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Investment news germany

Investment News Germany September 2016

Investment News Germany September 2016

One huge German market is about to be hit by a perfect storm of zero-interest rates and low inflation

While low inflation can pose a problem for many sectors, it is helping to reinvigorate Germany’s housing market, Sean Darby and his team at Jefferies said in a note to clients on Wednesday (emphasis added):

A combination of firm wage growth, negative bund yields, dormant inflation and a booming current account surplus is allowing the German real estate market to reflate. In comparison to Western markets, the German property market starts from a much lower base and also relatively favourable price comparison. We are bullish on the real estate sector as well as the DAX.”  To read more click HERE

GERMANY REMAINS THE DRIVER OF EUROZONE GROWTH

Germany, the Eurozone’s largest economy, grew 0.4 per cent, compared with an impressive 0.7 per cent growth rate during the first three months of the year, albeit that was a better result than expected. Growth was supported by net trade as well as private and government consumption, according to Destatis, the German statistics office. The second-quarter expansion took year-on-year growth to 1.8 per cent on a seasonally adjusted basis. The unemployment rate stands at 4.2 per cent, the lowest level since reunification in 1990 and one of the lowest rates in the European Union. The labour market has now little slack and is set to tighten even further as the baby-boom generation retires.

Strong Domestic Growth Keeps Germany’s Economic Outlook Upbeat

There have been some notable external risks mentioned in the economy because the British vote to leave the EU may still have some ripple effects. Some uncertainties exist because there may be some downsides that may not be experienced immediately but will only be realized when it is too late. The German finance ministry mentioned that there have has been slower economic growth than had been expected in the three months ended in June. To read more click HERE

Further Investment News Germany. Dolphin Trust Project Update: Windorferstraße, Leipzig
As Dolphin Trust goes from strength to strength as an investment, we can provide details on one of the projects our clients have invested in. The city of Leipzig is also known by the Leipziger Messe, which is one of the oldest trade fair venues in the world and its tradition dates back to the year 1165. The most famous one is the annual “Leipzig Book Fair”. With a settlement of international renowned companies such as Porsche AG and the BMW Group, Leipzig is an attractive business location as well. The existing infrastructure with efficient transport routes such as the airport in Leipzig / Halle, modern offices, commercial and residential buildings suggests that Leipzig as a great city for economic growth.

The building is located in Kleinzschocher area and was built in the second half of the 19th century. It was the residential and commercial building of cigar manufacturer Gustav Boehme and was one of the first new buildings in the street. Dolphin Capital redeveloped the listed building from 2015-2016. Extensive work at the façade as well as at the historical stairwell were made to complement the modern furnishings of the refurbished apartments.  See this project in more detail HERE

The Dolphin Trust investment opportunity can be found here http://www.barringtonhowe.com/product/dolphin-trust-gmbh/

 

 

uk property market

UK Property Market: How is it doing now?

There’s been lots of uncertainty and apprehension for the UK and specifically the UK property market since Brexit. But some interesting data has been found. THE average UK house price has climbed by £17,000 in a year, continuing a “strong” run of growth, according to an official report. The typical property value was around £217,000 in July, marking an 8.3% year-on-year increase, according to the Office for National Statistics (ONS).

Notably property values have also increased by £1,000 compared with the previous month. While the 8.3% rate of annual growth is a slowdown compared to a rate of 9.7% recorded in June, it continues “the strong growth seen since the end of 2013”, the report said. Property prices are regional. The average house price in England now stands at £233,000, while in Wales it is £145,000, Scotland £144,000 and in Northern Ireland it’s £123,000.

Across the regions of England, London understandably continues to have the highest average house price at £485,000, followed by the South East and the East of England, where house prices stand at £313,000 and £274,000 respectively. The lowest average price continues to be in the North East at £130,000.

Post Brexit the UK Property Market seems to be doing OK to say the least. In fact it’s very encouraging news. This is a great boost for our London Property Bond which continues to be a success. maintaining a strong level of equity and security for investors. Although the pound has weakened it has proved a huge motivation for overseas investment into areas such as London. The Chinese are seeing a 15% improvement on the exchange rate.

cemetery plot investment

Cemetery plots: Hottest Investment for 2016?

