Opinion and commentary on the real estate, occupational and financial markets.
We are currently tracking a number of UK retail investment opportunities which are not yet available in the market.
With lot sizes of up to £1.25 million each investment offers an initial income return in excess of 5.5% from a long-term lease to a strong UK retailer.
Gearing of up to 60% is immediately available, and we expect total returns to exceed 10% per annum over the next five to seven years.
If you are interested in investing, please give us a call on the usual numbers.
Only £5 m of additional consequential losses have paid out by banks under FCA's IRHP review.
The FCA has recently posted some interesting information about consequential loss claims under the FCA approved review.
The 8% interest rate set by the FCA was designed, in part to provide redress for lost opportunities. Any claim for additional consequential loss has therefore to exceed that 8% per annum to be worth pursuing.
So far 2,965 claims have been received by banks and 1,535 of those have been assessed; with only 11 having resulted in a payout of more than £100,000.
Claims are complicated to put together and need not just legal advice, but real estate and financial know-how to restate accounts, assess losses and formulate strategy.
At Recept we have the necessary skills, and experience to help clients judge the chances of success.
You can see the FCA analysis here:
This was first posted at ReceptConsult.blogspot.co.uk on 27th October 2014
The UK government today commenced a trial whereby landlords are required to undertake checks to ensure that potential tenants are not illegal immigrants. Any landlord failing to undertake the proper checks faces a fine of up to £3,000.
Thus, having failed to properly police illegal immigration at our national borders, politicians are making private citizens and companies responsible for the job instead.
Although some may argue that the private sector will do better than the UK Border Agency, is it reasonable to fine offenders for failing to do a job that the government has failed to do itself?
The rules would also "act as a new line of attack against unscrupulous landlords who exploit people by renting out overcrowded and unsafe accommodation" said Securities Minister James Brokenshire.
Am I alone in thinking that the unscrupulous and exploitive landlords referred to by Mr. Brokenshire are the very people who, having ignored existing legislation, will ignore this legislation also?
This was first posted at ReceptConsult.blogspot.co.uk on 1st December 2014
I have spent a good deal of time in recent months talking to potential investors and to intermediaries who have claimed to be able to introduce me to potential investors.
My investment proposal provides a secure income return from UK real estate, with growth prospects and shows annualised returns of c. 12% per annum. The portfolio will be modestly geared (below 40%) and there is a potential upside from asset management and yield shift in a sector which is currently overlooked by investors.
So, what have I learned?
It is nearly ten years since Warren Buffet, in his annual shareholder letter treated us to an essay on 'How to Mimimise Investment Returns'. The letter is still available at http://www.berkshirehathaway.com/letters/2005ltr.pdf
From my experience the majority of investors have not read Mr Buffet's letter. They are a long way from the actual source of their investment returns and are often caught in a web of the 'helpers'; 'broker-helpers; and 'manager-helpers' described in the letter.
The majority of these 'helpers' have a financial or banking background and discuss at length the importance of the asset management, regulatory oversight and the value add that their involvement brings. In reality many just help themselves to a slice of the returns, without adding any real value over and above making an introduction. In many cases even the introduction has proved worthless because their fees have fatally damaged the economics.
Few if any of them have experience of direct real estate investment markets and how to manage the lifecycle risks of acquiring, asset managing, financing and selling real estate.
The investors that I have spoken to directly, have universally acknowledged the sense of my investment case, but many still expect high levels of return and low levels of risk. In fact one investor was looking for secure income double digit returns with no entry risk and a guaranteed exit!
So, I will bypass the helpers and continue to focus my discussions directly with investors. If you are, or you know of, an investor or investors who would be attracted by a secure income investment with upside potential, then please get in contact.
