OPP MAGAZINE JULY / AUGUST

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The next evolution of development marketing

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CONTENTS This month

Contents Features 24 Making the most of LinkedIn 28 Architectural trends for resorts 38 Experts advise: London and Paris – where are these cultural hubs heading?

44 The return of the property finder: consultants come back with the market 69 South America buyers’ market guide

Regulars 6 Top ten news stories 9 News analysis – cash buyers in the US 14 The Big Issue: property portal drama 20 What’s up? Development news 33 Tech round up: the latest technology for overseas property professionals 36 Legal news – regulation changes affecting the industry 66 OPP Interview: mega philanthropist Jon Huntsman turns his hand to real estate

Data 50 Country guide: Indonesia 57 FX report: New Zealand dollar 65 Mortgage report: Malta

Business 11 Business briefing

48 New! High concept: the latest and greatest in business ideas?

59 Events preview: where will you be?

78 Diary of a Portuguese lawyer

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23 Paul Owen on securing the first ‘yes!’

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The OPP Team

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Packed with features and the latest real estate news from around the globe. Each issue contains –

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News Analysis: What has been happening in the property world Country Report: The essential facts and figures on a country Letters From: What is happening in the real estate market around the world Legal Round-up: Updates on the legal changes we all need to know about Training: Tips from the experts on finding success in your business FX Report: A country’s currency – past, present and future

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EDITOR’S LETTER

They think it’s all over... ...But it doesn’t have to be! UK politicians ’support’ new construction but show the red card to developers. Why? Editor, OPP Magazine Christopher Nye

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People want to build them; people want to buy them. We even know in what format – new, imaginative, planned ‘garden cities’.

But the houses aren’t being built because of the vociferous lobby against building on ‘greenfield’ sites.

Every development is blocked by politicians at a local level, frightened of being seen to allow moneygrabbing developers to “concrete over the countryside”. My own local

When the dead hand of the politician is removed, don’t things just seem to happen? representative in parliament says he is all in favour of housebuilding, yet vociferously opposes each and every new housing development.

I like most politicians, but my contempt for him is limitless.

Speaking of politicians in low regard, we focus on two cities dominated by politicians in our London v Paris, A Tale of Two Prime Residential Markets on

page 38. President Hollande, it is alleged, has almost singlehandedly wrecked the Paris property market – who says politicians have no power!

If you want proof that you don’t need politicains to get stuff done, read the OPP interview on page with Jon Huntsman, a man who has given away US$1.4 billion and built a huge cancer hospital. To help raise money, and for a bit of fun too, Jon is developing a resort in Idaho that he hopes will attract international buyers and give families a chance to have affordable, outdoorsy fun together. (What might they do there – run around playing football perhaps?).

When the dead hand of the politician is removed, don’t things just seem to happen? Let technology, money, ideas, hopes and, yes, greed, work together and things will sort themselves out. In this issue we look at the battle between portals and agents (p14), at the work of property finders (p42) and at the amazing success of Indonesia (p50), where an election takes place next week. Whoever wins, with all due respect, could politicians just stay out of our way?

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he UK is a fascinating case study in the politics of housing. Everyone agrees there’s a housing crisis caused by expensive housing. Everyone knows what has to happen: build more houses so that prices relative to earnings fall. There is barely a problem in the UK that could not be sorted out by a large increase in supply of new houses. I have even worked out the math(s) for you: more, cheaper family houses = smaller mortgages = parents working less = less family breakdown = happier kids + healthier kids = England win the World Cup. Houses with gardens = greater biodiversity + (people stay at home = less CO2 = less climate change) + happier kids = exercise = England wins the World Cup. More houses = more tax revenue = more expenditure on sport = well you can see where I’m going with that.

If you doubt the science, just look at the empirical evidence: when was the highest rate of housebuilding in the UK? In 1966-70 when England were world champions, we built over 400,000 per annum. Compare that to 143,000 in 2010, when we definitely weren’t champions.

World Cup defeat the fault of lacklustre construction market. Honest.

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GLOBAL NEWS

Top Ten News Stories Pick of the news this month at OPPConnect.com Global: The IMF launched its Global House Price tracker

HOUSE PRICES AROUND THE WORLD

House prices have gone up for most countries.

(2013:Q4 or latest, annual percentage change)

15 10 5 0 -5 -10 India Greece Italy Cyprus Croatia Russia Federation Spain Netherlands Hungary Slovak Republic Portugal Slovenia Norway Czech Republic Japan France Singapore Finland Korea Malta Belgium Lithuania Bulgaria Ukraine Mexico Denmark Canada Iceland Austria South Africa Indonesia Latvia Sweden Poland United Kingdom Thailand Ireland Luxembourg Switzerland Germany Israel Australia United States Turkey Malaysia Brazil Estonia Colombia China New Zealand Hong Kong Philippines

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House Price to Income Ratio

House prices continue to be out of reach of household incomes in many countries.

(2013:Q4 or latest, deviation from historical average, in percent)

House Price to Rent Ratio

House prices are misaligned with rents in many countries.

(2013:Q4 or latest, deviation from historical average, in percent)

-60 -40 -20 0

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-60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60

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Japan Korea Germany Estonia United States Slovak Republic Switzerland Ireland Portugal Finland Greece Italy Denmark Spain Austria Sweden Netherlands Norway United Kingdom France New Zealand Australia Canada Belgium

source: OECD and IMF calculations

Japan Estonia Greece Portugal Germany Slovak Republic Iceland Italy Switzerland United States Korea Netherlands Mexico Israel Ireland Austria Denmark Spain Sweden France United Kingdom Finland Australia Belgium Norway New Zealand Canada

20 40 60 80 100

JULY / AUGUST 2014

Thailand

UK

Malta

Coup no biggie for Thai property, say experts

Chancellor wants changes to prevent bubble

100 golden visa applicants in just 12 weeks

The recent coup has been encouraging Thai nationals to buy abroad, but not denting demand for resorts in the country, say experts. Knight Frank in Thailand told The Nation of its success selling in Singapore, while Mike Bridge from Exact Trading told OPP that while overseas visitors were down in Pattaya, business was still being made.

UK Chancellor George Osborne, at his annual Mansion House speech, announced a number of moves including building more houses and limiting loan-to-value mortgage rates if there is a danger of a housing bubble developing. Meanwhile Mark Carney, the Governor of the Bank of England, has hinted that an interest rate rise may come “sooner than expected”.

Malta’s Individual Investor Programme (IIP) has resulted in more than €100million in foreign direct investment from its 100 applicants so far, according to British-run Henley & Partners, who are running the scheme. Of the 100 applicants with financial commitment, 50 have already received their cash-forcitizenship visas

Australia

Albania

Sweden

Chinese presence dramatically increased

EU announcement to boost property market

House prices still rising after IMF warning

Numbers of property buyers and agents from China are on the rise. The Australian newspaper reported numbers of Chinese agents increasing at least fivefold over the last five years, with Chinese investors spending AU$5.9bn on Australian homes in 2013, while agents report unprecedented demand for existing properties from foreign investors.

The European Union’s announcement that Albania has cleared the first step towards full membership will boost the property market, say experts. Peter Walshe, Marketing Director for Lalzit Bay Resort & Spa, spoke of the “fantastic news”, saying that the announcement would encourage more people to discover the “hidden gem”.

New statistics show Swedish residential prices continuing to rise, after a recent warning from the International Monetary Fund to cool down the market. Figures from Svensk Maklarstisk showed nationwide prices on apartments rising 9% in the year to May 2014, while singlefamily homes saw a 7% price hike in the same period.

Spain

Costa Rica

Dubai

Foreign investment grows as condos prove popular

Top ten mega projects valued at $240bn

More evidence is emerging of growing sales in parts of the Spanish market – with Barcelona leading the way, according to one agent.

Samantha Gore, sales director at uv10.com, told OPP that low Spanish prices have bolstered interest in the Catalan city, including interest in the €500,000 golden visa property scheme.

Spurred on by rising demand in the coastal regions of Guanacaste and Puntarenas, overseas investment in Costa Rican real estate has grown to US$1.16billion in 2013, with condo developments growing in popularity. Data from the Costa Rican Coalitian for Development Initiatives showed total foreign investment growing 15% y-o-y to 2013.

Dubai has ten mega projects currently under construction, together valued at US$240billion. Jumeirah Gardens tops MEED Projects’ list of valuable developments at an estimated $89.5billion, due for completion in 2021.

Next comes massive mixeduse project Dubailand, valued at $61billion and due to be finished by 2020.

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Barcelona “leading the way” in Spanish revival

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NEWS Analysis Words | Adrian Bishop, editor, www.opp-connect.com

Going back to greenbacks Cash is king, the old saying goes, and it seems that’s the case for buyers of property in Florida

A

whopping 64% of all sales in the Sunshine State were cash purchases in the first three months of 2014. Florida leads the way in US cities, according to the latest figures from analyst RealtyTrac.

In fact, in metro areas with a population of at least 500,000, the top five cash sales totals were all in Florida: Cape Coral-Fort Myers (74%), Miami (67%), Sarasota (65%), Palm Bay (64%) and Lakeland (62%).

Other major metro areas with more than half all-cash sales include New York (57%), Columbia, South Carolina, (56%) and Memphis, Tennessee (55%).

The national US average of around 43% is the highest since RealtyTrac started recording the figures in 2011 and is 5% up on the last quarter of 2013 and more than twice the 19% recorded a year ago. However, analysts believe the figures may have peaked and could fall later this year.

Many of the all-cash purchasers

The mortgage process is so cumbersome that buyers get frustrated and pay cash

“We have seen a large number of cash buyers. I don’t think it’s because they want to spend all their cash.

It’s that the mortgage process is so cumbersome at the moment that buyers get frustrated and pay cash.”

Feltrim has agreed that some foreign buyers can pay by cash over time while the new-build developments are being constructed.

“In The Fountains, where we are selling town homes from $300,000, I have seen a number of cash buyers from China; however, I have allowed them to pay in installments. It’s a new-build project, so it will take me six months to deliver the final product and paying cash over the six months has worked well for us.”

Once the minimum lending criteria and down payment are taken into account, most buyers are unable to get a loan of under $150,000, which is one reason why Feltrim has no condo projects. “As a developer, I will not build condos at the moment as there are no loans available to the end-buyers. It’s too risky.”

Among prominent overseas cashbuyers are investors from both North and South America, says Mr Kenny.

“One group of cash buyers are the Canadians and we have seen then

buy up big time in the market.

“Brazilians and South Americans are the same and are currently big buyers of real estate in Florida, but in this instance, I believe they are choosing to pay cash as they are looking to get their funds out of South America and to the more stable US market.”

Figures from the National Association of Realtors (NAR) also show record rates of US cash purchases at 33% from January to March this year, up 31% from 2013.

Lawrence Yun, NAR Chief Economist, said, “What is surprising is how cash continued to remain high even though distressed property sales are declining. Distress sales invited all the cash purchases.”

All-cash deals can benefit buyers and sellers, adds Mr Kenny. “Sellers know that if they accept a deal contingent on a mortgage that the deal could take ages to close, so they may take a lower cash offer.”

For example, when buying a property that costs $150,000, it may take a buyer 90 days to complete a mortgage, so the seller may well accept an offer of $145,000 from a cash buyer that can close immediately, he says.

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are foreign investors. Although overseas buyers are allowed to take out US bank mortgages, they have to put down a 30-40% deposit and many banks require foreign buyers to have $100,000 or more on deposit.

That means that some foreign buyers borrow money from an overseas bank and turn it into dollars, which is counted as an all-cash purchase.

Leading Florida developer and agent, Gary Kenny, who heads the Feltrim Group, tells OPP Magazine,

There are a few reasons for the high rates of all-cash buyers

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BUSINESS Briefing

Business Briefing Ideas and inspiration to help you run your business Stat of the month

BOOK: In Search of Excellence First published in 1982, it was written by two McKinsey consultants Tom Peters and Robert Waterman, as an explanation of how and why some companies thrive.

These are the eight common keys to success that they identify: Get on with it.

Stay close to the customer.

Foster innovation, nurture champions.

Treat employees like they are champions.

Stay hands-on, value-driven management.

Stick with the business you know Maintain minimal HQ staff Centralise values but encourage shop-floor autonomy Sound obvious? Of course they do. But be honest, are you doing them?

6.6 GIGATONS

China has used more cement in the past three years (6.6 gigatons) than the USA did in the entire 20th century (4.5 gigatons).

As tweeted by Bill Gates, but originally from Vaclav Smil: Making the Modern World: Materials and Dematerialization

BRILLIANT BRANDING, powered by D2E In some countries you don’t ask for a coffee, but for “a nescafe” – and that’s as good as branding gets. This month, for the first time in 75 years Nescafé has launched unified global branding in every country. Don’t get too excited, all it means is making the accent on the é red and a bit more jaunty, basing colours strictly on white and red on black, and changing the tagline to “It all starts with a Nescafé” (which is in fact not strictly true).

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Why bother? They say they are seeking a new “younger” audience, in a more “globalised social world”. In practice it means the brand will have a style bible with do’s and don’ts for art workers.

While Nescafé are on safe ground, a one-size-fitsall marketing plan for the whole world is risky.

Just try Googling ‘locum’ under images. Ikea, meanwhile, may regret naming a desk “FARTFULL”. US electronics brand Wang, cares, apparently, though “Wang cares” didn’t play well in the UK. The Honda “Fitta” would not have sold well in Scandinavia, nor Sharwoods “bundh” sauces in the Punjab, where it is the place where most marketers appear to be talking out of.

If you want to talk with a new accent, www.d2e.co.uk, +44 (0)20 8545 4910

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BUSINESS Briefing

MOVERS & SHAKERS Neville Page joins Chestertons as Director of International Business.

Previously he worked as Marketing Director at BDO, Chesterton Humberts and Savills. We asked Neville for some tips on establishing an international sales network: Don’t just focus on the property market. Look at the wider economic situation and prospects for the country or region where the new office is to be established over the next five years.

Look at those cities or resort areas where High Net Worth Individuals are investing and holidaying and ask yourself if there are signs of an emerging luxury enclave there?

Check what the ethical standards of business are in the region – we stay clear of areas known for corruption or unprofessional standards.

We find it beneficial to open a cluster of offices in one region rather than have isolated offices, as it gives greater market presence in that region and is good for cross office referral business.

Look at where you can add value – our international offices appreciate the fact we can extend their marketing reach through our London network of branches where we can promote their properties to a wide international audience. www.chestertons-international.com

Emma Cariaga becomes Residential Development Director for British Land.

This follows seven years managing developments for Land Securities.

Paul Baxter has been appointed Chief Operating Officer for Asia for Colliers International.

Two tech entrepreneur brothers, Suresh and Arun Srinivasan have started work as COO and Chief Technology and Marketing Officer at the US’s RealBiz Media Group, following RealBiz’s acquisition of their company ReachFactor.

Got a new colleague? Changed jobs?

Email chris.nye@opp-connect.com

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SPIT IT OUT: Public Speaking

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What’s your first thought when you’re asked to speak at an industry event?

Is it, “how can I get out of this?” Seminars, conferences and speeches are where business reputations are cemented, and there is a clear link between leadership and confidence in front of an audience. Some people suggest raising your confidence by imagining the audience naked, but they clearly haven’t been working with many estate agents. A better way, is to join Toastmasters International, which is having its first ever global summit outside the US in August in Kuala Lumpur, as it celebrates its 90th year. It has 292,000 members and operates in 122 countries.

How does it work? Toastmasters is made up of 14,350 local clubs. Membership is reasonably cheap, around £100 per year. Most clubs meet every two weeks, and members work through a series of public speaking assignments within the club.

What sort of speech? It doesn’t matter. That’s what makes it so interesting to be a member. There are usually three or four, each of 5-10 minutes, plus lots of impromptu talks. Your first speech is only five minutes and most people talk about themselves. As you do more, you try new topics – maybe your career, about an interest you have, or a tip you want to impart.

Isn’t it embarrassing? Yes. At first. Because most human beings feel a deep, atavistic stress about being looked at, that came from when we were tiger and wolf fodder. That’s why you learn speaking techniques to slowly build confidence.

Everybody speaks at each meeting, if only a 15 second comment in a warm up – where is your favourite holiday destination, for example. When you are ready, you start to work through a book of exercises, focusing on new techniques, such as using props, or powerpoint.

How do I learn? There are no instructors, but the other members all offer tips and advise on what you did well and what can be improved. Gradually you gain confidence.

Toastmasters stresses how useful it is at building leadership quality, but it is also great fun. Find your local group at www.toastmasters.org.

