your own money and £75,000 of the banks money. Now if the property increases by 25% you have a return on your investment of 100%; and with the other £75,000 you still have, you could have purchased another 3 properties.

This is the power of leverage!

And finally

One of the biggest mistakes I see property investors make is waiting for the ‘right’ time, I would urge you not to fall into the same trap, don’t wait for the ‘right’ time.

What on earth am I talking about?

Let me explain.

Many people believe that the right time to invest in property is at the bottom of the price cycle. It makes sense doesn’t it? When the cycle is at the bottom, prices will be at their lowest point and you will therefore end up paying the lowest possible price. Wrong!

There are a number of reasons why this approach is wrong. Bargains appear at any time of the cycle, but more importantly, can anyone read the bottom of the market? I don’t believe so. Many people are so consumed with timing the market that they actually forget to buy something. They watch and they wait. They’re never quite sure if the market might fall that little bit further so they hold back. Of course by the time they make their move the market is already heading back up and all the perceived ‘bargains’ have vanished. Even then they think ‘maybe this is a blip’ believing that prices will fall again; so they wait. Of course, they never actually buy anything, and all this time others are making good returns on their investments. So the market cycle starts over again and so does the waiting.

Of course timing the markets to some degree is important, however, it is certainly not the key to successful investing. I’m sure you have heard the saying “the best time to invest was 20 years ago, the second best time to invest is now”. There is a lot of wisdom in this. Sure, if you buy today the market may well fall a little further; if it does it won’t be long before it has rebounded and moved higher than your initial entry point. But what if the market doesn’t fall any further? Simply by waiting you would be investing at a higher level, or worse still, not investing at all.

Property investment is about making the best return you can, not the best return possible. Very few actually achieve that and then it’s more by luck than judgement. Only a crystal ball would guarantee this kind of success and I’m pretty certain that these don’t exist.

The message here is to buy when you are ready and can afford the investment. Well located, highly sought after property rarely declines in value over the long term…and let’s be clear about this, property investment should always be a medium to long term strategy, this is how you minimise risk and maximise your return. How many people who are currently waiting for the ‘right’ time will look back in 10 or 15 years and kick themselves for not having invested today? Probably just as many who are currently kicking themselves for not having invested 10 or 15 years ago.

I’m not saying that you should not be aware of the market, of course you should, but it is not the only consideration when investing. It’s natural to be cautious and while you should carefully assess your own personal position when it comes to your capacity to invest, you should also remember that with risk comes reward. Procrastination does not equal profit. You’ll never find the perfect time or the perfect property. Yes, there are risks involved – as with all investing – but these can be minimised with good research, financial planning, goal setting and of course, advice from experienced and independent experts.

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.

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According to Richard Donnell, director of research at Hometrack, over the last 5 months the supply of housing for sale has grown by 14%. The supply of homes for sale grew by 2.4% in August alone – well above average for what is typically a quiet month. Over the last 5 years supply has grown by an average of 0.8% during the month of August. The Hometrack survey of house prices for August shows a slight fall of 0.3% on average.

According to Rightmove, the current supply/demand imbalance has resulted in an overall drop in asking prices of 1.1% for the month. The Nationwide house price index also reveals a fall in prices for August of 0.9% bringing the average price of a home in the UK to £166,507.

Interestingly, the Halifax price survey shows an increase of 0.2%. What is clear is that house prices have been generally static during the summer months. As the imbalance between supply and demand re-balances we should start to see strengthening house price growth.

This is currently a buyer’s market with sellers dropping prices to secure a sale. Purchasers are currently securing some excellent discounts from the asking prices of property. The hometrack survey reveals that the percentage of asking price being achieved currently stands at 93.5% on average. That is an average discount of 6.5% without really having to do anything. What a great time to buy a UK property.

Construction sector heads UK growth

The UK emerged from recession in the last three months of 2009 and has been growing steadily since. If the current quarter turns out to have delivered growth, then at the end of September the UK economy will have been growing for a year. In part, economic stimulation measures introduced by the government have been responsible for this growth; however, with many of these measures now at an end, economic growth is clearly coming from other areas. Recently the star performer has been the construction sector.

Between April and June this year, the biggest growth area – compared with the same period of 2009 – was construction. After grinding almost to a standstill in 2009, this sector has been bouncing back as demand for property starts to increase once again.

The Confederation of British Industry (CBI) has predicted that the UK economy will grow by 2% next year. With house sales continuing to pick up, and growing demand for property, it looks likely that the construction sector will continue to play an important role in UK economic growth.

Interest in overseas property at its highest level since April

Results from our latest survey show that interest in buying property overseas is now at its highest level since April of this year.

