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Europe Again

Some interesting items in the media these days.

First, the move which I highlighted last June, for companies to start buying up rental properties into portfolios which are then sold into investment schemes, has grown apace. In my Big Pension bulletin I am currently sharing investment property deals which show returns starting at 7%, and rising to 20%.

You may recall I suggested that the standard ROI for such deals would probably settle around 8%. Currently most schemes are paying out above that figure. There are literally dozens that can be bought which are producing in the region of 12%. (If you want me to send you details of these deals then all you have to do is subscribe to my Big Pension Bulletin. You can do that here.)

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I also note that people are starting to buy back into Europe because of the fall in the value of the euro. I'm not joining the rush. I'm waiting for better times. They will come and I can wait.

It was interesting to note that in a recent pole by UKForex 55% considered buying abroad to be risky. Well, it is. There is the currency situation. Just because the euro has tumbled doesn't mean it is a good buy. It may well tumble some more. The eurozone may even suffer some defections which will seriously undermine its value. Why take a currency risk when you dont have to? Buy British, say I. At 12% ROI and better, what's the problem?

Let me do the maths again for those of you who still dont get it.

Buy a property in the UK for £200,000. That brings you in £24,000 a year in a safe, hands-off investment. You can now rent a place anywhere you like for, say, £1,000 a month (or less of course). And you still have another £1,000 a month spending money. That in itself is a good pension isn't it?

I think I have shown pictures of my home in an earlier blog. It's a two bed apartment overlooking an estuary, with a quay at the bottom of the garden, and a lovely view of a small city at the end of the valley. I have a huge garden (several hectares) at my disposal. It costs me €400 a month with all services. That's about £330 at today's exchange rate. What the heck would you want to buy abroad for? It would be mathematical madness.

Political instability in the eurozone would apparently put off 50% of respondents. I'm not surprised. Plenty of that about.

Oddly, 10% of respondents said they'd pay for their place in the sun by putting cash in an envelope. Yikes! Those of you buying abroad are in odd company.

The Greek exit looks to be drawing closer. Now that is a different matter altogether. That does interest me.

On the other hand, Portugal gets worse and worse. Anyone buying there does need a reality check. I have decided to write a book about Portugal. I have most of it in my head, but I need a clear month to sit down and write without interruption. I'll get it done.

Oh yes, and for light relief, I wonder if you've seen the ad for a property in South East Asia. Apparently, the owner goes with the property, so you get a wife as well for your £50,000 purchase price, although you dont have to include her in the deal if you dont fancy her. Marketing ploys are clearly ramping up a notch or two.

Interesting times. The curse of our age.


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