Edition 11 | Global Property Scene

GLOBAL

PROPERTY SCENE ISSUE NO. 011

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: Should I move to Riga? | Investing in first edition books | How interest rates affect property Top ten cities to buy property | Euro 2016

FOCUS ON : SOUTH AFRICA

IT’S ALL HAPPENING IN FRANCE

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UK £4.99 USA $8.99 Europe €7.99 Hong Kong $67.00 Malaysia 31.00 MYR UAE 36.00 AED Singapore $11.00 SGD

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INSIDE Features

15 Investing in the UK market

40 The EU referendum looms ever closer

56 47 France play host to Euro Interest rate changes & fluctuations 2016

Once again the safe haven of property investment has come to the rescue of UK investors as savings rates offer similar returns to burying money in the garden and hoping it multiplies by divine intervention.

Sound investment is becoming a rare thing in the UK and the term safe returns is close to extinction.

Step in buy-to-let.

Thursday 23rd May 2016 marks a momentous day in the history of the United Kingdom—this is the day that the country votes on its status within the European Union. For years the UK’s membership to the EU has been called into disrepute by disenfranchised Britons, with many questioning why the country insists on paying millions to be a part of the EU economy.

The inaugural tournament was held in France in 1960 and would return there in 1984 as the great Michel Platini led the host nation to victory.

The French will be hoping to repeat that feat this summer, but formidable opposition in the form of Germany, Italy, Spain and perhaps even England stand in their way.

Fast forward twelve months and with apocalypse narrowly avoided The Bank of England had announced shock measures to combat impending financial disaster in the aftermath of the crisis with the central bank announcing that it was to cut base interest rates to their lowest ever point, just 0.5% from a previous average of 7%.

Regular Articles

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07 Market in Focus: South Africa

88 UK

INSIDE FRANCE

The summer of 2016 marks the 25th anniversary of the beginning of Apartheid’s end, the system of segregation and racism which defined South Africa for decades.

84 Should I move to Riga?

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Situated in the Baltic region of Northern Europe, Latvia is a quaint and picturesque country bordering the likes of Estonia, Russia and Sweden.

The home of the Industrial Revolution, the UK has long been established as a major commercial centre, benefiting from strong trade links with companies on every continent. With a long history in international cooperation, the country is an attractive place for investors both foreign and domestic.

Knight Knox have sold thousands of properties. We have experts on the ground that can help to find your perfect property. Why purchase with anybody else?

ISSUE 011 EDITOR’S NOTE

GLOBAL

PROPERTY SCENE ISSUE NO. 011

The Number One Buy-to-Let Magazine | www.globalpropertyscene.com

This issue: Should I move to Riga? | Investing in first edition books | How interest rates affect property Top ten cities to buy property | Euro 2016

FOCUS ON : SOUTH AFRICA

IT’S ALL HAPPENING IN FRANCE

Summer is fast approaching, as the conditions begin to improve construction is going flat out.

As I look out of the window over the city of Manchester, I count at least 12 large scale construction cranes. All of this indicates one thing, the property market is booming. Banks are happy to underwrite property and the opportunities for investors are coming thick and fast.

We start with interest rates, just how are they affecting property? Whilst mortgage rates stay relatively low it spells bad news for savers as banks are unable to offer competitive savings rates as the profits from lending money drop sharply. The Guardian recently reported that the average savings rate in the UK has dropped to a dismal 0.61%. It goes to show that now is the time to look at buy-to-let opportunities, as they are still seeing strong returns well in excess of 5%.

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*Where Sold UK £4.99 USA $8.99 Europe €7.99 Hong Kong $67.00 Malaysia 31.00 MYR UAE 36.00 AED Singapore $11.00 SGD

Contact +44(0)161 772 1394 info@globalpropertyscene.com www.globalpropertyscene.com

Credits Individual Samantha Jones, Hannah Wilde, Rachel Sharman, Alex Timperley, Will Leyland, Richard Ellis, Alistair McGovern, Suzanne Todd, Callum Whiteley, John Power, Martin Copeland, Michael Vickers, Mark Williams, Stella Nicol Commercial Knight Knox, X1, Fortis Developments, Forshaw Land & Property Group, Buy Association, INTUS Lettings, Gold Key Media, Shutterstock, Property Investor, Starin Red Spot Media Solutions, CODA Studios Ltd

Next we turn to the EU. For years the UK’s membership to the EU has been called into disrepute by disenfranchised Britons, with many questioning why the country insists on paying millions to be a part of the EU economy for what they see as very little financial benefit in return.

This is just one of the many arguments that have led the UK to the very precarious position in which they now find themselves, with the fate of the country resting in the balance of the result of a country-wide referendum. In this edition of GPS, we look at both sides of the coin.

Another country that has seen real change is South Africa. The summer of 2016 marks the 25th anniversary of the beginning of Apartheid’s end, the system of segregation and racism which defined South Africa for decades. As we reach this major milestone it seemed fitting to make South Africa our Market in Focus.

And finally we’ve travelled to France for our main focus in this edition. With tension still running high after the recent terrorist attacks, France prepares to host Euro 2016. As the French people begin to settle back into normality, we take a look at the life of a country forced into the limelight for not always the most desirable reasons.

That’s it for now, enjoy the edition!

Editor-in-chief Michael Smith

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MARKET IN FOCUS South Africa

Words : Alex Timperley | View : Thissatan Kotirat

The summer of 2016 marks the 25th anniversary of the beginning of Apartheid’s end, the system of segregation and racism which defined South Africa for decades. Racial segregation had been a part of South African life since the Dutch colonial empire ruled, but became officially mandated government policy under the National Party following the 1948 general election.

The rights, associations and movements of the majority black inhabitants of South Africa and those of other minorities were strictly curtailed in order to maintain minority white rule in the country. Non-white political representation was abolished in 1970 and, in the same year, black people were deprived of their citizenship, having it transferred to one of 10 “homelands,” or Bantustans, which were entirely separate communities.

This allowed the National Party to more effectively segregate education, healthcare and other essential public services, as well as establish a cast iron hierarchy where the white minority were granted a far higher standard of living than the black majority.

Internal resistance to the Apartheid regime was fierce. Organisations such as the African National Congress, the Federation of South African Women, the Black Consciousness Movement and Umkhonto we Sizwe (better known as MK) fought back against the oppressive National Party regime.

Famous leaders such as Desmond Tutu and Nelson Mandela, among

many others, led their people in peaceful resistance, controlled sabotage and guerrilla warfare.

Outside of South Africa, with one or two exceptions, the world at large was generally horrified at what was going on. The United Nations sanctioned the country multiple times, beginning in 1962 with an official condemnation of the Apartheid system and following that up with arms and oil embargos over the following decades. South Africa was also forced to leave the Commonwealth in 1961.

The world of sport also spoke out against the injustice. South Africa was suspended indefinitely from FIFA, the body which governs world football, in October 1964. The International Olympic Committee banned South Africa from the 18th Olympic Games in Tokyo over failing to condemn Apartheid, stating that the only way the ban would be over turned would be if racism was renounced and the laws banning competition between black and white athletes were scrapped. Rugby and cricket tours of South Africa were cancelled in the 1970s and 1980s; Don Bradman, the greatest cricketer of all time, declared that the Australian cricket team “will not play them [South Africa] until they choose a team on a non-racist basis.”

As a result of worldwide condemnation and subsequent social and political exclusion, the Apartheid system began to collapse in the early 1990s. The

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Johannesburg, South Africa

Population Registration Act of 1950 required every person in South Africa to be registered according to their race. This horrendous process involved filing people according to facial characteristics, the type of hair people had and their skin colour as well as social factors such as eating and drinking habits, socio-economic status and people’s friends and acquaintances.

Needless to say, this process by which people’s lives were changed was not based on science or reason; it was based purely on a mass racist delusion born of fear. The repeal of the Population Registration Act of 1950 in June 1991 was the end of the legislative process to free the South African people and started the country on the path to being a better place.

By 1993 all non-white people had the vote for the first time and the first truly democratic election in South Africa was held in 1994, electing Nelson Mandela to the Presidency, bringing an end to a historical anachronism which went on for far too long.

in the late 1980s which led to the release of Nelson Mandela, the unbanning of the African National Congress and the final end of the Apartheid system.

Two decades later, South Africa has changed quite a bit.

In many cases the big South African industries benefitted from virtual monopolies under the Apartheid system. Being the only place South African businesses and people could go for a particular product benefitted the businesses which subsequently had enough money to invest in first world infrastructures in a largely third world economy. Come the political settlement of 1994, these businesses were immediately able to compete in a global market without the need for fundamental restructuring or catch-up investment.

The national economy had suffered severely due to both internal division and the international trade sanctions, particularly the ban on outside investment in South Africa, levied on the country. The segregated economy was simply unsustainable in the long term as South Africa was squeezed more and more tightly by the rest of the world. Recognition of this was a key factor in President F. W. de Klerk’s decision making process

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The international sanctions were lifted in 1996 and the economy subsequently boomed, meaning the 1990s was economically the healthiest decade South Africa had seen for a long time. In the two decades since, the national economy has tripled in value to over $400bn.

As a result, South Africa is now the second largest economy in Africa, behind the oil-rich Nigeria, and the strongest in such diverse fields as diamond mining, coal mining, agriculture, forestry, fishing and manufacturing. To say South Africa is a powerhouse would be to undersell the growth experienced over the last two decades.

This rapid normalisation of economic relations with the rest of the world ensured that exports and outside investment increased straight away, and the national economy followed suit. Prices declined from the highs enforced by scarcity and virtual monopolies. A housing boom followed.

The late 1990s saw the South African Reserve bank (SARB) move to an official inflation targeting regime. This was in contrast to the previous attempts to protect a volatile Rand, the South African currency, via extreme interest rates. Which represented a major, one-off structural downwards adjustment on the market which had far-reaching effects.

The new targeted inflation regime created the perfect conditions for a speculative rush of house buying: strong inflation combined with low interest rates made the market perfect for buyers and the price of houses shot up in response. There were reports of people rushing to buy their houses not out of choice, but out of the knowledge that if they did not buy at the time then it would be too late within a few years as they would no longer be able to afford it.

The sharpest overall year of growth was 2004 which saw 35.7% growth over the previous year. This was driven by a financially-stable black middle class encouraged by individual tax relief and the increased stability and security at home. The fact that money parked abroad during Apartheid

was legally required to be brought back home by September 2004 also contributed, as did the Financial Sector Charter (2003) which boosted mortgage loan growth.

By December 2007, real house prices had reached their highest peak in South African history. It is likely that prices would have naturally declined in the years since as the market retracted to a more natural state, but in reality the South African property market would retract as a result of two main stimuli in 2008.

Firstly, the worldwide banking crisis had a negative effect on the Rand and the housing market much like it did everywhere else in the world. South Africa had better fundamentals than many of the other large economies in the world, but old vulnerabilities in the economy were brought to the surface again; unemployment, poverty, and inequality rose among the poorest citizens. Decreased global demand hurt South Africa’s manufacturing and mining industries which experienced a slowdown.

Secondly, the National Credit Act 34 of 2005 established the National Credit Regulator which is responsible for the regulation of the South African credit industry. This Regulator applies a natural caution to a market which is instinctively a risk-taking one, slowing the proliferation of bad debts which inflated the housing market by limiting the amount of funds

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Area: 728.26 km2 Population: 2,106,146 Density: 2,892.0/km2

Camps Bay Beach, Cape Town

which can be borrowed, requiring thorough credit checks and ensuring that creditors abide by the rules. The new Regulator began to have an effect in the following years and contributed to 2007 being the end of the boom.

Today, the economy has recovered and South Africa is on the up again, even though not everything is rosy. 2015 was a challenging year for South Africa and the future does not look certain.

The troubles of the unpopular President, Jacob Zuma, are reflected in the country as a whole which slipped perilously close to recession in 2015 – defined as three continuous quarters of negative growth. In February of this year the Finance Minister, Pravin Gordhan, declared the South African economy to be “in crisis.”

Annual economic growth shrunk from 1.7% to 0.9%, poverty became widespread and unemployment officially rose to 25%; given that this only includes adults looking for work and excludes everyone who has given up due to lack of jobs, that number is a conservative estimate. In response, Mr. Gordhan unveiled government spending cuts, a civil service pay freeze and some moderate tax increases to deter lenders from declaring South Africa’s credit rating to be worthless.

House prices declined to match the economy, as is often the case. 2015 failed to match the slight rise recorded in 2014. Barclays Africa Group predict a rise in the market of between 5% and 6% in 2016, though it is worth bearing in mind that the pressures which forced prices down in 2015 have not been fully relieved and the underlying vulnerabilities in the market have not magically disappeared.

For the foreign investor, the current market conditions make South Africa an interesting prospect. Non-domiciled investors currently own approximately 3% of the property in the country. This proportion is growing, but there has been no major rush of foreign investors pouring into the country. There is no legal upper limit on the amount of property allowed to be owned by non-citizens, but foreign funds must be declared and there is capital gains tax to pay in the event of a successful investment and future sale, similar to the majority of countries and investments.

The timing is good for an investment given the current uncertainty and potential for further short term economic pain for the government. The national currency, the Rand, has halved in value over the past five years making South African property dramatically cheaper for the foreign investor compared to both the cost during the early 2000s boom and the relative cost compared to what residents have to pay.

Buying when times are bad and waiting for an upturn is a classic investment strategy, but one which only works when the fundamentals are sound. South Africa certainly qualifies on that front and Cape Town is an excellent example of a city which offers secure investment tenure.

Research from Savills shows that property values in the city have increased tenfold since 1991 and rental yields remain steady at between 6% and 9%.

While house prices have not yet returned to their early-2000s peak they are only going one way in Cape Town, a city with international prestige as a place to live and visit.

South Africa has a turbulent history and is still experiencing growing pains as the nation is young in its current form, but overall the picture is clearly one of progression. Despite the odd hiccup here and there, this is a country which deserves to have some faith invested in it as well as money.

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Cape Town, South Africa

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WHERE SHOULD I INVEST? Top 10 cities to purchase property

Words : Alex Timperley | View : Marisa Estivill

The world we live in becomes more interconnected every day. Ever improving communications technology and transport options mean that no one country is an island anymore. Oceans and mountains no longer stand in the way of people wishing to travel and the whole globalised world is open for investment and business.

As the world gets smaller, the world of investment is less secure than it once was. A crisis on one side of the world can affect other unrelated markets almost instantaneously. The financial crisis of 2008, which the world has yet to truly recover from, is the perfect example of this. In times of uncertainty the best investments are always the old classics and there is not much which offers the same security as investing in property.

As the number of people living in cities continues to increase every year, this is the perfect time to invest - but where should you look? Global Property Scene has compiled the top 10 cities in the world in which to invest in property…

which aims to reinvigorate the North of England and rebalance the national economy. By taking some of the emphasis away from London it is hoped that regions neglected by successive Governments will be able to become a formidable economic region.

Widely considered the be the UK’s second city, Manchester is a city of economic and cultural importance and is home to over 500,000 people, a figure which is expected to rise dramatically over the coming years as the city continues to grow in importance.

International interest in Manchester is high, especially from China and the United Arab Emirates, both of which are pouring enormous amounts of money into the city. Foreign investment is playing a significant role in everything from business to property to the expansion of Manchester Airport.

Property values in the city are expected to rise by at least 5% a year until 2020 for a total rise of over 20%. Rental yields in the city are keeping pace by rising approximately 6% a year, a superior rate than can be found in Manchester is the driving force behind the ‘Northern Powerhouse’ scheme London. This is fuelled by Manchester’s attractiveness to young people Manchester

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Barcelona, Spain

and students and its reputation as a home of industry and innovation.

Montpellier Montpellier is a cosmopolitan city on the Mediterranean coast in the Herault region of France. With a quarter of a million residents and a 60,000 strong student population it is one of the largest cities in France. The population and city has been consistently growing since the 1950s and shows no signs of stopping.

Much like Paris, Montpellier bears the mark of Baron Haussmann, one of the most influential urban planners and architects of the modern era.

However, unlike the capital, Montpellier was not completely redesigned by the Baron in the name of post-war renewal; instead the city is defined by its ancient monuments, churches and rambling streets and coastal position which ensures hot summers and mild winters.

As well as being a tourist hub Montpellier is strong in research and development. Research into biotechnology, information science, agronomy and environmental sciences all have a home in the city alongside manufacturing of chemicals, pharmaceuticals and large companies such as Dell, Cap Gemini and Ubisoft – the latter alone employs 25,000 people in Montpellier.

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Montpellier is a great city for buy-to-let investors. Property prices in the city are reasonable and rental yields are steady. The large student body and young population – over 40% of residents are under the age of 40 – means that tenants will never be hard to come by. The city has an active nightlife scene and sees thousands of tourists every year, a testament to Montpellier’s vibrancy.

Leeds Leeds is a city and metropolitan borough in the West Riding of Yorkshire.

It is one of the largest cities and regions in the UK and is a part of the ‘Core Cities’ group. The region takes in important towns and cities such as Huddersfield, Bradford, Wakefield, Halifax and Harrogate and Keighley.

During the Industrial Revolution Leeds was a major mill town as well as being a home for metal working, printing, wool, engineering and many other industries. Today Leeds is still a manufacturing region, if not to the same extent it once was, as well as being a key financial and knowledge centre of the UK. Leeds today is a key part of the ‘Northern Powerhouse’ and is one of the UK’s best property investment markets. House prices are rising

approximately 5% per year and this trend is set to continue in the future as the population and workforce continues to grow from an already impressive base.

Leeds is set to benefit from millions of pounds of infrastructure investment, such as High Speed Rail, over the coming years both from the government at home and international investors abroad looking to take advantage of the city’s increasing profile. This is a city at the beginning of a significant boom and the time to invest is now.

Barcelona Barcelona as we know it today is the result of visionary urban planning.

