Financial market turmoil, Oil Prices, Donald Trump and Property Management: but what is on the minds of property investors?

Let’s face it, the world is a complex place these days with plenty of speculation abound that we are on the brink of something major, that will no doubt touch many or all of us in some way.

Be it the current instability in the middle east, pressure mounting on the OPEC nations and the US to alter their supply of oil into the market, and the obvious deceleration of China’s economy. Did we mention Donald Trump making headway on the US presidential election circuit? He may have lost in Iowa but he still holds strong popularity.

Recent articles and commentary relating to the global financial markets used language like “investors are scared to death” and one major financial institution which shall remain nameless told us “sell everything” with regards to equities BUT instead buy low-risk bonds (which they have a wide selection to choose from). One thing all investors are still keen on is sustainable yields and income from their assets and investments.

The clients we speak to have enough economic uncertainty, fluctuation, and global issues to deal with on a daily basis. The last thing they need is to think about how their property assets are being managed.

So how are these factors connected, below are our thoughts on the pressing issues.

Oil – Price movement is uncertain and in turn, the value from these low prices are not impacting the cost of services and goods in the wider population. Supply exceeds demand and the real rate of consumption leading to dwindling prices.

Saudi and the OPEC nations who provide around 40{4e9bbf767e97313caf9e6d9eb16de97948cc0141bbef7075abe428e06f81a351} of the world’s oil are calling for a slowdown in production to ease over-supply. However, their neighbour Iran has now awoken from a long period of restricted trade and is keen to start trading again, they are also a large oil producing region with intentions of getting the pumps turned on and exporting, adding to the supply.

What’s all the fuss about though, so what if oil is cheap? The current imbalance of supply and demand can be solved quickly, should all the oil producing nations simply discuss with each other to agree production levels to create balance in supply and demand. Surely this is an easy problem to solve?

It would be a simple case of an organised and rational meeting between the nations in the middle east and members of OPEC, the US and of course Russia as major players in the global oil production markets. They can then sit down and agree a plan that works for all. Maybe it’s the cynic ‎in us that says this will not happen any time soon and so the pressure on oil prices and the knock-on-effect on confidence in the markets will likely be affected.

Donald Trump – I don’t think we can pass much comment on his current presidential campaign and its subject to the audience receiving the message as to the love/hate relationship this person seems to exude. One thing is for certain, a US economy and nation under the leadership of Trump would be a very different place to the Obama US. What is your opinion? Can you imagine a round table or summit replacing Obama with Trump? We wonder how Putin and Trump would get on with each other?

China – The nation with the unstoppable economy and win-win stock market has been the recent recipient of an economy that appears, not unstoppable, but visibly slowing (factory output specifically) albeit that it’s still a growing (according to the details published). A large amount of capital injected back into the markets to prop it up by the powers that be, and suspended trading (due to drops above 7{4e9bbf767e97313caf9e6d9eb16de97948cc0141bbef7075abe428e06f81a351}, put into place on 2 sessions). This is another factor that leaves equity investors uncertain of the effects of what will happen in the global market if these trends continue and confidence remains weak.

Where does property management fit in with the above topics? Property Management specifically for those who have property assets purchased for investment, an important part of an investors day to day income potential.

Thankfully, the majority of us are not directly affected by, or dealing with, all of the above-mentioned global factors and in most cases these are being addressed and ‎managed to ease future issues. To our clients, how their properties are managed and generating them income is a highly important factor affecting their day-to-day earning potential and goals which has a greater daily impact that the above global issues.

The property assets that we deal with are catered to property investors and focused on specific property sectors to meet our clients’ criteria. One element within every transaction is that we ensure each client pays attention to who will manage and maintain the property. To ensure the yield potential and to ensure that investors are not required to provide much in the way of input leaving the manager to do their job earn their fees and collect the rents each month quarter.

We can’t tell you what the future brings on a global scale, however we can provide you with property opportunities in the residential and commercial property sectors as well as specialist property sectors including, Student, healthcare and hotel that allow property investors to purchase tangible, well-located assets that can be fully managed to provide additional income.

So if you are seeking tangible property assets that can be managed to generate income get in touch today to talk to us directly. We can then show you ways of creating a portfolio of managed property assets to ease your worries.