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THE ART OF THE INSPECTION TRIP / WOMEN AT THE TOP? // SELLING THE GREAT AMERICAN HOME ///
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CONTENTS This month
Contents Features 28 Bespoke villas: the elegant, the luxurious and the downright eccentric 35 The “holiday parks for the middle classes” are looking for overseas partners 36 The good, the bad and the ugly of selling to clients on inspection trips 46 Which is best? Advocates for social media and exhibitions set out their stall 56 FIABCI World Congress turns 65
Regulars 6 Top Ten News Stories 10 OPPLive Asia, review. Highlights of the inaugural event in Singapore 14 The Big Issue: Why aren’t there more women at the top of the property business? 72 The OPP Interview: Rony Tamayo of Lennar International comes to Europe 78 A life in the day of... the Prime Central London real estate photographer
Data 24 Doing business in Asia: an OPP survey 42 Mortgage guide to Portugal 45 FX report: the rise and fall of the yen 60 Country Guide: the US of A
12 Business briefing: time management, branding and how to write a press release 51 What it takes to make a great seminar 69 Show previews: exhibitions in Bangkok, Madrid, Qatar, Shanghai, Hong Kong and Kenya
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Business
03
The OPP Team
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EDITOR’S LETTER
Quality reigns supreme Isn’t it nice to do things properly? The people in this industry right now are the best the world has ever seen Editor, OPP Magazine Christopher Nye
Ae you doing “the greatest thing possible, or even a little greater”?
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Because good things only happen when good people work hard. This computer, this building, this city, were creating by people committed to making something not “just good enough” but something great. Someone in Singapore a few years ago determined that their new hotel wouldn’t just be any old building. Really? – you can imagine investors in the putative Marina Bay Sands saying – how
The dodgy dealers are still under their rocks and the best are benefiting from more customers will it be different? Well, it will comprise three 55-storey towers rising from Marina Bay, and across them a huge, ship-shaped platform will rest, with the highest, longest infinity pool in the world. It will be the best hotel in Asia. That’s how it will be different. That building played host to OPPLive Asia last week. A huge success; well over a thousand
visitors came. Read more about how the event went on page 10. This issue of OPP Magazine has high quality all the way through it. We are showcasing some aweinspiring bespoke homes on page 28. The job of architect was once scientifically analysed to be the most frustrating profession in the world – but you get a sense that the designers of these homes felt pretty pleased about themselves. Our Big Issue this month is women OPPs. We asked, on page 14, why are so many women doing so well as sales agents, property PRs, designers and journalists, yet so few are running our industry? Meanwhile, we have seen in recent exhibitions that the inspection trip is back! You may have mixed feelings about that – high pressure sales tactics on the trips earned our industry a bad reputation in some quarters, but a lot of property was shifted. Again, it comes down to doing them right. We also profile Lennar Homes (page 72), who build and sell one American house every 30 minutes, on average. Does that mean they’re shoddy? No, it means they are quality classics that people want to own. A bit like my Mac. Lucky buyers!
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am writing this on a MacBook, a wonderful meeting of art and engineering, originally created by Steve Jobs. His philosophy was summed up by one Mac engineer: “The goal was never to beat the competition, or to make a lot of money. It was to do the greatest thing possible, or even a little greater.” I’m sitting in a beautiful Georgian building with marble floors, a sweeping staircase and high ceilings, in the loveliest corner of Richmond, a classy suburb in the most dynamic city in the world (sorry, New York, Sydney, Paris, Birmingham). Aren’t I lucky? Actually we are all lucky, because we are in that phase of the business cycle when it is all about quality. Most of the dodgy dealers and incompetents are still under whatever rocks it is they hide beneath when times get tough, while those who were careful in the last boom, who survived the difficult days by being the best at what they do, are starting to benefit from rising customer numbers. Looking around the room at some recent industry events, I got a sudden sense of the real quality and experience in the room. There was not one shoddy operator there.
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GLOBAL NEWS
Top Ten News Stories Our pick of the news this month at OPP Connect More non-resident foreigners are buying homes in Spain the average price each nationality paid per square metre in 2013 RUSSIA 1,777 SWEDEN 1,641 BELGIUM 1,568 UK 1,447 FRANCE 1,443 OTHER EU 1,421 GERMANY 1,368 NETHERLANDS 1,318 OTHER OUTSIDE EU 1,149 ECUADOR 1,131 CHINA 1,035 COLOMBIA 1,031 ROMANIA 733 MOROCCO 626
Foreign (Non-Resident) Buyers of Spanish Property Germany
Other outside EU
Belgium
Other EU
China
Netherlands
Colombia
UK
Ecuador
Romania
France
Russia
Morocco
Sweden
2007
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Total Transactions by Non-Resident Foreigners
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2008
2009
2010
2011
2012
2013
+22.6% -28.1%
+19.7% -20.2%
+30.8%
+10.2%
24,566
17,668
14,100
15,537
18,594
24,316
29,811
2007
2008
2009
2010
2011
2012
2013
Spain’s College of Notaries revealed that the number of non-resident foreigners buying has risen each year since 2007 and from a more diverse range of nations. It also showed a wide range in the euros each nationality paid per m2.
MAY 2014
Global
Japan
Europe
Affordable housing crisis coming, warns RICS
Investors returning to Tokyo after 20 years
Euro investors will pay more for green
There is a pending crisis in affordable homes globally, warns the UK’s Royal Institution of Chartered Surveyors. Worst shortages are in developing nations, where new housing has failed to keep pace with economic development, and in wealthier nations where housing costs have risen faster than incomes, they stressed in their new report.
After a two-decade slump in real estate sales, investors are finally returning to Tokyo, Japan. According to figures released by a local think tank, the Real Estate Economic Institute Co., the average selling price for all types of condos in the centre of the city increased by 10.8% in 2013 from the previous year – in the midst of a 46% supply increase.
European real estate investors would pay more for green property or land and want a single certification scheme for building sustainability. The Towards a Greener Future report, from law firm DLA Piper, reveals that 88% of more than 100 European real estate companies believe green certification is an important factor when investing.
UK
Dubai
Greece
Suárez leads dream team to property investment
More price hikes in 2014, predicts HSBC
Greek golden visa “more competitive”
Uruguayan footballer Luis Suárez is putting rivalry aside to take a chunk out of the property market with Arsenal mid-fielders. The striker has joined Santi Cazorla and Mikel Arteta to put money into new real estate investment company Capital & Centric Investments LLP, which will buy and speculatively develop sites for rented homes in England.
After Dubai saw a dramatic price hike of over 30% last year, HSBC Global Research has predicted a further 10-15% growth in 2014 with “relatively stable” net yields of 4.5 to 5%. Prime apartment prices are likely to be the safest bet for big increases, with hardly any completions set for this year – in comparison to a healthy new stock of villas.
Rhodes agency Savvaidis & Associates, which has seen the first approval of a golden visa from a Russian couple, says its low investment of €250,000 is attracting rising numbers of overseas investors. “We have seen an increase in property requests from Russians, Chinese, Arabs and other nonEU nationals,” the agency told OPP Connect.
Canada
Zillow and Legu team up to target Chinese buyers
Latvia doubles golden visa threshold
Home prices “set to grow 3.8% this year”
US-based Zillow (www.zillow. com) has announced it is joining forces with China’s second largest real estate website, www.leju.com, to provide Chinese-language listings of US property from this summer. The move comes after Chinese-language site www.meiaoju.com was launched targeting properties in the US and Australia.
The minimum golden visa property investment in Latvia is being doubled from €71,000 to €150,000, plus a €25,000 fee and is limited to only 800 applicants a year, before rising to €500,000. The Latvian scheme has been one of the most popular in Europe. It has attracted real estate investment from overseas investors of €450million since 2010.
Average property values in Canada are set to rise 3.8% this year, 1.3% higher than estimated three months ago, and by another 1.1% in 2015, says the Canadian Real Estate Association. Additionally, the Association said sales in 2014 are forecast to reach 463,700 homes, up 1.3% year-on-year and in line with the 10-year average.
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US
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NEWS Analysis Words | Adrian Bishop, Editor, OPP Connect
Going above and beyond What is the secret to being a winner at sales? It’s all about trust, says Century 21’s top performer
W
hat does it take to be a great estate agent? This month, several agents in the US have been recognised among the best in the world. Angela Kenny, from Florida agency, Century 21 Team Feltrim, sold 374 homes, condos and lots to claim the title of Number One Century 21 Producer in the US and the World by Units. She was presented with a crystal trophy in Las Vegas.
TRUST, AND STAY IN TOUCH Angela and her husband Gary, the Feltrim Group CEO, tell OPP that the secret of sales success is hard work, confidence and trust. “We can be Facebooking, Tweeting or Googleing, but it does not work if there is no trust. A buyer must have trust in an agent. You can spend a fortune driving the consumer to your website, but if that consumer does not like you or does not trust you, it won’t work out. “You want to know your agent knows the area. You want to know your agent will give you the right
Clients want to know that their agent has experience, and won’t panic and abandon ship
for a commission, but will be there to assist the transaction after the deal is done. Very good agents keep in touch with their clients over time. Even if it’s twice a year, you will be surprised the amount of business that is gained by agents who keep in touch with their clients.” One example of the sort of customer service required happened recently. “We had a closing in the office for a buyer and everything was set up for the buyer to take possession of his new vacation property at 4pm. Well, the bank did not process all the paperwork in time. “One of my agents paid for the buyer to stay in a hotel that night and reassured the buyer it was not their fault. They were angry that they did not get into their new home; however, the buyer was extremely happy with our agent and recommended another buyer to him. Referrals are powerful and agents forget that. In real estate if you don’t look after the client that client will tell plenty of their friends how bad the service was and you will get no referrals.”
MAGNIFICENT SEVEN Another group of top-performing US agents is the ‘magnificent seven’ invited to join the elite division of Engel & Völkers, looking after its wealthiest investors. There are just 21 agents in the Private Office network, out of a total of 4,500 Engel & Völkers advisors. Three agents from Engel & Völkers Scottsdale, Arizona and one each from Santa Monica, Wellington and Miami join the 14 others from the UK, Spain, Switzerland and Germany. Lindsay Rothermund, from Scottsdale, says, “It is a prestigious title to have and pretty incredible to have three advisors in the same office. It is just down to the level of service they provide and how hard they work.” Meanwhile, in New York, broker brothers, Oren and Tal Alexander, are reportedly selling one property alone worth US$100million. The state of Qatar has signed the contract to buy an Upper East Side townhouse to become their consulate – a record-breaking deal that could well earn the Douglas Elliman Real Estate sales staff an award or two in future.
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advice. You want to know your agent has experience and if a problem does occur, they won’t panic and abandon ship.” It all boils down to the fact that real estate is a ‘people business’. “The buyer or the seller want to know their agents are not just in it
Rick Davidson President & CEO of Century 21 and Angela Kenny
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NEWS OPPLive Asia Words | Christopher Nye
Singapore steps up
OPPLive Asia proved that there is huge demand in Singapore and South East Asia for properties abroad
B
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oldness be my friend. Arm me, audacity, from head to foot! Who said that? William Shakespeare, whose 450th birthday on 23 April was also the birth of OPPLive Asia. And by mid-day on the 23rd, any doubts as to OPP’s boldness in choosing such a high-profile venue as Marina Bay Sands were gone, as some 600 delegates streamed through the doors on
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“We have just booked the same venue for OPPLive Asia 2015” (John Howell)
day one alone. It all proved that there is a huge appetite among agents in Singapore for selling overseas property, but tempered with an awareness that this is new and untested water for many Singaporean agents who, until recent cooling measures, were doing very nicely just from domestic sales. “It was a huge success,” says OPP Editorial Director John Howell. “Exhibitors got a fantastic response, delegates were very happy, the venue and its staff were superb. We have just booked it all again for next year.”
AWARD winning Julie Harvey of Pinnacle MC Global won the OPP Making a Difference in Asia Award, nominated by her fellow professionals. Pinnacle has
Left to right: Thijs Stoffer, Xavier Wiggins, Farook Mahmood, Jeff Foo
made a huge success of selling UK student properties all over Asia. Another winner was OPP’s Xavier Wiggins (above), given a special award by the International Consortium of Real Estate Associations (ICREA) for his success in bringing together Singapore estate agents with the world of
NEWS OPPLive Asia
“Awesome 2 days at OPPLive Asia. We learned and shared property insights and opportunities with real estate professionals from different parts of the world.” REAL CENTRE ACADEMY
“We were very impressed. From start to finish we were inundated by very good quality agents with a lot of interest in our projects. We made a lot of good contacts – hopefully they’ll come to fruition and turn into good leads!”
IAN PARDOE, CEO OF CONTEMPO REAL ESTATE
“We met not only Singapore agents, but agents from Malaysia, Thailand. China, Burma, Hong Kong etc. This is a great opportunity for us to develop our markets in these areas.” JULIE HARVEY, PINNACLE MC GLOBAL
international property. He received a hand-crafted, silver palanquin from Farook Mahmood, Chair of ICREA and Jeff Foo, President of the Institute of Estate Agents (IEA).
‘BRUTALLY HONEST’
spoke with great honesty about the Malaysian property market. It was a very direct and frank assessment of the Malaysian market – warts and all.” Another stand-out seminar came from Tyler Wine, of American Real Estate Investments (AREI), exploring the United States property sector. “He was brutally honest when talking – which has been one of the themes of the day.”
Social media was united in its praise for OPPLive Asia: @Jeffning: If my brain aches, I know you’ve provided value. @jamesdearsley: A couple of very long days @OPPLive14 but a really well run exhibition…… @propertyknight: Busy show at #opplive #singapore well done guys. @CoAssets: We’re pleased to be a part of #OPPLiveAsia. Congrats on the good show. @CoAssets: Full house during Getty Goh’s seminar at #OPPLiveAsia
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The seminars were a hit, with packed out theatres and quality advice. Intelligent and interested audiences inspired the panels, said seminar chairman John Howell: “I chaired a panel on investing in US property and delegates asked pertinent questions and were given fair and honest answers. They put forward various theories about whether cheap property was worth investing in, asked about the pros and cons of investing in comparable markets, such as California and Florida, and how changing market conditions from year-to-year affected things.” Among first day highlights was a presentation from Siva Shanker, of the Malaysian Institute of Estate Agents (MIEA), on the
Malaysian property market, says Mr Howell: “It was very funny and also very pointed. Siva Shanker
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BUSINESS Briefing
Business Briefing Ideas and inspiration to help you run your business Getting Things Done: The Art of Stress Free Productivity by David Allen David Allen’s 2002 book is regarded as a masterwork in getting organised. But frankly, it’s also quite boring and says in 288 pages what we will now say in 181 words. With the system you take every little plan, worry or dream out of your head, where it is causing you stress, and onto a series of amazing to-do lists. Here’s how: Buy files, file labellers and filing cabinets. Nice ones. Go through your office, desk, car, anywhere you keep stuff, and chuck every paper, note etc into a giant inbox. Do the same with your head, writing any future ideas on separate bits of paper. Chuck them in the box too. Now go though the inbox, methodically, leaving nothing out. For each thing: is it actionable? No? Then either (1) trash it (2) make a file and incubate it in a ‘someday-maybe’ file or (3) hold it for review Actionable? If it will take less than two minutes, do it now. If longer than two minutes, can you delegate it? Then do so. Can’t delegate it? Then create a file, write down the very next action required and schedule that action. Do that action as soon as you can, and then write down the next action. Work through the projects.
