Tag Archives: investors

best cash isa

What investors need to know

What investors need to know. Now that the media attention has died down, it’s a good time to reflect on some of the 2016 Spring Budget welcome changes introduced for savers and investors.

Increased incentives

Whilst the adult Individual Savings Account (ISA) limit for the current tax year remains at £15,240, savers and investors will be able to choose to invest in cash ISAs, stocks and shares ISAs, or an ISA which operates through peer-to-peer lending platforms, or a mixture of the three, up to the permitted allowance. Barrington Howe will shortly be announcing an ISA offering to maximise your tax allowance with one of the best cash ISA opportunities. A great opportunity for investors looking for the best ISA rates.
From April 2017 the ISA allowance will rise to £20,000; this is clearly good news for savers and investors looking to put more of their money into tax-efficient investments.

Increased personal allowances

The personal allowance, the amount you can earn before paying income tax, is increased to £11,000 in the current tax year and will rise to £11,500 from April 2017. The higher rate tax threshold is increased to £43,000 for this tax year and will rise to £45,000 in the 2017-18 tax year.

Capital Gains Tax

The first £11,100 of gains made in this tax year will be free from Capital Gains Tax (CGT). The Chancellor announced more good news in the form of a rate cut for those liable to CGT in the current tax year. In changes that the government hope will encourage further investment in business, a basic rate taxpayer will see the rate drop from 18% to 10%, and higher rate tax payers will see it fall from 28% to 20%. However, those who own a second property will continue to pay at either 18% or 28% when that property is sold.
The Chancellor decided to leave pension tax relief alone, meaning that the incentives to save remain in place.
Scams are on the rise
The tactics used by scammers to encourage people to part with their hard-earned savings and pension funds are often highly-sophisticated and constantly changing, so it’s very important for you to be fraud aware. One example has been outlined by Action Fraud1, the UK’s national reporting centre for fraud and cyber-crime. It has issued a warning about a new scam that has recently come to their attention targeting people in their 50s and 60s. This involves fraudsters offering investments in property in Cape Verde. Often the cold calling companies are over selling these opportunities and in some cases they are fictitious.
How to avoid Fraudulent companies?
There are a number of ways to avoid such companies if you are looking for an investment.
Meet the companies involved. Often people are stand offish. You get more from a face to face meeting than you do on the phone Gain a bit of knowledge. Try to understand the investment. Anyone with more knowledge on a subject can be more comfortable but more importantly make an informed decision.
Ask for a due diligence pack or further background information. Make your own enquiries. Do an internet search and see what is being written about them.

5 investment mistakes to avoid

Of the mistakes made by investors, several of them are repeat offenses. The same mistakes being made over and over. After a few alarming prospective client calls recently, it reinforced our opinion that these types of mistakes need to be eradicated by investors.

1 Not listening
Now be honest investors. Have you ever had someone explain something to you but you have already switched off. You’re not listening for whatever reason? Investors are looking for the best investment opportunities but if you don’t listen to the explanation then how can you know from just a headline? Experience has taught me that sometimes you gain more from listening than you do from speaking.

2 Unreasonable expectations
Looking for the highest rate of return as the main reason for investing is maybe not the best starting point. What is your reason for selecting an investment after all? Understanding the structure or business model? Looking at what conditions could affect the investment? Prefer something offering a lower risk or a form of security in the event that something could go wrong to give you more comfort? Having a reasonable outlook may help you when looking for something that suits you. This leads me to point 3!

3 Understanding your own profile
Do you know how much you can afford to invest? Are you a speculative investor or do you prefer a low risk investment? Understanding yourself is a good point to start when you plan to invest. If you know what you are looking for it’s harder for someone to sway you in a different direction. A very wise man always said if you don’t know what you’re doing then why are you doing it? Invest in yourself first as it’s the most important investment decision you could make.

4 Making emotional rather than informed decisions
Knowledge is power someone once told me and I tend to agree with this. I was always taught to learn from people that know more than me. Take their knowledge and feed my own. So if someone understands an investment product, has been trained or has relevant information not on the brochure, it’s more likely to benefit an investor to take in this information so that an informed decision can be made rather than emotional one.

5 Taking responsibility
It’s your investment choice so be responsible. It’s your own capital so before you invest it, make sure you understand what is being presented to you. If you don’t understand then ask the question. Maybe you want to meet up with company. Is a telephone call enough for you? Everyone is different but taking responsibility could eradicate some of the common mistakes in investing. Investors who recognise and eradicate these common mistakes give themselves a greater chance of meeting their investment goals and being profitable and successful. Isn’t that the reason you invest?

Luxury London Barrington Howe

Central London property prices set to rise 18% in next five years

Central London property prices set to rise 18% in next five years and rents by 19.5% as market moves forward after the UK’s general election, it is claimed.

The latest analysis says that unprecedented uncertainty surrounding last month’s election saw a stifling of house price growth across London, with the rate of house price growth at less than 4%, compared to the 9.6% increase seen in 2014.