The city reached breaking point in the mid-1800s as too many people were crammed into too small a space. This was having dire effects on the health of the citizens and restricted the future growth of the city. Catalan engineer Ildefons Cerdà pioneered a very European version of a city built to a grid system, and the rest was history.

Today Barcelona is a true European capital, famous around the world for its architecture, culture and football teams. The city is still an ongoing project with Gaudi’s famous Sagrada Familia cathedral set to finish a 150 year construction process in the 2030s.

Today, Cerdà’s grid system of chamfered buildings and large streets is set to be revolutionised again and transformed into “super grids” where cars will be banned from much of the city in favour of pedestrians and bicycles. This is set to be another revolution in public health for Barcelona and will only make the city more attractive as a destination for people to live and visit.

Spain’s small home loan credit market makes Barcelona perfect for investors able to invest their own cash – this includes foreign investors.

The property market bottomed out in Barcelona around the year 2013 and is now on the way back up. The city’s excellent national and international transport links make it very tempting for foreigners from London to Beijing. The deal is sweetened by the fact that Spain offers EU residency to foreigners who invest €500,000 or more in the country.

Liverpool Liverpool is a port city in the North West of England and is becoming a big name in the world of property investment. Decades of underinvestment in the city are being reversed and the city is on the rise once more. An economic rivalry which dates back to the 1800s is being put on hold as Liverpool is working with Manchester to revitalise

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the region.

The infrastructure of Liverpool is impressive, a mixture of road, rail, shipping ports and airports which stretch around the country and the world and that is without considering the £50bn earmarked to make Liverpool the UK’s prolific port again over the next 50 years.

Liverpool’s population is large and constantly growing, and property prices are reasonable enough to retain skilled workers and attract young professionals as well as having room to grow as the region’s prominence continues to grow.

Liverpool is a historic city with a bright future ahead of it and should be extremely attractive investors. The city is a vital part of the UK and is on the verge of enormous growth to consolidate this. The North West is booming and Liverpool is a prime destination for investment.

Tallinn Tallinn is the capital of Estonia and one of the most beautiful cities in the world. The two-tiered Old Town sits at the heart of Tallinn but the city now extends far beyond its medieval walls. Church spires rub shoulders with glass skyscrapers, wooden houses and solid stone battlements.

Following a brief flirtation with becoming a holiday destination for stag parties from around the world, becoming known as “the Bangkok of Europe”, Tallinn decided to forego that Jägermeister-stained fate and become a hub of innovation – the New York Times has since described Tallinn as a “Silicon Valley on the Baltic Sea.” The city’s most famous modern export is Skype, a video chat service acquired by Microsoft in 2011 for $8.5bn. The booming technology sector means that Tallinn accounts for almost half of Estonia’s GDP and has a GDP per capita that is almost 200% higher than anywhere else in the country.

Property values are constantly increasing in Tallinn in response to international investment demand and the growing realisation that Tallinn is one of the most exciting places in the world to live and work. Local lenders are reluctant to over inflate the market by offering low cost mortgages and property taxes in Estonia are low relative to the rest of Europe. For those looking to invest in property, Tallinn should be a very tempting option.

Shenzhen Shenzhen sits at the mouth of the Pearl River Delta in South Eastern China, adjacent to Hong Kong. Over the past few decades the region has experienced what is probably the most rapid period of urban expansion in human history as China is attempting to create a megacity by 2030. The area around the Delta is now the largest continuous urbanised area on earth. Nowhere has changed more than Shenzhen over that period.

Previously an agricultural area, Shenzhen has gone from a town of 58,000 to a giant city of over 10 million. Becoming the venue for China’s first ‘Special Economic Zone’, an area where foreign direct investment and businesses are allowed, has turned what was once farmland into an area housing a mix of people from all over China and the world.

Shenzhen is currently the fastest growing property market in China, and indeed the world. People cannot get enough of this city, a wonder of modern engineering, political purpose and strength of will. Annual increases in property value of 30% are considered the norm in Shenzhen and the new hi-tech economies in the city are beginning to exert themselves, dragging the city up with them. Shenzhen is leading the charge from foreign investors due to its special economic status and a more welcoming attitude towards foreigners – investing sooner rather than later is advised!

Cape Town South Africa does not technically have a single capital city, but Cape Town comes close being the seat of the National Parliament and the legislative capital of the country. The city looks out over the South Atlantic Sea which made it the perfect stopover for Europeans sailing through to India and the Far East. Its status as a valued rest stop made Cape Town’s growth into a regional centre inevitable. The city is the second main economic hub in South Africa and the third major economic hub in Africa as a whole.

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Manchester, UK

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Liverpool, UK

The city itself is a modern metropolis built around Table Mountain National Park. This flat topped mountain dominates the city skyline and makes Cape Town uniquely beautiful among the great cities of the world. The hot weather and mixture of beaches, forests and urban sprawl make Cape Town both the most popular tourist destination in South Africa and perfect for retirees and foreign property investors. The international appeal and national standing of Cape Town ensures that the property market is secure and predictable and rental yields in the city are good and stable, ranging between 5% and 8% depending on the neighbourhood.

For more information on the South African market, see our ‘Market in Focus: South Africa’ section on page 7.

Auckland With a population of approximately 1,500,000 Auckland is the most populous city in New Zealand making up 32% of the country’s population and dominating the North Island. The city is geographically blessed being surrounded by two large natural harbours and plentiful fertile volcanic soil. Within an hour’s drive there are rainforests, wineries, and wildlife reserves. The isthmus the city occupies is so thin that the Pacific Ocean nearly meets the Tasman Sea in some parts. Residents of the ‘City of Sails’

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are never far away from the sea and Auckland has a maritime history to match.

Today Auckland is the economic capital of New Zealand and most large international corporations will have an office in the city. Correspondingly the city has as large as economic footprint as you might expect, being responsible for approximately 35% of New Zealand’s GDP – more than the entire South Island put together.

The buying process for overseas buyers is simple, well organised, and regulated to ensure that the purchase process is fair for both buyers and sellers. There are no legal restrictions on foreigners buying property but certain properties, for instance those valued at over $10m, will need approval from the Overseas Investment Office. Auckland’s property market is as strong as you would expect from an ever-expanding financial and import/export capital. In 2015 the city saw a year-on-year rise of 14%, and there is evidence to suggest that smaller apartments offer a better rental yield than large ones.

Milan Milan is an international powerhouse. The capital of the Northern region

of Lombardy is the industrial, commercial and financial centre of Italy.

Milan is the area of Europe with the highest population and industrial density and the city itself has a GDP only beaten on the continent by London and Paris. It is a centre of art, fashion, food, sport, architecture and has great historical value. Residents love the city, as do the two million annual tourists who visit the city to see sights such as the Milan Cathedral, Milan Fashion Week, Leonardo Da Vinci’s The Last Supper and the San Siro.

The Italian economy has been going through something of a rough patch of late and the various perils facing the nation have been well documented. The economy was in recession from 2012-2104, but Q4 2015 saw a return to growth and a slightly brighter outlook. This has not completely filtered back through to the property market with many major Italian cities – for instance Rome, Palermo, Bari, Florence and Bologna among others – still suffering from declining house prices in response to the weak economy. Milan stands almost alone in seeing an annual increase in house prices year-on-year. Traditionally buyers would prefer a fall in prices but when it comes to such a volatile country as Italy buyers should instead be looking at long term prosperity. Milan’s strength and international appeal combine to make this a fantastic investment.

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TOP MARQUES MONACO A truly remarkable window into the world of luxury goods

Words : Michael Smith | View : Mark Williams

The growth of the luxury market is truly staggering. As the large economies of both China and India continue to see growth at a stochastic rate, the demand is at an all-time high. The common trend with these developing economies is to look to the aspirations of western society. Be it cars, clothes or jewellery the Western design houses are riding the wave of opportunity warranted by these new markets. The motor industry in particular is an industry enjoying the fruits of these newly tapped reserves.

For instance, you take a brand like Audi, synonymous with European style, refinement and build quality. They are now producing long wheel-base versions of their most popular models for the Chinese market, as rear seat space is seen as a priority to buyers. The same can be said for the European fashion houses, who now produce collections specifically tailored to these Eastern markets. China is also one of the largest consumers of European wine, watches and designer tech to name a few.

Having adopted the western consumer culture, naturally they’re developing the demand to own the latest invention, the new trend, the must have item. The question is where do you look for the next big thing?

Now in its 13th year, Top Marques has blossomed into one of the world’s greatest supercar events. Synonymous with cutting-edge technology, top

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performance, sophisticated styling and today, a concern for the environment, makes Top Marques Monaco a truly remarkable window into the world of luxury supercars.

The event delivers a vast array of sophisticated products to 40,000 visitors over the course of four days at the famous Grimaldi Forum, situated in the heart of Monaco. The location is certainly something which makes the event magical. Acting as a magnet to the supercar community, large numbers of car enthusiasts descend on the picturesque location to celebrate the vehicles on display. As you wander through the town you can’t help but feel blown away by the sheer number of supercars pottering along the harbour front.

All of which leads me into another great aspect of Top Marques; the test drives. As with any vehicle purchase, one needs to try the product before taking the plunge. During the weekend of the event, the police work in tandem with the event organisers to allow drivers to experience the performance of the cars in question. As the Monaco Grand Prix looms ever closer, the harbour front is already well into the preparations for the famous street race. As a result, these short stretches act as the test bed for the cars on show, and act as a great location for spectators to enjoy the sounds, smells and colours of these extremely rare cars.

918 Spyder, Porsche

Huracan, Lamborghini

Top Marques Monaco is predominantly a supercar show but it also showcases other aspects of a luxury lifestyle such as elegant watches, state-of-the-art super boats and bespoke jewellery.

As I arrive at the event, it was hard to ignore some of the toys on show.

Rising above much at the entrance was the Kormaran K7. This automated boat is capable of transforming to overcome any conditions it faces. Built from technology you’d expect to see in the America’s Cup, this carbon/ titanium boat is sure to deliver the wow factor for any boat owner. With the team behind James Bond looking to adopt this invention into one of their movies, it’s sure to be something we’ll see in a harbour of the future.

Sticking with James Bond, PropShop, the people behind all the amazing models for the Pinewood productions were on hand to introduce an amazing 1:3 scale, full operational model of the Aston Martin DB5, a car made famous the world over by the James Bond franchise. The model on show is 1 of 100 limited editions created in partnership with EON productions and Aston Martin. If you’d like to add one of these to your collection the price is £28,000 + VAT. If you’re looking for some 007 thrills, then Martin Jetpack are a brand sure not to disappoint. Whether you’re an adventurer, a futurist or a visionary, the Personal Jetpack gives you the freedom to explore and venture to

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places that other can only imagine. Seen as a means to travel short, but difficult terrain swiftly, the Personal Jetpack is taking travel to another dimension. Its small dimensions allow it to operate in confined as well as open spaces. Prices start at £102,500.

Looking for a gift for the person who has everything? The ArcaBoard is a machine lifted by 36 high power electric ducted fans with a maximum thrust of 200 kgf (430 lbs). It has a built-in stabilization unit, meaning that ArcaBoard is stable in any condition and is a very safe platform to fly on.

You will be able to utilize your phone for control and navigation of the vehicle itself. But for the most intense experience you can turn off the stabilization system and steer the ArcaBoard with your body.

Air travel has become an increasingly accessible form of transport for the masses. Yet helicopters still remain one of the the more exclusive forms of transport. If you’re one of the lucky few on the market for a new model, Finmeccanica Helicopter division were on hand to guide you through the possibilities. Having changed their name from AugustaWestland in January 2016, they had a beautiful AW169 on display outside the event.

Setting new standards in comfort, safety and performance their helicopter drew lots of interest throughout the course of the event.

Something I have noticed at the event is there truly is demand for luxury

Vulcano Titanium, Icona

Evantra, Mezzanti Automobili

Price:

ÂŁ205,000

Top speed: 201mph 0-62mph: 3.4sec Engine: V10,

5204cc at 8250rpm Gearbox: 7-spd dual-clutch Economy: 23mpg (combined) Power: 602bhp

Arrow, Apollo

CX75, Jaguar

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V45 T GRAVITY CS YACHTING 5N.BL Yachting

in all kinds of industry. Vizoury, a company that specialise in high-end fitness equipment, deliver some truly unique pieces. Combining the most precious materials imaginable, they offer dumbbells in a range of weights 2-20kg. These are turned from the highest grade stainless steel with absolute precision. They are then polished to a high-gloss sheen, coated in a rare ruthenium finish and then displayed in a bespoke walnut wood case. If this level of detail isn’t enough, the customer can set the piece in up to 750 flawless white diamonds. The price for that level of detail? £22,750.

One of the highlights of the event for me was the collection of watches on display. Some of the largest brands were present offering their latest collections. Leading from the front with one of the most impressive stands was Frank Muller. Known for the speed and precision of their time pieces, they had on display their latest Vanguard range. Characterised by its harmonious contours and impeccable balanced proportions, the Vangard collection is a true demonstration of craftsmanship on show at Frank Muller. As demand from the east has continued to sour, the incentive to create new, and unique designs has gather pace. Whist I did find some of the styles not particularly to my personal taste, I can certainly see these collections flying off the shelves in places such as Kuala Lumpur and Singapore.

Now we move on to the main focus of the event, the cars. Kicking off the event we take a look at the amazing Apollo Arrow. The brand has

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V45 C GOLF TTBC.NR Backswing

recently rebranded, and have taken a new design approach to the new model. It’s predecessor, the Gumpert, had a far more aggressive stance.

It looked like it had come straight off the Nürburgring onto the streets of Monaco. The Arrow on the other hand has beautiful flowing lines and details. It looks like it’s designed to work in tandem with the air as it cuts gracefully through. With plans to make only a handful a year, you may have to wait a while before you can get behind the wheel.

Brabus, the well-known after-market Mercedes specialist, were in attendance to showcase their latest models. Starting with the Brabus 500 4x4², this started out life as the Mercedes G63 4x4². It has received the full Brabus treatment with all new bespoke interior, uprated carbon fiber body panels and boosted performance to 500bhp. In the crowded SUV market this is a vehicle that can guarantee turned heads. Brabus are also know for they dedication to classic restoration. On display was a completely original 1970’s Mercedes SL, returned to factory condition. As demand in the classic car market continues to explode, more customers are looking to professional suppliers to correct aging interiors and bodywork.

If classic cars are something you’re looking to personally get into, Top Marques has the answer. Gentleman Car, based in the south of France specialise in bespoke recreations of classic American muscle. On display was a beautiful 1967 Shelby Cobra, finished in blue with the classic double white line motif. WIth the classic 1970’s models fetching in

Franck Muller, Geneve

V45 CC GD SQT 5NBR.NR Vanguard

excess of 2 million pounds, these recrations seem like a good alternative at around £200,000 each.

A lot of the difficulty in the classic car market is finding the model you truly desire. Often the really exclusive classics fly under the radar, as they are privately passed among a select few collectors. Supercar Finders, who specialise in travelling the world to find the best examples say they’re up to the task of finding most models. As we stand next to a Maseratti MC12 1 of 50, I find it hard to disagree. They spend a lot of their time looking for models that are yet to be requested, ensuring that when the timing is right they can deliver. As they embark on a partnership with Gemballa, a specialist aftermarket supplier, it’s clear they too are making the most of the luxury boom.

Top Marques prides themselves on offering some of the most exclusive models, yet to be seen on the road. The Italian Vulcano Titanium is the latest model from the exclusive brand Icona. Built entirely from carbon and titanium, this vehicle is capable of 0-60 in just 2.8 seconds and can go on to achieve speeds will in excess of 200mph. Again as this is a bespoke vehicle, expect production numbers to be low.

If you feel the Vulcano is not the model for you then maybe you should have a look at the Mazzanti Evantra. This vehicle could be compared to a tailor made suit, as each model is measured and hand crafted to the shape of the driver. Combining high quality with performance, this

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exclusive model will only see 5 models produced every year. Prices will be based on the customer as each model is uniquely specified.

Some enthusiasts prefer to invest in a more familiar brand, which is why Lamborghini were on hand at the event to introduce the latest edition to the model range. Following on from the success of the coupe, Lamborghini were displaying the latest Spyder version of the Huracan.

After 10 years in production the Gallardo was recently replaced by the Huracan, and demand has been stratospheric. Now available open top, the model has even more appeal as you can enjoy the amazing v10 sound-track. The model on display was finished in a spectacular blue with an array of bespoke optional extras. Prices start from around £205,000 before options.

As pressure mounts on the global community to address the ever increasing levels of pollution produced by the burgeoning population, now is the time for the right organisation to stake a claim in the increasingly popular zero emission market. Tesla have seen this opportunity and are leading the way. The Model S is the world’s first 100% electric premium sedan. Launched back in 2012, it offers unprecedented range for an electric vehicle (528km), and can deliver blistering performance with the P90D acceleration from 0-60 in 3 seconds. Another new model in the Tesla range is the Model X. Marketed towards large families, this model has 7 seats and ample boot space as the traditional engine is no longer present. With Lamborghini style doors to the rear of the vehicle to improve accessibility, the Model X shows what can be achieved from a purely electric car. Expect to see this model on the road from mid 2016 at a price of £65,000.

It’s not just cars that are moving towards electrical propulsion. Bikes too are now seeing the trend to go 100% green. Where bespoke, handcrafted design and world-leading e-bike technology intersect, you’ll find Stealth Electric Bikes. Engineered in Australia and shipped globally from their Melbourne hanger, Stealth has forged an unmatched reputation for power and performance, earning praise from e-bike aficionados worldwide, and reinforcing a peerless pedigree. With increased pressure from local activists regarding excursions onto rural land in petrol powered vehicles, Stealth are offering an alternative to the issue. Prices for the bike start from around £6,830 plus local taxes.