Brilliant Branding Bats and Apples
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By OPP Marketing, powered by D2E
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If you look closely at a bottle of Bacardi rum, you’ll notice a bat on the logo. Why has it been there since the brand was launched in Cuba in 1862? Because Dona Amalia, wife of the founder, noticed a colony of fruit bats – a Spanish symbol of good luck – living in the roof of their distillery. The largely illiterate Cuban population of the time would recognise the logo when they came to buy it. Dona Amalia was a pioneer in brand identity. She grasped that consumers will use symbols to identify brands among a sea of choices. Same when you’re walking round a supermarket. Some brands even design their packaging to look like their more established competitors and fool customers, but they’re not allowed to steal a logo. But how much better if the logo really means something to the company? Early Christians knew the power of a logo, the cross, and so did latter-day Messiah Steve Jobs, who named his company after the apple farm collective he lived on, while signifying the California counter-culture and very much not something his archrival IBM would have done. Think about your own company history, location, people, ethos. Chances are you’ll find a story worth incorporating into your logo. Let us help you. We are D2E and OPP marketing.
MAY 2014
MEDIA: Write the perfect press release “Make your headline stand out! Your press release is competing with hundreds of others and it is your headline that will first catch a journalist’s eye. Yet many PRs spend ages crafting the perfect press release but forget to put any real thought or imagination into the headline. Summarise the story in the first paragraph. If you haven’t grabbed the journalist’s attention by the end of the first paragraph, you can forget it. Give them the whole story in the first four lines in case that’s all they have space for. After that comes supplementary information. Never under-estimate the value of great quotes – wherever possible ensure to include quotes from senior executives of the company or organisation you are writing the release for. Equally, include quotes from those who will benefit from the product or service. Journalists love this and it brings a human element to the story. Pics and stats sell stories! Always choose the best High Resolution pics you can find, but don’t send more than three or you’ll clog up the journo’s inbox (let them know that you can supply more). Include any statistics that underpin your release and might inspire a reader. Give a name and number for a further quote. Many editors won’t want a generic quote, but want to ask supplementary questions. Make someone available.” Andrew O’Kelly is Business Development Director at Property4Media.com, the UK’s leading distribution and archive service for property press releases, with 1,600 journalist subscribers. They email an average of six daily requests for information from our journalist users to our PR subscribers. Contact Andrew at andrew.okelly@property4media.com
A minute with…
Stat of the month
OPP’s Social Media Executive, Anna Charmantzi (right) Interact! It’s called social media for a reason. The key for a successful Twitter account is interaction with people. Advanced Search Almost no one knows about the Advanced Search in Twitter (twitter.com/search-advanced), which lets you search for people, industries or competitors in your sector, sometimes with better results than Google searches. Short is beautiful Can you waffle in 140 characters? Yes, short tweets get RT, favourited and mentioned much more than longer tweets. Keep it short.
Lists Create your own private or public lists to organise the people you follow and be able to have a more clear view of their Tweets.
Off-plan studios in Battersea Power Station, the UK’s most iconic redevelopment, maybe ever. (€971k, US$1.67m) www.batterseapowerstation. co.uk
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Call to action What do you want your followers to do next? A call to action urges your readers to pay attention to your tweets and interact with your content.
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BIG ISSUE Women in real estate Words | Francine Carrel, International Property Reporter
Invisible barriers?
Welcome to real estate. As you’ll see, we’ve modernised and make a few renovations. But, please, do stop to admire the glass ceiling...
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n most of the world, there’s never been a better time to be a woman. We can vote for who we want, marry and divorce who we like, work in almost all industries and wear bloomers on bicycles to our hearts’ content. After a long time of effectively ignoring over half of the global population, business has woken up to the fact that female professionals are just as competent as men – and, in some areas, can bring a new and beneficial skill set. So why are we still seeing an imbalanced number of women in the top levels of real estate?
Is it just a matter of giving it more time, or is there something both employees and employers should be doing differently?
Agents & brokers On the ground, women have their fair share of property professional representatives. Across much of the world, female real estate agents make up a little more than half of the total sales agents. Robyn Waters, World PresidentElect of the International Real Estate Association (www.fiabci.org) said, “In Australia, women are traditionally over-represented in
the property management field. We are seeing highly competent and extremely successful female sales agents, some of whom take the next step to directorship or ownership of a real estate practise.” Why so many? Annie Lu, Director of Overseas Asset Management at Well Trend United in Beijing (www.welltrend.com.cn), said, “As sales people, women are more sensitive to the real needs of the customer, making it easier to facilitate transactions. On the other hand, women experience more of life [at home], so in terms of product design, they can
MAY 2014 share more comprehensive and detailed consideration to make the product more user-friendly.” When selling for lifestyle, it is often women who have the last word on what’s practical for the family. Just as some men prefer to work with male executives, women will often trust female agents or sales managers above their male counterparts.
The Glass Ceiling Moving on up we encounter The Glass Ceiling – that barrier that lets you see the top, yet stops some women from reaching their
The Glass Ceiling has been a hotly debated topic in the business world for decades
fashioned misogyny and sexism. Whichever way you look at it, it can’t be denied that top-level management positions and boards across most professions are seriously uneven when it comes to gender (see figure 1). Julie Harvey, International Sales and Marketing Director of Pinnacle MC Global (www.pinnaclemcglobal. com), reckons there is a 70% of top level jobs in South East Asia go to men. Bad enough, until you consider China, where Annie Lu estimates over 90% of top jobs are held by men. Look at the ‘board’ or ‘key executives’ page on most residential real estate companies’ website and you’ll notice an overwhelming majority of men – usually in the 45-65 age group.
Will it change?
full potential. It has been a hotly debated topic in the business world for decades. Some think it’s down to women starting families or not being as ‘business minded’ as men; while others blame it on good old-
That age group is relevant. One thing to remember when analyzing the number of women at the very top of big business is that they haven’t had the same opportunities as men for very long, relatively speaking. It’s hardly surprising that the age group who split school classes in two to do woodwork and sewing – the age group who would encourage women to become
FEMALE EXECUTIVE
OFFICERS
0 /10 0 /5 0 /11 2 /6 3 /6
SAVIL LS KNIG HT FR ANK C B RE JL L FIAB C I
secretaries rather than attend university – are still experiencing a noticeable gender gap. And yet a vocal group point to these statistical discrepancies as proof that women “don’t have what it takes after all”. After centuries of women being forcibly kept out of business, it would seem sensible to give them a few decades’ chance to catch up
Figure 1: Europe/Asia comparison for women on boards (all businesses)
Women’s representation on boards, by country
Women’s representation on executive committees, by country
35
Europe average* 17%
Europe average* 10%
20 16
15
16
14
15 11 8
8
6
ASIA AVERAGE
US
NORWAY
FRANCE
GERMANY
UK
ASIA AVERAGE
US
NORWAY
UK
FRANCE
*Including Sweden, Norway, UK, Belgium, Netherlands, France, Czech Republic, Italy and Germany, some of which are not shown on this chart Source: McKinsey proprietary database. 2011: annual reports
GERMANY
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BIG ISSUE Women in real estate before judging harshly. According to some, the positive signs are already there. Patricia Delaney, FIABCI Secretary General, said, ”Traditionally it has been a little harder for women in the professional world to achieve the same treatment. However, today we are seeing more equality taking place within the corporate business structure and within the real estate industry overall. As with most sectors, women are more and more present on every level within the property industry. We see this within FIABCI as more women are becoming actively involved within the Federation.” Robyn Waters added, “When I started my career and became involved in Real Estate Institute activities, there were only a
A recent survey revealed that 68% of respondents had not directly negotiated a pay rise handful of mature, professional ladies, mostly involved in family businesses. Fortunately, I was able to benefit from their mentoring and shall be forever grateful for their influence. Now when attending education programs, seminars as well as Congresses, I see the female-to-male ration has increased to 50/50.”
What can we do?
both and it was a real juggling act) but now in their 50s they are in low paid/boring/part time jobs.” Robyn Waters added, “Application, diligence, utilizing all available networking opportunities and continuous professional development are all tools which women can use to reach the highest positions within the real estate sector.” Another aspect is a lack of direct negotiation on the part of women. Cobalt Recruitment’s recent survey of women in real estate - the respondents of which spanned toplevel posts and managers around the world – revealed that 68% of respondents had not directly negotiated a pay rise. This could be down to a number of factors: lack of training in negotiation, an unwillingness to seem too “pushy”, or simple resignation to the idea of the Glass Ceiling. Whatever the reason, it’s an important skill to learn. If you don’t ask, you will very rarely get. There’s also a big element of responsibility on the employers’ side. Cobalt’s research came up with sound pieces of advice for employers: Recruit externally rather than promote internally (thereby avoiding aspects of nepotism and
the ‘boys’ club’ mentality). Encourage more flexible working (meaning women don’t have to choose between career and family). Proactively encourage female staff to apply and consider setting up mentoring
Around the world Of course, attitudes towards women vary greatly across the globe. Annie Lu said, “Basically, female
FEMALE BOARD
MEMBERS
1/7 1/5 1/10 3 /10
SAVIL LS KNIG HT FR A NK C B RE JL L
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What’s important is figuring out how women who are now working their way up to senior positions can avoid coming to a grinding halt in middle management. “Women have to work much harder than men to achieve positions of authority,” said Julie Harvey. “I suppose I have always been driven to succeed and at the end of the day – the sales figures speak for themselves. I have been promoted on my own merit. Many of my old school and college friends chose family over career (I had
A mentoring system can stop women feeling isolated
17
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BIG ISSUE Women in real estate and male real estate professionals are not treated the same in China. There are always more promotion opportunities for men; with the same level of ability, men always get better pay and more promotion opportunities than women. Women are more respected in Europe. She said that attitudes were getting better, though. “In China, the situation is constantly improving. In the property sector, more and more top leadership positions of large companies are filled by women. For example, the executives of Poly Real Estate, Fuhua Group and Longfor properties are women.” Julie Harvey said that she experiences as much respect as her male counterparts. “I am very well respected in SE Asia – this is due to being British rather than just
I was only challenged when I went to a property show in Dubai, the Arab men would not talk to me!
Nicola Huelin is a sought-after business, career & lifestyle coach and founder of CEO Mums and the ‘More than Networking’ business events. See www.ceomums.co.uk When taking time out for maternity leave, what are the steps to take to ensure your career doesn’t suffer? Going into the baby zone can be a real shock for careercommitted women... there’s a lot of emotions that come with it. Part of this is the fear of a successful career suffering. However, there are still ways to keep on track when juggling includes a small baby. Many women find that ‘keeping in touch’ days (allowed with your maternity allowance) are a good way to keep a hand in. Staying in touch with colleagues or business contacts and having time to read up about your business are good ways to keep the working brain switched on and making it easier to step back in fully once the time is right. When you’re back, how do you best get back in the game? If women can build a clear vision of what they want from their career in the longer term, and get clear and focused professional and personal goals in place before they get back in the driving seat, then I think that getting back in the game can happen surprisingly quickly. How do you juggle a high-powered career when you have a young family? It’s not easy and there’s not a ‘one size’ fits all solution, but my tips include: 1. Getting a support network is essential. Good childcare (whether that be a nanny, nursery or Granny!) is key, as is having an understanding and supportive partner and family. 2. I always tell my clients that they need to understand what drives them, what their own needs are, and balance that with their work and family values. 3. Keep family time as just that... be fully present in the moment. Keep work activity separate so your children don’t resent your laptop. You can then fully enjoy family time and your children will feel the most important thing in your life at that moment. How do you deal with any prejudice coming from being (a) a woman and (b) a mother in a senior position? I truly believe that women – and particularly mothers – need to take control of their own working environment and be focused on what they truly want to achieve. A recent study ‘Cracking the Code’ (carried out by KPMG and business psychologists YSC on behalf of the 30% Club) found that it isn’t child-rearing that prevents women from being promoted. Men are simply given a shove up the career ladder more than often than women. This is interesting as it shows that some of the typical ‘perceptions’ aren’t necessarily true.
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being a woman. They do respect my senior position and experience in the industry as well. “The only time I faced challenges recently was when I went to a property show in Dubai. The Arab men would not talk to me!” Patricia Delaney and Robyn Waters said the differences could be overcome, “When you operate in an international environment, you always need to be aware of cultural differences and sensitivities. Good preparation, recognition of differences, and respect for local cultures go a long way in ensuring that you can conduct business successfully on a global basis.” Robyn Waters added, “Yes, there are significant differences in cultural attitudes towards woman. However, be prepared, understand the cultural differences, processes and rules of engagement and you will succeed. Act professionally at all times but don’t be overly familiar.”
HOW TO BE A CEO MUM
19
NEWS Development news
Keeping track of major developments Greenland centre launch second stage Greenland has launched the second stage of the Greenland Centre, their first Australian project, putting 200 apartments on the market from 12 April. The development will be the tallest residential tower in Sydney, reaching 66 storeys. The most expensive apartment so far was a three-bedroom unit on the 55th floor which went for AU$3.7million. The verandas way up in the sky were a challenge for architects BVN Donovan Hill, who designed the “Sydney Balcony” to be sheltered and secure; not too alarming or windswept for those nervous about heights. Completion is expected in around four years. www.greenlandcentre.com.au
Launches, milestones, openings... please send news and images of your development to chris.nye@opp-connect.com
Twin tower project launched in Juffair
Fairmont, the US-Canadian hotelier, has opened its first residential project in China. Fairmont Chengdu Residences, in Sichuan’s capital
Chengdu, is comprised of two 36-story towers and will feature 382 residences aimed at the high net worth community. The development is adjacent to the soon-to-open 347-room 6-star Fairmont hotel, which will also include 52 serviced apartments with a range of different ‘service packages’. Buyers can choose from three home interor designs including two-bedroom suites offering over 89 square meters of living space and luxurious three-bedroom suites of more than 129 square metres. Residence services include a dedicated owner-services team, a 24-hour concierge, doormen and security as well as an exclusive resident’s lounge, private gym and a children’s club. www.fairmont.com/explore/ residences
A twin-tower residential project has been launched in Bahrain. Juffair Heights will reach 28 and 29 storeys in the upmarket Juffair area. The project will consist of 376 one- and two-bedroom apartments, with the option to convert them into larger three- or four-bedroom units. Apartments are on sale for US$133,000-$172,000, priced to appeal to the mid-level market from which there is significant demand in the country. The construction of the towers is underway and the apartments will be ready for the third quarter of 2016, the company said. www.juffairheights.com
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Fairmont’s China project opens
21
NEWS Development news
Villas at Saint Lucia nearly there, say developers
The first 12 beachfront villas at Six Senses Freedom Bay are scheduled for completion by the end of 2014, say developers Freedom Saint Lucia. Final detailed plans for each of the residences were submitted to the Government of Saint Lucia and approvals have now been granted. NH International (Caribbean) Limited have been appointed for construction work. The villas will follow a “naturally modern” design, blending inside and outside elements. www.freedombaysaintlucia.com
silver Beachside house transforms with the weather
Norwegian architecture is often strange and beautiful, and this aluminium house is no exception. The seaside cabin is made of three interconnected areas, arranged to
create three outdoor spaces. The bedroom, kitchen and bathroom area is quite enclosed, while the large living room is more open to the light. The aluminium cladding is sea-water resistant and changes quite dramatically in appearance as the light changes. www.jva.no
Building bulletins
Diamond Tower fired up
Canary Wharf Group have started enabling work on two major projects on the London Docklands site. The two tower developments are Heron Quays West, an office complex, and a residential high rise dubbed the Diamond Tower after its repeating-pattern steel shell. Properly named the Newfoundland residential block, the development will rise to 58 storeys and incorporate 470,000 square foot of apartment space. Full construction is likely to start in mid-2014. www.canarywharf.com
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Resumed construction work in Dubai was worth $12bn in 2013, according to a MEED Projects report. The report went on to predict that construction projects worth $23bn will be awarded this year. Injaz Development Company’s Al Nada project in Dammam has reached a key milestone in infrastructure construction, said the developer. Omar Al-Kadi, the CEO, said he is pleased with the 92,531m2 development’s “rapid progress”. Ezdah Holding has announced that its 11,000-unit residential project in Al Wakrah, Qatar, will be completed by 2017. The company says that the development will be “for the mass market” and open for individuals and corporations to purchase. Israel approved the construction of 184 new housing units in East Jerusalem. Ground works are expected to begin in a few months.