The confidence tracker survey for August reveals that a huge 72% of people who responded believe that right now is a good time to invest in foreign property. Interestingly, 72% also said that they are currently considering purchasing a property overseas with the United States, Caribbean and Spain still the most popular regions. Brazil was also ranked very highly by these people.

On the subject of UK property, 82% of the survey respondents are of the opinion that this is currently a good time to buy.

When questioned about interest rates, 46% were of the opinion that rates will increase over the next 12 months, however, this is the second lowest figure since the survey began over a year ago, and well below the April peak of 79%. 56% of respondents said that they are directly benefiting from the current low level of interest rates with half of the view that this has increased their desire to buy a property in the UK.

Once again we see mounting evidence of people’s belief that interest rates will remain low for quite some time. The number of people who feel that rates will increase over the coming year has progressively reduced over the last 4 months, if this trend is correct this is excellent news for anyone buying a property.

It is also welcome news that Brazil has been ranked highly by the respondents of this survey. The country offers some incredible opportunities and we have seen interest and subsequent sales of property here rise sharply in recent months.

Interested in taking the survey and the chance to grab some John Lewis vouchers? Click here

• Full name – Federative republic of Brazil
• Location – Eastern and central South America
• Capital city – Brasilia
• Government – Presidential federal republic
• Currency – Real (R$)
• Economy – 8th by GDP (Nominal) (IMF)
• Population
  – 193.5m (Brazilian official population clock)
• Language – Portuguese

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.  In fact, it moved up 2 places in the last year alone according to IMF and Worldbank figures.

Originally a colony of Portugal, Brazil has been an independent nation for nearly 200 years. A great deal of Portuguese influence still remains with a large amount of Portuguese architecture still in existence and of course the official language of Brazil is still Portuguese. Today Brazil is the 4th most populous democracy in the world and is playing an increasingly important role of the global political stage.

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 fact, Brazil is one of the driving forces behind the International Space Station.

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.

Why we believe Brazil is a great place to invest

Global tourism is expanding rapidly and Brazil is working hard to secure a significant and growing share of the market. With some of the most diverse and stunning landscapes on the planet, Brazil really does have it all – miles of deserted tropical beaches, rainforest, fascinating culture, modern and exciting cities and a climate that suits everyone.

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. This is having a huge impact on the country’s ability to cope with rapidly increasing visitor numbers.

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. Because of Brazil’s growing popularity as a tourist destination, there are an increasing number of scheduled direct flights between major European centres and many Brazilian regions. Surprisingly the flying time from London to Natal is 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.

Right now you can invest in one of Brazil’s new 5 star resorts for just £1,000*.

Click here to visit our property pages where you will find details of this and all of our other current opportunities, or call us on 01235 553569 for more information.

When using 100% finance option and subject to status

There are many reasons for this shift. Younger generations are becoming far more mobile, often moving to completely different regions driven by career progression and cost of living. Flexibility has become far more important and it is much easier to be flexible if you are not tied to an area by home ownership. Many older people are choosing to rent as it is a very simple way to release the equity built up over a lifetime of ownership. Then of course there are the obvious benefits, no estate agent fees, no stamp duty, no costly maintenance, no sales and purchasing stress; the downside is that renters waive the potential to make substantial profit on their homes. This leaves the profit potential for property owners, investors like you and me.The estate agency Savills predicts that by 2020 some 20% of households will be privately rented – up from 15% today and a low of 9% in 1988. This means opportunity
for buy to let investors.

So is this forecast realistic? Well you only have to look at our continental neighbours to answer this. In 2007, just 56% of French and 43% of German households were owner-occupied. Renting is common place in most European countries and there is no reason to suggest that the UK could not follow their lead. In many respects this shift is nothing more than a move back to a past era, right up until the 1950’s renting was the norm, so in many respects the owner occupier situation is a new phenomenon.

I truly believe that the increase in renting is not a short term trend but rather a shift in the psyche of our nation. Therefore this is exceptionally good news for anyone who currently owns or is planning to own rental property in the UK. As has been the case for many generations, wealth will find its way into the hands of property owners. Just make sure that you are one.

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.

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Closer to home, the UK housing market is witnessing something of a hiccup with all the main house price surveys recording slight falls. The hometrack house price survey has reported a miniscule reduction in the average house price of 0.1% whilst the Nationwide survey shows a slightly larger decline of 0.5%. Interesting, the Halifax report revealed an increase of 0.6% showing just how unpredictable these surveys can be on a monthly basis. It is not until we look at the data over several months or more that true trends become revealed.