Most investors took a step back from investment decisions shortly after Brexit, What were the reasons? Not sure about the markets. Unclear about where to invest their money. With new taxation rules coming in April 2017, even buy to let investors are looking for an alternative investment.

Cemetery plot investment is now the hottest investment opportunity ticking all the boxes for investors. London is already struggling to house its living population. Many people are not aware but there is a major crisis facing a crisis in finding a home for its dead! London is past its peak of 8.6 million increasing the pressure on burial plots. This is compounded by the fact that two London boroughs in the form of Tower Hamlets and Hackney don’t have any land available in their borough. This in turn forces the locals to look further afield. A few miles from both of these boroughs are Rainham Cemetery in Essex where investors can buy cemetery plots as an investment.

These London cemetery plots are seen as a fantastic investment opportunity to savers who are keen to move away from buy-to-let property. The Rainham site is ideally located within the M25 and close to boroughs with either no land is available for burials. In addition this would suit and a large Muslim community living in the local area. Location Location Location. That’s what the shrewd property and land investors always tout and this is no different. “The numbers are compelling” stated Peter Evans, Managing Director of Barrington Howe. “ The average price per cemetery plot for a non-resident in Havering Council is over £5700. Our research has shown that there has been a 47.5% increase in Havering Council for burial plots since 2012. This is a highly appreciating asset, a supply shortage and a huge demand.”

“Anyone can do their homework and see it’s well documented that there’s a shortage in burial space and by 2021 all the boroughs could well be exhausted,” says Peter Evans, who’s company specialises in asset backed investment opportunities. “It’s ideal for investors looking for an alternative to buy to let. The developer is guaranteeing a 40% return in 2 years. And with capital gains tax allowances, investors can net 20% pa which is an incredible return.”

Havering council have increased the price of burial plots in their cemeteries by over 30% this year, a compelling figure for any investor. Whilst a burial plot or cemetery plot not might be to everyone’s taste, it does provide an alternative investment for those looking for ownership with a fixed exit strategy. Cemetery plot investment could be a viable alternative to the buy to let market.

Cemetery plots

brexit

Brexit. Are you a smart investor or the sit and wait type?

Brexit. Are you a smart investor or the sit and wait type?
We have known for quite some time, the decision to leave the European Union (Brexit) would have an impact on currency and stock market holdings. However, there is one financial sector which will thrive as a result, the bond market.As is always the case when there is economic uncertainty, shrewd investors seek out safe havens while markets stabilise. The current trend is to strengthen your portfolio with the security that bonds offer. This is opposed to the volatility and uncertainty of other investment classes, such as equities, commodities and Forex (FX).Smart investor will take stock of their position and put in place the best strategy to protect their portfolio. This requires investors to be proactive, rather than stand on the outside looking in. For the masses, they pause. They Standstill. Sit and wait.Take a look at a recent article from the Telegraph business section, it makes for very interesting reading  on how best to protect against Brexit. CLICK HEREBonds have always been a popular investment for British investors as they provide investors with a regular income, they are also seen as a very important addition to balance out and diversify an investment portfolio. Overseas investors will also see this as a great opportunity to take advantage of the pound. Take a look at diversifying your portfolio HERE

 

bexit

Brexit. So what’s next for the UK post EU Referendum?