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BIG ISSUE Portals Words | John Howell, editorial director, OPP

Portals: revolution, evolution or war?

For a couple of years there has been an uneasy peace between the portals and estate agents. Now it looks as if the truce may be over

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W

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e have come a long way in a short time. Portals were a child of the late 1990s, a product of the surging power of the internet and a lot of (mainly) American brain power.

During this period the US National Association of Realtors (NAR) – having failed to produce an effective in-house site – entered into a long term deal with Move.com to produce and run the Realtor.com web portal. This was their attempt to get property on sale directly onto the screens of the buying public.

Their monthly target of 500,000 unique visitors looked gutsy then:

laughably modest now, when they regularly receive over 12 million per month.

So was born the world’s first major property portal. Others followed very quickly. In the US alone there are now over 20 major players bringing in 225 million unique visitors per month. And all over the world, the number is growing fast.

Yet the massive success of the property portals has brought danger into the comfortable world of real estate.

At about the same time that portals were developing, Harvard

Business School professor Clayton M. Christensen coined the term “Disruptive Technology” to describe a new technology that unexpectedly displaces an established order.

Were estate agents going to be displaced?

More importantly to our part of the industry, were agents going to be displaced in international transactions?

This underlying worry turned into fear and then near panic as the property market collapsed and the portals boomed. However, agents took little action. They were focused on something more

JULY / AUGUST 2014

important: survival. But now, as markets recover and they are again making profits, they are addressing this challenge: and that lies behind much of the renewed conflict.

The Problem

Of course, agents have persuasive arguments as to why the public is better using an agent saving agency fees of tens of thousands of dollars/euro/pounds?

Of course, agents have persuasive arguments as to why the public is better off using an agent: agents can support sellers and reduce stress, they can advise

Challenges to the Portals The established portals see several challenges on the horizon.

There is a huge paradox here.

Without the agents who list their properties on the portals, there is no audience and the portals have no value (Trulia has a market value of $1.6 billion, Zillow $5.2 billion, Rightmove £2.1 billion/$3.57 billion). Yet the agents not only get no share of the profit, they are being charged for providing the ‘show’! When did a TV station last

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At its heart it is the prospect of the public buying and selling houses without the involvement of a property agent.

Only a few years ago if you wanted to buy a house, especially outside the US, you had little choice but to walk around all of the agencies in the area and look at the properties they were displaying in their offices. It was very limited information: a photograph, a price, a few lines of text. There was little or no cooperation between agencies.

Today, the internet brings massively more information direct to your computer screen or, increasingly, to your Smartphone.

Photos, videos, a map, comparable

properties, travel to work times, crime figures, demographics, reports on schools and hospitals, information about local shops, price histories, general market stats etc.

Faster. Easier. Much better.

So why do you need an agent?

Why don’t you just list your property directly on the portal,

about the best price to ask for the property, they can help them ‘dress’ the property, they take great pictures and video, they provide security by accompanying potential buyers on viewings, they know how to sell a home rather than just show it, they negotiate better prices than the seller would on their own and – once a sale has been agreed – they drive it through. Perhaps their fee is well deserved after all!

For international transactions, the arguments in favour of using an agent are, perhaps, even stronger: the distance to the property and between buyer and seller, problems arranging viewings, language difficulties, cultural differences, different legal systems etc.

Yet we all know that the public, given the choice between cheap and good, chooses cheap.

So what are the agents to do?

Designing, building and promoting your own website to compete with the giant portals is prohibitively expensive, so many reached what seemed like a pragmatic agreement with the enemy: let’s be friends. You do the web stuff. We will find the listings and sell the houses. That is the truce that seems now to be endangered.

It is, like Baghdad, threatened from several directions at the same time.

At the moment, many of these threats are most obvious in the US market – but they will spread.

The US market is older and more developed, but not fundamentally different. So what happens there is likely to happen elsewhere in the world a little later.

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BIG ISSUE Portals

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The newcomers pose a real threat to portals

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charge the star to come and appear in a programme? This may have to change.

They are also being challenged by aggressive newcomers who are trying to disrupt the disrupters: trying to offer new and cheaper services to blindside the existing portals in much the same way the portals blindsided many real estate agents when they burst upon the scene. Newcomers such as iProperty, set up in the UK by very experienced businessmen, will allow only property owners – individuals and developers – to list their properties. Agents are banned. Listings are also free of charge because their money making model is totally different.

Ouch!

They are also being challenged by some of their own agent users, who like the basic agent-centred model but feel the portals have got too greedy, make too much profit and offer too little service. As a result, initiatives such as Agents Mutual (again in the UK) look to offer a lower cost alternative, owned and managed by the agents themselves.

Much, indeed, as Realtor.com in the US was first conceived. This is no small upstart. The founder

agents were Savills, Knight Frank and other big names and they have since been joined by other large UK brands. Now, with 2,500 branches signed up and due to launch in January 2015, they threaten to be a force to be reckoned with.

There is a common thread of discontent. iProperty co-founder John Candia says: “We have launched with the

They are also being challenged by aggressive newcomers trying to disrupt the disrupters backing of developers and this would not have been forthcoming if they felt they were getting the best deals from Rightmove and Zoopla.”

(The UK’s two largest portals with some 60 million users per month).

“I do not understand why, when server costs are going down, subscription costs are going up.”

Ian Springett, speaking for Agents Mutual, said “the immediate strategy is to engage with every

agent in the country to get their thoughts on the new portal – and what is set to be a battle royal with Rightmove and Zoopla”. He estimates that the savings for a small agency using their portal will be over £3,800 ($6,000) per year.

Should Rightmove and Zoopla be worried? In the short term, probably not. They will fight back and the newcomers have a lot of catching up to do. Consumers will judge them by the quality of the website and the number of properties listed. Agents Mutual is probably the stronger threat. They are larger and their rules prohibit members from advertising on more than one other portal – so hitting the big players, where many agents list on both, very hard.

However, just a few years ago, property portals themselves were seen as no more than a minor irritant by the agents who reigned unchallenged, so don’t dismiss these initiatives out of hand.

Meanwhile, back in the US, there is also trouble brewing.

The Zillow “Coming Soon” facility – which allows properties to be exposed to the market before they are officially listed on an MLS (Multiple Listing Service) – is seen as

JULY / AUGUST 2014 the thin end of the wedge and has provoked severe resistance from Realtors.

Realtors, via the NAR, are also trying to recapture some of the ground lost to portals. They

Agents have given up the crown jewels: ownership of these internet visitors and their data recognise how dangerous it is to surrender your shop window to an aggressive, profit hungry competitor – especially if that competitor has the ability to bypass you by going for its listings direct to the public. They also realise how much money they are losing by doing so.

Yet, at the same time, there is much speculation that consolidation is on its way and, in particular, that Trulia will buy Move.com – who, remember, operate the NAR realtor.com website. There is certainly a lot of in-fighting, poaching and litigation going on: all signs that things are not well.

Around the world, agent controlled MLS are also fighting back: providing more joinedup services, extending into new countries and closing the gaps that let the portals in.

Challenges to the Agents

Specialist International Portals Most property is, of course, sold by national portals to both locals and international buyers who find their site. However, more and more are venturing into the field of pure international sales – sales of properties in other countries – both by having their own ‘international section’ and by forming partnerships with overseas portals.

In addition, there is a mass of portals – free, paid for and pay-perclick – specifically aimed at selling property internationally – and a slew of software, good and bad, to help you upload your properties to multiple sites.

Top Global Portals UK: Rightmoveoverseas.com US: Zillow.com Brazil: Vivareal.com.br France: Seloger.com Germany: immobilienscout24.de Spain: kyero.com Italy: Immobiliare.it Sweden: Hemnet.se Belgium: Immoweb.be Australia: Realestate.com.au Nigeria: Privateproperty.com.ng China: Juwai.com India: Commonfloor.com Pakistan: Zameen.com Vietnam: Batdongstan.com.vn Indonesia: Rumah.com Malaysia: iproperty.com Singapore: Propertyguru.com.sg

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First, they have (collectively) given up the crown jewels: ownership of this vast number of internet visitors and the data associated with them. Together, they are worth huge amounts of money. Can they recover them? Probably not.

Second, many feel they are being overcharged for the services supplied to them.

Third, and most pressing, they see the ever-present danger that the portals can cut them out of the loop: that the portals will simply get sellers to list directly with them.

Kate Allen of the Financial Times puts this strongly: “Traditional

estate agents face being wiped out by the rapid growth of online property portals which make it easier for sellers to market their homes to buyers directly”.

There is some evidence to support this. Sellers can already list directly on the main US sites – except, of course, on realtor. com – though they can’t yet do so on main UK sites for the sale of UK property. However, in the UK a whole new breed of ‘shadow agents’ has emerged. Both of the UK’s leading property portals allow ‘self-listing services’ and ‘online-only agents’ to advertise. These both act as a conduit, allowing home sellers to create their own adverts and post them without the need for a traditional estate agent and at a greatly reduced cost.

Worse still, from the fearful agent’s perspective, almost all portals now accept the direct listing of rental properties and, in the UK, Rightmove accepts the direct listing of international (but not UK) property. Are they just testing the market and their software?

Small wonder that agents perceive a threat. Shameem Golamy, Head of Overseas at Rightmove, understands: “Agents were very worried when we started to allow direct listings but they have now accepted the position.

They are now more worried about shadow agents, which is an issue we are looking at”.

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BIG ISSUE Portals Where should our industry focus? Can the (generally) small international portals survive a determined onslaught by the major players? Or is the market too complicated and fragmented to be of serious interest to them?

What have portals done for us?

Conclusion The facts seems pretty clear.

The public wants lots of property – ideally, perhaps, all property worldwide – on a great and easy to use website.

Portals would like pretty much the same thing – provided they are the one making the money by being Amazon. Not just the pennies from advertising and listings but the billions of market value built up by cornering this market.

Agents can’t compete – at least individually – but want to market their properties though such sites at a reasonable cost – and they DON’T want the public to be able to

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If the portals can reconcile these demands, harmony can prevail. If not, it’s war. Who will win?

18

list on them directly.

If the portals can reconcile these demands, harmony can prevail.

If not, it’s war. Who will win? My guess is it’s the portals. They are less fragmented, better organised, economically stronger, hungrier and more tech-savvy.

So where do we go from here?

Where do portals fit into the international property industry?

What can be done to fix the relationship? Do you use them? Do you trust them? Which work for you? Which don’t? Will you support new agent-only portals?

OPP encourages you to participate in our “Great Debate” on portals, via email to john.howell@ opp-connect.com. We will put your comments to the leading portals.

We are also conducting a major survey on this topic and will publish the results in September.

Makes print look prehistoric Andrew Taylor, CEO of Juwai (www.juwai.com), said “The amazing thing about portals is that in just a couple of decades they have gone from irrelevance to being most important medium of all. They are so much more efficient and their reach is so much greater, that newspapers seem prehistoric by comparison. In a newspaper, you know that if you buy a small ad, you get limited consumer attention. If you buy a full-page ad, you get more visibility, but you probably still need to repeat that ad the following week and so on.”

It’s global by nature Shameem Golamy, head of Rightmove Overseas (www.rightmoveoverseas.com), told OPP: “The international property market is still very fragmented. If an agent starts up a business and wants to find buyers – locally or elsewhere – they have to realize that at least 80% of those buyers will be starting their search on the internet.

“We’re averaging 800,000 unique visitors per month, with a peak of almost 900,000 so far this year. It’s a nightmare for an agent to try and do that with their own website. They have to work out how to get to page one on Google in not only their own countries, but in multiple countries with multiple languages. Trying to win on Google in that situation is trying to hit a moving target.”

Paul Hermann, co-founder and CEO of Lamudi (www.lamudi.com) agrees: “We adjust our prices to the local markets. Since we are operating in currently 17 different markets in Latin America, Africa and in Asia with different pricing structures we adapt to the local specialties.”

properties on customers’ phones, anywhere, any time Portals have the money and the staff to develop technology – especially important as mobile becomes more prevelant. Paul Hermann said, “As M-Commerce will become increasingly important in emerging markets as well as in the real estate market, we want to give our customers total flexibility and allow them to look for great houses and flats to buy or to rent whenever they want and wherever they are.”

customers know where to go Shameem Golamy told OPP: “Rightmove Overseas doesn’t spend money on Google advertising. Our success comes from good, numerous content.

The agents putting good stuff in keeps people coming back. The more visitors that we get, the more people want to advertise. It’s what we call a “virtuous circle”.“

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NEWS Development news

Launches, milestones, openings... please send news and images of your development to chris.nye@opp-connect.com

Keeping track of major developments The world’s new tallest building?

The latest design from UK architecture firm Chetwoods, in collaboration with WSP, will break the record for the world’s tallest building.

Phoenix Towers, to be built in the Chinese city of Wutan, will stand a full kilometre high, the same projected height as Saudi Arabia’s Kingdom Tower and 150m higher than the world’s current tallest building, the Burj Khalifa in Dubai.

The developers will employ groundbreaking green construction techniques. A complex mechanical system is to simultaneously filter Wuhan’s air and water; collect power from solar, wind and hydrogen; grow produce in a vertical garden; harvest rainwater; and boil biomass.

Construction is due to start next year, with an expected 2018 completion date. www.chetwoods.com

Highest apartments in Adelaide

Capital House completed

Construction of the Capital House high-rise in Abu Dhabi is now complete. The 30-storey tower in the Capital Centre development contains 332 apartments.

Foundations for the building were cast in April 2012 and construction saw over 1,000 labourers on site each day. The building was developed by SinoGulf Real Estate Investments and EastGate Capital Group. The architect, Maisam, won “Best Architectural, Multiple Residences” at the International Property Awards. www.sinogulf.com

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Azizi thinking big in Al Furjan

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Construction is set to start on Vue on King William, which will be Adelaide’s tallest residential building. The 85-metre tall tower will be built in prime central Adelaide, topping out at 27 storeys.

The finished project will include 2015 apartments (one-, two- and three-bedroom), a pool, a gym and barbecue facilities (of course!).

Designed by Woods Bagot, the architecture features a folded glass curtain wall facade with recessed balconies to enhance views, while at street level an articulated layer of metal-perforated screening will help privacy.

Construction is due to start next month www.woodsbagot.com

Azizi Developments will be investing over Dh2.5billion in the Dubai property market, launching 10 new residential towers and seven hotel/hotel apartment towers.

JULY / AUGUST 2014 The projects, all in the al Furjan master community, will comprise nearly 200 units. Azizi says they aim to deliver the developments by December 2015. They will launch three residential towers in July and five more before the end of 2014.

The company aims to build 1,200 residential units by 2020.

Meanwhile, Danube Properties is planning to develop 175 townhouses in Al Furjan by 2016 in a AED500million project. www.azizigroup.com

New residential giant in Boston

A 300-year-old former coaching inn in London has been sold to a Jersey (Channel Islands) developer for

£27million – a record high price for a pub in central London. Developer 123 Bayswater Road Ltd is expected to turn the building into luxury flats, reported the evening standard. The Black Lion, which was first listed as an ale house in 1704, was used as the registration house for the Paddington Volunteers during Napoleonic times.

Westminster council is consulting on a new policy to give pubs 12 months’ protection after being sold, following a big rise in old inns being converted into homes.

Building bulletins

Strong demand from UK home builders has led to a significant increase in residential land values, according to Savills. Some locations are now priced above their peaks of 2007, the real estate adviser said in a report.

Green field land values grew an average 7.5% across the UK year-on-year to March 2014.

YIT is to to start construction of four residential projects for TA-Yhtiöt in Finland. Totalling 100 apartments, the projects are valued at around €20million and are due for completion in 2015.

The building and garage where FBI official Mark Felt met with Washington Post reporter Bob Woodward during the Watergate investigation will be demolished and replaced by a 28-storey residential tower and 24-storey commercial building. The garage, in Virginia, US, will be razed but the historical marker will remain.

The servicing of nearly 900 residential plots in Walvis Bay, Namibia, is on track to finish by the end of July, according to the council. The project will cost N$120million and help boost housing supply in the town, which has 27,000 people living in shacks.

Nine floors of the 32-storey BKK1 condo project, Platinum Bay, have been completed. Construction of the development, in Phnom Penh, Cambodia, is expected to be completed by mid-2017. Developer Platinum Bay Condo has said that sales are strong so far – units are going for around $200,000.

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The Boston (US) skyline will have a new residential addition. A 60-storey super-prime condo development, valued at $700 million, will be built at 1 Dalton Street. The building will be Boston’s third tallest structure overall and will include 180 condos. Four Seasons Hotels and Resorts will manage the hotel and residences in the building, which is to be developed by Carpenter & Co. Construction is aimed to start before the end of this year, with completion estimated in 2017.