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FEATURE Industry Insight Asia, Part 1 Words | John Howell, Editorial Director, OPP
Industry Insight: Doing Business with Asia
We asked OPPs to help us understand what’s been happening to our sector in Asia. We were very pleased with the response...
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O
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ur questions were simple. What’s really happening with the overseas property industry in Asia? Who is selling international property to Asian buyers? Who is buying where, why and what? How difficult have they found starting and doing business? How much money are they making? Your responses were, to say the least, surprising. They were packed with detail – far more than can be covered in this series of articles – and they provided invaluable information for anyone doing or thinking of doing business in Asia and, in particular, in South East Asia or China.
Who Took Part? Seventeen countries were represented in the survey. The
most popular five (Singapore, Malaysia, India, UK, US) accounted for 79% of the responses. Others who replied came from places as diverse as Mexico, Egypt, France and New Zealand. The large majority (77%) of respondents sold international property to Asian buyers. Most of the others sold local property to international buyers. 94.4% were sales agents, 5.6% developers. Most (46%) sold directly from their own offices whilst 36% sold via local agents. See Figure 1 for other options. Most of the companies that replied were well established: only 7% had been in business for less than two years, 38% had been active for more than 10. This surprised us as there is a common perception that the Asian markets are dominated by thrusting (and inexperienced) new businesses.
Although the largest single segment of responses came from companies with five or fewer employees, larger companies – some huge – were also well represented. See Figure 3. The survey dealt both with those selling international property to local Asian buyers and those selling local Asian property to international buyers. This article deals only with the former. The sales of property within Asia will be dealt with in a future article. It also dealt with training and agent support, both of which will also be dealt with in the June issue of this magazine.
Sales to Asian Buyers The largest single segment of our participants was generating 10% or less of their business from the international market, but, for many, international sales accounted for
MAY 2014 more than 70% of their work. See Figure 3. The preponderance of companies only partly engaged in international work comes as no surprise – there are lots of big international players who also have a substantial ‘home’ market – but the number almost fully devoted to the Asian buyer investing in property overseas was not what we had expected. They were selling to people from many countries, some we had specifically asked about and others we had not. For the percentages selling into our key markets, see Figure 4. The most common of the ‘other’ countries were India and the UAE but almost every country in Asia had one or more of our respondents selling into it. The dominance of the Singaporean, Malaysian and Chinese markets is clear and no surprise to OPP. OPPLive Asia (covering Singapore & Malaysia) and OPPLive China reflect the red hot interest in these markets and the thirst for knowledge about them and contacts in them. The people answering the survey had sold hugely varying amounts of property in the previous year. Most were selling fewer than 50 per year. See Figure 5. For agents, the annual commission earnings averaged US$432,648. However, given the range in sales numbers, there was also a large range in commissions received; literally from US$5 to US$5 million! For developers, the average sales in the year were worth US$6.7 million.
The Buyers
BUSINESS ARRANGEMENT
PERCENTAGE
We work directly from our main offices
46.4%
We have set up a branch or representative office in the country where we are working
12.5%
We have set up a separate business in the country where we are working
5.45%
We use local agents and work through them
30.4%
Other
5.4%
Figure 2. How large is your company? (Number of employees)
0-5 6-10 11-20 21-50
51-100 101-500 500+
Figure 3. What percentage of your business is international? 10 08 05 03 00
0 - 10
21 - 30
41 - 50
61 - 70
81 - 90
Figure 4. Which countries do you sell to? PERCENTAGES SELLING TO...
PERCENTAGE
Singapore
82
China
68
Malaysia
48
Indonesia
25
Hong Kong
21
Japan
16
Thailand
9
Other Asian Countries
41
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We asked detailed questions about the buyers in each of these main markets: what percentage they made up of the company’s business, why they were buying and how well informed they were. The overwhelming importance of the person buying for investment is clear from Figure 6. On average, across all the countries, 78% of all buyers were buying as an investment. Yet the figures deserve closer study. The famous ‘Plan B’ buyer –
Figure 1. How have you organised your business?
25
FEATURE Industry Insight Asia, Part 1
Figure 5. How many sales have you made in the last year?
26
26
11-20
21
21-50
23
51-100
10
101-500
13
500+
5
PLAN B OTHER
112,500
75,000
37,500
Other
Thailand
Indonesia
Mayaysia
Japan
Hong Kong
Singapore
0 China
Figure 7. How much do your buyers know? (Scale of 1-10) 7 5.25
Next Month
3.50
Next month we will look at the people selling Asian property to foreign buyers, training, problems associated with doing business internationally and agent management.
1.75
Other
Thailand
Indonesia
Mayaysia
Japan
00 Hong Kong
property market, measured on a scale of 1-10. See Figure 7. The unfortunate gap for Japan is due to an error in the programming of our survey. We apologise. The fact that buyers from Hong Kong and Singapore are well informed comes as no surprise. They have been investing in overseas property for years and the markets there are extremely active and well covered. The level of knowledge in Indonesia surprised us; it did not tally with the anecdotal evidence we have been receiving about this market. The lower score of Thailand was also a surprise. We shall investigate these anomalies.
0-10
INVESTMENT EDUCATION LIFE STYLE
China
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The Japanese and the Thais have discovered the joys of the ‘lifestyle’ purchase
PERCENTAGE
Figure 6. Why are your buyers buying?
How knowledgeable are the asian buyers? We asked how knowledgeable buyers were about the international
NUMBER OF SALES
Singapore
the person who wants to get some of his money out of the country and a visa to live somewhere else ‘just in case’ it all goes wrong back home – seems to be declining in numbers, especially outside China and the “Other” countries – mainly new entrants to the market. Buyers from Hong Kong and Japan don’t seem to be buying in order to have a place to house their kids during their education. Buyers from Malaysia, Indonesia and Thailand are. The Japanese and the Thais have discovered the joys of the ‘lifestyle’ purchase to a far greater extent than others in the region.
AiR
ALTERNATIVE INVESTMENT REPORTS “FEIFA recognise the need for balanced, informative and regularly updated research on different asset classes. The AiR reports are an extremely valuable resource for any adviser researching the alternative investment sector and the various products and strategies in the market; we are pleased to be able to make their reports available to our international membership base of financial advisers and wealth managers.” Paul Stanfield, Chief Executive, FEIFA “Intelligent Partnership are undoubtedly the leading provider of research, reports and education on Alternative Investments; as a professional investor or intermediary we would urge you to read their regular editorial in Investment Life and to access their reports on the various alternative investment sectors they cover – there really is no better place to get this quality of research.”
The alternative investment sector is extremely wide ranging and the AiR reports aim to educate the reader and aid their understanding of the sector. “Alternative” is a very broad term which is often used in the investment world to categorise any asset class that isn’t part of the mainstream public markets such as equities, funds or bonds. Assets covered include property, land, forestry, energy, farmland, precious metals and collectibles. Our analysis is based upon in-depth market research; giving readers an up to date snapshot of the types of alternative investment products available in the market. Comprising a market update, demand and supply factors, investment considerations as well as activity and potential in the sector. Our reports are primarily aimed at advisers, intermediaries and professional investors that want to carry out research on the sector and investment opportunities available.
AiR
ALTERNATIVE INVESTMENT REPORT
AiR AiR AiR
ALTERNATIVE INVESTMENT REPORT
PURPOSE BUILT STUDENT PROPERTY – 2013
ALTERNATIVE INVESTMENT REPORT
ENERGY AND RENEWABLES – 2013
ALTERNATIVE INVESTMENT REPORT
HOTEL AND RESORT PROPERTY – 2013
INDUSTRY REPORT 2013 PURPOSE BUILT STUDENT PROPERTY
COMPLIMENTARY COPIES www.AiReport.co.uk/a/ILIFE
FORESTRY (COMING SOON)
PLEASE VISIT:
INDUSTRY REPORT - FEBRUARY 2013
www.intelligent-partnership.com/reports
ENERGY & RENEWABLES
FOR OPP READERS
2013
Steven Mallach, Editor, Investment Life
HOTEL & RESORT PROPERTY
Intelligent Partnership Ltd 0044 203 375 1700 AiR@intelligent-partnership.com www.intelligent-partnership.com
DESIGN Bespoke villas
INSTANT CLASSIC
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In the first of a series in new design, this month we look at bespoke villas – the grand designs that inspire just as they make you sick with envy!
28
MAY 2014
A
re recessions good news for bold new designs? A surplus of labour, land and materials, with construction firms and architects hungry for work, makes good conditions for those with money to let rip with their wildest plans, and plenty of people still have plenty of money to spend on a dream house. On the other hand, isn’t great design more commonly the result of a mass of property being developed, with new ideas, rivalries and competition between firms? For architects, the signs remain mixed, especially in Europe. The Q4 2013 European Architecture Barometer Report surveyed 1,600 architects in eight European countries and found that architects in France, Italy, Spain and Poland expect there to be less work in 2014 than there was in 2013. In the UK, however, two thirds of architects saw their order books grow in late
2013. Dutch and German architects also saw more work coming in compared to the previous year. There is certainly no shortage of work in the US, where building permits are being granted at the highest rate for five years, and single family home permits rose 10.5% between November 2012 and November 2013. There was a hefty rise in building permits in Australia too, of 23% between February 2013 and 2014. Australia has also seen a boost to new home design from overseas buyers because they are restricted to buying new-build properties. Lifestyle and holiday home buyers from overseas do often opt for more innovative designs, simply because they are using a home differently. They have less stuff kicking about. They tend to buy in warmer, more beautiful places where they want to enjoy the views. They want pools and outside space. They are buying for fun. I’m not sure if the homes we showcase here are ‘fun’, but they are beautiful. Whether neo-classical or neo-modern, there are lots of
clean lines and empty balconies. There is nothing fancy or fussy here. The neo-moderns love long horizontals and superbly functional living spaces and a surprising number of them are on stilts and pillars. There are several other themes. Firstly, materials. The houses here are proud of materials they use and proud to show them off. Wood tends to look like wood, sometimes even rough wood. There is clever use of concrete, steel and stone – raw materials that are worked with and celebrated, not covered up. Open plan is still very much in vogue. So are upside-down houses, where the living rooms get the views. That’s just sensible – another bonus of holiday homes, people are willing to go back to basics and think about how a house really works. Instead of square houses, we see planes and rectangles. And most of all we see lots of technology but not much ‘stuff’. Obviously, because these are largely show homes being photographed. But still, the trend is clearly for more minimalism, if that’s not an oxymoron.
San Lorenzo North, Quinta do Lago Alrgarve, Portugal Architect: de Blacam and Meagher Achitects About: Sleek modern architecture, designed with simplicity and beautiful materials. There are 26 plots on this development at the southeastern corner of Quinta do Lago, with views towards the golf course, beach and Rio Formosa Nature Park. www.sanlorenzonorth.com
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29
DESIGN Bespoke villas
White Lodge Oxted, Surrey, UK Architect: Dyer Grimes Architects About: A three-tiered structure within the sloping site, maximizing the privacy afforded by surrounding trees. The cantilevered design creates the illusion that the structure is hovering effortlessly in mid-air above its own reflection in the glass-ended swimming pool below. With extensive glazing throughout, this draws the surrounding landscape into the house and maximizes views from the first floor of the Surrey Hills beyond. It also answers the full brief of the client who first and foremost wanted a house to entertain in. Cover image
ZEN GARDEN HOUSE COLORADO, USA
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Architect: David Jay Weiner. dweinerarchitect@gmail.com About: A client wanted a small retreat 8,500 feet up in the high desert of the San Luis Valley. It is a singular enclosure that wraps and folds around itself to form three interior spaces. Large windows capture the views (and solar energy) and blur the distinction between inside and outside. The house is designed to be economical both in construction and maintenance. Being remote and off-the-grid, but with over 300 sunny days per year, the 1,600 sq. ft. house is powered with a solar energy photovoltaic system.
30
MAY 2014
House for a Photographer Wales, UK Architect: Hyde+Hyde, www.hydearchitects.com About: In an ex-quarry by a National Park, with a modest budget and to counter the construction complexities associated with touching the quarry walls, H+H developed an object building suspended within the basin, that ‘touches the ground lightly’ to heighten the spatial drama and tension between an isolated pure form and the static noise of the exposed rock face. The new home will be constructed of in-situ concrete for the first floor cantilever slab.
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DESIGN Bespoke villas
Silver House Gower Peninsula, South Wales Architect: Hyde+Hyde, www.hydearchitects.com About: The material language of the ground floor responds to the medieval tradition of dry stone walling found in the area. Portal windows to the ground floor bedrooms cantilever over a reflecting pool that gathers rainwater from the roofs above. Living spaces are found at first floor resting on exposed timber beams which themselves learn from the tectonic construction of agricultural buildings nearby. The main monopitch roof responds to the relentless wind and rain which blows from the open ocean over a timeless landscape.
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Résidence des Grandes Jardins Petite-Rivière-St-François, Quebec, Canada
32
Architect: Bourgeois/ Lechasseur Architectes, www.bourgeoislechasseur.com About: Sitting on the mountainside overlooking the St. Lawrence River, this home is well anchored in the rock, but the volume of white wood seems to lift from the ground as the lower level is set off by a series of large cement pilings. A wooden walkway connects the home to the parking area and gives an even more aerial look to the structure. This home is inspired by contemporary Scandinavian villas and makes a proud statement in the Quebec landscape. Photos by Alexandre Guilbeault
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ROYAL LONDON HOUSE Experienced developers with strong track record Hotels, Care homes and Serviced Offices Established and Growing Asset Class Major Management Partner (CRM Students) Returns of up to 9% per year All returns paid quarterly ‘Exit Strategy’ Bonus of 20% Protected Client Accounts
Here are some key reasons for investing in purpose built student accommodation:
OPPORTUNITIES
BUYERS
DEMAND
Purpose built student property is a relatively new and expanding asset class, with a wide range of retail investment opportunities available. Total annual returns were 7.8% (as of September 2013), outperforming both residential buy-to-let and commercial property.
Buyers include pension funds and private investors, who have been attracted by positive rental growth every year throughout the economic downturn. Investment from institutions, funds and private investors increased by over 200% during 2012 to £2.7b.
The sector is driven by an ever growing demand for high quality, purpose built accommodation, designed and managed with students needs in mind. Student management companies regularly report 99% occupancy.
STUDENT NUMBERS
A POPULAR CHOICE
INTERNATIONAL STUDENTS
Despite the recent rise in tuition fees, demand for university places continues to outstrip supply. Applications could drop by over 20% before it would have a significant impact on student numbers.
The UK is the second most popular choice for international students and has five of the world’s top 20 universities. International student numbers are predicted to reach 8million by the year 2025.
International students expect a high standard of accommodation, want to feel safe and secure and be close to good transport links. They are often willing to pay a premium for high quality accommodation.
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BUSINESS Leaseback
Lessons in leaseback One of France’s leading holiday home operators is seeking investors from Asia, Russia and Europe
Pierre & Vacances take advantage of France’s high tourist desirability
I
n the late-1960s, as increasingly large numbers of tourists began visiting France, the Government realised there was a need to provide more resort property. So they offered an incentive to investors by refunding the VAT on the purchase price of newly-built properties developed to let. Since then, buy-tolet investment has become highly popular in France. The scheme works by the client purchasing a freehold property and becoming the legal owner, but the property is then leased back to a management company. The owner is then guaranteed a rental income throughout the period of the lease. The net return to the owner varies between developments but is typically between 3.5% and 5%.
What do clients get with a leaseback property?
