Property is often part of any sensible financial planning. Despite the recession, the price of the average house in the UK increased to £164,729 in August, just 0.7 per cent lower than a year ago, their biggest jump since January 2010, says the Nationwide Building Society. Robert Gardner, Nationwide’s chief economist, said: “the fact that the annual pace of house price decline moderated to minus 0.7 per cent in August from minus 2.6 per cent the previous month provides evidence that conditions remain fairly stable. “This may be explained by the surprising resilience evident in the UK labour market, with further increases in employment in recent months, even though the UK economy has remained in recession.” The August price increase follows a 0.8 per cent fall in July.
Depending on your circumstances Enable’s IFA’s know that property investment can work. Earlier in the week Land Registry figures revealed an increase in London house prices to an all-time high in July. The average price of a house in London in July was £367,785, compared with £162,900 nationally. Demand remains strong for so-called trophy homes in exclusive areas of London, despite an increase in stamp duty to 7 per cent on properties worth £2 million or more. Prices soared by more than 16 per cent in Kensington & Chelsea over the year, while Westminster saw an increase of 14.4 per cent. The weakness of the pound and the country’s relative political and financial stability has made London properties attractive to overseas buyers.
Showing posts with label investing in commercial property. Show all posts
Showing posts with label investing in commercial property. Show all posts
Wednesday, 5 September 2012
Tuesday, 12 June 2012
How to build your pension pot....
Less than half of us in the UK are saving enough to meet expectations for income later in life, according to data produced by Scottish Widows. Independent Financial Advisors like those at Enable can help you look at your overall financial situation and decide what you can do to prepare for a good retirement.
UK pension savers are putting less into their pension than ever before, with fewer than half saving enough to meet their income expectations. According to the Scottish Widows report, only 46 per cent of savers are putting enough away for when they retire.
The drop in savings spans all age groups. Out of 5,200 UK adults, 22 per cent have put nothing aside for later life. In contrast, people’s expectations for earnings in retirement have increased from wanting an average of £24,300 in 2011 to £24,500 this year. Such low savings figures suggest the average saver retiring at 65 would receive just over half the amount they feel they need.
The total pot for an average saver is around £150,000 in today’s terms, which would only provide an annual pension of £5,700. With the addition of the state pension this would generate a yearly income of approximately £13,000. which falls drastically short of the £24,500 annual income people are looking for To match expectations, the report suggests an average saver needs to save an additional £4,500 a year or £375 per month to plug fill the gap. At Enable our IFA’s can help you look at your pension provision.
UK pension savers are putting less into their pension than ever before, with fewer than half saving enough to meet their income expectations. According to the Scottish Widows report, only 46 per cent of savers are putting enough away for when they retire.
The drop in savings spans all age groups. Out of 5,200 UK adults, 22 per cent have put nothing aside for later life. In contrast, people’s expectations for earnings in retirement have increased from wanting an average of £24,300 in 2011 to £24,500 this year. Such low savings figures suggest the average saver retiring at 65 would receive just over half the amount they feel they need.
The total pot for an average saver is around £150,000 in today’s terms, which would only provide an annual pension of £5,700. With the addition of the state pension this would generate a yearly income of approximately £13,000. which falls drastically short of the £24,500 annual income people are looking for To match expectations, the report suggests an average saver needs to save an additional £4,500 a year or £375 per month to plug fill the gap. At Enable our IFA’s can help you look at your pension provision.
Thursday, 29 March 2012
Commercial Property Investments
Commercial property is traditionally core to many individual financial portfolios. So it could be good news that the lack of grade A space in the industrial and distribution market has become so acute across the UK that rents for prime space have risen for the first time in three years according to the latest research by Lambert Smith Hampton.
National Industrial and Distribution Market 2012 analysed activity across 59 locations in 11 regional UK centres during 2011. Across the locations recorded in LSH’s research, prime rents increased in 27 per cent of locations, with a further 39 per cent of the locations seeing prime rents stabilise.
