Brazil’s Slowdown - Should Brazil Property Investors Worry?

By Brett Tudor | Published: May 22, 2013

Brazil property Minha-Casa-Minha-VidaConcerns have been raised about the direction being taken by the Brazilian President Dilma Rousseff when it comes to the economy (Source: FT).

In light of this economic uncertainty, Colordarcy analysts suggest that Brazil property investors should weigh up any long term risks before investing.

Commenting on the recent article in the FT ‘Investors worry the Dilma model is unravelling in Brazil’), Loxley McKenzie, Managing Director of Colordarcy said, “Brazil has long been a favourite destination for Colordarcy clients – when it comes to property prices, Brazil is the fastest growing country in the world if we look at the latest Knight Frank Report with 13.7% growth nationally in 2012.

This news does bring some concern that the slowing economy may have an impact in the short term, however it is likely to be short-lived and could even have a beneficial cooling effect on the runaway growth we have seen in recent years.”

Colordarcy analysts explained that, looking at the GDP figures, Brazil’s economy has been on a downward trajectory since the new President took over. Exceptional GDP growth of 7.5% in 2010 has been followed by 2.7% in 2011 and 0.9% in 2012.

Yet despite the slowdown in economic growth in recent years, Brazil’s property market has moved in the opposite direction and has remained near the top of Knight Frank’s Global House Global House Price Index.

McKenzie added, “I would take news of Brazil’s economic slowdown with a heavy pinch of salt. The economy is predicted to grow by 3% again this year, which is far better than can be expected from most European countries.

Unemployment was also at its lowest level for 11 years at 5.7% in March. This is exceptional when compared to elsewhere in the world where many countries have struggled to bring their unemployment rate down.

As long as Brazil moves through this transitional period and maintains economic stability, I see no reason for investors to be worried about investing in property.

The World Cup is now close on the horizon and with the Olympics also coming to Rio in 2016 we should see a further boost to the country’s economy”.

Colordarcy is currently offering investors the chance to invest in a unique Brazil government backed social housing development with annual return on investment of 20%. Minha Casa Minha Vida or My House My Life as it is translated to in English is a Brazil social housing project designed provide low-cost housing for Brazilians who wish to own their own homes.

Full details on Brazil social housing can be found on Colordarcy.com.

Notes to the editor:

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Their aim is to provide their clients with properties that offer the unique combination of strong growth returns and cash flow positive income.

Investing in positive cash flow property significantly reduces the risk because the property will pay for itself regardless of market conditions, employment status or other financial commitments.

Colordarcy provides complete support before, during and after a sale, including finding tenants, financial assistance, viewing trips and currency services. Colordarcy are proud members of the ‘Association of International Property Professionals’ (AIPP), and abide by its code of conduct, one established to protect the buyer, by ensuring members follow professional guidelines and procedures.

Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

For more information, supporting pictures or logo artwork, please contact:

Brett Tudor
PR Manager

Tel: +44 (0) 207 100 2393
Email: press@colordarcy.com
Web: http://www.colordarcy.com/

Colordarcy Investment Ltd
35 New Broad Street
London
EC2M 1NH

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An Old Person Will Visit You One Day

By Brett Tudor | Published: May 20, 2013

Pensioner An old person will visit you one day.

This old pensioner will have lived a cautious life right up until retirement. Unfortunately that life was lived in a time of great upheaval in the global economy.

Yet even when it was clear that standing still was not an option, this old person never took a risk.

The pensioner visiting you no longer has enough money because all those stories about economies that would never recover. They made some investments look too risky.

This pensioner took notice of all the headlines about the next Great Depression. It scared them off investing overseas.  So they made a decision to play it safe at home rather than take a chance and invest their income.

The sad thing is, this pensioner believed those who said that the days when you could make money from property were gone.

So it was decided that putting money in a pension was the safest option. This was what most people did.

The pensioner put more away in an ISA because because at the time it felt like money would be safer locked away in the vaults of the bank.

The years went by, the clock kept on ticking.

Unfortunately that pension lost more than 50% of its value in those turbulent early years.