“This is designed to be a landmark building,” said Richard L. Friedman, chief executive of Carpenter & Co. “It’s going to be very prominent on the skyline.” Architects Cambridge 7 Associates and Henry N. Cobb designed the building. www.carpenterandcompanyinc.com

Old pub breaks new record

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BUSINESS Training

The first YES! Don’t put off potential clients before they’re hooked

YES Get that first thumbs up and the rest will be much easier

I

ensure they know every possible step and problem along the way, we complicate that first yes to such an extent that they say no.

An example of this is happening in my world right now. Our house is being painted. As my wife and I cleared the living room and kitchen on Sunday night in readiness for the painters arriving, having just put the sitting room and two bedrooms back together, she said, “If I’d have known the amount of work and

How easy do you make your first yes?

Do you put blocks in the way that result in a no? inconvenience involved, I would never have done this.” I think she’s right, yet that would have been the wrong decision.

Our painters told us nothing of the inconvenience and, though I initially thought that a little shoddy, I now realise that they’d never win any business if they ran through the pain before we said yes. They made the first yes easy by giving a price and a timeframe to do the whole job: one job, one figure. One simple

(and quite expensive!) yes. They’re doing a great job by the way.

So, how easy do you make your first yes? Do you put blocks in the way that, though thorough and professional, actually result in a no from people that wanted to say yes? Surely this is one of the worst mistakes to make in sales. I made one such error in my early days of running the Association of International Property Professionals.

We used to send out a membership application form that ran to 18 pages. Companies would be interested in membership having spoken to us, but their MD would then receive an 18-page attachment and they would just groan and file it for later.

Of course, they didn’t do it. The person now in charge at the AIPP, Peter Robinson, pointed out to me (after eventually opening the form for his company’s application) that the form itself was only three pages and the rest was the Code of Conduct, Disciplinary Procedure and other such documents. In five minutes it was changed and the form went from 18 to three pages.

MDs opened the attachment, filled in the forms and sent them back.

We were making the first yes too difficult. I recommend you avoid the same mistake by making the first yes an easy one. Yes?

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nterviewing the British entrepreneur Royston Guest of PTI Worldwide recently for my forthcoming book (Sell for your life!), I asked how he suggests overcoming a common problem in the process of selling training programmes. Clients want a sales trainer to come in for a day’s training to ‘fix’ the sales team: improve their skills, change their habits, even their attitude. As a sales trainer, you know that one day of training will not provide the long-term – or even medium-term – fix they seek. Imagine thinking that you’ll get physically fit by one day at the gym! At the same time, you know that the client is not ready to sign up to the 6-12 month training programme they actually need.

“You have to make the first YES an easy one,” said Royston. “Deliver that first day of training. Build your relationship with them. Develop trust in what you do and then, impressed by your work, they are much more likely to have a proper discussion about the programme they clearly need. You end up giving them what they need but they’d never have accepted that from you at the beginning.”

Brilliant. Simple. But still brilliant.

Sometimes, to make sure a client fully understands what needs to happen through a process, and to

PAUL OWEN: The Clear Path Company Tel: +44 (0)20 3004 9113

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EXPERTS ADVISE LinkedIn

Time to get Linked?

Love it, hate it, you cannot ignore LinkedIn. Except that lots of people do. Don’t, says Francine Carrel, it could be your business’s best friend

www.opp-connect.com

F

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or a while I tried to ignore LinkedIn - who needs another social media? Then I tried using it the bare minimum: on the site but not engaging with it. Sure, it was useful for general network and I enjoyed a little frisson of smugness when someone “endorsed” my skills. But eventually, bullied by the sheer number of emails I got from LinkedIn, I started getting serious about it. And what I found was an extremely valuable resource. If you are wavering, don’t ignore it, this could be a serious boon to your business. Listen up.

Here is how to do LinkedIn.

Quick expansion LinkedIn was launched in 2003 and, within a year, boasted over a million members. By 2006 it was turning a profit. Expanding quickly, the site took advantage of

new web technology to introduce now well-known features like “people you may know” and “recommendations”. In 2008 LinkedIn went truly global, opening an office in London and releasing Spanish and French versions of the networking site.

According to the site’s most recent statistics, LinkedIn now has over 300 million registered users in more than 200 countries and territories. The site is now available in 20 languages, including Chinese, employs over 5,000 people and has a global Alexa rank of 12. They’re currently focused on breaking into China after facing a recent drubbing in Western social media after their compliance with Tiananmen square censorship.

To pay or not to pay?

If you’re going to be using LinkedIn

Francine Carrel International Property Reporter francine.carrel@opp-connect.com

in any meaningful way, it’s probably worth forking out for a premium membership. Though social media has long been touted as the ‘free’ way to advertise, the tide is turning and it’s unlikely that you’ll see significant results – and this goes for most platforms – without some

JULY / AUGUST 2014 Brush up on your basic Search Engine Optimisation (SEO). Utilise the description and specialities sections by adding keywords and phrases (real estate, international real estate, California realtor etc) for Google and LinkedIn’s search section to pick up on. Just be aware that most professionals have at least heard of SEO, so ‘stuffing’ your text unnaturally with key words might look amateurish.

Make the most of the platform’s limited design options by keeping your “banner” fresh. Opt for a high quality image and keep the branding constant – but mix it up a bit with backgrounds of your latest developments, the logos of any awards you’ve won recently (yet another reason to enter the OPP Awards for Excellence!) and any other notable achievements.

Use a crisp image for the smaller logo – try to coordinate it with

kind of investment.

You can choose from three bands (Sales Basic, Sales Plus and Sales Executive), ranging in price from £15 to £50 per month. For a start, it makes it a lot easier for people to get in touch with you. Paying for premium gives you an Open Profile, which means anyone on LinkedIn can send you a message for free, even if they’re outside your network. If you’ve ever tried contacting a company only to be told you don’t know them well enough, you’ll understand why this is an advantage!

Lead Builder is another handy feature, allowing you to create and edit lists of prospective clients. Together with Lead Recommendations and the option to automatically run your preferred searches, it seriously streamlines the process of lead collection.

You can create both a personal page and a company page. The company page needs to be immaculate and professional – it might be the first link prospective clients and partners click through to from Google (LinkedIn does very well on Google results).

your banner if possible. If you’re not great at graphics, please do rope in someone who is. An unprofessional, grainy, stretched banner or logo will do more damage than a blank space.

Build an audience Start making connections.

Begin with your colleagues and employees, who can share your page updates and contribute to discussions. Then get hold of your current clients and partners.

You can’t connect with anyone who’s a third level connection or greater, unless your have their email address. There are ways around this, though. If you have a connection in common you can select “get introduced through a connection”. Alternatively, you can join groups they’re members of (and you’re pretty likely to have interests in common) and send an

Interaction In order to keep your company fresh in followers’ minds without spamming them, it’s a good idea to share relevant links, blog posts and thoughtful questions to encourage discussion. Think about who you’re trying to target – partners or clients. Eg: “This article shows a trend towards gated communities in Miami – do you think they will continue to prove popular?” is good for encouraging interaction with other property professionals, but may need rewording if you’re after buyer replies.

Keep an eye out for connections posting content or queries, as well – interaction has to work both ways.

This is also a chance to show off your industry knowledge by participating in the comment threads – but be sure not to overstep the mark and start waxing lyrical about a subject you’re shaky on!

Advertising Dominic Tidey of the ARP told OPP, “LinkedIn has the most amazing targeted advertising system. So you can look for specific professions, you can look for specific income streams, look for specific postcodes, and the innovative companies will use that to ensure they are attracting expat groups or people coming back to the UK.” LinkedIn gives you these search options: Location Companies (name, category, or exclude companies like your competitors or current customers) Job title School attended Skills Group Gender Age (18-24, 25-34, 35-54, 55+) Start small with your advertising.

LinkedIn provides easy steps to

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Optimising your company page

Be aware that most professionals are aware of SEO, so stuffing in keywords looks amateurish

invitation to connect.

Try to get journalists connected to you. If they’ve missed a press release they may well pick up on one of your company updates.

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EXPERTS ADVISE LinkedIn setup targeted ad campaigns, so begin by working out exactly who you want to notice you and narrow down the options.

Work out different targets for different products.

Then it’s time to get scientific.

Each time you start a new campaign, send out several with small variations to the text to see what tone and language works best with your audience. Don’t leave it once you’ve found a “winning” formula, though – campaigns require upkeep. Use analytics to keep an eye on trends and keep refining your ads.

Common sense plays a part here, too. Has Spain recently had some good publicity in Portugal? Great.

Time for Portuguese-language ads extolling the virtues of your Barcelona apartments. Has a new technology been hitting the headlines? Let people know you’re using it!

Company updates LinkedIn can keep your audience informed without the in-yourface updates. Don’t go overboard, but create a good image of your company with positive news (new

Tips and tricks Once you’ve had a look on the page of someone you’re interested with, they’ll receive a notification telling them you’ve done so. It’s fairly likely that their curiosity will mean they pay you a return visit! At this point you can send an invitation to connect.

Make sure you personalise invitations. Big businesses receive loads of the LinkedIn default messages and will probably discard them.

Use advanced search to find offline events by region – it might turn up some stuff that a Google search didn’t.

Ask your satisfied clients to write you a recommendation on your profile or company page. When you send them the request, it’s a good idea to mention some of your specific skills so you don’t get a generic “she’s good at her job”.

Complete your profile! It might seem obvious, but the more information you have, the more trustworthy you’re going to seem. Don’t make it hard for people to learn more about you.

awards, expanding staff, a swish new office), while reposting news stories and articles that show your area of expertise in a positive light or inform your target audience (Florida property strong, ten tips for buying abroad).

You can also fork out for sponsored updates. These will appear in people’s timelines rather than in the ad display to the side.

You can use larger images than in

When trying to attract the best new employees, you need to put work into the careers tab ads, so these are a good choice if you’re trying to catch someone’s eye with a beautiful villa. There’s also the added advantage that anyone who likes your content can share it with their followers.

Use sponsored updates rather than ads if you want to provoke a discussion, or have content turn viral.

www.opp-connect.com

Finding new staff

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Keep connections up to date with your good news!

LinkedIn is also a great way for prospective employees to learn about your company.

If you’re trying to attract the best, you need to put the effort in.

Your careers page should explain succinctly why you’re the company to work for. Include the company’s mission statement, the size of staff and the kind of person you’re looking for.

Mixed media can play an important role here: an introductory video to add some personality or a virtual tour of one of your developments can whet a professional’s appetite.

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DESIGN Resort property

RELAXATION RECUPERATION RECREATION

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Resort architecture is strongly driven by changing demands and trends. This year has been defined by health, family connection and a desire for drama

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JULY / AUGUST 2014

S

ome OPPs may be reading this in the little holiday home in Spain or Florida that they didn’t sell quickly enough in 2006, the pages brushed every few moments by the fan shifting hot air from place to place. Others will be reading this on a beautiful new resort, sipping something cool by the pool. If that’s you, stop working and relax for a while! But before that, I wonder what new features your resort is boasting this summer? Here are some ideas from the experts on what’s new in 2014 and coming along for 2015.

According to architecture firm Gensler, hospitality architecture will be influenced by two trends.

The first is medical and wellness tourism: “As people shop the world for medical procedures... on the horizon are resorts that combine wellness with recreation and other diversions, allowing people to recuperate and recalibrate. Tying these resorts to wellness programs back home could make hospitality brands a player or strategic partner in the healthcare market.”

The second trend is “demographically driven expectations: the potential clientele for hospitality is driven by demographics. Cohorts gather – for business or pleasure.”

A survey by the US company Destination Hotels & Resorts made a similar discovery: while a small majority (55%) wanted nothing to do with anything ‘experiential’

Aman Villas at Amanzoe, Peloponnese, Greece

There’s been a revolt against the ‘digital detox’. Folks want to be plugged in after all Prem Nath says: “Drama makes a comeback. Currently the trend is whirling white. White curtains, white bed sheets, white flooring, white furniture give a serene and simple but aesthetically appealing look to the rooms. It not only has a soothing effect but reflects maximum light and reduces light fixtures creating various moods and suiting different occasions.” Michael Kofsky of the Grand Hyatt, told Hotel Executive magazine that the key interior design trend in resorts is “to seek inspiration from their own backyard... From architectural design highlights to fabrics, textiles and colours, the hospitality industry has found that integrating aspects of the natural environment is key to making a lasting impression, and offering an authentic experience.”

New trends in resort brands include one simple but innovative idea. What do guests often ask the receptionist when going for a night out: “where do the locals hang out?” Now some hotels are trying to make their own lobbies, bars and restaurants the neighbourhood hangout, with cultural events and after-work drinks promos. Another trend is branding by well-known designers – Norman Foster and Daniel Libeskind are just two ‘starchitects’ brought in to create a buzz around design.

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Architect: Ed Tuttle About: Starting at €3million, these four and six bedroom villas are on one of the grandest resorts in the Mediterranean.

The brochure says: “chic minimalist interiors, architecture and design… a living representation of Greece’s past and future potential offering… centered on Grecian style architecture and design… radiate with natural grandeur and a relaxed sensibility.” www.amansvillasph.com

on holiday, 39% did fancy trying something new and physical, such as climbing or surfing, and they want to do that together.

Another trend identified was a revolt against the previous trendy ‘digital detox’. Folks do want to be plugged in after all, even on holiday: 66% said that in-room connection was essential. When it comes to food, ‘locavore’ is the new, rather clumsy buzzword.

For interiors, Indian designer

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DESIGN Resort property

PGA Calatunya Resort, Spain Designer: Various, including Richard Hywel, Deblacam & Meagher.

About: An ultra-upmarket golf resort with two-bedroom apartments to four-bedroom villas and plots up to 4,000m2. Really gorgeous modern designs.

Brochure says: “open-plan kitchen by Bulthaup combines modernity and classical elegance… main bedroom has an independent dressing room and private bathroom with shower and bath…“ www.pgacatalunya.com

La Durantie, The Tarn, France

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Design: Environ Communities About: An hour from Toulouse, built using local materials. The two- to fivebedroom properties.

Brochure says: “Spacious and light, blending the best of local stone, terracotta, limestone and wood… set within the estate’s landscaped gardens in clusters with shared courtyards.” www.durantie.com

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JULY / AUGUST 2014

Ashjar at Al Barari, Dubai, UAE About: The next phase of Al Barari is Ashjar (trees, in Arabic) continuing the Zaal family’s aim to be the greenest, lushest developer in Dubai. The 300, one- to three-bed residences start at AED3.4m (£541k) The brochure says: “integrating high-end living with a natural, green environment” www.albarari.com

Matrix Pattaya City Centre, Thailand Designer: Matrix About: Studio and twobedroom condos covering eight floors in central Pattaya, Thailand. Includes, gym, pool and sauna.

The brochure says: “An amazing, high end modern development… high-quality floor tiling and well appointed, tiled luxury bathrooms with hot water” www.matrixpattaya.com

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31

TECHNOLOGY Round up

Keeping track of new technologies: from state-of-the-art software to cutting-edge construction innovation to draw in genERATION now

SCAN ME To see a walk-through of Clayton Homes’ new concept

From Clayton Homes in the US comes a concept home called “Gen Now”. Designed to specifically appeal to buyers in the 19-37 age group that they call Generation Now. The concept house has innovative floor plans and flexible space that changes as the buyer does. The designer renamed the rooms in slightly-forced trendiness (e.g. ‘cook’ instead of kitchen) in order to “reimagine the space”.

Technology-wise, the home features ‘smart points’ including a charging station near the front door, keyless entry and an automated home system controlled from a tablet.

Kevin Clayton, CEO of Clayton Homes, said: “Our designers have put careful thought and attention into supplementing this generation’s lifestyle throughout the home. We constantly focus on innovation, and we wanted to create a home that would meet the needs of this impactful age group.” www.claytonhomes.com

generate quick reports

Onthehouse Group has launched a new Console product, ‘RESearch’ (real estate search). Designed with the help of Australian real estate agents, the analysis tool lets OPPs quickly generate Comparative Mark Analysis (CMA) reports, access property and owner data, and use mapping technology.

Agents can produce CMA reports and then customize them with their name, agency details and branding. www.onthehouse.com.au

Water-based Co2 solution?

Intuitive searches with Ylopo

Realtor.com in their management product, TigerLead. Based in Los Angeles, Ylopo has its research and development team in South Africa.

