Global Property Scene Edition 10

GLOBAL

PROPERTY SCENE ISSUE NO. 010

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

This issue: Should I move to Plovdiv? | A guide to high fashion investment | Taxes involved in overseas property The building materials of the future | House boats, are they a good alternative?

FOCUS ON : CUBA

THE RECOVERY OF IRELAND

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

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*Where Sold

INSIDE Features

15 Are house boats the future?

33 Expatriate Investing what are the costs?

56 40 Building materials of the The complexities of tax haven’s future

Around the world people have adapted to their surroundings, to the space available to them and budget constraints.

Millions of investors every year look outside their home country when investing in buy-to-let. Yet what a lot of novice investors don’t realise is that, although the process is relatively similar in every country around the world, there are a lot of ancillary charges, legislations and legal minefields you need to be aware of within your chosen country.

Today’s building materials all have one thing in common: they are emitting an extreme amount of CO2, causing global warming. With more and more people inhabiting the planet every single day, which in return need a place to live, we are in need of building an increasing amount of accommodation.

Tax shelters, secrecy jurisdictions, offshore financial centres: Whatever their moniker, they all amount to the same thing—tax havens. These purpose-built finance hubs are used to exploit financial loopholes, allowing their clients to bypass restrictive financial regulations, hide financial transactions and ultimately gain a much more favourable tax condition.

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07 Market in Focus: Cuba

88 UK

Sometimes people feel like they have to compromise on their dream dwelling, only to find their other option actually has unforeseen advantages.

INSIDE IRELAND

The Republic of Cuba is the largest country in the Caribbean, sitting in the Gulf of Mexico between Florida, Colombia, Venezuela and Mexico itself.

84 Should I move to Plovdiv?

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History is a large part of Plovdiv’s identity. Artefacts and ruins ranging from Antiquity to the Bulgarian Revival period (19th century) decorate the city.

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

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

ISSUE 010 GLOBAL

PROPERTY SCENE ISSUE NO. 010

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

This issue: Should I move to Plovdiv? | A guide to high fashion investment | Taxes involved in overseas property The building materials of the future | House boats, are they a good alternative?

FOCUS ON : CUBA

THE RECOVERY OF IRELAND

7

02811 61879

4

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

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

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

EDITOR’S NOTE There comes a point in a project when you just want it to be finished. As I write this letter we’re currently living through the trauma of residing in a property, whilst it receives a full refit. Aside from a re-wiring there will be no stone left unturned. We just want everything to be new, to leave our own mark on what is a Victorian property. This isn’t the first time we have embarked on a refurbishment journey, but I do feel a lot can be said for new-build property. Certainly from an investment angle, it’s not until you peel back the outer layer of an aging property that you find a trove of money coma inducing needs.

A place that offers this experience in abundance is central London. The city has many old and listed buildings, protected by local authority. So what if you don’t want a project but want a foot in the London housing door? Houseboats, a viable and popular home alternative in London. The Telegraph reported that in the five years leading up to 2015, London waterways saw as much as a 50% increase in the number of houseboats cruising around. In East London’s Hackney, the last year alone saw an 85% increase in the amount of residential moorings.

In this edition of GPS we explore this ever growing market.

Another market that could see a serious change in the not so distant future is Cuba. The state of the current market has its roots in the policies of the revolutionary government. After Fidel Castro wrested control of the Republic from the previous dictator, Fulgencio Batista Zaldivar, laws were enacted which suspended evictions and cut rent in half. With the United States relaxing much of its grip, we look at how bright a future the Cuban market could be facing.

Having received a bailout, and seen prices plummet to some of the lowest in the last twenty years, now seemed a fitting time to have an in-depth look at the market in Ireland. As prices begin to pick up it’s now time to look at the low entry levels.

And finally we take a look at which building materials we could be using in the future. It was the Bronze Age (which happened approximately 3200 - 600 BC in Europe) that brought civilization closer to what it is today. Is another breakthrough just around the bend?

Until next time, enjoy the edition!

Editor-in-chief Michael Smith

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MARKET IN FOCUS CUBA

Words : Alex Timperley | View : Filipe Frazao

“It not only looks wonderful; it is wonderful” – Ernest Hemingway on Cuba, Islands in the Stream.

is forever fused together in the island’s architecture, cuisine, art, music, dance, literature and the people themselves.

The Republic of Cuba is the largest country in the Caribbean, sitting in the Gulf of Mexico between Florida, Colombia, Venezuela and Mexico itself.

The mixed population of over 11 million people, the beautiful coastlines and cities and a volatile history make Cuba the fascinating place it is today.

The original inhabitants of the island, the Taino, were displaced by the Spanish following their arrival in 1492. Christopher Columbus made landfall and, true to form, claimed the island of Cuba for the Spanish crown, ignoring the fact there were already people and a functioning society in place. Within a century, a mixture of infectious foreign diseases and European imperial repression had all but wiped out the native population.

The USA technically “freed” Cuba from foreign rule in 1902. However, it would not be until Fidel Castro’s revolution in the 1950s that the country could truly claim to be self-determinant and begin to create a modern identity all of its own.

The island would remain under Spanish rule until the early 20th Century despite suffering invasions from the French and British and being the centre point of more than one major conflict. The capital city, Havana, has been a popular place to besiege over the years. Its geographical position and sugar and tobacco crops made Cuba an inevitable part of any regional war.

This history of immigration and invasion, of bloodshed and revolution, has left a mixed Amerindian, African, East Asian and European heritage which

The modern communist Cuba forged by Fidel Castro and the 26th of July movement, now maintained by his brother Raul, is unlike anywhere else in the world. It is a country world famous for exporting cigars and rum, but which did not allow its citizens to leave until very recently. A country where education is so important that the literacy rate is close to 100%, but one where the government heavily restricts access to the internet and harasses and jails journalists. A country with an average life expectancy of 78 years, but an economy rife with cronyism and corruption. A country which was the first in the world to eliminate the transition of HIV and syphilis from mother to baby, an achievement described as “one of the greatest public health achievements possible” by Margaret Chan, the Director General of the World Health Organisation, but one where the doctors who work to keep the population healthy can expect to earn a state mandated pittance.

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The government takes a dim view on freedom of expression and dissidence. The Cuban Revolution of the 1950s created a totalitarian state which controls almost every aspect of the lives of its citizens. Human Rights Watch states that the Cuban government “continues to repress dissent and discourage public criticism,” and yet the people are widely and regularly recognised as among the happiest in the world.

enacted which suspended evictions and cut rent in half. The Urban Reform Law 1960 which followed brought private renting to an end; half the previous rent was paid to the state and full ownership of the dwellings was granted to the renters over the next decade. Citizens were allowed to pass their homes on to relatives or to exchange them with others, but prohibited from making money from them.

The Republic of Cuba is a land of contradictions. It should not be a surprise This great transfer of bricks, mortar and wealth to the people of Cuba was to learn that this also applies to its property market. accompanied by a zeal for building new homes. Fidel Castro attempted to eliminate homelessness in Cuba by constructing 800 homes a month in State of the housing market the early years of his administration.

The housing market in Cuba is something of an enigma. In Havana alone over 100,000 people live in ramshackle, temporary shelters. In a part of the world famous for extreme weather, this is far from ideal. On the other hand, regular Cubans have never had more freedom to buy and sell property. A nation of homeowners are suddenly free of many legal constraints which had previously held them back and are responding enthusiastically to their new reality.

The state of the current market has its roots in the policies of the revolutionary government. After Fidel Castro wrested control of the Republic from the previous dictator, Fulgencio Batista Zaldivar, laws were

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One of the world’s great housing projects, the Alamar development in Havana is a classic example of this. A tunnel under the Bay of Havana, completed in 1958, was meant to open up the eastern side of Havana to developers, but the revolutionary government had other priorities. Fidel Castro would later build a public housing project large enough for 100,000 residents on the site. The Alamar development was based on socialist ideals with the majority of buildings and apartments designed to be the same size, regardless of the resident’s status in society.

Today a property in the Alamar district will cost the buyer up to $10,000, a price far lower than the rest of Havana.

Capitol buildiing, Havana

In 2011, Raul Castro put Decree-Law 288 into effect and changed the Cuban property market forever by allowing the buying and selling of property for the first time in 50 years. This slow economic liberalisation has, predictably, not made the market any less bizarre.

Cuba. If you are American it is illegal on both sides of the water. The Trading With The Enemy Act 1917 prohibits any trade with countries hostile to the United States. As of 2016, Cuba is currently the only country covered by the act. At this stage, even North Korea has had its sanctions lifted.

However despite Cuba’s protectionist stance, there is a limited amount of property available to buy for anyone who is not an American.

Only Cubans or permanent residents are allowed to buy or sell property.

It is illegal to lie about the value of a property. Until recently it was illegal This is by far the best and safest method to invest in Cuban property. It is to operate openly as an estate agent. It is illegal to own more than one home, plus a holiday home if you have the money, making ‘Cuban property also, inevitably, the priciest. A small range of villas and condominiums were built during a brief flirtation with foreign capital in the early 1990’s but the investors’ a completely non-existent group of people. number of dwellings is set. Buying relies on a current owner being willing However even this new internal market is not entirely free. If a Cuban were to sell. It is a seller’s market where prices are high and rising all the time. to purchase, inherit or be given a home they still have to apply for a permit If there is no property available to buy in Havana then there are other to move and live there under Decree-Law 217. This, of course, all assumes methods of circumventing the government restrictions. that everyone has a legal deed to their property in the first place. Decades Marrying a Cuban resident is a sure-fire legal path to investing in Cuban of under the table exchanges mean this cannot be guaranteed. property, but an extremely high risk strategy. There are myriad horror If you are not a Cuban citizen, there are currently three ways you can stories to be found about people losing a lot of money through a mixture invest in property in the Republic of Cuba. of naivety and poor decision making skills. Indeed, many Cubans have put a ‘dream price’ on their homes in case a foreigner decides to go down this route.