And finally we finish with the ever popular water equivalent of the motor bike, the jet ski. The arrival of the new Belassi B3R with astonishing 333hp represents a new generation of personal watercrafts. The smooth torque delivery, tailored seat for sporty rides and groundbreaking steering precision allow for outstanding agility and drivability, making the ride your experience over the limit. With the I3C16 turbocharged engine the most powerful 3-cylinder PWC-engine in the world, the new Belassi B3R is destined to provide performance perfection. Prices are available on request, but there is a slight waiting period as orders for the model have been significant.

So there we have it, some of the highlights from the 2016 Top Marques Monaco event. This was my first visit to Monaco, and I have to say it left a very good impression. I think the event really succeeds on the appeal it creates for enthusiasts. Even if you’re not attending the event, just to be in the town at the time is a great experience. Sitting in the bars on the front watching the test drives speed along the bay is a great way to spend an afternoon. It just goes to show that co-operation with local police and event organisers have allowed Top Marques Monaco to become a truly unique weekend.

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1964 Cobra, Shelby

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WELCOME TO FRANCE A classical, cultural and compelling country Words : Rachel Sharman | View : Marco Ciannarel

France is a country which often gets defined by its history.

It’s understandable really; France has an illustrious and famous past. Like many western European nations, it had a so-called Golden Era of great prosperity, a great empire and great influence around the world.

Comparatively, it also had its fair share of bleak moments (the Napoleonic War and the Hundred Years’ War to name but two).

France even went above and beyond its neighbouring countries to truly cultivate the image of it being the global centre of culture. For a long time France prided itself on being at the cutting edge of art, architecture, fashion, food, and philosophy—many people would argue it still is. France still holds accolades such as the world’s second most visited museum, the Louvre, and being home to some of the most prestigious fashion designers and best chefs in the world. This accolade has never really been in question, even in a modern world where seemingly every city inside and even out of Europe can boast a selection of cultural marvels of their own.

So perhaps unsurprisingly, in France it’s hard to escape from reminders of such a rich history and culture, from the Roman ruins scattered across the country, to the lines of traditional townhouses (with their tall, thin shuttered windows) which seem to crop up in every French city. Even when asked to describe the Parisian skyline (the capital being the main perception of France for a lot of people), most tend to think of the historical landmarks - the Eiffel Tower, the Notre Dame de Paris, the Arc de Triomphe, and the Sacre Coeur, the latter being the most recently built having completed in 1914. This is unusual in today’s world, where many other world-famous skylines have skyscrapers and modern attractions associated with them.

For example, when thinking of London (arguably Paris’s greatest foil) often the conjured image is of the London Eye or the Gherkin skyscraper alongside Big Ben and Tower Bridge etc.

This focus on the past is partly because, unlike many other global cities, the centre of Paris has very strict regulations about the height of new builds. So much so that June 2015 saw the first approved skyscraper in central Paris in 42 years. Interestingly, a lot of people aren’t in favour of the development, claiming it will ruin the old-time aesthetic of the area.

(Although this isn’t to say that there is no modern architecture in the whole Parisian metropolitan area. The business district, La Défense, is made up of a cluster of impressive skyscrapers. It just doesn’t make it into most perceptions-(or postcards)-of Paris.)

My point is that the global portrayal of France is that of a classical, cultural and compelling country. A feast for the eyes and stomach! France welcomes more foreign visitors to its shores every year than any other country (around 83.7 million in 2014) in part thanks to this romantic, historical image. People want to get lost following windy cobbled streets in the cities, or stay in traditional, scenic villages in the countryside. France is like a gateway to the beauty of the past.

Yet, modern day France doesn’t always capture the imagination in quite the same way. As a country, it is doing well in certain aspects: > It is has the 6th largest economy by nominal figures and 9th by PPP

(Purchasing Power Parity - an economic tool used to estimate a nation’s economy without looking at exchange rates). > Along with tourism, the chemical industry is a large component of the economy and provides as many as 620,000 of jobs to the nation. > Some sources say it fared the global recession relatively well in comparison to many others.

But ultimately, there’s just less glamour in modern French day-to-day life and the country isn’t quite the global powerhouse that it used to be.

Modern day France just isn’t quite as inspiring as its proud history.

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Unfortunately, the country’s property market appears to have a familiar story of slow decline. For years, house prices have been falling across the nation. Unlike other countries’ economies which have crashed and seen house prices drop dramatically, France has just seen steady quarterly losses of a few percentage points at a time. This all adds up though and house prices are significantly lower now than a few years ago. At the beginning of 2015, it was reported that some properties have seen their prices halved since their peak in 2007.

However, many experts predict that house prices have now dropped as low as they will go. It is expected that 2016 and 2017 will see the fortune’s turning for the property market, like a modern-day real estate renaissance.

A closer look at France’s real estate market These statistics from the Notairer de France, the official website for every French property lawyer (Notairer), show the extent of the declining French property market in recent years as it fell by: > -2.5% in 2014 > -2.7% in 2013 > -2.1% in 2012 These also highlight how the change in 2015 to a growth +0.5% is clearly a significant turning point in the overall housing market. Whilst it must be noted that these figures are for house prices only and that the Notaires estimate that apartment prices outside of Paris fell by -0.9% throughout the year, 2015 still appears to be a lot stronger than its predecessors.

This is reiterated by analystsand leading estate agencies: Century 21 and Guy Hoquet, and the French National Association of Estate Agents (FNAIM) all of whom have stated they believe the real estate market is finally turning around and will be growing stronger over the next few years.

Similarly, in August 2015 economic research by Martin Janicko for Moody’s Analytics made the prediction that “the rebound will not start until 2016, and then only modestly with 0.3% expected growth.”

All of this is great news for homeowners, who for many years have hopelessly watched their properties decrease in value. According to the Credit Suisse Global Wealth Report 2015, real estate assets make up 63% of the average French household assets, a relatively high percentage.

Interestingly, when measuring the economy by aggregate household wealth, France is the 5th richest world nation (ahead of Germany).

Therefore the stabilising prices will be of great comfort to a lot of French property owners.

In fact, stabilising house prices benefit the whole nation. These latest analytics all show that, after years of economic uncertainty, confidence is beginning to build in the real estate sector and people are buying again.

But why have 2015 and 2016 been catalytic years?

What caused so many years of declining house prices beforehand?

And how do property experts know that the nations real estate fortunes are set to change?

The answer to all of these questions, as ever, is not only in the real estate market itself, but can best be gleaned by looking at the finances for the country as a whole. With a better idea of the French economy, it’s easy to see where the failing property market links in, and see why experts are predicting change now.

After all, many believe that the French economy is currently, sluggish at best, and therefore in quite a similar state to the housing market. The economic woes that affect the nation are unlikely to leave the property market unscathed. According to the Organisation for Economic Co-operation and Development (OECD): “France’s fundamental economic problem is a lack of growth.” Similarly, the Credit Suisse Global Wealth Report claims that: “In recent years, France has struggled with [...] low growth and rising debt.” Perhaps it is no surprise that the housing market has been slowly declining if the entire economy is struggling to grow.

The Unemployment Crisis

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Paris, France

According to the table, there were a few countries which saw improving house prices despite the other worsening economic factors - negative market capitalisation and weak USD exchange rate, but in France, losses were reported across the board. This is partly because the reason behind the nation’s poor economy and poor housing market is a simple one - the unemployment rate. Unlike other countries where a poor economy can be blamed on a high deficit or governmental spending (which don’t tend to change the day-to-day business of citizens), having a high unemployment rate directly effects a large proportion of the nation. Plus, not only does it hurt the economy, but it can also lower morale around the country. It is the rate of unemployment which, according to the BBC, is “the most obvious social and economic evidence that something is amiss”.

Currently, approximately 3 million people are unemployed in France, which equals 10.2% of the workforce. This is rather high in comparison to the other G7 countries (the seven major advanced world economies according to the IMF). Currently, the rate of unemployment in the UK is 5.4%, in the US 5.5% and Germany 4.8%. Only Italy’s (12.4%) is worse.

France’s 10.2% is about the average unemployment rate for the Eurozone, which perhaps makes the situation seem a little less dire. However, with countries such as Spain and Greece included for the statistic, France’s place in the middle of the table is hardly enviable.

The problem only worsens when looking at the unemployment demographics. Almost 25% of job seekers under the age of 25 cannot find work, yet this a key age in regards to the property market. After all, first time buyers are crucial to the economy, as they pump more money into the system without getting any back (because they don’t have any existing property to sell on). Whilst there is no definitive statistic for the average age of a first time buyer, the general consensus appears to be around late 20s to mid-30s. Ultimately, this would be significantly pushed back if a quarter of the nation cannot get a job before age 25, and therefore cannot save for a deposit or be earning a large enough salary for mortgage re-payments.

The unemployment crisis also affects the property market because it results in people preferring rental accommodation rather than buying.

Renting is an attractive option for those who cannot afford to invest money into a home, or perhaps are looking for the fluidity of being able to leave if they cannot find employment. Therefore, you might think that at least the rental market would be a highly profitable part of the housing sector, however, even this doesn’t appear to be the case everywhere.

For example, it has been reported that whilst the disparity between demand and supply is very high in popular cities such as Paris, rents don’t quite reflect this. Firstly, there have recently been changes to the law to introduce rental caps in the most expensive areas of cities. Secondly, in France there are strict repercussions for landlords who raise rental costs during tenancies (without going through the proper procedure), yet these tenancies are often long term. Paris has never been thought of as a cheap city to rent in, however, many of its residents may be paying rental prices from a few years ago which don’t reflect their current true value.

So how can the government boost employment rates and kick-start the housing market again?

Many agree that France’s current labour rules are the main reasons the jobs market is so stifled. This is a sentiment shared by the OECD, the European Commission, and most importantly, from businesses around the country. The cost of hiring new workers, and the hassle of laying them off, leads to a general reluctance to employ new staff. According to the OECD, “France ranks among the countries with the strictest legislation of dismissal for open-ended and temporary contracts.” This leads to a dual labour market whereby those with jobs tend to be relatively secure and have options for promotions, whereas those without jobs (often young people with less experience) cannot get their foot in the door.

This is not a problem which has gone unnoticed by the government. In May 2016, a number of reforms to the labour laws were introduced in an attempt to make the jobs market more accessible. These including allowing companies to: > Lay off workers more easily > Negotiate holidays and leave (including maternity) > Have employees work for up to 46 hours per week, so long as it averages out at 35 hours (the historical maximum)

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Unsurprisingly, these reforms have not gone down with the majority of citizens who feel like they are losing their workers’ rights, and the government pushing through these labour laws has resulted in protests around the country. Despite the honourable intentions, the overall implementation has not been a smooth ride. According to the BBC, “one supporter of reform said it was turning into a ‘veritable catastrophe’”.

Ultimately, it appears that the rising unemployment rate has been a crucial statistic to watch when examining the housing market. In the most basic sense, there has been a clear link between the two since 2007/2008 when unemployment began to grow and house prices began to dip. Yet, although it’s arguably the most important reason behind the economy and housing market troubles of the nation, it is important to remember that are plenty of other factors which have affected property prices.

Another of which is the excess of available homes. According to Martin Janicko last year, “home sales are rising modestly, but with a ready supply of existing homes, sellers must keep prices down.”

His article went on to state that, since 2011, the French housing market has had a yearly overhang of 50,000 sellers over buyers, while in 2005 there were 80,000 more buyers than sellers”. So it appears to be a buyer’s market, just without a lot of people having enough money or impetus to actually buy.

Catalysts for change However, dire as this all sounds, now that the surplus of homes is diminishing, it’s actually proving to be one of the catalysts regarding the positive shifts in the French market. According to Mark Harvey, the head of global real estate agency Knight Frank’s French department; the excess supply that was evident for several years in areas such as Gascony and Provence has now largely been absorbed back into the market. Add to this the slow recovery in house building it is possible that when prices start to pick up they could do so relatively quickly due to limited stock levels.”

Another often-cited catalyst is the return of a different group to the French property market - the British. With prices of homes in the UK having soared over the past few years, a lot of French properties can seem like bargains.

Even though in the past British buyers have been put off by the expensive purchase fees (on average 10-15% of the price of a property), it can now still be cheaper than a UK equivalent.

Plus, those lucky to be on the right side of the property bubble in the UK (especially in the South East) may have found themselves to be ‘property millionaires’. These heightened fortunes may be part of the reason that, as Mark Harvey puts it, the “British buyers are back”.

After all, France has always been an appealing country for Brits looking to invest into overseas property. Not only is France a practical choice (a stable country close to Britain with fine weather) but they get to buy into the history and culture discussed earlier. Plus, as the online guide ‘completefrance.com’ puts it: with natural sites abound ... what this means for house hunters, apart from having gorgeous countryside on your doorstep, is that land is relatively cheap. British buyers are often astounded at the size of the gardens they can afford”. In total, it is estimated that there are 69,000 second homes in France with British owners.

And finally, this swing in momentum has also led to those waiting to buy, to actually take the leap. As Martin Janicko comments: “[French consumers] tended to back off apartment purchases in a house price-deflation environment”. However, people are more likely to want to buy if they don’t believe their new house or apartment will be worth around 2% less than it was 12 months prior. In total, according to Knight Frank, sales in France doubled from 2014 - 2015, and enquires from prospective buyers increased by an even more impressive 87%.

A bright future All of these reasons could lead to house prices swinging from a moderate decline to incline in only a few years’ time. The sentiment from Knight Frank’s Mark Harvey was positive - “It is possible that when prices start to pick up they could do so relatively quickly”. And on top of all these catalysts to prompt change, there are a few other key factors which seem to suggest an ongoing bright future for France’s economy and housing market as well.

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Marseille, France

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One of which is the upcoming French elections in 2017. So far, the current President, Francois Hollande, and his government haven’t had a particularly successful term, with some newspapers even going as far to call Hollande France’s least popular President ever. A recent Times article summed him up by saying that “his obsession with pleasing everyone, means that nobody is happy”, and that the whole presidency has been “catastrophic”. Going back to the labour reform laws for example - they should benefit the whole country, however they’ve been met by massive protests in many major cities. France is clearly a nation unsatisfied with the way it is being run and is ready for change.

The opportunity of a new leader, with a clear economic strategy and goal for the housing market, undeniably boosts public morale and therefore draws people back to the market. This is an idea shared by Mark Harvey who noted the demand from domestic buyers strengthening in part thanks to “a more positive political sentiment.”

Record low mortgage rates The final major factor in the upturn of the housing market is the renewed interest in the housing market is the current mortgage rates available.

France is currently seeing record low mortgage rates, dipping beneath 2% in March 2016.

The Observatoire Crédit Logement CSA has recently released figures showing that rates on properties around the country fell to as low as 1.73% for those with a 15 year loan and an average low of 1.97%. For those who have been waiting for prices to stabilise to buy, this is another impelling reason to act now. Especially as most analysts expect mortgage prices to stay relatively similar this year, but begin nudging back up again in 2017.

Although it must be said, that this rate doesn’t include the various (and often expensive) fees associated with buying French property.

All in all, it seems like the next few years are really going to be a turning point for France’s housing market. Most agree that 2016 will continue to see property prices beginning to increase rather than decrease and that this momentum will continue to grow in 2017. A point reiterated by Janicko who predicted next year will see the real change for France: “Not until 2017 will decreasing unemployment and long-term joblessness, higher incomes, firming demand from abroad, and a more optimistic economic outlook contributes to a modest rebound in house prices.”

As for 2018 and onwards? The sentiment is positive but no one knows for sure. Ultimately, France is a relatively safe bet for property with plenty of regulations for buying and selling, but it’s still a large and an incredibly varied country, which is reflected in its real estate market.

Diversity is key!

As with anywhere in the world, there are the big cities with their apartments and suburbs with their houses to invest in, but France is also home to the mountains with their ski chalets, the Riviera and south coast’s villas, the countryside chateaux and ancient homes, as well as holiday gîtes for the millions of tourists who visit. Those looking for a slice of French real estate have a positively enormous selection of types of property, climate and scenery to choose from right now. As ‘completefrance.com’ put it, “diversity is certainly key when it comes to French property.”

What this also results in is that different regions and different types of home will all go through their individual ups and downs in the property market.

France is such a large country that although house prices may be improving in general there may still be pockets of decline around.

Mortgage rates are a classic example of this. Although they are on the whole declining, there is quite the disparity in rates going from region to region. That’s why it’s important to examine other economic and social factors, such as 2017’s presidential elections and unemployment, which give a strong indication of national sentiment (a crucial aspect of the housing market).

So all in all, if you ever wanted to buy a property in France, now is a great time. Make the most of the lower mortgage rates and low house prices before they begin to rise again in the coming years. Just don’t forget to do further research into the localised markets if you want to ensure the best deal.

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Change in market capitalization, house prices and USD exchange rate (%), 2014-2015 United States

United Kingdom

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India

Germany

France

China

Canada -40 House prices

Market capitalization

-20

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THE EU REFERENDUM Should we stay or should we go?

Words : Hannah Wilde | View : Maryna Kulchytska

Thursday 23rd June 2016 marks a momentous day in the history of the United Kingdom—this is the day that the country votes on its status within the European Union. For years the UK’s membership to the EU has been called into disrepute by disenfranchised Britons, with many questioning why the country insists on paying millions to be a part of the EU economy for what they see as very little financial benefit in return. This is just one of the many arguments that have led the UK to the very precarious position in which they now find themselves, with the fate of the country resting in the balance of the result of a country-wide referendum.

But what exactly is the EU Referendum which has been so widely publicised in recent months? The Referendum is a vote in which every eligible citizen of voting age (in this case all citizens of Britain, Ireland, and citizens of the Commonwealth, which includes the British Overseas Territories and the British Crown Dependencies) can take part, of which they will be asked to give a “yes” or “no” answer to the polar question: “Should the United Kingdom remain a member of European Union?”