Juefeng Ge and Vian Chinner launched the start-up last year. www.ylopo.com

Researches at the Mikkeli University of Applied Sciences, in Finland, have come up with a water-based technique for removing carbon dioxide from industrial emissions. “We dissolve the flue gas emissions in water and using low pressure we separate the carbon dioxide from the liquid as a gas,” researcher Teijo Linnanen said. The bottled gas could then be sold to paper manufacturers, among other industries. The University is currently looking for financing to produce a demo facility for the product. www.mamk.fi

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Move Inc, the operator of Realtor. com, has invested in a start-up called Ylopo (why-loh-poh), which is aiming to develop “the world’s most intuitive search engine”.

The company use machine learning and data mining to learn why people like certain houses.

“We use these insights to curate and recommend homes that we believe they will be most attracted to, thus creating a more intuitive user experience and a more interesting prospect for real estate professionals,” Ylopo said.

The technology will be used by

Heard of a new technology that could affect the industry?

Started using top-of-the-range software that sets you apart from the crowd? Tell us about it and get published. Contact: chris.nye@opp-connect.com

33

TECHNOLOGY Round up

Management goes mobile

Xora, a California-based company, has release Xora StreetSmart, a “mobile workforce management solution” for use on construction sites. The programme includes Mileage Manager, which streamlines mileage and expense submission; Mobile Timesheets; Mobile Jobs, to reduce paperwork; and Mobile Forms which have electronic signature functions.

Another new feature is the ability to create and export a PDF of the user’s route map, which can be easily shared with employees or potential clients. www.xora.com

3D software wows judges

Tiny robots – the future of construction?

Researchers at the Institute for Advanced Architecture of Catalonia, in Barcelona, are developing tiny robots capable of constructing buildings of any size quickly and cheaply. These “Minibuilders” are being designed as an alternative to the often slow 3D printers. The Minibuilders work onsite in teams of three, with each carrying out a different task, building layer by layer. The

little robots have sensors and positioning systems to help with their instructions. Foundation robots build the first 20 layers, followed by grip robots who hang onto the side or top of the structure, adding more layers as well as ceilings, door frames, etc. Finally, vacuum robots add a reinforced layer to everything at the end. www.iaac.net

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Websites taken hostage

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Matterport won Realogy’s annual “FWD” pitch competition for real estate startups with its high-tech 3D tour technology. The firm from Silicon Valley took home the $25,000 grand prize in the second edition of the awards, which was won last year by Floored.

Matterport produces a 3D camera capable of producing 360-degree panoramas and fly-through videos of a property. Then the company’s software creates a 3D virtual model of a home with the collected data, which can be tilted and rotated for flexible viewing. Check it out at www.matterport.com

US-based group Move Inc was the victim of cyber attacks late in June, causing sites like Realtor.com to shut down for hours. A “distributed denial of service attack” took down the Move Inc sites with “massive amounts of traffic”, Move said. This

method of taking down sites is on the rise. The company received a ransom demand, which it didn’t respond to, and has moved its internet services to a different network system. www.realtor.com

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LEGAL News

LEGAL News

The East needschanges to get Our Middle round-up of legal stricter, andbut Venezuela finds taxwhile hikesEgypt in Spain speedier struggle with newFrance regulations processes in US, and India BAHRAIN Abu Dhabi REDUCED REGISTRATION Agent frauds rampant CHARGES say police Abu20 Dhabi being plagued On May,isBahrain’s Shura by fraudulent real agents, Council ratifi ed estate a motion to reduce according to police.

Officials charges for the registration of have investigated hundreds of newly acquired real estate. The property fraud cases in the last 15 amendment, bringing the buyer’s months – 66 of them in the first fee down from 3% of the property quarter this year. Fake agents value to of 2%, is hoped to stimulate and landlords have been renting real estate growth. one home to several families, Furthermore, an incentive disappearing before the designed to push buyers scam to pay becomes apparent.

Police told local quickly was approved – if the publications that the fraud payment is made within 60 cases days usually started with advertisements the buyer will receive a 15% in property or social discount onpublications registration fees. media for a unit to rent.

Potential [Source: Oxford Business Group, renters are asked to pay for some www.oxfordbusinessgroup.com] or all of the rent in cash, while the criminal BRAZILstarts showing the home to others – and then vanishes.

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According to the Foreign Capital Law, “Foreign capital is considered Forbe the first time machinery since Crimea to any goods, or was annexed in that March, properties equipment enters Brazil in the area can be registered with the with no initial foreign exchange Russian government. disbursement, intended for After two months of uncertainty production of goods and services, the first registration centre and any funds brought into under the Russia’s cadastral system has country for use in economic

francine.carrel@opp-connect.com john.howell@opp-connect.com

More updates are available in our news section at www.opp-connect.com

in much-needed capital to the island, tax cuts and Dubaioffer Landattractive Department (DLD). increased security for investors.

The industry has been waiting 18 months for the law to be passed and legal experts gave Cyprus their views on the draft to the Taxman given sweeping Land Department last year, powers reports the National website. No specific details were available but Ms Rashed says it is ready and is being examined by higher authorities. The DLD first announced in October 2011 that it was employing experts to examine and improve the real estate investor protection law by the end of the year, but to date nothing has been finalized.

[Reported by Adrian Bishop, Editor New legislation of OPP Connect.]in Cyprus gives the taxman much more power.

The new bill, amending the core tax law of 1962, has been FRANCE submitted to parliament. If CHANGE INdirector CAPITAL passed, the of the Inland Revenue Department (IRD) could GAINS TAX request banks to freeze assets in the accounts of those who owe President Francois Hollande has taxes; order the confiscation of announced a change in the capital a person’s movable property; gains tax system on second home and to place a lienmore on a fltax debtor’s sales provide uidity in the bank account without securing a French property market. The taper court order.

The last action only relief system is to be changed so relates tax arrears considered that fromto2014 the required time both final and recoverable. of ownerships before a property is completely exempt from capital gains tax will be 22 years, down Dubai from the 30 year system which was Plans stop off-plan ratifi ed into September 2012.

Nicholas Leach, Partner at Athena flipping Advisors, commented, “This could Dubai is considering be considered as a bitintroducing of a U-turn new measures to stop off-planto by the government, reverting property flipping, according to a system which is similar to that the International Monetary Fund when Sarkozy was in power. Last (IMF). “Imposing additional year’s property tax changesfees put

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REGISTRATION OF FOREIGN CAPITAL Crimea Properties up for registration

been opened.

According to Deputy activities, provided that they belong Economic Development Minister to individuals or corporate entities Pavel Korolyov, similar centres will domiciled or incorporated abroad.” beForeign openedcapital acrossmust Crimea.

He said be that the re-registration registered by means of process an could be almost finished by the end Electronic Statement of Registration of summer.

– Foreign Direct Investment Module However,onthe only (RDE-IED), thecentres Centralwill Bank have the capacity to process Information System (SISBACEN).

300the cases a day – of and the new For purposes the Electronic registry will have to be built pretty Statement of Registration, foreign much from scratch.

This could direct investment is defined as take significantly longer than Mr permanent holdings in Brazilian Korolyov’s prediction. companies or, in accordance with common market practices, longterm ownership by non-resident Cuba investors; individuals or corporate Residency for entities residing, domiciled or investment announced 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 The Cuban government has Antunes, Maxwell Alves Solicitors, established a temporary residence www.maxwellalves.com] visa for foreigners who buy or rent on the island. The visa will be good DUBAI for a year and renewable.

TANWEER LEGISLATION During their stay, foreigners TO may engage in activity “related BE ANNOUNCED to tourism and business duly authorized by thelaw existing A new property aimed at legislation.”

If foreigners want to improving investors’ rights engage in unauthorised activity looks set to be announced soon they must obtain a special permit. in Dubai.

The long-awaited The new regulation comes Tanweer legislation will be as Cuba gets ready to open its doors announced “soon”, says Majida wider, with new foreign investment Ali Rashed, the head of the Real laws coming into action this June.

Estate Investment Management The laws, which are hoped to bring and Promotion Centre 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

63

JULY / AUGUST 2014 and restrictions on reselling offplan properties, as currently under consideration, would further discourage speculative demand,” the IMF said. The Dubai Land Department told Emirates 24/7 that although the exact measures aren’t definite, the plan is to introduce “new measures/fees on a sliding scale”, adding that “we need more regulations to discourage speculators.”

Egypt Tax law amendments passed

construction projects, litigation issues, falling values and more finance availability for domestic and foreign purchases. Top of the priority list of India’s developers for government action is: 1) Speeding-up the process of granting regulatory approvals, as the chronic lag has been a major obstacle for most of their project. 2) Passing the Real Estate Development Regulation & Development bill, which has been lingering for some time. 3) Easing land acquisition parameters so that availability of land is no longer a major constraint.

Previous problems led to vastly increasing prices.

Malaysia Controversial Johor bill

The Egyptian Cabinet approved amendments made to the property tax law, originally passed in 2008.

The amendments include the collection of taxes in January rather than July (applicable to both commercial and residential real estate owners). Residential units with a monthly rental value of EG£2,000 or less will be exempt from taxes. “The tax rate applied is 10% of the rental value,” legal adviser to the real estate division at the ministry’s Egyptian Tax Authority (ETA) Anwar Farag said, Daily News Egypt reported.

“There are still some discussions on whether the residential units figure [the monthly EG£2,000 rent value] will be applied to the total number of residential units or the single unit”. Another official said that collected taxes are expected to amount to EG£3bn ($420million).

The housing industry wants the new Narendra Modi-led NDA government to take charge of issues including affordability, delayed

Turks & Caicos Islands Strict proposals not definite The government has clarified that proposals to establish resort management and rental legislation are merely being considered – they are not final. After a group of concerned resort owners went to the government with suggestions of strict legal guidelines for rental units within resorts, the government had to release a statement asserting that while the submissions will be considered in good faith, they have yet to take a stance on the matters. “At this time, these submissions are nothing more than proposals which the government is considering and should not be taken as anything other than that,” the statement said. Robert Greenwood, president of the TCI Real Estate Association, told the Weekly News that the association is concerned about the proposals – warning that if they were put in place they would affect the industry in “serious ways”.

Venezuela Tough law shakes rental market The aftermath of a tough eviction law change has led to the Venezuelan rental market drying up, according to professionals in the country. Owners are reluctant to rent out properties in fear that evicting tenants would be extremely difficult. The Law for the Regulation and Control of Rental housing was introduced in 2011. The law is there to protect tenants, but thousands of would-be renters are finding it near impossible to rent an apartment, Venezuelan Real Estate Association president Aquiles Martini Pietri told Efe. Another expert told the news source that renting once accounted for 30% of housing options – and that it is now down to 1%.

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India NDA government under pressure for change

Controversial clauses in a Johor housing bill have been amended to limit the powers of the Sultan.

The changes were made during the passing of the Johor Housing and Property Board Bill, which includes the setting up of the Johor Housing Board and proposals involving the role of the Sultan, Ibrahim Ismail. The board has been created to undertake and promote the development of real property and housing in Johor and was approved by the Johor State Assembly.

Ten amendments were made to 10 clauses, including stipulating that the Ruler has to act on the advice of the Menteri Besar Under Clause 12 (2) Appointment of Directors, Officers and Civil Servants, the appointment of the directors shall have prior approval of the Sultan on the advice of the Sultan, instead of solely based on the approval of the Sultan. Under Clause 43 (1) Winding up and Liquidation, the state authority may wind up or dissolve

the board by publishing it in the Government Gazette, instead of the Sultan being able to dissolve it by having the order gazetted.

37

EXPERTS ADVISE London versus Paris Words | Christopher Nye

A Tale of Two Prime Markets

London has been swaggering while Paris staggers. But is the wind changing?

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A

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story doing the rounds this month typified the madness of the London property scene right now. Hundreds of JCB diggers, it was claimed in several newspapers, were left entombed in the new basement conversions they’d been used to dig underneath London houses, because their Russian and Chinese owners found it too much bother to remove them.

The story was soon scotched – why would anyone waste £50,000psm space that could be an indoor pool or gym, on a digger? London’s oligarchs didn’t get rich by being stupid – but the story gained such traction because at first hearing it sounds like it could be true.

London’s property market, some

people think, is looking distinctly bubbly – culminating in late May with an apartment going for £140million and with 18.2% price rises in the year to March. There’s

There is a sense among British people, if not foreign investors, that it’s all got out of hand a sense among British people, if not the Asian and Russian investors who are accused of stoking it all, that it’s all got out of hand – the last

convulsions of a fevered market.

Even home owners are beginning to get angry as the bright young people who make London special are priced out, while properties owned by Ukrainian oligarchs and Qatari princes stand empty.

BRAIN DRAIN There is also anger 210 miles south-east of London, in Paris.

Here, French President Hollande has become almost comically unpopular. “Hollande has the worst rating of any President in the history of France, he is an idiot,” says Adrian Leeds, a property finder in Paris. While the British economy is rising by 0.8% per quarter, in France it has risen by

JULY / AUGUST 2014 market is pausing for breath, which typically happens after a period of prolonged growth. Further proof of this trend is that the average number of viewings per property before an offer is made is 70% higher than last year.” They expect price growth to slow to zero in 2015.

Rightmove says London has hit an “affordability cap” with the market “running out of steam”, while Savills reports flat-lining prices.

The French are exiting France with their money, youth and talent and they head to London LONDON CALLING

London is not “frothy” at all, as they target 14% returns on their new fund, London Central Apartments II: “LCP’s research has also called into question the rampant fears of a current house price bubble in the UK’s property market. Price growth was just 4.7% across last year, substantially lower than the long term average of 9.7%. Indeed, in 2002 and 2004, price rises were 16.1% and 14.8% respectively and between 2000 and 2006, prices rose a staggering 89% as they finally recovered from the fall in 1989.

Comparatively, prices in Central London, which is affected by international factors, rose just 51% over the same period as investors.”

SLOWDOWN? Whatever the truth – and plenty of highly respected property experts have been caught out prematurely calling the end of the London boom in recent years – the general tone from the recent GRI

NAOMI HEATON www.londoncentralportfolio.com +44 (0)20 7723 1733

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0.8% in the past two years, while haemorrhaging its brightest people.

“The French are exiting France with their money and their youth and talent and they are heading to London. They were getting poorer by the minute and could not afford to purchase in France,” says Adrian.

This July, the 225th anniversary of Bastille Day, it feels like Paris is under a new reign of socialist terror. As the elite flee to the UK and North America, a new version of Madame Defarge sits beneath the guillotine, grimly chopping off France’s entrepreneurial spirit.

But could the wind be changing?

Two stories side-by-side on the Knight Frank Research website this month suggested so. “French property enquiries strengthen in 2014,” said one, next to “Reversal of fortunes in prime central London.”

Looking at the London market, Knight Frank noted that supply is rising while demand is slackening off. “There is a growing sense the

Maybe not a good time to be launching a London fund then?

Au contraire, says David Rogers of Rocksure, which launched its London Fund this spring: “We think that there will definitely be a correction this year due to buyers’ resistance to frothy asking prices, political uncertainty ahead of the Scottish vote and the next General Election, and action by the BoE/ Treasury related to the mortgage market. As such, we expect the market will become more of a buyers’ market, meaning that when Rocksure looks to purchase for The London Fund at the end of the year, we should be in a good position.

Our expectation is that over the course of the next 10 years, prices for prime residential real estate in central London have strong potential for growth.”

David adds that when comparing London to Paris, “A seldomconsidered factor is that the whole world now learns English from the age of five whereas it doesn’t learn, say, French: this will always fuel demand for London since people like to be where they can communicate easily.”

Another London advocate, London Central Portfolio, has had its PR department working overtime in recent weeks, keen to point out that prime central

ADRIAN LEEDS www.adrianleeds.com info@adrianleeds.com

39

EXPERTS ADVISE London versus Paris

The “Bold and the Desperate” in battersea

DAVID ROGERS www.rocksure.com +44 (0)1993 823 783

www.opp-connect.com

London gathering was that prime and super-prime London is slow to sell right now, with too much new product hitting the market; including dozens of new residential tower blocks and the Battersea Power Station development.

Although Phase Two immediately sold over 95% of its apartments last month, Phase Three launches in the autumn with another 1,300, designed by Frank Gehry and Norman Foster.

Paris can only dream of such developments and such architects.

“Starchitects” like Renzo Piano and Richard Rogers once gave Paris the astonishing Georges Pompidou Centre, but neither has done much in Paris since, while giving London the Shard, the ‘Cheesegrater’ and One Hyde Park.

