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Shares in bitcoin are sky-rocketing and premium bonds were seen as safe haven but offer small return

by

Graham Flaherty

Shares in bitcoin are sky-rocketing and premium bonds were seen as safe haven but offer small returns. But are there investments that can provide attractive returns without the gamble? What is the bitcoin alternative?

Since the start of the year the value of a single bitcoin has increased fivefold from 750 to 3,770, and has recently just topped 5000 in value. Its soaring value has sparked intrigue from investors and many are considering whether to buy shares or whether it has reached its limit on how much it is worth. An increasing number of businesses are accepting them, and a London developer is allowing tenants to pay their deposit using the currency. Yet bitcoin has also polarised opinions and at a recent conference in response to a moderator question JP Morgan boss Jamie Dimon said that bitcoin would eventually blow up as its anonymous nature meant it was only fit for drug dealers according to numerous sources such as Bloomberg and the Financial Times. Its value is also buoyed by the fact that a finite amount of 21 million bitcoins can ever exist and they are becoming increasingly difficult to mine. However, there is a question about its utility; the cryptocurrencys valuable would increase when they became more widely accepted as a form of payment thus increasing the demand for them.

Whilst some investors might be encouraged by its increase in value since the beginning of the year, some might be reticent to invest due to its fickle nature. From June July the value of a bitcoin decreased by more than $1,000 and in less than four days in November it lost almost a third of its value before dramatically clawing most it back. The investment does require an individual to have nerves of steel. So what is the bitcoin alternative?

Paltry Returns for Premium Bonds

Premium Bonds are one of the UKs biggest saving products, but they also yield an uncertain return and per 1 bond individuals have a 1 in 30,000 chance of winning a paltry 25. It is no surprise that people are finding these returns disappointing. Previously, the main attraction of Premium Bonds was that prizes were paid tax-free, so many people plunged their savings into them to avoid paying additional tax on them. However, recent government amendments to tax and savings means that all savings interest is automatically paid tax free, and individuals only pay tax if they are earning over 1000 in interest per year (if they are a basic 20% rate tax payer).

It appears investments that have the capacity of yielding great returns also carry with them a significant amount of risk and volatility. Low risk investments such as premium bonds yield meagre returns of between 1.25% 1.35%. Money saving expert, Martin Lewis, says investors should dump premium bonds. Investors are curiously seeking a safe store for their savings that will provide lucrative returns, without the worry that volatility creates.

UK Property there is an underlying resilience in prices Moodys

Despite political upheaval in the UK as of late, property remains a relatively stable investment. Although a rise in interest rates is expected, ratings agency Moodys has predicted that the UK property market will remain stable and resilient. Prices correlate with demand, and the lack of housing stock means that demand always outweighs supply, thus pushing prices higher, in fact house price growth was at a three-month high in October. High levels of employment and low interest rates on mortgages have also helped to buoy prices.

One of the strongest performing investment types are luxury retirement homes investments. The UKs population is ageing and over 60s own a significant proportion of the countrys wealth. Many are looking to downsize but the lack of housing stock means that smaller houses are not always available for them to move in to. Retirement homes differ from nursing homes in that occupants are generally self-funded, and instead of needing round-the-clock specialist nursing care, they may require help with simple self-care tasks, or even just someone to lend a sympathetic ear. The self-funded nature of the luxury retirement sector means that it is generally more robust than care home investments, as individuals are not reliant on funding from local authorities, which can often limit the profit margins a care home can achieve.

Retirement Homes A Newly Emerging and Exciting Investment Sector

Retirement homes are in areas where there are high percentages of wealthy over 65s such as London, the South East and the South West. A significant proportion are in Devon and Cornwall, as many choose to spend their retirement in coastal villages enjoying a slower pace of life, rather than in busy cities. Suites in a luxury retirement home along the English Riviera typically sell for 79,950 and offer 10% returns over a 10-year commercial lease. Due to the luxurious nature of the development, activities such as wine tasting, afternoon teas and daily excursions to explore the surrounded area are regularly held. Interiors are furnished to the highest standard, and offers a gym facility, cinema room and a hair salon to really pamper the residents.

The luxury retirement home sector has seen lots of interest from large investors, who are clearly onto something. Says investment director Arran Kerkvliet from One Touch Property. The older population in the UK sit on a significant portion of the countrys wealth, so the weekly fees are not as unaffordable to them as they are for many others. Also, the retirement homes help to cultivate a feeling of fulfillment and wellbeing, which becomes increasingly important to them at a time where they could be facing isolation and you cant put a price on that.

Britains ageing population is a certainty and an individual doesnt need to be a gambler to put money on their being a demand for more retirement homes. There is the possibility to earn inflation beating returns of ten per cent per annum from a sector which has outstanding support due to the well-known care home crisis

Buy to Let Investors Need to Look Outside London and the South East

With regards to buy-to-let investments, success will be dependent on many variables and location is one of the most important factors. House prices in central London and the south east for example are so expensive that it will be almost impossible to achieve a good yield on an investment, as rents have not risen at the same rate. There is also uncertainty with regards to capital growth, as Brexit and additional stamp duty charges have somewhat stemmed enthusiasm and demand for London property.