This very question came to pass because of civilian grumblings as to what the UK was actually gaining from being a part of the EU, which was addressed by soon-to-be re-elected Prime Minister David Cameron in his 2013 pre-election speeches, promising a referendum on the UK’s position in Europe if the Conservative Party secures another win. Therefore, as a result of the Conservatives’ landslide victory, Cameron made true on his

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promise of an election and so here we are: As promised, the future of the UK rests on this one decision, a decision so significant that it could have repercussions for decades to come.

What is the European Union?

Before embarking upon the epic question of whether the UK should leave the EU, first one must understand what the EU is. To use its oft-used abbreviation, the EU is, as described by the BBC “an economic and political partnership involving 28 countries”, founded post-World War II to foster economic collaboration. The primary reason for forging connections with European neighbours was based around the idea that countries that trade together will be less inclined to go to war against each other, thus encouraging future peaceful cooperation. Operating like an independent country, the EU has its own currency (with the Euro adopted by 19 of its member-states), its own parliament and its own regulations, as well as operating a “single market”, allowing goods and citizens to move around freely between all 28 member-states.

Because it acts as if it were one singular country, the European Union needs to be regulated accordingly, having a selection of key institutions in place to work together towards the successful running of the Union.

The European Commission is in place to deal with the civil running of the EU from budget allocation to creating new civil laws; The European

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Parliament, housing 751 MEPs from all over Europe, votes on all EU laws proposed by the European Commission; The Council of the European Union allows for a democratic output for each member-state’s individual Governments, with representatives from each meeting in Brussels to offer their input on the political direction of the European Union. Naturally, with so many Governments acting on so many various vested interests, The European Court of Justice is the last institution that governs the EU, acting first and foremost as a peace-keeper between the three aforementioned regulatory bodies, as well as ensuring each individual member state adheres to EU laws and regulations.

As it currently stands, the UK relies heavily on the EU for many things, but it pays a significant price for this privilege—as of last year, the UK was the third-highest contributor to the EU’s economy, contributing 12.75% to the EU’s annual budget (equating to a huge €18.2bn). Considering that just under half of the EU’s budget in 2015 came from just three countries— Germany (21.36%), France (15.72%) and the UK (12.75%)—this certainly looks like these three countries are singlehandedly propping up the EU’s economy, especially seeing as the remaining 25 member countries when averaged out paid an equal 2.014% apiece for the same privilege afforded to Britain at a 10% mark-up. Such discoveries were what led to a public outcry, demanding the evaluation of the EU’s benefit to the UK, and whether we should in fact stay within the confines of an economy so heavily restricted by bureaucracy, conflicting interests and crippling financial bias.

As with most arguments, there are two sides to every story, and in this case we have the Brexit campaigners in one side (dubbed “Eurosceptics”), and on the other side those that wish to remain in the EU. The battle thus far has been fierce, with the UK press in the run-up to the Referendum rife with ample back-and-forth across both sides of the fence, with each aiming to besmirch and trivialise the opposition.

Here Global Property Scene will go above the parapet, looking at both sides of the Referendum debate that has seemingly split the country.

Leave the EU Those wishing to leave the European Union are very vocal about their choice, led by their most outspoken advocate former Mayor of London Boris Johnson, as well as flanked by other such influential heavyweights like actor Sir Michael Caine and Dragon’s Den star and business mogul Duncan Bannatyne. Especially for this occasion, the much-used portmanteau ‘Brexit’ was coined, which rather deftly depicts a world in which Britain would leave the EU. Without a doubt the biggest bugbears for these self-professed ‘Brexiters’ are the stifling bureaucracy of the EU, its exorbitant membership fee (which many sceptics believe the UK doesn’t benefit from in return), and that the EU hinders rather than helps UK growth. All significant statements, but all which do come with some semblance of truth.

Let’s begin by tackling the biggest annoyance for Eurosceptics—the EU’s membership fee. According to official figures, Britain paid in a massive £13bn last year to the EU economy, yet only received £4.5bn in spending returns—in real terms, the UK’s NET contribution was £8.5bn, equivalent to 7% of the country’s annual healthcare budget. When looking at this cost/benefit analysis, it certainly looks as if Britain isn’t getting nearly enough for its money. In addition, another thorn in the side of Brexiters is the fact that, while Britain is stuck with a bill of £13bn—only eclipsed by Germany and France last year who both contributed more to the EU than Britain—many other EU countries escape with a bill much less sizeable than Britain, meaning they get all the benefits of the EU’s single market without the significant costs attached. This imbalanced economic structure many see as prejudicial, leading to much debate about how much Britain actually stands to gain by remaining in the EU—if the above example is to be taken at face value, it certainly doesn’t seem like very much. This argument is even more prominent since it has come to light that MEPs monthly mandatory trips to Strasbourg cost the UK approximately £136m every year, all of which is funded by the taxpayer. This then gives Brexiters more ammunition, with the rationale that this huge £13bn budget (as well as the ancillary costs that come hand-in-hand with EU membership) could have been so much better spent elsewhere away from the EU, where given half a chance it could have made a real difference to the country’s healthcare, education or national security.

Next on the list for disillusioned Eurosceptics is a double-edged sword: the UK’s relative lack of power against the might of the EU, complete with

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all its thousands of laws, legislations, rules and restrictions. The overriding feeling between those wishing to leave the EU is that the Union has already taken too much power from the UK Government—but not content with that, the EU is keen to create an ‘ever-closer union’ so that one day there may be such thing as a “United States of Europe”, a United States in which Britain would be very much a part. Many are keen to ensure the UK plays no part in this United States, instead wishing the country to maintain its independence and identity, which could be all but snuffed out if the EU keeps up their power offensive across Europe.

Furthermore, as the saying goes: with great power comes great responsibility—and that particular sentiment rings true with the EU. The mountain of bureaucracy that a member country has to adhere to during its EU membership is seen by many as doing nothing but hinder small businesses and the UK’s economy at large. By far the bread and butter of the leave campaigners’ arguments for leaving the EU comes down to the country freeing itself from the chains of EU-related bureaucracy, with the almost unanimous feeling among Eurosceptics being that if the UK distanced itself from the restrictive and costly EU rules and regulations then it could leave Britain free to reinvent itself as a Singapore-esque supercharged economy. This argument, although perhaps biased, is not without its merits, with the Daily Telegraph even admitting that the UK’s departure from the EU could open up the Pandora’s Box that could lead to the collapse of the whole European project so that the UK looks relatively safe in the face of an increasingly uncertain EU. There are hundreds of other areas in which Eurosceptics believe the UK would be better outside Europe, not least from trading, immigration, employment and economic standpoints, but by far the gist of the leave campaign is centred on the UK maintaining its independence and identity

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through breaking with the European Union.

Stay in the EU Fearing the repercussions of the fallout that may come as a result of Britain leaving the EU, it does seem like a vast majority of politicians of all parties are advocates of staying in the EU, with the most influential of those being UK Prime Minister David Cameron and US President Barack Obama. Other people of note backing the campaign are the Apprentice star Baroness Karren Brady, legendary physicist Stephen Hawking and actress Emma Thompson, all with compelling arguments to stay in the European Union, ranging from economic competitiveness and research funding to collective collaboration—all of which reinforce the campaign’s central message “Better Together”.

Those seeking to undermine the Eurosceptics’ argument say that, rather than being restrictive and cumbersome that Eurosceptics claim, the UK’s contribution to the EU budget is just a drop in the ocean compared with the benefits to UK businesses of having access to the EU single market.

This offers immeasurable financial advantage for Britain on free trade and inward investment opportunities alone, especially considering that a massive 57% of UK trade is done with EU members. If this single market (the world’s biggest free trade area) is suddenly closed off to the UK—as well it might be should the UK leave Europe—businesses and trade in the UK would suffer irreparably.

Another reason ‘stay’ campaigners defend the UK’s European position so vigorously is that, amidst all the uncertainty that could come from an EU exit, one thing that could be lost is Britain’s position in the world. At the moment, the UK enjoys free trade with the EU as well as a decades-long

allegiance with the USA, both of which benefit the country immensely and bring both economic and political security amongst other remunerations.

However, should the UK break from the European Union, its position in the world rankings would be seriously called into question, with the Economist even going as far as to say that Britain would find itself “a scratchy outsider with somewhat limited access to the single market, almost no influence and few friends” in the event of a Brexit.

It seems that US President Barack Obama is along that same wavelength, a world leader who has always been vocal about his position firmly within the ‘Britain-should-stay-in-the-EU’ camp. In an open letter written in British newspaper The Daily Telegraph, President Obama wrote a glowing review of the EU: “When it comes to creating jobs, trade and economic growth in line with our values, the UK bas benefitted from its membership in the EU—inside a single market that provides enormous opportunities for British people”, before driving the point home: “The European Union does not moderate British influence—it magnifies it […] enhancing Britain’s global leadership”.

Despite international acknowledgement from the leader of the free world, perhaps stay campaigners’ strongest and most vehement argument in keeping with their famous “Better Together” mantra is in defence of the freedom that being a part of the European Union offers, namely the flow of people, products and money across Europe. One thing that truly benefits the UK is that—just like one collective country—its people and products can move around between the EU’s member states with ease, meaning that a shared and collaborative relationship between the country and the rest of Europe is promoted and sustained. However, if the barriers close between the UK and the EU, the country risks giving up all these benefits and could be resolved to a fate of being a maverick isolated state, away

from the protection of the collective might that is the EU. Stark defenders of remaining in the UK attests that NET migration from the EU helps rather than hinders the UK’s economic growth, with the Office of Budget Responsibility reiterating that the UK economy “relies on migrant labour and taxes paid by immigrants to keep funding public services”. By limiting the amount of Europeans allowed through the country that would certainly come as a result of a Brexit, the country risks closing the door on a combined population of 500 million, especially when all levels of the UK employment spectrum are currently bolstered by EU migrants, from doctors and lawyers down to manual labourers.

After all, Emma Thompson’s profound statement could not sum up the stay campaign any better: “We should be taking down borders, not putting them up”.

One could spend all day discussing the pros and cons of staying in the EU, but one thing is for sure—the deadline is approaching, the decision is looming, and citizens of the UK will have to live with the consequence of this decision for the rest of their lives. Nobody without a crystal ball can know for sure what will happen in the event of a ‘Brexit’: everything is so speculative that forecasters can’t even say for sure what will happen to the economy if the UK broke with the EU (estimates range from a GDP surplus of 4% to a deficit of almost 6%).

Both sides are equally compelling, but only time will tell which one will emerge victorious. To paraphrase the incredibly apt words of the 1982 hit song by British band The Clash, the million—or perhaps even billion— dollar question comes down to this: Should we stay or should we go?

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LOOKING FOR PROPERTY TO BUY? BE SURE TO VISIT THE

The UK’s largest and longest running property investment event is presented at ExCeL London every April and October.

The major names in UK and international property will be out in force with plenty of ‘off-market’ bargain deals and show exclusives to choose from.

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THE BEAUTIFUL GAME Euro 2016 Words : Alex Timperley | View : Frederic Legrand

France plays host to the 15th UEFA European Championship in June. The tournament has been expanded to include 24 teams and will be played across ten cities in France, including Lille, Lyon, Bordeaux, Marseille, Saint Denis and, of course, Paris.

This will be the third time the tournament has been hosted on French soil.

The inaugural tournament was held in France in 1960 and would return there in 1984 as the great Michel Platini led the host nation to victory.

The French will be hoping to repeat that feat this summer, but formidable opposition in the form of Germany, Italy, Spain and perhaps even England stand in their way.

The blanket coverage of the big teams means that it can be easy to forget that football is about more than the biggest countries and the richest players. The narrative around international football tends to concentrate on the big teams. The clashes between the old European powerhouses and their world famous players will dominate the press coverage in the lead up to the tournament. Every result will be looked at through the prism of how it affects one of the more likely winners.

Should Roy Hodgson start Wayne Rooney? Can Germany continue their dominance? Will Mario Balotelli make the cut for Italy? Can Spain bounce back from their anaemic showing in the 2014 World Cup?

Global Property Scene would like to posit a further question: Does anyone really, in their heart of hearts, care about these things?

We certainly don’t. Fundamentally football is about the small stories which make up the sport, not just about who has the best chance of winning.

Finding out how a team got to Euro 16 is just as important as wondering what they’ll do once they arrive in France, and it is certainly more interesting.

Here are four stories which will probably get lost among the glitz and the glamour this summer…

Iceland The Icelandic national team contested their first competitive fixture in 1946 following national independence from Denmark in 1944. Since then, no one has really expected them to achieve much due to one implacable enemy – geography.

Iceland’s remote location ensures that the population, and the pool of available sporting talent, is so small as to be negligible. Having approximately 320,000 inhabitants puts Iceland in the same league as Leicester, a relatively small English city and home of the current Premier League champions. As raw materials for building an internationally

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Saint-Denis, Paris

Club: none Opening: 1998 Capacity: 80,000

competitive football team go, that does not leave a lot to work with.

Then you have to consider the climate itself. Iceland’s extreme northerly location ensures that the country is bitterly cold for most of the year. If football cannot be played for more than four or five months continuously, the development of young players will suffer. In turn the leagues and the national team have never really soared.

Lars Lagerbäck, the national team manager, may insist that he is no hero for achieving qualification for Euro 2016 despite all the disadvantages presented to him. It is obvious that this feat is in large part down to him, no matter how strongly he protests, but essentially Lagerbäck is correct: he is not the sole hero of this story.

The remarkable thing about Iceland’s success is that it is not just down to the efforts of the manager and his players. More than any other team at Euro 2016 their success has been a nationwide effort. The small but focused population means that many people have a stake in the team’s success and many more have had a direct hand in making it real.

In the early 2000s a plan was put into place to work around the adverse climate and put Iceland on the map as a footballing nation. Full sized artificial indoor pitches were built across the country, so many in fact that almost every school in the country now has one. They are open for anyone to use and have allowed children to play football all year round. In addition, there is approximately one UEFA trained and registered coach

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for every 500 Icelanders. That is a rate twenty times better than that of England.

This generation of players are the first to have had the benefits of the indoor footballing facilities and the high quality coaching put in place alongside them. At the 24th time of asking Iceland have qualified for a major tournament and the timing of that is no coincidence. The country invested in its players and the players fought hard in return; qualification was the reward for punching so far above their national weight. Iceland currently has by far the most FIFA points, the widely accepted measure of competitive quality in international football, per capita of any team ranked in the world’s Top 50.

Around 1% of Iceland’s population, 3000 people, followed their teams to away games in the qualifying groups. That is equivalent to over 500,000 people following England around Europe, approximately 600,000 following France or over 800,000 people going to Germany’s away games.

The success of the Icelandic team is the success of its people.

Northern Ireland Northern Ireland is another small country making their European Championships debut which has defied the odds to qualify for Euro 2016.

Not even the fans expected to see Northern Ireland playing football this summer.

Northern Irish football expert and writer Lee Hurley of Dailycannon, says “it has been a colossal achievement.”

According to Hurley, Northern Ireland “have been so rubbish for so long that fans tend to expect very little. The fact that Northern Ireland topped the group meant that they really did make it on merit and not because of the extra places on offer this year. There was a real sense of pride in what this team of relative nobodies achieved. We’re a very small nation who still remember single victories with the passion of supporters who watch their countries win tournaments. We are currently 26th in the world, ahead of teams like Poland, Russia, Czech Republic, USA, the Republic of Ireland and Sweden. I’m still not quite sure how that happened.”

Northern Ireland qualified top of a group containing Greece, Romania, Hungary, Finland and the Faroe Islands – not the strongest group of all time, but not one in which they would be expected to finish first. Their reward is the daunting prospect of facing Ukraine, Poland and the reigning world champions Germany in June. It is unrealistic to believe that Northern Ireland has a chance of qualifying from this group, or that they will even win a game.

Football is hugely popular in Northern Ireland but the national league

and the teams in it are poor. As football progressed across most of the world over the last few decades it went backwards in Northern Ireland.

Laure James, a journalist reporting on Northern Ireland for Sky Sports, the Sunday Mirror and UEFA among others confirms this, saying “the domestic league here, known as the Northern Ireland Football League, is semi-professional and some players are on amateur contracts so therefore only claim expenses. If we do breed any very good players, they’re usually sold across the water for, on average these days, between £50,000 and £100,000.”

“Facilities and coaching standards are however, improving and that has helped to develop a better quality league. The standard of refereeing however can leave a lot to be desired.”

The glory days of the 1958 and 1986 World Cups are long gone. Northern Ireland no longer produces players like Danny and Jackie Blanchflower, Norman Whiteside or George Best. The current side cannot hold a candle to the great sides of the past and long term journeymen such as Kyle Lafferty, Jonny Evans and Niall McGinn are relative nobodies compared to the men they will be lining up against in France.

However, this is a team which transforms into something more than the sum of its parts when they pull on the green and white shirt. Manager Michael O’Neill, a League of Ireland and Setanta Cup winner, has created a team with a lot of heart and the will to make their countrymen proud.

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Laure James adds that O’Neill has “vitally, and sensitively, appealed to our Catholic players. He’s made Northern Irish football largely a sectarianism-free environment and brought the whole country together over his success. Northern Ireland fans love him - and those who support the Republic in Northern Ireland, can’t criticise. The ones I’ve spoken to often speak admiringly of him.”

Stade de Nice, Nice

Northern Ireland have likely reached their natural ceiling and there is little hope of further progression, but O’Neill and his team, representing a small nation with a history of having only small victories to celebrate, are going to the European Championships, and that is a big deal. Whatever happens this summer the team have already achieved something remarkable and will make the most of their time in France, win, lose or draw.

Albania Euro 2016 will also see Albania take their bow on the international tournament stage. A story of steady improvement over the last two decades culminated in qualification from a group including continental heavyweights Portugal, Denmark and Romania. This is a significant achievement and manager Gianni de Biasi and his team are deservedly being treated as national heroes at present following the 3-0 victory over Armenia which secured qualification.