The simplest method is buying property from one of the non-Cubans who currently own property on the island. On the surface, this sounds like a Funnelling money through a Cuban friend or family member is an strange thing to say. It is generally illegal for foreigners to buy property in

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

Havana, Cuba

extremely popular way to invest in the market. Cuban exiles in America funnel hundreds of millions of dollars into Cuban property through remittances and travel allowances every year. If you have the ability to get money into the Cuban economy in this way then property is by far one of the safest possible investments on the island, in a time when the economy is uncertain and changing every day.

What does the future hold?

It is impossible to predict what the future might hold for Cuba. It is a unique place with a unique property market. The illegality of buying or selling a property over the last 50 years means that there are no real long term trends from which we can confidently extrapolate.

Relations with America have been poor for many years but recently there have been signs of “thawing”. In stark contrast to some of the low points of recent human history such as the Cuban Missile Crisis and the existence of Guantanamo Bay, there has been a clear recent improvement in diplomatic relations with the USA which is likely to be a positive step towards opening Cuba to further foreign investment. Cuban Americans can now rent an Airbnb apartment there for a holiday. Mastercard is now accepted on the island for the first time. The first US factory in Cuba for half a century has been approved.

President Barack Obama has opened a United States Embassy on Cuban soil for the first time since the 1950’s and his recent visit made him the first US President to stand on Cuban soil in almost a Century. Restrictions on Americans travelling to Cuba for religious or academic purposes have been lifted. While a general ban on holidays to Cuba is still in place it is likely that now the first steps have been taken more will follow. All of that is with the caveat that the single most important factor in future American cooperation is the result of the 2016 Presidential Election. A Democratic victory will lead to a vastly different future with Cuba than a Republican win.

On the Cuban side, the rise of Raul Castro in place of his ailing brother, Fidel, is potentially a good sign for those looking to invest. Trying to predict exactly what the new President will do is a mug’s game but, as much as he could never be described as any sort of capitalist, he is certainly much more amenable to the rest of the world having removed overly excessive laws such as the ban on cell phones and the ban on Cubans leaving the country. Thinking cynically, the fact that the Cuban economy is desperately in need of new revenue streams is likely to be another factor motivating President Castro to consider laying out the welcome mat for foreign investment.

Along with allowing the buying and selling of property between Cubans for the first time in half a century, Cuba under Raul Castro has entered into an agreement with China to construct a giant golf course and luxury tourist resort on the beautiful Northern coast between Havana and the Varadero beach.

The bottom line is that the property situation in Cuba is uncertain. The island is undergoing a quiet but profound transformation and no-one responsible would say an investment is a cast iron guarantee. There are too many variables, too many things which could go wrong, for that. The Cuban government itself is still unpredictable.

For a long time Havana was famously one of the only places in the world without a Starbucks. Starbucks is now allowed on the island, but with restrictions on what it can and cannot sell. In many ways that is the story of the current state of Cuba. It is opening up to the Western world, but always with caveats.

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Malecon Avenue, Havana

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LIFE ON THE WATER Houseboats, are they a mainstream alternative?

Words : Rachel Sharman | View : Kirayonak Yuliya

These days the definition of what counts as a normal home is ever expanding. Not everyone has the means to live in that dream detached house with a big garden and white picket fence, or the stylish city centre apartment with best friends living across the hall.

However, new, alternative ‘homes’ are not necessarily worse than these two more traditional ideas. Around the world people have adapted to their surroundings, to the space available to them and to budget constraints.

Sometimes people feel like they have to compromise on their dream dwelling, only to find their other option actually has unforeseen advantages.

You only have to look to the UK’s capital of London to see thousands of stories about how people transformed alleyways, basement apartments, and insignificant pieces of land into beautiful and unique homes, perfect for themselves.

Yet in London, the problem still remains that space is running out. Or crucially, affordable space is running out. Land prices are so high in the capital that property developers simply cannot price their properties affordably if they want to make a profit. So home-buyers increasingly have to think of the box, or be willing to pay more than ever before.

However, another solution more and more are turning to every year in the

capital is to forget about land prices and instead focus on a aquatic option - houseboats.

Houseboats are becoming a viable and popular home alternative in London. In fact, the Telegraph reported that in the five years leading up to 2015, London waterways saw as much as a 50% increase in the number of houseboats cruising around. In East London’s Hackney, the last year alone saw an 85% increase in the amount of residential moorings.

Houseboats are already popular in a few key cities around the world.

Amsterdam is often touted as the houseboat capital of the world. This is helped by the fact that the city is home to an intricate network of canals and rivers (so much so that its nickname is ‘Venice of the North’). Not only is it popular for Amsterdammers to live in houseboats, but these days, it is also a tourist attraction. People visiting can rent out boats to live in for a week and use them to explore the city.

2014 saw an estimated 2,500 houseboats in Amsterdam, a large number considering the city region only has a population of around 2.5m. Although the UK is definitely lagging behind this number, it seems that Londoners, at least, are beginning to cotton on to the trend of living on the water.

After all, what’s not to love about moving a houseboat? Suddenly the most exclusive, on-trend neighbourhoods are available to actually live in (so

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long as you can find somewhere to moor). The internet is full of testimonials about happy houseboat owners living in areas they could previously only have dreamed of. For the Telegraph article, houseboat owners Sophie Dundovic and Ollie Spragg stated how they’ve managed to live all over London, in prestigious spots such as Notting Hill and Little Venice.

For this privilege they pay £700 a month to rent the boat. According to the UK’s largest online property portal Rightmove (at the time of writing), the cheapest 2 bedroom flat to rent in the heart of Notting Hill is £1,650 per month and the cheapest in the centre of Little Venice is £1,582 per month, both well over double what Dundovic and Spragg pay.

That being said, there are not a lot of houseboats available to rent in the UK due to strict government legislation regarding houseboats and buy-tolet mortgages. However, perhaps this will soon be changing as houseboats become more and more mainstream.

Houseboats allow you to truly explore a city and all of its various regions.

They offer a real freedom to move around until finding the perfect spot.

Then, at the end of the week, it’s possible to escape from it all and sail away from the urban jungle with all your worldly possessions too. It’s no surprise that houseboats appeal to those who don’t want to settle down in a concrete city or suburb. Living on the water just puts you more in contact with nature. Whether it’s the waterside views or the wildlife that lives on

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the banks of the river, houseboats are often lauded as a chance to live a more rural lifestyle in the centre of a city.

Plus, if you have the cash available to spend on a houseboat, there are a range of luxurious options and additions available. From having modern home office spaces so a person can have the advantage of being in the heart of London for meetings and conferences, but can then easily retreat to their houseboat to work, to spacious and comfortable decks suitable for sitting in the sun and enjoying the fresh air. Some houseboats even have built in Jacuzzis for the ultimate relaxing experience.

One of the most luxurious houseboat options available in the UK was a five bedroom barge on Taggs Island in London on sale last summer for £1.85 million. This exclusive island is close to Hampton Court and is surrounded by 65 other impressive houseboats. Although the boat on sale was actually connected to the island (so that it’s never at risk of floating away), it makes up for this immovability with its summerhouse, floor to ceiling glass windows and modern features throughout. Plus, an estate agent from River Homes who were marketing the property claimed its location on the scenic spot of the Thames means it has “arguably the best views in the country”.

As for a more affordable option, the introduction of Overblue 45, 55,

Regent’s Canal, London

and 65 (a range of high-spec houseboats which “set a new standard of life on water” according to the website), rocked the boat for the waterside community in 2015. The Italian company behind the venture really tapped into the increasing popularity of houseboats by creating a fully customisable, smart-device-friendly ship, from as little as £240,000 for the smallest vessel. This even gained the attention of mainstream media, with newspapers such as the Daily Mail and Metro running features on these bespoke houseboats and how much cheaper they are than traditional houses. By making houseboats seem at once luxurious and affordable, Overblue has gained attention from around the world and boosted the image and awareness of houseboats.

A final advantage houseboats offer is that of a real community. According to Nigel Day, an estate agent for River Homes, “Houseboats are popular with artists, young professionals and those looking for an affordable pied-àterre, as well as divorcees” - an eclectic and interesting mix. In a houseboat world of limited indoor space and homes which are obligated to move every few weeks, it is no surprise that people get to know their neighbours on the water.

Similarly, in the Telegraph article, when asked about the best part Sophie Dundovic cites the community: “the people, we live among a lovely community of students, professionals including a photographer, a chiropractor, as well as retired couples.”

For most, however, it will not be the romantic lifestyle that draws people to moving onto a houseboat, it will be (what is often seen as) the low cost. As stated earlier, renting a houseboat could save you half of what you’d pay to stay in a city centre flat. Likewise, those looking to buy a houseboat may be pleasantly surprised at the listed price versus what they’d pay for a more traditional home.

But houseboats come with some additional charges you would never have to pay for with a home on dry land: > The Canal & River Trust estimated that fuel, maintenance and pumping out would cost £100-£200 per year. > A British Waterways Licence which for a 12 month contract can cost between £300-£1,100 (depending on the size of the vessel and whether it uses rivers, canals, or both). > Every four years you’d need to apply for a Boat Safety Certificate at £150 > The biggest expense is mooring which has drastically differing prices wherever you go. In London Docklands, it costs a 50ft houseboat £6,500 per year to moor. In Chelsea, you’re looking at £10,000 per year.

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West India Millwall Docks, London

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> These are also alongside traditional costs of bills and utilities.

As for buying the boat, you can really spend as much as you want. A starting price may be around £100,000 for a smaller, more basic boat, but you can easily spend £1m+ if you’re looking for luxury. The mortgage doesn’t come cheap though, interest rates for houseboat mortgages can be as high as 10%, which is almost triple the normal rate.

