Overseas Property Investment Consultancy & UK Property Investment Consultancy

Global Investor
The monthly newsletter from
The Worldwide Property Group

October 2009

Global Interest Rates                         Exchange rates £1 buys:

Market Update

Comments made by the governor of the bank of England earlier in the week sent the pound souring against other currencies. Mervyn King revealed that the Monetary Policy Committee voted 9 – 0 in favour of not pumping any more money into the economy. This has widely been viewed as excellent news as it indicates that the economy is improving and no longer needs this support from the central bank. Following this news the pound rose 1.8% against the US Dollar and 1.1% against the Euro.

The MPC also agreed unanimously to maintain the base rate at 0.5% therefore bringing continued relief to many mortgage borrowers.

Around the world stock markets have continued to bounce back with the FTSE now standing at 5200 points, somewhat higher than its March low of 3500 points.

The UK housing market has also showed continuing signs of improvement as the next article shows. All of the main house price surveys have reported increases over the last month with The Halifax and Nationwide house price indexes revealing growth of 1.6% and 0.9% respectively during September. Rightmove who monitor asking prices with their survey have shown that there was an increase of 0.6% compared to August.

Commenting on the Nationwide figures, Martin Gahbauer, Nationwide’s Chief Economist said: “The further increase in house prices is very much consistent with improvements in a broad range of economic and financial indicators over the last few months, all of which suggest that the most intense phase of the recession and financial crisis has probably passed.”

Property sales increased during the summer months

According to recent figures from HM Revenue and Customs (HMRC), property sales in the UK picked up during the summer.

The third quarter of this year (July to September) shows an 11% increase in sales compared to the previous 3 months. Total sales in September stood at 82,000, 2,000 higher than in August but still someway short of July’s 86,000 figure. However, the 3 month trend is clearly upwards and this is welcome news for everyone, especially estate agents who have experienced 2 years of very tough conditions.

These figures echo those published earlier in the week by the Council of Mortgage Lenders (CML). These figures reveal that total mortgage lending during the third quarter had increased by 18% compared to the previous 3 months. Once again, very positive news that hopefully indicates an easing of mortgage lending.

• Full name – Commonwealth of the Bahamas
• Location – North Western Atlantic Ocean
• Capital – Nassau
• Government – Constitutional Parliamentary Democracy
• Economy – 131st by GDP (Nominal) (IMF)
• Currency – Bahamian Dollar
• Population – 335,000 (UN 2008)
• Language – English

Located in clear warm Atlantic waters on the eastern edge of the Caribbean Sea and just 45 miles from Florida, the Bahamas is a sub tropical paradise of white sandy beaches, beautiful forests exciting towns contrasting ultra modern with charming traditional architecture.

The Bahamas is made up of around 700 islands and cays, although only 29 of the islands are inhabited. Originally a British crown colony, the country was made internally self governing in 1964 and eventually gained full independence in 1973 although it was decided to retain membership of the Commonwealth of Nations. As such the current head of state is Queen Elizabeth II.

Although small (roughly the same size as Northern Ireland), the Bahamas enjoys a high per capita income. The country is a major centre for off shore finance and has one of the world’s largest open registry shipping fleets.

The country’s location just 45 miles from Miami and a short flight from New York provides a huge level of opportunity that has enabled the Bahamas to thrive.

Why invest in the Bahamas

Since the early 1950’s, tourism has played an increasingly important role in the country’s economic growth and today, along with off shore finance, accounts for the bulk of the country’s economy. Just over 2 million* people visited the islands last year.

The country has much to offer with a coast line of nearly 1,500 miles, incredible water sports, tropical forests, world-class shopping, restaurants and nightlife. Spectacular resorts such as Atlantis offer the visitor unprecedented levels of luxury, an experience which has now been exported to the leader in luxury holidays – Dubai.

Property investment in the Bahamas offers a number of irresistible incentives. For instance, investors can take advantage of all manner of exemptions and investment incentives that provide relief from duties, taxes and fees. In fact, the Bahamas is largely tax free therefore making investment returns even better. With certain levels of investment it is even possible to obtain permanent residential status.

This tax haven in the sun is an investors dream. We will shortly be launching an exciting property investment opportunity in the Bahamas, keep checking your email for details.

*Source = Bahamas ministry of tourism – 2008

I recently attended a property investment seminar at a local hotel. This was a good seminar covering some excellent points and finishing with a very non sales’ overview of their main property investment offering. When I left and walked out through the hotel foyer, I noticed a group of attendees gathered around a middle aged chap who appeared to be running his own impromptu presentation, so I went over to listen. What I heard was very surprising.

This self proclaimed property investment expert was in full flow telling everyone just how bad an opportunity this was. The words `con’ and `scam’ were used several times and indeed he even rumbled on about how the figures didn’t stack up and that the company was clearly trying to fleece people out of their hard earned savings.

Now this surprised me because the seminar was free and I encountered no high pressure sales at all. More importantly, the opportunity that they were offering is a deal that I know well, and having spent a huge amount of time looking at the figures, I know that they stack up.

Anyway, I decided to find out what he supposedly knew that I didn’t. Well, confirming my initial thoughts, he knew nothing at all. He wasn’t even a property investor and it transpired that he didn’t even own his own home. So in actual fact, he has never even been through the process of purchasing a property of any sort.

Was he therefore a financial genius who was somehow able to run the figures based on limited information and with only a pad of paper and a pencil? Had he researched the company who had been presenting and he was now so openly knocking? Of course not. He was simply one of the many people who are too scared to invest, yet feel that they are somehow well placed to advise others on why they should not strive to reach financial independence. Worryingly, everyone in his little group was hanging on his every word.

As property investors we need to be a little bit brave. As with any investment there is an element of risk but by becoming well educated, undertaking your own research, and dealing with people you can trust, you will be well placed to make sound investment decisions and ultimately reap the financial rewards. There will always be people ready to tell you why you are making the wrong decision. Some of these may even be close family or friends making it easier for you to doubt yourself. I am not saying do not take advice, but I am saying listen to those people who really know what they are talking about and then invest with your eyes open and ultimately do what you feel is right.

To your success

Kevin Wilkes

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it” – Ronald Reagan (1911 – 2004)

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