Last year’s autumn statement – the first by Chancellor Philip Hammond – showed exactly why interest in a property bond is so high amongst investors.
When previous Chancellor George Osborne was in office, he raised stamp duty and was accused of ‘targeting landlords’. It was one of the factors that boosted enquiries for property bond availability. Many investors looked for other ways to grow their money through bricks and mortar as an alternative to buy to let.
Many existing landlords and potential new ones had their fingers crossed that Philip Hammond would reverse Osborne’s buy to let measures. Instead, new legislation introduced by Hammond has made the humble property bond look more attractive than ever before.
How low entry level property bond costs can boost investor savings
The right property bond option can help investors to earn up to 42.5% depending on the choices they make. Meanwhile, investments available through Heron Global Partners are also fixed-term and asset-backed with regular payment options.
And, with Philip Hammond ordering that letting agents’ fees are to be banned “as soon as possible”, there’s another potential stumbling block for landlords looking to make good returns from a buy to let investment. This could mean that landlords have to pay the fees themselves, or cope by putting rents up. Neither option sounds too attractive from a landlord’s perspective.
Most disappointing for buy to let landlords and those looking to invest in a second property is that Osborne’s introductions remained untouched. That leaves the future of buy to let as an investment opportunity rather cloudy. People looking to get into the property market for the potential to earn high yields may need to look elsewhere.
Buying to let is still a way for investors to make money, but that’s become unquestionably harder over the last couple of years. And with tougher mortgage checks set to be introduced for people wanting to buy a second home, a property bond may very well be the best way for investors to grow their savings.
Getting potentially large returns from low property bond yields
Of course, this is all headline news. But to put a real face to the changes, consider the story of Phil Stewardson and his brother. Both are buy to let investors who recently told the Telegraph they feel the government has seriously let them down.
The Stewardsons are just part of a wave of landlords who feel the same. No one wants to feel that they are essentially being farmed for profits and tax by the Chancellor. In many cases, their love for all things property-based is waning.
One in four landlords are, in fact, selling their properties as a result to the changes, taking their money elsewhere. Personally, we feel that the best alternative is a property bond, which allows investors to get fixed returns while keeping their money in a sector they know and love.
If you’d like to learn more about property bond availability, contact Heron Global Partners today. You could earn potential returns of 42.5% (depending on your options) in an asset-backed, fixed-return way.Continue reading
Fixed return property investments are on the up, though it’s sad to see what appears to be a buy to let crisis looming on the horizon.
For landlords anyway, at least. The government is set to rake in close to £7 billion over the next five years thanks to changes in legislation, carrying on from the stamp duty rises put into effect by previous Chancellor George Osborne.
What does it mean for UK property investments? Put simply it means that investors are looking more at fixed return property investments and bonds to make potentially serious money from bricks and mortar, rather than subject their savings and future finances to a murky future.
Are buy to let UK property investments right for you?
We don’t make these comparisons lightly; rather, data is showing that one-in-four landlords are now selling their initial property investments because of the financial hardships that buy to let is now presenting to them.
Things aren’t going to get much better too, meaning people that took the plunge on other homes as buy to let property investments are set to face future tax increases to complement the changes in stamp duty they’re already having to cope with.
Between 2017 and 2020, landlords will have to pay tax on the full amount of the profits they earn, less tax relief fixed at 20%. That’s terrible news for mortgaged landlords who have taken out buy to let property investments that are paying 40-45% tax. They’ll be paying much more, as will some basic-rate taxpayers that will be pushed into a higher bracket.
Some people become a buy to let landlord simply for the sheer love of all things property and the satisfaction it provides. It’s fair to say though that the majority enter the market to grow their savings – a prospect that looks further away than ever thanks to changes in legislation.
How fixed return property investments can grow your savings
The burden may be eased far into the future, but for savers and investors looking to grow their money with retirement imminent, can they really wait in hope that things may change?
The Bank of England is also set to make it harder than ever for buy to let investors to borrow thanks to a crackdown in their mortgage policies. With Chancellor Philip Hammond also banning letting agents’ fees in his recent autumn statement, problems keep on piling up for people that want to or have invested their time and money in the buy to let market.
