SPRING 2016 ISSUE 2 WWW.AVANTISWEALTH.COM

Budget winners and losersGeorge Osborne delivered his eighth budget, we look at the winners and losers! - pg 10

To Brexit or not to Brexit?The In Out EU Referendum looms

large on the horizon, we ask the big questions! - pg 5

Avoid 10 Costly Pension Mistakes!

It’s hard to go through life without making mistakes, see how you can

turn pension mistakes around! - pg 2

Isle of Wight Marina Investment OpportunityHome to the world famous Cowes Week, the Isle of Wight is the UK destination for the yachting fraternity! - pg 7

THE CLIENT MAGAZINE FROM AVANTIS WEALTH

How you voted:75%Strongly Agree orAgree

20%Neither Agree orDisagree

5%Disagree orStrongly Disagree

Quarter in 12 Words

• BREXIT WORRIES MARKETS

• TRUMP CLINTON CONSOLIDATE

• SYRIA CEASEFIRE AGREED

• BUDGET STATEMENT SURPRISES12HAVE YOUR SAY - RESULTS

Inside this issue:Investment Director Paul Beard shares his alternative viewPage 1

10 costly pension mistakes and how to avoid themPage 2, 3 & 4

To Brexit or not to Brexit that is the question - how will the UK reply? Page 5

This edition’s lifestyle feature looks at the world famous Cowes WeekPage 6

Waterfront marina investmentPage 7

Cape Verde 5 star resort investmentPage 8

Specialist care home investmentPage 9

Budget 2016. Who were the winners and losers? Page 10 & 11

How to profit from unexpected places Page 12 & 13

The Autumn statement delivered a nasty shock for some with hikes in stamp duty due to take effect in April this year. We asked if you agreed with the following statement:

“Changes to stamp duty for buy-to-let property is really bad news!”

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THEALT-VIEWINVESTMENTCOLUMN

Spring Forward, Markets Back?

With green shoots heralding the start of spring, the lighter evenings offer a stark

contrast to the gloomy outlook for the global economy. So why is the global mood so gloomy? Core to the problem is the seismic shift in three key global economic variables:

• China’s currency policy• Oil prices• US monetary stance

All have rattled investors both at home in the UK and around the globe. The triple whammy of China’s currency policy, oil prices and the US monetary stance poses a challenge to the world’s leading central banks. If the banks fail to restore confidence, the risks will grow of an extended period of below par growth and uncomfortably low inflation. This has the potential to form a toxic combination known to economists as secular stagnation.

Ironically each component part of the triple whammy can be interpreted positively. China is allowing market forces to play a greater role in determining the country’s exchange rate. Cheaper oil leaves Western consumers with more cash to spend.

And the fact that Federal Reserve policy is no longer on an emergency setting confirms the US economic recovery is now well established.

However, put the three changes together and they add up for investors to a world where the old certainties no longer apply. Hence the plummeting stock markets since the start of 2016. Of the three seismic changes the most worrying is China’s new currency regime because it is the least understood. The People’s Bank of China has done an exceptionally poor PR job of explaining its apparent abandonment of a decades-old dollar pegging system in favour of tracking their currency’s value against a basket of global currencies.

Markets hate uncertainty, so they can be forgiven for fearing that the China’s currency drop against the dollar since the start of 2016 (even though it has remained broadly steady against the new currency basket), as a bad omen to an even bigger depreciation. The suspicion that China might be ready to let its exchange rate fall plays into long-standing market fears that the Chinese economy is slowing more abruptly than the authorities acknowledge.

Against this gloomy backdrop, the outlook for the UK economy is likely to suffer further on uncertainty in the EU referendum where a Brexit looks to be a distinct possibility as the Out Campaign seems both more organised and motivated to sway how the nation votes. Elsewhere the prospects of a Trump win in the White House thwarting a Clinton in the process is ruffling feathers and adding to an already full basket of macro-economic gloom.

So where to invest?You might be one of the few who shifted from stocks and shares to cash during the second-half of 2015. Perhaps you’re a buy-to-let investor looking to rebalance with the looming tax changes threatening your profits. So where to invest? Against this gloomy backdrop any investment into traditional stocks and shares would at best seem foolhardy.