The joyful celebrations which followed felt more meaningful than most.

Albanian football history is linked with the country’s political history in a more explicit way than that of most, and qualification for Euro 2016 reflects the current state of national optimism.

During the brutal dictatorship of Enver Hoxha, football in Albania was at the mercy of politics. Hoxha boycotted European competition for decades, meaning that Albania was not represented in European competition for many years. Until, suddenly, they were. A disagreement with the USSR led Hoxha to lift the ban in order to spite the Kremlin.

Teams such as Partizani Tirana, Dinamo Tirana and 17 Nentori (now known by their original name of KF Tirana once again) were able to compete outside of Albania. Although, as it turns out in hindsight, only one of them would ever compete abroad at the same time.

Albanian teams got a reputation for withdrawing from European games at the last second. Many explanations for this were put forward, the most intriguing being that Albanian teams would refuse to play against teams from countries which were seen to have been too sympathetic to the Nazis during World War Two, such as Norway or Austria.

Craig McCracken of Beyond the Last Man does not buy into the theory that the withdrawals were purely ideological. Albanians were banned by law from leaving the country after 1968. This coincided with the fact that in no season between 1962 and 1985 (the year of Hoxha’s death) did Albania take up its whole allocation in European competition. McCracken believes that “what was telling was that never, at any stage during this entire period, would two Albanian clubs be playing matches outside the country at the same time.” Could the withdrawals simply be a logistics issue? Teams travelling outside Albania during this period would be accompanied by Sigurimi, the secret police. Defections were always a worry and guarding two teams at once would be both resource heavy and very risky.

The restrictions of the Hoxha dictatorship are no longer a factor, but modern Albanian football continues to reflect political tensions. This was highlighted by the recent Euro 2016 qualifying campaign.

Albania were drawn in the same qualification group as Serbia and the tie ended in chaos after Serbia fans chanted “Ubij, ubij, Šiptara” (“Kill the Albanians”) and a peace making Albanian responded by using a drone to fly the symbol of Greater Albania over the pitch. A large riot ensued. Bitter, resentful memories of the 1998 Kosovo War still animate people on both sides of the border and inevitably spilled over into the football. The match was abandoned and Albania was awarded a 3-0 win by default which proved vital for their qualification to Euro 2016.

Albania captain Lorik Cana summed up the mood of a nation when he said “[Serbia] will now watch us in France while drinking beer in front of the TV.” It will be interesting to see how far a group of players motivated by a unique form of national pride can go. The Albanian diaspora is spread across Europe and North America and many second generation Albanians currently represent other countries, notably Switzerland. Will this new

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Club: OGC Nice Opening: 2013 Capacity: 35,624

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Stade Pierre Mauroy, Lille

Club: Lille OSC Opening: 2012 Capacity: 50,000

success prompt the next Xherdan Shaqiri or Granit Xhaka to represent Albania, their ancestral homeland? No one knows, but the future is suddenly a lot brighter for Albania on that front, although the acceptance of Kosovo as a full UEFA member may complicate this issue even further.

France The hosts have been through a tumultuous journey over the past decade and must hope that catharsis waits at the Stade de France on the 10th July. Saint-Denis will host the final and the French team have a very good chance of lifting the Henri Delauney trophy.

France finally triumphed over Italy, Turkey, Norway and Sweden to win the rights to host Euro 2016 on the 28th May 2010. Less than a month later the national team would implode at the World Cup in South Africa.

French striker Nicolas Anelka insulted the then-manager, Raymond Domenech, after a loss to Mexico which effectively eliminated France from the World Cup. Anelka was suspended and his refusal to apologise was backed by his team mates who proceeded to enthusiastically mutiny.

Jean-Louis Valentin, the managing Director of the Fédération Française de Football (FFF), said “I am disgusted. It’s a scandal for the French, for the federation and the French team. They don’t want to train. It’s unacceptable. As for me, it’s over. I’m leaving the Federation. I’m sickened and disgusted.” Reports state that he proceeded to drive off angrily in his car.

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A new start was envisioned for Les Bleus as they approached the start of Euro 2012 in Poland and Ukraine, but similar issues lingered.

Indiscipline and ill feeling was rife among the players and a cloud hung over the squad. A disappointing group stage campaign and a laughable, limp performance against Spain ensured that Laurent Blanc’s team went home unhappy, unsuccessful and embittered. Plus ça change.

The genesis of the modern French team can be located after Laurent Blanc departed and his replacement, France legend Didier Deschamps, arrived. Andrew Gibney of French Football Weekly says “when Didier Deschamps came in, that’s when momentum began to build. No longer did he look to just pick France’s best players, he wanted to pick the best squad.” This has led to “a real togetherness, a great blend of youth and experience. Deschamps picks players he trusts, plus talent that he believes in and that seems to have come together beautifully.”

Following a dismal performance in Euro 2000, the German Football Association set about a root and branch reform of youth football in the country in order to propel Germany towards the top of the game once again. The ultimate recognition of this approach was their victory in the 2014 World Cup. France did not undertake such reforms. There was no grand inquest into the national football structure. Gibney believes more prosaic reasons lie behind the recent success, arguing that “France has always developed some amazing young talents. It has more to do with Deschamps’

philosophy and his control over the squad that helped them improve.

Reaching the quarter finals in Brazil in 2014 showed that they were on the right track and banished the bad memories of South Africa. It was so close to failure though. After losing 2-0 to Ukraine in the World Cup playoff the team were at their lowest, but the spirit, desire and amazing atmosphere that saw them win the second leg 3-0 sparked something in the players and the fans.”

The strategic planning and national force of will which pushed Iceland to qualification. The victories of a Northern Irish team which defied both the low expectations of their fans and the footballing decline of their own country to make it to France. The bizarre and often sad history which defines the nation of Albania and the team which flies its red and black flag. The rebirth of the French team from a cauldron of mutiny and self-sabotage to perhaps emerge triumphant on home turf.

“There’s no reason why they can’t go all the way in Euro 2016.”

UEFA has been criticised for expanding the tournament to include more teams. The previous format with 16 countries was the most competitive international tournament in world sport. Despite this, the benefits of expanding the tournament are clear to see.

Stopping this France team might become something of a guessing game for defenders. The improvisational style of the team and the individual talents of players such as Antoine Griezmann, Paul Pogba, Blaise Matuidi and Kingsley Coman make them extremely difficult to predict. They are turning into the sort of team that it is virtually impossible to plan for.

Significant obstacles stand in their way – not least the magnificent German team – but if everything goes well, and they get a bit of luck, it is hard to see many teams who can stand up and beat this French team.

The beauty of football is that anyone can play it anywhere in the world, even if you have to use jumpers for goalposts and a rolled up ball of plastic bags instead of a proper football. The game is for everyone and it belongs to everyone. Carrying this ethos through to the highest levels of the game can only be a good thing.

It is going to be a fascinating tournament It is likely that one of big names will prosper this summer and end up as the eventual winner come the 10th July, but whatever happens, whether the Germans win or the Spanish return to form, don’t forget the smaller stories.

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Architecture Planning Structures Urban Design

WHAT’S THE COST? Interest rate changes & fluctuations, how does it affect property?

Words : Will Leyland | View : Johnsey

March 2009. Lilly Allen was at the top of the UK charts with aptly named ‘The Fear’ and money was consuming the lime light in Hollywood as Slumdog Millionaire made a mega star out of Dev Patel and his co-star Frieda Pinto.

The previous year had seen the world economy come agonisingly close to a complete collapse after Lehman Brothers and other financial institutions on Wall Street started to go under amid complete panic on the stock markets. The UK saw its first bank run in over a century as customers queued round the blocks to withdraw their money from Northern Rock as the news began to filter through that the mortgage lender and savings bank had left itself badly exposed to the toxic debt crisis that was beginning to envelope the UK economy. Things had taken an almost apocalyptic turn and weren’t looking set to improve in the foreseeable future.

Fast forward twelve months and with apocalypse narrowly avoided The Bank of England had announced shock measures to combat impending financial disaster in the aftermath of the crisis with the central bank announcing that it was to cut base interest rates to their lowest ever point, just 0.5% from a previous average of 7%.

These rate cuts, along with quantitative easing, were part of the newly formed strategy by the bank to combat a quickly collapsing economy and housing market. Shocked commentators at the time called the move desperate, with Tim Sutcliffe of financial advisers Pi Financial saying: “The

Bank of England is fast running out of options - with only one more 0.5% rate cut to fall back on, they are going to have to start looking for another battle plan”.

At the time these were considered short term emergency measures, but this year marks the seventh anniversary of these cuts and the seventh consecutive year which the Monetary Policy Committee voted to keep the rates at 0.5%, but what does this mean for consumers and investors? Are we likely to see a continuation of these ultra-low interest rates or might we see a hike in interest? Is there even a possibility they could drop further?

Global Property Scene answers key questions for property investors as we see increasingly poor economic figures and demands to raise rates.

What do low interest rates mean for the average person?

In simple terms the Bank of England interest rates dictate how much it costs to borrow money. There is a committee tasked with setting the base rate of interest at the central bank and they have just announced a continuation of record lows for the seventh consecutive year.

This has been explained by many commentators as coming off the back of weak global growth figures, low inflation and unstable markets across Asia and China.

There are a number of ways that low interest rates affect the average person and the first is mortgage rates. In times of economic turmoil banks

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Oxford, UK

often struggle to convince people with low disposable income to take on debt and so will often slash interest rates and put their money effectively ‘on sale’ to consumers in order to drum up business. This means seemingly good news for first time buyers and anybody looking for a new mortgage deal as interest rates plummet and their monthly payments follow suit.

That’s not the whole story though as Lloyds bank recently announced that there is no longer a city in the south of England where house prices are less than seven and a half times average local incomes. The report also notes that the crisis has reached its worst level in eight years.

Whilst mortgage rates stay low for those lucky enough to be on the housing ladder it means extremely bad news for savers as banks are unable to offer competitive savings rates as the profits from lending money drop sharply. The Guardian recently reported that the average savings rate in the UK has dropped to a dismal 0.61%.

The logical step for the average consumer would be to take the extra disposable income in this case and pay as much as possible into their mortgage in order to make the most of these low repayment rates. This is the advice being widely circulated as average savings accounts are providing miserable returns but consumers seem to be taking little notice as household debt sky rockets. This would suggest rather than using low interest to pay off large mortgages the majority are instead splashing out on new purchases and low repayments.

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The final effect on consumers is cheap borrowing on loans, credit cards and other household debt. With consumers and young professionals still struggling to make inroads into the property market, the UK has seen a spending frenzy on other items such as cars, appliances and travel.

In fact, it is being reported that household debt has sky rocketed due to these extremely low rates and the UK population has embarked on a massive debt splurge not seen in over a decade. The annual growth rate of consumer credit hit 9.3 per cent in February, the highest pace since December 2005, the Bank of England’s latest credit conditions survey revealed.

So if mortgage take up isn’t increasing by any impressive measure then where is all the money being spent? To put it simply, it’s being spent on new cars, with cars purchased on finance from dealerships pushing past one million in the last year alone.

Car sales on finance have never been this high, rising by 22 per cent in just one year. The popularity has increased thanks in part to cheaper loans to purchase new vehicles. Rising numbers of households are also taking advantage of record low rates to take out personal loans. These are often used for home improvements, as well as major purchases or debt consolidation.

All in all consumers are set to benefit from low interest rates for the foreseeable future, meaning cheap borrowing on credit cards, loans and

hire purchase agreements. However, in good news for property investors, it seems that the general public are steering their disposable income away from first time house buying as affordable housing stocks continue to decrease and remain comfortable in renting through the private sector.

What can we expect from mortgage rates?

To see the wider picture for the future of mortgage rates, it’s necessary to look at it from a consumer perspective and also an investor perspective.

In the short term there seems to be a wide consensus among economic commentators that The Bank of England has no plans in the near future for rate rises. This certainly means good news for consumers and first time buyers, with HSBC recently releasing a 1.99% five year fixed rate mortgage and other lenders expected to follow suit. On the face of it this is extremely encouraging news, but is also combined with worrying figures for low income families as the bank announced it will require a 40 per cent deposit to take advantage of the eye-catching deal. Those looking to upsize or re-mortgage will find that now is a good time to do so, with many being nudged by brokers in to short term fixed deals to take advantage of the low rates. The question remains whether the average person can take advantage of these new measures and claw their way on to the housing ladder. It’s being reported that banks have broadly got to grips with the tougher regulations introduced in April

2014 dictating affordability checks and home buying is now approaching normal levels in some areas, but first time buying for most remains out of reach as lengthy application processes and stringent background checks disqualify those with even slight smudges on their credit records.

A similar situation should continue then with existing home owners able to take significant advantage of the situation, whilst those struggling will be forced to continue looking on enviously.

So what’s the outlook for buy-to-let landlords then? Largely positive but with reasons for caution it seems. Interest rates for buy-to-let mortgages continue to fall whilst the variety of deals on offer across the market continue to grow meaning an extremely competitive market for buyers.

Financial data scrutineer Moneyfacts says that the average new two-year fixed rate buy-to-let mortgage is currently priced at 3.32 per cent, down from 3.59 per cent a year ago and compared with 5.21 per cent five years ago.

The buy-to-let mortgage climate remains rosy and with interest rates sitting at impressively low rates this is having positive effects on yields across the sector, as gross rental yields for the end of 2015 averaged 6.3 per cent, according to Kent Reliance, a slight reduction from 6.4 per cent in the third quarter. Landlords expect them to remain at the same level as 2015 over 2016, giving an average figure of 6.4 per cent.

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The economic outlook isn’t exactly improving at a rapid rate with glum news being released almost daily and this has given birth to rumours that major western economies such as the ECB, US and UK central banks may even take the unprecedented step of introducing negative interest rates.

Negative interest rates would mean that banks wishing to deposit their cash in the central banks’ coffers would need to pay for the privilege and the concern among economists is that this would destroy much of the bank’s profits, with some suggesting it could mean that people wanting to continue their savings relationship with high street banks may even need to pay a monthly fee.

The European, Japanese, Swiss, Swedish and Danish banks are already operating negative interest rate policies and this has meant extraordinarily low mortgage rates for both consumers and landlords alike, so the question that needs to be asked will be are negative rates good for me?

The answer for property investors seems to be a resounding yes.

What can we expect from property demand?

Well it depends on where you live or invest, with those in the South seeing any hopes of home ownership rapidly disappearing with average prices in Oxford at 10.68 times local earnings. Winchester is a close second at 10.54, with London third at 10.06.

It’s certainly positive to have affordable mortgage rates and a wide choice of products in the market place, but that certainly doesn’t seem to be improving the prospects of first time buyers even with the introduction of government measures to boost these figures.

Wage growth has fallen far behind the rise in house prices, said Lloyds, with affordability worsening for the third successive year. The average home in a city in the UK now costs 6.6 times average local earnings, up from 6.2 last year. The trend certainly seems set to continue into the near future.

Low interest rates and increasingly cavernous differences between income and house prices have led to a market in which landlords are thriving. Demand for rental properties continues to increase month-on-month and year-on-year in real terms.

The logical conclusion to draw then is that as rates continue at unprecedented levels and record setting lows this means good news for those able to afford property or those with an existing portfolio. Those struggling to get on to the housing ladder will continue to struggle regardless of new levels of affordability as they fail to meet the strict criteria set by a majority of lenders and targets for deposits. Demand for property stock will stay largely at the same levels, but as the working age population begins to increase and have children we are seeing demand for rental property increase at steady and unchanging rates.

Any talk of rate increases are a long way away so for the majority on fixed term rates they can rest easy knowing that most reports in the media have the next 0.5% rate rise marked for 2019.

Fears about stamp duty increases have started to ease with positive figures emerging recently from industry analysts meaning as ever the outlook for investors remains defiantly optimistic in an economy struggling for good news stories.

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STAGING AN EVENT The true cost of hosting a major sporting event

Words : Hannah Wilde | View : Lu Jinrong

The two biggest sporting events in the world—the Summer Olympic Games and the FIFA World Cup—have a lot of similarities. Both are quadrennial (taking place every 4 years), both demonstrate sporting prowess (albeit in different fields—one in athletics and one in football), and both cost an astronomical amount of money for the elected host country.

In what many deem a vulgar and unnecessary show of capitalism and economic prowess, every four years countries line up to compete for the privilege of hosting such a prestigious event, despite the eye-watering associated costs. The outlay for Olympic host countries alone is estimated to fall in the region of $4-10 billion US dollars, with past events having even eclipsed this—the London Olympics for example was budgeted at $2.4bn, but the actual price was in excess of $11bn (nearly a sixth of the country’s entire education budget).

In all the excitement, costs and infrastructural planning involved in the preparation for a mega event, it’s hard to keep in mind the true reason for all this planning: the celebration and recognition of international athletics. The sporting aspect of the games often gets lost amidst a mountain of huge bills, planning permissions and ongoing construction work, with the glitz, glamour and prestige of it all taking centre stage rather

than the Games themselves. That’s not to say though that the Games are forgotten completely—during the two-plus weeks of the event, sport is catapulted into the limelight. An influx of spectators descend on the host city, with the vast majority travelling hundreds if not thousands of miles to be part of the action, as well as millions more watching at home on TV coverage broadcasted all over the world.

Let’s delve into the world of international event hosting to see what the costs really are for a host country, and whether the benefits outweigh the astronomical costs involved.

The positives It has to be said that the Olympics and the World Cup do bring significant gains to a country, both socially and economically. The status of a host country skyrockets in the run-up to and even for years after a successful global sporting event, with the Institute of Economic Affairs going as far as to say that events of this magnitude induce “a restoration of self-confidence, civic pride and dynamism”. A standout example of this is Barcelona, whose 1992 Olympic Games singlehandedly turned a

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developmentally stagnant country into the European powerhouse it is today.

