Economy
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Blog and News -
Economy
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Written by John Angeletta
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Friday, 18 May 2012 08:10 |
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H2 forecast for UK's recovery ...
The Confederation of British Industry (CBI) has cut growth forecasts for 2012 from 0.9% to 0.6% however, the London Olympics and demand for manufacturing, translating into jobs and investment, will lead UK GDP back into positive territory after July.
Growth in Q2 will be dampened by the Queen's Diamond Jubilee Bank Holiday but growth of 0.7% and 0.5% in the third and fourth quarters respectively, is predicted.
John Cridland, CBI DG said, We have always said the path back to sustainable economic growth will be a long and difficult one, with many bumps along the way. To rebalance our economy towards exports and investment will take time and patience.
In 2013, the CBI forecast the UK economy will grow 2% and inflation will hit the Bank of England's target of 2% that year.
The Office of National Statistics (ONS) revealed preliminary data last week that showed the economy had shrunk by 0.3% in the first quarter.
What We Say ~ It is a fact of commerce that opportunity to buy property at significant discount will deminish as the UK/world returns to normality. Now is the time to prudently add as much discounted property to your portfolio as you possibly can. Though there will always be property owners wishing to sell at a discount price, the current 25%-off or better will be much more difficult to achieve! Don't delay!
Call John on 0203 239 4359 to explore your safe discount property options. STOP PRESS STOP PRESS If Greece leaves the EU, exports will be affected across Europe. The above UK predictions will probably change.
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Blog and News -
Economy
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Written by John Angeletta
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Monday, 27 February 2012 09:50 |
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Britain will avoid returning to recession with modest growth expectation starting later this year, according to the CBI.
The business lobby group thinks the UK will avoid an official recession i.e. 2-quarters of declines in a row, by bouncing back from its 0.2% fall in Q4/11 to growth of 0.2% in the first quarter of 2012.
It predicts another 0.2% rise in the Q2 before speeding up a little later in the year.
Overall, it expects growth of 0.9% in 2012 and 2% in 2013, highlighting the fact that companies are starting to invest in new equipment and finding new export markets, the BBC reports.
Consumers and households however, face a subdued outlook due to high unemployment and squeezed living standards.
CBI DG John Cridland said, Economic conditions will continue to be tough, especially in the first half of the year and the UK recovery will depend on the successful resolution of the eurozone crisis ... The pressure on household incomes will also ease slightly in the second half of this year as inflation falls, resulting in a slight increase in consumer spending ... But weak wage growth and high levels of unemployment will continue to be a brake on household spending.
The CBI added it was encouraged by cash injections from the European Central Bank and core eurozone countries were seeing signs of stabilisation.
What We Say ~ Investment property opportunity will remain very bullish for the forseeable future. As property values remain subdued, BMV discounts remain higher, typically 25% below open market values. As the property market begins to strengthen however, BMV discounts will naturally reduce.
To explore genuine BMV property opportunity, call John on 0203 239 4359.
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Blog and News -
Economy
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Written by John Angeletta
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Friday, 10 February 2012 11:56 |
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Thames River multi-manager duo Gary Potter and Rob Burdett say although events in the eurozone crisis is weighing on market sentiment, several indicators suggest it will not be as severe as 2008.
Potter and Burdett, who run one of the largest multi-manager ranges in the UK, give 3-reasons why this year will not see a return to the dark days of 2008.
1. US credit markets are stable ~ compared to 2008, US credit markets are stable, as banks are showing a lot more willingness to lend than they did post Lehmans. Federal Reserve statistics measuring senior loan officers' willingness to lend showed a 18.8% increase in their readiness to grant consumer loans, compared to a 47.2% fall in September 2008.
Moreover, the LIBOR rate this time around is much lower. In 2008 the average interest rates banks were lending at was 2.82%, but at the start of 2012 LIBOR was 0.58%.
2. Corporate earnings and dividends are stronger ~ the FTSE 100 may remain rangebound between 5,000 and 6,000 for a number of years, but the multi-managers are optimistic on the outlook for dividends. Corporate earnings and dividends grew 9% last year and are expected to grow at 6%-7% in 2012.
Dividend growth has been driven by balance sheets being so much stronger than they were during the credit crunch due to corporate debt being refinanced. Firms have de-leveraged and have held on to high levels of cash, and in my opinion this had led to balance sheets being the strongest in 30-years.
3. Businesses are buying back stock ~ share buy-backs are on the increase and at a higher level than in 2008, resulting in stronger investor sentiment towards equities this time around.