However, there are a select few niche property-backed investments that are non-correlated to the thrills and spills of the stock market. And it’s within this niche that Avantis Wealth was formed to help the beleaguered share investor. We are now also well placed to help the buy-to-let landlord looking to exit ‘hands-on’ property investment in favour of ‘hands-off’ property investment.

We use our unique F.R.E.S.H. Investment tool to choose the best of the best property-backed investments, that typical offer fixed rates of return between 6% to 12% p.a. These investments offer certainty with the powerful effect of compound returns over the uncertainly of highly volatile stock market returns.

So whether you are looking to make a new investment, looking at diversifying your existing portfolio or simply moving out of traditional buy-to-lets contact us. Find out how we can deliver consistent returns across a range of high performing opportunities available for cash, pension and ISA investment vehicles.

Paul Beard, Investment Director, Avantis Wealth

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10 costly pension mistakes millions of Britons make We all make mistakes

in life, and sadly all too often this includes mistakes made saving

towards your retirement. The key difference is that you could pay much more over a far greater period of time for a pension mistake!

Why? It’s said average life expectancy for women will rise from 83.3 years in 2012 to 87.6 years in 2030. For men, it is predicted to increase from 79.5 years to 85.7 years over the same period. More than ten million people can expect to live to see their 100th birthday. The younger you are today, the longer you’re expected to live, the more pension mistakes could cost you.

So what are the most common and costly pension mistakes?

1. Not saving enoughAlmost four in ten British adults don’t have a pension including 1.4 million who are within a decade of retiring.

While the new Auto-enrolment pensions continue to roll out to SMEs across the UK in a bid to make sure all eligible workers have a pension. How do you know if you’re saving enough even with the new schemes?

People need on average £23,457 a year to live comfortably when they retire. To achieve that annual income, savers would need a total fund of £469,140 from which they could draw down 5 per cent a year over 20 years.

People are saving on average £2,672 a year, which would build a total fund of £120,213 over a working lifetime of 45 years. That would provide them with an annual income of £6,011 by drawing down 5 per cent a year over 20 years. That’s a gap of nearly £18,000, which won’t be bridged by any State Pension entitlement! This is perhaps the most costly of the mistakes you can make. You can easily identify a gap in your retirement plan through a complimentary pension review. Request one now at: www.avantiswealth.com/pensions/pension-review

2. Delaying savingQuite simply, the longer you delay the more it costs you to build a good-sized pension. This is because of ‘compound interest’, which Albert Einstein called “the most powerful force in the universe”. How much could delaying cost you?

Let’s explore an example which illustrates the point. We have many clients with £100,000 or more in their pension fund, doing very badly, in fact often falling in value. These clients could easily have 25 years before retirement.

How would you react if we told you that one year’s delay in investing your £100,000, at a decent 10% annual return, would cost you £100,000 in lost revenue? We’re sure that most of you would say you’ve got it wrong. After all, a 10% return on £100,000 is £10,000 a year isn’t it. You’ve just used too many zeros.

Wish that it were so, but the calculation you’ve just done ignores what we call the eighth wonder of the world – compound interest.

The first part to understand is that if you invest a year later instead of 25 years for your investment to grow you only have 24 years and the one year you lose doesn’t come off the start of your investment – there is always a year 1, 2, 3 etc. It comes off the end of your investment – year 25.

The calculation goes like this. Invest £100,000 for 25 years at 10% pa return and you would have an investment fund of £1,083,000 after 25 years. We’ve ignored tax and assumed this is inside a pension scheme.

What happens if you reduce the timescale to 24 years? The total investment fund falls to £983,000.

By our calculation that’s a reduction of £100,000 – which is equal to your entire starting investment.

Knowing this information might make you hurry to get invested with performing assets. In this case it would cost you £8,333 every single month you delay in lost fund value. A very high price to pay for not getting ‘on it’ quickly!

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If you’d like to see what difference an investment producing 6% to 12% annually can make to your investment fund, get in touch with our friendly investment broker team.

