Brexit: An Opportunity Or A Threat?

A survey has revealed that investors are much more likely to see Brexit as an opportunity rather than a threat, in spite of factors like rising inflation.

Half of those surveyed said they considered the changing relationship between the UK and Europe to be an opportunity. Some shared the surprise and concern that dominated in the UK; in France, the feeling was largely one of incredulity that the UK was ruining the European dream. For Germany, it was seen as an opportunity to promote Frankfurt as a commercial market, while many Asian buyers and investors saw a decline in sterling as an opportunity.

In over three decades in property, UK undergoes crises and economic upheaval, but markets, particularly London, soon recovered – and often thrived.

It was on the late 1980s, when institutional investment in UK real estate came of age, when the big commercial businesses experienced some of their fastest growth and overseas investment from the likes of Japan, Sweden, and the Middle East began.

In the early 1990s, George Soros ‘broke the Bank of England’. It was also a time of chronic overbuilding and, early in the decade, sky-high interest rates – a challenge for overextended property firms. Yet by the mid-1990s, investors, particularly German firms such as Deka and Commerzbank, were piling into London property.

Finally, In 2008 and into 2009, the commercial property market was on its knees.

Whether, when and how we leave the EU may have significant, long-term implications for the economy, but the impact on commercial property is likely to be short-lived. Despite the uncertainty, the macroeconomic fundamentals remain strong. The economy is still growing, with 0.4% GDP growth in the latest quarter and employment at its highest since records began.

The property market is healthy. A no-deal Brexit could disrupt the market and affect yields, but over a period of months, not years. The market will bounce back, just as it always has done. For those with the right perspective, that’s not a disaster; it’s a buying opportunity. Learn about bridging finance and how it can benefit you by reading about Richard Butler Creagh online here. Like the official Richard Butler Creagh on Facebook to keep up to date with the latest news in property and finance market.  Show your support online by following Richard Butler Creagh on Twitter here.

 

 

Advertisements

Uk House Prices Make Surprise 5.9% Rise In February

House prices rose by 5.9% in February – confounded many commentators, as it appears to contradict the widely held view that the UK’s property market remains in the grip of a slowdown.

Despite an escalation in Brexit confusion, property prices rose 3% percent last January, the latest Halifax index showed.

The Halifax said the 5.9% increase seen in February was thought to be the biggest it had ever recorded. It lifted the average property price to £236,800 – up from £223,629 at the end of January. That translates into a £470-a-day increase in value.

The big monthly rise lifted the annual rate of price growth to 2.8%, which the Halifax said was “fairly subdued” compared with 2015-16 when it was more than 8%. But with other surveys and official data mostly showing housing market, Halifax cautioned against reading too much into the strength of a single month’s figures.

Richard Butler-Creagh is the founder of Henley Finance. Learn more about how you can get the most out of a bridge financing by reading about Richard Butler Creagh online here.  Like the official page of  Richard Butler Creagh on Facebook here. Show your support online by following Richard Butler Creagh on Twitter here. Watch this video about Henly Finance and what they can offer you:

How long does it take to get a Bridging Loan?

Bridging loans can be arranged within a matter of hours with funds released within 72 hours although usually this takes a bit longer and can take a couple of weeks. While a bridging loan may be arranged much quicker than could be achieved through a traditional bank, most bridging finance companies still apply sensible and relatively conservative lending criteria. Usually, such lenders are smaller nimble operations and specialise in doing all of the usual checks that a bank will do but without the encumbrance of bank bureaucracy.

Every bridging loan that’s arranged has an exit strategy agreed with the lender – the means by which you’re going to repay it. You might be planning to sell the property after renovations are complete, arrange a long-term mortgage on it or sell another property to pay off the loan.

Interest rates are quoted per month. After the first month minimum, interest is calculated daily. For example, you take out a £100,000 bridging loan on 1st August at 0.75% monthly. If you repay it on 6th October you pay one month’s interest (£750) plus 6 days’ interest (£148) = £898 in interest. (Plus the loan set-up fees.)

Fees include the usual search fees and land registration fees, the lender’s valuation fee (which you need to pay) and both your legal fees and the lender’s (which you may be able to minimize by using the lender’s solicitor to do your own legal work as well). Then there’s the lender’s arrangement or facility fee of around 2% and your broker’s fee (which will be least of all the professional fees).

