Colour Investments Property Investment

This is our second release this week. We have been working really hard to release this new products… I am personally very proud of offering this new scheme in exclusivity.

Our newest addition to the apart-hotel range comes with a renewable 10 year rent guarantee at 7% yield. Located on the shores of the Red Sea with its own private beach less than 5 minutes from Sharm El Sheikh international airport and with up to 8 weeks personal usage per year this is not only a great investment but also a fantastic holiday destination. With a diving and aqua sports centre onsite this resort offers easy access to a host of water sports and diving activities in one of the greatest diving locations in the world. For those who prefer dry land there are tennis and squash courts, a health club, gym, beauty salon and shopping arcade.
Located in Sharks Bay, the resort consists of 720 rooms, chalets and villas many with sea and pool views as it is on the seafront with its own 500m private sandy beach. It has Italian, Asian, sea-food and international a la Carte restaurants on-site. Two outdoor swimming pools with artificial waves and a temperature controlled indoor pool. The hotel also contains a convention centre with the capacity to facilitate for up to 1000 delegates.

to learn more… www.colourcapital.com/palmbay

We are releasing a new type of asset class from Colour Investments – our first apart-hotel investment opportunity.
We all know that we are currently in a buyer’s market in the UK where investors have the ability to negotiate terms, which we have not seen for years. Having said that we at Colour Investments feel there is significant value to diversification within your property portfolios, which is why we are introducing more and more investment opportunities this year both in terms of product location but also of asset class. The new apart hotels that we will be showing you represent a completely different proposition and will add a rather colourful feather to your portfolio’s bow!
This asset class is very low maintenance & low risk whilst maximising growth and income through guaranteed rentals

This is our latest French leaseback… and probably one of our personal favorite to date. This is a Zero stress investment with fully managed properties in the South of Paris 5% GUARANTEE FOR 11 YEARS

THE GOLF COURSE WAS DESIGNED BY JACK NICKLAUSS

Ideally overlooking a wonderfully designed by Marc Adam and Jack Nicklauss golf course, the development is within easy reach from the centre of Paris. Adjacent to an authentic 14th century castle that has recently completed an extensive renovation, the property will offer guests every luxury service.

WITH A PANORAMIC VIEW ON THE GOLF COURSE, ONE OF THE JEWELS OF THE FRENCH ROUTE…

It is a major new leaseback development that is to be constructed in the exceptional domain of Cely. The development offers a 10-year construction warranty. Also, as part of the leaseback scheme, your property will be fully maintained throughout the lease period by the management company, at their expense.

On the edge of the very famous Fontainebleau forest the Cély Golf & Country Club, is one of the most magnificent golf courses in France. Often welcoming the Women’s World Championships, the course surrounds a magnificent 14th Century castle.

In very simple terms we are very positive about the long term prospects of buying in the UK for investment purposes. The key is “strategy” and making sure you can ride out any slowdown in growth in the UK and still rent your property out meaning you can leave your asset to sit there and make you money over the next 10 years. We are currently in a “buyers market” in the UK and as buyers we are seeing some fantastic deals coming to the table from developers which we are now able to offer you.

Here are some of the main factors to look at when considering UK property as a long term investment at the moment, I have listed some positives and some negatives to give as informed view as possible so you can make your own minds up:

Positives:
• Supply vs Demand imbalance (50,000-80,000 homes shortfall per year and the situation is worsening)
• Increasing population & increasing number of immigrants from new EU nations
• Reducing unemployment & Increasing employment
• Shortage of building – reduced building in 2008 exemplified by the difficulty for developers to raise finance
• Land shortage especially in city center locations, most noticeable in London
• Planning back-log, time taken and costs for planning consent
• GDP remains a healthy 2% (3+% in London)
• Interest rates coming down - I predict another .25% drop by May time due to remarkable low inflation.
• Aspirations for owning a home coupled with massive overseas investment from the likes of UAE, Dubai, Russia e.t.c.
• HIPs (Home Information Packs) discourage people from moving causing supply shortage
• High stamp duty discourages people from moving causing supply shortage
• Lots of people buying a second home to live in and letting out their old home, causing further supply shortages
• Buy to let investors show no signs of slowing up and in fact are buying now more than ever in this buyers market
• Revised 18% capital gains tax down from 40% improves the incentive to purchase property for investors
• Rents rising by 10% per annum – rental property market remains firm so buy to let investors are enjoying low risk investments

Negatives:
• Price to earnings high at ca. 10 (long term average 6)
• Inflation remains an unknown quantity as interest rates could rise in the long term if oil prices increase dramatically
• Credit crunch reduces borrowing for people with poor credit rating effectively making the rich even richer
• Average wage earner finds it hard to borrow enough to buy a house
• Increase difficulty in getting mortgages and banks holding higher rates because of credit crunch

Most of the above bullet points that I have mentioned are some of the reasons why we don’t expect a “property crash”. A slow down in growth is certainly on the cards and apparent in some areas already in the UK, but as we are buyers acting for our investors we actually see this as an opportunity to get some great bargains this year as every other less sophisticated investors panic over what they read in the papers. There are no headlines like “Long term property investment is stable” that are going to sell newspapers, whereas “Property Crash” will sell millions of papers. So we also feel the frustrations that Gordon Brown has with the current media situation and feel they are partly to blame for the current market sentiment by all of the un-balanced headlines they keep printing. And as we all know people (sadly) believe things that they read.

The credit crunch will certainly make it harder for “sub prime”/less creditworthy buyers to enter the market as the mortgage companies are tightening up their criteria for lending. I think this is a good thing and could have come sooner as the banks have been lending to anyone and everyone. Going forward I think the mortgage products will start coming back to the market more and more this year albeit more cautiously and the long term effects on property will be minimal when we look back in 10 years time.

Concluding comments:

All of that being said we need to be diligent when investing at the moment by considering the best mortgage product and gearing situation as well as buying smart and BMV (Below Market Value) to gain an extra buffer to the market. We are looking forward to the remainder of 2008 and the types of deal we will be able to offer you as well as other excellent property investment opportunities overseas to give you some fantastic diversification to your property investment portfolios.

Nick Wallwork
- MD Colour Group

If you have any feedback, comments or suggestions, please email us on: blog@colourinvestments.com or give us a call on 08450 944 559.

Don’t forget to bookmark us and check back for regular updates:

http://www.investment-blog.com/