There are many advantages for clients: tax breaks, a worry-free structure, personal usage... quality maintenance. During that time they are getting potential capital appreciation and, of course, personal usage in a beautiful part of France. In the UK, Belgium, Netherlands and Germany, Center Parcs has become a middle-class staple, a brand instantly recognized as
Contact Adrien Franc on +33 (0) 671 83 26 48 or adrien.franc@fr.groupepvcp.com. www.pierreetvacances-immobilier.com
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A freehold, fully-furnished property A residence offering different services, such as reception, cleaning, restaurants, swimming pool and spa A property leased to management/ tourist company for a nine- to 11year period, with automatic renewal Index-linked returns, net of running charges, guaranteed annually with options for personal usage
There are many advantages for clients in the leaseback system. First off, not paying the usual 20% VAT on a new-build property (under certain conditions). Second, they get a guaranteed 10 years of rental income, with taxes limited on French rental property, in a worry-free management structure that includes
a quality holiday experience for people with money and families. They feature high-quality chalet accommodation within a rural setting with energetic, upmarket activities for all the families and especially children. P&V-Center Parcs Group is the French part of the business, operating in Normandy, Brittany, the French Alps, French Riviera and around Paris. All those regions have a very high tourism potential: close to other European countries, next to the sea or up in the mountains. According to Adrien Franc International Sales Manager: “When investing in property, choosing the best location is what makes an investment successful and Pierre & VacancesCenter Parcs Group has been a leader in the tourist market because it ensures profitability of its resort thanks to the quality of its locations.” France being such a popular holiday spot for northern Europeans, Pierre & Vacances has many buyers from those countries as well as French buyers. Now they are branching out looking for Asian and Russian investors too, via partners in those regions. Adrien Franc stresses the tax advantages too, in a country notorious for high taxes: “One of the reasons for our success is that you can invest in France without having any income tax to pay under the terms of LMNP (Furnished Rental for Non Professional)” The company offers sales support and full marketing collateral. It also has an efficient re-sale network in place where investors may sell their properties either during or after the lease period.
35
FEATURE Inspection Trips
Words | Tom Beresford
The Art of the Inspection Trip
The inspection trip is back. It is time for a new generation of agents to learn the secrets of this powerful sales tool
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othing typified the boom years more than the specially chartered flights arriving at Spain’s Murcia Airport every week to disgorge a fresh load of passengers into the placard waving hands of the property sales reps. They were tempted by ads for €49 inspection trips in the downmarket tabloids of northern Europe. When times got tough, some agents manfully carried on with inspection trips, hoping that if they could just show the customers how cheap those Spanish or Bulgarian properties were, they might make a sale. But
as companies went to the wall and the media became obsessed by the broken-dreams-in-the-
As companies went to the wall, inspection trips got a very bad press, often unfairly sun story, inspection trips got a very bad press, often unfairly. Inspection trips can be expensive
in time and money. With one rep focusing for three or four days on just one couple, you can hardly blame them for a bit of hard sell. So for the new generation of agents, what are the tricks of the trade?
Pre-select Most agents have come across the out and out shyster – the lowlifes who shamelessly take this as a cheap holiday and refuse to see a property. The good news is that such people are rare. The bad news is that they aren’t your worst nightmare. Worse are the people
MAY 2014
that are prequalified by us.” The other benefit of the presales process is to drill down into what a customer really wants. Some telephone agents record conversations to feed back to the local staff abroad. Any titbit on a customer’s interests, tastes and
To avoid ‘maybe one day’ people, a rigorous but subtle pre-booking call is essential preferences can help steer the trip in the right direction. Taylor Wimpey charge £149 for their trips (£169 for couples), including all flights, accommodation and transfers, and guarantee no hard sell or pressure. Most companies charge
a £99 fee, excluding flights, which for a four-day trip in a 4-star hotel is excellent value, yet even this small charge will often weed out the time-wasters. Ensuring that clients have sufficient paperwork ready to complete a deposit payment is also an effective weeding mechanism, as is asking them to have their own lawyer ready to approve any initial contracts.
Softly, softly It would be nice to say that you can’t bully a client into buying a property. But of course you can, and many estate agents and developers made a good fortune doing so. But it is hardly a sustainable strategy at the start of the business cycle, when wordof-mouth and repeat business is all-important and with online forums ready to swap horror stories of pushy agents. Agents should remember the fable about
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who sort-of, maybe-one-day want to buy, but not just yet. The ones who agree a price, but when asked to sign, casually mention that they need to put their house on the market first. To avoid this, a rigorous, but subtle pre-booking telephone call is essential. Are they ready to buy? Do they know the area? Have they considered x, are they comfortable with y? Taylor Wimpey España offer ‘lifestyle visits’, their spokesman told OPP: ”We have a strict plan of a two-day, one-night visit to a particular area to see one or two developments only. This materialises after quite a bit of qualification and narrowing down of options. “When we are quite satisfied that the client has done their homework and they are at least in a position to proceed, we will offer these subsidised visits. But we do not openly offer such trips to all and sundry, only to those clients
37
FEATURE Inspection Trips wind and sun each competing to remove a man’s coat. The stronger the wind, the tighter the man wrapped himself in his coat. Then the sun came out and he happily took off his own coat. First you sell yourself, then the company, then the area, then the property. Sales staff should be
Good agent
chosen for personality as much as selling ability, remembering the power of the ‘halo effect’ – if a client likes you they cannot help but lower their defences. Don’t worry, there are tricks to use further down the line to make the sale, but the first evening and day of a trip are all about being their friend – “look at me, I’m the kind of lovely guy/girl who you’ll be spending your lives with if you buy this house.”
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Don’t mention the property
38
“In 2007 Amanda Lamb managed to upset A Place in the Sun magazine’s clients – not for the first time – by writing in her column that inspection trips were a waste of time and money”, says former APITS staffer and now OPP Editor Christopher Nye. “But what is A Place in the Sun, they said, if not an inspection trip with a camera crew? Fair point, said the editor, and sent me undercover, posing as a punter, to take an inspection trip and get the real story. It was so great that I nearly bought a property. My hosts, Dream Coast Homes in the Costa Blanca, were sensational. It was text book. No hard sell, plenty of time to myself, yet being showed the bits of Spain I might be expected to appreciate, including lunch at the golf course. I was introduced to the lifestyle as if by an old friend, which the organiser Steve Bailey felt like by the end of my trip there. I almost wanted the hard sell – come on Steve, let’s get it over with, twist my arm! But no. I had to keep reminding myself that I was a reporter, not a buyer. And even now, seven years later, if I do buy a place abroad, I will buy it off Steve and Dream Coast Homes.”
But hey, let’s not talk about houses yet! Plenty of time for that later, let’s just enjoy ourselves for now. Some agents would see how long they could go without mentioning property, just to prove how utterly selfless they are. Delay the big moment for as long as possible. Make the customer beg to see some property. The traditional inspection trip would last for four days. The first evening is about being nice, welcoming them with a winning smile, a clean car. The first full day starts at 9am to discourage indolence, see hot countries at their freshest and get that new-day, newlife vibe. The rest of the day is a carefully choreographed tour of the best bits of the area. Only on the evening of day one do you mention property. Of course not everyone need opt for this approach, but the subtlety of companies’ approaches can vary according to whether clients are seeking lifestyle or investment. One long-gone company used to broach the subject initially by its staff casually dropping into the conversation, untruthfully, that their sister/mum/cousin/best friend had bought on the development.
Bad agent
“For MRI it was all about the numbers”, says an exMacAnthony agent who would rather remain anonymous. “When I worked for them in Spain it was fine, but in Bulgaria it was all about the numbers, playing on people’s greed. Don’t buy one apartment: use the first to pay the rent on the next, and the next and the next. One agent sold six, but few of us got properly paid in the end despite being owed tens of thousands. It was hard sell from the airport. If the couples bought early, then you had time to work on them for extra money from the so-called independent lawyer. We never allowed people out of our sight. If they insisted on going for a walk on their own, we followed them, even into other agents’ shops! Tricks included co-ordinating all the different cars with couples in to arrive at the site simultaneously, then we would receive texts (from our managers) saying that all but one unit had just been sold. It was all to build hype and get that €3,000 holding deposit. It was very ruthless. I left after a year but still work in Bulgaria – a wonderful place – for a good company.”
Houses Day two is property time. The first rule is never show anything above the budget. It not only makes your on-budget viewings look poor in comparison, but customers are far more likely to cancel a deal when they get home, if they have paid a holding deposit beyond their budget. Between viewings, focus on the benefits of life in the location. For
potential relocators and retirees, that often means relentlessly knocking the clients’ home countries – the dismal dark of Scandinavian winters, the drizzle of London – compared to the wonders of life in the sun.
Three’s a crowd Again debatable and depending on your product and the
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FEATURE Inspection Trips sophistication of your client, but in the hard sell version, you don’t give your clients a chance to escape or compare notes with other agents. Dropping them off at the hotel post-viewing trip at 6pm, and ready for dinner by 7pm, doesn’t leave much space for chatting in the hotel bar (bars which, incidentally, your rival agents could well be staked out in). For investment buyers, a high energy trip can also foster an attitude of dynamism and can-doism. For lifestyle buyers, where allowing them to feel relaxed is important, agents may just have to take the risk and leave customers alone. The art of the inspection trip is to work out what works for clients. That also means
don’t want to buy, it’s time to look hurt, maybe slightly cross. The presenter will say, bluntly, “We have shown you what you asked us to show you, at the right price. We have worked hard for you, what do you mean you don’t want to buy?” Agents are entitled to feel a little hurt and disappointed. A little pout would
not go amiss here. Let them know – without burning any bridges – that you really hope they weren’t timewasters all along. If this doesn’t work, don’t give up, even as you wave them off at the departure gate. You have sown a seed, they are indebted to you, and most people who want to buy abroad will be back.
T H E C H I N E S E WAY
For investment buyers, a high energy trip can foster an attitude of dynamism working out which member of the couple to target; who is the real power in the relationship.
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The kill
40
You’ve played it cool. You’ve shown them what they wanted to see. You have been in breakfast strategy meetings with your manager since the crack of dawn, then spent all day with the clients and then all evening, for two long days. You might not even be paid if they don’t buy. It’s time to sell. To see how to do this effectively, the UK television show Location, Location, Location may be about finding domestic property, but it gives the inspection trip playbook. The presenters have made the clients their friends. They have made constant references to how their lives will be improved in this property. They are assertive (and posh) enough to ensure the clients know that the presenters know best. If the couple still
“Chinese buyers often like to see and ‘feel’ a property before buying,” says OPP China’s Commercial Director Sophia Liu, who used to run trips to London. “Even if they have already paid a holding deposit, we Chinese tend see it as important to go and visit the site, especially of course for lifestyle purchases. “Inspection trips may also be leveraged, as one head of household travels for several others. If one buys then they all may buy. Conversely, if the leader of the group is not happy, then the rest won’t be. But such trips should not generally be about hard selling. The Chinese buyers will have come a long way, at an expense of around £1,500 per person, and many will want the full package – that means a 7-10 day tour including sightseeing and shopping. In London my clients would want to see London, Cambridge, maybe go round The London Eye. But most importantly is of course the property’s location. Don’t forget, few will speak English, so brochures, guides and literature has to be in Chinese. “Visas are another issue – the British are losing out to other nations due to their visa rules, so agents from the UK should help Chinese clients to get visas, and if I were a US or Australian agent I would be working out how to gain any advantages like this.”
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BUSINESS Mortgages
Mortgages liberated Is flexibility coming back to overseas mortgages? Is the dream of homeownership becoming easier to reach?
SIMON CONN: e: simon@simonconn.com t: +44 (0)7739 033266
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T
42
he mortgage market is definitely ‘loosening up’, both overseas and in the UK, but lenders have become more cautious about who they lend to. Potential overseas purchasers have a better chance of getting a mortgage now in comparison to two or three years ago, but the market is still not as favourable as it was over five years ago. Countries such as Portugal, Spain and Italy, have reduced the maximum loan to value amount from around 80% to 60%-70% and the countries that are still suffering economically, mainly Greece and Cyprus, are currently not lending at all. The markets in France and the USA are still favourable as the retail side, in both countries, were not affected as badly by the failing economy as others. Other countries have got tougher and raised their interest rates and the underwriting process on mortgages has become stricter than ever. With the introduction of “stress testing”, lenders now want to know everything about the applicant before they approve a mortgage.
The process of stress testing is happening in the UK and all over Europe, particularly in those countries which suffered heavily during the recent economic crisis. In countries such as Italy, Spain and Ireland, lenders can even allow up to 3% more than the current rate when
Lenders now want to know everything about the applicant before approving a mortgage assessing the potential mortgage. This can have both a positive and negative impact on the individual applying for the mortgage. It is good in the sense that it ensures the client does not overstretch, but it could restrict the amount they can borrow and even result in them being turned down completely. The UK buy-to-let market has become an attractive potential investment opportunity, in
comparison to the low saving rates currently offered by banks and interest in the market has increased in the last year. It is becoming harder to get on the residential property ladder and therefore, the demand for rental properties has risen from overseas investors who want to purchase or even re-finance an existing buy-to-let or commercial investment in the UK. In response to the “stress testing”, agents and developers need to become more realistic and advise clients ideally to get a mortgage “agreed in principle” before they view and decide on any property. If the applicant is pre-qualified for a mortgage it will inevitably save time in the long run and also help speed up the overall buying process. For example, if a client was purchasing in France, a seller would prefer to deal with a person paying in cash, or who has a mortgage agreed, so that the sale can be completed quickly. Once a client has paid their deposit and signed a Sales Contract in France they must commit to a completion date, which if not met due to delays (for example, in getting a mortgage agreed), could either result in the buyer losing their deposit or having to re-negotiate the completion date at a potentially high cost.
MORTGAGES Portugal
Mortgages in Portugal Can a foreigner obtain a mortgage in Portugal? What types of mortgage are available? Type of mortgage
Available
Interest rates from
Max LTV
Lending
Maximum Term (Years)
Max Age at Repayment
Repayment
Yes
4.75%
80 %
From €50,000
25 years
75
Fixed Interest
Yes
6.71 %
80 %
From €50,000
25 years
75
Variable Interest
Yes
4.75 %
80 %
From €50,000
25 years
75
Hybrid (part fixed, part variable)
Yes
6.71 %
80 %
From €50,000
25 years
75
Interest only
No
N/A
N/A
N/A
N/A
N/A
Purchase
Yes
4.75 %
80 %
From €50,000
25 years
75
Remortgage
Yes
4.75 %
65 %
From €100,000
25 years
75
Equity Release
No
N/A
N/A
N/A
25 years
N/A
Buy to let (assessed on rental income)
No
N/A
N/A
N/A
N/A
N/A
Self Certified
No
N/A
N/A
N/A
N/A
N/A
What are the lending criteria? This depends on the individual mortgage provider, however typical lender requirements for Portuguese mortgages can be found below: Affordabilty requirements: The cost of the applicant’s existing liabilities and new mortgage should not exceed 33% - 50% of their net income. Employment history: Minimum three months required. Self employed history: Minimum 24 months required. Regions accepted: All regions considered. Property types accepted: Freehold and leasehold properties. Applicants accepted: Individuals and local companies. All nationalties considered except those affected by international sanctions.
Further information Currency options for mortgage payments: euros only. Some lenders will require you to take out a life cover policy or open up a bank account with them in order to make the mortgage payments. Securing a mortgage offer can typically take between three to four weeks.
www.opp-connect.com/ category/data-and-reports
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The OPP monthly mortgage report is brought to you by Connect Overseas, international mortgage advisers. They are based in the UK but deal with mortgages in over 50 different countries around the world. See www.connectoverseas.co.uk. They can be contacted by email at info@connectoverseas.co.uk or by telephone on +44 (0)1708 676134.