The ISA only paid a small amount of interest – not even enough to clear any debts because the interest on those was higher. So too was inflation as governments sought to inflate their way out of trouble.

As a result of all this, the unfortunate pensioner now visiting you only has £3,000 a year to live on. Not enough to pay for anything except maybe heating and food.

The pensioner said goodbye to the good life paid for by that income from employment a long time ago.

Nothing can change now because it is just too late to invest for this pensioner – time has run out.

Fear not. You can help this pensioner.

It will cost only a modest investment in an asset that will pay for itself. It will even give you the opportunity to spread your risk and help this poor old person live a more comfortable life.

There is still time to help this pensioner by not putting all your eggs in one basket and taking a risk here and there. Above all, however, helping this pensioner is in your best interests.

Because that pensioner is you.

Avoid a visit from this poor old pensioner in the future by investing in assets that generate a long-term income like property.

Kind regards

Brett Tudor
Property Expert

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Moody’s Upgrade Gives Added Security For Turkey Property Investors

By Brett Tudor | Published: May 20, 2013

Turkey propertyMoody’s upgrade of Turkey’s credit rating this month (Source: Moodys.com) should give some added security to investors who might be considering an investment in property in Turkey according to property investment firm, Colordarcy.

Ratings agency Moody’s gave Turkey a Baa3 rating (Source: Moodys.com) which provides an additional vote of confidence coming on the back of an upgrade from Fitch in November 2012. This according to investment analysts at Colordarcy should help calm any fears investors might have about investing in what still counts as an emerging economy.

This latest upgrade, however, means that Turkey is now much further on the road in its transformation from an emerging economy into a developed one.

Loxley McKenzie, Managing Director of Colordarcy said, “Turkey’s upgrade is great news and can only help Turkey’s rise to global prominence. Its fast growing economy, excellent management of the country’s finances and sensible approach has helped prolong the present cycle of growth in its property market.

If the economy stays in good health and there is no reason to believe otherwise following the upgrade from Moody’s, I expect property in Istanbul in particular to continue being one of the most exciting investments any buy-to-let investor can make.

According to Colordarcy analysts, the fact that Turkey conveniently located between the Middle East and Europe, explains why its economy has kept on growing even as Europe’s has continued to slide in the past 3 years. It can take the benefits of trade with both.

Turkey gains a lot from its close connection to the Middle East and it attracts a lot of investment from its more peaceful near neighbours in the Arab world.

Unfortunately it hasn’t been all good news for Turkey. The country may have picked up its upgrade from Moody’s sooner were it not for trouble on its southern border.

“The conflict in the country’s southeast has been a longstanding source of political uncertainty constraining Turkey’s creditworthiness,” Moody’s said in its Credit Outlook publication.

Syria’s civil war has been rumbling on since March 2011 with little sign of it reaching a conclusion. In fact things seem only to be getting worse.

There have been several incidents that have seen that country’s civil war spill over into Turkey. Syria is not a friendly neighbour.

When it comes to property investment, however, cities like Istanbul and the holiday resorts of the Black Sea, where most investors look for property are also several thousand miles away on the opposite side of the country and well away from any regional conflicts.

Moody’s said this investment grade would have been achieved much sooner had it not been for the conflicts that have been taking place on Turkey’s borders.

The unstable border it shares with Iraq and now Syria brings an unwelcome distraction from Turkey’s goal of joining the elite of the world’s major economies while the ongoing argument over Cyprus also makes it difficult to imagine Turkey joining the EU.

Notes to the editor:

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Their aim is to provide their clients with properties that offer the unique combination of strong growth returns and cash flow positive income.

Investing in positive cash flow property significantly reduces the risk because the property will pay for itself regardless of market conditions, employment status or other financial commitments.

Colordarcy provides complete support before, during and after a sale, including finding tenants, financial assistance, viewing trips and currency services. Colordarcy are proud members of the ‘Association of International Property Professionals’ (AIPP), and abide by its code of conduct, one established to protect the buyer, by ensuring members follow professional guidelines and procedures.

Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

For more information, supporting pictures or logo artwork, please contact:

Brett Tudor
PR Manager

Tel: +44 (0) 207 100 2393
Email: press@colordarcy.com
Web: http://www.colordarcy.com/

Colordarcy Investment Ltd
35 New Broad Street
London
EC2M 1NH

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Should Turkey Property Investors Worry About The Elephant In The Room?

By Brett Tudor | Published: May 17, 2013

Istanbul is the only city in Europe where it is worth investing in property, most investors would agree on this. Turkey also has the best performing economy and the fastest growing property market, few can argue with that.

Turkey was once, in the not too distant past, an unstable country plagued with political uncertainty that has since been transformed into thriving economic powerhouse that is now taken very seriously on the world stage.

Turkey is also conveniently located between the Middle East and Europe, which explains why its economy has kept on growing even as Europe’s has continued to slide in the past 3 years.

Turkey doesn’t need Europe as much as Europe needs it.

However there is one shadow on its border to the South East which nobody will ever mention on a property investment brochure or indeed anyone who might advise you on the long term potential of an investment in property in Turkey.

Turkey gains a lot from its close connection to the Middle East and it attracts a lot of investment from its more peaceful near neighbours in the Arab world. What it gains, however, is often put under threat by what I like to call the elephant in the room – conflict on its borders.

At the moment that great elephant is Syria.

Syria’s civil war has been rumbling on since March 2011 with little sign of it reaching a conclusion. In fact things seem only to be getting worse.

Turkey is no stranger to skirmishes with its neighbours, it also borders countries such as Iraq where it has a less than friendly relationship with that country’s Kurdish population.

Georgia, once a part of the USSR, was itself invaded by Russia fairly recently and shares a border to the east of Turkey – then there’s Iran.

While Turkey is on reasonably friendly terms with the latter two – Syria is different.

There have been several incidents that have seen that country’s civil war spill over into Turkey. Syria is not a friendly neighbour.

So what affect, if any, will this have on anyone considering an investment in Turkey property?

The chances are it will have very little directly.

Turkey is a major regional power with one of the world’s largest armed forces. Few countries are capable of posing any significant threat inside Turkey even if they had a reason to.

Cities like Istanbul and the holiday resorts of the Black Sea, where most investors look for property are also several thousand miles away on the opposite side of this vast country and well away from any regional conflicts.

Any spill over of the Syria war is likely to result in two things – a heightened state of alert across Turkey and a threat to its credit rating.

Moody’s have just raised Turkey’s long-term credit rating up a notch to Baa3 and now join Standard and Poors in awarding it an investment grade. Yet Moody’s said this investment grade would have been achieved much sooner were it not for the conflicts that have been taking place on Turkey’s borders.

The unstable border it shares with Iraq and now Syria brings an unwelcome distraction from Turkey’s goal of joining the elite of the world’s major economies while the ongoing argument over Cyprus also makes it difficult to imagine Turkey joining the EU.

Investment grades are important because the higher they are, the easier it is for banks to bring interest rates down and make it easier for its population to afford mortgages.

Turkey is big enough to absorb anything this elephant on its south eastern border can throw at it and at least for now the benefits of having the best of both worlds in Europe and the Middle East outweigh the disadvantages of sharing a border with the world’s most unstable country.

The question for property investors is, how much more could they have made and still make in the short term were it not for this great elephant weighing down on Turkey’s long term International ambitions?

Will the threat of instability put you off investing in Turkish property? Please leave your comments below:

Kind Regards

Brett Tudor
Property Expert

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Protect Your Money From European Recessions With The Oldest Asset Known To Man

By Brett Tudor | Published: May 16, 2013

Europe recessionI read in the paper this morning that France became the latest big European economy to slide back into recession this week as it took a third dip into negative territory.

Italy is still in its longest recession on record and even Germany, a country that has managed to stay out of a recession (just), posted a pitiful 0.1% GDP for the first quarter.

