Jamijo Investment Property

CELEBRATING 21 YEARS AS A FINANCIAL ADVISER

jamijoinvestmentproperty — Thu, 30 Dec 2010 11:43:40 +0000

Experience is a great teacher, just need enthusiasm and energy to do it all again, at least I had a rattle at it and some things have not worked out as planned but it has been one hell of a journey so far.

I have always believed in financial planning and goal setting and personal development and have read many books, attended seminars and workshops, done courses and have the library built up for reference. Every year I write a business plan and also set personal goals.

My advice is to pay yourself first, protect your income and family and build a nest egg for the future and an emergency pot. Depending on your attitude to risk will determine where you invest but you must sacrifice today for the future.

It seems every company has carried out a survey on the pension gap and long term care and the results are frightening. The UK has largest pension gap in Europe and with confidence in pensions at an all time low people are not saving for retirement so will struggle in their old age. Lack of education is a factor and the constant negative drip about the industry puts people off as well as the mantra i don’t have any spare money at the moment but this never changes and so people never get round to doing anything as it is not a big enough priority as it it so far in the future.

As people live longer , we could be retired as long as we worked so we need to plan well in advance and the reality is most of us will have to keep working well into our 60’s and maybe 70;s to be able to afford to live. The state can not pick up the tab , we have to take responsibility and those that start early will be the winners. With SIPP’S now available you can invest in anything except buy to lets as you would as an individual , so the pension is just a wrapper around the investments with tax benefits. You can do it yourself and pick own funds or shares or whatever if you have time, knowledge and inclination or leave it to others to manage it for you. As long as charges are reasonable the size of your pot depends upon your investment choices , how much you put in and for how long, all of which you control so if you have a small pension it is your responsibility to monitor it and change and stop blaming the insurance company, the adviser, it is your pension and your responsibility.

Many people do not realise the trouble they are creating for themselves and a casual approach or a bury the head in the sand approach only kids themselves and they will be left without dignity and independence in retirement.

“How much will I need when I don’t want to work for money anymore and I want my money to work for me?”

Of course many of us live beyond our means so we need to alter our spending as we struggle with debt, job losses, so we need to save more for emergencies, retirement and with no access to your pension until age 55 at least it will still be there whereas if you could get at it, it would be gone every time an emergency arose. The situation will get worse we will have to think about university fees , long term care, leave an inheritance to children, help children with housing costs as well. It is more a case of necessity that drives people to work beyond their retirement age rather than a desire to stay healthy. Message is simple either save or work longer.

How many couples actually sit down and discuss their finances at all, never mind regularly and ask the hard questions. What if one of us dies or takes ill? How will we survive in retirement?

National Insurance is in fact no better than a Bernie Madoff style Ponzi scheme using new money to come in to fund current expenditure, not the pensions to be paid in the future. When it was introduced in 1926 only 34% of men and 40% of women were expected to reach 65 whereas life expectancy is 89 with many living to 100.

Company and Government employee final salary schemes are doomed in their current structure because the sums don’t add up.

Don’t be a cynic and listen to media’s horror stories, talk to a professional financial adviser and get the hard facts, stop making excuses, make sacrifices and start saving. The longer you leave it the harder it gets but IT IS NEVER TOO LATE.

From 2012 employers will have to fund an employee’s pension , plus the employee must contribute so be prepared.

Many believe downsizing is their retirement plan but think of all it entails and be realistic, as well it is only the difference it the 2 property prices freed up to invest or spend. The best idea is a combination of property, pension, ISA’S so all your eggs aren’t in one basket.

Women will suffer most as they have the least provision so please don’t be complacent

CARE FUNDING CRISIS

If we don’t prepare we will most likely lose our homes, there are trusts you can use.

Do you want your family to bear the costs, and when we get too frail our families are not fit to look after us. We all know people in homes or friends with parents in homes because the elderly need special care 24 hours a day. This is a demographic time bomb hence another reason to build up a decent pension so if you need care you can pay for it. Again we are ignorant of the facts and what local authorities will do so we make wrong assumptions and carry on regardless under some mistaken premise the STATE will provide, get real the State is broke and the well has run dry. Get aware of the issues ahead and take serious responsibility for your old age.

ARCK UPDATE

jamijoinvestmentproperty — Tue, 14 Dec 2010 10:54:17 +0000

This matter relates to the deferred settlement of the repurchase of REPOS contracts which we have chased to title Sale and Repurchase Contracts. You will no doubt recall a significant number of contracts were honoured in 2009 and some more in early 2010, but since then there has been a backlog of contract settlements. This, in the main, has been caused by the restriction of a sizeable amount of money withheld in Cape Verde by the Reserve Bank. In October of this year I visited the offices of The President of Cape Verde Investments who acknowledged that, at that point, ARCK was owed approximately €1.4 Million which had been retained by the Reserve Bank but confirmed was due. Since that date, and without fail, he personally, has been sent an email by me and by our legal representatives each and every Monday morning requesting both and update and release of these funds. Only 1 reply has ever come forth and we are now considering our next move. This, in turn, has a direct effect on the CEPP investors as, without the Cape Verdean Government honouring their statements, we are reluctant to move to the next stage of the overall development plan of the hotel – this is something we have clearly stated and, in a time when elections are due ( January 2011), you would think the local mayor and the President would wish to be seen to be providing employment and inward investment to the country. We continue to pursue this route with vigour. Moving backwards in time, approximately two years ago now, ARCK LLP came across a potential method of capital raising which was via the securitisation and distribution of a series of Notes (Corporate Bonds) underpinned by a portfolio of Senior Life Settlement Policies. In the first instance any proceeds from this trade was going to be used by ARCK LLp for it’s own purposes but, in October 2009 we offered this trade up as a method buying interested parties out of their contracts and us taking over their liabilities. A large number of SARP holders took up this offer via the Deed of Assignment document. In July of 2009 this series of Notes was significantly funded via institutional means but there was a small shortfall. To try and close this transaction, and after consultation with the IFA community, we commissioned the creation of a Listed investment offer to subscribe the shortfall thus allowing the trade to close and the mechanism to fulfil its aims. Sadly, despite extensive marketing to both existing and new investors, this offer fell very short of subscription. Two main reasons were provided by intermediaries as to why, lack of commission despite a 5% initial plus a 0.5% per annum, and a term of 7 years which was perceived as too long. This offer was extended to 17th December 2010 but, to date, it remains well under subscribed and will be closed this coming Friday with subscriptions being repaid. Trying not to let this fail, and in our ongoing desire to assist in bringing this matter to an end, we worked closely with some consulting actuaries to bring out another offer which, we hoped, would be more successful. This was a 1 year offer paying a high return with reasonable commission and carrying guarantees. This offer, in the early weeks, was very successful and raised almost a third of the funds required. It has slowed somewhat but, from information provided, it is apparent the offer should be fully, or nearly fully subscribed just before or after the holiday period. From our perspective, if this offer is supported to the full, we have everything in place to move forward to a successful trade which will lead to an arbitrage value over and above that required to allow ARCK LLP to purchase out SARP contract holders if they so wish. The final subscription date will trigger the trade date and what is referred to as the ‘Ramp Up Period’ for the arbitrage to be made. If is from the arbitrage value that the funds are released to allow ARCK LLP to step into the contracts. As far as timings are concerned, this should happen within 14 to 21 days of trade. Therefore, if the offer is closed on say 1st January 2011, ARCK LLP should be in possession of some, if not all, of the funds required to turn on the taps of SARP repurchase. Again, as I say, current information from the IFA community is such that this offer should be in a position to close very soon leading to the above process. As the arbitrage value comes through, the SARP contracts will be our primary settlement objective. In respect of CEPP clients, the market is extremely different. When the CEPP’s were established money flows were very easy to obtain and there had not been a financial crisis. There has never been a defined date of repurchase of loan notes under this offer, only ever a target objective. We have seen recently how difficult it is to raise funds against a branded hotel in the UK, let alone a new build in a place such as Cape Verde. At this stage the best opportunity that is in place Is for ARCK LLP, through it’s capital raising program, to consider, if funds allow, to make an offer to share and loan note holders alike. The CEPP has honoured its obligations as it has ownership of a hotel on the islands of Cape Verde, it is just, at this moment, and entirely due to the World financial market, unable to obtain any form of regearing against this asset. The Directors of the CEPP continue to explore options for this funding but most routes appear very closed. In short, we are now in the hands of those intermediaries who have signed up to support our current revised offer to fully subscribe as soon as possible. Once this is complete we are able to move to closure and trade which should release sufficient funds, hopefully in mid to late January 20100, for the SARP Assignment process to take place. I hope this overall statement assists those IFA’s to confirm to their clients the latest position and that we can all look to a very happy conclusion in January. Kind regards Richard A Clay Managing Member ARCK LLP O: +44 (0) 115 968 2177 M: +44 (0) 7971 480316 Head Office: City Office: Westgate House Gallery 4 3 The Triangle Lloyds of London

Quick summary of financial news

jamijoinvestmentproperty — Sat, 09 Oct 2010 11:39:38 +0000

Round up of the Headlines

1 in 5 planning to retire in 2010 have no pension-average expenditure in households headed by someone aged 65 to 74 was £321 p.w. while the State Pension will account for 34% of income in retirement.

Many Britons are living in a RETIREMENT FUNDING DREAM as maybe only 7% of people will be able to afford an independent retirement. They are not saving enough, not talking to financial advisers and not talking to their families, yet they still expect to have a comfortable with the help of the State, whose well is running dry.

Business owners fail to protect their main assets ie the people in them as an illness or death of a key person can spell disaster for any business.

Too few adults preparing for retirement-so the UK is heading for an age crisis of MONUMENTAL proportions as there is a misguided view that government will provide.Individuals will be forced to meet the cost of retirement on their own or FACE POVERTY. Live now , worry later culture has one hell of a price tag, MISERY.

75% of high earners look at moving abroad-to avoid tax but I believe many others may be forced to find somewhere cheaper to live.

Retirement planning unpopular with women as they seem to rely on State and husbands, but will they both still be around to provide?

Retirement age should be scrapped-keep older Britons working and healthy benefits the economy by decreasing welfare costs.

Cost of missold PPI could hit £4bn – jamijo is claiming it’s share for clients.

Are you fully in control of your finances? Be a good cub scout and sort out your life and critical insurance, your will, your pension and protect your earnings, keep an emergency fund and review it all regularly. Everyone is busy so make it a priority, stick it on top of your to do list.

Britain’s grey exodus as fed up with crime and weather and creaking economy. Get in the queue as it is going to become more prevalent.

CEPP AND SARP UPDATE, IMPORTANT AS STILL DELAYED

jamijoinvestmentproperty — Thu, 07 Oct 2010 09:14:07 +0000

Update Pertaining to Sale and Repurchase Contracts (SARP) and Closed Ended Property Portfolio (CEPPs)
Further to all previous information released in respect of the above you will hopefully recall that ARCK LLP began a capital raising exercise via a Corporate Bond some 18 to 24 months ago in respect of financial requirements for its own projects.
You will also hopefully recall that, in August 2009, ARCK LLP recognised the fact, due in the main to the problems caused post the credit crunch of 2008, that some of this capital might be required, subject to agreement by ARCK LLP, for the repurchase of SARPs and possible re-gearing of the CEPPs. A decision to look in more detail at this was then taken in September 2009 and, after consultation with the distribution agents a proposal was put forward causing ARCK LLP to increase its capital raising requirements and activate this in December 2009.
In July 2010 I made a series of presentations to both distribution agents and contract / share and loan note holders alike explaining the position and that, ARCK LLP, whilst it had been successful in fulfilling the majority of funding required, there still remained a shortfall. As a direct result of this a ‘Retail’ offering was brought to the market in early August with an aim of gaining subscriptions of £10 Million, £5 Million of which was the minimum required to settle all contracts in favour of ARCK LLP.
Whilst we have received subscriptions into this offering it has been a slower than anticipated result and, as of today, we still have a requirement of just over £2 Million excluding pipeline business. A lot of this delay has been caused by what appeared to be an abnormally long holiday period through August and a relatively slow return to work in September. Combining this with the time lag involved between presentation to distribution, then onto potential investor, then paperwork submission etc, etc, the target date of the end of September has over run. The actual offer closing date was set at 30th October 2010 but, due to demand, this has been extended on a temporary basis to allow for the collection of funds set for subscription.
The position is very simple: We are a little over £2 million short of subscribed funds to close off the retail offering which will then subsequently allow the Corporate Bond to trade thus providing the facility to move forward towards settlement options. We continue to market and distribute and really require the support of the market place to assist over the next few weeks, if they feel it is obviously the correct investment option for them / their client, so this can be achieved. We do not anticipate this matter being prolonged for much longer and thank those who have supported thus far, and ask a little more support and patience be extended before closure.
As soon as we reach the targeted amount and the Corporate Bond goes to trade we will inform you accordingly.
Kind regards
Richard A Clay
Managing Member
A

ACTION NEEDED IF YOU OWN A BULGARIAN COMPANY

jamijoinvestmentproperty — Mon, 13 Sep 2010 08:26:55 +0000

New Year’s Eve at the end of 2010 could be a gloomy time for foreigners who fail to re-register the companies that they set up as vehicles to buy property in Bulgaria.

The bar on foreigners owning land in Bulgaria has made it common practice for property to be bought through private companies.

However, the Government has ruled that all companies set up before January 2008 must be re-registered. This is a result of Bulgaria bringing its practices regarding company records into line with European Union practice.

An earlier deadline to do so has been extended to December 31 2010, but concern is mounting that many could fail to meet the deadline, or the system could be overwhelmed in a last-minute rush.

The consequences of failure to re-register are serious, including the loss of assets – including homes bought in the company’s name – a fine, and the costs of winding up the company, because under Bulgarian law the owner must pay for the liquidation. The rules are applicable to companies whether they are trading or not. Any assets held by a company that fails to re-register would, by law, be sold by public tender.

Already there have been reports of backlogs in the processing of re-registrations in Bulgaria’s Commercial Register.

On the internet, a large number of lawyers, consultancies and other services are offering – for varying fees – to assist people to re-register their companies.

Professional help may be essential, especially for those who do not understand Bulgarian or who are unfamiliar with Bulgarian legal procedures. The Registry Agency’s website, bra.bg, is available solely in Bulgarian.

Re-registration is a multiple-step process, and if done through an intermediary, will require the conferring of a power-of-attorney. Estimates vary about how long the process takes, with most sites offering services saying that currently it is a matter of some weeks.

Other steps to be covered include, once re-registration is completed, the filing of annual financial statements for 2007, 2008 and 2009 in the Company Register.

Another option is to liquidate the Bulgarian company instead of re-registering it, although this would also put the owner under pressure to dispose of assets and, of course, pay the costs of liquidation

Time to listen to the savings message

jamijoinvestmentproperty — Tue, 07 Sep 2010 08:31:35 +0000

It is no secret that many people, particularly younger people, are not saving enough for their retirement. On average people need to save 12% of their income to be able to provide themselves with an adequate income in retirement. Women over 50 and people under 30, which is 50% of the population are either under saving or not saving at all. It is widely accepted that the earlier you start saving the easier it is to build up a decent fund at retirement, yet the biggest reason is lack of affordability but this really is a matter of priorities and what you choose to spend your money on now. Many people want to enjoy life now and spend their money on holidays, cloths , eating and drinking, houses, cars etc but there is a price to pay and a very painful one in the end.

Combined with a lack of knowledge regards what one really needs to live on, what the state will provide, how to save for retirement seems to leave a lot of people with no focus or plan and even a bury the head in the sand approach and pray. It is very difficult for young people to prepare for retirement as we have been living in an unreal world, where we pretended that you could work less, save less, live longer and still get a decent pension.

START NOW get into the habit of doing it or you will forever put it off and the hill you have to climb will turn into a very steep mountain, analyse what you spend your money on and budget your expenditure, cut out some luxuries, eg buying latte and bun a few times a week fairly adds up, magazines , make your own sandwiches, walk or cycle to work, share a car to work or go by bus or train, don’t go out so often because it is simple maths what you spend today you won’t have in retirement and you may never be able to afford to retire.

Our parent’s culture of saving has been replaced by borrowing and a property owning trend so people do not have any disposable income and we are now paying the price as banks aren’t lending and people are reducing their debt. Employers will not look after us, so the ball is firmly in our court to save long term.

There are calls to raise state pension age to 72, imagine that and there are countries with no state pension at all, and citizens just have to work harder and save hard so it is not impossible but our attitude will have to change and our reliance on the nanny state because the state will soon run out of money and there will be an empty cupboard awaiting us.

Another worrying report shows that the over 50’s jobless figures are at a 10 year high so save when you can as no one knows what is round the corner. Surely now with this recession and times of financial hardship it is time to sit down and assess your financial situation, if after all you where retired and no income coming in what would your lifestyle be truly like. Make a conscious choice and then be prepared for the consequences as the onus rests with you, accept responsibility for your life and don’t look for an escape goat or blame others as it will be too late and you will have to live with your decisions.

Very few are fully prepared and those that have sought advice so please start preparing as the state will keep moving the finishing line. The economic and demographic situation has changed as the number of over 65’s in the UK is set to double over the next 50 years. State pensions being UNFUNDED are paid from current taxation. Currently there are 4 working for every person over 65 but this will fall to 3 in 10 years and 2 in 30 years so who is going to pay for it? Do the maths, it is not possible.

When the state pension was introduced in 1948 life expectancy at age 65 was 12 years for a man and 15 for a woman whereas now it is 21 and 23 and rising so our retirement plans should not rely on the state.

Bayview Visit

jamijoinvestmentproperty — Thu, 02 Sep 2010 10:54:28 +0000

Inspection Trip of Bayview Development in Crete

Arrived in the middle of the night but woke early in the Bayview townhouse to a beautiful morning. Great view of the beach, mountains and pool. I had a walk around the development which is beautifully landscaped and very tidy. Walked along the beach which is just 200 yards away past the gardens.

Kevin drove me to lerepetra, which is the nearest big town only 30 mins away…….and then walked around the old part of the town up to the impressive harbour, along the harbour front were lots of really good local restaurants, dinner for 2 with a bottle of wine €15. I had a quick stop off in the dive centre to see about diving and then we headed back to Makrigialos stopped off at Stratos bar and restaurant at the beach. Delores makes her own mosaic pictures and is from Canada. Had a nice cold beer and lunch on the promenade then went for a walk around Makrigialos. It has everything, supermarkets, butchers, patisseries, bakery, bars, car hire, bike hire.

Wednesday

Meal in Pefki with Fanus at a tapas bar and the food just kept coming and plenty of wine as well. Lots of little plates so you can try everything. Pefki is a small village overlooking Makrigialos on the side of a hill, great spot for a meal.

Thursday

Had a walk up the gorge and went to the art studio, very picturesque and tranquil. After a long walk back into the town was glad to see the bar open, so had a beer and lunch at a beach bar at Diskaris beach under the trees looking out at the ocean. Fantastic food, lots of fresh fish.

Friday

Had a quiet day on Friday spent all day on the balcony reading a book looking out at the mountains. Very peaceful.

Saturday

Went for lunch in koutsourris which is the next village on the way to Ierepetra.what a wonderful setting under the trees at waters edge.the owner gave me a tour of the kitchen and explained all the dishes on offer (see video).Then we went for another lunch with kosta beside Bayview , it would have been rude not to after he had gone to all the trouble of making it.So well and truly stuffed and back for a siesta before tea with Ritzi and David and Robinson’s which is in Koutsourris as well. Another beautiful meal(meat fest this time) and back into town for a few night caps, and some Greek dancing.

Sunday

Christening in Sitia for Michael and a beautiful church and ceremony and I was privileged to witness it all and video it.

I declined to go to meal afterwards as I felt it was more a family affair but to have been asked was very generous as is the nature of everyone here.

Meal in Stratos to finish a very cultural day.

Monday

A relaxing day at the pool and a swim in the sea before a meal in Gusto’s on the promenade.

Tuesday

Tour of north coast and a visit to Knossos a very ancient city. A lot more tourists up here with lots of activities , so it is good to stay in Makrigialos and travel to the sites and touristy things without all the hustle and bustle that goes with crowded spots.

Summary

Words that come to mind are unspoilt great scenery, lovely friendly people , best food ever had. A tranquil relaxed way of life and Bayview is a great development in a beautiful area with great beaches and only 2km from Makrigialos.

The only thing that has been built has been a hotel for the Scandanavian market but it is all inclusive so they never eat out or enjoy what the area has to offer.

I believe the area has great potential especially with a marina and golf course planned nearby and other developments. My place in Grapevines which was built by the same developer as Bayview has 16 weeks rent this year , and with 70% mortgages available it pays for it self. A quality investment or retirement/holiday home.

Financial Control is Tough for Middle Aged Britons

jamijoinvestmentproperty — Fri, 06 Aug 2010 09:15:55 +0000

Income in Retirement Is Shrinking

jamijoinvestmentproperty — Wed, 04 Aug 2010 10:58:15 +0000

FSA says cost of missold PPI could hit £4bn

jamijoinvestmentproperty — Wed, 04 Aug 2010 10:54:10 +0000