Podcast Summary
LinkedIn: A Hidden Gem for Small Business Hiring: Small businesses can access a large pool of potential candidates on LinkedIn, even if they're not actively looking for new jobs. Consider posting job listings there to expand your hiring reach.
LinkedIn is a valuable resource for small business owners looking to hire professionals. It offers access to a large pool of potential candidates, many of whom may not be actively searching for new jobs but could still be open to the right opportunity. In fact, over 70% of LinkedIn users don't visit other leading job sites in a given month. So, if you're in the market for new hires, consider posting your job listing on LinkedIn. Another topic covered in the FT Money Show discussion was the introduction of home information packs (HIPs) in the UK, which was originally supposed to happen in June but has been delayed until August 1st. Now, only sellers of 4 bedroom or bigger houses are required to apply for these packs before listing their properties with an estate agent. The packs include an assessment of the property's energy efficiency and the submission of certain documents such as leasehold and title deeds. Additionally, the show touched on a few other financial topics, including the commercial property market in the UK, the potential significance of widening investment trust discounts, and the tax benefits of charitable giving. If you have any financial questions, you can email them to ask.ftyourmoney@ft.com.
New EPC rule for larger homes starts August 1, 2020: From August 1, sellers of larger homes must provide EPCs. The industry is skeptical about the implementation due to past delays and lack of government marketing efforts. Commercial property investors are withdrawing from UK funds due to market concerns and international diversification opportunities in the Far East.
The new requirement for home sellers of larger properties (4 bedroom houses or more) to provide energy performance certificates (EPCs) before selling their homes will be implemented on August 1, 2020. However, the government has not specified a timeline for extending this requirement to smaller properties. The industry has become skeptical about the implementation due to previous delays and lack of marketing efforts from the government. Meanwhile, in the commercial property market, investors have been withdrawing from UK commercial property funds due to concerns about the market and a push towards international diversification. The opportunities in the Far East lie in its young demographic and structural shifts in the markets, particularly in regions outside of Japan, which have different drivers compared to Japan's aging population and relatively robust yields.
European Market: Opportunities and Challenges: Europe, especially Germany, Scandinavia, and France, offer investment opportunities. Discounted investment trusts present value opportunities, but widening discounts could signal market concerns.
Europe, particularly Germany, Scandinavia, and France, offers significant investment opportunities for those with local expertise. The European market is not a single entity but rather a collection of distinct subsectors and subregions. Germany's economic growth has been particularly strong, and the Scandinavian region and France also present promising prospects. An increase in mutual funds and unit trusts allows private individuals to gain exposure to these regions. However, it's crucial to understand the specific focus of each fund. Regarding investment trust discounts, they have been widening since the start of the year, with some viewing this as a good buy signal while others see it as a sign of an impending market correction. Simon Elliott of Winterflood Securities believes that the sector offers good value opportunities on a medium-term basis due to the growth in discount control mechanisms and increased arbitrage buying. Discounts are supported at particular levels, and buying at a wide discount could lead to strong future returns. However, widening discounts could also indicate market concerns about a potential correction.
Asian markets offer investment opportunities with strong records and discounts: Investors can explore Asian markets for attractive deals and consider funds with solid track records. Philanthropists in the UK focus on long-term, sustainable giving through foundations or trusts.
The Asian markets, specifically those outside of Japan, present attractive investment opportunities due to their good performance records and availability on double-digit discounts. Another sector to consider is funds with equivalent unit trusts that have strong track records. On a different note, the rise in charitable giving in the UK is driven by increased wealth and the influence of high-profile philanthropists. New philanthropists tend to focus on specific needs and prioritize long-term, sustainable giving through foundations or trusts, which can be set up with the help of a lawyer.
Setting up a charitable trust for significant support: Consider registering a charitable trust for larger donations, or make donations, set up covenants, or write legacies for more modest means to support charities.
For those looking to support charities with significant financial resources, setting up a charitable trust can be an effective way to make a larger impact. This involves registering with the Charity Commission in England and Wales or OSCAR in Scotland, and using capital and trustees' time to aid charities. For those with more modest means, making donations, setting up covenants, and writing legacies into wills are also important ways to contribute. Charities historically generate around 11% of their income from legacies, highlighting their importance. Overall, there are various ways to support charities financially, and it's essential to consider which approach aligns best with individual circumstances and goals.