3. Not checking your pension pot If you have a pension, have you ever reviewed it? Millions of people haven’t. Moreover, recent research revealed more than two in five adults (41%) - 8 million people - cannot remember how their pensions are invested! Why is that alarming? Performance can vary quite dramatically across investments and even a seemingly small difference could have a significant impact on the size of your pot.

A 35 year old with a £30,000 pension pot could have a fund worth £172,305 at 65 if his investments grew by 6% a year. His fund might be worth £301,880 at 65 if his investments grew by 8% a year, or £523,482 if they grew by 10% a year.

So if you’ve not reviewed your pension in the last 12 months – take advantage of our complimentary pension review service. You can request one by visiting our website at www.avantiswealth.com/pensions/pension-review

4. Not checking if you’re invested correctlyToo many people have placed their trust in traditional pension companies. Typically these companies have historically produced poor returns often with high fees.

Leaving how your pension is invested to the ‘experts’ in the pension company could cost you dearly, when you could easily achieve net annual returns in the range of 6% to 12%. Never underestimate the power of compound return in delivering the pension pot you need for a richer retirement.

At Avantis Wealth we specialise in helping or clients achieve these returns via their pension and also for ISAs and direct cash investments. If you’ve not paid any attention to your pension and in particular how it is currently invested, it is never too late to do something about it.

5. Ignoring chargesPension companies and investment professionals invest your contributions to make cash and you’ll probably pay them a long list of fees in return, including an annual management charge (AMC), exit or transfer fees and advice fees. These fees are often given as a percentage and at first glance can seem quite small. For example, an AMC of 1.5% on an investment of £1,000 would equate to just £15.

However, if you invested £1,000 a year for 20 years, assuming no growth, you would pay £253 in charges in year 20 - that’s nearly 25% of one year’s contributions being swallowed up by charges. Many workers don’t realise the extra hidden fees they pay for pension funds can erode the value of their retirement pot by as much as 40% - a staggering amount and a national scandal.

Many astute investors have found that by moving their pension arrangements into either a SIPP or a SSAS, not only gives them control over how their pension is invested. It also significantly reduces the charges they pay.

6. Relying on inheritance A quarter of Britons rely on inheritance to fund their retirement but many could find their plans are resting on shaky foundations. Why is that? Common sense highlights the first problem with inheritances:

you can’t be sure when you’ll benefit from the windfall. The way life expectancy is shaping up the older generations are likely to live well into their retirement years.

Moreover, the amount you end up inheriting may be far less than you expect. One in three women and one in five men aged 65 and over will need to go into a residential care home, according to PayingForCare, a report by healthcare specialists Laing & Buisson in 2013/14) depending on where in the UK you live, care homes can cost an average of: £28,500 per year for a residential care home, or £37,500 per year if nursing is required!

7. Not taking up employer contributions Companies, especially the large ones usually offer workplace pensions. In many cases, they also offer to pay money into your pension. The good news is that by 2018 all companies in the UK will have to offer a pension to their employees, through the new Auto-enrolment program. The bad news is that most private sector workers aren’t currently saving into a workplace pension. This means they could be missing out on “free money”.

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8. Opting out of your company pension schemeIf you opt out of your workplace pension scheme, you could miss out on thousands of pounds. This is because lots of companies match employee contributions so ignoring a company pension scheme effectively means saying no to free money.

While not all companies offer pensions, since October 2012, new regulations have come into force automatically enrolling workers in the UK aged over 22 into an employer pension scheme.So far, only those working for large and medium sized companies have been swept into a scheme, but all employees will be auto-enrolled by 2018. All employers will have to add to your contributions.

All workers do have the right to opt out of the pension scheme, but you will be automatically re-enrolled after three years or if you change employer.

9. Assuming the state will provide for youOne in five people who retired last year will rely entirely on the state pension for their income. This is worrying when you consider 83% of 25 to 54 year olds don’t know the value of their state pension and more than 30% overestimate how much they’ll get. For 2015/2016 the basic state pension will pay up to £155.65 a week. Would that be enough to fund the retirement you want?