It is most likely that the current survey results have been caused by the abolition of HIPS which has resulted in an increased supply of property. A point picked up on by Nationwide’s chief economist, Martin Gahbauer when commenting on the survey results: “Up until recently, the shortage of buyers in the market was more than offset by an even more severe shortage of properties for sale, with the result that prices rose. Evidence continues to build that this imbalance between supply and demand is easing. The abolition of HIPs has encouraged more speculative sellers to test the market, while some of the excess supply seen in the rental market during 2009 now appears to be making its way back into the sales market as temporary landlords make another attempt to sell their properties.”

With a general shortfall of property in the UK this situation will undoubtedly re-balance causing prices to begin their upward trend once again.

Rents are rising according to survey

Landlords have raised their rents for the sixth consecutive month as demand has increased and supply is squeezed a recent survey has found.

The poll, carried out by LSL Property Services reveals that rents increased by 0.5% in July alone and are now 2.3% higher than a year ago. The average monthly rent now stands at £676 according to the survey, although this varies greatly from region to region.

Commenting on the results LSL Property Services Estate Agency MD, David Newnes said: “Rents are still heading upwards towards their peak level two years ago, and yields are at their highest this year. The current market presents a golden opportunity for property investment before house prices resume their long-term upwards march. The underlying fundamentals that underpin sound property investment – demand and rental income – look set to remain strong. With a sensible investment model, a landlord can expect to see healthy returns, with any future capital appreciation a bonus.”

Older generation shows greatest property confidence

Results from our latest survey reveal some interesting differences between the generations. Although the vast majority of people who took the survey are of the opinion that property prices will not fall over the coming year, there are large differences in opinion between the generations with the 45 – 54 age category showing the greatest confidence.

60% of respondents within both the 45-54 and 55-64 age group expect prices to rise in the next 12 months versus just 23% of the 35-44 age group. What’s more a huge 100% of 45-54 year olds believe that right now is a great time to buy UK property with 90% of the opinion that the current market also offers excellent opportunity overseas; indeed 80% are currently considering buying an international property. This is in stark contrast to the under 25’s where just 50% feel that today is a good time to buy a property in the UK.

Confidence in property as an investment continues to ride high as it offers great stability when compared to other investment categories and can provide much greater returns and safety in the long term. 74% of people who took the survey voted property the best investment category.  Interestingly shares didn’t receive even 1 vote.

Interested in taking the survey and the chance to grab some John Lewis vouchers? Click here

• Location – Northern North America
• Capital city – Ottawa
• Government – Parliamentary democracy and constitutional monarchy
• Currency – Canadian Dollar ($)
• Economy
  – 10th by GDP (Nominal) (IMF)
• Population – 33.6m (UN 2009)
• Language – English, French and 8 regional languages

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 30C and souring 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 was 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.

If you are interested in investing in Canada we currently have a superb opportunity in the Nova Scotia region with entry costs as low as £6,000. For more information please click here.

To view our full range of investment opportunities please click here.

*Mercer 2010 quality of living survey.

Of the top six best performing companies that morning 4 of them were property developers. Barratt developments, Persimmon, Bovis Homes Group and Taylor Wimpy were all listed, with Taylor Wimpy heading the table with a massive 9.15% increase.

So what does this show us?

Read into it what you will, but my view is that general opinion is leaning towards the view that housing demand is set to increase again, and therefore it goes without saying that the construction of new homes will also need to increase. We are currently in a position where the supply of property for sale is greater than demand, but with a general shortfall of housing in the UK and increasingly positive signs of economic recovery this situation will undoubtedly reverse quickly, and the market knows this.

Increasing market confidence in the home building sector is a strong indicator that things are starting to pick up in the property sector.

Interestingly Bovis Homes announced yesterday that the group has made a pre tax profit of £3.5m for the first 6 months of 2010, turning around an £8.6m loss for the same period last year. The company has been busy buying land and has now added 1,874 consented land plots (plots with planning permission) to its land banks. This equates to around 1 year of land supply for the company. After a period of limited house construction it appears that building may be about to pick up again.

Would a major house builder be buying land if they thought prices and demand were going to fall? I don’t believe so. It’s been my personal view for some time that 2012 will be the year that will see a strong surge in UK economic growth. The banks will have re-financed and will have to lend more freely, the UK population – which currently grows by an average of 0.6% per year – will create additional demand for housing, and as the trend for renting increases there will be a greater demand for rental property overall which is excellent news for property investors.

I believe that history will reveal this to have been a great time to invest in property. Don’t let it pass you by.

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.

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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.

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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.

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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.