This is a very useful form of finance for the property.

If you’re looking for short term finance and are a property owner, a bridging loan could help. Contact Richard Butler Creagh to discover your options here. Connect with Richard Butler Creagh on Crunchbase and join our network. Follow Richard Butler Creagh on our official Twitter page for more advice on bridging loans.

Watch Richard Butler Creagh video here:

The Ultimate Guide to Bridging Loans

A bridging loan is a type of short-term finance that typically lasts for 12 months or less. It provides fast and flexible funding for all kinds of purposes and is used by individuals, investors, businesses and property developers

What are bridging loans used for? Bridging finance was traditionally used to ‘bridge’ gaps in property chains, but today it is more widely used. Homebuyers, property developers, landlords, investors, and self-build enthusiasts all use it to complete projects, including initial purchases.

How is a bridging loan different from a regular loan? For example, you can take a bridging loan out in multiple stages so that you only pay interest on the money that has been released to you, and if you prefer not to make monthly interest payments, there is also the option to retain your interest (and not just your fees) from.

A building, Refurbishment and Extension Projects. Bridging finance can also be used to fund building, refurbishment and extension projects.  For example on your property development, you can turn an existing commercial building into flats with the assistance of permitted development rights. For self-builds, you can create your ideal home or even a grand design. Lastly with extensions, with planning permission available you could create that perfect living space.

Financing Projects. Investors, businesses and entrepreneurs also take advantage of bridging loans to invest in projects overseas, purchase assets, increase business cash flow and make tax payments, such as income, capital gains, corporation, VAT and PAYE.

Richard Butler Creagh is the founder of bridging finance company Henley Finance, dedicated to helping property developer with fast loans. To find out more visit the Richard Butler Creagh website here. More advice on bridging loans can be found at Richard Butler Creagh Facebook here. Join Richard Butler Creagh professional network by on Linkedin page here.

Where is the Pound really heading to?

One of the biggest questions is everyone’s mind nowadays is where is the pound heading to.

One of the biggest questions is everyone’s mind nowadays is where is the pound heading to.  Does this mean things will definitely go down this route that I envision? Absolutely not. When it comes to economics, politics and foreign exchange rates (all closely tied) no one really knows what’s coming

What will make or break the pound?

The thing that will make the pound make, or break, is whether a Brexit agreement will be formed in the coming months, before the people, the EU, and the market will reach a definite conclusion that there is no agreement (i.e. a hard Brexit). Will any agreement of an orderly Brexit will bring back confidence to the pound? Probably not, but once an agreement has been reached, it is likely that the downslide of the pound will stop (but not sure going to recover its rates).

What are the chances of an agreement taking place?

The EU’s stances on the Brexit negotiation were very rigid right from the beginning, and it doesn’t seem, or at least not reflected back to the media, that these stances have changed over the course of the year. The EU is well aware of the fact a hard Brexit will be devastating to the British economy, and they will make the best out of the situation (which is ill-favored to them, to begin with, because the EU would have been better off with the UK). The disarray and fear rising in the UK will only refuel the flames, it is now more apparent than ever than that the EU will essentially decide on the state of the economy in the UK for the next 5-10 years at least.

Where should be pound be heading to in each scenario?

  • If a deal is made by October, it passes and regarded as a good deal for the British economy, the Sterling may jump 5-7% back to the 1.20’s (against the Euro).
  • If a deal is made by October, passes but it is seen as the kind of deal that May was forced into complying with and is not favorable enough with the economy, we are seeing the 1.15-1.18 range as fit (pretty much where it’s been at over the past few months).
  • If a deal is made by October, but PM May is unable to pass it, it signals a “no-deal” and pound will shift below 1.10 against the Euro and may reach parity by year’s end.
  • If no deal is made by October, it signals a “no-deal” and pound will shift below 1.10 against the Euro and may reach parity by year’s end.

Out of these scenarios, there is almost no upside to the pound. Only if the best scene takes place we will be experiencing 5-7% increase, but in every other situation, the GBPEUR will either stay where it is now or decline. Hence, if you are considering exchanging your GBP to EUR and waiting for the “rates to improve”, we think it’s unrealistic. Better to pull the trigger now than to expect big hopes from a nation that voted “leave”.

