Currently viewing the tag: "savings"

Pension Freedom Fuels Increase In UK Property InvestmentPension Freedom Fuels Increase
In UK Property Investment

Since UK pensioners were granted full control of their retirement savings in April 2015, an estimated 60,000 (70%) pensioners have taken advantage of their ability to take some or all of their accumulated pension in a lump sum, with many opting to put their cash into property instead as an alternative to annuities, shares and bonds.

According to the latest Global Real Estate Outlook report published by property investment company IP Global, property remains a far more predictable and stable longer term option compared to alternative investments in the stock market.

In the UK, property prices in London and Manchester are leading the way, with prices in Greater London increasing by 12% in the last year alone.

New properties in Manchester may appear to be valued at less than half the average of London properties, however, residential property prices are expected to continue rising to close this gap, with new projections putting Manchester’s property price growth at a staggering 26.4% by 2019.

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How Landlords Are Affected By 2015 Pre-Election Budget

How Landlords Are Affected By 2015 Pre-Election Budget

How Landlords Are Affected By 2015 Pre-Election Budget

During the pre-election budget last week, Chancellor of the Exchequer, George Osborne MP announced some significant changes that could have a detrimental impact on landlords the UK’s private rental sector (PRS) and residential property owners.

Below are the highlights of the pre-election budget that are of relevance to landlords and property owners:

  • £13 Billion (GBP) sale announced of the mortgages of UKAR – Northern Rock and Bradford and Bingley (Mortgage Express) to reduce national debt which followed the bailing out of the banks.
  • Introduction of 20 new housing zones.
  • The economy of the North grew faster than the South during 2014.
  • The UK has the highest rate of employment in its history!
    Employment is growing fastest in the North West, Yorkshire having the biggest employment.
  • Living standards are higher in 2015 than 2010.
  • Inflation forecast downgraded to 0.2%.
  • Low interest rates to be “locked in”.
  • Original target of debt reduction set in 2010 budget has been met.
  • 13 years of rising national debt has now been stopped.
  • UK achieved the largest and most sustained debt reduction of any major economy according to the IMF.
  • Government borrowing is falling.
  • The wealthy are making the biggest contributions to reduce debt.
  • End of austerity in 2019.
  • The annual tax return is to be abolished. New digital tax accounts to be created.
  • The personal tax free allowance has been raised to £10,600 (GBP) and will be raised to £11,000 (GBP) in 2017.
  • The higher rate tax threshold will rise to £43,300 (GBP) by 2018.
  • Class 2 national insurance contributions abolished for self-employed.
  • Stronger measures against tax avoidance and tax evasion.
  • Review of avoidance of inheritance tax through deeds of variation.
  • New penalties for tax evasion and those professionals who assist them.
  • Crime down 20%.

There was some good news contained in the 2015 pre-election budget too:

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BoE Base Interest Rate Set To Remain Low Until 2015

BoE Base Interest Rate Set To Remain Low Until 2015

Base Interest Rates Set To Remain At
Low Levels Until The End Of 2015

A new economic forecast by Ernst & Young’s (EY) independent forecasting group, the Item Club, reckons that Bank of England (BoE) interest rates will remain at their historic low until the end of 2015 as wages start to outstrip inflation.

The Bank of England’s base rate has an impact on mortgage loans on property and savings returns and with the base rate remaining at 0.5%, it expects house prices to rise by 7.4% this year and 7.2% next year.

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Budget Sparks Property Price Increase Fear

Budget Sparks Property Price Increase Fear

UK property prices set to soar by 30%
Says Office for Budget Responsibility

UK residential property prices could increase sharply over the next five years, fuelled by a rise in the number of savers choosing to invest in property rather than taking annuity.

The forecast comes from the Office for Budget Responsibility (OBR), following the changes announced in George Osborne’s latest Budget which means that people will not be forced to take an annuity when they retire and instead they can choose to invest their money as they wish.

Many people are expected to use their pension pot to invest in property, rather than in currently poorly performing pensions, driving up UK property prices in the process.

The OBR has revised its forecast for UK residential property price growth in the next five years from 27% up to 30.8%.