The majority win by the conservatives has eased the fear of mansion taxes and potential capped rents. London is not to bear the brunt of these negative tax changes. However both issues have now subsided, following the surprise majority win by the Conservatives, according to international real estate consultants Cluttons.

Pre election worries saw domestic and international buyers’ confidence reflected in a sharp tailing off in demand during the first quarter of 2015. Behavioral trends saw vendors withdrawing properties and buyers adopting a wait and see approach. However, this is not the case with the exit strategy of our London Property Bond which has sold 3 off plan luxury penthouse apartments in fashionable St Johns Wood. As such it provides an excellent example of a strong niche market breaking the barriers in central London property.

‘There is no doubt that the results of the general election have helped to re-inject confidence into the market that had receded early on this year,’ said Cluttons’ international research and business development manager, Faisal Durrani.

‘The outlook for the London housing market has stabilised, while buyers and vendors have returned to the market following a conspicuous absence of activity. Our outlook for the rest of the year is for increased stability in the market and a return to a more normal state of activity,’ he added.

The report also says that despite the Mortgage Market Review (MMR) contributing to a 16% year on year dip in home purchase loans in greater London to March 2015, affordability appears to be improving slightly, with the average loan size dipping to 3.86 times annual income in the first quarter of 2015.

Cluttons forecasts modest central London house price growth in 2015 of between 2% and 3%, before accelerating to nearly 5% in 2016 and stabilising at around 4% per annum between 2017 and 2019. Cluttons expect this level of growth to deliver cumulative capital value appreciation of almost 18% over the next five years.

The prospects for the prime central London rental market are stable, with average growth of 4% per annum forecast for the next five years. ‘The key driver of course for this behaviour is the desire to purchase.

For investors seeking a strong market to invest into, our London Property Bond represents a sensible option with strong forecasts for the years ahead. A 5 year bond with a fixed return of 8% per annum paid every 6 months.

 

Property Hotspot

Want to know the best Property Hotspots?

As investors we are always on the look out for the next property hotspot. But would you have guessed on Bristol being the number one UK property hotspot? In fact, the number of homes sold in the Bristol postcode surrounding Avonmouth nearly doubled in 2014 from the previous year. Are Britain’s latest property hotspots developing into regional house-price bubbles? Well it is looking that way. Avonmouth, next to the Royal Edward Docks (a vibrant area that has benefited from extensive regeneration) was the district with the biggest increase in transactions last year, as sales jumped 94.5pc in 2014, according to new analysis from property agents Hamptons International.

The number of sales rocketed 128 to 249 over the year and house prices grew 21.1pc, double the rate of the national average. In the Hamptons 2014 index of British postcodes by transaction volumes, neighbouring Redcliffe in Bristol city centre came second with sales up 93.2pc last year. It’s all about Bristol!

There has been a huge growing demand to live in and around Bristol. So what are the reasons for this desire to live in Bristol? Maybe because it’s one of the UK’s leading tech scenes. Possibly the relatively large number of new-build developments and high use of the Government’s Help to Buy scheme. For investors, Bristol could be the place for capital growth.

Other UK property hotspots measured by the rise in the number of property sales, included Langdon Hills in Basildon, Essex, which came third in the ranking. Parts of Leicestershire, Cambridgeshire and North Dorset also recorded huge increases in transaction levels. Cardiff also featured in the top ten UK property hotspots, which only studied postcode districts in which there were more than 100 sales in 2013.

Focusing on areas in and around London, Greenwich, Croydon and Dartford all reported an increase in sales too, landing in the top 20 areas by increase in home sales in 2014.

With the extortionate high prices of central London property, these boroughs on the outskirts of London have benefited from those moving out from the centre. High prices for zones one to three for London transport could also be a major factor for first-time buyers buying in Croydon rather than Clapham.

Buy To Let Property By Barrington Howe

Buy to let property on the increase

Buy to let property Investors on the increase! After the last property market crash it seems that the property investor is on the rise again. The number of buy to let property investors in the UK has reached 1.6 million in 2014 according to Her Majesty’s Revenue and Customs (HMRC). This represents an increase of 120,000 from the previous year.

After looking into various sectors of property investment, research found that student property was considered the best and most popular investment opportunity. Approximately 1 in 8 claimed that should they choose to invest, their preference of choice would be in student accommodation. 10 per cent would choose to invest in retirement property, whilst 9 per cent preferred holiday homes. However, this research did not take into account alternative investment or fixed rate investments where the investor did not own the asset. Having raised millions in fixed rate property investments over the years, we can see that there is an increase in property investments as a whole not just in the buy to let sector. Confidence is increasing over time.

However, despite the growing numbers reported by HMRC, certain concerns have been identified, with 36 per cent of UK adults stating that it is too risky to be a buy to let property landlord. Confidence in property investment was also shown to vary across the UK. The highest percentage of investors believing the market will boom was from London at 39 per cent. The next highest was West Midlands with 38 per cent. However, optimism was much lower from those surveyed from the North East and the East Midlands. They showed only 21 and 26 per cent respectively believing that the market will continue to grow. The proportion of optimism seemed to be lowering the further you travel up the country.