That being said, in this sea of rising costs, one benefit for UK buyers looking to purchase a houseboat as a second home is that they’ve avoided the latest round of Stamp Duty and Land Tax increases. Whereas from April 2016 those looking to buy second homes now see an additional 3% stamp duty on top of current rates, houseboats have been excluded from this list. Meaning you could build a fleet of houseboats for significantly less than buying second homes around the country.

However, all in all perhaps the price difference isn’t all that it’s cracked up to be when you’ve factored in all the additional yearly costs. There are other disadvantages to houseboat living as well. It is an oft-used phrase in the houseboating community that looking after the boat should be seen as a “part time job”.

Boats require far more routine maintenance than a house or flat would.

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This varies from easier tasks such as buying and loading fuel, and making sure the boat is still connected to the land in high winds, to the less desirable tasks such as dealing with a frozen septic tank in winter.

Even decorating a boat can be quite a hassle, as furniture has to get into the vessel, then fit against the curved walls and not be too heavy as to unbalance the whole ship. These are not the things you often worry about when decorating a house.

Going back to Sophie Dundovic and Ollie Spragg, they pay a fraction of the price of a flat, but they also have to put up with some pretty primitive living conditions. “In the depths of winter I was wearing a ski suit just to get through the night,” Ms Dundovic said. The two cheapest flats in Notting Hill and Little Venice may not have been spacious, but at least they offered wind protection.

Ultimately, deciding if you want to buy a houseboat depends on your dedication towards living on the water. This is best put by the Canal & River Trust: “It’s a specific way of life and one that doesn’t suit everybody.”

“We encourage people not to see canals and boats as a cheap housing alternative. There are hidden costs and maintaining your boat is almost like a part-time job, so you also have to factor in the value you put on your time. Our advice is that you should only live on a boat if you love the

Space Shuttle, Florida

lifestyle, not because you think it will save you money.”

So, all in all, are houseboats a good alternative? It seems that the houseboat lifestyle could work really well for a lot of people, so long as they’re willing to put the hard work in. Although perhaps houseboats aren’t the bargains some believe them to be, if you can find a houseboat to rent or are buying the houseboat as a second home, they could definitely save you money in comparison to the dry land equivalent.

Houseboats are undeniably best suited for couples or people living alone, as they’re not particularly large and trying to raise a family or squeeze too many people into such a limited space could be quite challenging.

Therefore, houseboats are probably the best alternatives for first time buyers or those looking to downsize.

If you’re tempted by the houseboat lifestyle, so long as the current trend of houseboats growing in popularity continues, it could be a lucrative investment to buy your own to live on. Even if it’s not with the intention of staying forever, by moving around frequently and mooring in different neighbourhoods, it’d give you a relatively good idea of which areas you’d like to settle down in. And then, when you’re ready to sell, so long as the boat has been kept ship shape, you might be able to make a fair profit, as houseboats become a more mainstream option.

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For more information, contact: Tel: 0161 772 1394 Web: www.fortisdevelopments.com

THE RECOVERY OF IRELAND Has the luck of the Irish returned?

Words : Alex Timperley | View : David Soanes

Ireland makes up the Western edge of the British Isles, facing out onto the Atlantic Ocean. People are believed to have first migrated across the Irish Sea around 8,000 years ago. Since then the island has been a home to everyone from legendary heroes to high kings, saints and sinners, Vikings and Normans, Protestants and Catholics, English and Scottish.

All have left their mark on Ireland through the years on its path to becoming the divided country it is today. The Republic is a modern Westminster-style liberal democracy but the route it took to get there was more circuitous than most.

As well as being a modern western nation, with a few major exceptions such as life threatening attitudes and legislation dictating women’s reproductive rights, Ireland maintains strong links to the indigenous culture of its past.

Gaelic Football is the most popular sport in Ireland to this day. While it was only officially codified in 1887 it shares much with the sport of caid which goes back to at least the 1300s. Hurling is even older, dating back 3,000 years. It is thrilling, dangerous and widely considered to be the world’s fastest field sport. The sight of teams chasing each other and the ball around with big sticks is still a fixture of life all over Ireland. Both sports

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are strictly amateur, maintaining links to communities, counties and the country at large.

The Irish language, Gaelic, is not the main spoken language among people from day to day but it is the official language of the state. All schools which receive public money are required to teach it and it became an official language of the European Union in January 2007.

Areas known as the Gaeltacht, mainly found in the counties of Ulster, Munster and Connacht, are supposedly Irish speaking regions. Whilst the extent of that is up for debate, and only an estimated 70,000 people speak Gaelic as their first language, it is clear that the traditional Irish tongue is far from dead.

However, not every aspect of the past is remembered so fondly. Ireland has certainly suffered from proximity to mainland Britain as people who live there have historically been obsessed with stealing the land and treasures of whoever lives across the Irish Sea. The island was Christianised in the 5th Century and the influence of the Church still holds considerable sway today. The English crown first claimed sovereignty following the 12th Century Norman invasion but would not achieve full control until the Tudor Conquest in the 16th and

Dingle Peninsula, Ireland

17th Centuries and the Acts of Union in 1800. The increase in Protestantism engendered by the English inevitably lead to conflict in Ireland. Civil War finally followed in the early 20th Century leading to the Irish Free State, the division between North and South, the Troubles and the Good Friday Agreement in 1998.

fantastical Narnia of C. S. Lewis. George Bernard Shaw’s Pygmalion and Samuel Beckett’s Waiting For Godot. The abstractions of W. B. Yeats, through the vivid storytelling of Seumas Heaney to the comic nonsense of Spike Milligan.

From the Roman remains found at Leinster, through to the divided country of the present day there has been a long and inglorious history of suffering imposed on the inhabitants of Ireland.

All reflect the deep experience of the joys and sorrows of life and the curiosity about others which is native to the Irish. They are so much more than The Pogues’ Fairytale of New York and Guinness hats on St. Patrick’s Day.

Today the Republic of Ireland is a sovereign state and a member of the European Union. The influence of the British and the shared history between the two nations cannot be forgotten, but the people of Ireland go their own way these days.

The 2011 Census puts the population of the Republic of Ireland at just under 4.6 million people. Of this, 38% live in rural areas and 62% live in urban centres. The Greater Dublin Area alone is home to over 1.2 million people making it by far the most populous municipal area in the country.

People

The historical peak of the nation’s population was around 8.5 million in the 1840s. To this day, the population of Ireland has never reached such a height again. But where have all the people gone?

The literary history of the Irish people is the key to understanding their country, perhaps more so than anything else.

…And exile The great mythological cycles and the religious tomes of the Christian monasteries. The wry satire of Jonathan Swift. The wit and wisdom of Oscar Wilde. James Joyce’s epic streams of consciousness and the

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More so than almost any other group in the world, mass emigration has long been the default Irish response to times of economic hardship.

Titanic Quarter, Belfast

The most severe emigration of all followed the Great Famine of the 1840s.

The European potato failure during the “Hungry Forties” caused hardship and pain to people across the continent, but Ireland relied more heavily on potatoes than most. A third of the Irish population were wholly dependent on the potato harvest for political, social and economic reasons. For a nation plagued by poverty, neglectful absentee landlords, and political oppression such as the Corn Laws, the loss of successive potato harvests was a disaster.

tenth of all British people have an Irish grandparent. Around the great old shipping ports of the North West - Liverpool, Salford and Manchester - this number is much higher. The Irish dug the tunnels, raised the bridges, cut the embankments and laid the tracks for railways all over the world. Our shared culture and history would look very different without the legacy of the navvies – the Irish navigators.

It is estimated that between 9 and 10 million natives have emigrated from Ireland since the year 1700.

A million people died and a further million were forced to leave, most of whom found their way to North America. So many Irish emigrated to the USA that a political party – the aptly named Know Nothing Party – was actually created out of fear that this influx of Catholics planned to turn America over to the Pope.

Generation after generation for hundreds of years has had to deal with extensive emigration. The reaction to the 2008 banking crash and the subsequent austerity ensured that this one would be no different as the Irish fled the dire prospects offered at home to search for better abroad.

The politics, culture and demographics of Ireland were forever changed by this. The Great Famine, the deadly neglect on the part of the British Crown and the emigration which followed all burned into the cultural memory of the Irish. This traumatic period in their history would, in many ways, define the future of the Irish and their island in the sea.

Young people make up the vast majority of people who emigrate – from 2006-2012, people in their 20s made up 70% of all emigrants. A significant number of these young people were highly educated and took their all their skills, training and talents abroad as they did not believe there was a real future for them at home.

The vast number of Irish exiles spread around the world ensures that the idea of ‘Ireland’ extends beyond the borders of the state. For instance, one

It’s no surprise really. As in many countries under the yoke of austerity, Ireland is seemingly content to sacrifice its young, handing out artificially

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The boom in house prices was most pronounced and, looking back, low wages and unemployment welfare payments whilst reducing public services and presiding over a shocking unemployment rate. This has led to unsustainable between 1997 and 2007. Overall they increased by 268%. what the Irish Times describes as a “hollowing out of a generation.”

This was one of the largest and longest booms in Europe.

Now, however, the Irish Government, until recently led by Enda Kenny, the leader of Fine Gael and former Taoiseach of the Dáil Éireann, is trying very hard to persuade the diaspora to return. He has highlighted 2016 as the year when he hopes the number of people returning will exceed the number choosing to emigrate. This would be a remarkable turnaround, and a positive one.

Allowing the best and brightest to leave is no way to run a country, but what sort of country would they be coming back to?

The boom For a long time the Republic of Ireland was the economic darling of Europe. From the 1990s up to the 2008 banking crisis, the Irish economy was incredibly strong following an enthusiastic embrace of free-market economics. Housebuilding and a buoyant property market underpinned the annual 7% growth in GDP between 1991 and 2008.

