|
April 2009 |
||||||||||||||||||||||||||||||||||||||
|
Global Interest Rates Exchange rates £1 buys:
For all your foreign exchange and currency needs please visit our partner Currencies Direct
So UK interest rates are to remain at 0.5% for at least the next month. Could this be an indicator that the Bank of England is becoming less worried about the current state of the economy? Around the world things seem to be settling down a little. The major markets have all been on an upward trend since the beginning of March with banking shares seeing some of the largest rises. Oil prices are falling once again as demand remains subdued and this is having a knock on affect on food and consumer goods pricing as transport costs reduce. Domestic energy prices continue their downward trend taking further pressure off of household spending. We have even seen record personal debt repayment and record savings investment in the UK over the last quarter as people take control of their finances. February also saw an increase in mortgage lending. This is all very positive news. Property prices although still falling are now doing so at a more steady level. Hometrack have revealed that on average house prices fell by 0.6% during March, this is the lowest recorded fall for 10 months. This survey also revealed a number of other positive factors which could indicate that the market is now beginning to turn; average time on market figures fell, percentage of asking price achieved rose, number of sales agreed increased and new buyer registrations also increased during March. The Nationwide house price survey showed an increase in average price of 0.9% for March, further fuelling the growing belief that the market may be at a turning point. The Rightmove house price index also reported a 0.9% increase in asking prices. In addition, Rightmove say that website enquiries during March were up by 120% compared to last year. So have we reached a turning point? Time will tell, but one thing is clear, if we have the window of opportunity to buy at these prices is closing fast.
In the news Surprise mortgage approvals jump Mortgage approvals for house purchases in Britain rose more than expected in February, according to official figures from the Bank of England. There were 38,000 approvals in the month, up from 32,000 in January. There was also the biggest net repayment of consumer debt since records began in April 1993 with consumers repaying £245m worth of credit more than they took out in February, having taken on an extra £165m of credit in January. The mortgage figures suggest that low interest rates and falling house prices may be encouraging people back into the market. "February’s household borrowing figures suggest that housing market activity may finally have turned a corner," said Vicky Redwood at Capital Economics. "However, approvals have a long way to go before they get to levels that are no longer consistent with falling house prices – in fact they need broadly to double." More lending? The rise in mortgage approvals by all lenders is a good short-term indicator of actual lending and suggests this may now pick up. February’s figure was significantly higher than the average of 31,000 for each of the previous six months, and the biggest monthly figure since May last year. Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (Rics), said interest from potential buyers was at last feeding through. "Accessibility to the market still remains a problem, with many first-time buyers struggling to find the necessary deposit," he said. "While it is likely that the numbers of mortgages being approved will continue to edge upwards over the coming months, the level of activity will still remain low by historical standards," he added. But Paul Samter, economist at the Council of Mortgage Lenders, said: "We will need to see a few more months’ figures before we can say with any confidence that market conditions are showing a fundamental improvement. Remember, whether you are an investor or a first time buyer, at The Worldwide Property Group we can introduce you to excellent opportunities at up to 40% below market value. Why not give us a call on 01235 553569 to see how we can help you.
Over the coming months we will be delivering a series of free 1 day training courses for our registered members. These events are designed to give attendees an understanding of the business concepts behind property investment.
As an open and ethical company we believe it is essential that our clients have an understanding of these concepts before investing in property, whether they purchase through us or another company. We therefore offer this as a free course to anyone who would like to attend.
These informative sessions receive excellent feedback from all those who attend. They are delivered only to small groups and convey real information; they are in no way a sales pitch.
If you would like to attend one of these sessions please take a look at the events calendar on our website www.w-wideproperty.com to see which date and location best suits you, then simply give us a call on 01235 553569 and book your place. You can read a number of testimonials given by people who have previously attended this course by clicking the link on the far right. Remember, there is no charge for attending one of our training workshops.