This guide was accurate at the time of production.The mortgage market changes all the time. For more industry reports see:
43
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FX REPORT Japanese yen Words | Charles Purdy, Director of Smart Currency
The yen’s ups and downs W
hen it comes to complexity, not many countries can rival Japan. A large and successful industrial base, aging population, huge government debts and two “lost” decades as deflation and bad bank lending put paid to economic growth and sent the stock market into freefall, from which it is yet to show any meaningful and sustained recovery. Despite all the negatives, the Japanese yen has been viewed as a safe haven asset, which means that in times of trouble investors prefer to hold the yen rather than, say, sterling or the US dollar. Confidence in the yen was so high that investors would buy yen by borrowing in another currency and expect to generate a good return because they were confident that the yen would appreciate and be worth significantly more than the amount they had borrowed. A key reason for this yen strength and safe haven status seems to revolve around the might of their industrial base and a whole range of businesses that operate worldwide successfully. And this industrial strength was such that when the
financial crisis hit we saw sterling halve in value against the yen and the US dollar lose nearly a third. Not insignificant but ultimately this ongoing yen appreciation made it very difficult for Japanese businesses to export competitively. Finally enough was enough for the Government. They needed/wanted to see inflation rather than deflation. They needed to see Japanese exports become competitive again by weakening the yen. So they took a leaf out of the US economic playbook and decided on their own programme of quantitative easing, pumping huge amounts of yen into the Japanese economy, and talking down the yen as much as possible. And low and behold we have seen the yen lose ground across the board, weakening by nearly 50%
against sterling and the US dollar in less than a year and deflation turn to inflation. Difficult to know where to next for the yen as Japan’s problems are still significant. The recent weakness is benefitting Japanese exports and therefore the economy but the debt situation is still a problem and the population is still ageing. The key short term driver, though, could well be how the world economy is growing and whether or not this growth has any traction. If it does then the Japanese yen’s shortterm safe haven status will be less important and we could see the yen drift lower. If not then we could see the yen start to appreciate again. Lets hope it’s the former because we will all feel better if the world’s economy starts to grow.
Get your live quote today or discuss your property business and impact of the foreign exchange – call the partnership team at Smart Currency on +44 (0)207 898 0541
JPY per GBP
JPY per EUR
JPY per USD
175
115
135
160
105
120
145
95
105
130
85
90
2010
2011
2012
2013
115
75 2010
2011
2012
2013
2014
2010
2011
2012
2013 2014
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150
45
BUSINESS Social media and shows
Facebook vs face-to-face
Which is the real social media? Meeting people online or selling to them in person?
A
lthough both Facebook and Twitter were started earlier, in 2004 and 2006 respectively, they only came to prominence as the overseas property market was entering crisis mode in 2007-2009. The social historians of the future can argue over whether the two opposing fortunes were in any way related. But as the economies recover and exhibitions begin to fill up again, we asked two experts to put the case for each side.
Clicks and mortar As the internet turns 25, one property PR reflects on how
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the overseas property industry will never be the same again
46
2014 is turning out to be a year of celebration for all things tech. It’s the year that the internet officially celebrated its 25th anniversary, that Facebook celebrated its 10th birthday and that LinkedIn passed their impressive 15 million member mark in the UK. For those of us working in the overseas property world, these milestones have prompted us to pause for a moment and reflect on just how much our industry has changed as a result of the
introduction of the internet and the meteoric rise of social media.
Living online Much of the property industry as a whole lives online these days, from real estate listings to articles, video tours and investment guides. The US-based National Association of Realtors (NAR) revealed recently that 90% of home buyers searched online for their property, while a joint NAR/Google study showed that real estate-related searches on
Charlotte Ashton: abpropertymarketing.co.uk Tel: + 44 845 054 7524 Google had increased by 253% in the past four years. When it comes to social media, the impact is even more dramatic. As a property marketer, I couldn’t possibly manage without being
MAY 2014 virtually plugged in to Twitter, Facebook, LinkedIn and Pinterest almost 24/7 via my iPhone (often much to my friends’ disgust!) and it seems I’m not alone. The eMarketer Worldwide Social Network Users: 2013 Forecast and Comparative Estimates study reported that almost a quarter of the world’s population were expected to use social networks during 2013. Staggering though the figure was – at 1.73 billion individuals it represented an increase of 18% on the 2012 figure – the rate of increase in years to come was even more impressive. The report predicts that the global social network audience will reach 2.55 billion people (an increase of 47%) by 2017.
Social media for property
You can’t beat real relationships and face to face selling, says one successful agent As my train pulled into Birmingham New Street station on my way A Place in the Sun Live last autumn, I asked myself if I should be exhibiting at the show rather than just attending it. We were exhibiting Saloc Spa & Golf Resort, Hungary at the 2013 show. It wasn’t just the cost of a stand and the days away from my desk I had to consider, I wondered whether exhibiting was behind the times. Like me, you are probably bombarded with people telling you that social media and e-commerce isn’t just the future, it’s the now. The message is clear: who needs exhibitions when you can reach thousands of people at the click of a button with a tweet, e-mail or Facebook post? So at this spring’s A Place in the Sun Live, in London, packed with the industry’s leading players as usual, I thought I would ask them why they exhibited and what their tips were for making the shows a success. It came across loud and clear that exhibitions were important for visibility, building your brand and getting to know people, rather than just trying to make instant sales. “The show is an amazing tool to let clients meet you,” said Katerina Charalambous, sales director of Aristo Developers in Cyprus, who has attended A Place in the Sun for many years. “But I would not accept a client’s money if they wanted to buy at the show.”
meeting Nice people Jerry Cobb, CEO of The Fractional Ownership Consultancy confirmed that he exhibits “to keep his brand in
JEAN LIGGETT: propertiesoftheworld.co.uk
Tel: +44 (0) 20 7788 7449
the public eye”. For Jerry, like Katerina, the shows are not about sales. “I don’t shove a product down people’s throat,” he said. “I just try to get them to realise that I am an all right sort of chap!” Jerry also treats exhibitions as a business-to-business event. “We visit other stands and involve ourselves in the social side of the show. It is as important as the time on the stand because developers deal with people they like and trust,” he said. A fruitful exhibition depends as much upon the work you do before and after the show as what you do while you are at it. I spoke to Andrew Brassey, agent network team manager at Knight Knox International after the show. He regularly goes to overseas property exhibitions in the Middle East and Far East. He said Knight Knox e-mails their database in the weeks before the show to arrange appointments. He sits down on the stand with clients he’s made appointments with and chats to them about their requirements. All leads are followed up after the show and everyone he’s
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Such grand figures can seem a little overwhelming, so let’s take a look at some real-life examples of how the property sector has embraced the rise of social media. Fractional ownership company Appassionata allows users to tour its luxury holiday homes and the beautiful surrounding area of Le Marche via its Youtube channel and provides regular updates on life in Italy to its thousands of Twitter followers. Appassionata founder Dawn Cavanagh-Hobbs comments, “With owners from all over the world, social media provides the perfect platform for us to stay connected with everyone at the same time. It also enables prospective owners to get a true taste of the properties without committing to the expense of travelling to Italy.” Overseas property investment experts Property Frontiers agree. Their social media strategy incorporates active campaigns on Twitter, Facebook and Google+, as well as daily updates to the newsfeed and blog on their company website. “Our active social media presence allows us to stand out from the crowd and reach out to new investors,” explains Chief Executive Ray Withers. “It’s a way for us to keep our clients informed about recent developments in the global property industry in real
Selling face to face
47
BUSINESS Social media and shows time. Given how fast the industry moves, I’m not sure how we ever managed in the days before social media!”
Everything’s connected
Building a bright future
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Looking to the future, LinkedIn represents one of the most exciting social media avenues according to leading Spanish homebuilder Taylor Wimpey España. The company’s website and use of social media tools has already proven how swiftly a company can grab a significant slice of the market by reaching out to its target audience in a relevant modern fashion. Sales and Marketing Manager Marc Pritchard comments, “As our company is based in Spain, it is easier to connect with potential buyers through the click of a mouse to give them the information they need in just a few minutes. From Skype conversation and online live chats with our experienced sales team here in Spain, to Youtube videos about the lifestyle in new developments and digital catalogues shared via social media, we are instantly able to connect with buyers. “Between 1 January and 18 March 2014, 36% of our total website visits were from mobile devices, of which iPads and iPhones accounted for 83%. Our data shows that our web visitors through tablet devices has increased an incredible 375% since the start of the year. “Given the news that 15 million people in the UK now use LinkedIn and that the second most popular industry by members is construction, this is a key area of development for our social media presence over the coming months. Successful social networking for the property sector is all about evolution of this kind – if you’re not constantly moving forwards you will very quickly be left behind.”
48
Hot new trends Marc’s comment is spot on. Social media has developed incredibly fast over the past decade and continues to do so. For the property sector, it enables participation with and by a global audience. AB Property Marketing’s own social media
accounts connect with users in numerous countries worldwide, which means I constantly need to be aware of – and talking about – worldwide property developments. As the use of smartphones, tablets and similar devices increases, so will the ways in which the property industry engages with social media. A few years ago, it was sufficient to have a website. Now, companies are missing out on potential clients if they don’t have a site that is both mobile adaptive and that allows one-touch access to its up to date social media accounts. The number of worldwide smartphone users reached one billion in 2012 and eMarketer’s latest predictions are that the figure will total 1.75 billion this year. Meanwhile, developing technologies such as Google Glass are already beginning to impact on the sector, with agents using the device to record tours of properties for online inspection, while mobile augmented reality is also being embraced. Other factors also need to be taken into account in terms of developing trends. The death knell sounded some time ago for the reach of organic brand posts on Facebook, for example, and the latest analysis detailed on Advertising Age shows that the
average reach of organic brand posts not supported by advertising spend has now dropped from 12.1% in October 2013 to 6.2% in February 2014. An effective social media presence certainly isn’t free nowadays.
The benefits laid bare In my experience and that of AB Property Marketing’s clients, the benefits of an active social media strategy are widespread. Using social media wisely ensures a property company can reach greater numbers of new and potential customers, maintain regular contact with existing customers and establish itself as an expert voice within the sector. Embracing the marketing and communication functions of social media can generate distinct competitive advantage, ultimately helping property companies that use it wisely to increase both their influence and their bottom line. Don’t get left behind. To find out more about how AB Property Marketing can help your company develop and implement its social media strategy, contact Managing Director Charlotte Ashton on +44 845 054 7524 or charlotte@ abpropertymarketing.co.uk.
MAY 2014 had an appointment with gets an e-mail the same day he meets them. Paul Rouane of Tenerife Property Sales does the same. “By the time the person has got home, they have an e-mail in their inbox. It impresses them.”
In person, then online The importance of generating trust with potential clients was a common theme. Spanish solicitor Jonathan Eshkeri does this by appearing on panels. I saw him on the ‘Buying Property Overseas’ panel at A Place in the Sun Live. “Being on a panel is an excellent way to gain publicity and build credibility and thus get new business,” said Jonathan. He told me that when he leaves the panel people follow him back to the stand. He can them chat to them personally so that they get to know and trust him. Everything came back to relationships. Almost everyone I spoke to felt that social media and e-mail was great for getting in front of people but the oldfashioned way of making sales by building rapport was still the best.
Jerry Barker, who sells property in Florida, uses e-mail and social media to arrange appointments. But for him, electronic communication is “just a vehicle to make that happen, it does not deliver sales. I prefer to meet all clients personally,” Jerry said. Jerry Cobb agreed. “It is an absolute prerequisite to get what you have in common with buyers,”
Almost everyone I spoke to felt that the old-fashioned way of making sales was best he said. I am amazed how often there is some sort of connection or something we have in common. I have the same approach with business to business contacts.” Neill Warren, sales director of Barrasford and Bird Worldwide, makes appointments with prospective buyers before the
show, and follows up with them right before the show. So by the time they come to the show and are at the stand, “they know why they are here and what they are coming for. They are ready to go.” Barrasford and Bird exhibit because it works. It is a unique opportunity to meet their prospective buyers and keeps them top of mind with UK property buyers. I left A Place in the Sun Live in London reassured that while social media has its place, the heart of sales depends on promoting your brand and meeting people. Exhibitions like A Place in the Sun Live and OPPLive are the perfect way to do this. Expect to see me on an exhibition stand near you soon. And don’t forget to come and say “hello”!
To find out what Properties of the World will be offering at upcoming shows contact Director Jean Liggett on +44 (0) 20 7788 7449 or jean@propertiesoftheworld. co.uk
A Place in the Sun Live at London Olympia
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BUSINESS Training
Great Presentations
Don’t let a slideshow dictate your presentation
W
into creating a presentation based around the slides. The format dictates the presentation when it should be facilitating it. This creates far more problems that it ever solves and will almost always result in a dull, formulaic, informationbased presentation and most of your audience will be thoroughly bored no matter what nice things they say to you afterwards. Good speakers change what people know or what people think.
Good speakers change what people think. Great speakers change how people feel. Great speakers change how people feel (poor or ordinary speakers change nothing other than people’s resolve not to attend another presentation). The secret to great presentations is to change where you start your preparation. Here is your starting point: How do I want the audience to feel at the end of my presentation? That’s a very different place from “Where’s that Powerpoint I did before?” Do you think that Barack
Obama’s speeches during the Presidential campaigns started with a slide deck? No they did not! The speeches he gave during his first run for President were a masterclass in public speaking. I suspect that the content he shared, the information contained was remembered by few, if any, of his audience. But I bet everyone remembered how they felt. Even political opponents could not fail to be impressed by the inspirational nature of his oratory and humbled by the effect he had. Once you know how you want them to feel, then you base the content, the tone, the length and the visual aids around that aim. It’s not about speaking for 20 minutes or 30 minutes, it’s about delivering a message that changes how people feel. PS. One quick piece of structural advice: have only three main points to your whole presentation and make sure those points are repeated at the beginning and end of your presentation. I was training the board of a German company to present their company for sale to investors a short while ago and stripping back their long and complex presentations to three core messages each was the biggest and by the far the most effective change we made in our five days of training. It was transformational.
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ith OPPLive in Asia coming up, I thought it a good time to address a couple of different sales situations that are important for a big exhibition: Presentations and Networking. This issue will deal with presentations and the next one networking. Most business presentations I see get 4 or 5 out of 10, even those given by confident, well-informed presenters. This is crazy. I usually sit there thinking, “What a waste of the opportunity to address this audience?” Being a businessman, I’m also thinking I should offer to help these people present better because I know that a little help would make their presentations twice as good (and earn me a living). Well, you’re getting a little of that help today (at absolutely no cost! Now I’m crazy). The great secret to presentations comes in where you start your preparation. Most people start with a piece of software, an earlier PowerPoint presentation for example. If you want to present something passably coherent and don’t want to spend any time preparing, this is OK. But if you want to move an audience to action, it’s the wrong place to start . There are many reasons why an old presentation is the wrong place to start, but the biggest problem is that it immediately tunes your mind
PAUL OWEN: The Clear Path Company Tel: +44 (0)20 3004 9113
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LEGAL News
The loosens up while the Our UAE round-up of legal changes European Union looks to its finds tax hikes in Spain buttighten speedier hold on mortgage regulation processes in US, France and India BAHRAIN AUSTRALIA REDUCED INVESTMENT REGISTRATION FOREIGN INVESTIGATION CHARGES On 20 May, Bahrain’s Shura Council ratified a motion to reduce charges for the registration of newly acquired real estate. The amendment, bringing the buyer’s fee down from 3% of the property value to 2%, is hoped to stimulate real estate growth. Furthermore, an incentive designed to push buyers to pay An Australian parliamentary quickly was approved – if the committee formally asked payment is was made within 60 days to investigate and report on the buyer will receive a 15% foreign investment. discountreal on estate registration fees. It will take submissions [Source: Oxford Business on Group, the sector up until by Friday 9 www.oxfordbusinessgroup.com] May. House of Representatives Standing BRAZILCommittee on Economics Treasurer Joe Hockey has asked REGISTRATION OF FOREIGN the committee to inquire into and report on foreign investment policy CAPITAL as it applies to residential real estate. Submissions can be made by any interested individual or body and should follow the terms of reference. They can contain facts, opinions, arguments and recommendations for action.
