With tough times ahead for the land and property industry in general, it is encouraging to hear of one particular segment that is receiving high levels of demand; namely large land sites in emerging markets with full planning permissions.

Why?  A number of large multinationals are looking for sites in emerging markets to establish market share.  In countries like Bulgaria, there is a general lack of major companies, but this is changing.  In particular, energy companies are interested in sites with strong potential for renewable energy production like solar farms and wind turbines.

Why is full planning permission so important rather than standard agricultural land?  As anyone who has tried to get planning permission in emerging markets will testify, it is not easy; emerging markets have emerging processes by definition!  Multinationals do not want the hassle of going through the planning process and the time factor, which can take a year or more, and in many cases do not have the local expertise to push the process along.  As a result, they are happy to pay the extra for a ‘ready-to-go’ site.  In general, land in emerging markets is much cheaper than established markets so the price is worth paying. Locations that are strategic by nature vary due to the buyer’s sector, but for example, logistics companies look at land near highways or new bridge projects.

So who can benefit from this?  Well, developers for one or anyone holding large sites with full planning permission.  A number will have bought multiple tracts of agricultural land with the intention of building.  The current situation means a number of future projects are either on hold or have been cancelled.  Therefore strong demand from multinationals could offer landowners with strategic sites a credible exit strategy in hard times.

I have woken up to the news this morning that the US bailout has been, at least temporarily, rejected by US congress.  Amidst the highly volatile global financial situation, what does this mean to us ordinary Brits?

It really is difficult to say, but it would appear to be a case of short term pain versus long term pain.  If the banks are bailed out by governments, the short term injection of capital would surely see some sort of recovery.  However, with the tax payer kindly footing the bill, with a reported $5,000 per US taxpayer required, stateside it is likely that ‘man on Main Street’ will be increasingly economically inconvenienced in the long term through higher taxes.  If a bailout is confirmed in the US, it would be foolish to bet against a similar plan over here.

If the banks are not bailed out and are allowed to fold, the loss of short term liquidity and any remaining crumb of confidence in our financial system would disappear.  On top of this, savers would lose their deposits, investors would be hard hit by plummeting share prices as well as suffering further property woes.

It is arguable however, that these banks should not be helped for the mistakes they have made.  Why should the tax payer bail out the banks and not even own what they are paying for?  A sensible solution, if a bailout is needed, could be to offer a debt for equity solution to the taxpayer.  The taxpayer does pay, but he also owns a slice of the company he is paying to help stay afloat.  In the event of economic recovery, the taxpayer’s shares have risen and he is able to profit from his ‘investment’.  It could be an interesting solution.

Story Taken From TheTimesOnline

Noble Investments, the only listed UK coin dealer and auctioneer, is enjoying a renaissance in collecting as investors who have had their fingers burned in traditional markets seek out a cycle-resistant alternative.

“We’ve never seen business as strong as it has been this year,” said Ian Goldbart, managing director of Noble Investments today, after announcing the £1.25 million acquisition of Surrey stamp trader Apex Philatelics.

Mr Goldbart’s bullish assessment of the sedate world of collecting fits with statements last week from Britain’s biggest stamps and memorabilia trader Stanley Gibbons, which said the “all-consuming passion” of collectors would insulate the sector from the wider economic slump.

Stanley Gibbons said the price of rare stamps showed no correlation with other assets and increased during downturns.

Apex auctions stamps for up to £5,000 a piece, while Noble offers ancient Greek, Roman, Indian and British coins among others at prices up to £11,000.

Mr Goldbart added that high-value stamps are increasingly considered a worthy investment opportunity.

“If it’s an investment, then customers want something rare, not something that they could find again next week or next month,” he said.

Following the acquisition of Apex, London-based Noble, whose chairman is Nicholas Bonham, former deputy chairman of Bonhams Auctioneers, will look to expand into bank notes and military decorations to gain more exposure to an expanding market.

“It only takes a very small percentage of money from the dominant markets of stocks, property and bonds to be channelled into alternative investments to make a big difference to our business,” Mr Goldbart said. “What’s going on in the economy globally is having a positive effect on us.

“When you look at a business like ours that turns over about £12 million a year and compare that to Christie’s and Sotheby’s, which can do between £400 and £500 million in one auction of paintings, you begin to understand why we think there’s significant upside in this space.”

Meanwhile, the economic turmoil has also proved a boon for Britains’s biggest pawnbroker. H&T Group yesterday reported first-half profits rose by £1 million as it cashed in on soaring gold prices.

The pawnbroker, which smelts about a fifth of its stock, made £2.4 million gross profits in the period, up from £700,000, a rise it attributed to the increase in bullion prices.

Story Taken From TheTimesOnline

Investors are now more security conscious than ever before and rightly so.

With this in mind, Discover And Invest brings to the market ethical & secure alternative investment opportunities, the cream of these being our stamp investment.

This is possibly the only rare collectables’ investment in the world that guarantees you a minimum 25% gain over the next 5 years or 60% over 10 years.

Is there an investment out there that is fairly cheap to get involved in, is providing increasing returns, and is guaranteed by a 150 year old, debt free company with a Royal Warrant?
Yes is the answer.

What investment has averaged 9.97% per annum returns over the last 50 years?

You can view details of our Stamp Investment by Clicking HERE

Offering amazing land plots with ideal opportunity to make stunning returns very quickly.

You can find out more about each plot :

Bistritza - A reasonably small project but at the luxury end, the sales will come from wealthy Bulgarians, looking for modern, western-style, luxury accommodation - Click Here For Full Listing

Kastrova - Situated in a residential area, this is an ideal opportunity for a self build or small development project. - Click Here For Full Listing

EcoMount - Unique opportunity for a developer to realise the first eco-project near Sunny Beach. - Click Here For Full Listing

Discover And Invest has today launched its blog.

On this blog you will be able to find out the inside view on the company, learn more from our expert staff and management team and learn about all of our investments in a different style of information.

We will also take a look at a host of regular subjects based on the latest news, including all of the financial and investment news around the world.

Don’t forget to add this feed to your RSS feed and blog managers, to make sure you receive the latest updates whenever we publish a new blog.

Also, feel free to leave a comment !

DAI Team