Newsletter - November 2006

 

In this issue:

• Seminar Success
• Protect your Identity - Guide for Landlords
• Are you thinking about living abroad - then you are not alone.
• M.D’s Comment

Seminar Success – Further date for your diary.

On 11th October SIPS held an Overseas Property Investment Seminar. This focussed on both professional advisers and individual investors explaining the options that were available and, not least, that there were alternatives to directly owning the property.

The success of the day led to a number of enquiries with Anglo Continental Properties, who are one of our business partners in respect of individual homes abroad.

In addition, the interest in tax efficient property investment solutions has led to a further seminar being arranged for Wednesday 6th December 2006 – “Smart Property Investment and Tax Solutions”.

If you are a professional adviser seeking to help clients understand their options and invest wisely using tax efficient ways to maximise their returns, then this presentation is for you.

The agenda will include:

• Buy to Let Overseas
  

  A unique model facilitating overseas property ownership and rental management via a bespoke travel company.

• Property Investment Fund
  

  Utilising the structure of a protected cell company listed on the Guernsey Stock Exchange, this fund facilitates investment in property for an individual, corporation, in ISA, PEP, SIPP or corporate pension structure.

• Bespoke Tax Planning Solutions
  

  Exploring opportunities to minimise taxation of assets and capital gains.  Such solutions can be applied to property investments, but also have wider opportunities for negating tax liabilities.

Date:   Wednesday 6th December 2006.
Time:  11.30 am for 12 noon. 
Location: Bromsgrove Golf Centre, Stratford Road, Bromsgrove B60 1LD.

The presentation will last approximately 2 hours including a light buffet lunch.

To book your place, please contact us now:

• Specialised Investment Property Services
  Suite 5c, Deer Park Business Centre
  Woollas Hill
  Eckington
  Worcs
  WR10 3DN
• Telephone: 01386 750990
• Email: admin@sips-ltd.co.uk

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Protect your Identity – Guide for Landlords

There is increasing concern with identity theft. Over half of identity theft victims are property landlords where criminals use the landlords name and the rented property’s address to apply for loans etc.

Mortgage Express, in their B2L magazine gave some useful tips on how landlords can protect themselves. This is replicated below:

• Have your post re-directed when you move out of a home you are going to let. Even junk mail can help a fraudster steal your identity.
• Make sure you get references from your tenants to ensure they are genuine. SIPS can help you in this respect.
• Register with the Mailing Preference Service at www.mpsonline.org.uk to have your name removed from most direct mail lists. This should help stop mail shots from credit card companies, for example, going to your former home.
• Tenants are also at risk and fitting secure mailboxes to each flat in a shared property can help protect them. It may also be a good idea to join a credit monitoring service to alert you of any significant changes to your credit report so that early action can be taken if necessary.

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Are you thinking about living abroad - then you are not alone.

A survey by NatWest Bank on the subject has revealed some startling findings – for example, among one particular age group of Britons surveyed almost three out of four respondents were determined to escape their fast paced and stressful lives for an idyllic overseas haunt.

NatWest commissioned the survey of British residents to try and determine just how strong the lure of a new life abroad is, and what exactly is fuelling this desire among Britons to expatriate.  The survey’s findings prove that if you are thinking about living abroad or have already made the move overseas then you’re not alone.  

The respondents were broken down into categories based on their age and it was the 30 – 50 year old age group most actively seeking or at least considering a new life abroad.

72% of 30 – 50 year old Britons who took part in the NatWest Bank survey said that they would consider a permanent life as an expatriate and overall the survey deduced that one in three UK residents want to escape the hectic nature of their lives and find a relaxed lifestyle overseas.

But is it just a distant dream for many:

• Where do you start?
• Do you retain a property in the UK just in case it doesn’t work out – if so what are the options?
• What about finance?
• What about healthcare?
• What about travel insurance?
• What about property insurance?
• What about the legal issues?
• Do I need a will registered abroad?

SIPS is dedicated to providing bespoke and flexible solutions for those wising to purchase property abroad. The focus is to provide peace of mind and to ensure the whole project is comprehensively managed by working with respected business partners within their own specialisms.

Whether you are an individual seeeking to relocate abroad or a professional adviser needing to provide solutions for a client then we are able to assist. Contact Glenn Hanson for further details or look at our website, www.sips-ltd.co.uk for additional information.

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M.D’s Comment

I am often asked where is the best place to invest in property. This really is like asking how long is a piece of string, and frankly changes from day to day depending on the commentator.

Much depends on the individual’s objectives and what they are really trying to achieve. Cape Verde is a good investment prospect, but it is nearly 5 hours flight time from the U.K and only very recently has there been a direct flight going there. Fine for some but not others. Clearly a long term view needs to be taken in this instance as interest in the Cape Verde Islands develops.

For some, they want to invest in property, but have limited funds available. The danger will be that they are tempted by an investment that does not satisfy any of the golden rules:

• Will the property sell?
• Will the property let?
• Is there potential for capital growth?
• Is there an infrastructure to manage the property?

If it is just a pure investment in property that is desired then using a property fund to facilitate the investment may be a much better option than individually owning a property with all the rigors that ownership brings, particularly if the property is abroad.

I still take the view that the UK market is one to always consider. Historically the UK property market has delivered consistent returns, there is a continuing demand for good quality rental property given that many still find it difficult to get on the housing ladder and want to be resident in areas where there are good schools. Demand for new housing still exceeds supply and this creates an environment for potential growth over the long term.

Average house prices grew in the U.K by 8.6% (Halifax House Price Index) over the last 12 months and this is consistent with the figures published by the Land Registry in their quarterly report. With the recent hike in interest rates there is an expectancy that the housing market will start to cool down, but to what extent is really unclear given that the ongoing demand for housing is still there.

So where is the best place to invest – one which satisfies the individuals own aspirations and that is an individual decision where SIPS will work with the client in order to facilitate the desired outcome.

 

Glenn Hanson, Managing Director, SIPS Ltd

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