Law, “Foreign capital is considered New Bermuda or to beproposals any goods,inmachinery would allowthat companies owned equipment enters Brazil by foreigners to buy residential with no initial foreign exchange and commercial properties. disbursement, intended for The Companies Amendment 2014 production of goods and Act services, and the Corporate Landholding any funds brought into the Policy were bothintabled this year. country for use economic
francine.carrel@opp-connect.com john.howell@opp-connect.com
More updates are available in our news section at www.opp-connect.com
contracts between seller and buyer, between seller and (DLD). agent Dubai Land Department andThe between buyer and agent. industry has been waiting 18 months for the law to be passed and legal experts gave DUBAI their views on the draft to the “STOP SUSPENDING Land Department last year, reports the National SERVICES” – RERAwebsite. No specific details were available The Estate Regulatory butReal Ms Rashed says it is ready Authority (Rera) has warned and is being examined by developers to stop suspending any higher authorities. The DLD first service to their units, and stipulated announced in October 2011 that fees mustexperts be paidto thatproperty it was employing byexamine landlords rather than tenants. and improve the real “Developers must stop suspending estate investor protection law by orthe disconnecting any public end of the year, but to utilities date services from the property units nothing has been finalized. or[Reported resort toby any waysBishop, that are not Adrian Editor specified in the law to claim any of OPP Connect.] fees,” Rera said in the letter. “Claims for fees must be directed only to the landlord and not to the tenant... FRANCE they must be in line with an invoice CHANGE INbeCAPITAL which should attached to a letter of consent from Rera.”. GAINS TAX President Francois Hollande has NAMIBIA announced a change in the capital PRICE PROCESS gains taxCONTROL system on second home sales to provide more fluidity in the BEING EXAMINED French property market. The taper relief system is to be changed so that from 2014 the required time of ownerships before a property is completely exempt from capital gains tax will be 22 years, down from the 30 year system which was ratified in September 2012. Nicholas Leach, Partner at Athena Advisors, commented, “This could be considered as a bit of a U-turn Thethe Namibian Minister of Trade by government, reverting to and Industry, Calle Schlettwein, a system which is similar to that has told local press he has when Sarkozy was inthat power. Last started looking at procedures to year’s property tax changes put
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BERMUDA FOREIGN-OWNED According to theABLE Foreign Capital COMPANIES TO BUY
The residential properties available activities, provided that they belong for purchase by are to individuals or companies corporate entities those withor anincorporated annual rentalabroad.” domiciled value of $177,000 and above. Foreign capital must be Economic Development Minister registered by means of an Grant Gibbons has warned that Electronic Statement of Registration restrictions limiting the capacity of – Foreign Direct Investment Module companies to buy land will have (RDE-IED), on the Central Bank to be introduced. The proposals are Information System (SISBACEN). also hoped to stimulate turnover For the purposes of the Electronic in the market, as companies have Statement of Registration, foreign struggled with selling on property direct investment is defined as due to legal holdings irregularities. permanent in Brazilian companies or, in accordance with common market practices, longDUBAI term ownership by non-resident STANDARDISED investors; individualsCONTRACTS or corporate entities residing, domiciled or MANDATORY incorporated abroad, through ownership of shares or stock in Brazilian companies, or investments in foreign companies authorized to operate in Brazil. The statement implies that the Brazilian companies receiving the investment and/or the representative of the foreign investor are responsible for the registration. [Reported by: Daniela Standardised property contracts Antunes, Maxwell Alves Solicitors, will be mandatory in Dubai from 1 www.maxwellalves.com] May 2014, with the aim of speeding up and clarifying transactions. DUBAI Unified contracts are being made TANWEER LEGISLATION TO obligatory in the hope of speeding up transactions; clarifying BEproperty ANNOUNCED the roles of buyers, sellers and agents; making harderatfor A new and property lawitaimed agents to operate outside of the improving investors’ rights law. looks set to be announced soon The unified which were in Dubai. Thecontracts, long-awaited first released in 2008 on nonTanweer legislation will abe mandatory basis, will be accessed announced “soon”, says Majida byAlithe government’s Rashed, the headE-Mart of the Real website, where you Management can currently Estate Investment view ThereCentre are three types: andthem. Promotion of the
Lawyers and accountants around the world tell us about new developments in the law. If you know of any interesting changes to the law or taxation in the country where you live or do business, contact
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LEGAL News control escalating house prices. He told the Namibian online that, “We are amending the law relating to real estate. That will include how property developers work, their prices and how they organise themselves,” he explained. The government is also looking to entrench empowerment clauses, he said. Namibia is one of the most expensive real estate markets in the world and prices are rising fast: by 23% year-on-year in the high-end sector and 18% in the middle-priced sector, according to FNB Namibia.
NEW ZEALAND HOPES FOR NEW POINTSBASED VISA
A new, points-based business visa in New Zealand is hoped to lure in more quality businesses. Minister Michael Woodhouse said that he hopes it will attract “talented, well connected people” to do business in the country. The visa awards extra points for those expanding business outside of Auckland. “The inclusion of regional points is designed to encourage new potential investors to settle and grow new businesses across the country, and to share the benefit of the extra jobs these businesses create,” Mr Woodhouse said.
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RUSSIA REAL ESTATE TROUBLE AMID CRIMEA CRISIS
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Wealthy Russians eager for a slice of Crimean real estate have come up against legal buffers, reported the Moscow Times. According to the paper, a surge of interest hit property portals even before the referendum cementing Crimea as a part of the Russian Federation.
However, it is currently impossible to buy or sell properties in Crimea, according to local property professionals, who cannot access their registration database after it was blocked by Kiev. Meanwhile, Ombudsman Boris Titov told Russia 24 that land ownership would be a “big problem” in months to come as many private owners would have to re-register assets. There is also the issue of any new property transactions being unrecognized internationally, the Moscow Times pointed out.
SPAIN WILL TAX REFORMS BRING BECKHAM’S LAW BACK?
Major Spanish tax reforms are being suggested, including bringing back the so-called ‘Beckham Law’, which allows some expats to be taxed at just 24.75% – under half the 56% rate of high-earners. A scheme to attract wealthy foreign investors, artists and athletes is also among major tax reforms being proposed by a committee chosen by the Spanish Inland Revenue Ministry. The term ‘Beckham’s Law’ was coined after it was alleged that the expat tax changes, originally passed in 2005, modified in 2010 and expired in 2012, were introduced to attract UK footballer David Beckham to the country. Reported by Adrian Bishop, OPP Connect Editor
SPAIN SPANISH REITS CHANGE FOR THE BETTER
At the end of 2009 the Spanish REITs (SOCIMIs) were introduced – but as late as 31 December 2012 no SOCIMI had been registered. The failure was mainly due to the facts that the property market was no longer attractive in Spain and that the corporate tax rate on SOCMIs was 19% as opposed to the 0% rate of countries such as the UK and France. However, now that the market is recovering, new SOCIMIs have a corporate rate of 0% and they can ask for their shares to be included in the Spanish shares alternative market, or the market of any other EU member states, which will definitely make them more attractive to investors. Reported by Cesar Garzon, Spanish Law Consultants
UK “NEUTRAL” BUDGET DISAPPOINTS OPPS The UK budget only included one significant change to stamp duty, leaving some property professionals disappointed. Chancellor George Osborne announced, “We are expanding the new tax we introduced to stop people avoiding stamp duty by owning homes through a company. We will expand the tax [of 15%] on residential properties worth over £2 million to those worth more than £500,000.” Many had lobbied for a raise of the stamp duty threshold from its current £250,000 starting point. However, the budget included moves to boost saving and pension income, including allowing more freedom in choosing what to do with their pensions.
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Benefit from Real Estate Markets Our focus and partner program is designed to help people participate in the property real estate markets around the Globe with special focus on the Southern Italian region of Calabria. More than experience in the industry, we value your commitment to operate a successful business, whether you decide to dive in full or part time.
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FEATURE FIABCI’s 65th World Congress Words | John Howell
FIABCI WORLD CONGRESS FIABCI is a strange beast: a combination of club, conscience and corporate development tool. It’s just as relevant now as it was in 1948
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IABCI (the Federation Internationale des Administrateurs de Biens Conseils et Agents Immobiliers) is, as the name suggests, a Frenchbased organisation but completely international in scope. FIABCI is a non-political entity whose objective is “to provide access and opportunity for real estate professionals interested in gaining knowledge, sharing information and conducting international business with each other”. FIABCI helps members acquire knowledge, develop networks and optimise business opportunities all over the world.
It is a federation of 100 national real estate associations organised into Chapters in 48 countries. Both numbers are growing. It also welcomes a growing number of individual members engaged in the field of international property, universities with real estate departments, public sector organisations and others. FIABCI has 3000 regular members around the world and the combined membership of its 100 member associations represents over 1.5 million real estate professionals. Its members represent all real estate professions – brokers,
developers, investors, managers, appraisers, architects, lawyers etc and work in all sectors of real
HISTORICAL NOTE In 1964, recognising the emerging domination of the English language in the world of international real estate, FIABCI was renamed the International Real Estate Federation - but is still known as FIABCI
MAY 2014 estate. Now at an age where most mere mortals are thinking about retirement, FIABCI is not only expanding but also celebrating in style, with a ground breaking 65th Annual World Congress. But there is much more to FIABCI than that.
Progress through Foresight Its roots go back to 1945 when FIABCI’s founding president, Pierre Colleville, set up CNAB (the French
Pierre Colleville saw that international problems on this scale needed international solutions
The Power of Education Another field in which FIABCI has led the way is professional
education. From promoting CIPS in the 1980s to Masters Degrees in the 2000s and online education in the 2010s, they have pioneered both the recognition of the need for specialist education and the ways of providing it. The Federation’s present education program is based upon the idea of partnering professors with practitioners to deliver real world relevance in the classroom. The basic qualification, the international designation of FIREC – FIABCI International Real Estate Consultant – requires 40 hours of classroom training and their Diploma (Dipl. FIABCI) is an internationally focussed add-on to the Master’s Degrees issued by its many participating educational establishments around the world. Online programmes were added in 2013. Through the FIABCI Scholarship Foundation, FIABCI even provides grants and scholarships for certain people studying on real estate programmes. Through their Exchange Committee they also run an exchange programme to allow members to expand their experience by working in other countries. If you are a real estate student and you are looking for the job of your dreams on the other side of
The aftermath of WW2
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National Federation of Property Managers). This was within weeks of the end of WW2. France had been devastated by bombing and shellfire – 432,000 houses destroyed and 890,000 partly destroyed. Never was rebuilding and innovation in the sleepy real estate industry more needed. Yet it was not only France that was suffering; Pierre Colleville realised that international problems on this scale needed international solutions and so, right from the beginning, he dreamt of an international association pooling skill, knowledge and resources across borders. That dream led to the first international congress in 1948 and, shortly afterwards, to the official foundation of FIABCI. Of course, FIABCI was not the only international organisation being formed at this time; 1945 saw the birth of the United Nations. The UN recognises, more and more, the importance of property rights to global peace and prosperity and FIABCI enjoys ‘Special Consultative Status’ at the United Nations. What does this mean? FIABCI’s role is to contribute the view of the private real estate sector to the UN discussions. Of late, this has been the case with regard to the topics of sustainability of both
real estate markets and real estate development and in relation to social housing issues. Does collaboration with the UN produce results? Patricia Delaney, FIABCI’s Secretary General told OPP: “FIABCI, representing the private sector, collaborates with the UN ECOSOC on a number of topics related to real estate. For example, through the organization of combined events, FIABCI facilitates discussion and collaboration between the private and public sector. Recent FIABCI-organised events on promotion of the UN principles of Sustainable Real Estate Markets have been successful in opening debate and contributing to changes in legislation and public policy. This has also been the case in topics related to social housing. “FIABCI is currently working on the promotion of a criteria for Sustainable Cities Development assessment with a view to having real estate markets take a leading role in Global Sustainable Development efforts.” No sooner had FIABCI recognised the potential of working with political organisations than a new – and, arguably, greater – opportunity presented itself. In 1957, the Treaty of Rome created the European Economic Community. In 1959 FIABCI again seized the opportunity and opened a permanent office to the EEC. It has been active in Brussels ever since. FIABCI’s thought process about such political involvement is clear: “It is essential that people from the property sector are represented in these deliberations and contribute their experience and knowledge. Globalization has finally reached the property business and it is becoming increasingly necessary to adopt international regulations and common codes of ethics. “These regulations and rules need to be drawn up with the participation of specialists in the field and not just technocrats. “FIABCI is making sure that this is the case.”
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FEATURE FIABCI’s 65th World Congress the world or you are a young real estate professional looking to gain experience in a specific field or to improve your languages and learn more about different cultures, this could be for you. Placements last for one to six weeks but often lead to long term relationships. Which takes us to their World Congress…
Network. Learn. Enjoy. The FIABCI World Congresses are, for many members, the centre point of FIABCI’s education programme. The 65th FIABCI World Congress – described by FIABCI as “the most dynamic and influential Real Estate Event” – takes place in Luxembourg from 17-22 May 2014. The title of the conference –
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“Building Humanity” echoes the theme of balancing the needs of cities and rural areas, rich and poor
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“Building Humanity” echoes a theme that is becoming more and more important in the world of international real estate: the balancing of the needs of cities and rural areas, rich and poor. Sessions such as “The Mission of Architects”, “Buildings like Trees, Cities like Forests” and “Building Innovative Cities” look promising but, in truth, as much of the main “public” programme focuses on other contemporary – and important – real estate challenges such as “Dealing with Regulations & Transparency Policies”, “Changing the Landscape of Real Estate Marketing” and “Executive Women in Real Estate”. Of course, the event is as much about conviviality and networking as it is about formal training and, if past congresses are anything to go by, it will succeed in spades. After all, they must be doing something right. One member is attending his 50th congress!
PROGRAMME
HIGHLIGHTS Leading the way to the Third Industrial Revolution World Economic Outlook Structures for Real Estate Investment Worldwide Women in Real Estate Directive sur les marchés publics Forum – World Council of Brokers Corporate and tax efficient structuring to leverage your real estate marketing offering Sustainability and marketing – the new demands of an evolving concept BREEAM : More than a Green word Current international real estate marketing strategies How can an innovative public transport e-mobility concept contribute to a carbon free city? The mission of architects Debate: World Council of Managers Democratization of data: unlocking the value of industry Buildings like Trees, Cities like Forests – the First Cradle to Cradle Country BIM strategy in practice BIM in Luxembourg : case study and discussion Introduction to the Luxembourg professional real estate market. Reasons to invest in this exciting European market. Using Sustainability to Reduce Financial Risk and Enhance Returns – experience from around the world Forum – World Council of Experts Luxembourg, the hub for real estate investment structures Luxembourg’s response to real estate trends Luxembourg : Leading European domicile for Real Estate Investment Funds Luxembourg, AIFMD ready for your real estate structures Negotiation of Luxembourg real estate deals: tricks, traps and legal points of attention. Real estate practice in the Benelux : overview of the financial, tax and other aspects of a real estate transaction Forum – World Council of Developers: Global Compact Cities (60’) Green certification: Building Humanity! Project management in construction projects: an added value Reflexion on the concept of fortress (from physical to virtual) and how to handle the unique topography of Luxembourg City Smart design by an integrated and integral approach City Panorama Forum – International Professional Standards Panels Startup demos
For more information about FIABCI, how to join and the World Congress see www.fiabci.org
COUNTRY REPORT USA
United States of America The land of opportunity comes bouncing back.
L
and of the free, home of the brave, Uncle Sam, ‘mei guo’, Great Satan... whatever you call the USA, the health of its economy and property market affects real estate markets around the world. It has the world’s biggest economy and the most millionaires, many of the world’s most expensive houses. It also crashes fairly spectacularly, as in 2007 when the financial world woke up to the fact that it had lent some $2trillion to people who could never pay it back. Following bank collapses, bailouts and the credit crunch, American home prices,
which had risen by 200% from 1994 to 2006, plummeted across the country, and by as much as 50% in
After a difficult few years following the crash, the US real estate market is definitely on the up some regions. But it also has the highest rate of immigration, with more than
a million (legal) new arrivals each year, some 400,000 from the Americas and a similar number from Asia. And the US has the world’s highest tourism receipts. With such high demand for primary and second homes, even in a recovering economy there were just under a million new home starts last year. Prices are climbing, sales increasing (including to international buyers) and foreclosures decreasing. America is also a pleasure to do business with, in a safe and tightly regulated market, where brokers are required to be licensed.