In what Pedro Matos, finance professor at the University of Virginia, calls “the holy trinity of mega events benefits”, the three main benefits of hosting such a prestigious sporting event are economic growth, infrastructure legacies and image promotion. All of these are delivered in abundance by successfully hosting an international event. One of the most profound benefits is the lasting legacy an event leaves—rather than being a hindrance, infrastructure built specifically for sporting events can in fact benefit the community long after the final whistle has blown.

Events also fast-track much-needed infrastructural plans, legitimising additional public spending that otherwise would not have happened had it not been necessary for hosting a sporting event. As former Mayor of London Ken Livingston once famously attested: “I didn’t bid for the (2012) Olympics because I wanted 3 weeks of sports, I bid for the Olympics because it’s the only way to get billions of pounds out of the Government to develop the East End”, in his own words to “ensnare the Government to put money into an area it has neglected for 30 years.” This admission is not confined to the UK’s Olympic bid—it is in fact a widespread practice.

However, it’s not just the Olympics and the FIFA World Cup that bring crowds in their thousands and garners investment in the millions—other sporting events have the capacity to command this too, albeit on a slightly smaller scale. This by no means suggests that the positive outcomes of such events are small-scale though, with a stellar example being Manchester’s hosting of the 2002 Commonwealth Games. An international athletics event seen as a springboard to the Olympics, the Commonwealth Games is a multi-sport event involving athletes from the Commonwealth of Nations (the 53 member states which made up territories of the former British Empire). This mammoth 10-day event involving 3,679 elite athletes from 72 countries took place from the 25th July—4th August 2002 in the UK’s unofficial second city of Manchester and left in its wake one of the most sustainable lasting legacies in modern sporting history.

Reported by regional newspaper Manchester Evening News as “a turning point in Manchester’s history”, its impact is still reverberated throughout the city even to this day, 14 years after the event, with tourism increasing a massive 400% in the decade since the Games. But why was this particular event such a phenomenon? Simply because its investments in sporting infrastructure was second-to-none, and most importantly is still used to this day (so much so that last year the city was voted ESPN’s greatest sporting city, an accolade bestowed on Manchester thanks in large part to the infrastructure built specifically for the Commonwealth Games). In particular the Games rejuvenated areas of East Manchester, changing the face of the east of the city forever.

One of the biggest investments made to host the Commonwealth Games was without a doubt the creation of the City of Manchester Stadium, a £112m sporting arena built originally with a capacity of 38,000 that operated as the heart of the Games and housed both the athletics and rugby sevens competitions before being converted into a football stadium indefinitely.

Now home to Premier League title contenders Manchester City, the city of Manchester Stadium has been renamed the Etihad stadium to tie in with the club’s corporate sponsors, and (with capacity extended nearly double to now accommodate 60,000 people) is used as a flexible multi-use space to this day, hosting the likes of UEFA Cup finals, boxing matches, rugby league internationals and even music concerts during the Premier League’s seasonal break.

However, the City of Manchester Stadium was just one in a myriad of impeccable infrastructural investments the city made during its time as the host city for the Commonwealth Games, with another standout being the £9m Velodrome on the Etihad Campus. Built just a stone’s throw away from the stadium, The Velodrome (pitted as Britain’s first indoor Olympic cycling track and known in the cycling community as one of the world’s finest and fastest board tracks) hosted the 2002 track cycling events to stellar critical reviews. Pundits, commentators and spectators alike all commended The Velodrome for its stunning aesthetics and its optimal cycling conditions.

This venue was so much-loved by participants and fans alike that after the Games this has become the official home of British Cycling, with renowned Olympic champions like Victoria Pendleton, Sir Chris Hoy and Bradley Wiggins training and competing at this state-of-the-art facility. Such is the prowess of the elite cyclists based at Manchester’s Velodrome the venue has earned its affectionate nickname of ‘The Medal Factory’ in acknowledgement of the winning habits of its resident cyclists, with the

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Fisht Olympic Stadium, Sochi

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Olympic Stadium, Beijing

aforementioned Pendleton, Hoy and Wiggins boasting an incredible 11 Olympic Gold medals between them, as well as countless Championship trophies, medals, titles and Tour de France victories under their belts. Sir Chris Hoy—knighted in 2009 for his impeccable impact on British sport— even holds the title for having the most Olympic medals than any other British athlete (13 at the time of printing).

Sir Richard Leese, leader of Manchester Council, said in recognition of his city’s mammoth achievements in the run-up to, and certainly after, the 2002 Commonwealth Games: “They were designed to be a driver and a catalyst for change in the host city—part of our successful bid for the Games was our commitment to regeneration and improvement work preand post-Games, while creating a lasting legacy for communities, residents and Games volunteers”. If there were a gold medal awarded to a city for its successful hosting of an event, Manchester would definitely be in pole position, with Leese going on to say: “Our model has now been adopted by many cities as the benchmark for a new era in large event hosting”.

Manchester showed the world how it was done.

Manchester’s highly successful Commonwealth Games is a true testament

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to how hosting such an event has the power to completely revolutionise a city—not just infrastructurally, but in the eyes of the world too. Tourism has never been higher in Manchester, and the effects of those 2002 Games will leave a legacy that will continue to influence the city for decades to come. To paraphrase Holger Preuss, professor of Sport Economics and Sociology at the Johannes Gutenberg-University, the true overall effect of a sport event is measured in the infrastructural, social, political, ecological and sporting impacts the city and country receive from the Games”.

The negatives It is unquestionable the good things that come from hosting a sporting event: civic pride, substantial investment in infrastructure, increase in tourism and an influx of international press coverage to name just a few.

However, there are some very real negative aspects that come alongside hosting a huge sporting event, making the job of hosting much more laborious than first anticipated.

The first major hurdle for those looking to host a tournament of

immeasurable magnitude is the rigorous and costly process of bidding for the hosting rights, often competing with three to five other countries also looking to secure the competition. Not only does the bidding process alone cost host potentials on average around $10 million (for the Olympics, the bidding process incurs a hefty $300,000 payment to the International Olympics Committee (IOC) without a stonewall guarantee of selection).

This links in with the other major negative associated with hosting a major sporting event: the cost. Once a country has been selected to host a competition (the announcement usually occurs up to 10 years in advance of the event to provide ample time for the host country to make preparations), from here the costs truly escalate. Depending on the needs of the event, some countries are forced to build expensive infrastructure from scratch, often without a real need for such buildings after the event.

Academics cannot find a positive correlation between the construction of sports stadia and economic development, so it has been proven time and time again that, despite politicians’ and event organisers’ best insistences, irrelevant infrastructure will not promote future growth (especially if said multi-million-pound stadia sit empty and redundant after the event as is

becoming the norm, all the while generating bills in their millions for maintenance).

A classic example is South Korea who, in order to co-host the 2002 World Cup with neighbouring country Japan, had to build not one, not two but 10 new stadia. This would be acceptable if, like Manchester, it had the need for such venues after the World Cup, but with a country whose national average attendance at a footballing game is a meagre 3,000 the need for 10 stadia with capacity for 60,000 is more than a little excessive. This becomes especially unbelievable when considering the cost to build these unnecessary stadia came in at a staggering $2bn, money that would have been much better spent elsewhere. Even more worryingly, this hasn’t been just confined to South Korea—across the map there are a myriad of countries who have spent indulgently on unnecessary infrastructure for a one-off event.

One such country was Canada whose second-largest city, Montreal, hosted the 1976 Olympics. Not too fondly dubbed the ‘bankrupt Olympics’, Montreal vastly underappreciated the sheer costs necessary to host the Olympics, originally estimating $310m ($1.2bn when adjusted for

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inflation) for all the necessary works, but this was far too optimistic— the final bill, came to a staggering $6.2bn, representing a shocking 323% overspend. Naturally, this overspend was not anticipated and so had to be financed almost solely by public funding from a mixture of dipping into budgets earmarked for other perhaps more pressing public services, as well as raising taxes in an attempt to plug the sea of money flowing out of the city. Sure, everyone loves the idea of hosting a major global event in their city, but when this results in a hike in household taxes, the response becomes significantly more diluted.

As with any major sporting event one of the largest outlays is the building of the flagship stadium, and ironically for Montreal this was both their shining star and their biggest downfall. The centrepiece for the event, the Stadium (officially called ‘the Big O’ but famously satirised by disenfranchised Canadians as ‘The Big Owe’) overran on construction and cost nearly $1.8bn, solely funded by taxpayer money. Furthermore, this 66,000-capacity stadium has been left without a permanent tenant and, to add insult to injury, costs further millions in taxpayer money to fund its maintenance every year.

Shockingly, these Olympics left such a hole in Montreal’s economy that it took some 30 years to pay off its sizeable debt, finally paying off the amount in 2006. Given this, it is unsurprising then that media outlets and spectators alike have dubbed this particular financial cataclysm one of the most disastrous Olympic Games in history.

Similarly, Greece had a tough time when hosting the 2004 Olympics, with its $7bn spend contributing massively to the country’s financial ruin began with a vengeance just 6 years later in 2010.

This significant overspend is not uncommon in the sporting world, with a widely-recognised practice in both the Olympic and World Cup bidding processes for committees, politicians and other interested parties to significantly understate the cost of hosting the games in their publicised budgets. These embellished budgets significantly underrepresent the true costs of the Games to the host country’s economy, with some of the biggest budgetary discrepancies are ones that have to be seen to be believed: > Athens, 2004—predicted cost $1.6bn; Actual cost $16bn; Over spend = 900% > Beijing, 2008—Predicted cost $1.6bn; Actual cost $40bn; Over spend 2,400% > Sochi Winter Olympics, 2014—Predicted cost $12bn; Actual cost $51bn; Overspend 325% But how do politicians and economic forecasters get these budgets so wrong? The sceptic in me says that this is in fact done deliberately, with such budgets conveniently announced during the time in which they are seeking public endorsement. All financial projections for such events should always be taken with a pinch of salt, especially when considering that these estimates are generally produced by the Government or other hired consultants, all with a vested interest in delivering good news—after all, no politician hires an economist to tell them something they have already invested vast amounts of capital in will be a waste of money!

Although cost is a massive contributing factor, there are several other negative aspects associated with hosting a major sporting event. Civilian displacement is a massive issue for global events, rather cynically critiqued by footballing blog A Football Report as “a programme of mass eviction of the lower classes set out in order to put on a glossy show for the rest of the world”. And essentially that’s what sporting events are: glossy competitions in showmanship from the world’s most dominant economies. In what The Economist dismisses as a glorified party (“the world’s biggest sporting bash”), hosting the Olympics or the FIFA World Cup is certainly no walk in the park, and involves billions of dollars, civilian unrest and displacement, useless and impractical infrastructure, and as of the past decade, whispers of corruption and bribery.

In recent years, FIFA in particular (the governing body of football competitions) have come under fire from all angles after an investigative journalist uncovered corrupt practices in an explosive 2004 exposé, with the organisation now riddled with claims of

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Olympic Stadium, Athens

substantial corruption and vote-rigging over the course of former leader Sepp Blatter’s 17-year presidency (1998-2015). An undeniable admission of guilt, such allegations since coming to the forefront of public knowledge have led to the indictments of 9 high-ranking FIFA officials to date and 5 corporate executives on serious charges of racketeering, wire fraud and money laundering, as well as Blatter rescinding his presidency in the wake of the scandal.

As if this wasn’t enough of a damning indictment, people with connections to FIFA are quick to corroborate the whistle-blower’s story, with former chairman of the English Football Association likening FIFA to an organisation “that behaves like a Mafia Family [with] decades-long traditions of bribes, bungs and corruption”.

Furthermore, American sports writer “Dave Zirin attests, “Greed, corruption, nonfeasance and malfeasance are endemic to FIFA leadership—FIFA should be abolished for the good of the game”.

The latest announcement to rock the now-outed corrupt organisation is the investigation into presenting Qatar with the 2020 World Cup, since allegations are again rife of foul play (this time in the form of FIFA committee members accepting a $1.5m bribe to vote for Qatar).

You do have to question the logic of hosting a major sporting event in a place where summer temperatures have been known to reach 120 degrees Fahrenheit, and which will be unbearable for a vast majority of the athletes, without some hint of financial benefit for the organisation.

So not only are sporting events expensive and time-consuming, their integrity has also been called into question. This then begs the question: Are sporting events really worth it?

Despite knowing (at least to some extent) the astronomical costs involved in hosting such events, unbelievably the Olympics and the World Cup every year still have a queue of countries lining up to bid for the rights to host the Games, all of which have public backing, with the general public riding high on the idea of the Games as a financially sound investment and an incomparable source of civic pride.

According to research based on the past 10 tournaments of both the Olympics and the World Cup, it costs on average a staggering $11.4bn to host a modern Olympic Games, and $3.2bn for a World Cup when adjusted for inflation, perhaps not even taking into account the mammoth overspend that each country inevitably faces—according to an essay written by the Journal of the American Planning Association, “since 1960 without exception, the Olympic Games have gone over budget, on average by 179%”.

Therefore, it goes without saying that there are significant opportunity costs to consider when bidding for such events—yes, during the event’s duration it is unquestionable that the host country sees an influx of tourism and thus tourism spending, and yes, the host country does see significant investment into the country.

However you have to ask yourself, could these billions of dollars be better spent elsewhere?

While in hindsight London Olympics Minister Tessa Jowell would have certainly thought twice about the London 2012 bid (“Had we known what we know now, would we have bid for the Olympics?

Certainly not!”), other countries are not so sceptical. When all’s said and done, there will always be plenty of people queuing up to host the next ‘big event’, led by politicians with their hands out, disillusioned by daydreams of international acclaim and adoration, casting aside all rationality like “Do we have the necessary infrastructures in place?” and most importantly, “Can we afford it?”.

I’ll conclude by saying that it is subjective as to whether the Olympics and the World Cup is really worth it, but where I’m sitting I can see a much better use of billions of taxpayer-funded money, like education and healthcare. After all, $13bn is one hell of a price to pay for a glorified party and for one hell of a hangover that will surely follow.

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WORLD MARKET VIEW The global financial crisis plunged property markets into a downward spiral. Nine years on, Global Property Scene takes a look at how the international markets are developing.

London, UK • Median sales price: $1,244,121* • Average price per sqft: $1,411

Note - Figures correct as of stated dates: *May 2016

Los Angeles, USA • Median sales price: $612,000* • Average price per sqft: $977

New York, USA • Median sales price: $1,314,533* • Average price per sqft: $1,589

Mexico City, Mexico • Median sales price: $82,000* • Average price per sqft: $611

Most expensive cities to live and work: 00

Sao Paulo, Brazil • Median sales price: $215,890* • Average price per sqft: $201

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Prices are the combined cost of residential and office accommodation per employee in 2016.

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(Correct as of May 2016)

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Singapore

Lagos

San Francisco

Tokyo

Paris

Hong Kong

New York

London

$6

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0

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Cape Town, South Africa • Median sales price: $76,100* • Average price per sqft: $221

Singapore Moscow, Russia • Median sales price: $394,470* • Average price per sqft: $853

Dubai, UAE • Median sales price: $299,834* • Average price per sqft: $580

• Median sales price: $1,194,121* • Average price per sqft: $1,978

Sydney, Australia • Median sales price: $626,112* • Average price per sqft: $978

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WHAT’S THE ALTERNATIVE? First edition books

Words : Hannah Wilde | View : David Smart

For any self-professed bibliophile—that is, a lover of the written word— nothing can compare to the feel of the crisp pages of a book beneath your hands, nothing more beautiful than the words of a literary genius enticingly presented in front of your eyes. This has excited people since the dawn of the printing press, but never has this excitement been more profound than for those who discover a rare diamond: a first edition. Here you are casting your eye across a version of the book in its most primitive original form that many have not been lucky enough to see, let alone possess.

But it’s not just book lovers that can appreciate the excitement when you come across a first edition: these rare gems have also piqued the interest of investors in recent years, keen to get a slice of the action (and the profits) that come from discovering a rare book. In what The Times newspaper has called “better than a bond, more interesting than an ISA and more satisfying than shares”, book collecting as a form of investment has in recent years attracted investors in their droves, all keen to share in the excitement and bask in the financial returns of finding and selling a rare book for a significant profit.

The beauty of investing in books is that it’s a very inclusive market—almost anyone can invest in rare books, providing you know what to look for. The

type of book you choose is of the utmost importance if it is going to retain or grow in value. To this end, first editions (that is, the very first print-run edition) are always a sound choice, as they tend to hold their value and oftentimes appreciate, and almost always have the highest demand on the resale market. However, that’s not to say that other type of books cannot be just as lucrative: history shows that rare books in their original dust-jacket, one-of-a-kind transcripts and books featuring the author’s signature or, even better, a personalised inscription from the author’s hand can also be incredibly fruitful on the resale market.

Needless to say, books can be thought of as an investment rather than a purchase if you invest in the right sort of books—regardless of condition and print-run, throwaway classics like Confessions of A Shopaholic will never command a fraction of the price of a real classic like Catcher in the Rye. As a rule of thumb, books as investments should be classics that will be sought-after, even in decades to come. For example, by far and away the most sought-after fictional first edition is F. Scott Fitzgerald’s most famous novel The Great Gatsby, which according to collectibles expert Paul Fraser Collectibles has increased in value by a massive 140% in the past decade alone. Something that would have cost the princely sum of £1.25 when it was first printed in 1925; a first edition of Fitzgerald’s

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Magna Carta

masterpiece, in pristine condition can now fetch in excess of £90,000, a staggering 131,229% investment return when adjusted for inflation.

Similarly, although hard to believe, JK Rowling’s much-loved classic Harry Potter and the Philosopher’s Stone only had a very limited hardback print run of 500 when it was first released in 1997. Such is the popularity of the world’s most famous boy wizard, just a £10.99 investment 18 years ago could now earn you over and above £17,000 today, equating to a huge 91,199% return on investment. Children’s books are definitely a contender when considering the genre of books that best hold and sometimes even increase in value, especially in the first edition arena. Another example is works of the iconic Dr Seuss, whose most famous literary creation The Cat in the Hat from 1957 has increased 150% over the past decade from £2,000 to £5,000.