In the East of England, availability was recorded as the lowest across the UK. In Essex, where Chelmsford, Basildon and Thurrock represent the county’s most dominant industrial markets, the supply of space is no less of a challenge with 5.7 per cent of total stock currently on the market.
Demand in Cambridge and the surrounding area has remained stable throughout the year resulting in a total take-up of 529,921 sq ft in 2011.The majority of demand has been focused on units less than 5,000 sq ft which accounted for 68 per cent of overall activity.
The largest transaction in 2011 was the letting of Titan, Space Ten, Papworth, which saw Ultra Electronics take the 37,533 sq ft unit. The number of requirements for larger good quality space has remained stable, but due to the lack of new development, demand outstrips supply. Enable’s IFA’s can talk you through your commercial property investment options.
National Industrial and Distribution Market 2012 analysed activity across 59 locations in 11 regional UK centres during 2011. Across the locations recorded in LSH’s research, prime rents increased in 27 per cent of locations, with a further 39 per cent of the locations seeing prime rents stabilise.
In the East of England, availability was recorded as the lowest across the UK. In Essex, where Chelmsford, Basildon and Thurrock represent the county’s most dominant industrial markets, the supply of space is no less of a challenge with 5.7 per cent of total stock currently on the market.
Demand in Cambridge and the surrounding area has remained stable throughout the year resulting in a total take-up of 529,921 sq ft in 2011.The majority of demand has been focused on units less than 5,000 sq ft which accounted for 68 per cent of overall activity.
The largest transaction in 2011 was the letting of Titan, Space Ten, Papworth, which saw Ultra Electronics take the 37,533 sq ft unit. The number of requirements for larger good quality space has remained stable, but due to the lack of new development, demand outstrips supply. Enable’s IFA’s can talk you through your commercial property investment options.
Tuesday, 17 January 2012
Taxing the rich - do you declare earnings from overseas property?
Whether the rich should pay more tax is a debatable political issue but Enable, Independent Financial Advisors of many years experience note that The Revenue are targeting the wealthy and have started with Owners of overseas property first. A 200-strong team of investigators has been set up to identify wealthy tax evaders, Revenue & Customs declared this at the end of last year when it unveiled a new “affluent” unit, which will focus on the tax affairs of those earning more than £150,000.
Commodity traders are said to be the Revenue’s next target, and holders of offshore accounts will come under scrutiny later next year. The tax affairs of the very wealthiest 5,000 individuals, with at least £20m in assets, are handled by a specialist group that generated an extra £86m of revenues in 2009-10 and £162m in 2010-11.
Danny Alexander announced the launch of the unit which will deal with the 350,000 richest people, at the Liberal Democrat conference in September when he said “the small minority who don’t pay what they owe” would be found and made to pay their fair share. David Gauke, financial secretary to the Treasury, said the new unit was expected to raise £560m in the next few years, adding: “The government is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years in the last spending review. This new team is part of that investment.”
Making sure you are tax efficient is part of good financial management expert advice from experience IFA like Enable of Bishop’s Stortford is always best.
Commodity traders are said to be the Revenue’s next target, and holders of offshore accounts will come under scrutiny later next year. The tax affairs of the very wealthiest 5,000 individuals, with at least £20m in assets, are handled by a specialist group that generated an extra £86m of revenues in 2009-10 and £162m in 2010-11.
Danny Alexander announced the launch of the unit which will deal with the 350,000 richest people, at the Liberal Democrat conference in September when he said “the small minority who don’t pay what they owe” would be found and made to pay their fair share. David Gauke, financial secretary to the Treasury, said the new unit was expected to raise £560m in the next few years, adding: “The government is committed to tackling tax evasion and avoidance across all areas of the economy. That is why we allocated HMRC £917m to reduce the tax gap over the next four years in the last spending review. This new team is part of that investment.”
Making sure you are tax efficient is part of good financial management expert advice from experience IFA like Enable of Bishop’s Stortford is always best.
