A new year, a new start, a new investment opportunity. Actually, here’s four! With the current economic uncertainty within the United Kingdom due to Brexit and other economic changes, some investors are shying away from investing. Brexit has been predicted to increase volatility in the U.K market, prolong the slowness of the housing market, and even cause volatility in the currency market. However, some industries still continue to thrive despite the instability, and some feed off the volatility allowing investors to benefit from a worst-case scenario. That being said, the profitable option in 2019 would be to consider investing in alternative products – here are our top four ways to successfully diversifying your investment portfolio in the coming year.

Invest in Care Homes

The Facts - UK Care Homes Investments

With the NHS and local authorities responsible for funding of 69% of care homes in the UK, the elderly’s medical needs have been put at risk. The needs and standards of services offered to the elder generations have been compromised as a result of the £2.45 billion deficit in the NHS Trust, in 2016. As a result, local authorities began to rely on privately owned care homes to fill the gap in care for those who qualify for financial support.

So where does your investment come in? A care home operator purchases an operational care home that is either already performing well or is in need of refurbishment. They will then sell individual units to investors on a sale-and-lease back model meaning investors retain full ownership of the property and reap the benefits of the property being fully managed by the operator. Further benefits include:

  • High yield with 8% – 10% return per annum
  • No running costs such as service charges, ground rent or management fees
  • Assured buy-back offers with capital growth after just three years of ownership
  • Stamp duty exempt
  • Hands-free investment (fully managed and operated)
  • No development risk, completed and operational care homes
  • Immediate income from an ethical investment
  • Regulated by the CQC in England and the CIW in Wales
  • Complete ownership of your investment, including registered title deeds on the UK land registry

 

Furnished Holiday Lets / Holiday Homes

Holiday Homes Tax Guide for 2019With the underperforming pension schemes, people are turning towards holiday homes as an alternative, in order to provide a more lucrative and assured means of extra income and saving. In 2017, the assessed spend on staycations in the United Kingdom was calculated to be around £23 billion, and this figure is constantly increasing. This proves that there is an existing and growing demand within the market for holiday homes, therefore creating an investment opportunity for investors globally.

Holiday homes are one of the investments that actually benefit from the repercussions Brexit is having on the economy as the depreciation of the GBP has made the United Kingdom an attractive holiday destination. Global economic turmoil and terrorism has caused British families to feel safer holidaying in the UK and additionally with the GBP’s power dropping the cost of holidaying abroad is always more expensive.

Investors have the opportunity to purchase furnished holiday lets. The classification given by the government as a Furnished Holiday Let (FHL) allows investors to make the most profitable return from their investment. In order to reap the benefits of a FHL classification the property needs to be advertised for 210 days per year but only needs to be occupied by the public for 106 of those days. This makes investing in holiday homes a great lifestyle investment. The following are the advantages of investing in a Holiday Home in the new year;

  • Growing market with an increasing demand
  • Excellent alternative for a pension-scheme
  • Tax deductible costs
  • Subject to tax relief
  • Small business rate council tax or none
  • Further tax benefits on holiday homes >

 

Gemstones

Invest in Gemstones HyLifeGold is viewed as the ultimate asset safe haven; it’s well known, highly traded and carries a strong legacy. However, gold is an investment often based on fear, when currency is shaky investors opt to invest in gold with the hope it will retain their funds better than currency. After the crash in 2008 gold has struggled to bring high returns making it an unadvisable investment option for investors looking for lucrative opportunities in the market.

Over the last years savvy investors have come across less mainstream gemstones that have proved to offer much higher returns. If we were to take rubies as an example, their value between 1990 and 2012 has increased by almost 300% – creating a high return opportunity for investors globally.

HyLife has partnered with London DE, the UK’s premier supplier of jewellery and precious gems. The opportunity offered by HyLife is seen as a safer option because, unlike investing in a single gemstone and profiting from the mere resale of it, the investment is in the business and not the stone directly. The benefit here being that the risk is spread across London DE’s full product portfolio and the returns are higher because of the markup accrued from the refinement process and resale as jewellery. Furthermore, investing in this opportunity allows for the resale to happen at any point of the refinement process – again spreading risk and increasing opportunity of higher returns.

The following are the investment highlights:

  • Most flexible loan note on the market, 3 month rolling contract
  • Regular monthly income payments, 0.83-1.25%
  • 10-15% per annum
  • Asset-backed
  • High quality certified gemstones

Forex

Invest in Foreign Exchange forexForeign exchange is the world’s largest and most liquid market with an average trading volume of over $5.4trillion daily. Open 24/5, this market allows people to trade currencies against each other in order to make a profit. Similarly to holiday homes, foreign exchange trading is benefiting from the current financial climate. The fluctuation and constantly changing environment is allowing investors to reap higher returns.

The Forex market used to be exclusive to hedge funds, governments and large international corporations. However, some years ago individual investors were given the opportunity to get involved too. The opportunity with HyLife is with a highly trusted UK based company with a unique trading style which minimises risk and boosts returns for investors. The investment is for a 12 month-duration with 24% fixed return per annum and therefore 2% is paid to the investor monthly. Some of the benefits of starting to invest in the foreign exchange markets are as follows;

  • High liquidity within the market
  • Immediate returns, returns paid monthly
  • Predictions within the market are calculated through fundamental or technical analysis due to the nature of trading
  • Downside protection, only 10% of investment is used to trade and deemed at risk throughout your investment term

Leave a Reply

Your email address will not be published. Required fields are marked *