"If things go wrong (and they can), then a property-backed Isa at least means that there is a tangible asset that can be sold to recover your money,” says Frazer Fearnhead, chief executive and founder of property peer-to-peer lending platform, The House Crowd. “While it’s not a guarantee, it does mean that the secured property would have to suffer a significant fall in value before any of your capital was lost.” Ultimately, having your investment secured against a physical asset gives investors significant downside protection. An Innovative Finance Isa, or IFISA, can be an attractive alternative for investors who want their Isa money to work harder than cash, and who would prefer to avoid the turbulence of the stock market. And the IFISA makes it really easy to invest in the property market. Property is an asset most people understand – it certainly doesn’t feel as elusive as stocks and shares. Houses are something that we draw when we are children, … [Read more...] about How savers can use an Innovative Finance Isa to reap the rewards from the property market
Refinance for investment property
By Jacky Wong The Wall Street Journal Fri., Dec. 14, 2018 Bigger is better, at least for Chinese property developers. That isn’t exactly a surprise, but a notice from the country’s economic policy planner posted Wednesday has reaffirmed this view. The National Development and Reform Commission said it would support “high quality” private companies to tap the enterprise bond market, a type of corporate bond typically issued by state-owned entities. While the notice isn’t focused on a single industry, the inclusion of the real-estate sector among those encouraged to issue more bonds has sparked hopes that more easing is coming for the already highly indebted developers. Property and construction stocks rallied Thursday before giving up some of those gains Friday. But what is considered “high quality”? Big, it seems. Developers must have more than 160 billion yuan ($23.2 billion U.S.) of assets with revenue higher than 30 billion … [Read more...] about Beijing’s answer to property sector debt is to keep on borrowing
By Brittany De Lea Published December 13, 2018 U.S. Economy FOXBusiness Facebook Twitter Comments Print video US new home sales tumble in October Tri Pointe Group CEO Doug Bauer discusses how new home sales have tumbled in October and the Federal Reserve’s interest rate hikes. While the housing market was a centerpiece of the 2008 financial crisis, its stagnant recovery could actually save it from a downturn in another potential recession. Continue Reading Below “Because of the fact that it has been underperforming during the economic recovery, there is less room to go down,” Lawrence Yun, chief economist at the National Association of Realtors, told FOX Business. “I think the housing market would not see any big negative hit if there was an economic recession.” Yun said in the event of a recession, interest rates are likely to decline, while the Federal Reserve could halt rate increases and even cut some … [Read more...] about Housing: The new recession-proof investment?
By Jacky Wong The Wall Street Journal Mon., Nov. 19, 2018 Chinese offshore junk bonds have been in free fall lately. The country’s property developers, their largest issuers, are at the heart of the problem. The big jump in dollar-denominated Chinese bond yields was sparked after China Evergrande, the country’s biggest developer, issued $1.8 billion (U.S.) of new bonds late last month with eye-watering coupons of up to 13.75%—much higher than it has had to pay previously for debt of similar maturities. Several other Chinese developers have since issued dollar bonds with coupons at around 10% or higher, including Agile Group and KWG Group. Evergrande said Monday it would issue more two-year bonds on the same terms, although it didn’t specify how much. While the recent jump in dollar debt yields has been dramatic, they have been on an upward trend all year, partly in response to rising U.S. interest rates. Developers, though, face little choice … [Read more...] about Chinese property bonds are now a big bet on Beijing
By Ilyce Glink and Samuel J. Tamkin, Tribune Content Agency Published 5:00 am CDT, Friday, October 12, 2018 Q: I was offered a mortgage "recast" and I need help evaluating if it is a sound financial move. My home is worth $250,000. I owe about $68,000, as I have been paying additional principal on the loan. My understanding is that when you do a recast of your mortgage, the lender simply takes the existing balance and adjusts it to the current amortization schedule. The appeal of having my current monthly payment lowered is attractive in case of a job change or if something happens and I suddenly earn less. I would still pay additional principal and pay off the loan sooner but would have the peace of mind knowing I only owed a lower payment each month. How do I measure the difference between my payment now and what it would be after a recast in terms of interest paid? All of the online calculators require a lump sum payment to the principal upfront, so I'm not sure I'm … [Read more...] about How to achieve a ‘home run refinance’