Commercial property fund sales could suffer as investors see commercial and residential property as linked, says an expert from Scottish Widows Investment Partnership.Swip property research manager Stewart Cowe says his research shows that there is a correlation between the capital growth of commercial property funds and the capital growth of residential property. House prices rise when investors are confident about their own financial and economic outlook, and since this happens when the economy is doing well, this tends to coincide with the growth of commercial property funds. When confidence is falling, the reverse is true, says Cowe. As residential property slows down, Cowe predicts a simultaneous slowing in the returns from commercial property and says investors are going to be more reluct-ant to put their money into any kind of property. Cowe says: “We still anticipate returns of 7.5 per cent over the next five years on commercial property but it still costs a lot of money to get into the market and we think it is starting to slow down. “The bad news for advisers trying to sell commercial property is that the residential property market is flat at the moment and correlating that to commercial property shows it is not going to be great either.” Jamieson Financial Management principal Bruce Jamieson says: “I tell my clients they are different and many of them still see commercial property as a smart investment.”
Last week, Gordon Brown announced that the current economic cycle did not start in 1999-2000, as he had originally told us, but in 1997-98.
Seven out of 10 parents are opting for a cash-based child trust fund account, says the Building Societies Association. Of the 50,000 CTF accounts that were opened during June, 31,000 were cash as opposed to the stakeholder option. Of the 270,000 CTF accounts that have been opened to date, over 70 per cent of these […]
Richard Jacobs Pensions & Trustee Services is devising a training course to assist lawyers in completing the new-look pension questionnaire for divorcing couples. From October, divorcing couples will face new disclosure paperwork surrounding their finances. The courts will be able to order respondents to provide a four-page summary of their pension benefits. This includes a […]
Guaranteed Investment Bond
By Simon Halifax, senior marketing consultant For a few years now, mortgage advisers have probably been warning their clients that there’s only one direction that the interest rate is going and that’s up (well, I know mine has!). However, the financial landscape changed when the UK voted to leave the European Union last month and […]
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AJ Bell has won a case against a client who wanted his platform fees for the past 14 years reduced. A client, referred to as Mr N, complained to the Pensions Ombudsman that, because he did not have enough information about what fees would be payable, he sold a property holding in his Sipp far […]
National advice firm Foster Denovo has acquired employee benefits consultancy TEBC. The deal brings over 100 corporate client relationships, and Foster Denovo will look to build TEBC’s staff into its own employee benefits division, Secondsight. Foster Denovo says the deal is the first in an acquisition strategy it will be pursuing. Chief executive Roger Brosch […]