10. Not using pensions to save tax Tax relief on pension contributions is one of those rare occasions when the taxman gives you something back. It cost the government £50 billion in just one year (2015/16). This is because under current rules when you pay money into a pension, the government effectively pays 20% of the total contribution (subject to maximum limits).

If you pay a higher rate of tax, the government could in effect contribute 40% or even 45% in total.

This means £20,000 in your pension could effectively cost you as little as £11,000. Although the value of any relief will depend on your individual circumstances and tax rules can change.

It was widely reported that the Chancellor was going to reform the tiered system, but with the EU referendum this year, shied away from it. Avantis Wealth and other industry commentators expect this is only a temporary reprieve.

Next Steps

Avantis Wealth offers complimentary pension reviews. Arrange your pension review now by completing the form at www.avantiswealth.com/pensions/pension-review and a member of our team will call you to arrange the review or call our team on +44 (0)1273 447 299

How many mistakes have you made?

No mistakes!Good for you the chances are your retirement plans are on track!

1 – 3 mistakesThere is some cause for concern here, if you’ve not reviewed your pension arrangements in the last year. You could benefit from a complimentary pension review. Request one now at:

www.avantiswealth.com/pensions/pension-review

4 or more While it’s never too late to improve your retirement income, you seriously need to review your pension arrangements. A complimentary pension review conducted by our preferred IFA will show you:

• The performance of your fund

• Costs and charges you are incurring

• The current value of your pension fund

• Your possible income on retirement if you make no changes

As a result you will be in an informed position to explore options and make good decisions about your future in retirement.

Request one now at: www.avantiswealth.com/pensions/pension-review

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To Brexit or not to Brexit: the big questions for Britain

After much trumpeting of negotiating a better deal for the UK in Europe by the Prime Minister, we now

get the opportunity to vote on it. Business has clearly already sided with the stay in camp, while leading political lights across all parties have declared for the out campaign.

If the opinion polls are to be believed, it’s too close to call hovering around 49 per cent out versus 51 per cent in. Though given how the pollsters got the last general election result so wrong, anything could happen!

Here are the big questions for the EU referendum:When will the EU referendum be held?

The date has been set for 23 June 2016.

What will the referendum ask?

The Conservatives recommended that the question should be: “Do you think that the United Kingdom should remain a member of the European Union?” However, the government bowed to pressure from the Electoral Commission after concerns that the phrasing of the question might be seen as biased towards those campaigning to remain a part of the union. The wording has since been changed to:

Should the UK remain a member of the EU or leave the EU?

Who can vote in the EU referendum?

Eligibility will be based on the criteria for voting in a general election, which means citizens of most EU countries (who can vote in local and European elections in Britain) will not be allowed to take part. Anyone over the age of 18 who falls into one of the following groups can cast a vote:

• British citizens resident in the UK

• British citizens resident overseas for less than 15 years

• Citizens of Ireland, Malta and Cyprus resident in the UK

• Commonwealth citizens resident in the UK

• Commonwealth citizens resident in Gibraltar

However, citizens of Jersey, Guernsey and the Isle of Man, which are not in the EU, will not take part. Members of the House of Lords will be allowed to vote, despite being ineligible to cast a ballot at general elections.

What would happen if the vote was held tomorrow?

The latest polls point to the contest being too close to call, with 49 per cent of voters supporting a Brexit and 51 per cent wanting to remain in the European Union.

Who is campaigning on either side?

Several In and Out groups have launched and both sides are campaigning hard. The main campaign trying to convince voters that the UK should remain in the EU is Britain Stronger in Europe led by the Tory peer and former M&S boss Lord Stuart Rose, with Boris Johnson now a leading light for the leave campaign.

Have your say!

We seek your views on the current hot topic of the EU referendum. Do you agree with the following statement?‘Staying in the EU will be good for the UK’

- Strongly Agree- Agree- Neither Agree or Disagree- Disagree- Strongly Disagree

Vote now at: http://bit.do/VOTEEU

We’ll publish the results in the next edition of Astute Investor.