Paris is in a housing crisis too, but according to Adrian Leeds, is going all the wrong way about solving it, while severely denting her business of finding investment property for

40

PATRICIA CONNELL www.franceinlondon.com +44 (0)20 7229 3725

With estimates of 400,000 French people there, London is now, officially, one of the world’s biggest French cities. OPP took a stroll up to Battersea, where a French school has brought the French immigrants in droves.

Just a couple of stops from OPP’s London HQ, Battersea has more French shops, French accents and French newspapers hanging up outside the newsagents than ever before. You have to remind yourself that pavement cafes, lingerie shops and gorgeous cookware on every street corner are not a traditional part of the English high street. Patricia Connell runs the website FranceinLondon.com, and says: “There has been a lot more French arriving especially in the past year.” She says there are two types arriving, the bold and the desperate. The latter are “young people who can’t find jobs in France, so the minute they have a diploma they come over here because they think the economy here is going forward. Then there are the go-getters who want to start a business. It’s very hard and expensive to start a business in France, especially if you want to employ people. I would never, never have started a business in France, like I did here.”

Local estate agent Chris Lewis of Savills says the French are his largest overseas cohort. But what do they want? Modern and high tech, he says. “And no garden. The French have usually come from a large apartment in Paris.”

America, Canadian and Australian buyers: “The city has a housing shortage and so it has resurrected some old laws, [which state] that you cannot rent out a property for less than one year, unless you get change of use to commercial.

And [the authorities] are fining people, sending agents and spies out, following tourists to their apartments, it’s unbelievable what is happening here.” Why can’t they

build upwards to solve the housing crisis? “They won’t build high-rises any more because some idiot built Montparnasse Tower 40 years ago.

They are adverse to towers but they need housing, so instead they are harassing the individuals who own a rental property.”

But while Adrian’s wealthy overseas clients find it hard to rent property, at least there is plenty of prime stock to buy, as Paris’s

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EXPERTS ADVISE London versus Paris wealthy flee the 75% tax rate for millionaires: “the market has gone soft,” says Adrian. “There is a glut of properties on the market at over €2-3million because of all the millionaires who have left.

Two years ago you had to walk in and say “I’ll take it”, or the person behind you would take it at asking price. Not true any more. There is lots of negotiation going on.”

Paris Chambres de Notaires agrees. Its official data shows that the price of older-style apartments in Paris fell by 1.9% during 2013 and for houses by 1.2%. This is compared to a rise in London over the same period of around 14%.

Still, at least it’s cheaper for Paris’s youngsters to get on the ladder? Well, up to a point. On the Paris notaries’ report you will also see what you pay in taxes and fees.

To buy an older property valued at €176,000, it is an eye-watering €24,160. For London (if you could get a property at that price), around a tenth of that.

PARIS SPRING

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So, given all this, where would you buy if you were maybe an American or Russian or Chinese? “Paris, obviously,” says Adrian, “it is at the bottom of the market.” Quite so, says Hervé Lévy, Paris’s regional manager at Home Hunts: “London is far too expensive, at twice the cost of Paris. Switzerland is lovely but boring, and Paris still remains one of the best places to invest.All wealthy people want an apartment in Paris. Also, the country is secure; Paris is one of the most beautiful

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HERVÉ LÉVY www.home-hunts.com +33 (0)1 45 63 31 55

The Rue de Recovery?

225 years ago it was Frenchmen returning from the American revolution who led the French revolt. Is history repeating itself?

Cédric Naudon’s name might one day be up there with Danton and Desmoulins, as a Parisian revolutionary. The 42-year-old, who made his millions from retail, finance and real estate in New York, recently bought 45 shops in a run-down part of Paris’s Marais district and is in the process of creating La Jeune Rue (Young Street). It is a collection of bold, innovative restaurants and shops, each by a different designer and covering three streets. Since being launched earlier in 2014, it has become not just a magnet for shoppers and epicureans, but a symbol of hope for Paris demoralised entrepreneurs.

Naudon already has plans for another Jeune Rue on the Left Bank, to open in 2016. The Wall Street Journal was effusive in its praise, describing him as a ‘real estate savant’. Adrian Leeds is a fan too: “He is single-handedly gentrifying that neighbourhood, pouring €30million into it. Here is a French guy who make lots of money in the US but he wants to do something for France. We will see more of that. You can take the Frenchman out of France but you cannot take France out of the Frenchman!”

cities in the world and is renowned for its excellent hospitals, schools and universities.”

But what about the taxes and Hollande? “Our savvy investors know that President Hollande will not be re-elected and the right wing are more than likely to come back to power – whether this be Sarkozy again or another leader.

This is likely to encourage property investors back again and so it is really the time to buy; while better prices can be negotiated and there are amazing apartments and mansions on the market,” says Hervé. “Home Hunts already has quite a number of English and Russian/Ukrainian clients who own a property in London and wish to acquire an apartment in Paris. We also have quite a few clients from

the Gulf countries who want to have an apartment in Paris for the summer to shop. The Lebanese also like to invest in Paris for political reasons and because they speak French.”

Adrian says that the future is bright for a post-Hollande Paris: “All those French people that you see in London, US, Canada, they are experiencing a new world. They are young, energetic, entrepreneurial, they are making money, learning how to be capitalists and enjoying their prosperity. But they are French and they don’t want to be in London or New York. When they see an opportunity and the administration has gone, they will come back and inject French society with what they have learned.”

FEATURE Property Finders

Words | Christopher Nye

Hide and Seek!

Needle in a haystack? First customers have to decide in which haystack their dream home is hiding. Some are turning to property finders...

www.opp-connect.com

W

44

ho’s got the time to do anything these days?

Aren’t most potential clients exhausted, digitally plugged into the boss 24/7, with long commutes, guilt-ridden about kids they’re supposed to spend ‘quality time’ with and spouses for whom they must organise ‘date nights’?

Who’s got the time to look for a house abroad for heaven’s sake? And even if they do, many are terrified at the risk of getting ripped off.

Step forward the property finder The role of property finder links into relocation services, legal services, project management and logistics; but what it does not include is selling property. In the UK the

governing body is the Association of Residential Property Finders (ARPF), part of the Association of Relocation Professionals (ARP). ARP Operations Director Dominic Tidey explained

Who’s got the time to look for a house abroad? Even if they do they’re scared of being ripped off that there are strict rules about the separation of real estate companies and property finders, a five-point mandate: “No directors in common; agents can be in the same building

but not working in the same office; can’t have staff in common; there must be clarity about where the properties are being sourced from; and that a private buyer is not just seeing properties that are held on the books of the real estate company.”

CHINESE ARE COMING For many UK property finders, the bread and butter business is finding country properties for wealthy Londoners. One of the biggest UK operators is County Homesearch, with nearly 30 offices.

Carol Peett, from their West Wales office said: “Our clients tend to be people relocating to the area, or purchasing holiday homes or investment properties here. The

JULY / AUGUST 2014 the number of houses that have changed hands in the last ten years can be counted on one hand.”

SURVIVORS According to Dominic at the ARPF, the business suffered in the recession and some companies, and a rival governing body, fell by the wayside. But that hasn’t stopped new people giving it a go.

“We have an 85% core who have been members for more than 10 years. Then there is 15% that turns over. If we get three new applications in a quarter, two will probably fail.”

Dominic adds that, so far, no UKbased company has managed to make a success of property finding abroad, even in hotspots like Spain, Tuscany and the French Riviera, though he gets plenty of enquiries from the public. But that doesn’t mean that there aren’t property finders based out there.

One of Spain’s newer companies is Strategic and Buy, run by Sheena

Without a buying agent the client wouldn’t have had a shot at buying his dream house Campbell-Royle. Sheena insists she is not a property ‘finder’, but a consultant with a highly professional team of lawyers and architects. Her angle is the safe purchase of Spanish property, and with 30 years in Spain including 11 as President of the British Chamber of Commerce in Spain, she is the archetypal professional in the business. Sheena explains how Strategic & Buy operate: “We start with an opening interview, over the phone or written, or even face-toface with our British partner. There is no charge for that. When we understand exactly what property they want, where and why they want it, we tell them how much this will cost. Then we ask them to pay 50% [of our fee] up front. We have a commercial team who go and find

HNWI OR ‘NORMAL’ people?

In the UK, property finders work primarily in the higher price levels, says Dominic: “It’s all high net worth individuals (HNWIs). No company has ever been able to make it swing for normal buyers with ordinary budgets… At prices in the southeast, unless you are spending £2million+, it is probably not worth it, but it depends on your needs.”

Stephen Wolfenden of County Homesearch doesn’t agree: “They are not all HNWIs. Many different people use our services. Most of my clients in the last year were simply moving to new areas where they had no knowledge of the market.

Most had a budget between £500k and £1m.”

In much of Spain, even that would be regarded as a pretty good budget. A long-established property finder with offices on all the most popular costas is The Property Finders. Founder, Rita Fryer, says: “It is always a saving for someone to use a property finder. Apart from the fact that we are very good negotiators, we save people huge amounts of time and wasted trips. This alone often totals more than our finder’s fee.” Their fees are an initial non-refundable €900, then 2.5% of the price paid for the property. Rita points out: “As obtaining finance for a second

www.opp-connect.com

majority of these are from the UK...

However, we have also seen clients from Canada, US, South Africa, Switzerland and Australia. I believe we will see enquiries coming from China soon as the Chinese are starting to buy in South Wales.”

The advantages of having a representative on the ground in a rising market like the UK are obvious. Andreas Bonney, County Homesearch’s Director in East Anglia, said: “One of my recent clients was based in Japan and struggled to get to Cambridge quickly enough when a suitable property became available. For him it was less about saving money – although I did manage to negotiate the price down on the property he bought – but more about saving time, wasted journeys and having someone acting quickly on his behalf when the right property came up. Without a buying agent he simply wouldn’t have had a shot at buying his family’s dream house as it never came to the open market. As it turned out, we were the first and only people to make it through the door on a street where

the properties, but we are very well connected ourselves; we know a lot of estate agents. When we have pinpointed the best, we go and look at each property; where it is, what is near it and what is not near, we go and suss that out. When we can offer four properties that come into what we feel they would like, we send videos, give the lowdown on where it is, who lives there, whatever they want… is there a tennis court nearby? The client then chooses two and we investigate these two, checking they are debtfree at the land registry, the usage (because buying properties not listed for residential use is a big, big problem), whether it is listed and all that. We go to the town hall to see the urban plans going forward.

Then the client comes out to view.

Of course they can come before.”

45

FEATURE Property Finders home is now virtually impossible, our clients are people that do not need mortgages.”

What is absolutely verboten, although Dominic admits that it probably goes on, is taking a commission or referral fee from the estate agent. “That would mean instant dismissal from the ARPF,” he says. “It breaks all of the rules about not working as an estate agent.”

Stephen Wolfenden confirms: “We only get fees from the buyer. At The County Homesearch Company we pride ourselves on giving genuinely impartial and independent advice to our clients. There would be a clear conflict if my commission was shared with the seller or their agent.”

Success on a plate: property finders can take the pain out of property

WHY PAY? But why would clients pay fees now anyway – can’t they just sift through hundreds of properties via a property portal in minutes?

All the property finders OPP spoke to were unimpressed with portals.

If anything they set their stall out as being the anti-portal: “Buying agents nearly always hear about the best properties before they hit the internet. It is often too late once a property has been advertised,”

www.opp-connect.com

If anything, the property finders we spoke to set their stall out as being the “anti-portal”

46

says Stephen Wolfenden. “Property portals are not a threat to us,” says his colleague Carol Peett: “Many of my clients come to me having been searching for themselves without success for several years using property portals and I manage to find them exactly what they want almost immediately. This is due to the fact that many of the best properties never come to market.”

In Spain, Sheena at Strategic & Buy says: “Portals have basic information and pictures. So you still have to come and see the house at the outset. Say you pick

10 houses, they may not be in the same place or with the same agent; that could be a hell of a lot of work.”

This relationship with the estate agents is all-important, says Dominic: “The good, established private buyers have fantastic relationships with the real estate suppliers because they are giving them enormous amounts of work.

So they will hear before anybody else that such and such place is about to come up for sale, and it is a roof terrace apartment that hasn’t been on sale for 25 years but they have it on good authority that they are going to get it, etc.”

The job now, says Dominic, is to professionalise the role of property finder and relocation consultant.

The typical entrant to the profession, sexist as it may sound to say so, says Dominic, is “the wives of expats, who have language skills, who know what the relocation process is about. The best

companies have often been started by women who have been on the end of the relocation process and have said ‘you know what, I can do this better than them!’”

His aim is to get them to a higher level of professionalism.

For example, he says, “any consultant out on the road with families should be checked for criminal records, be completely compliant with signing anti-money laundering legislation, make sure they are registered with the property ombudsman. What started as a nice little industry for showing people round houses has become quite a big corporate industry and if you are lucky enough to be Microsoft’s preferred vendor for relocation services in London you really have to be professional.”

Sheena of Strategic & Buy says: “I have a lot of confidence in what we are doing. I am hopeful we can build it up and it will be a good offer for people who want to buy in Spain.”

ARPF: www.arpf-propertyfinders.co.uk ARP: www.arp-relocation.com County Homesearch: www.county-homesearch.co.uk Strategic & Buy: www.strategicandbuy.com The Property Finders: www.thepropertyfinders.com

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BUSINESS High Concept

Agent with an iPad

In the first of a continuing series, High Concept, we speak to people in our industry with a bold new idea THIS MONTH: BECKETT HANLON FRANCHISE THE Elevator pitch We offer a five-year franchise, giving our partners extensive training into how to sell international property effectively, from an iPad, anywhere in the world.

Who is your perfect consultant?

They must have an entrepreneurial attitude and be willing to listen and learn. They should have a strong existing client network, but not necessarily as an agent - they could an event organiser, a retailer, a financial adviser, whatever.

How DO YOU CHOOSE CONSULTANTS? We pride ourselves on our strict vetting process. We insist on meeting the potential consultant’s family and have rigorous testing to make sure that this is the right decision for them.

How does it work?

The model has a variety of entry points beginning at £10,000. Firstly you get a week of intensive training. Then for six months you get all of the love, attention and knowledge that you need to sell property. We go out to the field with you, give you an online community, a CRM system, continuous telephone support... we give you the skills and knowledge to be self-sufficient for life. You’ll know how to fish, rather than us feeding you fish!

What can I earn?

At the top of the property boom Drew was selling two or three properties per month. The average price of our property is €200,000, with an average commission of €10,000. We split that, 50% to our partners, 40% to us, and 10% to marketing and developing the brand. So that would be €5,000 per month if you were selling one property. Plus, there are additional revenue streams because we are offering a full turn-key solution which includes currency exchange, legal fees, mortgage, car hire and the interior design, which adds more commission on top.

How is this different to being an agent?

We view estate agents as being reactive and localised – whereas we are proactive, borderless consultants. The difference is that a consultant really gets to know the customer and gives them what they want.

Where are the properties?

All over the world. Consultants are trained to ensure that the property that we sell to our customers is always the right decision. Our selling techniques and training are based around referrals and networks. It is a handholding, turn-key solution: we take the stress and potential mistakes out of buying a property abroad.

Where did you get the idea?

What are your targets?

We launched in September and already have our first four franchise partners. We aim to have 300 in the next five years.

Okay, I’m interested, where next?

See further details at www.becketthanlon.com

www.opp-connect.com

Drew Beckett spent years in the life insurance business, winning The Million Dollar Round Table twice. He retired at 52, but then someone tried to sell him a property and he thought “I can do better than that”. He applied the knowledge and training from life insurance to international property, with great success.

49

COUNTRY REPORT Indonesia

Indonesia Could it be the next Thailand, or even Balearics?

I

ndonesia is a nation to watch.

The world’s fourth most populous and 7th largest by land/sea mass, stretches more than 5,000 miles almost from Australia all the way west, past Singapore to the Andaman Sea, straddling the equator. There are 6,000 inhabited islands and over 300 languages.

If you wonder how it all came to be one country, the answer lies in the Dutch East India Company, who ruled from around 1600, only becoming one country at the

start of the 20th century. After occupation by the Japanese in World War Two, the independence movement forced the Dutch out by 1949. From then until the late 1990s it was ruled by authoritarian military leaders, but since 1999 it has been a democracy. Its problems include, several separatist movements, some of which have been violent, such as in Aceh and Papua, corruption, climate change (both stopping causing it and avoiding suffering from it)

and financial reforms to improve business performance. Set against this is a bright potential future as an economic powerhouse and tourist destination. Economically, it is an emerging “MINT” nation with 5.3% growth in 2013, in the G20, and fiscally conservative.

