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| Market update Wow, what a month. The general election resulted in a hung parliament, the currency and stock markets went up and down, the Euro zone agreed a huge financial support package for Greece and the Euro, and we have now entered a brave new political world with a Conservative / Liberal Democrat coalition government. 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. In the news 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. Country profile – Florida
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, 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. 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:
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. 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
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| The Worldwide Property Group, Suite A&B, The Courtyard, Lombard St, Abingdon, Oxfordshire, OX14 5SE Tel: 01235 553569 Email: enquiries@w-wideproperty.com Web: www.w-wideproperty.com 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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Global Investor May 2010