An expensive London property market has caused investors to look outside of the capital and consider other major UK cities. Northern cities such as Liverpool and Manchester have stepped into the limelight, and their appeal has been boosted by the northern powerhouse scheme the government is currently rolling out, to improve the economies and transportation system in the UKs northern cities.

The advantage most northern cities have other London is more affordable housing. The overall average house price in Liverpool is 152,406, compared to an astonishing 726,169 in London. With the additional fees levied on property of this value, it is unsurprising that rental yields must be astronomical to compete with what can be achieved in Liverpool.

Below market value property has the potential to offer even higher yields due to the lower investment price and one particularly exciting opportunity is Tobacco Wharf in Liverpool. An interesting conversion of a former tobacco warehouse; 90 one and two-bedroom apartments are assembled over its 5 floors. The advantage of this investment is that it is fully built and fully tenanted, meaning there is no development risk and the opportunity for immediate income. Many investors are receiving circa 8% net rental yields from existing tenants, but for the more cautious investor, the developer is offering a rental guarantee of 7%. The price of a one-bedroom apartment in Tobacco Wharf start from 84,995.

Below market value property allows investors to attain even higher yields. Says investment director Arran Kerkvliet. Tobacco Wharf is a particularly appealing opportunity to investors as it is based in Liverpool a city already touted as one of the best buy to let areas in the UK and is below market value. It also offers a unique living experience in Liverpool, being such an iconic building and right beside the canal.

For those wanting to make adequate returns on their savings, but are concerned about the volatility of potentially high-yield investments such as bitcoin, property investment offers a more stable alternative. Price growth is forecasted to be steady at 2.5% for areas outside of London, and rents have grown the most in the north west of the country.

In short, Britains property market is fairly assured, compared to some of the more volatile investments such as bitcoin that increase and decrease in value drastically and often. For those looking for good returns, without the daily stresses of checking an investments performance, property offers a way to get rich slowly without the heart-stopping volatility.

Yet bitcoin has also polarised opinions and at a recent conference in response to a moderator question JP Morgan boss Jamie Dimon said that bitcoin would eventually blow up as its anonymous nature meant it was only fit for drug dealers according to numerous sources such as

Bloomberg

and the Financial Times. Its value is also buoyed by the fact that a finite amount of 21 million bitcoins can ever exist and they are becoming increasingly difficult to mine.

Article Source:

eArticlesOnline.com}

Submitted by: M. Jedediah

The crafts have started taking over the entire room. You need to begin to think about how you want to organize your space and materials into a workspace where you can keep your materials and create your masterpiece.

The goal you have is to create a craft table workspace where the only thing there will be your storage and supplies-you do not want to have to pack and unpack all of the supplies every time you want to work.

Generally, you have three options for creating a special crafting space to work and to store materials. There is now furniture and storage containers especially designed for crafters, regular office furniture and storage units, or you can adapt existing furniture and storage containers in your home to fit your needs. You can spend a lot of money on furniture and storage containers or you can be frugal-whatever works for you should be your primary goal.

You can start by creating a small corner in your home that you will dedicate to your craft table. There are several items you will need in order to enhance your workspace into an area that meets all of your needs.

You should begin with the essentialspurchase a flat, easy-to-clean work surface. This can be a small desk or even an old folding card table. Any surface that gives you a large surface to spread out your supplies will work.

The craft table should be accompanied by a very comfortable ergonomic chair that is adjustable to fit the contours of your body and to provide back support. If you will be spending a lot of time making crafts, support is very important for your back.

When you decide to purchase a new ergonomic chair, go out and sit on them. Do not just look at the chair and think that it will work-sit in it, spin around, make it go up and down, and adjust the back and arms. Make sure that it will work for you and be very comfortable.

The craft table workspace has been created and is ready for you. Now, what to do with all of the crafting supplies you have. The top of your workspace is limited in size, so you definitely need to have a way to store your supplies. There are many different options on the types of storage containers you can use. Some people purchase a file cabinet that will be large enough to hand 12×12 inches hanging folders.

These hanging folders will hold the many different supplies in a handy each to reach place next to your craft table. You may want to consider purchasing a special organizer. These come in a variety of sizes and have many different sized drawers to hold the largest to the tiniest of items in an easy to open cabinet.

You can spend a lot of money purchasing all of the special furniture and storage containers that are now available for people who enjoy crafting. If you just do crafts for the pleasure it provides, you may not want to invest a lot of money into buy expensive furniture. Whatever your final decision when it comes to choosing a craft table, just make sure that it works for you.

About the Author: For more information on crafts, try visiting http://www.craftguidance.com – a website that specializes in providing craft related tips, advice and resources to include information on

craft table.

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