It’s part of the reason why people are looking more toward property bonds and fixed-rate asset-backed alternative investments in the housing sector.
The right investment can not only help people avoid a lot of those situations when growing their money, but provide them with low entry level investments while providing quarterly or bi-annual payments alongside capital growth options.
If you’d like to know more about the incredible, potentially high returns fixed return property investments can provide – possibly up to 42.5% depending on the options you invest in – contact Heron Global Partners today to find out more.Continue reading
It’s fair to say we’ve been hearing and seeing a lot more people considering the alternative investment option after Chancellor Philip Hammond’s autumn statement.
No wonder we’re fielding more questions on how to choose the right alternative investment… While there were many winners and losers during the statement, we feel it’s the right time for people that want to grow their money to consider the raft of alternative investment opportunities currently out there.
Cutting through the mass of alternative investment opportunities
People are also seriously considering an alternative investment thanks to traditional routes such as changes to buy-to-let becoming less attractive than ever before.
Changes to stamp duty in April have already dissuaded a lot of investors from putting their savings into bricks and mortar, and Philip Hammond’s decision to ban letting agents’ fees will also be a blow to landlords. The Telegraph has even gone as far as saying that the government has destroyed the entire buy-to-let market in the space of 16 months.
Potential landlords are looking more toward alternative investment solutions, as are people that will be hit by changes to pensions. Especially women; at effectively short notice the government says the retirement age for women will hit 66 by 2020. Some are even considering the option of retiring earlier for reduced pay; not an enviable situation to be in.
Savers are already finding it hard to grow their money, and the announcement that people who have already been drawing down their pensions since new rules came in will see their annual allowances cut to £4,000 from £10,000.
Foreign pensions are also set to be radically overhauled to bring them more in line with domestic UK pensions, which will be a tax boost for the Chancellor but is likely to hit expats hard.
How to choose the right alternative investment to get potentially high returns
Despite promises to raise the national living wage in April 2017, all of this has been played out against a backdrop of wage growth being at its worst since World War Two. According to the Institute for Fiscal Studies, workers are set to see no real terms wage growth for the best part of a decade.
With savers being hit, traditional investment routes being blocked off, pension pots suffering and a period of stagnant wages, clever investing is set to become more important to people than ever before to help them build their financial future and navigate through the tough times.
A strong alternative investment strategy could provide the financial safety and security that people are looking for. It’s essential to realise, too, that we’re still living in a pre-Brexit world and that Article 50 hasn’t been triggered yet. Considering your options through alternative routes now could save you a lot of potential heartache further down the line.
Choosing an alternative investment doesn’t have to be hard. Investors can get potential returns of 9% from various alternative government-backed sectors with Heron Global Partners. Contact us today to find out more.Continue reading
The renewable energy investment scene has been closely following the progress of the RE100 for a while now.
It’s something we’ve mentioned previously on our blog, and has helped turned people onto the world of clean energy and the renewable energy investment opportunities available to them that will help grow their finances.
The RE100 is a group of the world’s largest and most visible companies, all coming together to commit to powering their operations entirely through 100% renewable power.
With companies as influential as Apple, Nike, News Corp, the Scottish and Welsh governments and Google all involved, it’s little wonder that renewable energy investment is growing in popularity with such backing.
Grow your savings with renewable energy investment opportunities
One company that’s embracing its commitment to the RE100 model is General Motors, which has recently made its largest renewable energy purchase so far by buying a third of the power generated by a Cactus Flats wind farm development in Texas.
General Motors has purchased 50 MW of the 150 MW farm which will come online in the first half of 2018, and it’s set to power 16 of the company’s US-based facilities.
Movements such as these are excellent news from a renewable energy investment point of view. As Amy Davidsen, The Climate Group’s Executive Director, North America points out, “going 100% renewable makes business sense”.
General Motors is undoubtedly setting trends when it comes to investing in clean energy and are seeing the benefits first-hand of commercial renewable energy investment.
It’s not just businesses looking into becoming 100% run on renewable energy. 48 countries have recently agreed to run entirely from clean energy by 2050, and includes nations disproportionately affected by climate change including Ethiopia and Bangladesh.