According to the Office for Budget Responsibility forecast, anticipated UK residential property price growth is expected to be:

  • 8.6% in 2014/2015
  • 7.4% in 2015/2016
  • 4.3% in 2016/2017
  • 3.7% in 2017/2018
  • 3.7% in 2018/2019.

The predictions are the OBR’s best guess, they are not accurate in any way shape or form and should be used as a guide only. These are not fact, just speculation.

The OBR are supposed to be an independent fiscal body, however, they estimate that by the end of their forecast period, UK property prices should be just 0.5% below their pre-crisis peak, and the property price to income ratio is estimated to reach 2.3% below its pre-crisis peak.

The OBR also expects transaction volumes will increase at a faster pace than originally forecast over the coming five years. Estimating 1.28 Million housing transactions in 2014/2015, some 6% higher than the previous OBR forecast in December 2013.

The OBR also predict that Stamp Duty receipts will rise 90% over the next four years from £9.5 Billion (GBP) in 2013-14 to £18.1 Billion (GBP) in 2018-19.

The OBR report said: “House prices have continued to accelerate since our December forecast with annual growth reaching 5.5 % in December 2013. We expect house prices to peak earlier than in our December forecast at 9.2% in the 3rd quarter of 2014, with prices rising by around 30% by 2018-19.”

Property price growth is currently being led by London where even large estate agency groups like Savills forecast property values to surge by almost a quarter over the next five years.

According to a five-year outlook recently published by Savills, a number of risks to the prime property markets, such as Eurozone default, have receded over the past two years and Inner London boroughs could see a growth of 23.1%, and property prices in other areas of the capital could also rise by 22.7%.

UK Buy-To-Let Property Returns Better Than Fixed Rate ISA’s

UK Buy-To-Let Property Returns Better Than Fixed Rate ISA’s

UK Property Investment Offers Better Returns Than Fixed Rate ISA’s

UK investors are putting even more of their money into property investments rather than saving using an ISA because the returns can be far better.

UK property values have increased 11% year on year despite the property crash in 2008, however, the best fixed rate ISA offered by UK banks only offers savers an annual return equal to 1.85%.

The rise in UK property prices has caught the attention of diverse investors who would usually opt for different types of investment products to give them good  returns on their investment funds.

Property investment in the UK’s private rented sector allows investors to build profitable rental portfolios that produce better yields than other types of investment funds, including ISA’s.

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How many successful entrepreneurs and business experts do you know who have dyslexia?

How many successful entrepreneurs and business experts do you know who have dyslexia?

How many successful entrepreneurs and business experts do you know who have dyslexia?

Richard Branson, Alan Sugar, Steve Jobs… well it’s time to add another name to the list! Bruce Bishop, the author of ‘The Rich Revolution’.

Bruce’s mission is to empower ordinary people through independent financial freedom.

Property investors are always interested in wealth creation and personal development and the search for new inspiration is constant, so when we got hold of a copy of “The Rich Revolution” we found that Bruce certainly delivers plenty of food for thought.

Monday 25th November 2013 will see the UK launch of one of the most amazing and inspirational books of the decade.

“The Rich Revolution” recently became an Amazon best-seller in its first week of sales in the USA and is a must read for anyone interested in having an effective plan for creating wealth.

Bruce makes wealth creation so simple, it’s ridiculous!!! 

  • Why are we not shown these basic steps to creating wealth???
  • Why are we not taught these things when we’re growing up???

Thousands of people every day worry about money and mainly the lack of it. Whether it’s paying off debt, saving to provide for the future or being able to achieve all of our dreams and aspirations.

How long could you survive if your income stopped today?

It may be a very scary thought, but unfortunately the premise is becoming more of a common reality for many employed people with the UK employment market facing increased redundancies due to the uncertain economic future and many pension plans not reaching the values promised.

So how long could you survive? This is the measure of true wealth…

This book will show you the solutions to all of these quandries.

So who is the author and what makes him so special?

Bruce Bishop left school with just a handful of qualifications, due to his struggle with dyslexia and started work as a builder’s labourer.