Brexit. So what’s next for the UK post EU Referendum?Well there is the obvious knee jerk reaction to the voting results with markets being affected.  The Bank of England says it expects some market volatility after the Brexit vote but that the UK economy can handle it. “Inevitably, there will be a period of uncertainty and adjustment following this result.Brexit has caused in a short space of time uncertainty. People worry about what happens next and it makes people feel vulnerable. With uncertainty people generally take a breath. They pause. They put things on hold. Why; because there is a general sense of fear.  Successful investors tend to take control of the fear. Be decisive and listen to those with credibility and knowledge. Not just those who throw statements out without backing it up. We’ve heard enough of these misinformed vocal debates with the political campaigns.Warren buffet arguably the greatest investor of our generation buys or invests in times of uncertainty. If the wealthiest investor is saying this, then when is it a good time to invest? If you don’t know who Warren Buffet is take a look at this link http://bit.ly/therichestinvestorCurrency
The Pound has weakened against the dollar and the Euro. But haven’t we seen this before? What happened? It strengthened again. One industry where the UK is strong in is finance. London is one of the biggest financial centres in the world. History shows that when industries go down they eventually come back up.Property Landlords
Now that Cameron has resigned will the removal of mortgage tax relief still go ahead next year with a new conservative leader to be in place by October? Along with the 3% increase in stamp duty this has got to be the biggest blow to property investors and landlords. A different leader and different approach? If this new tax goes ahead, there will be the inevitable higher rents making it harder for first time buyers.
Interest rates
There is talk that interest rates might have to be increased due the pressure of inflation. Equally there is more speculation that interest rates might have to be lowered if there is a severe shock to the economy. Who actually knows?
House Prices
The IMF have been quoted that there could be a drop in house prices. That is possible. There could be a possible drop but always starts in London. But with the high predictions for growth in property market pre Brexit, we are talking a possible drop on where it WOULD have been in the next few years.  So still up but maybe not as much. The housing shortage is still present. The demand for houses continues to increase.
One thing which is clear that there are changes ahead but is the UK going to fall on its knees as the scaremongering has been quoted? The UK existed before the EU and it will exist post the EU.
Mark Carney the Governor of the Bank of England has stated “There will be no initial change in the way our people can travel, in the way our goods can move or the way our services can be sold. “And it will take some time for the United Kingdom to establish new relationships with Europe and the rest of the world.”
Carney added the Bank expects “some market and economic volatility” as those new relationships are struck. He added: “But we are well prepared for this.  The Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning.  The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward.”
A sensible and level headed approach is what’s needed but today is a reflection and an instant reaction to the results of the EU Referendum.  There is no crystal ball. There are no guarantees. There has never been.

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.

investment news barrington howe

Investment News Dolphin Trust

Investment News
Germany and German real estate in particular is seeing a sustained growth. Dolphin Trust, one of our investment opportunities is reaping the rewards.

German Private Sector Growth Accelerates
Further investment news shows that growth in Germany’s private sector accelerated in May to hit the highest level so far this year, a survey showed today. This suggests that Europe’s largest economy will extend its surprisingly strong start to the year into the second quarter.  Click Here to Read the full story

European Real Estate Continues to Attract Investors
Investor appetite continues to grow in most European commercial markets, with Germany leading the way for the 2nd quarter in a row.  For further details CLICK HERE

German Economy Fared Well in Q1 as Trade Surplus Grows
The trade surplus is a key gauge of an economy’s comparative strength and in recent months has highlighted the robustness of Europe’s biggest economy amid the current global economic uncertainties.  For further details CLICK HERE

Dolphin Trust updates
This is the latest update on some of the current developments benefiting our Dolphin Trust clients.

The Old Cigar Factory, Fabrikweg 12, Horb
The old Cigar Factory in Horb now has a new face! In the words of the project co-ordinator, Jochen Krause of Deutsche Planbau GmbH, thanks to the fast progress of the teams at the Dolphin Trust construction site, the Cigar Factory has now had a facelift.
During refurbishment, Dolphin Trust will create nine new apartments in the old Cigar Factory and will bring new life to the government listed building, built in 1898. Despite its historic age, modern standards of energy efficiency will be achieved and high value materials will be used for all apartments for modern living comforts.

In the last few days the loggia, which is visible from the street, has been finished. The old roof section above the stairway has also been completely renewed and the attic has new flooring.  In just a few more days the ceilings of all floors will be completed.
For full details on this investment opportunity please CLICK HERE

Why do we Invest?

Why do we invest? This question came to mind as I spoke with a friend over the weekend. Unfortunately he is currently out of work. Having worked for the same company for the last 15 years, he was suddenly made redundant. Redundancy is nothing new. I am sure many people reading this have gone through a similar fate. But as I apologised for his situation (although it was no fault of mine), it was his reply that resonated with me. “It’s OK. I’m alright for now until my funds run out”. His only source of income was his job and now that this has gone, he has no further income until he gets another job. His level of financial independence is only a matter of months.

This is just ONE of the reasons why we invest. Creating a passive income allows you to build a system for making money without working for it. If your job is your only support system, what happens when it’s unexpectedly taken from you? There’s still all your outgoings but no income. As one of the greatest investors, Warren Buffet once said, plant a seed today to reap the rewards of tomorrow. So why do we invest? To avoid that feeling of stress and pressure when your money runs out. To prevent that anxious feeling when you are fighting to find your next job. It’s a shame they don’t teach these things at school. Relying on just your job for your income……well it’s like putting all your eggs in one basket. But not the kind you usually associate with investing.

