It’s been an extraordinary week in many respects.  We’ve had the Irish and Greek governments guaranteeing 100% of depositors’ cash in their banks (and others following suit yesterday), a $700 billion rescue package approved by both the US Senate and House of Representatives, a meeting of the “Big Four” of the EU and the return of The Prince of Darkness, Peter Mandelson to the UK’s cabinet.  Maybe in the latter case it will be third time lucky (for the benefit of our overseas readers, he has resigned twice from previous government appointments).

Yesterday, we witnessed the largest one day decline in the history of the FTSE 100, with the index of the UK’s leading shares falling by almost 8%.

Overnight the Reserve Bank of Australia (RBA) cut a full 100 basis points (1%) off its key cash rate to 6%, which was twice what the market expected.  This week the Bank of England will reduce base rates, possibly by up to 50 basis points.  Further, and in light of the announcements by the Irish and Greek governments, I never thought I would see the day when UK depositors would be looking to overseas governments to guarantee their savings.  But this day has now arrived.

Many readers have monies deposited in Greek-owned banks which clearly provides re-assurance - the very reason the Greek (and Irish) government acted in the way it did.  I do not think that the UK government would allow savers to lose cash if a high street bank failed, as it would immediately nationalise the institution, and Northern Rock and National Savings now look like safe homes for your cash.  I wouldn’t be surprised to see more UK government intervention very soon in the banking sector in an effort to shore up confidence and increase liquidity through re-capitalisation.  It is also inconceivable for other EU countries to provide cast iron guarantees for depositors and for the UK not to follow suit.

In the slower moving world of property...

Henry and Alun hosted two investor groups in Marrakech this week and we are now adding new dates for the remainder of the year as this investment strikes a very positive chord with our investors.  Property investors understand the difference between private pensions and investing in property.  Generally, private pensions do not survive the pensioner.  In other words, when you die, that is it and your pension dies with you.  A property investor on the other hand, can pass on his/her properties to partners, children, family etc.  The Marrakech deal we have put together fits the bill for a solid medium to long-term property pension investment and at the time of writing, demand for this investment exceeds our present supply.

If you wish to receive further details of this deal, then please fill in the form at:

I was invited to attend a property industry awards gala dinner on Friday in London which was extremely well organised and a fun time was had by all.  I see many of the same faces at similar events throughout the year and enjoy catching up with what is happening across the industry.  Many of the companies I spoke with are performing well at the moment as many individuals choose the security of overseas property investment in preference to the stock market or even to cash in the bank.  Negative media reports about the benefits of property investment have had only a positive impact on serious property investors.  Why, you may ask?

An interesting thought?

The newspapers inform me that my properties in the UK are now worth 12% less than a year ago.  So, in one example, a property I own is now “worth” only £185,000, down from a market valuation of around £210,000 a year ago.  I have “lost” £25,000 – a disaster, according to the press.

Well the reality is that I bought this property for £65,000 many years ago and it rents extremely well.  It’s a great investment, as are my other UK properties in the portfolio.  I personally see no sound alternative to property as a means to increase medium to long-term wealth.

This example explains why property investors understand that the market in the UK is presently positioning itself nicely for big opportunities and timing this right will bear substantial returns.  However, as I have stated before, now is not the time to act.