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GEOGRAPHY
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Area: 9,640,011km2 Similar to: Canada, China Coastline: 19,924 km Highest point: Mount McKinley (Denali) 6,194 m Capital: Washington, D.C. (pop: 646,000 and growing quickly. New York has 8.4 million, L.A. 4 million) Climate: Varies dramatically. The ‘sunbelt’ runs along the southern third from mid-California to the Carolinas. Above that, winters are very cold and snowy, the summers often hot. Extremes of weather are the norm. Looks like: Too varied to generalise, but new visitiors often comment on the size and wildness of America’s countryside, where mountain lions, alligators and bears may roam just a few miles from cities.
MAY 2014
THE ECONOMY GDP: $16.72 trillion Inflation: 1.5% Based on: Natural resources, manufacturing, finance Public debt: 71.8% of GDP Tax: 17% of GDP EXCHANGE RATES:
Corruptions Perceptions Index: 19 out of 177 countries
GB£1
US$1.64
Human Development Index:
EU€1
US$1.37
3 out of 185 countries
AU$1
US$0.91
CA$
US$0.89
US$1
INR60.69
Ease of Doing Business Index:
US$1
CNY6.19
4 out of 189 countries
PEOPLE
Population: 318,900,000 Population density: 34.06 per square km Language: English 82.1%, Spanish 10.7%, Other 7.2% (The US has no official language, but English has official status in 28 of 50 states). Ages: 0-14 : 19.4%; 65 and over: 13.9% Average age: 37.6 Life expectancy: 79.56
Ethnic demographics: white 79.96%, black 12.85%, Asian 4.43%, Amerindian and Alaska native 0.97%, native Hawaiian and other Pacific islander 0.18%, two or more races 1.61% Politics: The US is a federal constitutional republic, led by the President. Two parties dominate: the Republicans and the Democrats, the former of which is considered more right-wing (though both could be considered right of centre).
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Religion: Protestant 51.3%, Roman Catholic 23.9%, Mormon 1.7%, other Christian 1.6%, Jewish 1.7%, Buddhist 0.7%, Muslim 0.6%, other or unspecified 2.5%, unaffiliated 12.1%, none 4% (2007 est.)
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COUNTRY REPORT USA
TOURISM TOP 10 INTERNATIONAL VISITORS TO THE US
TOP 10 INTERNATIONAL VISITORS TO THE US
Rank
Country
2012 arrivals (millions)
% change from 2011
Rank
Country
2012 arrivals (millions)
% change from 2011
1
Canada
22.70
+6
6
Brazil
1.79
+19
2
Mexico
14.51
+8
7
China
1.47
+35
3
UK
3.76
-2
8
France
1.46
-3
4
Japan
3.7
+14
9
South Korea
1.25
+9
5
Germany
1.88
+3
10
Australia
1.12
+8
Tourism only accounts for 2.8% of the country’s GDP but in visitor volume it comes second only to France, and it pips even them in terms of traveler spending, at $865bn. The diversity of the United States is a big draw for visitors. These are not just beach holidays or skiers, but cover everything from New York shopping breaks to Las Vegas gambling, horse-riding in Wyoming to road trips on Route 66. Visitors go to every corner of the country and many of these have opportunities for property investment, such as that investment staple, the villa 15 minutes from the gates of DisneyWorld. One noticeable trend in recent years has been the huge increase in Chinese tourists since visa restrictions were eased. Numbers are forecast to triple by 2020, according to brokerage CLSE.
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MOST VISITED TOURIST ATTRACTIONS IN THE US
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Attraction
Annual visitors
Times Square, NY
37.6m
Las Vegas Strip
30m
National Mall and Memorial Parks, Washington DC
25m
Faneuil Hall Marketplace, Boston
20m
Disney World Magic Kingdom, Florida (source: Forbes Traveler)
17.1m
MAY 2014
TRAVEL TIMES APPROXIMATE FLIGHT TIMES TO LOS ANGELES: Vancouver
2.5 hours
Mexico City
4 hours
New York
6 hours
London
10.5 hours
Paris
11 hours
Beijing
12 hours
Rio de Janeiro
12 hours
Auckland
12.5 hours
Hong Kong
14 hours
Sydney
14.5
Delhi
15.5
Dubai
16 hours
Singapore
17 hours
APPROXIMATE FLIGHT TIMES TO ORLANDO: New York
2.5 hours
Mexico City
3 hours
Vancouver
5 hours
Rio de Janeiro
8.5 hours
London
8.5 hours
Paris
9 hours
Dubai
15 hours
Beijing
15 hours
Delhi
17 hours
Hong Kong
16 hours
Auckland
16 hours
Sydney
18 hours
Singapore
20 hours
As a rule, driving or flying are the go-to travel methods within the US. Driving can be time-consuming but a great way to see the country – the US has some superb road systems – and flying can get expensive, though if you hunt around you’ll generally find some good deals. Train services are limited in comparison to Europe but, again, a good way to view the landscape if you’ve got the time. Long-haul bus services are looked down upon by most middleand upper class Americans, but there’s nothing really wrong with them if you want a cheap way to travel between major cities.
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Travel within the US
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COUNTRY REPORT USA
Property Portals Realtor.com Zillow.com Trulia.com homes.yahoo.com realestate.msn.com
redfin.com rent.com homegain.com remax.com
Useful links National Association of Realtors: www.realtor.org American Resort Group Association: www.arda.org American Government: www.usa.gov Plus lots of local data, eg. www.city-data.com, www.neighborhoodscout.com
MLS The MLS Multiple Listings Service is made up of agents in local districts across the United States (and Canada) who agree to cooperate over listing and selling properties. For the last 50 years it has been the primary marketplace for US listings – for both buyers and sellers. Most agents utilize its comprehensive listings, marketing and communication tools. However, with the rise of the internet and appearance of rivals, some agents have become tired of the fees MLS charges and have begun looking elsewhere for cheaper platforms. See OPP Magazine’s Feb 2014 issue, page 9 for a more detailed explanation.
PROPERTY DEVELOPMENTS
Left to right: Zaha Hadid’s block, The Grove at Grand Bay, 181 Fremont Street
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New York Zaha Hadid’s 11-storey apartment block will comprise 37 units of up to 5,500 square feet. The Iraqi-British architect won the commission, which is to be developed by Related Companies, in July last year. The building is designed with multiple elevator cores and private entrances to most of the apartments. Construction fences were spotted going up in January, but so far no more word…
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Miami The Grove at Grand Bay in Coconut Grove, developed by Bjarke Ingels Group (BIG), is a twin-tower project slated for completion in 2015. The two spiraling towers will include a total of 96 apartments, each benefited by the buildings’ wrap-around terraces. Prices range from $3,021,000 - $5,000,000 San Francisco The first office and luxury residential tower in Transbay District, 181 Fremont Street, began construction late last year and is expected to be completed in 2016. The 54-storey tower will include 68 luxury condos in the top 15 floors, while the space below will be filled with office and retail space. The building was designed by Heller Manus Architects and is being developed by Jay Paul Co.
MAY 2014
Market update H
ome prices continued to show solid growth in most of the country due to limited inventory conditions, but rising prices and severe winter weather caused existing-home sales to slip in February, according to the National Association of Realtors. The median existinghome price for all housing types in February was $189,000, which is 9.1% above February 2013. Price gains have translated into an additional $4 trillion of housing wealth recovery over the past three years. First-time buyers accounted for 28% of purchases in February, up from 26% in January, but down from 30% in February 2013. Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and coops, declined 0.4% to a seasonally
adjusted annual rate of 4.6 million in February from 4.62 million in January, and 7.1% below the 4.95 million-unit level in February 2013. Some transactions were delayed due to the bad winter. There should be improvement in the months ahead. With an expected pickup in job creation, home sales should trend up modestly over the year. Cash sales comprised 35% of transactions in February, up from 33% in January and 32% in February 2013. Individual investors, who account for many cash sales, purchased 21% of homes in February, compared with 20% in January. 73% of investors paid cash in February. The median time on market for all homes was 62 days in February, down from 67 days in January and 74 days on market in February 2013. 34% of homes sold
JOHN SEBREE: johns@floridarealtors.org Tel: +1 850-224-1400 in February were on the market for less than a month. International real estate sales activity in Florida accounted for $68.2 billion in 2013. Florida, California, Texas and Arizona are the leading destinations.
Four cities to watch Fort Worth, Texas
Anchorage, Alaska Another seller's market, Anchorage's homes spent an average of just 49 days on the market in 2013 – down 20% from 2012. This fell to 34 days if the home was in the affordable
$250,000-$274,999 price range. Prices are rising at around 7.8% per year. Opportunities can be found in the rental market, which has a tiny vacancy rate of around 3.3%. Rents stand at around $5,000pa for a twobedroom apartment – according to Alaska Financing Corp., Anchorage saw a $47-per-month price increase from 2012 to 2013. The trend is moving towards multifamily rental units as developers look to work around the city's lack of space, caused in part by Alaska's awkward geography.
Tampa, Florida Tampa, once bogged down with foreclosure, is starting to show more potential as new employers like Bristol Myers bolster the local economy. Home prices rose 14.6% in the year to September 2013 and are expected to see gains of another 8% by September 2014. Despite this there are still bargains
to be found, with the median home price sitting at $177,000 – well below the national average of $207,000.
New Orleans, Louisiana New Orleans has come a long way since the devastation of Hurricane Katrina in 2005, but there's still plenty of room for growth in the housing market. Though the recovery has been uneven (some suburban markets, particularly those worst hit by the hurricane, are sluggish), properties in the metro area are in high demand as buyers return to the city. The median home price is an affordable $163,000, predicted to rise by around 8.5% this year. The luxury sector is the one to watch, though, as new builds and redevelopments get snapped up by long-time residents and newcomers alike. The Warehouse District near the French Quarter is proving particularly popular in this respect.
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Texas home prices are still low and demand is still high. Though, traditionally, Texas construction has taken advantage of loose regulation and kept up with demand, smaller developers are finding it difficult to obtain loans. Fort Worth home prices are estimated to be 20% below value with a mean of $168,383, according to Local Market Monitor (Forbes), and forecast to rise by 25% over the next three years. Add that to a fast-growing population (nearly +5% from 2009-2012) and investors should see potential in both capital appreciation and rental returns.
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For more information, call +44 (0)208 545 4910 or e-mail keith@d2e.co.uk Official stand design and production partner for
EVENTS Review
Wish you were there? British and Dutch exhibitions record great interest A Place in the Sun Live
A Place in the Sun Live 28-30 March, London
Second Home International 28-30 March, Utrecht We had a very high quality of visitors at the Utrecht show in the Netherlands, confirming what we hoped, that the Dutch market is on its return. Besides the popular countries of Austria, Germany, Spain, France, Italy, Portugal and Turkey, there was an increase of properties from the Dutch recreational market, some of whom actually built complete chalets inside the hall. Because of the wonderful weather we were a little skeptical about the attendance, but during our conversations it soon became clear that visitors were more serious. The large variety of countries and
If you’ve been to an exhibition and would like to write a review, please email chris.nye@opp-connect.com products made it more special. In addition to our projects in Austria we also launched our new project Villas Winterberg in Germany. This project got a lot of attention and we have already sold the first houses. Both Second Home International shows in Ghent (B) and Utrecht (NL) were quite successful for us. We have collected about 100 leads and the first inspection trips have been taken place for our products in Austria and Germany. The atmosphere and presentation of the fair was really great, an oysterman provided a culinary snack and at the wine bar you could taste wonderful wines from different countries. We look forward to the next edition of Second Home International. Jeroen van der Werff, Director, MyNextHome
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The spring edition of A Place in the Sun Live, held in the London Olympia, was a nice reflection of the increasingly optimistic international property market. The show saw 6,049 visitors, up 16% from last year’s 5,195. Even on the Friday afternoon the show was happily buzzing, with exhibitors busy chatting to potential buyers and to industry contacts. The venue – handily in central London – followed the usual lay-out, a startlingly orange ‘hub’ for the big talks and mini-pavilions branching off it. There were country-specific areas (French Village, Portuguese Pavilion, Florida Pavilion and Italian Pavilion) with accompanying talks enjoying varying audience sizes, but all were within the main hall making it easy to dip in and out. Florida had more stands than usual, partly due to a Lennar-sponsored delegation, who also led a networking event for AIPP members. Yet again, the Spanish stands seemed the busiest. The general consensus was that the visitors meant business: solid leads aplenty and not too many time wasters. Organiser Andy Bridge said, “New buyers are coming to market but activity is mainly driven by those who have wanted to buy over the last few years but were waiting for the ideal moment.” Perhaps due to this, the atmosphere was very business-orientated – not so much focus on food and frivolity as in the old days. An exhibition to learn and to get things done; not the family day out it started out as. Unsurprisingly therefore, Sunday, which was Mother’s Day in the UK, was less busy than Saturday. A notable trend was the increase in high-quality products. Where previously a stand might have showcased distressed units, more and more were opting either for new build or high quality resells. By Francine Carrel
Second Home International
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EVENTS Preview
Where will you be? Real estate events of May and June 2014 Thailand Hotel Investment Conference
DUSIT THANI BANGKOK Thailand Hotel Investment Conference, 20-21 The an IHIF Summit, will focus largely on the MAY opportunities arising from tourism investment, which is expected to get a boost following the Ministry of Tourism and Sport’s master plan – including 28 projects. The conference will cover topics such as debt finance, demand and supply, branding, market forecasts and risk management. The organisers stress they are monitoring the political situation in Bangkok. ihif.questexevents.net
SIMA Madrid 29 MAY 1 JUNE
FERIA DE MADRID, PAVILION 6 The 16th edition of SIMA will be held in front of a more optimistic market than last year, the organisers feel, pointing towards improving economic forecasts and sentiment that the market is finally bottoming out. Visitors will be a mix of buyers and private investors looking to buy in Spain; and a variety of property professionals looking to keep up with current trends and make potentially lucrative contacts. SIMA 2013 saw 150 exhibitors, showing residential and non-residential property, 130 speakers and over 2,500 visitors. www.simaexpo.com
Cityscape Qatar
SHANGHAI EVERBRIGHT CONVENTION & EXHIBITION CENTER
A chance for overseas exhibitors to explore the Chinese market. The fair is aimed at highend Chinese buyers and attracts tens of thousands of visitors each year. It boasts an impressive pre-show promotion programme, with a 300-metre LED screen playing an advert repeatedly for a month. Expect to see a large number of exhibitors specialising in visa programmes and education as well as top level investment products. This year, the show’s sixth, is hoping to draw in 30,000 visitors. www.opifair.com
06-08 JUNE
SMART Investment & International Property Expo, Hong Kong
HONG KONG CONVENTION & EXHIBITION CENTRE 07-08 SMART shows are well known in the Asian markets as being worth a visit. Showcasing JUNE products from around the world – condos, villas, townhouses, resorts, apartments – the exhibition will also include contributions from alternative investment companies. Visitors come from around 40 different countries – most of them highly educated and wealthy. The show includes a free seminar programme, including market updates, country briefings and (if previous years are anything to go by) lively debates. www.smartexpos.com
Africa GRI NAIROBI
Focusing on the largely untapped sub-Saharan region, the Africa GRI 2014 will provide sector analysis, risk assessment, partnerships and joint ventures. The event focus will be on informal group conversations, in which all present will discuss investment and development opportunities in Africa. The event aims to draw in the top players in the region to talk about long-term trends and indicators in sub-Saharan Africa, making plans for successful and sustainable growth. www.globalrealestate.org/Africa2014
18-19 JUNE
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QATAR NATIONAL CONVENTION CENTRE 02-04 Qatar has weathered the downturn better than many economies around the JUNE world. Following the success of their World Cup bid, Qatar has introduced over $100 billion in new projects, many of which are already underway including residential, commercial, retail, and hospitality developments. These will be showcased at the exhibition and discussed in the conference programme. www.cityscapeqatar.com
Overseas Property, Immigration & Investment Fair
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10
The sales team was so desperate for leads that no one saw Neglected Nellie, the social media elephant, in the room.
