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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Want more money
12% or more return
in safe investments
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Only £97 for twelve issues
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.
john