Build Magazine June 2015

Build Magazine 5 Peter Kiely, the managing director at thriving North West property investment company, Harewood Associates, in Bolton, Lancashire, has delivered a strong supporting case for investing in property over a pension. This year’s budget has been and gone with varying response; on the one hand it is the best there ever was, but listening to others there is no help for anybody and we are all worse off. In this age of 24/7 news, we have all manner of opinions, from various sources that seek to justify their opinion with a vast array of facts and figures, some accurate, some so outrageously untrue they border upon the ridiculous. The first time buyer ISA appears to be a good idea and the changes to the way pension benefit can be passed onto partners and spouses is sensible and just. However, for those reaching pension age, there are alternative investment options to traditional methods of stocks, shares and ISAs, especially as a common thread for the majority of people is the frustration at the level of return offered through these more conventional investment options. A lot of these options can also end up being complicated financial structures where asset backed security, such as bricks and mortar, is much more widely understood. Property ventures also offer greater Construction of New English Homes at 8-Year High New homes are being built at an increased rate across Britain as the nation recovers from the impact of the 2008 economic crash which caused the loss of 250,000 construction jobs. Conveyanc- ing Marketing Services responded to the news. According to the government, housebuilding has been a key part of their economic plan over the past five years. They say that work began on 140,500 homes in the year to March – a 5 per cent rise from the previous year. More than 40,000 homes were started between January and March in 2015, equating to a 31 per cent increase to the last quarter of 2014. This is 136 per cent higher than six years ago, meaning that housing starts are at their peak since 2007. Housing Minister Brandon Lewis spoke about the importance of building new properties: “House- building is at the heart of our plan to ensure the recovery reaches all parts of our country. We’re turning around an industry that was devastated and getting the country building again. It is vital we maintain this momentum, getting workers back on sites and homes built - giving more people the chance to own their own home.” However, these figures do not tell the whole story according to Sharon Buthlay, a director at Conveyancing Marketing Services: “Whilst the housebuilding surge is good news to those waiting to buy a property it isn’t the entire answer to the problems the property industry and home buyers are facing. Not everyone wants to buy a brand new home and there is not always a nice, new- build estate where buyers need and want to buy. “The real problem is that second, third and fourth time buyers are trapped in homes that they can’t sell because they can’t afford to get onto the next rung of the property ladder. To buy a property, even with a hefty deposit, means borrowing thou- sands or hundreds of thousands in some cases and people’s earnings just aren’t enough to afford the astronomical monthly payments this entails. “Interest rates are low, so that’s not the problem but monthly affordability is. The Council for Mortgage Lenders (CLC) need to work with the Government to provide more imaginative mortgage products than the same old 25-year loan they have been peddling for the past 25 years. Mortgage terms need to be longer - paying back a mortgage over 40 or even 50 years rather than the industry standard 25 makes the monthly mortgage payment much more affordable, thus borrowers can borrow more and afford to move onwards and upwards to accommodate growing families and aspirations.” Conveyancing Marketing Services were estab- lished as an online conveyancing firm in 1995 and their qualified Property Lawyer has over 30 years of experience. Their solicitors are members of the Law Society and they offer a bespoke legal service for both estate agents and financial intermediaries. freedom within pension investment options, a crucial point. Unfortunately, times have seen the industry awash with the ‘upfront fee’ brigades, lining up in order to tempt consumers to part with their hard earned cash in return for, in their opinion, Midas touch assistance. To be trusted to invest someone’s mon- ey should be seen as a privilege and treating with honesty and integrity, putting the client and their interest first to maximise their returns. This should be the basis of any strong ethically aware business. There seems to be a real move towards property development investment occurring, as these are security and asset backed with an ever-increasing value in today’s housing market. It is, however, vital to research any property investment companies to ensure there is a strong set of accounts and testimonials present. Questions should be asked and having access to any legal agreements through the Land Registry is essential. Put simply, a fiduciary duty of care and a respect for client’s investment should be at the forefront of any investors mind. Harewood Associates managing director Peter Kiely offers his opinion on the lastest pension and investment opportunities.