Location – North West Africa Capital – Rabat Government – Constitutional monarchy Economy – 114th* by GDP (Nominal) International membership – Arab League, Arab Maghreb Union, Organisation of the Islamic Conference, Mediterranean Dialogue Group, Group of 77 Currency – Moroccan Dirham (MAD) Population – 31.4 million Language – Arabic Located to the far North West of the African continent (just 8 miles from Europe) and with strong French and Spanish influence Morocco is a fascinating country of great extremes. Benefiting from both Mediterranean and Atlantic coastlines, coastal Morocco enjoys an enviable Mediterranean climate and vast stretches of un-spoilt sandy beaches. Further inland however, the Atlas Mountains tower above the harsh Saharan landscape and temperatures soar to in excess of 40 degrees centigrade. Morocco gained independence from France and Spain in 1956 and although tensions exist to this day over disputed territory with Spain, both counties are major trading partners. Although agriculture is still the biggest sector in the country employing nearly 50% of the working population, Morocco is a developing country and new industry sectors are taking hold such as textiles and telecommunications. Over recent years the Moroccan government has embarked on an aggressive economic programme aimed at increasing real economy growth. State enterprises have been privatised, infrastructure has been vastly improved and major reforms of the financial sector have been implemented. Why we believe Morocco offers great investment potential One primary area of focus has been tourism and this sector is now fast becoming a major aspect of the country’s economy. New world-class resorts are springing up along the coasts and luxury hotels are appearing in the cities in an effort to attract the wealthy, high end tourist sector, a strategy that is paying off as last year Morocco welcomed nearly 7 million visitors and this figure is rising rapidly. Today Morocco has the second largest non-oil GDP in the Arab World. It is this tourism sector which is now attracting investors from around the world. Property prices in Morocco are a great deal cheaper than popular European destinations and are expected to rise sharply over coming years with the rapid growth of tourism. In addition, many developers are aggressively discounting property in an effort to entice overseas investors. Current low pricing mixed with statistically high occupancy levels is resulting in excellent rental yields. 2009 will see a major feasibility study by the European Union into the building of a rail tunnel between Morocco to Spain. If the project goes ahead property prices in the area will increase substantially as the benefits of such a link take effect and Morocco becomes linked to Europe by rail. Morocco is destined to become one of the world’s big tourist centres and as such will prove to be a great place in which to invest. Early investors will enjoy the greatest returns before prices start to rise bringing them more into alignment with European prices. Here at the Worldwide Property Group we believe that Morocco currently offers some incredible investment opportunities and so we have been working hard to secure some of the best available. Interested in finding out more? Give us a call today on 01235 553569. * Source: International Monetary Fund
Mentoring
If you can’t make any of our training workshops or you would like help in creating a goal achieving strategy, then why not consider booking a one to one mentoring meeting. Our mentoring programme is designed to help you achieve your investing goals by giving you the tools you need to be successful and then guiding you in the right direction.
During the meeting we will review your current investment portfolio, financial position and investment goals, and will then build a detailed and focused plan to enable you to take best advantage of your resources and achieve your goals. Mentoring is a service that we offer to all of our clients without charge. It is important to us that you invest with knowledge and understanding.
If you would like to sit down with one of our highly experienced consultants simply give us a call on 01235 553569 and we can book a suitable time and date for you. What is it? – Yield Yield is a term that we hear all the time within the property investment sector. But what exactly is it? Yield can be broken down into two variants, gross yield and net yield. Quite simply yield or rental yield is the amount of money a landlord receives in rent over the course of one year, expressed as a percentage of the amount of money invested in the property. For example, if a buy-to-let investor buys a house worth £200,000 – and tenants pay £10,000 a year in rent – the rental yield on the property would be five per cent. i.e. return (£10,000) divided by investment (£200,000) multiplied by 100 (to turn it into a percentage). This simple calculation shows gross yield and does not factor in property costs such as maintenance, purchase costs, insurances and mortgage costs. When factoring these you can establish your net yield. Quite simply net yield is the yield calculated by using the rental income figure net of expenses. The target yield that an investor will be aiming for is very much a personal choice as it is dependent on the individual’s investment strategy. Many investors as a minimum will be looking for a yield that at least covers any mortgage interest repayments. Of course the yield will also be affected by the level to which the property is mortgaged and the interest rate that is applied to any mortgage. On a lighter note "I have opinions of my own – strong opinions – but I don’t always agree with them. – George Bush" |
Contents
|
|||||||||||||||||||||||||||||||||||||
|
The Worldwide Property Group Ltd. Suite A & B, The Courtyard, Abingdon, Oxford. OX14 5SE Tel: 01235 553569 email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com Copyright – The Worldwide Property Group Ltd 2009
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 |
||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||
| |||||||||||||||||||||||