Thursday, 5 January 2012
Thinking of investing in 2012?
Enable IFA’s of Bishop’s Stortford can help you find the right place to look for your silver lining. It would seem that UK gilt funds dominated the top performance charts in 2011, according to figures from Morningstar at the end of December. Eight of the top 10 performers sat in the Investment Management Association UK gilts and UK index linked gilts sectors, with the Henderson long-dated gilt, managed by Phillip Apel and Mitul Patel the top performer, having risen by 24 per cent between January 1, 2011 and December 20, 2011. That fund was closely followed by Henderson index linked bond and the BAM UK long dated gilt, which have risen 23.59 and 23.58 per cent respectively.
The figures did also reveal that less than one in six funds managed to produce a positive return in 2011, compared to 97 per cent of funds producing a positive return in 2010 but as expected, the IMA UK index linked gilts sector was the best performer, with the 13 funds in the sector up by an average of 21 per cent in 2011. The IMA UK gilts sector rose 15 per cent with the UK corporate bond sector up 4 per cent. The IMA China and greater China sector was the worst performing sector having fallen 24.2 per cent. If you need help looking for the right place to think about investing for the New Year Enable of Bishop’s Stortford are happy to talk it through.
The figures did also reveal that less than one in six funds managed to produce a positive return in 2011, compared to 97 per cent of funds producing a positive return in 2010 but as expected, the IMA UK index linked gilts sector was the best performer, with the 13 funds in the sector up by an average of 21 per cent in 2011. The IMA UK gilts sector rose 15 per cent with the UK corporate bond sector up 4 per cent. The IMA China and greater China sector was the worst performing sector having fallen 24.2 per cent. If you need help looking for the right place to think about investing for the New Year Enable of Bishop’s Stortford are happy to talk it through.
Wednesday, 7 December 2011
Home Properties - Property is a vital cog in recovery
According to the latest RICS UK Commercial Market Survey, improvements in the commercial property market in the first half of the year faltered during Q3 2011 as occupier demand fell back for the first time in 12 months.
In would seem falling demand and rising availability has impacted on rental expectations, which weakened over the quarter, moving deeper into negative territory. The one area which continues to show a positive trend for future rents, albeit a flatter one than earlier in the year, is the central London office market. Simon Rubinsohn, RICS’ chief economist says: “While the London commercial market is still holding up relatively well, some of the positive momentum appears to have faded in the capital over the last few months - reflecting the wave of negative news flow surrounding both the prospects for the UK economy and the sovereign debt crisis in Europe.”
But property is still a vital cog in the whole of the economy. A new study from the Property Industry Alliance, the Property Data report, has found that the property industry contributes £46bn per year to the UK’s GDP. Robert Finch, chairman of the Property Industry Alliance, says: “The report shows the importance of the commercial property industry to the overall UK economy should not be underestimated and the crucial role it will play in our economic recovery. From providing places for people to work, shop and play through to playing a major role in funding retirement, the sector is a crucial cog in the UK economy. In legislating, the Government must be mindful of this.”
Enable of Bishop’s Stortford can offer independent financial advice on your property investments.
In would seem falling demand and rising availability has impacted on rental expectations, which weakened over the quarter, moving deeper into negative territory. The one area which continues to show a positive trend for future rents, albeit a flatter one than earlier in the year, is the central London office market. Simon Rubinsohn, RICS’ chief economist says: “While the London commercial market is still holding up relatively well, some of the positive momentum appears to have faded in the capital over the last few months - reflecting the wave of negative news flow surrounding both the prospects for the UK economy and the sovereign debt crisis in Europe.”
But property is still a vital cog in the whole of the economy. A new study from the Property Industry Alliance, the Property Data report, has found that the property industry contributes £46bn per year to the UK’s GDP. Robert Finch, chairman of the Property Industry Alliance, says: “The report shows the importance of the commercial property industry to the overall UK economy should not be underestimated and the crucial role it will play in our economic recovery. From providing places for people to work, shop and play through to playing a major role in funding retirement, the sector is a crucial cog in the UK economy. In legislating, the Government must be mindful of this.”