1. Traditionally always held during the first week of August

Over the decades, this arrangement has only ever been changed on a few occasions. Back in 2012 the dates were shifted slightly so as not to clash with the Olympic Games.

2. International appeal

The Cowes Week Regatta attracts competitive teams from all corners of the globe; several teams over the years have travelled all the way from Australia!

3. Biggest and best

Cowes Week is the largest regatta of its kind in the world. It organises 40 races daily for over 1,000 boats and about 8,500 competitors. The biggest ever class was the Laser SB3s in 2007 with 98 boats!

4. A unique sailing spot

The Solent separates the Isle of Wight from the south coast of the UK mainland and provides a unique spot for recreational water sports. The complicated tidal patterns that are so characteristic of this area present even the most experienced crews with an exciting challenge.

5. Population boost

Over 100,000 visitors flock to Cowes Week Regatta each year in August, significantly boosting the local population for the duration of the event. When you consider that the population of the entire island is 140,000, you can just imagine the difference that makes to the numbers in Cowes itself! Outside of Cowes Week the island welcomes over 2.5 million holidaymakers each year.

6. Grand finale

For over 150 years now, a spectacular fireworks display has been held on the last Friday of the event. This longstanding tradition has become an integral part of Cowes Week, loved by visitors and locals alike. Every year the display seems to get bigger and better! The 2016 display will take place on Friday 12th August.

7. Local industry

The seaport towns of Cowes and East Cowes nearby have had strong links to the sea for both trade and travel for many centuries. The design and build of boats and sail making remains an integral feature of the local economy and it is here that the first ever hovercraft was tested!

8. Cowes Regatta inspired art

During the late 1920’s and the early 1930’s, the renowned French Fauvist painter Raoul Dufy frequently attended Cowes, where he loved to paint the races in his signature cheerful and optimistic style. One of his most celebrated pieces, entitled ‘Regatta at Cowes’, (painted in 1934), is displayed in the National Gallery of Art in Washington DC.

9. You are never too old to sail or too young to start

Back in 2011, a skipper by the name of Tom Tait raced in the XOD class at the age of 90 with his crew that included his 72 year old wife Carol, demonstrating that you are never too old to have fun and sail at the Cowes Week Regatta! The youngest skipper at Cowes Week racing last year was 13 year old Alex Downer.

10. Bicentenary ahoy!

The first Cowes Week race started on Thursday 10 August 1826, that’s 190 years ago!

For more information on Cowes Week visit www.cowes.co.uk and for an exciting investment opportunity well placed for the home of world sailing see next page!

Cowes Week Regatta - 10 Facts You May Not know!

Cowes Week is the place to be in August for anyone that loves sailing, whether a sailor or enthusiastic spectator. The Isle of Wight is the setting for one of the world’s most famous sporting events. Here are a few facts you may not know about Cowes and this popular sporting event:

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This is an exciting new opportunity to invest in a corporate bond offering an attractive 7% per annum over five years. The operator currently owns an operating marina which includes a

restaurant, shop, boat repair and chandlery, lock gate and offices. The marina is conveniently situated on the River Medina, two miles south of Cowes.

Monies raised by the corporate bonds will be utilised to further develop the marina on the Isle of Wight, with the intention to develop 95 apartments, including a range of leisure facilities consisting of a spa, children’s play areas and a bistro.

Work on the first 25 apartments (Phase 1) has already commenced and is expected to complete in April 2016. Contracts have been exchanged for the sale of 5 of these apartments giving a total revenue of £1,110,000.

The Operator has received a mortgage offer for a buy to let loan of £1,750,000 for the remaining 20 apartments. The Operator has received a valuation from Jones Lang La Salle for Phase 1 of the development, and as at 18 January 2016 Phase 1 is estimated to have a base land value of £675,000 and a market value once fully developed of £4,750,000.

Work on the further 70 apartments (Phases 2 and 3) is estimated to be completed by March 2018. It has been estimated that the basic land value for the area of the site upon which these 70 residences are to be built is £2,520,000. In addition, the Operator intends to build 24 houses in phases 4 and 5. The basic land value for this area is estimated to be £865,000. The development of leisure facilities, which will include a soft play area, a mini-cinema, trampoline park, café and private party area are expected to be completed in Easter 2017.

