Global Renewable Energy Investment Trends, 2014 Fiinovation

The report was released by the Frankfurt School-UNEP Collaborating Centre for Climate & Sustainable Energy Finance, the United Nations Environment Programme (UNEP) and Bloomberg New Energy Finance. The other main cause was policy uncertainty in many countries, an issue that also reduced investment in fossil fuel generation in 2013. Last years investment was $214 billion which was the lowest since 2009. Investments dropped by 14% from $249.5 billion in 2012 to $214 in 2013.

As per Fiinovation, the key highlights from the report to be noted include:

Descended cost of the total investment by 14%

Improved cost-effectiveness of solar photovoltaic systems

Reduced solar PV outlays by 20%

Increased investment in renewable energy from China and Japan

Fiinovation is in favour of this being a good trend that is intended to improve over the years. Since non-renewable energy resources are being continuously depleted, the demand for investment in renewable energy is increasing. An interesting trajectory has been the significant investment by China in renewable energy which has been more than the contribution from Europe. However efforts need to be directed towards enhancing investments from developing nations and under developed nations.

Despite the decline in total investment due to specific reasons, it was not at all disappointing for the industry or people who wish to see the investors and financiers increasing their investments to decarbonisation of the energy system. The report highlighted the role of Japan which has increased investment to $29 billion which excludes research and development. It is believed that there is a need to recycle finance in this sector and mergers and acquisitions can be one method to do so.

Fiinovation is aware of the fact that policy support was not futuristic for renewables in countries such as US, Germany, India, the UK, France, Sweden, Romania and Poland which delayed the investment decisions. While in countries like Spain and Bulgaria, retroactive subsidy cuts for existing projects almost killed off investment entirely. Investments by India in renewable energy dropped by 15% from $7.2 billion in 2012 to $6.1 billion in 2013 due to policy paralysis. It is expected that the challenges will be tackled and investments in renewable energy will increase significantly in the years to come.

Rahul Choudhury

Why Invest In Resort Hotels

Resort hotels have of late been a very popular option among the investors. The reason is that such property for investment offers a blend of entertainment and excellent returns on your capital. True that there are other investment options too that offer excellent growth but many of the traditional investment options focus on money solely and not on other avenues.

The advantage with owning a resort as an investment property abroad is that you own an excellent property abroad which can be utilized for holidays and also for earning decent money when you are not using the property.

Resort hotels give you, as a resort owner, the excellent combination of high yield on your capital investment, great looking locations and brilliant facilities on the resort. The Caribbean investments have been doing very well in this respect.

An excellent fact about the resorts is that most of the resorts take a long time to get them established. On an average, such a property for investment is good because the guaranteed period for rental income is 2 to 10 years.

The owner of the resorts can also keep earning from the investment property abroad even after the rental period is over. After the rental period is over, the owner of the property becomes eligible for the room rate scenario. The rooms operate like those in a hotel and the owner of the resort is entitled to as high as 50% to 60% of the room rate.

An advantage with the resort hotels is the promotion and publicity. These resorts typically are aligned or associated with high profile leisure resorts and attract a lot of celebrities. Hence, the more the number of celebrities, the more is your income from the reputation.

As a resort owner, you can also look forward to lots of sops in the form of tax benefits and concessions from the government as the builders of the resorts typically negotiate with the government for tax and other duties concessions. Hence, having an overseas property for investment is indeed a mouth watering option for you.

Having this type of property for investment means that the builder is obliged to pay you an interest till the resort becomes fully operational. This not only ensures a hefty income but also ensures that the builder completes the resort on time. Hence, even if you have done pensions investments and bought one, this is always a good option for you.

Caribbean investments have been the frontrunner, when it comes to owning resorts, because of the exquisite locales. Overseas property for investment, if it happens to be a resort, is always a good option. These resorts of late have also become good options for people doing pensions investments.

Land Banking A Great Investment For Long Term Capital Growth

Land banking, over the longer term, has shown better average gains than either shares or property, and with less downside risk, with an average UK growth of 920% in 20 years!

Once the preserve of rich, today, even smaller, in the know investors are taking advantage of this opportunity to make substantial capital gains.

Land Banking – What is it? Land banking simply involves the acquisition of land, which does not enjoy planning consent, in advance of expanding urbanization.

With the granting of planning consent, the price of an open space parcel, not yet subject to urban development pressures, normally rises in value.

Land Banking in the UK In 2004 alone, agricultural land in the UK appreciated in value between 16% and 30%, depending upon its geographical location.

In fact, over the past 20 years, the AVERAGE increase in UK Land has been a staggering 920%! In many instances, investors who have bought land in the right place at the right time have exceeded these average gains.

Not only has land risen in value dramatically, it has risen in a smoother upward path with less downside volatility than either stocks or property.

UK Demand Exceeding Supply The UK is one of the most densely populated countries in Europe and has a rising population driven by a huge influx of migrants from overseas.

Two facts will illustrate the potential of land banking in the UK:

There is a need for up to 3,500,000 new homes over the next 15 years, rising to 4,400,000 new homes over the next 20 years.

Over the last 30 years, the demand for new homes has increased by 30%. In the same period, house-building rates have dropped by over 50%.

Supply must catch up with demand, and buying land in the UK therefore offers investors a great opportunity to make substantial capital gains.

Location is the Key! Under developed land, such as Greenbelt, agricultural and forestry, is cheaper than land that currently enjoys planning consent. The way to make big capital gains in land banking, involves buying land in specific areas in the hope of future development.

Pre-planning purchase of green belt, agricultural and forestry land is nothing new. Astute investors have been doing it for years.

Investors simply need to study specific areas for the likelihood of future planning permission being granted, which will lead to an increase in the value of the plot purchased.

How to Make Big Land Banking Capital Gains Every developer knows that each town and city must grow outward, and the land most available is agricultural, greenbelt and forestry.

Land without planning permission which is subsequently included in a local authority’s unitary development plan (UDP), will potentially benefit from a significant increase in value.

With the granting of a change of use, a site’s value can increase substantially. However, the change of use category granted, i.e. residential, commercial recreational etc, will ultimately dictate the change in value of the plot.

Land Banking Risks Any investor considering land banking needs to give careful consideration to site selection, and purchase sites which are within the path of progress and future urbanization, but also have a high probability of future development.

Land Banking is a long-term investment, as resale durations and amounts are variable.

Taking Advantage of the Land Banking Opportunity There are many specialist companies catering for international investors wishing to own UK land. An investment in land can be cheap, as many developers buy plots, divide them, and sell them in smaller parcels.