If you are a business in need of finance, then you can consult Richard Butler Creagh at Henley Finance. Connect with Richard Butler Creagh on his Linkedin page here if you want financial support for your business. More advice on bridging loans can be found at Richard Butler Creagh Facebook here

Costing the country: Britain’s finance curse

‘Finance curse’ sucks talent and investment from other industries, costing £67,500 per person over the course of two decades, say, researchers.

‘Finance curse’ sucks talent and investment from other industries, costing £67,500 per person over the course of two decades, say, researchers.

The UK has lost out on a “staggering” £4.5 trillion over the course of two decades because of an oversized financial sector, a new study has found. The “gravitational pull” of the City of London has damaged economic growth by sucking talent and investment from other productive uses such as manufacturing and research while inflating asset prices, particularly property, a paper from The Sheffield Political Economy Research Institute concluded. Between 1995 and 2015 this “finance curse” has lowered cumulative GDP by 14 percent compared to what it would have been with a leaner financial services sector, the researchers found.

Between 1995 and 2015 this “finance curse” has lowered cumulative GDP by 14 percent. They drew on previous academic studies from economists at the International Monetary Fund among others, who observed that as the level of credit to the private sector increases it generally boosts the economy as funds are allocated to people and businesses that need it.

According to the new research, the UK, which has a very large financial sector, has foregone a “staggering” £4.5 trillion of economic growth – equivalent to two and a half years of GDP or £67,500 per person.The researchers concede that the results are approximate and that further work is needed to confirm the size of this effect in the UK and its causes. Meanwhile, financial services firms reaped an estimated £400bn in excess profits.

These booming profits and salaries pushed up the relative value of the UK’s currency, making manufactured goods and agricultural products more expensive to overseas buyers. Because the price of those goods is set internationally some businesses in those sectors have become less competitive or even unviable. There are many different financing options available to real estate investors. If you are a business in need of finance, then you can consult Richard Butler Creagh at Henley Finance. Follow Richard Butler Creagh on Twitter and connect with Richard Butler Creagh on his Linkedin page here.

The Most Painless Approach to Securing a Bridging Loan

bridge-financing.jpg

Bridging loans are fast becoming mainstream these days. What used to be considered a niche loan is gaining more popularity in recent years thanks to the fact that more people have come to realise all the many benefits that it can bring about especially if they are involved in property investments.

Bridging loans are considered to be short-term solutions for financing problems. It is possible to take this loan to finance a property purchase especially if the goal is to get proper financial cover for the period prior to a mortgage that is meant to get paid off for the long term.  Some people might get scared at the idea of having to take out a loan that needs to be paid within a period of twelve months only, especially one that is meant to pay for a property purchase. However, this should not scare people off especially since this means is that you are only taking a loan that would normally not be available if you are going to take advantage of it through traditional lending channels.

Consumers are especially interested in this type of loan due to how it allows them to secure a new house even before they can complete the sale of their old property. It is also quite common to use this type of loan today in order to win a bidding war. There are property owners that take advantage of property auctions as it allows them to secure a property fast and often, at a very competitive rate too. However, properties bought from an auction need to get the entire purchase completed within a short period of time. Since it is usually impossible for buyers to have pockets enough to pay for the costs, they take advantage of a loan.

Still, getting financing through traditional means would require a long time. Property auctions require the amount to be paid within 28 days only. This is where people turn to bridging finance to get the funds that they need. Bridging loans are a lot faster to process and the requirements tend to be less challenging when compared to what traditional lenders require.

When applying be aware that the industry has essentially skyrocketed over the years, thanks to the increase in the instances of auction house buys. This means that due diligence is needed in order for you to find the right lender. Not every single one of them is going to be the same so it is up to you to find one that is credible, reliable, and trustworthy at the same time.

The best and fastest way for a bridging loan to get approved is to make sure that you have some sort of security to use as a leverage for the loan. Your credit history can also factor in on whether your loan is going to be approved fast or not. A good credit history would mean faster approval. So, keeping a good financial record can truly benefit you in the process. Do compare your choices before you make a choice.

Watch the video below to learn more.

Learn more about how you can get your bridging loan application approved faster by reading about Richard Butler Creagh online. You can also checkout Richard Butler Creagh Visual CV here.