In addition, there will be a new swimming pool spa and a bistro on the site, which are due to be open in Easter 2018, as well as a newly renovated and expanded existing restaurant (in order to double the capacity), which is due to be completed in May 2016.

The current project plans anticipate that all of the new apartments and facilities will be completed by Easter 2018. However, a number of apartments, the children’s leisure facilities and the refurbishment of the existing restaurant are expected to be completed by June 2016.

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Why we like it:

“The key driver for demand is the simple fact that this is the premium-location for the UK yachting fraternity”

Highlights

• Minimum investment £25,000• Fixed return 7% p.a.• Bonus 3% year 5 • Term 4 or 5 years • Income paid semi-annually• Restricted investment subject to status

Next Steps

Request the full investor pack for this exciting new waterside investment opportunity.

Call our investment broker team on +44 (01273 447299 or complete the form at invest.avantiswealth.com/marina-development/

New Investment Opportunity Isle Of Wight Marina

Why we like it:

“In partnership with Melia Hotels supported by UK tour operators it’s a winning combination!”

Highlights

• Minimum investment £10,000• 7% p.a. assured return during construction• 5% guaranteed net rental yield• 5 year resale option• Available to all investors

Next Steps

Request the full investor pack for the Cape Verde Five Star Resort investment opportunity.

Call our investment broker team on +44 (01273 447299 or complete the form at invest.avantiswealth.com/cape-verde-beach-resort/

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If you are looking to purchase a property in Cape Verde, you’ll be pleased to know that there is now a more secure and flexible overseas property investment product called 755 Property Options from one of our

best hotels and resorts providers.

The new investment opportunity offers long-term guaranteed returns for new investors whether you purchase a property outright or as a fractional investment and now offers a structured exit strategy.

As an investor, you will continue to benefit from the off-plan incentive of 7% per annum during the resort’s construction phase, meaning you can start earning immediately. You will also receive a minimum of 5% net rental yield once the resort has opened and should you wish to exit, the developer will even resell the property on your behalf after five years.

Since its establishment in 2007, the developer has completed two developments in Cape Verde, which continue to impress holidaymakers and investors alike. MELIÃ Tortuga Beach Resort, which opened in May 2011, has been voted Cape Verde Leading Hotel for four consecutive years and it has an average occupancy rate of an impressive 74%.

MELIÃ Dunas Beach Resort & Spa, which opened in November 2014, is voted the number one hotel in Santa Maria on TripAdvisor, as well as having won several 2015 Hotel of the Year awards and ranked 7th Best Hotel Resort in the World 2015. Both resorts have led to investors receiving average returns of 5.5% net.

A further three major developments from the developer are under construction, which strongly indicates that both tourism and the property market in Cape Verde is taking off. Bookings have surged since the collapse in tourism in Tunisia, Egypt and Turkey, as holiday makers look for a politically stable all year round sun destination.

755 Property Options is therefore set to be welcomed by investors looking at the growing Cape Verde market with the improved guaranteed rental returns and structured exit strategy now in place!

Investment Focus Cape Verde Five Star Resort

Why we like it:

“The project promoter has just completed a similar facility which received significant praise”

Highlights

• Minimum investment £10,000 • Fixed return 18% for 18 months • Secure asset backed investment • Forecast gross revenues of £12 million • FCA regulated entity as security trustee • Restricted investment subject to status

Next Steps

Request the full investor pack for the Specialist Residential Care Facility investment opportunity.

Call our investment broker team on +44 (01273 447299 or complete the form at invest.avantiswealth.com/specialist-care-facility/

Investment Focus UK Care Sector

In the UK there is a high demand for care homes that offer dementia treatment and for specialist homes that support individuals with complex needs. The healthcare sector as a whole does not fall victim to

economic fluctuations that can affect more cyclical sectors. Care homes and healthcare are essential expenses, rather than discretionary costs, that will continue to be budgeted for both by private individuals and by the government in the UK, no matter what the economic climate.

