Duplex
September 4, 2007, 10:24pm
#2
Who know getting into UK commercial property at this point in the cycle might be a good thing if we have a sharp slowdown or worse. But suggesting that there is much scope for rental or capital growth, as the funds advisors suggest, well that’s just flying in the face of conventional wisdom.
The warning from Hammerson comes just days after The Times revealed that property industry experts have pencilled in a significant risk of the City vacancy rates doubling next year if banks suddenly pull their requirements for new space in the face of falling profits.
It would, in turn, cause the last two years of soaring City rent rises to come to a halt or even trigger rent falls by 2009. Since then Macquarie, the Australian bank, has put its search for new City premises on hold.
business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article2386123.ece
London prices starting to decline.
economist.com/world/britain/displaystory.cfm?story_id=9688146
But the boom is now ending. On August 16th Stephen Hester, the chief executive of British Land, said he expected a fall in office prices. His firm, the biggest landlord in the City of London, is now one of the capital’s biggest sellers of property. CB Richard Ellis, a consultancy, has meanwhile warned its clients to expect the prices of offices, shops and factories to fall.
These guys are piling into the market
Brendan Investments Pan European Property plc will invest the monies subscribed by its shareholders, net of stated costs, in investment and development properties in European markets in Germany, Portugal, the
meanwhile,these guys are piling out
Eddie, Eddie, Eddie, what are ye doing?
brendaninvestments.ie/proper … reland.php
Apparently retail properties will continue to demand increasing rents even though the credit that has been driving it recently is starting to dry up.
Maybe we need to start a virtual game of “Go for broke” where we choose the worst investments and see who can lose all their money first!
fable
September 5, 2007, 8:33am
#5
Is this the same Ireland that I am living in? Or is it possible there’s another country by the same name somewhere else? One where the price of property hasn’t fallen every month this year.
robd
September 5, 2007, 9:27am
#7
Rabo actually sell Property Equity Funds that invest in companies like Eddie is setting up. They’d be a safer investment due to spreading of the risk across multiple companies rather than just 1.
See here:rabodirect.ie/investments/mu … _prop.aspx
The trend of the fund appears to be down which is prob a good indication of the trend Eddie’s company will take.
I wonder is this named after Brendan from AAM?
I wonder whether You and Your Money will recommend this…
Duplex
September 5, 2007, 12:29pm
#10
The German all property total return for 2006 was 1.3%. This return is actually the highest posted over the past three years and constitutes an increase of 80 basis points on 2005. Property under-performed the equity market for the fourth year running, which returned 22% in 2006 although property did out-perform the bond market, which returned 0.3%
Capital values continued to fall at the All Property level for the fifth consecutive year. In 2006 property values fell by 3.1%, whilst income return remained at 4.6%. The main driver behind the weak capital return was the rise in initial yields, which rose by 10 basis points to 6.1% in 2006. This growth was despite a fall in Euro-zone interest rates from 2% to 1.7% in 2006. Market rental value has remained negative over the past fourth years standing at -1.0% at the end of 2006.
ipdglobal.com/results/indices/germany/index_germany.asp
Mmmm might want to see how things pan out before considering Germany. So that’s the UK and Germany in the wait and see pile.
**Hobbs to head up new €1bn property investment fund
Mr Hobbs, who has repeatedly discouraged investment in Irish property, is hoping to raise up to €250m from Irish people for the fund.
The minimum investment is just €5,000, in a move designed to ensure that investment in the fund is not just confined to wealthy individuals.
**Investors in the fund, known as the Brendan Investments Pan European Property, will also be able to borrow additional money through National Irish Bank to bump up their investment in the fund.
**Interest-only loans will be available to those who qualify for them.
**Last night, personal investment experts criticised the €5,000 minimum investment, warning that this would open up what is a high-risk investment to a mass market.
**People need to be aware that the fund represented property speculation. People who borrow money in addition to the amount they are investing could end up owning more back than they invested, personal finance experts warned.
This was because if the fund did not perform they would lose their investment and still owe back the amount they had borrowed, plus the interest.
**Borrowing money on top of the sum invested is known as leveraging and is not usually recommended for small investors.
**But last night, one personal financial expert warned: “This is not for widows and orphans. It is not for someone who has €5,000. It is a high-risk investment.”
independent.ie/business/iris … 71326.html
Eddie wants not only your money but your borrowed money as well
geckko
September 6, 2007, 8:13am
#12
I can’t believe I read this correctly.