How renewable energy investment funds can give you a savings boost
Scotland, one of the first destinations people look to for renewable energy investment, could be running on 50% renewable energy solutions by 2030 according to experts.
While momentum is certainly strong on a global level when it comes to adopting clean energy, there’s little doubt that the influence of the world’s largest companies will help achieve targets faster.
General Motors in fact, as well as the other companies within the RE100, are urging the European Union to encourage policymakers to revise energy legislation.
Doing so will help support businesses looking to go 100% renewable according to RE100, and further encourage clean energy adoption throughout business communities. It will also help global leaders reach their energy targets, and herald the dawn of a zero-emissions economy.
We’ll have to wait and see how the EU responds, and other economies like it. Whatever the reaction though, investing in renewable projects is a great way for savers and investors to diversify their portfolios into the green energy sector, as well as backing ethical opportunities to grow their money.
If you’re looking to grow your savings in a clean, ethical way, renewable energy investment opportunities may be an intriguing way to give your finances a boost. Contact Heron Global Partners today to find out more about potential quarterly returns of 9%.Continue reading
NatWest is currently a dirty word in investment circles. In fairness, quite a few major banking names are, due to them toying with the idea of introducing negative interest rates. Instead, property investments in the UK are becoming an increasingly attractive proposition for investors post-Brexit. It may be time to look at growing your money with bonds made of bricks and mortar. (more…)Continue reading
The incredible rise of the renewables sector over the past decade makes for an encouraging renewable energy investment forecast. This is only bolstered by the continuing fall in crude oil and gas prices.
The Guardian reported at the end of July that BP’s profits had dropped by an incredible 44 per cent. That was over the course of 2016’s second quarter, with the finger of blame being squarely pointed at the dropping price of crude oil and gas. Brent crude has been trading at prices 60 per cent lower than in 2014.
BP won’t be alone in these struggles. It’ll be intriguing to see how badly other companies have been hit by what seems to be a common issue in the energy sector. (more…)Continue reading
Why invest in wind energy? Because not only is there an enormous appetite for it, but its status as a serious alternative energy source is now unrivalled.
It’s intriguing to see the public’s perception of fracking. According to government statistics only 19 per cent of people support fracking. Even at its height in April 2014, fracking as an energy source attracted only 29 per cent of public support.
In contrast, the official figures also show that support for renewable energy is at the other end of the scale with 81 per cent of people in support of the technology. (more…)Continue reading
On Tuesday over 300 signatories from Oxbridge, including the likes of Astronomer Royal Lord Rees and the Royal Society’s Sir Venki Ramakrishnan, all signed a joint petition calling for the institutes to pour their vast wealth into green, renewable energy investments.
When the Archbishop of Canterbury says something people usually sit up and listen. However, when the previous Archbishop Rowan Williams says something alongside 300 of Oxford and Cambridge’s best and brightest academics then it suggests real change is afoot.
The University of Cambridge’s endowment exceeds £5 billion – the biggest in Europe – with Oxford’s at £4.2 billion. The student-led campaign feels that those funds should take into account “looming social, environmental, and financial pressures” and be part of the fossil fuel divestment movement. (more…)Continue reading
Some great news came out of Burnley over the Christmas period.
Printing firm Peter Scott Printers has invested £500,000 into a new printing press as well as a huge facility to house it in.
The six-colour printing press is expected to help the company massively improve its production speed as well as increase its turnover capacity by 50 per cent. The company produces numerous printed materials for a range of small and national businesses. (more…)Continue reading
If you are looking for solid support for wind energy investment opportunities, here you go. Vestas Wind Systems has raised its annual revenue and profit forecast today for the second time this year.
The Danish wind turbine manufacturer’s quarterly profit has exceeded expectations with net profit in Q3 rising to 206 million Euros – more than double its 2014 earnings for the same period which stood at 102 million Euros.
Vestas has now raised its 2015 revenue forecast from 7.5 billion Euros to approximately 8 – 8.5 billion Euros. Vestas also expects the profit margin to be between nine and 10 per cent before interest and taxes; up from 8.5 per cent after stripping out one-off items. (more…)Continue reading