In his early 20’s when most people his age were listening to their favourite music on the radio, Bruce was listening to self-development and motivational audio-books, which inspired him to start his own business.

Bruce went on to own various businesses. He had enough the ambition and focus to create a company of great value, so he could exit for millions and retire in the lap of luxury.

However, things didn’t quite work out as Bruce had planned.

In fact Bruce never made more than a reasonable income from any of the businesses he owned, the thing that really made his wealth is what he did with that income…

In his early 30’s Bruce made a plan to re-invest a proportion of his earnings to create a passive income.

It was this strategy that enabled him to retire from business at the age of 44.

Bruce only has one real regret, he wishes that he had been taught these wealth creation strategies earlier in life, as they can be applied to any form of asset or investment and it doesn’t matter whether people are in debt or wealthy, these wealth creation strategies work for everyone!

To become totally financially free, you would need to accumulate enough wealth to last you the rest of your days. In other words, if you needed £5,000 (GBP) per month, you would need £60,000 a year and if you have 50 years to live, you would need £3 Million (GBP) to survive the rest of your days in the lifestyle that you’ve chosen. This is very simplistic as it hasn’t taken into account the interest on the £3 Million (GBP), or inflation over the next 50 years, and many other factors – but just the practicalities of accumulating this amount of wealth is beyond most people.

Passive income is the difference between the rich and the rest of us. 

Planning for a successful financial future

Planning for a successful financial future

Most people work for money, and the rich make money work for them.

The whole ethos of “The Rich Revolution” is to create a plan, a route map to take you where you are now to the lifestyle of your choice.

For this strategy to work, you first need to understand your end goal. Your plan is like a journey and like any journey you need to work out your route, once you know the start and finish point you then simply work out a plan between the two.

By revealing the powerful strategies in Bruce’s book “The Rich Revolution” people develop an understanding of some simple financial laws and apply them through custom formulated spreadsheets and plans to manage their money to create a Wealth Fund.

There are some fundamental differences between the rich and the rest of us. By understanding these simple differences and implementing them in YOUR OWN life, you can become rich. And contrary to popular belief you don’t have to have an amazing income, change career or start a new business, this can be done from your present career with just an average income… those of you who know me will have heard me say time and time again.

As Bruce says:

 “It’s not what you earn, it’s what you do with what you earn”. 

The book launches  on Monday and Bruce is going to provide some truly incredible offers and free gifts to help promote the launch of  “The Rich Revolution” and you can buy a copy of your own through us!

North - South Divide Widens Again

North – South Divide Widens Again

A new study by the Office for National Statistics (ONS) has revealed that 20% of middle aged workers are property millionaires – on paper!

In the South East of England almost 30% of people in their 40s and 50s living in private residential properties can calculate their wealth to seven figures, when including savings, investments, the value of their homes and pension pots.

However, the study also revealed a sharp divide between North and South of England as well as between generations.

It claims that five times more children are growing up in households in the bottom top wealth bracket, North East, South East, wealth category as there are in the top wealth bracket.

While almost 60% of middle aged people in the South East have built up an impressive half a million pounds in savings, pension and property wealth, in the North East, 20% of the same age group have little or no assets that they can rely on.

The ONS study shows how wealth builds up through people’s working lives but begins to fall once they retire and begin using up their accumulated assets, in many cases on elderly care.

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It Pays To Be A Property Owning Pensioner

It Pays To Be A Property Owning Pensioner

Pensioners property worth almost £770 Billion Pounds

It has been revealed by national newspaper, The Telegraph, that Pensioners in the UK own almost £770 Billion (GBP) worth of property outright, without any form of mortgage.

It is estimated that some 4.7 million retired property owners in the UK own their residential properties outright.

The total value of OAP property ownership has increased by £1.2 Billion (GBP) over the past three months, representing almost £770 Billion (GBP) worth of property held outright, without a mortgage.

The survey was conducted in England, Scotland and Wales by advisory firm, Key Retirement Solutions, however, the survey didn’t cover properties in Northern Ireland.

The survey revealed a two-speed property market in the UK, with London seeing a significant rise in over-65s’ property wealth, however, the value of property wealth was much lower in the neighbouring South-East region.