This bloke (Hobbs), is selling a 4x geared property fund and suggesting that people borrow to invest???
In the worst case (borrow €5,000 to invest) provides infinite gearing!!!
Even borrowing €2,500 to invest €5,000 gives you 8x gearing.
Now lt me get something straight. Isn’t he the supposed “consumers’ champion”? This would be a shocking abuse of his media manufactured trust.
Because I love conspiracy theories I’m going to say that someone bought Eddie to restore the confidence in the property market…Cause everybody loves Eddie. Don’t we. And we shall obey Eddie, our hero and financial saviour.
If you’ll excuse me, it’s time for my Prozac.
Gatelodge:
**Hobbs to head up new €1bn property investment fund
Mr Hobbs, who has repeatedly discouraged investment in Irish property, is hoping to raise up to €250m from Irish people for the fund.
The minimum investment is just €5,000, in a move designed to ensure that investment in the fund is not just confined to wealthy individuals.
**Investors in the fund, known as the Brendan Investments Pan European Property, will also be able to borrow additional money through National Irish Bank to bump up their investment in the fund.
**
Interest-only loans will be available to those who qualify for them.
**Last night, personal investment experts criticised the €5,000 minimum investment, warning that this would open up what is a high-risk investment to a mass market.
**People need to be aware that the fund represented property speculation. People who borrow money in addition to the amount they are investing could end up owning more back than they invested, personal finance experts warned.
This was because if the fund did not perform they would lose their investment and still owe back the amount they had borrowed, plus the interest.
**Borrowing money on top of the sum invested is known as leveraging and is not usually recommended for small investors.
**But last night, one personal financial expert warned: “This is not for widows and orphans. It is not for someone who has €5,000. It is a high-risk investment.”
independent.ie/business/iris … 71326.html
Eddie wants not only your money but your borrowed money as well
And your kids pocket money too by the looks of it.
He’s promising to quadruple your money.
He was on the radio yesterday saying that something like 80% of the monies would go toward shopping centres, offices in Germany, Poland etc, while the remainder would probably go towards apartment developments in Portugal, Spain and Bulgaria.
He also mentioned that the prospectus has 13 pages explaining risk, and that if you’re a saver and 4k is alot of money to you, then this scheme is not for you.
geckko
September 6, 2007, 9:22am
#16
Did he also tell listneers that they should take their intended investment, multiply by 4 and use that to assess their total property exposure in conjunction with any aother financial exposures?
Duplex
September 6, 2007, 2:11pm
#17
Foreign capital avoiding ‘higher risk’ Dublin
DUBLIN’S property market has fallen drastically out of favour with international investors and is now viewed as “riskier than most”.
Last year international investors ranked Dublin as their seventh favourite European property market; however, a new report shows this ranking has now tumbled to 20th.
The report, by the Urban Land Institute (ULI) and PricewaterhouseCoopers, billed Paris as the top destination for European property investment, followed by London, Stockholm and Munich. Dublin’s declining popularity “appears to correlate with the lack of foreign investment in the city over the last year”, the report noted.
“Capital flows are now dominated by domestic investors who may have different motivations and strategies than foreigners in the market. . . Recommendations are quite low for all property types, and the market is viewed as riskier than most.” The outlook for retail property was billed as particularly grim, with 44pc of investors putting ‘sell’ ratings on Irish retail, up from 25pc in 2006.
“Prime yields have come down to just 2.5pc and those recommending sell outweigh the buy proponents by nearly three to one,” the report noted.
In the office sector, investors gave Dublin the lowest ‘buy’ rating of all of the 27 cities in the survey.
independent.ie/business/irish/foreign-capital-avoiding-higher-risk-dublin-53506.html
So professional investors are bailing out in the UK, Germany and even Dublin
Borrowing money to invest in volatile instruments, sounds very September 1929 to me.
They were even pimping this on the RTÉ news
I can see this property fund going the same way as Eircom shares and endoment mortgages. I’m sure Eddie’s legal team though have all risk shifted firmly onto the saps who fall for this “investment”.
what’s Tony taylor pimpin’ this time.
I wonder if he’ll show up at the You 7 Yer Money EXPO at the RDS.
wtf. But who will buy these investment properties that are now so out of favor with the experts?. Who?