Recessions are generally bad news for property markets. They result in rising unemployment and, in the worst cases, bankruptcy, social unrest and all those other nasty things. With fewer people having the means to buy homes and the banks reluctant to lend money, property prices also begin to fall.

Recessions, however, are not bad news for property investors.

From the dawn of time we as human beings have sought shelter. Since we first emerged from the African plains we didn’t have much hair to protect us and travelling north to a Europe gripped by the Ice Age meant that shelter was just as important as that animal fur coat.

Back then it was caves, but the thing about property now is it offers us shelter both literally and metaphorically.

A house not only puts a roof over our heads, it can also put a protective roof over our money. When times are tough, as most of Europe is finding now, an investment in property will provide shelter from the worst a recession can throw at us – certainly in the longer term.

In simple terms recessions affect us all in two ways, they take money out of your pocket as earnings remain frozen and they take money from your bank account as savings interest rates fall.

The bank manager isn’t going to reward you for saving hard and preparing for the worst in a recession. No, the bank will actually lower the interest rate so that it can keep hold of more of your money.

At the same time that silent killer we call inflation will continue eroding the value of those savings and steadily reduce your spending power.

By investing that same money into property on the other hand, the value of that investment is protected because you have an asset. This asset may lose value in the short term – if we look at what has happened in the past 5 years that is certainly true in Europe.

Fortunately that value will always rise in the long term. This is because there will always be demand for that most basic of human needs – shelter.

The other great thing about property is that when we purchase it in a country where an economy is growing and property prices are rising, it is also possible to make yourself a profit even in the short term. In our growing market we often see spectacular capital growth, only without the strong rental market we see in the recessionary economy. When people don’t have the means to get finance or if they don’t earn enough, they rent.

Above all property gives you choices, take a long term view and invest now while property prices and interest rates are at historic lows, or look beyond Europe to countries like Turkey, Brazil or the booming state of Florida in the US for fast returns.

Either way, investing in property will allow you to get the best out of your hard earned money while others sit on the sidelines refusing to evolve with the times and fearing a European breakup or the US falling off the fiscal cliff.

What are your thoughts on investing in property in a recession? Please leave your comments below:

Kind regards

Brett Tudor
Property Expert

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The Shortcut To Making Money From Property

By Loxley McKenzie | Published: May 16, 2013

This short cut will work for you every time.

It works in almost any country in Europe.

It works in almost every city and state in the USA.

It will work in every stable democratic country in South America, Asia, The Middle East and Africa.

It works whether you are an experienced investor or a newcomer to the property business.

It will help you if you invest in a Miami town home or an apartment in Istanbul.

The short cut?

Take the long view and invest in property not for short-term gain but for the long term.

Work out how much income you need to cover your costs and the amount you need to make a profit.

This way you won’t waste any of your time on investments that don’t stack up.

Kind regards

Loxley McKenzie
Managing Director

Posted in Blog, Florida Property, Istanbul Property, Loxley's Blog | Leave a comment

Good News On UK Property Hides A Trap Door

By Brett Tudor | Published: May 15, 2013

UK Property For SaleRightmove released some worrying new research this week on tenants that paints a sobering picture of the UK property market. This latest research comes after some positive news from the Halifax on UK property prices and looks to have put the brakes on any illusions of things getting back to ‘normal’.

On the face of it the market looks as if it has picked itself up, much like an injured patient recovering from being on life-support and slowly hobbling towards some kind of meaningful recovery.

The annual change in UK house prices sounds good, a stagger towards 2% growth annually and a 1.1% rise between March and April. These numbers sound positive – at least until you take a closer look at some of the regional variations and realise that things are not as healthy as they should be.

The South West of the UK saw an annual fall of 3%; the East Midlands 2% and Yorkshire a 2.1% decline. London, meanwhile, saw prices rise 4.3% in the same period and Scotland a 9.3% rise albeit fizzling out in the last quarter – 0.1%. The traditional spring bounce has also yet to get started.

While the case for investing in London property is never in doubt, if we look at the UK as a whole, there is anything but a recovery underway no spring bounce and little hope for those wanting to take a step on the housing ladder.

