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July 2009 |
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Global Interest Rates Exchange rates £1 buys:
 Market Update As the global recession continues into the second half of the year increasingly positive signs are starting to appear indicating that the worst may well now be behind us. Previous growth forecasts for many of the leading industrialised nations are now being revised upwards with the UK expected to reach positive growth again in 2010. According to the International Monetary Fund Global Economic growth during 2009–10 is now projected to be about ½ percentage points higher than projected in the April 2009 World Economic Outlook (WEO), reaching 2.5 percent in 2010. This is indeed excellent news. Much of the volatility within the global economy now seems to have subsided with major stock markets maintaining stability at levels greatly improved since March 2009. Oil prices have dropped over the last month with Brent Crude trading at $62.50 per barrel, down from just over $70 this time last month.
On another positive note, the important three-month sterling Libor rate continued its more rapid descent falling by nearly 2 points a day over recent weeks. Having stabilised at around 1.25% in early to mid-June it started to fall again, possibly helped by the effects of quantitative easing. The flow of newly printed money into the financial system may have helped buoy the confidence banks have in each other. Looking at the UK housing market the overall picture is still rather mixed although increasingly positive signs are starting to appear. Both the Halifax and Rightmove house price surveys show a slight decline for June of 0.5% and 0.4% respectively. However, for the third month running The Hometrack house price survey has recorded no change in the average house price, and further more the percentage of post code districts recording price decreases has dropped to just 3% during June from 13% in May and a substantial 32% in April. With yet another surprise result the Nationwide house price index has revealed a June increase of 0.9% bringing the average UK house price to £156,442. Will this trend continue through the second half of 2009? Only time will tell, but what is clear is that house prices are at or very near the bottom. If you are going to invest, now is most definitely the time to do it.
Caribbean development official launch Over the course of Monday and Tuesday of last week, the lavish launch of the Buccament Bay and Marquis Estate Caribbean developments took place at The Grove country estate just north of London. As expected this was a superbly orchestrated and extremely lavish event which just re-enforces the professionalism of the developer and incredible high quality of the resorts. As one of the main players in this market the Worldwide Property Group was well represented by the company’s directors and consultants.  Anthony Tinsley of the Worldwide Property Group
talks to the Prime Minister of St. Lucia All of the organisations and governments involved in these world class developments were represented showing their commitment to the completion and successful operation of these resorts. Just take a look:
Attendees got a taste of the superb cuisine that will be on offer throughout the resorts as Trader Vics flew in their top chefs from around the world to provide the catering. The cast of Les Miserables performed the stage show, and to show the developers commitment to improving standards and quality for local people through the local supply of fresh produce to the resorts, a charter was signed with the United Nations live on stage. These developments offer investment potential that is without doubt one of the safest and highest returning available today. We have been urging our clients to invest in these outstanding opportunities for quite some time and many now have. Following the launch and subsequent press coverage reservations are going through the roof and prices will soon rise. The early investor discounts are to be withdrawn at the end of this month resulting in a price increase of 25%. If you are interested in investing in one of these outstanding five star resorts call us today on 01235 553569. Quite simply, if you are interested in investing, you cannot afford to miss this opportunity. For details of this and all of our current investment opportunities visit our property pages by clicking the button below.
In the news Consumer confidence at 8 month high U.K. consumer confidence rose to an eight-month high in June as shoppers became more hopeful that the economy will emerge from recession according to the Nationwide. “There has been much talk by industry commentators suggesting that the worst of the recession may be over, which appears to have fed into consumer sentiment,” Martin Gahbauer, Nationwide’s chief economist, said in the statement. “More people expect the economic situation in six months’ time to be better than believe it will be worse.” Optimists on the economy outnumbered pessimists for the first time since the survey began in 2004, Nationwide said. The gauge of sentiment on whether now is a time to make big purchases also increased. In a separate report the British Retail Consortium said Shop-price inflation eased for a third month to 0.7 percent in June from 1.3 percent in May. Combined with increasing consumer confidence this will undoubtedly help to encourage people back onto the High Street.
What is it? – Loan to value Loan-to-value or LTV as it is more commonly expressed is the ratio between the size of a mortgage and the mortgage lender’s valuation of the property. Quite simply the amount that a lender will loan as a percentage of the lenders valuation of the property. For instance, if you are buying or re-mortgaging a property valued at £100,000, and you are borrowing £55,000 in the form of a mortgage, then the mortgage LTV will be 55% as the loan will be 55% of the value of the property. The higher the LTV, the higher the perceived risk for the lender, and therefore the higher the interest rate could be to offset the increased risk. With falling house prices and current credit difficulties, typically achievable LTV has decreased substantially. At the height of the housing boom it was quite possible to achieve an LTV of 85% to 100%, some lenders were even lending at 125% LTV. Today however 60% to 75% is more normal with many lenders considering lending at a level above 75% to be of significantly increased risk. “Intellectuals solve problems; geniuses prevent them.” – Albert Einstein (1879 – 1955)
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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
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Global Investor July 2009