 

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?

Investment News

Investment News and Updates December 2015

Barrington Howe brings you that latest Investment News and Updates

Dolphin Trust
“Germany Second best in Europe for Residential Market “

As Dolphin Trust continues to go from strength to strength as an investment, Europe’s residential markets have become its strongest over the last decade, and the only sector to avoid negative overall performance. Germany’s total return for residential investments for 2013 stood at 8.3%, the second best in Europe, only trailing closely behind the UK. Data also shows that over the last 15 years, the German residential market has remained stable in comparison to other countries.

See the full report HERE

 

ILS Car Finance Investment
The new Buy to Let £45 billion industry

The progress of ILS Car Finance Investment progressed beyond expectations for 2015.  The number of cars under HP agreements has increased month on month as the company goes from strength to strength. The backbone to the investment is the ability to manage defaults which have risen from 2 to only 4 cars. In percentage terms that’s a mere 0.6% and all four vehicles were quickly recovered and resold giving further credence to the business model.

In order to be in a position to effectively handle the extra work from ILS planned expansion programme they have recently taken home in new, slightly larger, offices as the team expands to handle the increased business. There is also huge confidence in the continued growth of the used car market (£45.1 billion) as a whole which has been underlined further by the latest BCA report which can be found HERE
We all need cars and that’s unlikely to change for a long time.

 

UK Housing Market
New Changes and it’s affects

The Chancellor recently went on to announce the biggest boost to housebuilding since the 1970s by promising to build 400,000 new homes in England by 2020, with 200,000 of those earmarked ‘starter homes’. House builders and developers will be offered grants to facilitate this initiative and to encourage them to regenerate brownfield sites for such use.

In addition, 135,000 homes will be made available on a shared ownership basis – for those households earning less than £90,000 in London and less than £80,000 outside the capital. London residents will get their own version of Help to Buy, where for those able to submit a 5% deposit on a property, the Government will offer a loan of 40% of the value of the home, effectively giving them a 55% loan-to-value mortgage. All these initiatives will see the overall housing budget rise to more than £2bn. The big question is how will this affect the UK housing market? Builders and developers look certain to benefit from this move.

With recent changes in the stamp duty increases for a second home, there has been a bit of a panic in the buy to let market. An additional 3% increase in stamp duty for a second property. For the experienced investor, it’s merely another change in policy of which a professional investor will simply adapt to. Experience teaches you to adapt to changing conditions with alternative solutions. Overall the property market is predicted to continue to grow.

 

Manchester Property Investments: Beech Property
Increased Investment into the “Northern Powerhouse”

The first

Manchester City Centre Investment in Princess Street was completed at the start of last summer and has been tenanted for several months. After such a successful template, this is being used going forward on other city centre projects. The second development, Cross Street is due for completion early 2016. Once the building work has been completed, it will have given an iconic city centre Manchester building a much needed facelift and importantly significant longevity. At this stage, refinance will be put in place and the loan note monies passed back to the trustees enabling Beech to then use the funding for the next project.

The latest acquisition, Outram House on Great Ancoats Street, is to the north of the city centre and is in a fantastic location overlooking one of the many canals that make up Manchester’s heritage. Work on this property will commence in 2016 and we anticipate that it will be completed before the end of the year. There are several properties in city centre Manchester that have been secured for future development. On the subject of Manchester, the city’s economic future looks very healthy indeed. At the time of writing, the Bank of England has just announced their intention to keep the bank base rate at its current low until well into 2017. This spells another year of low returns for bank deposits and savings.

 

New 1 Year Secured Fixed Rate Bond
“Returns under written by the US Government”

Colonial Capital has recently announced an addition to their bond in the form of a shorter term model with a lower entry point of only £5000. This gives an opportunity to those looking for a shorter exit without having their funds tied up beyond 12 months. The same model and principle applies taking repossessed (foreclosure) properties under market value and refurbishing them to a high standard and rented to families under a US Government initiative in which they underwrite the rent. In short your returns are underwritten by the US government. The bond has gone from strength to strength and looks set to continue with a 12 month agreement. This product seems ideal for ISA investors completely outperforming them irrespective of ISAs being tax free.