Sep
27
2011
Which way now?
Good morning,
Savings are set to collapse?
A london trader was interviewed yesterday on the BBC News channel, and tells it like it is (in his view).
Watch it here : http://www.youtube.com/watch?v=lqN3amj6AcE&feature=feedf
Our take:
We have been saying this for the longest time. We’re often asked about high-risk investment strategies: the biggest risk for regular savers and investors right now is to DO NOTHING. There is much more bad news to come for those relying excessively on the banks and (worse) the stock market. We love the phrase “keep calm and carry on”, but this is an occasion where it simply does not apply. Pension funds and savings alike are extremely vulnerable to collapse with no strong sense of a full recovery.
“The biggest risk people can take right now is not acting”. Get as much sound advice as you possibly can, and act on it. Smart investors are moving to tangible assests such as bricks and mortar, land, precious metals and gilts.
We saw this coming, took steps to protect our assets, formed our company to offer others one of the strongest and safest options there is: land and property. Don’t let the fact that we deal in luxury property cloud the fact that we’re there for the soundest of reasons, surviving and thriving in any economy.
At the end of the day it’s all opinion of course. We’ll know for sure in retrospect. This is uncharted territory (although the Great Depression comparison reasonably keeps coming up). But no market sentiment can remove the basic need for real assets in the world.
What’s your take?
Aug
25
2011
Sitting cosily in the office in Berkshire, the weather outside is frightening (to quote Dean Martin). So to cheer myself up, I had to post this for you and consider sunnier climes – and not a gale in sight by the way!
We don’t generally promote prizes here, but this is a bit special.
Buccament Bay 5* Luxury
We’ve teamed up with our good friends at Nirvana Spa to offer a free competition to win an “all inclusive” week for two at the 5* Buccament Bay Resort on the Caribbean island of St. Vincent, including all flights and transfers.
What’s not to like? You can enter right here:
http://www.nirvanaspa.co.uk/email/2011/buccament/index.html
(Best do it now, as the competition closes on the 31st August with the winner announced in September).
I was out there last December, and have to say this is one amazing resort. Tripadvisor tends to agree. Take a look what it says here:
Enjoy!
Graham.
Aug
24
2011
After much anticipation, and now that negotiations are complete, the location of the first of Harlequin Hotels & Resorts’ Boutique Hotels was publically revealed yesterday:
It is the former Allamanda Beach Hotel.
Allamanda Beach Hotel, Hastings, Barbados
Read about it here :
http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=19449
The hotel will be closed for approximately 6 months for an $11m facelift, re-opening in April 2012.
As an investor there myself, I’m delighted by the news. This hotel will be transformed into a true 5* destination, reinforcing Harlequin’s growing reputation for uncompromising excellence.
Aug
2
2011
Monday’s headline article in The Telegraph is not sensationalism, but adds to the many voices expressing everything from concern to outrage at the retirment prospects for millions of ordinary private-sector workers set to retire after the year 2020.
Medication time!
My take:
Lord McFall has rightly identified the crisis to come, but places too much weight on hidden charges and the idea that workers are simply not saving enough for their retirement. While these observations are undoubtedly true, they’re by no means the whole story:
What the report seemingly fails to identify is the question of the quality of the underlying funds on which which most private pensions are based. The current economic downturn cannot be solely blamed for lackluster performance of these funds which have, after all, struggled to keep up with inflation over the last couple of decades. Those of us in employer contribution pensions may continue to see their pension pots growing, but take away the employers’ gift and the true state of our pension funds are laid bare. When did you last check the value of your pension pot and do you know what that will give you at retirement age?
McFall’s observations try to look at what we can do within our power, but with the traditional pension system we are pretty much powerless. He suggests that we can throw more of our lifetime’s income at the problem or accept that we must work longer and take our retirement only when we physically can work no longer. Even instinctively, something about that “solution” seems unjust and defeatist, with more than a little panic thrown in.
It is only now that the coffee is in sight on the horizon, that we as a nation are starting to catch its aroma and to wake up.
What can be done?