With a coastline almost as long as all of Europe’s, and much warmer, Indonesia has huge potential. At present it has fewer than a third of Thailand’s tourism, but may profit from that country’s political woes.

GEOGRAPHY INDONESIA Medan

www.opp-connect.com

Ternate

50

Sulawwesi Padang JAKARTA

Ambon Makassar Surabava Timor

Area: 1.9million square kilometres Similar to: Mexico, Sudan Coastline: 54,700km Highest point: Puncak Jaya at 4,884m Capital: Jakarta, population 9.5m Other cities: Surabaya, Bandung, Bekasi, Medan and Tangerang, all 2-3m.

Climate: Being on the equator it is humid and hot (25-30ºC) all year.

The best tourist time, marginally, is the dry season, April to October.

Looks like: Lush, green, jungly, with plenty of sandy beaches.

JULY / AUGUST 2014

THE ECONOMY GDP: US$1.285 trillion (5.3% growth rate in 2013) GNI per capita: US$2,940 Inflation: 7.7% Tax as % of GDP: 15.8 Currency: rupiah (Rp)

Corruptions Perceptions Index: 106 of 177 countries

Human Development Index:

EXCHANGE RATES:

121 of 187 countries EASE OF DOING BUSINESS INDEX: 120 of 189 countries Starting a business

175

Dealing with construction permits

88

US$1

11,823 IDR

Registering property

101

GB£1

20,069 IDR

Trading across borders

54

EU€1

16,028 IDR

Enforcing contracts

147

AU$1

11,092 IDR

Getting credit

144

INR1

196 IDR

Protecting investors

52

CNY1

1,898 IDR

PEOPLE Population: 243 million Urban population: 57% Population density: 127per km2 Average age: 29 Ages: 0-15= 27% , over 60 = 9% Life expectancy: 70

Religion: 87% Muslim, 10% Christian, 2% Hindu Politics: A democratic republic, the first presidential election was in 2004. Current President Yudhoyono is being replaced following the next election on 9 July this year.

www.opp-connect.com

Languages: Indonesian, plus 300 others!

51

COUNTRY REPORT Indonesia

Foreign Tourism Total international arrivals: 2012: 8 million, 2007: 5 million, 2000: 5 million.

Average stay: 12 days (2012) Tourism is one of Indonesia’s top sources of foreign revenue, making around 9% of GDP. The main tourist destinations are towards the centre of the archipelago, to: Bali, Java, Jakarta, Sumatra, Lampung and Sulawesi.

WHERE INDONESIA’S TOURISTS COME FROM (2012)

SINGAPORE: 1.56 MILLION MALAYSIA: 1.33 MILLION AUSTRALIA: 0.96 MILLION CHINA: 0.68 MILLION

US

JAPAN: 0.45 MILLION

0.21 MILLION

SOUTH KOREA: 0.31 MILLION PHILIPPINES: 0.23 MILLION

SINGAPORE 1.56 MILLION

TAIWAN: 0.21 MILLION UK: 0.21 MILLION US: 0.21 MILLION

Also France, Netherlands, Germany, India, Thailand each 0.1–0.2million

TRAVEL TIMES Jakarta is the main transportation hub, but many tourists fly straight into Bali, which is two hours flying time east of Jakarta.

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FLIGHT TIME TO BALI FROM:

52

Singapore

2.5 hours

Sydney

5.5 hours

Hong Kong

5.5 hours

Beijing

6.5 hours

Delhi

7 hours

Auckland

8 hours

Dubai

9 hours

Moscow

12 hours

London

15 hours

Paris

15 hours

Vancouver

16 hours

Rio de Janeiro

19.5 hours

New York

20 hours

AUSTRALIA 0.96 MILLION

JULY / AUGUST 2014

Residential MARKET Portals:

Exhibitions:

Rumah123.com (owned by iProperty) Rumah.com (owned by Property Guru) RumahDijual.com Propertykita.com

RICS ASEAN Real estate and construction summit (ricsasia.org) Jakarta International Expo (jiexpo.com) REI Expo (debindo.com)

Professional organisations:

Useful websites:

Real Estate Indonesia (www.rei.or.id) Asia Pacific Real Estate Association (www.aprea.asia)

www.kaskus.co.id www.expat.or.id

Residential Property Facts Residential property statistics Jakarta apartments

Bali

Villas

To buy, per square metre (US$)

2,620

2,082

To rent per month per square metre (US$)

17

7.5

Yield

7.9%

5.89%

Roundtrip buying costs

14.7%

14.7%

Landlord and tenant law

neutral

neutral

Source: www.globalpropertyguide.com

Property developments Bali real estate has been rapidly developing. Most recently, five-star projects are under development on the Bukit peninsula, on the south side of the island. Million dollar villas are being developed along the cliff sides of south Bali, commanding panoramic ocean views. Foreign and domestic (many Jakarta individuals and companies are fairly active) investment into other areas of the island also continues to grow. Land prices, despite the worldwide economic crisis, have remained stable.

Bali: Sea Sentoza Award-winning Sea Sentoza is on Echo Beach, in Canggu on Bali’s west coast. It features vertical gardens and a beachfront location. They won best apartment at the International Property Awards.

www.opp-connect.com

Bali: The Residence, Seminyak The swishest new development on one of Bali’s best beaches and most cosmopolitan areas, just north of the airport at Kuta. The properties start at around US$350,000 and feature private pools.

53

COUNTRY REPORT Indonesia

Residential real estate

Colliers are particularly active in Indonesia. According to their Q1, 2014 report: “The strong sales performance of under-construction apartment projects continued to trigger increases in the average asking price to IDR24.4 million/m2 or a 2.5% increase q-o-q. The CBD fetched the highest average price at IDR38.3 million/m2, an increase of 5.8% q-o-q while the average price in South Jakarta was registered at IDR26.7 million/m2, which grew by 3.2% from the last quarter. Not only price, but the average gross rental rate of apartments for lease located in the CBD and South Jakarta also trended upward by 3.4% compared to the previous quarter in anticipation of the increase in the operational costs and was recorded at USD26.56/m2/month.”

The report identified 14 newly launched apartment complexes with a total in excess of 5,000 units and asking prices from IDR14m to IDR50m per square metre.

www.opp-connect.com

The Islands

54

A letter from Gabriele Frunzi, www.bestpropertiesinbali.com “Money moves very, very quickly here. On Sunday, I had one client who had only seen outside one villa, on the beach, $3million, and on Monday he wanted to buy. He didn’t want to see the papers, he just said “it’s all okay, come to the notary, bye”. People come here for the lifestyle. My neighbour is a famous travel blogger – couldn’t afford to live in the UK, moved here and has several businesses, plus a boat and enjoys life. We have great international schools, low income tax, a ‘rudimentary’ justice system that keeps us free of drugs and prostitution. How far would a pension of €1,000 get you in Europe? Not far.

Here, with that you can be at the spa all day and eat out every night.

Prices have gone up every year since 1998. The real estate boom began in the south, from Kuta, and goes further north year by year. Now the boom is around the Canggu area and Tanah Lot. You could buy a nice villa here on one are*, with a micropool, for around IDR2bn (€120,000). Land is about IDR450500,000 per are, or nearer IDR1bn by the beach.

The big news is the announcement of a new northern airport in Bali, near Singaraja and Lovina. This will be a popular area – in Lovina you just dip a finger in the water and the dolphins come to say hello!

Beyond Bali, more people are now investing in the nearby islands of Lombok, Flores, Sumbawa, and the Gili island, Raja Ampat and in Sulawesi.

We are seeing far more foreign buyers, from all over Europe, Asia and Arabia and there have been marked increases in numbers from Singapore, London, the Netherlands, Switzerland, Dubai, Muscat and Israel. I think we are getting more people who used to buy in Thailand. It isn’t just Thailand’s political problems – when you compare Bali with Phuket we are less expensive and more family-orientated. You will pay a bit more as a ‘boule’ [slang for foreigner], for example around €1,000 extra for a building licence. *Need to know: In Indonesia land measurements are in ares. One ‘are’ is 10metres by 10metres, i.e. 100m2, or one tenth of a hectare.

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As the world’s largest consumer of oil, the USA is incredibly fortunate to have discovered one of the largest oilfields ever, known as the Bakken Formation Region in North Dakota.

This is causing waves across the USA as engineers, oil workers, and laborers flood to the area in search of jobs and opportunities. This is where North Dakota Developments come in with our oil industry specific accommodation solution.

North Dakota Developments have launched our allocation of Superior Rooms at our Great American Lodge Watford East site. Our affiliates have seen a huge interest from global investors, so why not get involved.

The Watford East site is one of our most advanced sites to date and offers the oil and service workers with a ‘home away from home’ accommodation solution. The Superior Room boasts high quality, generous living space accompanied with a private wet room, kitchenette and work/desk area.

Couple this with the social aspect of our onsite amenities and facilities, it’s no wonder we predict occupancy rates to exceed 90%.

North Dakota Developments

FX REPORT New Zealand Dollar Words | Charles Purdy, Director of Smart Currency

New Zealand Dollar N

ew Zealand had two major advantages going into the financial crisis; the first, a banking system not in total disrepair. Although over extended this was not to the same extent as the banks of the UK, US and Eurozone. The second advantage was that it was a key suppler of dairy products to China.

The dependency of China on New Zealand dairy products should not be underestimated. It is a very significant support for the New Zealand economy. Australia and Canada have seen their economies boosted over the last 15 years by China’s insatiable desire/need for their “hard” commodities such as iron ore. But this demand is finite, whereas the demand for the dairy products will go on for ever and a day. It has also seen a lot of inward investment, especially from China as they try to “protect” the supply of dairy products.

Earlier this month, New Zealand

NZD per AUD

increased interest rates for the third time this year. So even though sterling has been one of the best currency performers over the last 12 months, sterling has only seen a small appreciation against the New Zealand dollar and has had great difficulty in breaking above the 2 to 1 level against the NZ dollar.

Against the US dollar the New Zealand dollar has continued to appreciate, staying close to the 1.15/1.20 level. We have also seen over the last 18 months appreciation against the Australian dollar as markets recognise the disparity between Chinas

dependency on soft and hard commodities. In fact its fast approaching parity as it hover around the 1.05 level.

Therefore it is difficult to see any sustained weakness for the New Zealand dollar given an environment of increasing interest rates and dairy demand from China, resulting in a buoyant and robust economy. Longer term this continues to make it a country for either moving to – we would suggest renting first unless you know the country well – or investing in property, as the economic fundamentals are so strong.

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

NZD per CNY

NZD per USD www.opp-connect.com

57

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Whilst all eyes are on brazil during the world cup, ecohouse group are helping the people of brazil in another way. We build homes under the government-backed initiative minha casa, minha vida (my house, my life), where demand far outweighs supply, helping families move from the notorious favelas into their first homes. Monte Alegre is the latest project from ecohouse, featuring 500 secure gated, high quality homes, not seen in social housing before, with great onsite amenities.

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EVENTS Preview

Where will you be?

Real estate events of summer/autumn 2014 Real Estate Connect

HILTON, SAN FRANCISCO

industry-related backgrounds. A consumer-based free seminar programme focuses on national markets and applicable law. Fair Media will also be running a show in Malmo from 27-28 September. www.fairmedia.se

Beijing International Property Expo 16-21 sept

Real Estate Connect is where real estate and technology converge, where thousands of leaders gather to explore current trends and technology, network and make deals to grow their business and shape the future of the industry.

The event is organised by the Inman News Group. The event is expecting over 2,000 industry leaders, over 100 speakers and “the best and the brightest in real estate technology”. Past events have been entertaining, useful and often surprising. www.inman.com/connect/real-estate-connectsf-2014

16-18 JULY

Convencao Secovi SAO PAULO, BRAZIL 27-12 The five-day Convencao Secovi 2014, in Sao Paulo, Brazil, features industry networking, AUG SEPT presentations, workshops, property showcase and tours; capped off with the annual Master Imobiliario awards on Monday 1 September. The four day conference, which includes presentations about the Brazilian and international real estate market, an international urban forum and tour of real estate projects, takes place in São Paulo and is organized by Secovi. The award ceremony is held on the final day of the exhibition. www.semanaimobiliaria.com

Buying Properties Abroad Expo

Second Home International Belgium

BRUSSELS EXPO 26-27 The Second Home International shows focus on the over-40s market, usually dualSEPT income families with grownup children.

Although, as the name suggests, they mainly tap into the second home market, the organizers have also started looking more to permanent emigrants and investors. The traditional markets of France, Spain, Italy, Portugal and Turkey did well – as expected – last year and it’s likely that Spain in particular will excel this autumn as exhibitors gear up to showcase discount properties. The United States has also seen a rise in interest from Belgian buyers and it will be interesting to see whether that trend continues this year. www.secondhome-expo.be

www.opp-connect.com

KISTA EXPO CENTER 06-07 Fair Media have been running Stockholm international property exhibitions since 2003, SEPT when they attracted a relatively small audience of 1,500, which nevertheless proved a success for the 14 exhibitors. Since then, demand for foreign property from the Swedish market has flourished, and now the show attracts exhibitors from around 20 countries and is expected to receive around 4,100 visitors this year. Exhibitors come from agent, developer and other

BEIJING EXHIBITION CENTER The Beijing International Property Expo is the biggest international property event in north China, according to the organizers. They target wealthy Chinese investors, offering up real estate, land and immigration investment projects. As the website points out, there are currently around 180,000 millionaires in China – and OPPs have started tapping into the market more and more. The show will take up 3,000sqm, with 100-120 exhibitors and an expected total of 35,000 visitors, of which 5,000 will be invitation-only Very High Net Worth Individuals. www.beijingexhibition.com

59

EVENTS Preview

Event previews Looking a little further ahead...

Moscow International Property Show Where: Tishinka Exhibition Centre When: 14-15 November The Moscow International Property Show is Russia’s longest-running real estate exhibition. Launched in 2003, the exhibition attracts developers and estate agents from over 35 countries including Spain, Greece, Bulgaria, Thailand, Germany, Cyprus, France, United Kingdom, Montenegro, Turkey and the Czech Republic. The Spring show, in April, saw over 8,000 visitors and the Autumn show is likely to see 200+ exhibitors.

Kim Waddoup, CEO at aiGroup, organisers of the exhibition, said: “While many developers take part in shows all over the world, promoting real estate in Russia is a totally different experience. It requires careful planning as investors here are spending, but with caution. They like to get to know a company first before handing over any funds.”

International property show organizers have said that the political unrest in Russia hasn’t stifled demand.

Mr Waddoup told OPP Connect, “Whilst this Crimea situation may seem quite worrying around the world as

www.opp-connect.com

MIPIM Asia

60

Where: Grand Hyatt Hotel, Hong Kong When: 2-3 December The MIPIM Asia Property Leaders Summit is a central networking point for international property professionals working in Asia pacific. Though the show focuses largely on commercial fare, there will certainly be experts in the residential field and seminars that span the industry in usefulness.

This year’s event will see 30 sessions, including “Impact of government regulations on real estate investment: Singapore, Mainland China, Hong Kong” and “Hotel & leisure Asia Pacific: where are the best opportunities?” led by 90+ speakers and keynotes. The organisers promise “solid perspectives on investment flows, property development and real estate in Asia Pacific”.

Meanwhile, from a networking perspective, over 800 CEOs and top executives are expected to attend the show, as well as 400+ investors and retailers. MIPIM will organize social events, “topical luncheons” and project showcases.

Finally, the MIPIM Asia Awards’ gala dinner will be held on December 2, which will be attended by 300

Blue skies in Moscow for the 2013 show well as in Russia, it actually has not affected business in any negative form to date… the principal of buying property abroad is now firmly established in Russia and those specialising in this market will continue to reap the benefits despite the challenges.” www.internationalproperty.ru

A speaker at MIPIM Asia 2013

influential real estate professionals. Categories include best residential development and most innovative green building.