In the early years of the 21st Century, house prices doubled. This occurred in spite of a mass house building programme which saw 75,000 new homes constructed annually from 2000 to 2005 and planning permission in place for a further 460,000.

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It does not take a genius to see that this could not last.

Where did it all go wrong?

Ireland was hit harder than most by the banking crisis of 2008. The country came very close to total bankruptcy and, in return for an EU bailout, Ireland committed to harsh austerity policies. The national debt reached as high as 125% of GDP in 2013 as it completed the three-year bailout programme.

A volatile mixture of tax incentives, economic growth and immigration fuelled the massive economic growth. When one leg of this fragile triumvirate was kicked away, the whole house of cards collapsed.

Ireland’s financial sector was a hotbed of bad housing debt bad mortgages and toxic housing debt. A cavalier attitude towards intelligent and prudent regulation born from the hubris of the “Celtic Tiger” years ensured that when the property bubble burst it took everything else with it.

In 2008, the Republic of Ireland became the first Eurozone country to officially enter recession – defined as two consecutive quarters of negative economic growth.

By 2009, Ireland was considered to be the riskiest debt in Europe and

Penny Bridge, Dublin

credit rating agency Moody’s had downgraded the national bonds to “junk” Property prices rose 6.54% in 2015 across Ireland, including a 3.35% rise in Dublin. While this was less encouraging than the rise recorded in 2014, it is status. a still significant and welcome sign of recovery.

By 2011, house prices across Ireland were down over 50%. A construction In 2015, the United Nations ranked Ireland as the joint 6th most developed industry which was once responsible for 12% of GDP, and employed a country in their Human Development Index. Governments desperately disproportionate number of people, suddenly ceased to exist. Thousands of new build homes were left unoccupied as people could no longer afford trying to sell austerity as a good plan to their own citizens are very fond of Ireland’s recovery. However the story on the ground does not quite back to buy them. up this theory.

By 2012, all the economic gains of the “Celtic Tiger” years had been If the economy grows but the people are left behind, is that really a completely reversed. Rarely has a country had as many eggs in the same recovery? Living standards have continued to decline for the majority. Child flawed basket as Ireland did. poverty has doubled since the crash. Public services have been slashed and do not provide for their people to the same extent as they used to.

And now?

There is a homelessness epidemic, especially in Dublin where there have Today, the Irish economy is growing and strengthening every day following been ludicrous proposals to simply ship the homeless out to the countryside rather than attempt to properly deal with the issue. The some miserable years. A projected growth of 6% puts the Irish economy unemployment rate still hovers around 10%. back at the top of the European rankings.

Banks have put measures in place to put a halt to the extremely risky lending that contributed to the burst property bubble which previously sunk the economy. In January 2015 loans for homes were limited to three and a half times the applicant’s income. In addition, restrictions were put in place on loan-to-value ratios on homes over €220,000, and to 80% of the value on second home purchases and 70% on buy-to-let properties.

Is the newly recovering Irish economy a sure bet to keep growing or is it a castle built on sand?

Current economic outlook The current economic outlook is good, but there are signs that Ireland is set to repeat the same mistakes all over again.

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The public debt, though much reduced, still stands at around 100% of GDP. Despite the 6% economic growth the multinational nature of the economy makes Ireland particularly susceptible to external shocks. Household debt levels across the country are second only to the Netherlands within the Eurozone and more than one-in-eight mortgages are in arrears. Rents in Dublin have returned to somewhere near their pre-crisis peak, but a country is more than its capital city.

The vulnerability to external factors is especially worrying in this case.

Before the crash, Ireland gained a reputation as a financial ‘Wild West’. Bad debts and toxic loans stacked up to a lethal degree.

Knight Frank’s Global House Price Index 2015 predicts another slowdown in property prices over the whole of 2016. Ireland is not exempt from this and it is a cruel irony that the previous excess of homes is now a shortfall.

Laws requiring a minimum of 85 sq. metres per dwelling do not matter in the good times, but it makes a huge difference when belts are being tightened. Construction costs a third more than it might otherwise do and building a lot of dwellings subsequently becomes more difficult.

International companies such as Pfizer and Google have jumped through many hoops to domicile in the Republic and avoid paying larger tax bills elsewhere, but Ireland is where the risk stays. At the same time, Enda Kenny’s Government handed out a huge raft of tax cuts in an attempt to win votes – a standard political strategy but also exactly the type of short-termism which saw the economy bottom out last time round.

Warning signs which were ignored before the 2008 crash are starting to appear again and Ireland should be more worried than most.

Current political outlook The General Election of February 2016 was inconclusive. Poor showings for the previous incumbents, a Fine Gael/Labour coalition, mean that it is going to be very tricky to form a Government. The two main parties were split evenly enough to leave a hung Parliament and weeks of coalition negotiations ahead.

It is yet to be seen how much the continuing uncertainty will affect the Irish economy but it is unlikely to have a positive effect. The former Taoiseach, Bertie Ahern, who ruled from 1997-2008 has stated that he does not believe talks will be completed before Easter, and was proven correct.

A so called “Grand Coalition” between Fine Gael and Fianna Fail appears to have been ruled out, with both parties calling for a political ceasefire instead. Former Taoiseach Enda Kenny resigned his post after failing to gather the necessary support from the Dáil to continue on as leader. It is unfortunate that the 100th anniversary of the Easter Rising, the starting point of modern independence, could not pass with some form of political unity.

Unlike most modern states, Irish political divides do not run along left wing and right wing lines, nor is there the sort of clear historical class divide to separate the parties such as you find in the UK. The divide is based first and foremost on civil war politics and, consequently, substantive policy differences between the two main parties are few and far between. This is reflected in the fact that in the recent elections the two great civil war parties received fewer than 50% of votes between them for the first time.

In their place, the republicans Sinn Fein achieved 17% of the vote, their best ever return, and a wide range of independents and anti-austerity candidates found success. The makeup of the Dáil is suddenly the most interesting it has been for a long time.

It is also worth considering that Ireland’s interdependent relationship with the UK may yet have another twist. If the UK votes to leave the European Union then there may well be severe knock-on effects for the Republic.

The UK is, in many ways, Ireland’s biggest sponsor in Europe and the shockwaves from a ‘Brexit’ will have unpredictable, yet probably negative, effects on the Republic.

Extended political uncertainty is rarely good for a nation’s economy and Ireland faces instability both at home and abroad. With a recovery which feels insubstantial on top of all that, the future of Ireland’s economy and property market is murky at best.

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Cliffs of Moher, Ireland

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WHAT ARE THE COSTS? Expatriate Investing—the real cost of acquiring property all over the world

Words : Hannah Wilde | View : S.Borisov

If you’re considering investing outside your domestic country, you’re not alone—millions of investors every year look outside their home country when investing in buy-to-let. Yet what a lot of novice investors don’t realise is that, although the process is relatively similar in every country around the world, there are a lot of ancillary charges, legislations and legal minefields you need to be aware of within your chosen country. Bear in mind that in almost every country in the world, expatriate investors (that is, non-residents of the country of purchase) are often taxed more heavily than domiciled investors, making what would have been a relatively cost-effective purchase a lot more complicated and, oftentimes, a lot more cost-adverse.

The physical act of purchasing a property follows a very similar process in almost every developed country in the world—a seller accepts an offer from a prospective buyer and a contract is then drawn up (clearly outlining the owner’s commitment to sell and the buyer’s commitment to buy), which when signed legally binds and finalises the sale. As simple as this process appears on paper, the reality is very different—how an investor gets from A (having an offer accepted) to Z (finalisation of sale) differs greatly from

country to country.

There is no ‘one-size-fits-all’ approach to property acquisition—there are different laws, rules and taxes in each country, which aren’t even set in stone as the level of taxation in some countries can differ depending on what the owner plans to do with the purchase once bought. Even the people involved in the property transaction vary based on the laws of the land and the legal systems upheld in the country of purchase. Case in point: although the UK’s property purchase is facilitated by two sets of specifically-appointed solicitors or conveyancers (one operating on behalf of the buyer and the other on behalf of the seller), most European countries use the French Napoleonic Code as the basis of their legal system, which sees a singular ‘notary’ acting on behalf of both the buyer and seller.

Aiming to shed some light on this minefield of litigation, acquisition and taxation, Global Property Scene will now investigate a selection of buy-tolet destinations around the world, outlining what an international investor would expect to pay in each country.

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1. UK The UK has long since been a landlord’s paradise, with one in five properties across the country owned by landlords. Although popular with domestic investors, the UK is also a hotbed for foreign investment because of its two-fold investment opportunities—generally, British buy-to-let properties offer investors both high rental yields and excellent capital appreciation when the time comes to sell. So how much would it cost for an international investor to purchase in such a lucrative property market?

While there is no definitive price-tag on how much it would cost—much of the fees and taxes involved in a UK property purchase are dependent on factors like the property’s purchase price—it is said that buyers of UK property (both resident and non-domiciled) would be expected to pay on average 1-8% of the property’s purchase price.

A typical buy-to-let purchase in the UK is based on 3 key milestones: the ‘search and offer’ stage, the conveyancing process and the final

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completion. Typically, the wheel begins turning with the seller’s acceptance of a potential buyer’s offer, at which time both the buyer and seller will instruct their own solicitor or conveyancer with details of their commitment to the purchase process. At this stage, neither the buyer nor seller is legally bound, except in Scotland where the offer process acts as a contractual promise from the outset.

From here, a survey is strongly advised—mandatory if you are buying with a mortgage—to ensure the structural integrity of a property and to identify any potential problems. The costs of these surveys are footed by the property’s buyer and can range in price and comprehensiveness from the most basic that comes in around £300 to the most in-depth that can be in the range of £1,000 depending on the requirements of the property.