It pays to tweet
Never forget the power of social media Over 1 billion monthly Facebook users, 500 million Twitter accounts, 225 million Linkedin members and over 6 billion hours of YouTube videos are watched every month. The numbers clearly add up; can you afford not to be engaging in Social Media? Through ABPM’s expert property-specific Social Media services, connect with existing clients and potential buyers; create relationships of trust and loyalty which will ultimately give your business the thumbs up.
So don’t be a Nellie, Call today on +44 845 054 7524 to register for a FREE 1 hour ABPM Social Media consultation
ABPROPERTYMARKETING
charlotte@abpropertymarketing.co.uk 91 – 93 Buckingham Palace Road, London SW1W 0RP www.abpropertymarketing.co.uk
EVENTS Review
Preview: MIPIM UK Looking ahead for potential exhibitors Expected numbers
Stand prices All prices listed are per m² and excluding VAT.
100 stands
Zone A from £480 Zone B from £400 Zone C from £380 Minimum of 9m² required.
1,700m2 exhibition space 3,000+ visitors 20% residential property
Prices vary depending on the number of open sides of the stand. Packages include carpeting and walls, electricity and furniture.
MIPIM UK MIPIM UK will be launched in London on 15-17 October. Organisers Reed MIPIM say it will be the first forum of its kind for professionals looking to close deals across the major sectors in the UK property market. Filippo Rean, MIPIM Director, said, “The United Kingdom is often described as the real estate capital of the world. Global investors and endusers maintain their interest in London and are now looking at opportunities in other major cities and regions. Data produced by FTI Consulting shows that 72% of investors and occupiers anticipate that their interest in the UK market will increase over the next two years. It’s against this backdrop that a dedicated, national real estate event such as MIPIM UK has been conceived.” Despite this vote of confidence, the upcoming show’s atmosphere may be slightly muted as fears of a UK housing bubble are growing. An 18.2% annual rise in London property prices to Q1 2014 heightened concerns and reduced its appeal to international buyers. Though supply in the market is on the upturn, it cannot keep up with demand in the nation’s capital. The MIPIM UK seminar programme will see an appearance from London Mayor Boris Johnson, who was well received at the Cannes show, as a key note speaker. Other seminars include ‘Why are UK houses so attractive to foreign investors and how can this be spread outside of London’; ‘A new bubble: the risks of the recovery’; as well as an impressive looking selection of market trends, technology, legal, panel and Round Table sessions. If you’re looking to advertise your appearance at MIPIM UK, the organisers offer packages including print, onsite and online advertisements from £7,500 up to an eye-watering £25,000. www.mipimuk.co.uk
Boris Johnson’s key note speech at MIPIM in Cannes
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THE OPP INTERVIEW Lennar Homes
The Great American Homebuilder
OPP spoke to Rony Tamayo, a senior director of Lennar International, about what they can offer the international agent
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ennar builds 18,000 American homes per year: one every 30 minutes. Lennar International is the division that focuses on building sales from non-American buyers. Its Director of Business Development and Finance, Rony Tamayo, made a tour of Europe’s property exhibitions this spring, while sponsoring a delegation of Florida agents to A Place in the Sun Live. OPP met Rony between visits to Second Home in the Netherlands and an exhibition in Paris. How important is the overseas market to you? Let me show you (see figure 1) the National Association of Realtors (NAR) profile of international home buying activity. The NAR
have realised that foreign buyers are increasingly important. Total international sales were $68.2bn in the year to March 2013, 6.3% of the total sales in the US.
The NAR realise that foreign buyers are increasingly important, with overseas sales of $68.2bn The NAR divide them into Type A, the international buyer but purchasing from inside the US, while Type B is buying from outside the US. And it breaks down around
50:50. Lennar don’t keep statistics, for now, on which of our foreign buyers is outside the country and which inside. How do you sell to overseas? One of our main distribution channels is via brokers, but we also get people coming directly via our website and we have international sales staff and Lennar Associates. The NAR data shows that there are specialised brokers who sell to foreign buyers and that is who Lennar International is reaching out to. Lennar has a footprint in 18 states, including all the ones where international buyers normally choose – California, Texas, Arizona, Florida, Nevada, Greater New
MAY 2014
Age: 38 From: Quito, Ecuador Lives in: Miami, Florida. “Coming from a Latin background, it feels like home. But other cultures are moving in, Russian, Asian, it’s growing, buzzing, a real melting pot.”
Education: MBA from Thunderbird School of Global Management, Phoenix, Arizona
Rony Tamayo rony.tamayo@lenna r.com tel: +1 305 229 6515
Career: Includes, Banco Popular, Discovery Channel, Diners’ Club, Lennar Corporation.
development and in San Francisco we are going to have a mixed development. It depends on the market. In some markets there is not the space to do what we do best, which is buy the land, develop the land, then build a large community. In some places that doesn’t make sense so we adapt to that market.
York area etc, and international buyers fit the profile for every kind of product we sell, whether lifestyle or investment. So we are well positioned to attend the international buyer’s needs.
Do you just build villas? We build detached single family home communities. There are some exceptions such as in New York area, on the Jersey Shore, in Weehawken, we have a mid-rise
Does the style of property change from state to state? Different states are not so different
Figure 1: Estimated International Sales: $68.2 Bn* Source NAR
INternational sales in billions: Type a, $34.76 INternational sales in billions: type b, $33,42 Non international sales in billions, $1,080.25 *Calculated for the period April 2012 March 2013
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What are the British buying? So for the British, 92% go for the detached home, accoding to the NAR. And what I have heard while over here is that properties are so expensive over here, especially in London, so when they hear that you can get a five bedroom home with swimming pool, for around US$400,000 (£241k), people are very excited by that. And what we have in Orlando is resort communities where it could be up to 8 rooms, and you have various pools and the golf course, restaurants, like in a hotel but also your private space.
Don’t international buyers want a different kind of product in a different place to domestic buyers? Well, we focus on building the traditional American home, for
traditional American lives. Now sometimes that crosses with what an international buyer is looking for: for example, with Orlando resort communities. It goes back to that market, what we do for the domestic buyer is what we do for the international buyer. Our successful projects for international buyers are the same as for local buyers, California, Florida, Texas, Arizona.
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THE OPP INTERVIEW Lennar Homes in home style, but for example California is more expensive than Florida so you will see a different layout in terms of size. But the product is sort of standardised across the board as far as possible. We don’t show international buyers anything different from the domestic buyers. We build as a function of what the market does locally. The process is: we have a parcel of land where we are building a community. And we build show homes. Then potential buyers – domestic or international – come into the community, and visit the show homes, and see the layout and the finishes etc, and then they see a map of the area and the spaces for the houses and they decide if they want a spot on a corner, or looking over the lake, and they agree the price. Then we have a conference and they sign a contract and pay a deposit, then a second deposit later, and between four and eight months later, the buyer gets a closing date. We don’t build on spec. How did you survive the crash? Two reasons. Firstly, the company has a really strong balance sheet. We have always focused
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We are [in Europe] trying to understand the needs of the international markets for US homes
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on liquidity, and having enough resources and capital for what we need, before the crash and especially now. Secondly, we have group of seasoned directors and top level executives, most of whom have been with the company for 20 or 25 years. They’ve been through the cycles before and though the last was the worst, and nobody can say that they were prepared for it, that experience and expertise prepared the company well for when it happened. They knew the tough things they had to do.
The classic American home by Lennar, from California to Florida
As American homebuilders, do you accept any responsibility for the “sub-prime” crisis? I wasn’t with the company then, but speaking personally I think that we in the business knew that things were going too fast. But it wasn’t just about the home builders, it was the banks and the ratings agencies too, and the investors and the pension funds. It was a whole circle that was created and I don’t know who caused the first domino to fall. Why do I sell a home? Because someone asked us to build one and they had a deposit and approval from the bank. So he is a qualified buyer, there is nothing sub-prime about him. And the bank says here is the buyer and here is the product which someone is willing to rent. And they go to Fitch [the ratings agency], who says that if you package all these properties I’m going to give you a Triple A rating because we feel they are low risk. So you keep on moving through the cycle, and now the investors – you and me at the end of the day – are buying these papers because it says they are Triple A, so they should be good. And the circle is complete. But unlike Spain, Florida doesn’t have the empty buildings because they stopped building and they tried to adjust to what the market could sell. For Lennar, we don’t start building until we have a contract with a buyer. What are the risks to the market? That’s a tough question. The market
has been improving, the cycle has just started, and the rules of the game are tougher now. There’s more regulation with mortgages and how they are financed, and that should help prevent the same issues we had six years ago. What sort of commissions? The commission depends on the market. California is land constrained, so the prices are higher. Each area has different commissions and we pay the market rate for that area. California and New York commissions tend to be lower because the prices are higher, so the agents are getting more money anyway. Any agent can come to us, domestic or international, and our broker is very important for us, whether international or domestic, because they know their clients. We incentivise them, as far as the market rate is, no more or less. No more because we know we have a great product, which sells. Will you build abroad? Not at the moment. Why are you doing this tour? We are trying to understand the needs of the various international markets. I was told that there are shows where US properties were being promoted, so I am here to understand how to connect and see where those buyers are, and see where what we already have that fits in with that buyer profile.
NEWS OPP
OPP Update! Overseas Property Professional has had an amazing year, and that’s just the beginning... LOCATION, LOCATION
SHOWS
In April last year, OPP’s London office returned to swish new offices by Little Green, Richmond, right back where we started. Our London staff are happy to be back near the riverside pubs. GLAMOUR AND GLITZ This year we also returned to London’s Natural History Museum for our Gala Dinner and the biggest OPP Awards for Excellence ever. There was a diplodocus, Robbie Williams’ doppelganger, dancers and Brazilians. Don’t forget to enter this year’s awards at opp-connect.com. GOING (EVEN MORE) GLOBAL We opened new OPP offices in Singapore, Beijing, Spain and now Manila in the Philippines. We are using our contacts and local knowledge to build business in Asia while continuing to do what we do best: connecting global property professionals.
KNOWLEDGE MAG REVAMP This magazine was redesigned in 2013 to be bigger, brighter and more readable than ever. John Howell moved up to Editorial Director, while Christopher Nye has joined as Editor, bringing decades of experience and journalistic know-how.
SEPTEMBER 2014 IS OPP MAGAZINE’S 10TH BIRTHDAY
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As always, we welcome your feedback and news. Email chris.nye@opp-connect.com. See past issues of the magazine by signing up to OPP Connect. We go out in a printed format to 4,500 estate agents, developers and fellow professionals and in digital format to 112,000, and check out our app at the Android and iTunes stores.
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CRACKING ON WITH CONNECT OPP-Connect.com had a major revamp under the experienced eye of Adrian Bishop. For overseas property news, it is the only site you ever need: OPP exclusive news, now an official Google news source Breaking news from around the industry In the top 0.1% of websites, beating many household names Original and sourced reports and data Shows and events Jobs The latest OPP magazine, plus archives
OPPLive Asia 2014 OPP Asia 2014 will have just finished when you read this. Our first show in Singapore was a huge success, at the jawdropping Marina Bay Sands.
OPPLive China 2014 The first OPPLive China will take place in the Central World Hotel, Beijing, 23-24 October. We’re expecting the best places to go quickly. Email Naomi.zammit@ opp-connect.com.
OPPLive London OPPLive will be returning to London on 27-28 November 2014 at Novotel London West Hotel & Convention Centre. More information coming soon.
AND THAT’S NOT ALL Through 2014 watch out for: OPP Training OPP Television OPP Connect Platinum OPP Research More supplements and data than ever before
BUSINESS Next month
Coming next month in FEATURE
AROUND THE WORLD
… BUSINESS
DESIGN
Portugal
A Place in the Sun
2. Apartment blocks
Italian export
What happens when a government really gets behind a country’s holiday homes market?
As A Place in the Sun magazine celebrates 10 years of publication, we find out how the world’s foremost overseas property brand has survived
In part 2 of our design series, we check out the world’s best new apartment blocks, and interview the interior designer of London’s Battersea Power Station
We meet the builder of traditional Tuscan villas who suddenly found clients ordering them from all over the world. How does he get past the practical problems?
Turkey Turkey has been a star of the European property market, but is political instability putting its future in doubt?
China As we say goodbye to OPPLive Asia in Singapore we look ahead to OPPLive China. What and where are the Chinese buying today?
EXPERTS ADVISE
BUSINESS
Selling paradise
Networking
As folks (in the northern hemisphere, anyway) start to think about summer holidays, how can holidayhome sellers make their destinations stand out from all those other sun, sea and sand vacation paradises?
If you’re not networking, you’re not working, as the cliché goes. Fine, but how exactly do you network? We learn how to combat shyness and leverage those contacts when you’re back at the office
PLUS ALL YOUR USUAL… • News & comment • Branding ideas • Mortgage report • Currency report • Business and training • Correspondent’s reports • The OPP Interview • Statistics and data • Show previews, reviews • Legal round-up
Recruiting?
Advertise your job for free on OPP Connect www.opp-connect.com
Want to take it a step further?
If you would like a recruitment package tailored to your company’s needs contact: reuben.gurunlian@opp-connect.com | +44 (0)203 540 2224
BUSINESS The life of a ...
…Property Photographer Rob Sharp’s mission is to capture the soul – and value – of North London’s most desirable homes
The ponds and properties of Hampstead, North London
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specialise in north London, especially Hampstead and Highgate, where I also live. I’m freelance, and the estate agents I work for give me the address and property size, so I can work out how long the job will take. A 6-7,000sqft property takes most of a day. I’ll call and discuss with the householder the rooms we will want to photograph and I will advise how they can best prepare before I get there – that’s really just removing clutter. The worst thing to find when I get to a stunning house is to find an old beaten up car in the drive and no-one to move it! Or rooms that are cluttered or scruffy – I am sometimes asked to Photoshop it clean! I sometimes have discussions with owners who feel that by removing, for example, a muchloved rug, I will make their home look ‘cold’. Well, yes, it could – but only to those who are used to seeing the rug every day. Most owners understand. I use very high quality equipment and I try to use natural light whenever possible – flash is often too harsh. I suspect that clients might be disappointed if you turn up without tons of equipment,
but the proof is really in the photographs. I was at a property recently and another agent’s photographer was there for 90 minutes whereas I was there for four hours. With lovely properties you don’t want to be under pressure – you might even have to wait for the sun to move round. For a lunch stop, the delis of Hampstead are always very welcoming. There are certainly new
The worst thing is cluttered or scruffy rooms. I’ve been asked to Photoshop them clean! foreign buyers moving into the areas, often buying pied a terre for their kids at university. I like photographing any kind of property, but the high ceilings and colonnades of Little Venice are a favourite. Older properties give you the chance to pick out beautiful details and capture the soul of home. I don’t want to overdo the
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styling though. If you get into taking images of chillis artfully placed on a chopping board, viewers could start thinking about whether they like chillis or not. So just take a good solid mage of the property, maximise the space and create a nice warm feeling. The idea of getting a professional photographer is to capture the eye of the person in a hurry, flicking through lots of properties on a portal. My most expensive property was £18.5 million, in Highgate. It was nicely refurbished. I’ve seen indoor pool where at the push of a button the floor covers it, and it is amazing how deep people have dug: two or three floors underground. There was one Queen Anne property in Hampstead whch had the River Fleet running underneath it. It had a ballcock and if it got too high a pump would kick into action. I have also photographed some properties in Spain and France – all via contacts. It was once a dream of mine to go and live on the French Riviera and photograph the villas and chateaux. But now I’m not sure that agents there are so interested in using really good photography. Perhaps they would like to prove me wrong!
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