Now you know what to look for, a large part of the enjoyment of collecting rare books (whether to use for your personal collection, your own consumption or to resell it on the open market later) comes from the rarity of such books: you just never know when one may fall into your lap.

First editions can be found in the most unlikely of places, with the most fruitful of these being small used bookstores and makeshift book stalls at fairs and fetes, or can even be discovered hidden in boxes in car boot sales or charity shops. Furthermore, the beauty of finding such a hidden treasure amongst the battered copies of Beatrix Potter and the much-loved, well-thumbed Harry Potters is that most sellers in such small

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premises don’t realise what they have in their possession—so what looks to the ordinary eye as a well-read old book could well be a treasure chest, not just of literary genius but also of significant financial returns.

Although the growth of ebooks and Kindles has posed a significant blow to the sales of the publishing sector in the past decade, demand for first editions is not one that can be quelled. The resale market has been afire with rare classics in the past decade, with first edition versions of such books selling for anywhere from five to seven figures. This is why investors have been flooding the first edition book market in recent years, desperate to unlock the profits that can often be held in the pages of a highly in-demand first edition. According to Andre Chevalier of Rare Books Digest, an investment that includes rare books is better-positioned to withstand market cycles, and provide long-term growth that extends well beyond retirement day—rare books have historically proven to hold and appreciate in value in the long-term”.

However, if you’re still sceptical and are thus far unconvinced that there’s money to be made within the pages of books, those who have their finger on the pulse of collectible books would beg to differ. Many books in this resale market have been known to hit and even exceed the million dollar mark, with the most sought-after books easily achieving seven, or even eight, figures. According to Forbes, the below are the crème de la crème of rare books, each making up the top 10 most expensive books ever sold at auction:

1. Codex Leicester—Leonardo da Vinci This book, written in 1510 which largely contains da Vinci’s scientific writing, was bought for $49.4m in 1994 by tech tycoon Bill Gates 2. The Gospels of Henry the Lion—Order of St. Benedict This 12th century biblical ode, commissioned by the Duke of Saxony, is now in the hands of the German Government after being sold for an impressive $28m in 1983 3. Magna Carta One of just 17 surviving 12th century versions swapped hands from one American billionaire (Ross Perot) to another (David Rubenstein), selling for $24.5m in 2007 4. St. Cuthbert’s Gospel The Jesuits sold this 7th century work, unearthed in 1104, to the British Library for $15.1 in 2011 5. Bay Psalm Book With only 11 surviving copies of this 1640 book in existence, one such

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book was sold for $14.5m in 2013 6. The Rothschild Prayerbook This rare medieval devotional book of hours sold for a vast $13.9m in 2014 7. Birds of America—John James Audubon This 1820 book—perhaps the most surprising on the list—is exactly as the title depicts, containing hundreds of hand-drawn illustrations of birds, sold for $12.6m in 2010 to London art dealer Michael Tollemache 8. The Canterbury Tales—Geoffrey Chaucer This iconic book produced in its first edition by England’s supposed first printer William Caxton, was sold for $11.1m in 1998 9. Copy of the Constitutional Bill of Rights and Other Key Acts of the First Congress in 1798—George Washington Not strictly speaking a book, the first copy of the Constitutional Bill of Rights written by the hand of one of America’s founding fathers was sold to the owners of Washington’s Virgina estate (a non-profit organisation the Mount Vernon Ladies Association) for $10.2m in 2012 10. Comedies, Histories and Tragedies: The First Folio—William Shakespeare Naturally one of the world’s most famous writers appears on this list, with a book that auction-house Christie’s deemed “the most important book in English literature”, which was sold to an anonymous bidder for $8.2m in 2001 These of course are the Holy Grail of book investments, not your everyday purchase, but what do these books have in common? Rarity and historical/literary importance, both of which only enhances their intrinsic value. If you’re lucky enough to get your hands on any one of these magic ten books your bank balance will certainly see a hefty seven-figure surge, but that’s not to say there isn’t money to be made on books that don’t feature in this list.

Literary mogul Clive Hirschhorn would beg to differ. His library of rare and inscribed first editions reads more like a who’s who of 20th century fiction, and is estimated to be worth well over £950,000. Likening the process to “catching the first edition bug”, retired theatre-reviewer-cum-literary-investor Hirschhorn liquidated over 65% of his portfolio of 371 rare books in a Bloomsbury book auction in October 2012, making a massive £668,000 on this single auction alone. Highlights of his portfolio include a mint-condition Great Gatsby, which sold for £62,000 (24% more than the auction estimate), Lucky Jim by Kingsley Amis, which sold for £7,000 (50% more than its estimate), Tender is the Night by F. Scott Fitzgerald, selling for £8,500, and literary classic Lord of the Flies by William Golding, selling for £15,000.

This savvy bookworm still has 128 books unsold, with a conservative estimated value of £282,600—working out at an impressive £2,707 per book. When he finally decides to auction his remaining investment pieces, lots to look out for in the future are William Faulkner’s Soldier’s Pay, with an estimated value of £17,500, The Sound and the Fury by William Faulkner, with an estimated value of £25,000, Ernest Hemingway’s In Our Time, with an estimated selling price of £22,500 and The Lord of the Rings full volume by J.R.R. Tolkien, estimated at £17,500.

This is just one man’s foray into the wonderful world of book-collecting, which proves that the market is more than lucrative. For those looking to follow in Mr. Hirschhorn’s footsteps and turn books into gold, Adam Douglas “of Peter Harrington Rare Books”—advises aspiring literary investors that it is always better to purchase a whole collection rather than a single book: “A book is like a single stock; a library is like a portfolio”. And by far the jewel in any literary portfolio is a stand-out book, a one-of-a-kind book that people not only will want, but will be willing to pay a huge premium for.

Certainly past experience dictates that one thing sure to set the pulse of any true bibliophile racing is evidence of a rare book’s past and providence—if it is inscribed by the author themselves, the price will

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Birds of America

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skyrocket tenfold. An example is an inscribed 1939 first edition of Raymond Chandler’s The Big Sleep which surfaced on the auction market in 2011, in which the author had written a loving but slightly satirical ode to his wife: “To Cissy, who wants something much better but was pleased even with this”. Unsurprisingly, a book whose providence is so linked to its author garnered massive investor interest, with this particular edition fetching an impressive $254,000 (£150,000) at auction.

The truly wondrous thing about books is that they can be all things to all people: precious to collectors who will cherish their possession; priceless to bibliophiles who will devour their words, and a literary nest egg for investors who wish to make a profit. And all this is perfectly formed, lovingly wrapped between two covers. Whatever the reason for maintaining a collection of rare books, there are certainly two rules to abide by: condition and value.

Like fine wine, first editions should be preserved like the jewel that they are. Experts cannot stress enough the importance of keeping books (especially ones held for investment purposes) in pristine condition,

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attributing over 80% of a book’s value to its condition, which is why collectible books should be kept out of direct sunlight and safely away from damp conditions. In much the same way, condition is an important factor when looking to extend your collection too, because the book’s value is so intrinsically linked to its condition. Especially if buying for investment purposes, you have to speculate to accumulate. Pay as much of your budget as you can to acquire the best possible version of the book, as this is most likely to hold and increase its value in the long-term.

If in doubt, just step into the buyer’s shoes: would you rather pay a fraction of the price for a battered and unloved copy of a book, or pay a premium for a book in near-perfect condition, as close to the original as possible?

Speaking on behalf of the majority of serious bibliophiles and collectors, they’d choose the latter. Therefore on this basis, even though you may pay a substantial amount for a mint-condition book in the first place, so long as the book is kept in almost-perfect condition, this will pay dividends when the time comes to sell your investment on the resale market.

Another thing you definitely pay a premium for in this market is a book that comes with an original dust-jacket, but this in itself is an investment.

Constitutional Bill of Rights

Historically there are few surviving original dust jackets of old classics, since it was a widely-acknowledged practice for owners to discard them after purchase until at least the early 20th century. Industry professionals have valued the presence of dust-jackets to account for anything from 75-90% of the book’s value, so if you do manage to procure a book with an original dust-jacket you may pay a premium but equally you could be sat on a goldmine. Case in point: A 1938 first edition of Graham Greene’s Brighton Rock would sell for a tidy £700 without the dust jacket, but can sell for over 28 times that amount (£20,000+) with the inclusion of the rare illustrated dust jacket.

I could spend hours listing examples that prove the merits of buying rare first-edition books as a tangible investment, but the fact remains that if you invest in the right kinds of books (with embellishments like an original dust jacket or an author’s inscription as an added bonus), the financial returns are almost a given. As Ernest Hemingway once shrewdly observed, “there is no friend as loyal as a book”, and in the case of a first edition book, these particular ‘friends’ can often prove to be gifts that keeps on giving.

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Q&A It’s time for GPS to answer some of our readers most pressing questions

Words : Samantha Jones

Q.

Q.

I’m looking at buying another property in the UK (I live in Spain), but I’m wary about buying anything before the EU referendum takes place in case it has an adverse effect on the housing market. Do you think I am right to wait?

Is it worth buying a property at auction?

A.

Not for the faint-hearted, but if you can keep your nerve, auctions have the potential to provide hidden gems in the form of residential houses in nice areas. The only drawback – they are always in varying states of disrepair and need a LOT of work to bring them up to a standard good enough for anyone to live in.

The referendum on whether Britain should exit the EU is causing uncertainty across all financial sectors at the moment, not just the property market, as the realistic answer is that no one knows what the potential fall out, or upshot, will be.

In the case of a Brexit vote, there are a number of scenarios that have been put forward, including a drop in house prices if immigration from Europe fell (as the demand for housing would fall), and additional visa and money checks introduced if you are a foreign national looking to buy property here.

One thing that the majority of analysts appear to agree on is that the luxury market in London would take a hit, as caution would rule whilst investors wait to see the longer-term effects. Equally, a Britain freed from EU regulation may open the property market up to an influx of overseas buyers, in which case the market will thrive and house prices will continue to rise.

As was the case with the general election last year, the most likely scenario at present is that many people will delay making a decision until after the vote has been counted, leading to a slight stagnation of the market, but not one that should have any immediate effect on prices. In this case, you are certainly not on your own should you decide to wait.

Just remember, as you mention that you already have at least one property in the UK, regardless of the referendum result, you will now need to take into account the addition Stamp Duty charge on second properties in the UK.

A.

However, if the challenge is something you think you can rise to, then find out when the next sale is happening in the area you are interested in and order a brochure. It is always prudent to have a surveyor and a builder walk round the property with you, so that they can give you an estimate of how much work is required. It would also be prudent to look into planning permissions if you want to add anything onto the property.

On the day, the main rule for buying at auction is always making sure you have worked out your finances before you start bidding. Take all renovation work into consideration and add this to the cost of the property, remembering that the catalogue prices are ‘guide prices’ and that many auctioneers recommend that you add a further 10% onto this figure, to gauge how much it might go for on the day.

Generally, buyers need to put a 10% deposit down on the day of the sale and then pay the balance within 28 days. If the figures don’t add up or you don’t have access to enough cash to make the initial payments, then don’t buy it.

Finally, don’t get carried away. As the auctioneer’s calls get faster and the bids keep coming, it is easy to get swept up in wanting to be the winning bidder. Yet if the price is spiralling above your pre-determined budget then you need to be realistic about what you can afford, and how much profit you will eventually make.

*These questions and answers are provided for general information only and may not be completely accurate in every circumstance.

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ASK THE EXPERT Richard Hart, Director, Blue Cube Studios Computer Generated Imagery, or CGI as it’s more commonly referred to, is the go-to tool for anyone selling a property off-plan. CGIs provide people with a tangible representation of the property they are buying, making it easier for developers to market their projects. GPS talks to Richard Hart from Blue Cube Studios to discover more about this intriguing industry.

Q.

A.

The standard of CGIs in the property industry has increased dramatically over the past 4-5 years. What have been the main innovations that you have seen throughout your career?

Yes definitely! Due to the aforementioned innovations in the rendering software, CGI animation is more accessible than ever. The real drive has been its affordability and the improved lead times to produce an animation. CGI animations have really come on in recent years. They are now the same high quality as the still image CGI’s. With digital marketing and video streaming becoming a mainstay for modern property sales, CGI animations provide a rich media experience to any project, large or small.

They are vital for attracting investors, particularly overseas, where they bring the development to life, from anywhere on the globe.

A. The software & techniques for rendering (the process of calculating the lighting and colour of each pixel in an image, from a 3D model) have been improving exponentially. Every year, the software used to create images, and the hardware used to run these complex calculations get smarter, faster and more efficient.

Realistic, high quality CGI’s require a very high level of sophisticated lighting and materials shading, which all takes a huge amount of computer processing power. This was previously only reserved for very large, very expensive 3D production houses, such as Pixar, or DreamWorks.

Thanks to the innovations in software, and the hardware running it by large production & special effects houses such as Industrial Light & Magic and Framestore, realistic/complex lighting and shading can now be carried out much more efficiently, requiring less processing. In conjunction with this, hardware has become much faster, more accessible and increasingly more cost efficient.

Just like the technical innovations in Formula One, which eventually filter down into mainstream costumer cars, the innovations in software development by large movie studios eventually makes its way into the proprietary software used by studios producing CGI’s.

Collaborative innovations, which help various artists in a single pipeline all work together using the cloud, has been a real game changer for larger projects. This allows very large teams to work on a single project.

Q CGI animation appears to be increasing in popularity with developers.

Do you think it’s here to stay?

Q. Are there any new technologies on the horizon that you are excited about implementing?

A. The hottest technology that has everyone excited across many industries is VR (virtual reality). This exciting new medium has so many benefits.

The 3D applications used to create CGI’s and animations are the very same applications that VR environments are created within. VR is a fairly broad term and has so many uses, which is why it’s such an exciting new technology.

In property marketing terms, virtual reality will be the new way to market properties. Users will be able to literally walk around a development or property at their own pace, without leaving their living room. Users will be able to make real-time design changes such as tweeting interior specifications or changing lighting and atmosphere to creating unique and individual spaces specific to personal taste.

This exciting medium can be fully programmed, meaning that any level of interaction can be added. It also means that every aspect of a potential purchaser’s virtual tour, can be tracked, providing invaluable feedback to sales & marketing personnel.

The possibilities of this new medium are truly only limited by the imagination, which makes for a very exciting time for 3D studios that are already well positioned to harness this new technology.

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SHOULD I MOVE TO RIGA? Words : Hannah Wilde | View : Ross Helen

Situated in the Baltic region of Northern Europe, Latvia is a quaint and picturesque country bordering the likes of Estonia, Russia, Belarus and Lithuania. Heavily influenced by its Nordic neighbours, elements of Scandinavian culture, architecture and way of life are evident all around the city of Riga, a capital city oozing culture, beauty and history in abundance. As the largest city in the Baltic States, Riga is home to over 640,000 inhabitants, which accounts for over a third of the country’s overall population.

However, despite its dense population, what struck me the most about Riga was its quiet tranquillity. Unlike the crowded and fast-paced streets of other more recognisable capital cities, in Riga you’d never be stuck in the hustle and bustle of an overly-crowded pedestrianised high street like you would on London’s Oxford Street, or be deafened by the cacophony of car horns and sirens that often surround the likes of New York’s Times Square.

Riga is completely stripped back, relaxed, majestic even. The pace of life in this quaint but stunning city is one of peace, with nobody in a rush or unwilling to stop and help a disillusioned tourist needing directions. The atmosphere is almost other-worldly.

Never was this so apparent than when sat in Skyline Bar, situated the 26th floor of Riga’s 4* Radisson Blu hotel. Not for nothing does this hotel proudly boast having “the best views over Riga”—with the whole city sprawling out below, you have the perfect vantage point to see all that this dynamic city has to offer. And what an offering it has! In what can only be described as a stunning fusion of old and new, architectural marvels

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steeped in ancient Latvian culture mingle with shops and restaurants that ooze cosmopolitan modernity. Steeples of churches rub shoulders with staples of modern living: in some parts of the city, just a matter of metres separates stunning Russian orthodox Cathedrals from the garish and unmistakable golden arches of McDonalds. What’s more, the whole city is bordered by the Baltic Sea, with the city’s boats, bridges and sea views adding an extra dimension to an already awe-inspiring city.

And it’s not just the aesthetics of Riga that is something to behold: the rickety ‘hop-on-hop-off’ tram system gives the city colour and character, whilst Riga’s charm is presented by ample cultural gems scattered all around the city. Tourists and locals alike can spend hours getting lost in the immersive world hidden behind the four-columned National Museum of Art, or delve into the history within the Museum of Occupation in Latvia, housed in an almost brutalist building that—in what could be seen to some as a masterstroke in subtle irony—looks oddly out of place in the heart of such an otherwise charming and delicate city.

However, when the sun goes down and the night is heralded in, this is where Riga really comes into its own. Bars, restaurants, cafes and clubs adorn the streets of the Old Town, the city’s main strip, illuminating the cobbled streets that were once so peaceful during the day. Riga under cover of darkness undertakes a transformation: here the city shines, with fun and frivolity bringing it to life. Equally as diverse, the people who line the streets of Riga and fill its establishments are a tantalising mix of friendly Latvian locals and tourists—predominantly European—with whom you can

Town Hall Square, Riga

converse with ease and pleasantry. The atmosphere truly does give the city its heart and soul, with the people making the city what it is.