It seems that proactive pension planning has to be the way forward. Pension experts will rightly extol the virtues of a diversified pension portfolio, and the best ones will offer a truly diverse range of alternative asset classes such as property, precious metals, land, biofuel and even fine wine funds. It can be done, and for most of us to enjoy a wealthy retirement, we’re going to have to stop relying on the state or our employer to provide our future.
One very constructive statement in the report is the idea of offering free investment advice funded by employers. If this were extended to offering true financial education to us all (so we think for ourselves), we stand a chance of reversing the downward pensions cycle. We are going to have to start thinking like investors, acting like investors and consequently gaining the rewards in our pensions that we both need and deserve.
Let us know what you think?
All the best,
Graham.
(This article represents personal opinion, and in no way should be treated as advice of a financial nature.)
May
16
2011
Eastern Europe - storms brewing?
According to the IMF, Europe’s debt crisis may spread to Eastern Europe.
“Contagion to the core area, and then onwards to emerging Europe, remains a downside risk,” according to the IMF’s latest economic report on Europe.
Investment opportunities are growing far more scarce here and as a consequence, it is imperative that property investors (private and commercial) look outside the region and towards growth markets for such opportunities.
Below is a video from Jim O’Neill regarding such growth markets. Jim O’Neill, of Goldman Sachs, is one of the most influential figures in the Square Mile. He is being characteristically evangelical about emerging markets and specifically highlights Brazil’s current economic status on the world stage and potential for investors.
As you may know, Goldman Sachs was the first investment bank to make substantial returns during the recession.
The 5-minute video is essential viewing for understanding the “next big thing.”
VIDEO: Jim O’Neill: It is Time to Re-define Emerging Markets
The next video is from the Bank of England. It is only for 1.5 minutes and it downgrades Britain’s economic growth.
VIDEO: Bank of England downgrades growth figures
Here at HighGround Property Investment we source solid and secure investments in strong emerging markets such as Brazil, as well as traditional world markets with a proven track record to make you money. Check out our portfolio under “investments” on the top menu.
May
5
2011
In these day of austerity and uncertainty, it is human nature for people to regress to what they feel comfortable doing. However, this is not necessarily the correct course of action.
According to the former US President John.F.Kennedy, “There are risks and costs to a program of action, but they are far less than the long-range risks and costs of comfortable inaction.” This brings me onto the subject of precious metals which are historically seen as a safe haven for investors particularly during a recessionary period. The demand for these increases as the chart in the link below demonstrates. The chart highlights the price of gold and silver from 1975 – 2007.
Price of gold and silver between 1975 – 2007.
The list of US recessions during this period includes:
- 1973 – 1975 – Quadrupling of oil prices.
- Early 1980s – Energy crisis which led to tightening monetary policy and therefore another recession.
- Early 1990s – Oil price shock and what I call a hangover of 1980’s growth.
- Early 2000s – Dot-com bubble.
- 2007 – 2009 – Subprime mortgage crisis and the collapse of the US housing market.
For further details, click on the link below:
Silver rose last Thursday to almost a peak of $50 an ounce, then to the biggest three-day fall in 28 years to $40 an ounce. A fear of a bubble forming in the silver markets was not entirely unfounded as prices grew 175% between August last year to Thursday last week. Traders obviously decided to take their profits.
What does all this mean to an investor? VOLATILITY. Precious metals, like shares, are subject to speculation and where there is speculation; there is a degree of uncertainty hence why prices soar. There will be a lot of winners from the precious metals market, at the same time, plenty of losers. It is all about exiting the opportunity at the right time.
With Brazil, a diverse range of industries are benefiting from the growth. The world’s largest private equity and asset management firms like KKR are expanding into Brazil to exploit the opportunities there.
FT – Equity Firms Expanding into Brazil
Abu Dhabi Investment in Brazil
This expansion demonstrates that the country is attractive to invest in. With a shortage of land and property to meet demand, opportunities to invest in these areas still remain strong. One of our colleagues flew to Natal recently, where HighGround Property Investment hold some of their current projects. Anecdotes of estate agent events selling out blocks of apartments, in one hour are becoming quite common place there. Natal is therefore an investor’s dream especially with demand growing steadily. There is less volatility compared to the activity witnessed recently with precious metals.
