Day: November 22, 2019

I have an increasing number of traders looking for the guarantee of high produces. Different traders have different criteria – some are seeking as high as 15%, which is difficult in Northampton unless you let large properties on a room by room basis. Most appears to regard 8-9% as a good yield – and it definitely is when you consider that the best savings accounts are currently paying around the 3% mark. Just how do you get the produce of 9%? More than not often, Landlords look to raise the lease.

This generates more money and squeezes out an increased yield. That is possible in today’s market – in the 6 years I’ve been a lettings agent, rental prices have been stronger never, but is it sustainable is another matter. What happens when local rental prices aren’t as strong? A good number of traders don’t worry about questions like this(!) and could find in the fullness of your time that their high yield investments aren’t as high yield as they think. I’d argue strongly that the ultimate way to get yourself something high produce is to concentrate on the purchase price you’re paying for the property, not the rental value. A landlord’s other fall back is the LHA market.

This actually makes property investment really simple. Stay within these price bands, and you’re assured a high yield. Properties in these price bands sell really quickly because of this – you’ll have seen some on this blog. They though are out … Read more

LONDON, Nov 16 (Reuters) – Efforts to get insurers to connect Europe’s investment distance by support riskier property could be undermined if banking institutions are unwilling to talk about essential credit data with them, a EU insurance regulator said. EU insurance capital rules known as Solvency II are being examined to make it easier for insurers to put their financial firepower to work in alternative investments, such as infrastructure, unlisted equity, or loans. These attract insurers struggling during a time of low rates of interest as they typically offer higher returns, but are usually liquid or less liquid, without deep market, thereby making them difficult to price.

This designed much could hinge on whether insurers can develop “partnerships” with banking institutions to touch the credit score data necessary for assessing risks, Jean Hilgers, a European Insurance and Occupational Pensions Authority (EIOPA) board member, said. But it is unclear from what level banks will discuss commercially sensitive data off their inner models, Hilgers, who is also a director at the National Bank or investment company of Belgium, said.

Hilgers told Reuters on Thursday. There’s also no benchmarks for measuring results from such investments, and how companies manage dangers will have to be “completely revisited”, phoning for specialist personnel, he said. Insurers would have to have clear “operational limits” for risk, with the panel associates and senior managers fully understanding the difficulty of some investments. Lewis Webber, head of insurance data analytics at the Bank of England’s Prudential Regulation Authority, told the … Read more