Once all due surveys have been undertaken, the process of conveyance begins, whereby a legal professional starts the legal transfer of ownership for the property. Once the contract has been amended, agreed upon and subsequently signed by both parties, the process is now legally binding— within a matter of weeks from this point, the transaction is completed with ownership successfully transferring to its new legal owner.

London, UK

The end of the process marks where the majority of an expatriate investor’s expenses are duly paid, from the stamp duty of the property to the legal fees and land registry fees. The latter fees combined generally come in at around 1.05% of the property’s value, but the stamp duty tax is by far the largest outlay for anyone looking to invest in UK buy-to-let property. As of April 2016, all buy-to-let and second homes (that is, all properties not bought for the express purpose of owner-occupation) will be subject to an additional 3% Stamp Duty Land Tax (SDLT) levy on top of the tax that exists in the residential sector. This sees properties over the value of £125,000 paying 5% up to the value of £250,000, then 8% until £925,000 and so on. Investors looking to purchase a property for over this value will be looking at a 13% SDLT on properties up to the value of £1.5m, and 15% for properties exceeding this amount.

Regardless of this new buy-to-let stamp duty rate, the UK is and will still remain a premier investment spot for expatriates for a multitude of reasons.

First and foremost, there are no restrictions in the UK property market

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for expatriate investors unlike some EU countries like Turkey or Croatia, which demand non-citizens to obtain official permission to buy a property from governing bodies like the Ministry of Defence, a process which could take months and is not guaranteed to be approved. Furthermore, the UK is one of few EU countries in which expatriate investors are spared the costly ‘Capital Gains Tax’ applied to the profits made on the sale of the property when the time comes to sell, whereas UK residents are subject to a progressive tax rate of either 18-28% dependent on the basic rate threshold.

2. France A neighbouring European country, the purchase process found in the French capital of Paris is not too dissimilar to the one found 375 miles away in England, yet does come with a more significant premium for international investors. According to Global Property Guide, the transaction costs for purchasing property in Paris have been known to tip the scales at anywhere from a reasonable 7.9% to an eye-watering 28.9%.

I’m sure the question on everyone’s lips at this moment is: just where do these exponential fees come from? The lion’s share of this figure is generated from the famous ‘notaire fees’, which pay for the notary appointed to conduct the legal transaction on both the buyer and seller’s behalf. This can come in at anywhere between 3-10% of the property’s value, plus a hefty 20% VAT tax on top, and is the responsibility of the buyer. Other fees landing at the feet of the disillusioned French investor include half of the estate agent fees (generally between 1.5-5%, plus the pesky 20% VAT on top), as well as registration fees (0.6-4.8%) and land registry fees (to use the French moniker ‘droits d’enregistrement’) generally fixed at 0.1% payable at the end of the transaction. By the time the property’s completion documents have been signed, the buyer bill is in the range of 6.1-22.9% of the property’s value—even the average of these figures (14.5%) is a cool 6.5% more than you would expect to pay in the UK. Nonetheless, life in France is a pipedream for international homebuyers and investors alike thanks to over 2,000 hours of sunshine every year and the French property market’s ever-growing rental market. For nigh on a decade, France has reigned supreme as the opportune destination for buy-to-let investments simply because of the strength of its rental market—a vast majority of French residents, particularly Parisians, are long-term renters in the private rented sector due to a national decline in homeownership. Because of this, thousands of both domestic and expatriate investors look to invest in French property, which can be incredibly lucrative in popular areas like Paris and Gascony. But such is the nature of the French property market that, with condition as they are at present, it simply means that investors would face a hefty premium for a slice of this particular gateau.

3. USA On the other end of the spectrum, the world of property acquisition sees some countries that look cost-effective on paper but the real cost comes not during the purchase process but in fact after you have made the commitment and signed on the dotted line. Take the United States for example, where at first glance fees seem very reasonable but then you are hit with unexpected outlays that soon send costs spiralling.

The Telegraph in 2011 pits the cost of acquisition in the US at a respectable 3-6% of the property’s overall purchase price, and further research attests to these impressively low buying costs. Unlike most countries, the US sees the seller rather than the buyer footing the lion’s share of the costs, including the substantial realtor fees, which can come in at anywhere up to 6% of the value of the property for sale. However, deeper investigation shows that this is just the tip of the iceberg—once the purchase process has been finalised (with the seller paying the majority of all due costs), this is where the buyer’s financial plight begins. The monthly service charge alone if buying in a development with communal facilities like a pool can come in at $100-$400 per month, which is not inclusive of all due maintenance, and does not account for the cumbersome 10-15% monthly fee of a management company, which is detracted from the property’s rental income.

This, when coupled with the fact that the rental market is a lot less favourable in the USA than in places like France and the UK, gives investors a serious cause for concern—Will my rental income cover the growing monthly costs? What will happen to my investment if the property is not tenanted? This goes to show that acquisition costs do not tell the

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Paris, France

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whole story, and investors should not be disillusioned by purchase fees that look too good to be true: be sure to conduct all due diligence before making any serious financial commitments.

4. Thailand Some 8,600 miles away on the continent of Asia sits Thailand, with its property market not at all welcoming to expatriate investors. In a law that has not been revised for nigh on 62 years, Thailand’s Land Code Act B.E. 2497 positively forbids foreign investors (that is, those domiciled outside of Thailand) from owning land—and thus property—anywhere in the country.

The only option for those looking to Thailand for their buy-to-let needs is an apartment in a licensed condominium.

However, there is one notable exception to this rule. It is possible for expatriates to own land up to 1 rai (equating to 1,600sqm) in Thailand if— and this is a big if—the investor in question is willing to make a significant ‘contribution’ of 40 MILLION baht ($1.1m for American investors, or £795,402 for British expats) into the country via specified assets or government bonds that positively benefit the Thai economy.

Amazingly, this appears to be the only significant outlay a non-domiciled investor has to pay—alongside the property purchase price, the only other cost that a Thai buyer is liable for are the legal fees, which come in at around 0.1%. The rest of the costs, such as the real estate fees (3-5%), withholding tax (1%), stamp duty (0.5%), specific business tax (3.3%) and a registration fee (2%), are paid for by the seller, bringing their fee to over 10%. However, although it seems like a steal for those investors who can and are willing to overlook the $1.1m needed to secure the land, it needs to be remembered that what goes up must come down—while it is highly advantageous that you only have to pay 0.1% when you buy the property, remember that one day the tables will turn when it’s your turn to sell your Thai property, at which time the 10% bill will land on your lap.

So the million dollar question is not whether you want to invest in Thailand, but can you afford to?

While all the examples featured in this article are extremes—the UK an example of extremely favourable purchasing conditions, France an example of a high purchase price but boasting a stable and ever-lucrative rental market, the USA an example of how sometimes low property acquisition costs can be misleading, and Thailand as an example of an investment market that actively prohibits international investment (unless you pay handsomely for the privilege)—this is by no means an extensive and definitive list. Each of the examples are based on averages and the costs reflected as a percentage of the purchase price, which can vary massively from country to country, and even from city to city.

Rather than seeking to definitively list all purchase prices and their comparative value, this article aims to advise all investors looking to invest outside their country of residence to do all due diligence on the property market in which you are looking to invest, ensuring you are aware of all possible costs and have factored into your budget all these ancillary costs from the outset. Investing in a foreign country can be an exciting—and incredibly lucrative—investment, but be sure you are aware of all costs before jumping in with both feet.

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Bangkok, Thailand

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THE FUTURE OF CONSTRUCTION The journey of alternative building materials - What happened and what Is yet to come?

Words : Christine Schulz | View : Vasilyev Alexandr

What do the Burj Khalifa, the Tokyo Sky Tree and the Shanghai Tower all have in common? They are counted amongst the tallest buildings in the world, and seen by many as architectural marvels. However, this is by no means a definitive list—there are hundreds of impressive buildings scattered around the world, from the Crooked House in Poland and the Hundertwasser Building in Germany’s Darmstadt, to San Francisco’s iconic Golden Gate Bridge and the Yangshan Deep-Water Port in Shanghai.

Bronze Age, whereby human advancement led to the smelting of copper, alloy tin, arsenic and other materials. After this epiphany, it was only a small leap to the next stage of construction progression: the Iron Age. Here, materials like iron and steel were to enhance almost every element of what would later be identified as the early features of urban civilisation, including advanced weaponry, agricultural equipment and other vital tools that are still used today.

No matter which building you use as an example of modern architecture at its finest, there is a clear trend throughout the construction world: the creation of a truly unique building, bigger and better than ever before.

Incredibly, today’s construction industry still use elements from each of these vital periods of human development, with two prevalent types of building materials contributing to the buildings we know today: natural and man-made materials.

But how have the construction and architecture industries come this far?

How is it possible for mankind to build such striking constructions at such dizzying heights that maintain their structural integrity? Global Property Scene takes a look back at the journey of building materials from past to present day, and offers a sneak peek into what is yet to come for the future of construction.

The history of modern building materials The first known humans to inhabit the earth, cavemen were renowned in history as the early pioneers of construction, known for constructing solid structurally-sound dwellings from any natural materials they could lay their hands on, from wood and clay to rocks, stones and even plants.

As civilisation progressed, so too did the types of materials mankind had access to—around 3200 BC heralded in what modern history calls the

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Taking heed from our cavemen ancestors, the use of natural materials in the building of houses and other types of infrastructure is still prevalent in some areas even to this day. For example, hot climates have been known to influence construction techniques, with countries like Africa using mud and clay as essential building materials. On the other end of the spectrum, the Inuit people of the northernmost regions of North America and Canada went back to basics with the creation of their dwellings, using sub-arctic conditions to their advantage by moulding hard snow to create insulated circular houses we know as igloos. Even in the modern world, our building materials of choice tend to have their basis in natural substances—take cement and concrete, two of the most well-known building materials in the world, whose main ingredients are clay, gravel, sand and water.