This is an opportunity to invest in the development of three specialist residential care homes in Hartlepool through a loan note offering a highly attractive 18% over 18 months. The developer has already exchanged contracts on three large sites and obtained full planning permission to create much needed accommodation for individuals with disabilities and complex needs.

With the huge demands on the NHS and local government to actively procure ‘fit for purpose’ accommodation for people suffering with mental health and learning disabilities, this development should be well placed to meet these ever growing needs.

These state of the art facilities aim to set new standards in this category of healthcare and provide accommodation that should not only ensure the service users have a better quality of life, but will also underpin the return to investors. Security is provided by a fixed and floating charge over all the assets of the loan note issuer.

This investment opportunity is almost fully subscribed!

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Budget 2016 who were the winners and losers?

Smokers2% above inflation rise in tobacco duty on a packet of cigarettes.

usersLosers

Small BusinessesThreshold for relief from small business rates will increase from £6,000 to £15,000, which pulls 600,000 small businesses out from paying the hugely unpopular tax.

Fizzy drinks fansFrom 2018, fizzy drinks will be subject to a sugar tax.

Low Income EarnersThe personal allowance will be raised to £11,500, from £10,600 now.

School kidsThe chancellor announced a longer school day for 25% of schools - and compulsory maths for under-18s.

clock

💱

userprofilecupLosers

Losers

PubsFrozen duties on beer, spirits and most ciders. Cheers to that!

beerWinners

Winners

Winners

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LandlordsLandlords will face a capital gains tax surcharge when selling property following changes announced in the Budget.Osborne cut capital gains tax significantly, giving many investors a major boost. The basic rate of capital gains tax will fall from 18pc to 10pc from April this year, while the higher rate will fall from 28pc to 20pc.However, gains made on residential property will not be eligible for the newly lowered rates. Instead the Chancellor has maintained the existing rates, equivalent to an eight percentage point surcharge. The same will apply to carried interest.The Budget document said the move was intended to ensure that CGT provides an incentive to invest in companies over property.For a £10,000 gain (above the £11,100 tax-free allowance) a basic-rate taxpayer would currently be left with £8,200 after tax, and a higher-rate or additional-rate taxpayer with £7,200.Under the new rates, the basic-rate taxpayer would be left with £9,000 and the higher or additional-rate taxpayer with £8,000.The changes will see Britain charge some of the lowest capital gains tax rates in Europe.

homeLosers

SaversThe new Lifetime ISA is aimed at those under 40 who are saving for retirement or to buy their first home.From April 2017, up to £4,000 can be saved each year, with a 25% bonus from the government.The account can be added to until you are 60.

calculatorWinners

DriversFuel duty is frozen for a sixth consecutive year.

fuelWinners

CommutersOsborne gave the go-ahead to HS3, between Leeds and Manchester, and Crossrail 2.

trainWinners

The Sharing EconomyTwo new tax free schemes worth £1,000 for those offering services in the sharing economy - one for selling goods, and one directed at Airbnb owners.

usergroupWinners

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How to Profit from Unexpected Places

Making good investment profits in relatively low risk ways is every investor’s dream.

But often we are our own worst enemy because we dismiss investments for reasons that seems very sensible but just don’t stand up to close scrutiny.

Let’s take an example to make the point. Here’s a ‘real life’ investment, available today, that would be worthy of close consideration by investors who seek high returns in a short time period.

Based on this set of information (key facts on the right) I’m sure that more than a few investors would be seriously considering an investment.

Now let’s drop one more piece of information into the discussion. The location is Cluj-Napoca in Romania.

I know from experience that at this stage a considerable number of interested people will decide it’s not for them. Why?

Here are the main comments I hear:

‘I don’t know anything about Romania’

‘It’s a poor country’

‘It’s too far away’

Choosing to accept or reject an investment is a critical decision for investors. My point in this article is to highlight that sometimes decisions to reject an investment are not based on fact, or on a genuine analysis. If this is you, then you do yourself a disservice because of what you may miss!

Out in the big wide world there are a range of investors, from those who will only buy a rental property in their immediate area, to investors who choose to invest in far flung places that they have never visited.

The key is to gain clarity about why you reject something and be sure that you make a rational decision.

For example, it is absolutely not true that Romania is a ‘poor country’. Come and visit Cluj-Napoca and within an hour your view would be massively different. After visiting Julius Mall, a shopping centre that cost €90 million and rivals anything that New York or London can offer, you would be in shock. Then seeing the roads full of BMW, Mercedes and Audi cars you could be forgiven for thinking you are in an upmarket UK city.

Finally, you’d understand that much of the foreign direct investment in Romania ends up in Cluj, with Bosch employing 1,000 people and numerous global tech companies employing many more thousands.

To round this off you would see cranes everywhere as builders try to keep up with soaring demand for apartments and houses underpinned by a growing population of highly educated young people seeking to own property – which is as important in Romania as it is in the UK.

I don’t know if the Panorama Gardens project in Cluj-Napoca is for you. But if you consider yourself open-minded and willing to investigate without preconceptions, then you could bag yourself an excellent return of 24% over the next 24 months.

Ask for the Fact Sheet and Q&A information pack. You’ll be glad you did!

Rod Thomas FCADevelopment Director for Panorama Gardens

Stop Press!Nearby developments have now sold out, leaving this development exceptionally well placed to meet strong local demand for family housing. This strong demand has driven property prices up by 12.4% during 2015!

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13Photo by: Alex Ionas / Shutterstock.com

Next Steps

If you want to achieve a market leading 12% p.a. call our investment broker team on +44 (0)1273 447299 or complete the form at invest.avantiswealth.com/panoramagardens/

The Key FactsInvestor return 24% net (market leading

rate!)

Term 24 months

Minimum €20,000

Type Property development

Pricing Very competitive, selling 3 bedroom detached houses for £72,000!

Progress Planning consent in place, about to start construction

Team Experienced and well proven team, headed by Rod Thomas with 30+ years of property development and investment experience

Security Yes, first charge security over land and construction

Due Diligence Yes, 35 items of due diligence available

Location Forbes magazine calls this the ‘Tech Capital of Europe’. University town with 100,000 students studying at 13 colleges

Special feature Supported by Government first time buyers program enabling 95% mortgages

Investor profile Please note that this is a restricted investment subject to status as High Net Worth / Sophisticated Investors only

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Rod Thomas and Avantis Wealth Ltd are not authorised or regulated by the Financial Conduct Authority (FCA).

Rod Thomas and Avantis Wealth Ltd does not provide any financial or investment advice. We strongly recommend that you seek appropriate professional advice before entering into any contract. The value of any investments can go down as well as up and you might not get back what you put in. You may have difficulty selling any investment at a reasonable price and in some circumstances it might be difficult to sell at any price.

Do not invest unless you have carefully thought about whether you can afford it and whether it is right for you and if necessary consult with a professional adviser in accordance with the Financial Services and Markets Act 2000. These products are not regulated by the FCA or covered by the Financial Services Compensation Scheme and you will not have access to the financial ombudsman service.

Information is provided as a guide only, is subject to change without prior notice and doesn’t constitute an offer of investment. Some investments may be restricted to persons who are high net worth,

sophisticated or professional investors or who take independent advice from an authorised independent financial advisor.

This document represents the opinions of Rod Thomas and not necessarily those of Avantis Wealth Ltd. All information is supplied in good faith but no liability is accepted for mistakes or errors. There can be changes to the tax situation, economic and political landscape that may invalidate or change statements made herein.

Disclaimer

Contact UsExisting clients

If you’re an existing client and you’d like to review your current investments or discuss possible new investments, direct or via pension or ISA please call the client services team on +44 (0)1273 447308 or email invest@avantiswealth.com

Prospective clients

If you’re a prospective client and you’d like to arrange a complimentary pension review or have an informal discussion about our current investment opportunities, please call our investment broker team on +44 (0)1273 447299 or email invest@avantiswealth.com

t: + 44 (0)1273 447299

e: invest@avantiswealth.com

w: www.avantiswealth.com

THE RICHER RETIREMENT SPECIALISTS