Enable of Bishop’s Stortford can offer independent financial advice on your property investments.
Prices of property - Commercial Property clearly linked to growth
Clearly commercial property does not operate in a vacuum. The fundamental factors in occupier demand for commercial property are tied directly to employment growth (or decline) and the level of consumer spending. Over the years experienced IFA’s like Enable of Bishop’s Stortford have also seen that there is a strong historic relationship between rental income growth and GDP growth.
In addition, commercial property tends to reflect local market conditions including available supply and the characteristics of individual buildings themselves, as demonstrated by the outperformance in 2011 by central London markets, both office and retail, in comparison to the wider UK. Investors need to be aware of these fundamentals and some say investors “cannot rely on a yield arbitrage play against emergency gilt yields as a means of achieving sustainable investment performance. The margin, or risk premium, at the present time should be seen as a buffer against a weak economic outlook which will be tested, severely, in the short to medium term.”
In the past experiences IFA’s like Enable have seen returns forinvestors in Commercial properties because rental income payments from tenants have, historically, been protected by long lease terms, upward review clauses and over-renting, where the contracted rents tenants are obliged to pay exceed the open market rental value at the time. During periods of economic weakness however, the market, logically, re-prices tenant default risk and growth prospects. This feeds into more volatile market rental values and capital values. Enable Independent Financial Advisors can help you review your portfolio.
Managing your money is a vital skill...
At all times spreading your assets and diversifying is good financial advice. Experienced IFA’s like Enable have seen the benefits of diversification over the years. Property has always been part of that diversification. Most portfolios contain property in some form even if it is just the house you live in but many also have money in Commercial Property.
But it is useful to note that the investment performance of UK commercial property over the longer term has been driven to a great extent by income return, reflecting rental payments received from tenants rather than capital appreciation. Over the 20 years to December 2010, commercial property delivered annualised total returns of 8 per cent per year, with the income return contributing 6.9 per cent per year.
In the nine months up to the end of September 2011, UK commercial property reported a total return of 6.4 per cent, comprising income return of 5.1 per cent and capital growth of 1.2 per cent suggesting, perhaps, that property had been delivering its ‘natural’ level of performance at the present time.
Property yields retain a considerable margin over dividend yields and an even more pronounced premium over 10 year gilt yields which have fallen as low as 2.5 per cent in recent weeks as concerns over the Eurozone sovereign debt crisis and whether the UK was heading towards a ‘double dip’ recession pushed investors towards extreme risk aversion.
The net income return delivered by property is however still proving attractive to investors for both investment performance and diversification benefits. Enable IFA’s of Bishops Stortford are happy to help you evaluate your diversification in these volatile times.
But it is useful to note that the investment performance of UK commercial property over the longer term has been driven to a great extent by income return, reflecting rental payments received from tenants rather than capital appreciation. Over the 20 years to December 2010, commercial property delivered annualised total returns of 8 per cent per year, with the income return contributing 6.9 per cent per year.
In the nine months up to the end of September 2011, UK commercial property reported a total return of 6.4 per cent, comprising income return of 5.1 per cent and capital growth of 1.2 per cent suggesting, perhaps, that property had been delivering its ‘natural’ level of performance at the present time.
Property yields retain a considerable margin over dividend yields and an even more pronounced premium over 10 year gilt yields which have fallen as low as 2.5 per cent in recent weeks as concerns over the Eurozone sovereign debt crisis and whether the UK was heading towards a ‘double dip’ recession pushed investors towards extreme risk aversion.
The net income return delivered by property is however still proving attractive to investors for both investment performance and diversification benefits. Enable IFA’s of Bishops Stortford are happy to help you evaluate your diversification in these volatile times.
Subscribe to:
Posts (Atom)