Since the dawn of time natural materials have been manipulated by man

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Graphene crystal lattice, 3d model

to fit a specific purpose—cavemen building their caves, ironmongers smelting and moulding metals, builders mixing natural elements to create binding agents like concrete and cement—and this is no exception even now. The construction industry we know today is a tantalising mix of old and new, with modern technology allowing us to fill the gaps in nature with manufactured products to enhance the materials already on offer.

One of the most well-known artificial materials, especially in the modern world, is the trusty brick. Again its foundation is natural—stemming from clay and shale, two natural materials abundant across the world—but one that has been manipulated by the hand of man in a kiln (a large specialist oven that can reach temperatures of and above 2,000oF) to create an incredibly strong and durable rectangular shape that can then be stacked.

These layers of brick, when fused with the binding paste mortar, form the external foundation of the houses we know today.

But of course, with the progression of science and technology, this has allowed us to go one step further—instead of just developing and manipulating pre-existing materials in the way we want it, the modern world has brought with it some innovations in building materials that are artificially produced and cannot be found or even sourced in the natural world. And this is where the future of construction truly begins.

The future of construction Although the likes of concrete and metals like steel have been seen as construction staples for decades, they have been facing a barrage of criticism of late. As the world becomes more eco-friendly and environmentally-conscious, news that these essential materials emit a huge amount of CO2, a known chemical cause of global warming, has not been at all welcome. Many saw this revelation as somewhat of a catch-22—the strain already on housing markets all over the world means more buildings need to be produced for the growing population, but the materials we have previously and continue to use in the construction of said buildings are emitting dangerous amounts of CO2. To put this into perspective, the production of steel and concrete alone were responsible for more CO2 emissions than the entire aviation industry in the year 2007.

This has led to scientists and engineers’ alike thinking outside the box to create new technologies that will revolutionise the industry. Luckily, modern technology is on their side, leading to discoveries that could change the type, shape, design and functionality of buildings as we know them. And of course, this is the name of the game in modern architecture, to make the biggest, best and most distinctive building possible. Thanks to these new building materials, the boundaries of possibility and impossibility are becoming increasingly narrow.

Modern artificial materials have caused quite a stir in the construction world of late, coming as a direct result of the pressure to find alternative and sustainable building materials that one day may replace the ones condemned for their eco-adversity. Global Property Scene will review a selection of the newest up-and-coming manufactured building materials, discussing whether they have durability in an ever-changing construction industry.

1. Graphene Perhaps one of the most well-known, and certainly the most celebrated, of the ‘new age’ materials, graphene is a form of carbon that has been named the world’s thinnest material, measuring just one atom in thickness, and the world’s first 2D material. Such was the importance of the discovery of what is known as ‘the Miracle Material’ in 2004, the two leading researchers at the University of Manchester Professors Andre Geim and Kostya Novoselov received the Nobel Prize in Physics for their pioneering work.

Since its discovery, this material has certainly been making waves in the scientific world, but does it have the same esteem in the construction world? Well, graphene certainly has all the properties that would feature highly on any structural engineer’s wish-list—it’s ultra-light, ultra-thin, super flexible, extremely firm and highly conductive. Furthermore, according to its birthplace the University of Manchester, graphene has shown itself to be 200 times stronger than steel and more conductive than copper but still surprisingly flexible, which would be a definite plus for construction workers who may enjoy shaping such a supple material to their exact specifications.

However, even Superman’s weakness was Kryptonite—likewise this

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Prepreg carbon fibre

‘Miracle Material’ has one big and very distinct weakness. For all its superior strength and conductivity, graphene was found by the Georgia Institute of Technology to be so brittle that the tiniest crack can cause a ripple effect that would soon expand across its whole surface, not unlike a sheet of shattering glass. This, for the construction industry, is a huge red flag—a material used for construction should have strength, but also a significant resistance to cracks. So until this particular kink is ironed out, it seems that graphene won’t be used in house and skyscraper-building in the foreseeable future. After all, there’s a reason people don’t already live in glass houses!

2. Carbon Fibre Not too dissimilar to the aforementioned ‘Miracle Material’, carbon fibre as the name suggests consists of very thin strands of the element carbon and can be seen as yet another “superhero” material. Known for its rigidity, tensile strength, chemical resistance and high temperature tolerance, carbon fibre is considered 5 times stronger than steel, despite its diameter of only 5-10 microns (approximately 0.000273 inches).

Furthermore, its lightweight and corrosion-resistant properties mean that in theory it would be a perfect reinforcing material for the construction industry, especially since carbon fibre is widely used in products designed for optimum aerodynamic precision, like the production of aerospace and aviation parts, bicycle frames, racing cars, and automobiles to name just a few. However, carbon fibre also has an insurmountable weakness: this material too can disintegrate under duress, and is also notably both time and labour-adverse.

However, it does have to be said that carbon fibre is only weak as a whole untampered material - when combined with a pre-existing construction material is where carbon fibre truly thrives. Incorporating ‘bars’ of fibre with cement strengthens a material that would otherwise be brittle, giving

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much-needed reinforcement to the cement to fortify its structural integrity.

This is indeed a tried-and-tested method across the whole industry, and a practice that will continue long into the future. While carbon fibre, like its superhuman cousin graphene, may take a while to penetrate the market as an unaltered material, this particular material will still make its mark in the construction industry—albeit disguised as something else entirely.

3. Self-Healing Concrete Another adaptation of a pre-existing building material, the moniker ‘self-healing concrete’ adequately defines this next material. Concrete has long been one of the world’s most used building materials (according to The Guardian, concrete is the most widely produced and consumed material on earth apart from water), but again this material also has a weakness: due to its lack of strength it is prone to cracks, breakages and disintegration. Therefore, this prophetic ‘self-healing concrete’ provides the cure to this ailment through the use of a known medical remedy— bacteria. In the same way a sick person would be injected with a bacterial ‘healing agent’, the cement is also privy to this same treatment, with specific bacteria capsules added into the concrete mix. Able to survive in the very dry, hard environment, the ‘healing’ properties of the bacteria is activated once cracks in the concrete appear and water is let in. The water triggers the bacteria’s germination process, whereby the bacteria multiples and feeds on the lactate within the concrete mix which then produces a brand new element—limestone—into the mix. This new material acts as a sealant and closes up the cracks in the concrete, and thus the prophecy of ‘self-healing’ is complete.

This unique and innovative method of concrete restoration comes not from the modern world’s advancing technology, but rather adapted from techniques and advances in both modern medicine and even marine biology (since in this case water acts as the activation catalyst). What’s even more unbelievable is that this technology is completely green—

meaning no excessive and unwanted emissions to mitigate—and long-lasting, with this particular bacteria able to lie dormant for up to 200 years. So why aren’t more people using this miracle concrete? First and foremost this new technology is costly for builders, costing almost 42.8% more per cubic centimetre than the bog-standard, non-healing concrete.

Director of policy at the UK Green Building Council John Alker can certainly see the advantages of this new and innovative material, but does say that its implementation could simply be down to ‘following the leader’: “It is a highly impactful product in terms of the energy that goes into producing it, and it’s a very important construction product globally…[but to change the behaviour of the whole construction industry] would come down to innovative clients and developers being willing to experiment with their building, and try-and-test these materials to prove a track record before others will follow”.

4. Biomimetics Working on the premise of the highly successful (albeit not-yet-wholly-implemented) self-healing concrete, this next method is a natural progression from biomedicine. With a name that in essence means “copying life”, biomimetics works on the premise of man-made objects imitating elements of biology and nature for purposes of evolving and bettering pre-existing products and processes. Biomimetics in theory can be things as simple as Percy Shaw’s ‘cat’s eyes’ retroreflective road markings that now feature on most major motorways in the world, or even Velcro directly inspired by plant extracts sticking to the fur of a dog—these are classic examples of life, or rather construction, imitating nature for human benefit.

However, the construction industry wants to take this one step further by almost emulating human osteoplasts—that is, human cells that form bones.

Human bones are a material composed almost equally of hydrated protein and minerals, both serving a different, and equally pivotal, job—the protein makes the material tough and relatively fracture-resistant, while the

mineral confers stiffness and hardness. As many readers can attest, bones can and often do break, but what they do also have the capacity to do is self-heal. So innovators in the construction world are already asking the question: can we use biomimetics to mimic the protein- and mineral-based material used by human bones to create a new and innovative construction material? The short answer is yes, this is in fact possible (researchers have thus far succeeded in producing centimetre-scale samples of biomimetic bone material), but it could be years away from implementation. So while it is indeed possible, the question with biomimetics has changed from ‘can it be done?’ (Yes) to the much more apt ‘When can it be done?’—in all likelihood the answer to this question would be the age-old: ‘How long is a piece of string’.

From skimming the surface of both current and future building materials, it seems that the construction sector is keen to move away from the costly and energy-inefficient building materials of which the industry is so accustomed, yet this transition is easier said than done. The wheels of progress are still turning in the search for more sustainable, natural substances which can be used in construction the world over, yet it seems like most of the progress made thus far is in the recreation and improvement of organisms which already exist.

On the surface, the industry is making steps in the right direction with the likes of carbon manipulation and tentative steps into the formative world of biology, but there is still a long way to go to create a truly revolutionary building material that is not only cost- and energy-efficient, but that also can be mass-produced to fulfil global demand.

It will be interesting to see the direction the construction sector will take and what future buildings will look like: will they be bigger, better and bolder than before? Will they be eco-friendly? One thing is for sure, though—the future of alternative building materials is set to be an intriguing one.