The average value of property owned by pensioners without any form of mortgage increased by almost £12,000 (GBP) in London, but fell by £1,570 (GBP) in the South-East, the survey found.

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FCA Accused Of Interest-Only Mortgage ScaremongeringThe Financial Conduct Authority (FCA) has been accused of scaremongering when it comes to dealing with outstanding interest only mortgages.

You may remember that Spotlight reported that the FCA warned that almost half the 2.6 million or so UK property owners that have interest only mortgages would not have savings or other funds to cover the final bill at the end of the tenure.

Read the article here

Interest only mortgages represent approximately 33% of all UK mortgages.

With Interest only mortgage holders only paying enough to cover the monthly mortgage interest on the amount borrowed, the average shortfall is £71,000 (GBP) per person, according to the published FCA research.

The FCA, the new watchdog for the sector taking over from the Financial Services Authority (FSA), commissioned the research to provide a clear indication of what mortgage borrowers could face when their Interest Only mortgages mature between now and 2041.

Property investors and Buy-To-Let landlords are still wise to select interest only mortgages, rather than waste money by opting for capital repayment mortgages from the outset.

Landlords choose interest only mortgages to purchase rental properties because they are the cheapest option and may choose to switch to a repayment option at any time once the rental income is coming in.

Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association (IMLA),said: “By confirming that nine in every ten interest only (IO) borrowers have a repayment strategy in place, the FCA’s research should put an end to misguided reports of a mis-selling ‘scandal’ when the market boomed between 2002 and 2007. Having said that, as both the Experian report for the FCA and the GfK report shows, there are issues for the industry to deal with.” 

Market research firm GfK NOP questioned 1,103 interest only borrowers to consider how prepared they were to repay their loans.

The study found that 37% of interest only mortgage holders faced a shortfall in their plans to pay back the lump sum of the home loan, based on their own calculations.

But the FCA believes that many people underestimated the financial problem and it believes 48% of interest only mortgage holders will face a shortfall.

Martin Wheatley, Chief Executive of the FCA, said: “My advice to borrowers is not to bury their head in the sand over interest only mortgages. This report is a call to action.”

2013 State Of The Property Market Report

will help Property Investors avoid the same fate

2013 State Of The Property Market Address

Controversial Report Saves Property Investors From Losing A Fortune

It could easily be summarised as: “Scandal in paradise

You might even have read about it on “Spotlight” previously or seen this elsewhere in the press VERY recently…

In fact, the last few weeks have brought to light the massive failings (false promises?) of one particular “Self-Invested Personal Pension” (SIPP) provider.

As covered by the likes of The Guardian, CityWire, and FTAdvisor…

Questionable incentives, fraud allegations, frozen assets, pay-offs, mass refund requests…

So, in a nutshell, what happened…?

They got the buying model wrong.

And that is FUNDAMENTALLY IMPORTANT

Here’s how you can avoid the same mistakes:

Download Your FREE copy of The 2013 State Of The Property Market Address PDF

It’s simple…

Going out there and trying to be a property investor without getting educated is sabotaging your own success. (especially when entrusting EVERYTHING to a done-for-you service provider. “A fool and his money…”)

Doing Your due-diligence is key!

Which is why the two most renowned expert property investors of the last ten years have produced THIS compelling report on the state of the UK property market.

Download Your FREE copy of The 2013 State Of The Property Market Address PDF

They’ve already helped thousands of keen new property investors to avoid getting stung over the last seven years

And in light of these recent high-profile cases, they feel a sense of duty to other property investors like You to reveal these key predictions and strategies for 2013.

This will help cut through the noise, get clarity, and take your next steps in the right direction…

Without risking your savings!

Download Your FREE copy of The 2013 State Of The Property Market Address PDF

Some of the content revealed will be of a sensitive nature, and last year they were forced to take their controversial report down after just a few days…and this years State of The Property Market Address is even more explosive!

2013 State Of The Property Market Address

The Controversial 2013 Property Report Every UK Property Investor Is Talking About

This report is only available for 2 weeks so Get it NOW!

There Will Never Be A Better Time To Invest In Property

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