29
Dec
Happy New Year - and 2012 will be better!
If you are like us at Investabroad Properties, you will not be
sorry to see the end of 2011 and the start of a New Year, with all
its usual new hopes and – as we have become accustomed during
the last few years – some new fears as well!
In our view, 2011 has, without doubt, been the most difficult
year since the world-wide economic and financial problems first
caused havoc in the international property market some four years
ago. “Doom and gloom” seemed to be the principal
subject for the media on almost a daily basis and it is hard for
anyone to ignore that, unless they happen to be part of the
relatively small minority of the “seriously
wealthy”.
What is more, we can hardly blame the media when the facts speak
for themselves, particularly so far as the economies of the USA and
most of the euro zone countries are concerned. American politicians
of both parties should be ashamed of their inability – or
refusal – to put their country’s economic future before
party politics.
Meanwhile, in Europe, the fears of a total collapse of the euro
and the effect that this will have on all European economies,
including that of the UK, are enough to put many people off from
committing to a new home and lifestyle overseas or a new form of
investment.
SURPRISING SUCCESSES IN 2011
However, it may surprise our readers to learn that, in spite of
all that 2011 has thrown at us, there have been many success
stories in the international market during this difficult year.
Although sales of holiday homes and properties for relocation have
suffered more than most sectors of the market, there has been an
encouraging improvement during the last part of the year, which has
also seen France overtake Spain as the most popular destination for
UK buyers.
Of course, it would be foolish to get carried away by this news,
when there remain tens of thousands of properties still on the
market in each of those countries, but at least the trend is in the
right direction and we expect to see further improvements in market
conditions next year. These should result in many more sales in
countries such as Italy and Portugal, as well as in France and
Spain.
SALES THROUGH SIPPS GAIN MOMENTUM
As in previous years, it has been the investment market which
has provided the greatest level of activity during 2011 and there
is a clear reason for this – a further and substantial
increase in the number of buyers using a Self Invested Personal
Pension, or SIPP. Such has been the momentum of this that two of
the most successful developers for at least the last two years now
find that well over 80% of their sales are being made this way.
Happily, we are agents for both!
Despite this, the total amount of money “locked
away” in pension schemes which are delivering virtually
nothing to the pension holders is gargantuan and the majority of
the people concerned probably have no idea of what those pensions
are worth, or how little they are benefiting from them.
The tax benefits of buying an investment property through a SIPP
are considerable and really should be considered by anyone who has
a half forgotten pension or has money in some deposit account
which, again, is probably providing a miserable rate of
interest.
Investabroad Properties has many excellent property investment
opportunities which have been approved for a SIPP purchase. We also
have direct lines of contact with independent financial advisers
who specialise in this field and with pension companies which are
the most actively involved. So, if you have a pension which is
doing next to nothing for you, we can arrange for you to have a
current valuation and can advise you of your options if it is
transferred to a SIPP. It will cost you nothing to find out!
To start with, if you would just like to read a professionally
written explanation of SIPPs and how you can benefit from them, we
will be delighted to provide one. It is worth noting that a SIPP
can also be used for the purchase of many of our ‘Alternative
Investments’, of which more is below.
2012 – THE YEAR OF FRACTIONAL OWNERSHIP
Another reason for our cautious optimism for 2012 is that, after
several years of failing to match expectations with results, it
really does seem that fractional ownership, sometimes known as
shared ownership or co-ownership, will make a serious break-through
at last. Several new developments in many different countries, for
which we are agents, are offering this as an alternative to
outright purchase – and it makes very good sense for many
people.
The first thing to understand is that this is not timeshare and
should not be confused with that concept, which does not involve
ownership of title. With fractional, you buy the freehold (usually)
of a share in the property and these are generally divided into
quarters or sixths. Whatever share you buy, it is yours to use,
rent out, exchange, sell or bequeath as you wish and, as you have
bought property itself, there is every probability that it will
increase in value.
For a family which needs more than a small apartment for its
holiday accommodation but cannot justify or afford the outright
purchase of a larger property, it makes complete sense and we will
be pleased to provide a simple explanation of how it works for
those who need it.
ALTERNATIVE INVESTMENTS WILL BE PROMINENT
Another relative newcomer to our portfolio and one which we
believe will be very prominent in our activities in 2012 is what we
term ‘Alternative Investments’. We have a whole range
of these, many of which are consistently delivering excellent
returns on capital and many of which have first class “green
credentials”. Even more appealing to many investors is the
fact that the financial entry level may be as little as £5000,
whilst the great majority are no more than £25,000.
MORE WILL BUY PROPERTIES FOR WORK AND INCOME
Finally, we believe that 2012 will be a year when many people
finally convert their aspirations into reality by buying a property
which will provide them with a commercial income, as well as a new
lifestyle. The statistics involving the number of UK citizens who
long to move abroad to work are as astonishing as ever and, for
many, the time will come when they tire of waiting for better times
and get on with it!
For this market, we have hotels and guest houses in Italy,
chambre d’hôte and gite opportunities in France, country
estates and smallholdings in Spain (one is illustrated on the Home
Page where this article starts) and numerous properties with
considerable development potential in many countries as diverse as
Malaysia, Greece and Lithuania.
So, do join us on our journey through 2012 and share with us the
successes we believe it will bring. Please remember that, when you
are dealing with Investabroad Properties, you are with a company
with an ethos of total integrity and professionalism at all times.
The website content will keep changing, but please bear in mind
that there will always be a great range of properties of all kinds
and to meet all criteria which may not appear on the website and
the same is true of our increasing selection of ‘Alternative
Investments’.