Streetwise Property Alert 4th November 2013

I’m writing this to every single Property Alerts member as I have an urgent message to share with each and every one of you who is a would-be property investor in 2014.

Fact is, 97 per cent of you reading this are going to be banned from buying into the most popular forms of property investments from 1st January 2014.

You’re not going to be able to buy student pods, hotel rooms and the like offering 10 per cent yields etc. The government can dress it up all it likes – but if you’re not part of the clever and riche elite, your investing days are now numbered. Let me explain…

PPS 13/3 Eh?

The Financial Conduct Authority, FCA, issued a policy statement – PS 13/3 – earlier this year which effectively bans the promotion of ‘non-mainstream pooled investments (NMPIs) to ordinary investors’ from 1 January 2014.

In simple terms, ordinary members of the public can, from the start of 2014, no longer put money into what we might call ‘unregulated collective schemes’ where someone else takes investors’ pooled resources, controls and runs the investment and pays out, say a set 8 or 10 per cent a year.

We’re talking investments such as student housing, car parks, cemeteries, farmland and hotel rooms. Often, these are terrific investments but Joe Public cannot invest in them from 1 January. As one agent put it, rather ungallantly, ‘it’s all to do with the nanny state and protecting a small number of stupid and poor people who don’t know what they’re doing from themselves.’

Are You Clever & Rich?

There are exceptions though – if you are rich and sophisticated. You can buy into these investments if you are a ‘certified high net worth investor’ or a ‘certified sophisticated investor’ or a ‘self-certified sophisticated investor’.

So, ballpark, if you have an annual income of £100,000, net assets of £250,000 and have invested in similar investments before, you can keep going with these investments. If not, forget it!

Who was it who sang, ‘It’s the same the whole world over, it’s the poor what gets the blame, it’s the rich what gets the pleasure and it’s all a blooming shame?’ It’s as true today as it ever was.

Get The Lowdown

Have to say, this is a brief summary of what’s happening soon. If you are a high net worth/sophisticated investor already, you’re fine as you are. (Same for papertraders too). The only difference is you will need to register with us to receive details of these investments as we will no longer be sending them to the general free membership.

We have lots more material to present to interested members at a free seminar planned for the Hilton Tower Bridge Hotel in London on 16 November; email back for full details of this free event. Places are limited so be quick. And only come if you are a would-be investor please.

We’ll also present one or two opportunities that you may want to invest in before you’re banned! And our friends, Dave Burgess and Jeannie Lumb will be there as well to reveal, whisper it quietly, how some investments they are offering – a hotel, student accommodation and a German property project – will still be available to Joe Public investors after 1 January 2014!

All will be revealed on Saturday 16 November!

Streetwise Property Alert 1st November 2013

Welcome to today’s email…

London – Asking Prices Updates

Asking prices in England and Wales rose 2.8 per cent between September and October and are now 3.8 per cent higher than this time last year. London, as ever, takes the headline on the basis that the biggest rise has been in London where there was a 10.2 per cent, £50,484, rise in average asking prices this month.

What next? Miles Shipside at Rightmove takes up the story, ‘Fewer sellers were coming to market in London during the traditional summer recess resulting in total price falls of 4.3 per cent over August and September. This month’s rebound in the number of sellers brings the quarterly growth figure back into line with the recent trend at around 2 per cent a month. Although not sustainable in the longer term, some agents currently report there is a buying frenzy in parts of prime inner London, with available stock so low that their shelves are now bare.’

‘London is a world city where overseas investors see real estate as a safe asset, at a time when safe assets are increasingly scarce, and developers are building and marketing a lot of one and two bedroom flats to meet that demand. While they can achieve volume sales at premium prices, this eats up a much needed source of fresh supply and drags up existing property prices at an even faster rate.’

‘With the London market failing to provide the range of affordable properties its growing population needs, the South East is experiencing upwards price pressure as demand spills over. With an average price of just over £300,000, a commuter belt property is in the cross hairs of Help to Buy assisted purchasers unable to afford the London market.’ Email back to sign up to London Property Alerts for further coverage. admin@streetwisenews.com

A Quick Reminder

There has been much interest in our London bespoke service, already half full, and a common question has been, what is being offered off-plan-wise? In terms of what we can introduce, I think it’s best to say that we are offering off-plan opportunities in several areas at the moment such as Chelsea, Battersea, Fulham, Kew, Ealing, Hendon, Blackfriars etc with prices ranging from approximately £400k up to £5 million.

We also have other developments coming up so we are covering most areas. However, we prefer to be more bespoke in our offering so ideally you, the investor, tell us your price range and preferred location and we then match that with the best developments. It also helps to know if you want off-plan with 12 to 24 month completions or something which is ready to move into now in the next six months.

Insurance Policy Check

A timely reminder comes in from Gordon Morris of Age UK Enterprises, ‘With the end of British Summer Time just around the corner and winter fast approaching we all need to think about any adaptations we have to make for the changing season. Alongside considerations about when to put the heating on and safety as it gets dark we should also be thinking about our homes and how they will fare when the cold snap comes, as winter weather can be tough. It is also a good time to review your insurance policy to understand your cover.’

‘As with all insurance products, it is crucial to read the small print of your insurance policy and be aware of any exceptions which could have an impact on your claim.’ Other tips? Keep your valuables out of sight, away from windows, and remember to draw the curtains in the evenings. Ensure that all doors and windows are securely locked when you leave your house – even if you only go out for a short period of time. If travelling away from home, inform a trusted neighbour or family member and provide them with a contact telephone number. Make your home seem occupied during the dark winter evenings – installing timers on lamps is often a good idea. Protect pipes from cold and icy weather as this can cause blockages, cracks and breakdowns. Keep your claims helpline number easily to hand in case you need to make a claim or require assistance in an emergency. Keep gutters, gullies and drains clear to carry water away quickly and efficiently.

All for now, other than to say no more replies for the cemetery investment in Kent please. Our allocation has been taken. We will set up a reserve list for those who have expressed interest but have not yet had a chance to visit.

 

BOGOF

Bogof is usually an acronym for buy one get one free, but in this case the second ‘g’ stands for give. World Clothes Line is a profit making company with a philanthropic aim – to provide free clothes to disadvantaged people in Peru, Indonesia and poorer parts of the United States. When a customer buys a garment from the company, they get to gift  the same or similar item, to someone in need. Aside from the undoubted charitable benefits, I have no way of knowing how profitable this is, but it’s certainly an interesting idea. And it differentiates World Clothes Line from other companies operating in the same market.

Might something similar work in your business? It doesn’t have to be clothes, or indeed an identical item that you give away. The principle is this – as a customer, you buy something and get to feel good because someone else receives something for free as a result.  Give it some thought.