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BUY-TO-LET IN THE NORTHERN POWERHOUSE APARTMENTS FROM

£100,000

THE WAR OF THE SUPERMARKETS As customer spending habits change in this increasingly technological age, the battle for Britain’s grocery market is underway.

Words : Samantha Jones | View : Barry Barnes

The UK grocery market is big business. Worth £177.5 billion in the year to March 31st 2015 (accounting for 51.3p in every £1 of UK retail sales), its little wonder that the power struggle currently playing out is every bit as dirty as a playground fist fight.

The birth of the UK supermarket Britain’s first supermarket opened in Manor Park, east London in 1948, forever changing the country’s retail landscape. Traditional shopping habits and etiquette were as much a way of life as the quintessential fish and chips or rainy days at the beach. The daily walk to the local shop and inevitable chat with the shopkeeper were part of a housewife’s routine; the thought of helping yourself to the merchandise and carrying it to the till yourself was simply unheard of.

However this new way of shopping quickly took off, as the self-service approach and more economical utilisation of staff allowed supermarkets to buy goods in bulk, passing the savings on to their customers. Local businesses that had been operating for years and were the hub of the local community quickly found themselves out of business, unable to compete with the new wave of cheap deals to be found elsewhere.

The high-street integration of self-service supermarkets was the

pre-cursor to the new wave of superstores and hypermarkets that became the blueprint for today’s shops. Following (late) in the footsteps of the US retail market, in 1964 Gem International Supercentres Incorporated opened the UK’s first out-of-town supermarket in West Bridgeford, Nottinghamshire. Unused to the American way of shopping, the Gem store ultimately failed due to its format of having individual, franchised outlets under one roof. Shoppers became so confused by the model that barely two years after its grand unveiling, sales for Gem were as little as £6,000 per week.

By 1965 however, the demand for convenience shopping was at an all-time high. With increasing numbers of housewives now going out to work, the luxury of a daily shop was no longer possible. In 1965, retailer Asda decided the new out-of-town supermarket model was viable by removing the franchise system and instead selling ‘own-brand’ goods across a range of different departments. Having bought the West Bridgeford store from Gem, Asda made £30,000 in the first week of opening, with sales doubling in the first six months.

The birth of the UK supermarket as we now know it had arrived, sparking a rivalry that would echo through the retail landscape for decades to come.

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The ‘Big Four’ As early as the 1950s and 60s when the supermarket-style of grocery shopping began its rise to popularity, three main operators emerged as shining stars from the start. Tesco, Sainsbury’s and Asda constantly vied for the top spot.

Having grown from humble beginnings, each has been a pioneer in the grocery sector: Sainsbury’s was the first food retailer in the UK to computerise distribution. Asda was behind the introduction of petrol stations to supermarkets in the 1970s, in addition to introducing the first plastic carrier bags made from recyclable materials in 1989. In 1961, Tesco’s Leicester store entered the Guinness World Book of Records as the largest store in Europe. On the periphery of these three was Safeway—initially a subsidiary of the American Safeway Inc., it was then sold to Argyll Foods in 1987 and the merged company was eventually named Safeway Plc in 1996.

43 years after opening, Safeway was bought by Morrisons for £3bn in March 2004, automatically catapulting Morrisons into the same region as Tesco, Asda and Sainsbury’s – thus becoming part of the ‘Big Four’ supermarkets as we know them today.

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In addition to the four already mentioned, the UK supermarket sector is comprised of another four well-known brands: Lidl, Aldi, the Co-operative and Waitrose, with the rest of the market made up of independents. Data from Kantar Worldpanel indicates that, since the mid-1990s, Tesco remains the market leader for groceries in the UK by some distance, with Asda, Sainsbury’s and Morrisons all retaining their position across the middle of the table.

There is no doubt that the strength of these four operators comes from their diversification into areas other than food. Clothing, petrol, electrical equipment and home furnishings are just some of the items that can now be bought in-store, not to mention the addition of petrol stations, insurance and foreign exchange facilities.

At the opposite end of the spectrum, independent retailers and the Co-operative, both of which have been hampered by an inability to expand to the level required by today’s consumers, have been in steady decline since the 1970s in the wake of the introduction of the new-style supermarkets.

Of the ‘Big Four’, only Tesco has grown more than 10% over the past 30

UK grocery industry market share over the last 40 years 40

Market share

30

20

10

0 1980 Sainsbury’s Aldi

years, yet even their history at the top of the table can’t change the fact that three of the four companies are showing declining sales figures, with only Sainsbury’s showing a slight percentage growth of 0.1% between 2012 and 2014.

1990 Tesco Lidl

Asda Co-op

2000 Morrisons Independents

2010 Waitrose

Telegraph, August 2014 (Kamtar World Panel)

So what has contributed to this recent decline and can it be reversed?

Changing consumer behaviour – or strategic mismanagement?

The grocery industry purport that British shopping habits have changed drastically over the past decade, with people now foregoing the weekly shop, preferring instead to spend their money across a number of different retailers including local convenience stores, the supermarket, discount stores and the internet.

Forecasts by industry body IDG seem to support this argument, reporting that in-store spending in large superstores and hypermarkets will fall over the next five years from £73.7bn to £70.8bn, with sales for online retailers and discount stores doubling in the same period.

Yet in the same breath, IDG also reports that in 2019, at 35%, supermarkets will continue to account for the largest percentage of sales

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in the grocery sector, in comparison to convenience stores at 24% and 10.5% for discount chains.

However, many analysts are questioning whether this shift in consumer shopping behaviour is actually a result of changes made by the supermarkets themselves. Whether through arrogance or mismanagement, the values the supermarkets originally built their empires on – cheap prices and the convenience of everything under one roof are slowly being eroded.

Additionally, the supermarkets themselves diversified into the very online markets and convenience stores that they are now accusing of stealing their market share. Not to mention the promotion of their own-label foods over big name brands has only served to increase the popularity of Aldi and Lidl, who pride themselves on providing high quality, own-label food at low prices.

The race for land The closure of large supermarket chains like Safeway, Netto, Somerfield and Kwik Save over the last couple of decades started a buying frenzy among the ‘Big Four’ in a bid to protect their market share, ensuring their rivals didn’t have the potential to build more stores than them. The buying of existing stores was also a quick, cheap way of gaining new premises, as the infrastructure was already in place meaning re-fit costs were minimal.

In 2007, the UK’s Competition Commission found evidence that Tesco, Morrisons, Sainsbury’s and Asda were all guilty of buying up land around their superstores in order to prevent their competitors from purchasing the space, effectively preventing any sort of competition for the consumer.

Whilst classed as anti-competitive behaviour by the Competition Commission, this act of buying land and not using it has also had much wider effects on the UK housing market, to the point that the repercussions are being felt to this day. Land banking, to give it its proper terminology, is the practice of owning a piece of land that you have no intention of building on, either to earn money by selling it at an inflated price, or to do nothing with, simply so that your competitors cannot use it.

Eager to capitalise on the growing convenience market, the ‘Big Four’ look to be moving into smaller premises and selling off the larger out-of-town sites that had previously proven so popular. Whilst this move may prove strategic in the long run, downsizing their property portfolios is actually causing their profits to sink.

In January 2015, market analysts CBRE reported that between them the ‘Big Four’ had 46.61million square feet of space, bought with the intention of building new stores. Yet only 2.8million square feet is actually being built on, which in itself is a 20% drop from 2014. This empty land is enough to build approx. 13,500 family homes, which would be a boon for local councils that are eager to up their local housing targets.

However, the selling of land bought for retail purposes to be used for residential use means the supermarkets taking a huge hit on the value of their property assets. In 2015, Tesco reported a £4.7billion charge on its property, with Morrisons taking a £1.3billion hit and Sainsbury’s writing off £628million. Whilst these losses represent a change in the value of their assets, rather than actual losses, the supermarkets have been forced to book them due to the sharp fall in sales and profits within the stores.

In real terms, profits are down for Tesco, Sainsbury’s and Morrisons, who all reported pre-tax losses in the first half of 2015 of £74million, £308million and £126million respectively.

Eliminating the competition Not content with hoarding land, there is also talk of underhand and ‘strong-arm’ tactics from the supermarkets; delaying payments with suppliers, demanding rebates and refusing to buy produce until huge discounts are applied.

In January 2016, Tesco was found guilty of ‘unfair and unreasonable’ behaviour by The Grocery Code Adjudicator (GCA), Britain’s grocery ombudsman. The report states that the supermarket knowingly delayed paying money to suppliers in order to improve its own financial position; Astonishingly, some of these payments were delayed by up to two years, forcing some smaller suppliers to the brink of bankruptcy. The company

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Total Sales 2015: £177.5bn

Other retailers £11.0bn Online £8.9BN

Discounters £12.8bn

Hypermarkets & Superstores £71.7bn

Convenience stories £37.7bn

Small Supermarkets £35.4bn

IGD UK Grocery: Market and channel forecasts 2015 - 2020

was also found to have; double-charged firms whose products were part of in-store promotions, restricted competition by charging suppliers hefty amounts for prominent shelf space, and made unreasonable deductions from payments. Referred to as “using their financial muscle to act like a mafia Godfather” by national press at the time, Tesco received no fines due to the lack of power allowed to the ombudsman by the government.

Instead, the company acknowledged their wrong-doing and complied with a number of recommendations for improvement from the ombudsman.

Asda appears to operate along the same lines. A leaked memo back in 2009 highlighted the strong-arm tactics that their buyers are expected to use when negotiating with suppliers. One such supplier who went through the ‘negotiation’ process said: Obviously, you get used to having hard negotiations but this went beyond that and it didn’t reflect the partnership approach that you want with retailers. It was all about how much you could screw out of us”. Wishing to remain anonymous, the supplier described how they were constantly penalised by the supermarket for not offering better terms and, as a result, saw their shelf space reduced as they were seen as an unsupportive supplier.