Put/call ratios are showing corporations and business owners are buying back stock in their own companies at levels a lot high than in 2008.
This shows investors believe in their companies and take the view share prices are trading at depressed levels with plenty of upside. ****
The above is good news however, Below Market Value property represents an exceptional opportunity in any market state, whether to Buy-to-Let or Buy-to-Live.
With as little as £15,000 rolling investment, a family home may legitimately be purchased every 6-months, each producing gross rents of c.£400pcm.
If you don't believe it, call John on 0203 239 4359.
STOP PRESS STOP PRESS STOP PRESS
Over half the NEW landlords buying investment properties last year were small-scale or first time landlords with that trend accelerating over the year, says Countrywide.
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Blog and News -
Economy
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Written by John Angeletta
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Tuesday, 07 February 2012 12:52 |
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One-in-5 young adults are now living with parents well into their 20's, as they struggle to get onto the property ladder, according to research out today and most forced to lodge with Mum and Dad claim to be having a negative time of it. Eight-out-of-10 say they have less freedom living at home with 7:10 admitting it has an adverse affect on their social agenda. More than two-thirds also feel their relationship with parents would improve if they moved out.
A tiny 7% of respondents say they enjoy living at home, with 1:10 saying they could be in their late-40's, early-50's before could afford to do anything about it. The 1,000 reluctant stay-at-homers, survey by housebuilder Taylor Wimpey, also revealed that, although the Hotel of Mum and Dad may still be open for business, the Bank of Mum and Dad seems firmly closed.
Two-out-of-3 parents say they simply don't have spare funds to help their children with a deposit for a house with nearly a quarter admitting they are struggling themselves to keep afloat. One-in-10 feel their adult children should be financially independent.
It seems however, that some first-time buyers are not helping themselves when it comes to getting on the property ladder. One-in-3 say they are not prepared to give up holidays to save for a deposit! More than a quarter say they would not give up buying new clothes or eating out!
Only 1:5 say they would consider joint purchase with a friend, or taking in a lodger or renting in a cheaper location. Property guru and TV personality Phil Spencer, who launched a series of video guides to help first time buyers, says this research highlights the challenges faced by those trying to get on the property ladder, but he insists that there is light at the end of the tunnel. Living with parents on a temporary basis can be a great way to relieve some financial pressure while saving for a deposit, but if you take your eye off the end goal, you could find yourself stuck there! Make sure you have a proper savings plan in place, consider buying with friends or family and find out about the range of schemes from the government and housebuilders, which means you may only need to save a 5% deposit ... Interestingly, the survey did show that we are still a nation that aspires to home ownership. Eight-four percent of people aged between 18-25 said they believed property was still a good long-term investment and, in terms of their priorities in life, one-in-three put owning their own home above getting married, having children and a successful career. What We Say ~ Did you know that with as little as £15,000 rolling cash, you can buy a £75,000 below market value properties ever 6-months, each producing c.£400 pcm rental income! Now there's a thought!
For more details, call John on 0203 239 4359.
STOP PRESS STOP PRESS STOP PRESS
TBMC has launched a buy-to-let exclusive with Hinckley & Rugby Building Society.
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Blog and News -
Economy
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Written by John Angeletta
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Monday, 28 November 2011 15:47 |
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RICS Comment On Government Housing Strategy
Commenting on the Government's Housing Strategy, RICS spokesperson Michael Newey, said: RICS welcomes the Government's Housing Strategy and hopes that the proposals can go some way to boosting the stagnant housing market. Given its central role in driving economic growth, it is right that housing is now at the top of the political agenda.
The New Build Indemnity Scheme is to be welcomed but care must be taken to ensure it does not distort the market or lenders affordability calculations. The focus on new build will not free up chains and may reduce demand for second hand property, putting those who wish to move but have little equity at a disadvantage. Small to medium-sized developers will particularly welcome the Get Britain Building Investment Fund and the recognition of the key role housebuilders will play in driving much-needed economic growth. Whilst a renewed focus bringing investment into the private rented sector is encouraging, an opportunity has been missed to begin delivering real consumer protection and professionalism right across this rapidly growing sector.
This is a good start from the Government but more detail is needed. RICS looks forward to continuing engagement with the Government and the sector to deliver a sustainable housing market that delivers aspirations across all sections of the market, benefiting UK PLC as a whole.
What do you feel this Government Initiative will do for the investor/landlord? Have your say by completing the Comment Section below or call 0203 239 4359. www.bmvpropertyinvestmentdeals.co.uk
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