Overseas Property Investment Consultancy & UK Property Investment Consultancy

At home, all main house price surveys reported an increase in December 2009. The smallest increase was reported by Hometrack at 0.1% whilst the Nationwide and Halifax reported increases of 0.4% and 1% respectively. Although growth is at a slightly slower rate than through the summer months, the housing market looks set to continue its rebound well into 2010 against many market experts’ predictions.

Commenting on the figures, Halifax’s housing economist, Martin Ellis said: “The significant cut in interest rates following the worldwide financial upheaval in the autumn of 2008 has markedly reduced the burden of servicing a mortgage for many households. This has helped to stimulate housing demand, albeit from a low base. The recent improvement in the labour market, has also supported housing demand.”

With some truly superb investment opportunities available right now and more favourable mortgage rates and lending criteria, our advice is to invest now.

Meanwhile, figures for December show that the number of people claiming Jobseeker’s Allowance fell to 1.61 million over the month. This is a fall of 15,200, greatly exceeding the 2,500 figure anticipated by analysts.

Unemployment in the UK now stands at 7.8%, down from 7.9% a month earlier, ending the continuous rise in unemployment that began in the summer of 2008.

Previous predictions that the rate of unemployment would reach 10% are starting to look very unrealistic meaning that 450,000 fewer people are currently out of work than were predicted last spring according to shadow work and pensions secretary Teresa May.

The figures also showed that the number of vacancies being advertised rose by 16,000 compared to the previous three month period.

The Caribbean is a region consisting of more than 7,000 islands in the Caribbean Sea. Landing here in 1492 Christopher Columbus believed he had reached the Indies (Asia), it is this that brings the name ‘West Indies’ and to this day the people of the Caribbean are collectively referred to as West Indian.

Grouped into 27 territories and states the region consists of the Antilles, divided into the larger Greater Antilles which bound the sea on the north and the Lesser Antilles on the south and east (including the Leeward Antilles), and the Bahamas and the Turks and Caicos Islands, which are in fact in the Atlantic Ocean north of Cuba, not in the Caribbean Sea.

The Caribbean is one of the planet’s premier holiday destinations drawing millions of visitors primarily from North America, Europe and increasingly Russia and beyond. Tourism is the mainstay of many Caribbean nations accounting for 30% of total gross domestic product ($20 billion). Since 1990 international arrivals within the Caribbean have increased by 41.2%.

Of the main Caribbean holiday destinations the Dominican Republic is now dominant attracting 4 million visitors during 2008. To put this into perspective Cuba and Jamaica combined attracted visitor numbers of 4.1 million during the same period.

So why invest in Caribbean property?

With many well known Caribbean nations continuing to boom during the global economic downturn the Caribbean is a fantastic place to invest. The region is fast becoming associated with modern, highly luxurious, all inclusive resorts and new ever more luxurious resorts are being built all across the Caribbean as individual nations try and grab a slice of the tourism market; as such there is a great deal of choice for the discerning property investor.

Many Caribbean destinations still have strong ties with major European nations (UK, France, Spain, and the Netherlands) with many still under direct control. As such European languages are widely spoken with English by far the most common language. Also as a result of European influence most Caribbean nations conform to major European legal systems, for instance the Turks and Caicos Islands are governed by English law. This makes much of the Caribbean a very safe place to invest.

To make investing in Caribbean property even more enticing many countries are designated tax havens meaning that taxation is either very low or in many circumstances non existent. Greater stability, good legal and banking systems, tax breaks and great choice make the Caribbean one of the best investment regions in the world.

Interested in finding our more? Give us a call today on 01235 553569 to hear about our fantastic Caribbean opportunities starting with a required investment of just £1,000.

Sources: ft.com, World tourism organisation, Onecaribbean.org

The Libor rate is important because it is the rate at which banks lend money to each other and therefore directly affects the rate at which banks lend money to the general public – you and me.

At the beginning of the credit crunch, this received a great deal of media coverage because although the Bank of England base rate was vastly reduced, the Libor rate remained stubbornly high, thereby having a significant effect on the mortgage market.

So what has been happening to this all important rate?

In January 2008 the Libor rate was marginally above 5.5%, broadly in line with the bank rate. The credit crunch hit, banks stopped lending so readily to each other and the Libor rate climbed to a peak of 6% in early April (the bank rate fell to 5% in that month). By September of that year the Libor rate had fallen back to 5.7% but a dramatic worsening of the credit crisis sent it rocketing to it’s peak of 6.3% (130 basis points away from the bank rate). Over the following months it began to drift downwards but all the time remained significantly higher than the Bank of England base rate.

For a period the Libor rate stuck at around 1.25% but in mid June 2009, as banks began to regain confidence and lending resumed at more favourable rates, it began to fall again. Today it sits at 0.61%, slightly above the bank rate, and consistent with the long term gap seen before the credit crunch.

So what does all this mean for property investors?

The lending market is regaining a greater sense of normality. Inter-bank lending has increased, and at much lower rates. This is now impacting the mortgage market in a positive manner and we are seeing increased mortgage lending on a month by month basis and the introduction of much lower mortgage rates. Only last week for instance we saw a new 75% LTV buy-to-let mortgage appear at 4.55%. Yet more evidence that things are improving.

If you are interested in investing in buy-to-let property, now is the time. Give us a call and see how we can help you.

To your success

Kevin Wilkes