Barrington Howe brings you that latest Investment News and Updates
“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”
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.