However, the wonder of Latvia is not just confined within its capital city, there’s much to explore, enjoy and appreciate all over this stunning country. Just one hour outside the capital and only 15 kilometres from the Lithuanian border sits Pilsrundāle, home of one such feature of interest: the majestic Rundāle Palace. Certainly a jewel in Latvia’s already well-adorned crown, Rundāle is a stunning 18th century baroque palace, a breath-taking homage to a bygone era. Built in 1768 as the primary residence for the Duke of Courland (and future regent of the Russian Empire) Ernst Johann von Biron, each of the palace’s 56 lavish rooms is a ghost of time gone by. Everything from the aristocratic portraits ornamenting the expansive hallways to the Throne Room, complete with a Sistine Chapel-esque baroque ceiling mural in deference to Venus and Adonis, offers a luxurious snapshot of 18th century Latvian aristocracy. It is no wonder that this truly stunning cultural marvel has been unofficially dubbed “the Versailles of Latvia”, and not just for its vast picturesque gardens modelled on its French counterpart, complete with the largest collection of roses in northeast Europe.

The palace certainly gives tourists and residents alike a snapshot of Latvia’s ornate heritage, but one cannot begin to comprehend such a mysterious and beautiful country of Latvia without first having a rough idea of its vast and expansive past. The history of this old and majestic country is just as intriguing as Rundāle is beautiful. Its capital city of Riga has its fundamentals in the Vikings of the Middle Ages, but fast-forward through

its long and illustrious history as an independent portus antiquus (ancient port) and we start to see the influence of Scandinavian, German and Russian culture penetrating this proud city. With the reformation of 1522 ending the reign of the Catholic Church in Latvia, Riga became a city in freefall, named a Free Imperial City of the Holy Roman Empire before coming under the influence of a Commonwealth between Poland and Lithuania. Then the city came under full autonomy of the Swedish king Gustavus Adolphus during the Polish-Swedish War of 1621, remaining under Swedish control until 1710. Then sparked one of the biggest changes in the city’s history, the Great Northern War, which changed the face of Riga forever. The conclusion of the war saw Riga fall into the hands of the Russian Tsar Peter the Great, with the city capitulating to Russia and thus becoming an industrialised port city, and the fourth-largest city, in the Russian Empire. Russia influenced Riga greatly during its time of occupation, building incredible architecture, influencing its aristocracy and even changing the city’s official language to Russian.

However, a new revolution was afoot in Riga. Germany has always had an influence on Riga even during its Russian occupation (by 1867 over 42% of Riga’s population were Baltic German, and even employed German as its native language for a period), and even after Riga declared its independence as a result of the Latvian War of Independence (1918-1920) after more than 700 years of German, Swedish and Russian rule, it didn’t stop the country being occupied by Nazi Germany just 23 years later in 1941. Just as the country was enjoying its first taste of freedom with the institution of a parliamentary government system and a President

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Old Town, Riga

implemented, as well as the admittance of Latvia to the League of Nations, Germany once again took hold of the country shortly after the start of World War II. This incredibly bleak time in history influenced the country massively, with German inhabitants and architecture dominating and almost overpowering Riga’s unique identity. Even after Germany’s defeat, Latvia didn’t go back to the independence they had enjoyed for so short a time, instead being controlled then by the Soviet Union. But good news was just around the corner for the city after centuries of external occupation as the 1980s saw the closing of the chapter of occupation by powerful Western European countries and the opening of the chapter of true liberty for Riga, with the re-establishment of Latvian sovereignty after the fall of the Soviet regime. However, it wasn’t until May 4th 1990 that Latvia officially proclaimed its independence, as well as restoring the country as its own Republic. To this day, May 4th is a day of national importance, commemorated annually with a bank holiday for all its citizens. But such is Latvia’s joy of being free they also have another official Independence Day, this time taking place on November 18th in memorandum to this date in 1918 when Latvian independence was declared from German and Russian occupation at the end of the First World War. Latvia’s battle for independence is over but it has not, and never will be, forgotten.

To monument Riga’s and Latvia’s centuries-long quest for independence, a stunning reminder of the country’s struggles has been erected in the middle of Riga to acknowledge their sacrifice, their history and their fight for freedom. The aptly-named Freedom Monument was proudly unveiled in 1935 as a symbol of Latvia’s freedom, independence and sovereignty, and

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sits majestically in the middle of the city’s town centre on the equally-apt Freedom Boulevard at an impressive 138ft in height. An emotional nod to times gone by, the monument itself fittingly replaced a statue of Russian Emperor Peter the Great, and is adorned with impressive sculptures illustrating the country’s domestic freedoms and political oppression in equal measure. Across the face of the monument are the most prominent aspects of Latvian history, with the same subtle reverence afforded to ordinary Latvian people (depicted as fishermen, craftsmen and farmers) as to the fighters, the heroes of the Latvian fight for independence, including modern Latvian riflemen and ancient warriors named ‘Guards of the Fatherland’. All of these elements are beautifully anchored by the subtle but powerful ode: Tēvzemei un Brīvībai, which when translated from its natural Latvian simply means “For Fatherland and Freedom”. Given the incredible history of an equally incredible city, it is hard not to be touched by such a poignant eulogy of the country’s past. You can see that this monument is not just a passive reminder of the past, but a resolute promise for the future. A reminder of what has been lost, but a promise of independence in a time that is yet to come.

These were just my experiences of such an elegant and refined country, a country so steeped in history, culture and architecture that it almost makes each step seem like a trip down memory lane. You can certainly see that it is a modern, 21st century city with all its bars, restaurants, shops and tourist hotspots like the famed Museum of Photography, but the city’s illustrious past is more than just a mere shadow. Its influences can be seen everywhere from the cobbled streets underfoot to a skyline overhead

shrouded in history, mystery and prestige in equal measure. Naturally, I’m not the only one to recognise and acknowledge the sheer beauty and culture that this majestic city offers. The historical centre of Riga is a UNESCO World Heritage Site, renowned for its tantalising infusion of Art Nouveau, German Jugendstil and traditional 19th century wooden architecture which hints at the city’s vast and expansive history.

Interestingly, Riga is recognised as having one of the finest and largest collections of Art Nouveau buildings in the world, enhanced over the city’s ample history by the bourgeoisie of both its native Latvia and of its other various occupiers.

Whilst Riga’s beauty is predominantly cemented in its past, its culture offers all the promise of the future. The city was crowned the European Capital of Culture in 2014, an honour bestowed only to cities that organise a series of cultural events throughout the year which, according to the European Commission, “highlight the richness of Europe’s cultural diversity and its shared history and heritage”, as well as enhancing the city’s individual “development and cultural expression”. And just from my short time in the city, it’s clear to me that Riga has cultural expression in abundance.

To tell you why you should go to Latvia would be to delve down a never-ending highway, but why take my word for it? The city is at your fingertips, ready for you to explore…

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Specialists at providing buy-to-let properties to the private investor market, Knight Knox has a wide range of developments available across the UK. Working alongside a team of experienced developers, solicitors and agents allows Knight Knox to provide expert advice and guidance on a range of investments.

Over the next 29 pages you will see a selection of the investment opportunities available through Knight Knox.

+44(0)161 772 1370 www.knightknox.com The Best of UK Buy-to-Let

X1 AIRE Leeds PRICES FROM :

ÂŁ105,000 > 6% NET rental returns 1 and 2-bedroom apartments Lettings and management company in place Private communal facilities State-of-the-art apartments Prime location in the heart of Leeds

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X1 Aire is Knight Knox’s newest development in the heart of the thriving city of Leeds. This development is set to provide state-of-the-art living for a vastly undersupplied Leeds rental market, providing a stunning array of apartments ranging from bespoke studios to stunning penthouses.

X1 Aire is set to take boutique city centre living to the next level, providing state-of-the-art apartments to the private rental market.

IN CONSTRUCTION

SILKHOUSE COURT Liverpool PRICES FROM :

ÂŁ109,995 > Circa 5.9% NET rental returns Unbeatable city centre location Liverpool rental market is booming Excellent city centre location Close to regional and national transport links Fully let and managed by an experienced letting agent

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Silkhouse Court provides the ultimate modern living experience. Each apartment comes complete with beautiful, top-of-the-range furnishing and fixtures, carefully selected by the development team to suit the dwellings.

Residents will be provided with a number of convenient on-site amenities. The private gymnasium on the Ground Floor is open for all residents, and the concierge service is there to make modern living simpler for the busy young professional.

X1 MEDIA CITY TOWER 3 Salford Quays PRICES FROM :

£114,995 > Circa 6% NET rental returns Studios, 1, 2-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and close to shopping Most exclusive development outside of London

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The penultimate tower in X1 Media City will follow in the footsteps of its predecessors, offering high-end residential living in a highly sought-after area.

This development’s stunning glass-fronted exterior perfectly epitomises the luxury within, and is just a stone’s throw away from the iconic MediaCityUK site on the picturesque Salford Quays waterfront.

NEW LAUNCH

BRIDGEWATER GATE Manchester PRICES FROM :

ÂŁ114,995 > Circa 6% predicted NET returns Predicted NET rental yields of 6% Lettings and management company in place Private communal facilities Built by an experienced developer Great transport links and close to shopping amenities

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Bridgewater Gate is enviably located on the edge of Manchester city centre in the thriving area of Castlefield.

This luxurious development will have all the advantages of being a short walk away from the local parks and independent shops of suburbia, but also the vibrant bars and restaurants of the city.

It also sits within walking distance of MediaCityUK, the new home of the BBC.

ADELPHI WHARF PHASE 3 Salford PRICES FROM :

£119,995 > Up to 6% predicted NET returns Excellent local infrastrucutre 10 minutes walk to central Manchester Experienced managing agent Great transport links and close to shopping Chronic undersupply of housing in Manchester and Salford

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The eagerly anticipated third phase of Knight Knox’s incredibly successful Adelphi Wharf project has arrived.

Located in one of the UK’s buy-to-let property hotspots, Greater Manchester’s popular region of Salford, Adelphi Wharf Phase 3 follows on from the two previous sold out phases. Investors were understandably enamoured with the development’s attractive modern apartments, superb location and the area’s ever-growing rental demand.

NEW LAUNCH

X1 THE PLAZA Manchester PRICES FROM :

£110,000 > 6% NET rental returns 1, 2 & 3-bed apartments and townhouses Beautiful balconies with dynamic city views Prime city centre location Within walking distance of local amenities Experienced management company in place

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X1 The Plaza is the newest addition to the Manchester skyline, set to provide 201 luxury apartments to the prime undersupplied residential market in the area.

The widespread success of the nearby X1 Eastbank project in the heart of Manchester’s newest up-and-coming district of New Islington shows the sheer level of demand in the area—both investors and tenants alike are flocking to the area, seeking bespoke investment and living opportunities in such a vibrant area.

NOW SOLD OUT

X1 LIVERPOOL ONE PHASE THREE Liverpool PRICES FROM :

ÂŁ79,995 > 6.61% NET rental returns Quality fixture and fittings Fully-furnished Phase 3 comprises 92 apartments Located in the centre of Liverpool city centre High rental demand in the area

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To capitalise on this almost insatiable student demand for luxury accommodation, the third phase of X1 Liverpool One consists of a selection of luxury studio and penthouse apartments, all of which are fully furnished* and finished to the highest of standards.

As well as ultramodern features, which perfectly befit luxury student living, residents of X1 Liverpool One will also benefit from stunning views of either the dynamic city of Liverpool, or its incredible skyline.

IN CONSTRUCTION

X1 MEDIA CITY TOWER 2 Salford Quays PRICES FROM :

ÂŁ104,950 > 6% NET rental returns Studios, 1, 2 and 3-bedroom apartments Lettings and management company in place Private communal facilities Great transport links and close to shopping Most exclusive development outside of London

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With 1,100 apartments covering an area of approx.

544,820sqf, X1 Media City is the largest residential development in the North West.

The development itself consists of four iconic towers, each containing a mixture of studios, one, two and three-bedroom apartments. With spectacular views over the city and MediaCityUK, the apartments are available fully furnished with a high-end, elegant flair.

NOW SOLD OUT

IN CONSTRUCTION

MULBERRY PLACE Salford PRICES FROM :

£109,000 > Circa 6% NET rental returns Highly sought-after location Lettings and management company in place Close to Salford and Manchester City Centres Excellent local transport links Salford named ‘UK Buy-to-Let Hotspot’ 2014 and 2015

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Located in the heart of Salford, Mulberry Place brings 38 chic apartments to the city’s thriving buy-to-let market in the form of spacious one and two bedroom apartments.

Residents of Mulberry Place will also benefit from excellent on-site facilities such as a beautifully landscaped communal courtyard, bicycle storage and off-street car parking spaces provided for selected apartments. Some apartments will also enjoy the benefit of having their own balcony.

NOW SOLD OUT

X1 THE TERRACE Liverpool PRICES FROM :

ÂŁ109,950 > 6% NET rental returns Assured 6% rental income for 5 years Fully managed and let by X1 lettings Great central location High-end fixtures and fittings Built by experienced developer

The Terrace is the fourth phase of the highly successful X1 The Quarter development (Phase 1 The Gallery and Phase 2 The Courtyard are fully tenanted with Phase 3 The Studios in construction).

This development is set to be a 101-unit new-build in the vastly popular city of Liverpool, launched as a direct response to the incredible demand for prime residential apartments in the region, shown by the incredible success of the previous phases.

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MAID MARIAN HOUSE Nottingham PRICES FROM :

£67,495 > 8% NET rental returns Boutique student living Located in Nottingham, a popular student city Great central location On-site gym Superior studio apartments for student residents

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Introducing Knight Knox’s newest student accommodation development—Maid Marian House in Nottingham!

Maid Marian House is the perfect student hub, perfectly situated in the heart of Nottingham’s vibrant city centre.

Containing luxury fixtures and furnishings, high-end communal areas and a SMART TV in every apartment, this development is a perfect fit for Nottingham’s ever-growing student population.

NOW SOLD OUT

ADELPHI WHARF PHASE 2 Salford PRICES FROM :

ÂŁ114,995 > Up to 6% predicted NET returns Excellent local infrastrucutre 10 minutes walk to central Manchester Experienced managing agent Great transport links and close to shopping Chronic undersupply of housing in Manchester and Salford

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Adelphi Wharf Phase 2 contrasts city and country living.

Located in Salford, bordering directly on Manchester city centre, Adelphi Wharf is a picturesque property overlooking the beautiful River Irwell.

Residents of Adelphi Wharf can pick from a range of high-end studios and luxury townhouses, as well as bespoke one, two and three-bedroom apartments.

NOW SOLD OUT

IN CONSTRUCTION

RATHMELL HALL York PRICES FROM :

ÂŁ69,950 > Circa 7% NET returns Luxury student accommodation Great central location On-site gym and laundry room Built by an experienced developer High demand in local area

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Comprising 63 units in the form of chic studio apartments, which are available as classic, premium, deluxe and deluxe plus investment options. All units come fully furnished with en-suite bathroom, a high quality fitted kitchen in a contemporary style, as well as benefiting from a high speed broadband connection.

Rathmell Hall is the ideal student accommodation for the students of York – not only does it offer its tenants luxury living quarters, but it also provides them with on-site communal amenities to allow its student tenants to get to know each other.

NOW SOLD OUT

NOW SOLD OUT

THE COURTYARD AT X1 THE QUARTER Liverpool PRICES FROM :

ÂŁ89,950 > 6% NET rental returns Finance options available Experienced management company in place Proven rental demand 5 minute walk to Liverpool ONE Opposite Liverpool Marina

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Built by an experienced developer in the residential buy-to-let market, The Courtyard at X1 The Quarter presents a unique concept in luxury living for the residents of Liverpool.

Completed in September 2014, the development contains 77 modern 1, 2 and 3 bed apartments, in addition to 3 bed townhouses. Offered at an extremely competitive purchase price and with virtually no maintenance required due to the new-build status of the development.

SPECTRUM Manchester PRICES FROM :

ÂŁ172,950 > Circa 5.5% NET rental returns Completed and tennanted development Private landscaped gardens Great central location Built by experienced developer High quality fixtures and fittings

Spectrum delivers the best of both worlds, combining chic, urban living with the tranquility of private landscaped gardens.

The studio, one, two and three-bedroom apartments are finished to the highest specification, with floor-to-ceiling windows and full-length balconies in most apartments.

Light floods into the living space and views across the city are a constant reminder of how close you are to everything you could want.

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BENTO Sheffield PRICES FROM :

ÂŁ279,000 > 8.62% NET rental returns Designed by award-winning architects Unique townhouse design High quality fixtures and fittings ECO-friendly investment Highly sought-after area

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Bento is a new high-tech concept in student accommodation, designed to cater to the modern student. Designed by multi-award-winning architects Coda Studios, Bento consists of 8 luxury 5-bed student houses, encapsulating luxury and stylised urban living.

In addition to its high-end exterior, the interior of Bento was carefully designed by Coda’s resident concept architects to ensure luxury chic living throughout.

NOW SOLD OUT

BELLS COURT Sheffield PRICES FROM :

ÂŁ69,995 > 7% NET rental returns Assured 7% rental income for 1 year Fully-furnished Excellent city centre location Luxury studio apartments High rental demand in Sheffield

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Bells Court, a perfectly located development in the highly popular student city of Sheffield!

Bells Court provides a mix of luxury studio apartments, perfect for both students and young professionals alike.

Demand is high for prime accommodation in Sheffield, with its rising house prices and thriving rental market.

LOOKING FOR PROPERTY TO BUY? BE SURE TO VISIT THE

The UK’s largest and longest running property investment event is presented at ExCeL London every April and October.

The major names in UK and international property will be out in force with plenty of ‘off-market’ bargain deals and show exclusives to choose from.

E FREW

SHO Y ENTR

REGISTER ONLINE AT www.propertyinvestor.co.uk NOTE: Seminar booking opens approximately 6 weeks before show opening day

THE BEST OF UK BUY-TO-LET

New-build buy-to-let Studios, 1, 2 & 3-bed apartments available Management companies in place In prime locations across Manchester, Liverpool and Leeds

PRICES FROM ÂŁ94,995