Yes, really. You don’t need large sums to start investing in UK property. You really can start with a deposit of only 5%.
Buying an investment property in the UK, a low-risk and steady market is much more affordable than you might think.
It is estimated that in the UK alone more than £8 billion is languishing in under-performing investment funds. Add all the money in offshore funds and other jurisdictions and the number is worryingly large.
These poorly performing funds, known as dogs, can be found in all sectors but action can be taken. If your money is stuck in the dog house you can do something about it.
In an uncertain world, it is understandable that we have seen an increase in property as an investment class. People have always liked investments that they fully understand, or can see and touch. Property markets are not equal and the legalities and potential for growth and/or income vary hugely but Europe still presents many opportunities for long-term investment and yield.
Recent surveys have shown that many expats are keen to invest in property in their home country either as they consider it a more secure place than where they are currently living or as a potential base should they need to move back.
The recent upheavals in work, schooling, lifestyle and more has made many reflect on the lives that they want to lead, and to consider future plans. Initially, I saw an uplift in enquiries for wills and life cover, and while these are still popular, I am now being contacted by people about property investment in the UK and Germany. Fortunately, I can assist with both and you can invest without leaving home.
This article has been updated so please see link for the latest version:
Are your investment funds in the dog house? | Financial Planning in the UAE (financialuae.me)
If you would like a chat about your investments and are interested in active future management, or have queries about any aspects of personal financial planning email me at keren@holbornassets.com
With so much in the press about investing, as well as lots of conflicting opinions and information, it’s hard to separate fact from fiction, or even wishful thinking. I have therefore put together a simple guide of seven practical tips that are both logical and easy to follow.
Risk is a term much bandied about by those in the world of finance, but it means different things to different people.
There are numerous investment options and you can ensure that you choose the right ones for you by having an understanding of the concept of risk as applied to investments, so you can make informed decisions.
What is investment risk?
Risk is essentially uncertainty and unpredictability. Share prices fluctuate, interest rates rise and fall and whilst we can make educated guesses, there are no guarantees how markets may move in the future. Inflation is another unknown quantity, but one that you need to take into consideration when calculating the real return on investment or savings
The guidelines to remember
Different types of risk
Attitude to risk
Only you can decide how much risk you are prepared to take. Some people are willing to aim for high growth and accept capital risk, whereas others are uncomfortable with losing any money, even in the short-term. Once you understand what the risks are, you can invest appropriately as the biggest risk comes from not knowing what you are doing.
How to manage your risk
You won’t be surprised if I say that you need to deal with an experienced independent adviser who understands investment risk and how to manage plans and portfolios over the long term. Most people have neither the time nor inclination to do this for themselves, but it will make a big difference to your investments.
It is my view that investors should be comfortable with the level of risk taken with their investments and to this end I will spend a significant amount of time discussing what is right for each person. After all, it is your money and you want to be able to sleep at night. I use a questionnaire to establish your view on certain issues and although there are no right and wrong answers, this can tease out how risk averse a person may be. To that we chat about what risk means, areas of investment and if any areas are of interest to you. A portfolio is then constructed that is appropriate for the individual.
Sadly, I have come across too many people who have been put into investment funds that have a far higher risk profile that they actually want and who did not realise the risk to their capital. Also of great importance is to annually review and rebalance a portfolio to ensure that you are invested appropriately as what was right two years ago, may not be right for you now.
Is the risk profile of your investments right for you? Have your investments been reviewed in the past year or so? If in doubt and you want to get some unbiased advice, please do not hesitate to get in touch.
I am sure you are aware that stock markets globally fell considerably towards the end of last week. This is as much by a consensus of fear rather than due to any rational thought. The Euro crisis brought about by opinion that Italy, Spain and others may default has swiftly followed on the heels of the political incompetence in the US as leaders dithered over their own domestic problems.
I do not believe that is another 2008 market crash (which rebounded within a year) as this time the major world banks have largely sorted out their debt, strengthened their balance sheets and have already taken into account the risks of the current markets. The toxic debt issues of 2008 are different to the sovereign debt issues we are facing today. In 2008 no one knew the level of debt, now we do. On top of this some of the major companies like BP and Rio Tinto who have seen spectacular falls are also announcing resounding profits. Most of the Fortune 100 companies have strong balance sheets.
My view remains the same that we are seeing a blip in the market that was not wholly unexpected, and there will continue to be high levels of fluctuation, but with banks offering zero to very low interest and Gilts at almost their highest levels ever, equities remain a good investment opportunity in the medium to long term. We will certainly see volatility for some time yet, but there is no need to panic.
As ever, herd mentality can take over and many people have rushed to sell, mostly unnecessarily, pushing prices down further. Better to be smart, look at the fundamentals and only then take action if required.
As ever, the best option is a diversified portfolio. Your investments funds should be selected based on a number of issues: your personal views on risk, market sentiments, time frames and accessibility. Portfolios should be reviewed on a regular basis to ensure that you are investment in the best performing fund in a sector.
Negative sentiment
Positive sentiment
If you have specific concerns regarding your investments, or wish to discuss taking advantage of the current market falls, please do not hesitate to contact me.
We all know that bank accounts are currently offering very low rates of interest, but also that investing in equity markets means taking a risk with capital, especially in these troubled times. For those who want to avoid risk, options have always been limited, but there is now an alternative.
A UK authorised investment company has a limited offer single premium plan that offers a capital guarantee together with growth in the FTSE 100 Index over either a three or five year period. It provides a way of protecting your money, with an excellent opportunity for growth. This offer is only available in Sterling and the investment is held in the Channel Islands, a secure UK offshore financial haven. The minimum investment is just £5,000.
The plans have set terms so you invest a lump sum with the intention to leave it untouched for a three or five year period. It is possible to encash sooner if you really need to, although penalties would apply, so it is not recommended for shorter periods.
At the fixed maturity date, you receive your capital (subject to chosen guarantee level) plus a percentage increase in the FTSE 100 Index. You choose the level of capital guarantee that suits you, from 85% to 100% and the amount of risk you take determines the level of the increase in the Index. Even in the worst case scenario, if the Index fell or failed to increase, you will get back your capital subject to your chosen guarantee level.
As an example, over a five year period, you could choose to protect 100% of the amount invested, you would benefit from 75% of the growth of the FTSE 100 Index, plus the return of your original investment. A guarantee of 95% would return 105% of the Index growth and a lower protection threshold of 85% would provide growth of 165% of the increase in the FTSE 100 Index. The higher the increase in the Index, the bigger the growth on your investment. You simply pick the level of protection that you require.
Your investment is not subject to additional charges and interest of 2% pa is paid from the date of subscription until the plan goes live. The counterparty guarantee is provided by Barclays Bank.
This is a limited offer, only available for application to the end of August, so please contact me by return if you are interested in this low risk investment opportunity and would like further information.