Lying beneath the headline numbers are what Rightmove calls ‘trapped renters’ or those without the means to buy a home of their own. More than half of them (58%) have yet to start saving for a deposit.

This puts those renters around £30,000 short of the money they need to stand a chance of buying a home. Worse still, if the 3,214 tenants surveyed by Rightmove reflect the UK as a whole, they spend an average 37% of their income on rent.

This is up from the 21% and 26% of their income just two years ago in 2011 – the maximum level at which rent becomes unaffordable is 30%.

Tenants are already struggling to meet payments, yet rents are 4% higher on average in England and Wales, while unpaid rent and arrears have risen from 7.4% in February to 8.5% in March. This hints at a tipping point being reached.

Normally at these levels property becomes more attractive to buy rather than rent, however even though property prices remain relatively static or falling outside London, people are reluctant or unable to save the money it takes to raise a deposit.

This is blamed either on a lack of confidence to invest or wage growth which has been sluggish at best in the past five years. The banks have also tightened up on lending recently adding further hurdles.

Headline figures reported by the Halifax and the Nationwide do a very good job of covering the real state of the UK property market, however with all the foundations of a healthy housing market missing such as availability of finance, wage growth and demand, it will be some time before we see property in the UK as the sound investment it once was.

What are your thoughts on the UK property market? Please leave your comments below:

Kind regards

Brett Tudor
Property Expert

Posted in Blog, UK property | Leave a comment

Time Running Out For Overseas Property Investors Who Fail To Declare

By Brett Tudor | Published: May 15, 2013

Tax deadline on overseas propertyOverseas property investment firm, Colordarcy remind UK property investors that they now have less than 3 months to declare the income they make from investment in holiday homes in the UK and abroad.

Property tax experts at Colordarcy highlight that UK property investors could be met with a nasty shock when they open their brown envelope and find they have left it too late to declare any profits made from second homes and overseas investment property.

The HMRC have made it known that they are likely to be taking a very keen interest in people who invest in a second home or who use the property as an investment – whether that property happens to be in the UK or overseas.

Loxley McKenzie Managing Director of Colordarcy commented, “The HMRC will be looking at homes that are either rented out or used as a holiday home and even property that is left to a relative or friend as a gift.

Fortunately the HMRC is giving property investors the opportunity to escape the full punishment they are planning to dish out as long as any income is declared by the 9th August deadline.”

Unfortunately for those investors who haven’t kept their finances up-to-date so far, this property tax amnesty might still mean they are asked pay a lower penalty. This will be much less than the penalty that may await those who miss the September 6th payment deadline.

McKenzie added, “If property owners hold up their hands and decide to pay now rather than risk getting caught, they will just need to pay any tax due, plus interest and a penalty of 20% of the tax on top.

If the property owner is caught later, there could be a much harsher penalty of up to 100% to pay and, if a lot of money is involved, a criminal prosecution.

Colordarcy advises investors that if they would like to find out more about tax on overseas property investment or if they are confused about potential tax liabilities, their experts will be happy to provide advice on how tax rules apply in different countries.

Alternatively it is also worth visiting the HMRC website to keep up-to-date with any changes to tax on property investments in the UK and abroad.

Notes to the editor:

Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Their aim is to provide their clients with properties that offer the unique combination of strong growth returns and cash flow positive income.

Investing in positive cash flow property significantly reduces the risk because the property will pay for itself regardless of market conditions, employment status or other financial commitments.

Colordarcy provides complete support before, during and after a sale, including finding tenants, financial assistance, viewing trips and currency services. Colordarcy are proud members of the ‘Association of International Property Professionals’ (AIPP), and abide by its code of conduct, one established to protect the buyer, by ensuring members follow professional guidelines and procedures.

Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

For more information, supporting pictures or logo artwork, please contact:

Brett Tudor
PR Manager

Tel: +44 (0) 207 100 2393
Email: press@colordarcy.com
Web: http://www.colordarcy.com/

Colordarcy Investment Ltd
35 New Broad Street
London
EC2M 1NH

Posted in Press Releases | Leave a comment

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