Silver loses shine in 20% tumble
Finally, on the subject of countries investing in Brazil, Latin America’s largest Coke bottler is building a $146 million plant to meet the surging demand for soft-drinks. The company’s soft-drink, water and flavoured- water volume increased 12% in Brazil, as the economy grew 7.5%.
This clearly demonstrates the strong consumer demand that Brazil is able to develop hence why it is an attractive country to invest in.
Mar
21
2011
Some interesting reading from the 12th annual Luxury Travel Expo, held recently in Las Vegas. See what’s new and what’s coming…
http://www.travelagentcentral.com/caribbean/caribbean-luxury-update
Buccament Bay has been mostly sold out since it’s soft launch last August.
Mar
11
2011
HighGround Property Investment has been shortlisted for an industry award by the Association of International Property Professionals (AIPP).
The award ceremony takes place today at the first day of the A Place in the Sun Exhibition, Earls Court, London.
As a company run “by investors, for investors”, our shortlist to the top three industry players for Most Transparent Marketing Campaign is a clear recognition of our ability to help property investors achieve their goals by thoroughly understanding their needs and concerns. We’ve been their ourselves and can navigate the way through what can be seen from the outside as a bewildering and sometimes fraught marketplace.
Feb
25
2011
Some excellent news for tourism on the Caribbean island of St. Vincent.
See the report here : http://www.discoversvg.com/index.php/en/component/content/article/78-general/472-st-vincents-new-international-airport-scheduled-to-open-early-2013
Our take:
The recent re-election of the St Vincentian goverement in December has confirmed the determination of the island to move from undiscovered and undervalued to become one of the showcase islands in the Caribbean for high-end tourism. The large institutional investors, seeing the opportunity, have formally agreed funding to build this much-needed airport. In fact this happened the day after the election!
The brand new 5* Buccament Bay resort will be one of the major benificaries of the new airport when increasing demand to visit the island is now met by a good supply of direct jumbo flights from North America and Europe. Currently, visitors are shuttled from St Lucia’s Hewanorra International Airport (soon, we understand to be joined by shuttles flights from Barbados at Grantley Adams International Airport). Buccament Bay’s operator are set to purchase a number of 50-seater planes to handle the growing demand while the Argyll airport is constructed.
Developing infrastructure is one of the keys to investing in emerging markets, and existing investors in St Vincent and Buccament Bay can breath another sign of relief and look forward to some very healthy returns in the coming months and years.
(For information about how to invest at Buccament Bay, call us on 0800 612 6601).
Feb
24
2011
No Pain, No Gain?
The property investment myth that we’re challenging here is something of an unspoken one: that the more effort, attention, and worry you put into running your portfolio the more successful you be.
On the face of it this sounds perfectly reasonable, the Puritan Work Ethic, if you will. But the less helpful flip-side is that if we’re not doing these things, we can actually feel guilty about making a profit from our rental income. Are we thinking as an investor or as someone who is self-employed (a worker) who expects “a day’s pay for a day’s work”? And does it matter? I believe it does, and can be the difference between success and failure as a property investor.
Here’s what I mean by Worker versus Investor mentality:
Worker mentality…
- The portfolio demands my time and resources daily
- I work for my money
The Investor mentality…
- Does thorough research and due diligence on the investment opportunity, plans an exit strategy and makes the investment.
- Keeps a periodic eye on the performance and takes corrective action if necessary.
- The hard work is still done, but as up-front research and planning to assess the risk and the potential reward.
- My money works for me.
Which of these do you favour and which mentality is closest to your current thinking about property? The answers will determine the type of property investment you gravitate towards.
There are property investments out there, accessable to most people, that fit the investor mentality. Those with a worker mentality often cannot see them or or often wrongly dismiss them as “too good to be true”. No pain no gain? Ask me for some pain-free examples…