If you register before September 5, you’ll pay $1,040 for a ticket. Applying for the awards costs $450, plus another $2,450 if you’re shortlisted. www.mipim-asia.com

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■■■ Overseas Properties Investment Centre ●Agent acquisition ●Company set up ●Government connections ●Media planning and buying ●Investment promotion both online and offline ●Seminar arrangement ●Staff recruitment ●and fully equipped office away from the office English Version: www.ChinaBN.org/OPIC

CBD CB 国贸站 国 贸站 Guomao Station Station

路

CHA OYA NG

中央电视台 CCTV 光华路

ROA D

GUANGHUA ROAD 温特莱酒店 WINTERLESS HOTEL

万达索菲特大饭店 WANDA SOFITEL

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OIC

Overseas Investment Centre

蓝堡国际中心 BLUE CASTLE INTEN'L CENTER

地铁1号线 Metro Line 1

建国门外大街 JIANGUOMENWAI AVENUE

建 国 路 JIANGUO ROAD

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丽思卡尔顿酒店 RITZ-CARLTON HOTEL

JW万豪酒店 JW MARRIOTT HOTEL

新光天地 SHIN KONG PLACE 华贸中心 CHINA CENTRAL PLACE 地铁1号线 Metro Line 1

大望路站 Dawanglu Station

SOHO现代城 S SO O O 代 代城 城 SOHO NEW TOWN 招商局大厦 CHINA MERCHANTS MANSION RTH ROAD HUIHE NO 路 TONG 通惠河北

■■■ Contact Us CBN Beijing Office Add: Overseas Investment Centre 2710 Blue Castle International Center, 3 Xidawang Road, CBD, Beijing, P.R. China Tel: +86 (0)10 65816691 Fax: +86 (0)10 65836205 Email: Beijing@ChinaBN.org

CBN Shanghai Office Add: Suite 306 Fortune Times Tower No. 1438 Shan Xi Bei Road Putuo District Shanghai, P.R. China Tel: +86 (0)21 62275460 Fax: +86 (0)21 62275461 Email: Shanghai@ChinaBN.org

CBN Guilin Office Add: 6th Floor, Sancgem Center No. 33 Canluan Road, Qixing District Guilin, P.R. China Tel: +86 (0)773 3116618 Fax: +86 (0)773 3116619 Email: Service@ChinaBN.org

CBN London Office Add: 5-6 Ensign House Admirals Way London, E14 9XQ United Kingdom Tel: +44 (0)207 5363 888 Fax: +44 (0)207 9873 888 Email: London@ChinaBN.org

东 四 环 路 EAST 4RD RING ROAD

中国大饭店 CHINA WORLD HOTEL 国贸中心 WORLD TRADE CENTRE

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●Professionally translating, creatively designing and implementing a comprehensive web site or a number of web pages in Chinese and maintaining the Chinese web pages on the China Wide Web. ●Email your Chinese information with our recommendation to potential investors, senior officials of relevant authorities in China and key business decision-makers ●Providing your potential customers with direct access to your Chinese web pages via clearly categorized destination and section headings. ●Indexing and meta-tagging key words related to your destination and projects in Chinese search engines and throughout the China Wide Web. ●Supporting you in attending relevant exhibitions by setting up the stands and producing necessary collaterals in Chinese fairs or representing you to promote your projects ●Translating qualified enquiries and furthering business contacts with interested investors ●Facilitating buying trips and supporting investors in dealing with developers ●Nothing is too small for us; we will even design and print your Chinese brochures and bilingual business cards professionally in China to save unnecessary printing and postage cost.

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NEWS OPPLive China

OPP goes to China.

China comes to OPP. Property professionals come together in Beijing to discover profitable new partnerships

C

hina. A word on everyone’s lips. Including many agents, developers and others in the international property industry. It’s no wonder, really.

We are constantly told how fantastic is the Chinese market and how large are the fortunes to be made there. Yet we also hear from many sources within and without the international property industry how complicated and challenging it is to deal with the Chinese.

The facts about the Chinese market speak for themselves and can hardly be overlooked. There is an avalanche of news stories reminding us how China will become the world’s largest economy within the next couple of years, how – within the same timeframe – China will have the largest accumulated mountain of wealth, how the

This is your costeffective opportunity in three days to decide if China will work for you

Step forward OPP with OPPLive China.

This is your cost-effective opportunity in just three short days to decide whether China will work for you. As an exhibitor at OPPLive China, to be held in Beijing on 2627 October 2014, you will have the opportunity to meet hundreds of Chinese agents who want to do business with you. Better still, you will be able to discuss your properties and your possible business relationship through translators arranged through OPP. So you will know that your message is getting through.

To make sure that you do not waste any valuable time during the event and that you get the best out of the show and that you are prepared for the cultural, business and logistical obstacles that, for the unwary, can get in the way of smooth progress in China, OPP is arranging a short programme of seminars for the exhibitors on the day before the show.

The local Chinese delegates attending OPPLive will also be entertained and informed by a programme of seminars designed to give them a lot of

JOHN HOWELL: The Clear Path Company Tel: +44 (0)20 3004 9113 factual knowledge about what is happening in our industry and the world of international property, and to understand how best to work with their international colleagues.

Also during the show, there will be an opportunity for all exhibitors to present their project or service to the local Chinese audience. This will allow you to get your message across to many people at the same time and help filter those with whom you spend time talking on your stand. To make sure that the message is received loud and clear, what you say will be simultaneously translated into Mandarin.

In short, if you’re serious about wanting to do business in China, OPPLive China 2014 is where you need to be.

For more information on visiting or exhibiting at OPPLive China 2014: Go online at www.oppconnect.com/opplive-china Email Naomi.Zammit@oppconnect.com Call +44 (0) 0203 540 2231

www.opp-connect.com

Chinese now make up 10% of all the world’s tourists and spend way more per capita than the average and how the Chinese love buying property abroad.

OPP has run several tours to and events in China and we have seen for ourselves the huge appetite of Chinese agents desperate to learn about international property opportunities and to become part of our industry. Their desire to join us is not surprising when you

remember that the average annual salary in China is less than £5,000, so the commission on one modest sale can be the equivalent of several years’ hard work.

So agents in China want to sell international property, but don’t know how to source property overseas. Meanwhile, agents and developers overseas want to offer their properties for sale in China but don’t know how to find – and work with – agents in China.

63

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MORTGAGES Malta

Mortgages in Malta Can a foreigner obtain a mortgage in Malta?

Type of mortgage

Available

Interest rates from

Max LTV

Lending

Maximum term (Years)

Maximum age at repayment

Repayment

Yes

3.77%

80 %

Any loan size considered

40 years

65

Yes

5.7 %

80 %

Any loan size considered

40 years

65

Yes

3.77%

80 %

Any loan size considered

40 years

65

Yes

5.7 %

80 %

Any loan size considered

40 years

65

Yes

3.77%

60 %

Any loan size considered

6 years

65

Purchase

Yes

3.77%

80 %

Any loan size considered

40 years

65

Remortgage

Yes

3.77%

80 %

Any loan size considered

40 years

65

Equity Release

No

N/A

N/A

N/A

N/A

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

Fixed Interest Variable Interest Hybrid (part fixed, part variable) Interest only

What are the lending criteria?

This depends on the individual mortgage provider, however typical lender requirements for Maltese mortgages can be found below: Affordability requirements: Mortgage payments must not exceed 25% - 35% of the applicant’s gross monthly income. Employment History: Minimum 6 months required. Self Employed History: Minimum 24 months required. Regions accepted: All regions considered. Property types accepted: Most urban properties but not rustic. Applicants accepted: Individuals, Local Companies, Offshore Companies and UK Ltd Companies. All nationalities considered except those affected by international sanctions.

Further information

Currency options for mortgage payments: Euros only.

Mortgage lenders will often insist that you take out a life insurance policy with them.

Some lenders will require you to open up a bank account with them in order to make mortgage payments.

The purchase of property in Malta by non-residents is regulated by legislation. This legislation allows nonresidents to purchase only one residential property in Malta and Gozo. Non-residents will be required to obtain a permit in order to acquire property for second residence purposes.

Securing a mortgage offer can typically take between 5 to 6 weeks.

www.opp-connect.com/ category/data-and-reports

www.opp-connect.com

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:

65

THE OPP INTERVIEW Jon Huntsman

Property Frontiersman

Jon Huntsman Snr has given away $1.4billion.

He tells Christopher Nye about charity and his new family resort in the American West

www.opp-connect.com

J

66

on Huntsman has the slow drawl, impeccable manners and generosity of spirit of America’s mid-west. But looking back at my interview notes, what stands out most are big numbers and big names. Names like Bill Gates and Warren Buffet, personal friends of Jon in a small club of Americans who have given away more than a billion dollars. Or names like President Nixon, who Jon worked for, Dick Cheney who is his neighbour in Idaho, or Margaret Thatcher, an old mate who liked to stay with him.

And the numbers? The ones that Jon Huntsman (aged 76) likes to quote most are his nine kids and 56 grandchildren, the son who stood for President in 2012 and may well

run again in 2016, and the millions of people who will enjoy a longer and happier life because of the cancer treatments he has financed.

Family values All very laudable. But why is he in OPP magazine? Because Jon Huntsman has planned, designed and built a brand new vacation resort, and all the profits will go to his cancer charity. But he is not just trying to save lives. He is on a mission to restore the family values that he learned himself, growing up dirt poor in this very valley during the Great Depression.

“Family values have taken a huge nosedive all over the world,” says Jon Huntsman, when we meet in his hotel suite in London. “I don’t know

if we have ever, in the history of the world, seen families so disunited.

With the internet, iPhones, video games… millions of families want a break from that, they want to spend time together and communicate. So we try to do everything we can to make this a great family occasion.”

I suggest Jon is trying to create Walton’s Mountain in the Teton Valley – but it looks as though Jon was busy making his millions (sorry, billions) while I was watching The Waltons. Jon Huntsman grew up in Idaho, and was given the money to go East and study at the prestigious Wharton Business School. His first business was eggs, which led into egg packaging, which led in 1974 to him making a lot of money when he invented the polystyrene

JULY / AUGUST 2014

Age: 76 Born: Idaho, USA Lives in: Salt Lake City, Utah Education: Wharton School, Pennsylvania MBA from USC Marshall School of Business Wealth: $1.2 billion (Forbes) Career: Dolco Packaging, Huntsman Container Corporation, Huntsman Chemical Corporation Books: Winners Never Cheat

‘clamshell’ boxes that you get your McDonalds burger in. His chemical and packaging company, via many global acquisitions, became The Huntsman Corporation. Now run by one of the many junior Huntsmans, it had revenues of $13billion in 2013, while Jon Senior focuses on the Huntsman Cancer Institute (HCI). “It’s the largest cancer centre in the world,” says Jon. “This is what’s really important to me. My heart and soul is in it.”

“The beauty and the serenity of the Teton Valley, it’s an addiction of sorts.

It’s the nicest place.” better than the Four Seasons.”

They are also making an effort to attract international buyers and are looking for agents and brokers abroad. “We have embarked on an international marketing program just within the last couple of months,” says Williston ‘Bill’ Clover of Panorama International, who we met with Mr Huntsman. He continued: “Primarily England,

Executive Chairma n & Founder

www.huntsmanspri ngs.com jon@huntsman.com

Germany and Latin America, where enormous numbers of people are looking for investment in the US.” There are around 650 homes at present. Park homes are in the heart of the resort and start from $749,000. Mountain View Lodges of 3,400 square foot interiors start at $1.39million. There are also custom home sites on plots from 0.35 to 0.79 acres. Huntsman is at pains to point out that the prices are half what you would pay in nearby resorts, and he is proud of that: “We priced our homes and membership at a very moderate range. You can go there without feeling you have to suffer any great hardship. I want grandpa and grandma to come with the grand-kids, and no-one won’t be there because they can’t afford it.”

The billionaires’ club Jon has long been into philanthropy. As a Mormon he tithes 10% of his income, but goes way beyond that. “Bill Gates and Warren Buffet, two friends of mine, put together a little group of billionaires, 45 of us, to give 50% of what we have to charity. Adds up to $600bn. I said: why do you need 50% of $10bn? Why not 80% to really give people release from their problems and their heartaches.

But Warren said, let’s get them to 50 or even 5% first, because even that’s quite rare. I’ve given around 5,000 scholarships to kids who would never ordinarily be able to go to college. A Jewish family sent me to college, and I never would have made it without them. I’m a Mormon guy, but they didn’t ask me my religion, and I have tried to repay that thousands of times over.”

www.opp-connect.com

Good business, good deeds All of the profits from the resort, Huntsman Springs, goes to the HCI, but don’t think this is some sort of lame charity case. It is developing into a 5-star-plus resort. “To me, it’s a wonderland,” says Jon. “The beauty and the serenity of the Teton Valley, it’s an addiction of sorts. I’ve been travelling for 50 years, and this is just the nicest place to go.” The nuts and bolts of Huntsman Springs are: It’s a 1,350acre (546 hectares) golf resort, 40 minutes’ drive from Jackson Hole, Wyoming, near Yellowstone Park. The main attractions are

the wildlife, including elk, moose and a herd of white buffalo, which you can see from the longest boardwalk in the world – raised 5 feet above the ground, 5 feet wide and 2 miles long (it will eventually be 12 miles long). The resort’s 72-par golf course, designed by David McLay Kidd, was rated by Golfweek magazine as the third best residential course in America.

There is world class skiing, hiking and mountaineering, and fly-fishing in the Snake River.

Although the resort has been open since 2009, development is continuing fast, with a spa, pools and wellness centre opening this year. Jon Huntsman adds: “We are putting in a wonderful product now; villas right out on the golf course, building Huntsman lodge and village with shops and an iconic 5-star-plus hotel which will really be

Jon Huntsman Sn r

67

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Partner with us and get the opportunity to offer your clients great European properties.

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We are a leading market resource which offers prestigious and quality properties. We help you, the agent, find and sell properties in any of Europe’s prime locations. With a secure and trusted network of real estate agents, developers and property sourcing agents, we are dedicated to finding the finest property in the right area with the maximum investment return opportunities.

Why become a Redfern Smith & Partners agent? l Good commission scheme l Work within geographical limits (Far East, Europe, Russia and the Middle East) l Receive a percentage of the sales commission for each transaction l Flexible schedule

LATIN AMERICA BUYING MARKET 2014

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69

LATIN AMERICA BUYING MARKET 2014

Compare and contrast

www.opp-connect.com

How do the main buyers’ markets in Latin America stack up against each other and how easy is it to do business there? Your cut-out-and-keep guide...

70

ARGENTINA

BRAZIL

COLOMBIA

MEXICO

VENEZUELA

Population: (millions)

41

199

48

121

30

Urban population %

93

85

75

78

94

Population density /km2

15

23

41

58

32

Average age

31.2

30.7

28.9

27.3

26.9

Ages 0-15 %

25

26

29

28

30

over 60 %

15

10

9

9

9

Life expectancy

76

74

74

77

75

Literacy rate %

93

90

93

93

95

Number of HNWI 2012*

1,000

4,618

740

3,373

644

HNWI predicted 2022 *

1,743 (+ 74%)

10,985 (+ 138%)

1,063 (+ 44%)

4,842 (+ 44%)

585 (- 9%)

Cost of Living (New York = 100)

73

84

89

86

126

Currency

Peso

Real

Colombian Peso

Mexican Peso

Bolivar

Corruptions perception index (of 177)

106

72

94

106

160

Human development index (of 187)

45

85

91

61

71

Ease of doing business index (of 189)

126

116

43

53

181

Registering property (of 189)

138

107

53

150

95

Trading across borders (of 189)

129

124

94

59

173

Enforcing contracts (of 189)

57

121

155

71

92

Getting credit (of 189)

73

109

73

42

130

Protecting investors (of 189)

98

80

6

68

182

GNI per capita (US$)

9,740

11,630

6,990

9,740

12,470

GDP Growth rate % (2013)

3.5

2.3

4.2

1.2

1.6

Sources: Data from The Economist, The United Nations, The World Bank, CIA, and * Knight Frank Wealth Report 2014

JULY / AUGUST 2014

ARGENTINIAN BUYERS’ GUIDE A

rgentina is an immigrant nation, mainly by Europeans from Italy and Spain.

While that doesn’t guarantee an international outlook, Argentinians do have a tradition of buying abroad.

They make up the sixth biggest buyers in the US with 3% of total reported international transactions in the US in 2013. This was a significant increase from 1% each time in the other years since 2007, except for 2011 when there was 2%. They are even bigger buyers in Spain, with a substantial community in the Canary Islands.

More than nine out of every ten Argentinians live in cities, with 13 million in the Buenos Aires area, so escape to a holiday home in summer is highly popular. The foreign resorts of choice are Punta del Este, a short flight from Buenos

MEDIA

Aires across the River Plate to Uruguay, further up to the beaches of Brazil, or even further up to the US. Flying time to Miami from Buenos Aires is eight hours.

The economy of Argentina is in such a poor state, with inflation over 20% in 2013, making investment abroad a popular choice for those who are able to get their money past strict exchange controls.

ARS to 1USD

NEWSPAPERS: Argentina is widely recognised as one of the most literate and media-obsessed nations in the world. There are over 150 daily newspapers, hundreds of commercial radio stations, dozens of TV stations, lots of cable TV. CLARIN: Popular daily NACION: Respected conservative daily CRONICA: Tabloid daily EL CRONISTA: Business

8

BUENOS AIRES HERALD: English language daily.

7 6 5 4

2010

2011

2012

2013

2014

EMIGRATION: Argentines living abroad in 2010 equalled nearly a million people.

Their distribution around the world is: 30% Spain, 23% USA, 8.5% Chile, 6% Paraguay, 5% Israel, 5% Bolivia, 3% Brazil.

Some 10,000 live in the Canary Islands. There were also large numbers in Italy (20,000) and France (18,000)

NEED TO KNOW:

PROPERTY PORTALS: www.zonaprop.com.ar. Includes overseas property. It has 111,000 Facebook likes. Miami, Punta del Este, LA, Orlando, www.argenprop.com. Includes property in Uruguay, Brazil, Spain, USA, Panama. www.buscainmueble.com.

EXHIBITIONS: Expo Real Estate: www. exporealestate.com.ar, 20-21 August 2014, Buenos Aires.

More than 18,000 visitors expected to the 100 stands over 4,000m2 and 30 workshops Mundo Inmobiliario: www. mundoinmobiliario.com, 7-8 November 2014, Córdoba.

60-plus stands, 1,500m2 exhibition space.

www.opp-connect.com

Argentina imposes a 35% surcharge on the acquisition of foreign currency for travel and on purchases abroad using credit and debit cards, and for travel abroad, significantly adding to the cost of owning abroad. A recent scandal involved the boss of the tax office saying that everyone should vacation at home to support the economy. Then it turned out that he owned an holiday villa in Punta del Este, Uruguay.

WHERE TO SELL

71

LATIN AMERICA BUYING MARKET 2014

BRAZILIAN BUYERS’ GUIDE MEDIA

W

ith a population of 200 million (50% of whom are considered middle class), Brazil has a large pool of potential buyers. Most will be found in Sao Paulo, but there is plenty of new wealth up near the Amazon, in Manaus too.

Brazil also has a – fairly recent – tradition of large-scale emigration.

450,000 Brazilians live in the US. Miami is first choice both for tourism and emigration, where they snap up whole communities of condos. Japan, Portugal, Spain and the UK also each have communities of more than 100,000 Brazilians.

There isn’t a lot of information out there for Brazilians considering

buying abroad, says Mr A Munhoz, the Icrea South America Representative: “Word of mouth and personal recommendation are very important, even regarding location”. Facebook is used widely

by Brazilian buyers and agents.

DIA (Rio de Janeiro daily) 2.30

www,revistaqualimovel. com.br (Property portal and magazine)

2.10 1.90 1.70 1.50

2010

2011

2012

2013

2014

Getting money out of Brazil is expensive due to tight exchange controls, but Brazilians buying in Miami, for instance, consider the expense worth it because of the great prices on condos.

Brazilian buyers will want to know all about the property – but not straight away, says Gary Kenny of Feltrim: “The difference is in cultures. You have to get to know them, the family, the business, what they do… and then you can start to talk about the house and the deal.”

MEET THE BUYERS www.opp-connect.com

LANGUAGES IN BRAZIL: Mainly Portuguese. Less commonly Spanish, German, Italian, Japanese and English.

72

CORREIO BRAZILENSE (Daily) GLOBO (Daily)

BRL to 1USD

NEED TO KNOW:

MAIN CITIES: Sao Paulo (pop: 19.7m); Rio de Janeiro (pop: 11.8m); Belo Horizonte (pop: 5.4m) DIALLING CODE: +55

NEWSPAPERS: Newspapers are likely to have supplements for local property, but not for international.

DOMAIN: .br

RELIGIONS: Roman Catholic 64.6%, other Catholic 0.4%, Protestant 22.2%

With thanks to Mr. A. Munhoz, Icrea South America Representative.

www.qualviagem.com.br (Lifestyle and travel magazine) Television is the most influential media in Brazil, with thousands of stations, including property marketing stations.

Brazil are among the world’s top users of blogs and social networks, with Google’s Orkut and Facebook dominating.

Two property companies, Zap Imoveis and ImovelWeb, have well over ONE MILLION Facebook likes! More than any other agent in the world.

WHERE TO SELL PORTALS Brazil is moving from print to portals in a big way. The public want to use portals now, rather than relying on newspapers.

Vivareal.com.br Zap.com.br Imovelweb.com.br

JULY / AUGUST 2014

COLOMBIAN BUYERS’ GUIDE MEDIA

C

olombia’s economy is one of the most successful in South America. Middle classes are growing in the cities, almost doubling from 15% of the population in 2002 to 28% by 2011.

However, more than a third of the population still lives below the poverty line and much emigration is caused by displacement due to violence.

The US is the big destination for Colombians, though Europe is gaining popularity.

Good manners are highly valued in Colombia, though punctuality can be somewhat flexible if an exact time hasn’t been set (a vague “tomorrow” can mean “next week sometime”).

Where are they buying?

Florida, NYC and Chicago. Panama is also popular. Significant numbers in London and the Netherlands.

What are they buying?

Condominium complexes in gated communities

COP per 1USD 2,100 2,000 1,900 1,800 1,700

2010

2011

2012

2013

2014

Though the country is well known as a dangerous place for journalists, the private press is still well-read and worth investigating if you want to advertise foreign developments.

NEWSPAPERS

NEED TO KNOW: Colombian residents can only obtain foreign loans from institutions approved by the Central Bank, regardless of the term and the destination of the foreign currency.

When doing business in Colombia, be prepared to make a few trips before anything serious is finalised. It’s unlikely you’ll get much done unless meetings are had in person.

MEET THE BUYERS LANGUAGES IN COLOMBIA: Officially Spanish (spoken by 99.2% of the population). English has official status in the San Andrés, Providencia and Santa Catalina Islands.

MAIN CITIES: Bogota (pop 7.8m); Medellin (pop 2.4m); Cali (pop 2.3m) INTERNET DOMAIN: .co

With thanks to Orb International and Bogaert Properties for assistance with this article

EL TIEMPO (Liberal Party daily, national circulation) LA REPUBLIZA (Business daily) COLOMBIA REPORTS (Englishlanguage online news) SEMANA (weekly with good business and lifestyle sections) BLOOMBERG (online)

WHERE TO SELL PROPERTY PORTALS: VivaReal Colombia (www.vivareal.com.co) Lamudi (www.lamudi.com.co) BEST OVERSEAS PROPERTY EXHIBITION: El Gran Salon Inmobiliario in Bogota. 8-12 October 2014 (www.gransaloninmobiliario. com). USA, Central America and Caribbean developers can attend to present their developments.

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RELIGION: Roman Catholic 90%, other 10%

INTERNATIONAL DIALLING CODE: +57

TELEVISION: Television is the most popular medium of media in Colombia.

The local channels don’t offer much in the way of property or lifestyle programmes, but cable television has a great penetration. Likewise, international magazines (La Republica and International Living, particularly) are the best to advertise in.

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LATIN AMERICA BUYING MARKET 2014

MEXICAN BUYERS’ GUIDE M

exico’s middle class is growing – slowly.

Education is on the rise (higher education numbers tripled from the early 90s to 2010) and poverty has seen a staggered decline, though still high. Mexico’s economy, according to new data, is starting to recover. The bolstered US is revitalizing Mexico’s export market (80% goes to the States), but banks cutting interest rates suggests that true positive change will be slow in coming.

While emigration of Mexico’s poor to the US is well-documented (though it has dropped recently), these emigrants will be limited to cheap rental accommodation. The educated rich will buy property in certain parts of the US (usually close to home in the Southern states) but will also emigrate to

MEDIA

Canada or European countries to start their own businesses; or work for large companies or universities.

This demographic prefers the UK, Germany and, naturally, Spain.

Where are they buying?

In the US: Texas, LA, Arizona. In Europe: Spain, Germany and the UK. There’s also a substantial population in Canada.

MXN per 1USD 15 14 13 12 11

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MEET THE BUYERS LANGUAGES IN MEXICO: Spanish only 92.7%, Spanish and indigenous languages 5.7%, indigenous only 0.8%. Around 5% of Mexicans speak English.

RELIGION: Roman Catholic 82.7%, Pentecostal 1.6%, Jehovah’s Witnesses 1.4%, other Evangelical Churches 5%, other 1.9%, none 4.7%, unspecified 2.7% MAIN CITIES: Mexico City (pop: 8.9m); Ecatepec (pop: 1.7m); Guadalajara (pop:1.5m)

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INTERNATIONAL DIALLING CODE: +52

72 74

INTERNET DOMAIN: .mx

NEED TO KNOW: You’re going to be doing business in Spanish, so hire an interpreter for trips if you don’t speak it. Punctuality will be expected of you as a foreigner, but don’t be surprised if your Mexican counterpart keeps you waiting – especially if you’re meeting with a top-level executive.

Mexican media was, for a long time, dominated by the Televisa group – but in recent years competitors have sprung up, though Televisa still produces the majority of Spanish-language programmes. American cable is gaining in popularity. Also consider investing in radio advertisement, as it enjoys a high penetration both nationally and regionally.

Mexico has a fairly high (37%) proportion of internet users, with Facebook dominating the social media market.

NEWSPAPERS: Newspaper-wise, the best selling publications are the high drama tabloids. Research the politics of the region you’re targeting, as this has a big effect on which papers they’ll be buying.

NEWSPAPERS: EXCELSIOR (daily) NEWSPAPERS: EL FINANCIERO (business daily) NEWSPAPERS: REFORMA (influential daily) NEWSPAPERS: LIFE&STYLE (www.lifeandstyle.mx – online lifestyle and travel magazine) NEWSPAPERS: MEXICONOW.COM (English-language business magazine)

WHERE TO SELL PROPERTY PORTALS: Lamudi (www.lamudi.com.mx) AdondeVivir (www.adondevivir.com) Realtor.com and several other US portals have Spanishlanguage sites – if you’re trying to hit the Mexican market, ask them for information on Spanish listings.

JULY / AUGUST 2014

VENEZUELAN BUYERS’ GUIDE V

enezuela used to be a place that people emigrated to. Not lately though. The 14 years of Hugo Chavez (1999 to his death in March 2013) saw unprecedented numbers leaving. Officially, from 2005-2010, the number of Venezuelan residents abroad jumped from 378,000 to 521,000.

In fact it is far higher than that, probably double at least. The US is the main destination. Spain has a big community, with over 165,000.

Australia is popular, though high property prices deter many buyers.

This mass exodus is largely caused by a collapsing economy and some of the most deadly protests in the world (after Chavez died Venezuelans took to the streets and have barely left them). Current President Nicolas Maduro is criticized for betraying the socialist legacy with liberalized currency reforms.

Venezuela has the world’s highest

inflation rate, keeping the poor very poor. Despite sitting on huge oil reserves, the economy is a mess.

The country also has the fourth highest murder rate in the world.

Where are they buying?

The US, mainly. Florida is especially popular due to its large stock of high-end properties available for under US$1m. Huge Miami mansions draw the super rich. New York is also a choice destination for the particularly wealthy. Spain

VEF per 1 EUR 8.5 7 5.5 4 2.5

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has several large Venezuelan communities.

What are they buying?

Mid-range properties (US$200,000$1m) near good schools and, preferably, a community of fellow countrymen. Doral, Florida, is nicknamed “Little Venezuela”.

MEDIA The main television channels in Venezuela are state controlled – opposition stations were almost all shut down under Chavez’ leadership. Telesur is your best bet for advertising, as it’s heavily influenced by American culture. Take a look at Plaxed. com and Venesocial.com: both homegrown social media sites.

El Nacional (daily)

MEET THE BUYERS MAIN CITIES: Caracas (pop: 3m); Maracaibo (pop: 2.2m) Maracay (pop: 1.8m) INTERNATIONAL DIALLING CODE: +58

INTERNET DOMAIN: .ve

NEED TO KNOW:

Titles are considered very important – make sure you include them on your business card. Address professionals by their title (PHDs as ‘Doctor’, engineers as ‘Ingeniero’, architects and ‘Arquitecto’, lawyers as ‘Abogado’).

Panorama (Maracaibo-based daily) Venezuela Star (English language) bvonline.com.ve (online business news magazine)

WHERE TO SELL PROPERTY PORTALS: AdondeVivir (www.conlallave.com)

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As with most of Latin America, face-to-face meetings are much preferred. The older generation, especially, will want to get to know you personally before doing business with you; while the younger generation are more likely to start out with due diligence on your company before getting to know you.

El Universal (daily with English-language pages)

73 75

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Mexico

Advertising

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According to official data, more Americans are buying in Mexico than vice versa. What’s so special South of the Border?

Is it time to leave social media for cat videos, and revisit the paid media model? We ask experts from TV and print advertising.

Could you live in a 10 square metre apartment? Could you sell one? Bijou is back, and designers are meeting the challenge in style

Modern working practices are leaving offices empty, while homes are in short supply. There is a simple solution: OPP investigates.

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MEET THE BUYERS

OPP is 10 years old!

It’s our 10th Birthday edition!

Join us to look back on a turbulent 10 years of unrivalled international property coverage. The amazing highlights and the unprecedented lows. The people who inspired us, entertained us, but didn’t always return our calls...

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Agents could be “wiped out” by owners advertising on portals, said the Financial Times. We invited our readers to explain how they can ensure their own survival, or to deliver their own eulogy.

Our tour of property buyers follows the trade winds back to Europe. We explain what makes the Swiss tick, what the French fancy and where the Brits buy. And are the Irish coming back to the property party at last?

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BUSINESS The life of a ...

…Portuguese lawyer The golden visa has cast an even warmer glow on Portugal’s beaches, says Sara Caetano The Algarve: one of Europe’s worst-kept secrets

SCA Advogados goldenvisa@saracaetano.com +35 1 917378894 (Mandarin)

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have been a lawyer here in the Algarve in the south of Portugal since 1993. It is known as Europe’s most famous secret, with amazing beaches, superb golf courses, great food and wine, a vivid property market and, last but not least, we are just about the friendliest people in the world!

We see different clients investing in different types of property, from the luxurious villa on the golf course to an apartment with stunning sea views.

Prices have stabilized and it looks like 2014 will be the perfect year to invest in the area. Certainly the best locations haven’t changed and I still consider the Algarve to be the most interesting place to buy in Portugal.

The big new thing in the current property market is that Portugal is increasingly attracting investors from outside Europe.

Lisbon is becoming the focus for a considerable number of buyers.

My typical client comes from the UK and central/northern Europe, but in recent months, with the successful Portuguese residencefor-investment program (the socalled golden visa) Chinese clients are becoming a considerable part

of our portfolio as they seek the benefits of being a resident.

To obtain the golden visa, clients need to obtain a tourist visa in China and travel to Portugal to choose a property with a price equal or above €500,000. We assist with (a) obtaining a tax number/ fiscal representation, (b) opening a Portuguese bank account, (c) making all due diligences regarding the property/investment,

The big new thing in the current property market is more investors from outside of Europe (d) preparing the purchase contracts and (e) applying for the residence permit.

Our broadened services include not only the entire purchase process but also obtaining the golden visa, all done in Portugal.

There is no real problem with any of that. Our experience and knowledge makes it quite “easy” to deal with all conveyance and

golden-visa-related matters and we have assistants who speak Mandarin so language with the new abundance of Chinese investors is not a barrier.

Looking to the future, I truly believe an expansion era is now starting and that Portugal will become even more of a mustvisit tourist and investment destination for people around the world. Portugal has all it takes: a solid nation with a stable political regime (we are one of the oldest countries in Europe); great products to export such as olive oil, wine and cork; an unpolluted environment; very low crime rates; great locations with the most wonderful climate; very high quality construction; qualified people to work; and serious, popular foreign investment incentive programmes.

What I love most about my job is turning a potentially stressful experience – buying a property abroad – into a completely safe and non stressful process. My clients’ recognition and satisfaction makes my life quite rewarding.

I love every time a client comes back, knowing they can rely on my work.

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Welcome to the Windrush Alliance Partners Programme - Creating and maintaining successful business relationships throughout the world Windrush Alliance is actively seeking professional partners to join our growing network of property professionals from around the globe.

The Partners Programme is a concept designed to assist those already operating in the overseas property industry, and companies looking to promote overseas property more efficiently and successfully.

The partners program was introduced for businesses and individuals to benefit from our experience, as a large proportion of our business is generated by way of partner sales. The partner program financially rewards those who introduce clients or close business directly.

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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