The prices of new properties in Turkey have been increasing steadily over the last 12 months and experts expect them to continue doing so in 2012.
According to the latest figures from the REIDIN New Home Price Index prices increased 0.78% in November and are now 9.88% up on November 2010. Trademarked projects in the European side of Istanbul increased 1.17% month on months while those on the Asian side were up 0.47%. The index also shows prices for existing homes increased 0.89% in Turkey overall, 0.93% in Adana, 0.55% in Ankara, 1.27% in Antalya, 1.08% in Istanbul and 1.14% in Izmir. Prices were stable in Kocaeli and decreased 0.11% in Bursa during December 2011. LINK - 5* Investment property in Akbuk from £49,000 fully SIPP approved. The UK's Governments Housing Strategy released on Monday has sparked much controversy this week and it certainly seems to have united the private rented sector, social landlords, the pensions sector and the construction industry.
The prospects of allowing UK property values to fall further and the impact on housing development is horrific, if developers do not build due to the costs of building exceeding sale prices then supply of housing will diminish at a time when our population is rapidly increasing. The result will be pent up demand leading to yet another boom and bust scenario, something that no person in their right mind really wants. Such factors could also lead to an even greater bubble in rents being charged, thus resulting in further social and economic issues in the future. Reducing supply of property in relation to demand may seem good for landlords in that rents will rise quickly and values will follow as soon as financing is more readily available, however, the cost to the infrastructure of the Country in terms of over-crowding in homes and homelessness could be catastrophic. What we need is balance between supply & demand, steady growth and confidence in the market. Please feel free to comment. Investment in Student accommodation in the UK – LINK Investment in commercial storage units in the UK - LINK Both the above investments are suitable investments to be placed into a SIPP (Self Invested Personal Pension) The aggregate shortfall of UK corporate pension schemes soared in
September and is now at its second-highest level, new industry data show, as falling markets and bond yields sharply reduced returns. The UK’s Pension Protection Fund – the safety net for underfunded pension schemes at insolvent employers – said the aggregate deficit of all schemes soared to£196.4bn at the end of last month, from £117.5bn at the end of August. It is not far off the record £208.6bn shortfall in March 2009, at the depth of the recession. The full article can be seen at - http://www.ft.com/cms/s/0/52c38e04-f426-11e0-bdea-00144feab49a.html#ixzz1aZau6uxW Time to take control of your PENSION transfer into a SIPP. - LINK SOARING inflation could plunge millions of pensioners into poverty as it cuts the real value of their funds by 60 per cent, worrying new figures reveal.
A typical pensioner on a fixed income will lose nearly £10,000 a year in spending power during the average 20-year retirement. At least nine in 10 people with a private pension opt for a fixed-rate income in retirement – which means around 15 million people are facing a savings crisis. Older people approaching retirement need to see their pension funds more than double over the 20 years after they finish work if they are to beat inflation, pensions giant Prudential has warned. Analysts said pensioners are the victims of what is known as the “Silver” rate of inflation, because they spend a higher proportion of their income than the rest of the population on price- busting food and fuel. Prudential’s figures show that the average person retiring this year expects an annual income of £16,600. If that income remains fixed, it will be worth a mere £6,700 in 20 years – effectively a £10,000 pay cut. Assuming that inflation remains at its current level of 4.4 per cent, pensioners will need an annual income of just over £40,000 if they expect to maintain their standard of living for 20 years. Ros Altmann, former government pensions adviser and director- general of the over-50s group Saga, said: “Older people are suffering higher levels of inflation than the country as a whole. “Since 2007, pensioner inflation has been nearly 20 per cent. Pensioners’ annuity income has lost around a fifth of its buying power in just four years. “Saga has been begging the Bank of England to take the plight of pensioners and savers into account. But our pleas have been ignored, as policy focuses on protecting borrowers and banks instead. “The result is that millions of pensioners are becoming poorer and poorer each month as prices soar. “Those not yet retired can keep working perhaps to try to protect themselves but those already retired on fixed annuities are in trouble.” When workers retire they use their retirement pots to buy an annuity, which guarantees a regular income. But pension experts say 90 per cent of annuities sold are “level” schemes because the types which rise with inflation are too expensive. Tim Gosden, head of product development for Legal & General’s annuity business, said: “The average UK pension pot is only around £32,000 which secures an annual income of £1,950 for a 65-year-old man based on current rates if the payments are not increasing. “However, if they were to opt for a pension that increases by three per cent a year, then the starting income drops to £1,410, a 28 per cent fall. “If full index linking is required the starting income drops to £1,173, a 40 per cent decrease. When faced with these figures, it comes as no surprise that many choose to have their cake now.” Research by Age UK recently found that Silver – or pensioner – inflation has averaged 4.6 per cent a year since January 2008 – while the average annual inflation recorded by the Retail Prices Index (RPI) over the same period is 3.1 per cent. Vince Smith Hughes, head of business development at Prudential, said: “Pensioners on a fixed income are particularly vulnerable when it comes to rising living costs. Our figures demonstrate the extent to which Silver RPI impacts on the spending power of those in retirement.” Joanne Segars, chief executive of the National Association of Pension Funds, said: “While getting an inflation-proofed annuity will be more expensive than a ‘no frills’ approach, it’s a decision that demands serious consideration. “The UK simply isn’t saving enough for its old age. Fourteen million people are set to retire on an income which they find inadequate.” Wednesday August 31 2011 by Sarah O’Grady Social Affairs Correspondent – Daily Express - full article - http://www.express.co.uk/posts/view/268253/Pension-values-to-fall-by-60 Take control of your pension invest via a SIPP - SIPP information page contact us for further details. |
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