House prices 2014

The housing market began 2013 treading water, with average prices up by 0.2% in the first quarter, having fallen by 1.1% in Q4 2012. With the Help to Buy scheme for purchases below £600,000, house price growth has picked up to the extent of concerns being raised about another bubble.

For Q2 2013, year on year growth was 1.4%, with prices up by 5.2% in London. The fact that sales were up against Q2 2012 is not surprising as this was the period when stamp duty exemption for first time buyers ended which had encouraged new entrants into the market. Other schemes, such as Home Buy, Right to Buy, and Funding for Lending started to have impact

While interest rates remain at historically low levels, affordability should remain good for existing mortgage-holders and those first-time buyers who can get mortgage finance by having enough capital for a deposit. On the supply side, house-building has also started to recover after the rapid fall in the level of development in 2007. Although there are positive signs of growth, the on-going lack of traditional finance for large-scale development and inertia caused by planning reforms continue to act as a drag on the building of new homes. While the level of starts has begun to marginally rise again, it will take some time for output to increase significantly and is anticipated the level of development completions will remain suppressed over the next two years.


News today predicted that growth in East Anglia could be as much as 10% over 2014, as more and more people are pushed out of London due to house price increases.

Unfortunately with rising demand and the on-going shortage of housing, we could see rising prices over the short and medium term, leading to continued affordability problems.  If you want to talk through your options for owning your own home in 2014 Enables IFA’s are happy to talk you through your options.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Thinking of retiring early?

When it comes to thinking about actually retiring early Enables IFA’s know that both the big picture and the fine details of your financial position as well as your  emotional state need to be taken into consideration when working with you to assess your readiness for early retirement.

If you're not emotionally ready to stop working and give up all the positive aspects of work like being stimulated, working in a team , meeting new people and going to new places you really may not be ready to retire early or late. "What are you planning on doing that will continue to allow you to enjoy your life, allow you to stay active mentally, emotionally and spiritually?" asks Richard Reyes, who is a professional and a coach with The Financial Quarterback in Maitland. "In retirement, every day is Saturday." he points out.

Being financially ready is much easier to assess if you have no debt, a good pension that more and more, even in the UK should maybe include some health insurance, some good savings and low expenses you probably have enough in place to lead to retiring early. In most cases, the early 50s is about the most realistic time for early retirement and to be financial successful it often involves an inheritance to boost assets.

While some tend to associate retirement with a specific age, "It's really about getting your budget and liabilities under control, then having a clear understanding of the resources available to create the desired and consistent retirement income you need," says Sean Lee.  Enable’s IFA’s are here in Bishops Stortford to help you with the big picture and the fine detail.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

What will happen to your investments in 2014?

It is that time of year again when investment experts unlike our IFA’s at Enable of Bishop's Stortford try to do the impossible – foretell the future. Predicting the moves in shares in global stock markets in 2014 is as we know guesswork. But by asking a handful of respected experts, who have made good calls over the years, some think they know what to do.

Since the financial crisis British shares have delivered great returns says a recent report in the Telegraph. “ If you were brave enough to put your savings into a FTSE 100 "tracker" fund, which aims simply to replicate the performance of the London stock market as opposed to beating it, you would have netted a 50pc return on your investment. During 2013 UK shares on the surface had a good year, with the FTSE 100 index returning 9pc to trade at about 6500 this week. Since the Victorian era shares have on average delivered 6pc to 7pc a year, so an inflation-beating 10pc return on your money in 2013 looks quite good.

UK funds managed by City stock pickers, who attempt to beat the performance of the index, have also had a good year. The average fund has returned 23pc, beating the FTSE All Share return of 17pc.


This index includes the smaller and faster growing UK companies along with the big stocks found in the FTSE 100, so is seen by many as a better reflection of UK market’s performance.
Given such solid performance it is right to ask whether there is still potential to make more money from UK shares. Investors buying into the market today may be concerned that they have missed out

A – Investment Management Association's "All Companies" fund sector (23.3pc rise)
B – FTSE All Share, including income and capital growth (16.7pc rise)
C – FTSE All Share tracker funds, including income and capital growth (15.8pc rise)
Source: FE Trustnet

But the vast majority of experts remain positive and argue that there is plenty of money still to be made. They argue that although UK shares have performed well in 2013, they have been held back by the strong performance of the pound, which since July has strengthened by 10pc against the dollar. This has stunted export growth for British businesses and in turn dented their performance on the stock market, with the FTSE 100 posting a loss of 4pc since the summer.

Some experts are even predicting that the FTSE 100 will hit a new all-time high in 2014, surpassing the 6930 it achieved during the tech boom in December 1999. One investor in this camp is Guy Foster, who buys shares for wealth manager Brewin Dolphin. Mr Foster is backing the FTSE 100 to break through 7400 by the end of 2014, which would represent a 15pc return on an investment in a tracker fund made today.

Other firms that are bullish include economic forecasters Capital Economics, which predicted that the FTSE 100 would hit 7500 next year An even bolder call has been made by analysts at Citigroup, who have said they expect the index to reach 8000.”  Whether you have a crystal ball or not our independent financial advisors at Enable in Bishop's Stortford can help you assess your position.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

Giving to the Grandchildren?

Making sure the right trust structure is in place to pass assets down the generations is one of the tasks Enable of Bishop’s Stortfords IFAs can help you with , it can mean significant tax savings and mean that you are using your assets effectively.





For many grandparents, supporting their grandchildren financially not only provides great peace of mind but also provides excellent tax planning opportunities. However, they may very wisely be concerned about gifting funds absolutely as the recipients might waste the money before they realise what an asset they have.

A discretionary trust could be considered this will not only enable the trustees to issue ad hoc payments to beneficiaries but also allows them to make absolute appointments to a bare trust for beneficiaries who are under 18. This means that any taxable gain will be assessed against the minor beneficiary, using either their income tax personal allowance or capital gains tax exemption. This ensures the tax liability does not fall on the trustees. As minors are less likely to have exceeded their tax limits this could result in significant savings for the trustees.

When it comes to passing on money in order to cover a specific debt, there are two common financial challenges for the under 30’s. The first of these is the burden of student debt; the second is the requirement for a sizable deposit to enable independent living.  Given the low impact student loan liabilities have on mortgage lending, having available funds to be used as a deposit for a first home may in many cases be a more worthwhile option for grandparents wishing to support their beneficiaries. Additionally this will ensure the asset remains within the family, rather than repaying a debt which has no chance of growth.

Issued by: Enable Independent Financial Life Planners
25c North Street, Bishops Stortford, Herts CM23 2LD
Telephone: 01279 755950 - Fax: 01279 657339
Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority.
It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE