fbpx

In the press

Don’t be tempted to buy a holiday property abroad

Don’t be tempted to buy a holiday property abroad

You might be heading off on holiday this year more than usually concerned about the income you are getting from your investments. If you aren’t, you probably should be. Interest rates might have fallen to another record low of 0.25 per cent, but the miserable truth is that conditions for savers and income investors can (and probably will) get worse. We know that the Bank of England is biased towards cutting rather than raising rates. We know that our big banks are worried that those rates will soon turn negative. Witness the letter sent by RBS to 1.3 million of its business clients warning that it was changing their terms and conditions so that they could be charged for their deposits should rates turn negative. We know that inflation still exists: amid all the griping about the global economy being caught in the icy grip of deflation, it is worth remembering that at last count, the Consumer Price Index was 0.5 per cent (and, given the weak pound) rising. Finally, we know that with iffy global growth, the dividends we rely on to replace the income we once thought deposit accounts would guarantee us are less certain than they once were… read more here

NULL