Such is the power these large supermarkets wield that in 2015, in response to the Tesco fiasco, the GCA had to issue letters to all suppliers reminding them of their legal duty to report underhand tactics. Out of the 123 suppliers approached to take part in the commissioned YouGov survey on their views on supermarkets, 83 refused to take part, even

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though their replies were anonymous. With repeated threats of being dropped for a competitor, demands for harsh payment terms and huge margins that make products unprofitable, its little wonder suppliers are too scared to speak out.

The future of supermarkets The tide appears to be turning yet again in the grocery sector. Whilst the last wave of change gave supermarkets the boost they needed to catapult them from small high street shops to the dominant force in the market, the latest round of data indicates that consumer buying behaviour has almost come full circle, with an increased desire to spend more time in multiple outlets rather than in a single store that has everything under one roof.

Whilst shopping habits may be changing, this doesn’t mean that we are spending less. IGD forecasts that the entire grocery market* will be worth £200.6bn in 2020, a 13% increase on 2015.

So what does this mean for the ‘Big Four’? Regardless of whether their recent growth strategies have been wrong or not, the fact is that their competitors are quietly gnawing at their heels, making slow but steady progress at carving away some of their market share by going back to basics and listening to their customers. The battle for Britain’s grocery sector is certainly heating up.

Supermarket Overview: Hypermarkets and superstores: Large format stores that sell a full range of grocery items and typically a substantial non-food range. Hypermarkets generally have an average sales area of 60,000 sq ft +, superstores are 25-60,000 sq ft.

Small supermarkets: Defined as food-focused stores with sales areas of 3-25,000 sq ft.

Convenience stores: Stores with a sales area of less than 3,000 sq ft, which are open for long hours and sell products from at least seven grocery categories.

Examples include SPAR, the Co-operative Group and Londis.

Discounters: Includes all sales through food discounters (Aldi, Lidl and Netto) and the grocery sales of the main high street discounters such as Poundland and 99p Stores.

Other retailers: Includes stores with a sales area of less than 3,000 sq ft, typically newsagents, off-licences, some forecourts and food specialists, such as butchers and bakeries. This channel also includes the grocery sales of predominantly non-food retailers such as department stores.

Online: Internet orders placed at grocers and online food specialists for home delivery and customer collection. *Market data includes VAT and excludes fuel sales.

Source: IGD.com

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Architecture Planning Structures Urban Design

HAVEN AND HELL Why the world’s biggest companies use tax havens

Words : Hannah Wilde | View : Anils Versemann

Tax shelters, secrecy jurisdictions, offshore financial centres: Whatever their moniker, they all amount to the same thing—tax havens. These purpose-built financial hubs are used to exploit financial loopholes, allowing their clients to bypass restrictive financial regulations, hide financial transactions and ultimately gain a much more favourable tax condition. Tax havens are by no means a new venture: it has always been possible for rich people to take their assets to other jurisdictions to escape domestic responsibilities. The first notable tax haven can be traced back to the founding of the Swiss Federation in 1848, but there is evidence to suggest that secreting assets in hidden islands was happening even in the days when pirates roamed the high seas.

Much like choosing your bank account, in today’s ‘shadow economy’ of unregulated capital you can choose your tax haven based on what it can offer you. Some tax havens specialise in optimum secrecy, some offer the opportune eco-system for tax avoidance, and some even pride themselves on their lax financial regulations. If you require something more specific, never fear—tax havens tick that box, too. Around the world there are tax havens that specialise in specific financial vehicles, like Bermuda which specialises in insurance and the Caymans with a hedge-fund specialism (having incorporated over 10,000 to date).

No matter their purpose, tax havens generally operate in the same way.

Like all financial centres, offshore banks and tax havens act as conduits, helping foreign savers channel their funds through a jurisdiction with a healthier level of tax. One of the many benefits of tax havens is that they

offer a multitude of tax-avoidance strategies, with some of the most popular including: > ‘Shell’ corporations—a non-actively-trading company with offshore headquarters that allows the anonymous owner to create a complex money trail running through countries with secrecy jurisdiction; > Tax stripping—the shifting of debt/profits between high-tax and low-tax jurisdictions for a more beneficial rate; > Transfer pricing—companies with subsidiaries in multiple countries often sell items from one subsidiary to another at price lower than market value in order to shift a portion of its income.

I know your next question: are these strategies legal? Here we stray into muddy waters, where the lines between legal and illegal become increasingly blurred. From a legal standpoint, tax evasion (defined as “the fraudulent non-payment or underpayment of tax, usually by false or omitted declarations of all due taxes”) and money laundering (“the concealment of the origins of illegally obtained money”) have been and will always be illegal. However, tax avoidance (“the arrangement of one’s financial affairs to minimize tax liability within the law”) is legal, albeit an ethical grey area.

With this in mind, the strategies of shell corporations, tax stripping and transfer pricing all come within the remit of tax avoidance, and thus are

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Geneva, Switzerland

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considered legal in the eyes of the law. The Tax Justice Network sums up tax avoidance as “getting around the spirit of the law without actually breaking it”. What makes tax avoidance legal over evasion and laundering is that companies are truthful in the reporting of their tax situation, but they are simply creative with what information is reported, how it is reported and to whom.

Secrecy sells This is where secrecy comes in. All tax havens, no matter their speciality, offer secrecy in abundance, which is what makes funnelling finances through these havens much safer and more beneficial for clients.

Naturally, in almost every market in the world, demand is huge for financial discretion and secrecy. Most tax havens enforce strict confidentiality laws, ranging from legal action to simply not recording any banking transactions at all. Even enquiring about financial details in the Cayman Islands is a punishable offense, whereas you’d be lucky to get any financial information at all in the British Virgin Islands—although on paper the island is supposedly home to over 400,000 corporations, this jurisdiction requires no financial/personal records be kept whatsoever.

Whilst technically legal but perhaps not ethical, tax havens operate a strict “don’t-ask-don’t-tell” policy: They argue their tax compliance by maintaining the transactions they help shield technically take place elsewhere, so they

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are not taxable within their domain. Strictly speaking this is true— oftentimes only the paperwork actually takes place in the tax haven itself, rather than the transaction it is documenting.

In short, these havens shift responsibility of ensuring all transactions are properly lawful and regulated over to the client—however, the problem is that by the very nature of tax havens, clients are under no legal obligation to declare these transactions.

How do tax havens actually work?

When cutting to the crux of it, tax havens are relatively simple. In layman’s terms, most countries operate a residence principle, meaning that an entity’s income is taxed according to the laws of the jurisdiction of which it is a resident. In theory, this should be no different if you keep your money in an offshore rather than a domestic account, but the reality is a very different story. For many living in countries like the UK or the USA with high nominal rates of tax for high earners (around the margins of 45% and 39.6% respectively) where the domestic tax rate is not favourable, they instead look elsewhere to pay a much lower rate.

Take, for example, a US-issued security held by a UK resident in a Swiss bank—this transaction should in theory be recorded as an asset for the UK and a liability for the US via the UK, therefore should be taxed as per the UK’s residence principle. However, by entrusting the security to an

Valletta, Malta

offshore jurisdiction (in this case a Swiss bank), these assets cannot be surveyed or captured by UK custodians as they are unrecorded, ultimately kept sheltered from domestic tax obligations through its affiliation with Switzerland.

In another instance, if a UK saver opens an account in the name of a shell company incorporated in Panama, funds are therefore assigned to Panama rather than the UK, meaning that the owner (who remains anonymous) is shielded from their domestic rate of tax and instead benefits from the much more favourable Panamanian tax.

These are but two examples of how tax havens work—the financial market is truly labyrinthine, an endless abyss of many such loopholes existing in the tax haven market to mitigate tax accountability, no matter your domestic residence.

Where are some of the most prolific tax havens?

While there are some tax havens more notorious than others— Switzerland, the Cayman Islands and Bermuda to name just a few—the true answer to this question is that tax havens are everywhere. Gone are the days of tax havens being situated exclusively offshore on some remote sandy sunshine-soaked island. The reality is that tax havens can exist almost anywhere in which tax conditions are more beneficial than in one’s own home country.

However, that’s not to say that there are not some jurisdictions that are more popular than others—the aforementioned Switzerland, Caymans and Bermuda are still up there in the rankings as notable ‘go-to’ tax havens. Switzerland in particular has made headlines for years, with its strict banking secrecy rules an open secret and boasting offshore wealth of over $2trillion, equating to the same amount as the foreign exchange of China. Furthermore, with two-thirds of this amount belonging to non-domiciled savers, Switzerland has long been the posterchild for advantageous offshore banking for foreign investors.

However, the past decade has seen an emergence of new tax havens that are taking the financial world by storm. Naturally, Europe is still on top in terms of secrecy jurisdictions—and with more than $12trillion hidden in EU-related tax havens like Luxembourg and Malta, this is not surprising.

The likes of Luxembourg (the second-largest mutual fund centre in the world after the US) and the Isle of Man in the UK (known as a low-tax financial centre thanks to its lack of capital gains tax, inheritance tax, corporation tax or stamp duty, as well as a capped income tax rate) have long since dominated the European financial landscape.

That said, the past few years has seen a new competitor entering the ring: the UK. You may scoff, but research from Oxfam shows that over one third of the world’s offshore wealth is sat in UK-linked tax havens, sitting undeclared and oftentimes untaxed. This fact becomes a little less surprising when you consider that well-known tax havens like the British

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Virgin Islands and Bermuda come under UK jurisdiction because of their status as British overseas territories, but still the fact remains that in just the UK alone a staggering £69.9bn is illegally kept from the Treasury every year (equivalent to over three-quarters of the country’s healthcare budget).

Similarly, one such country with affiliations to the UK climbing up the ranks as a top global tax haven is Ireland, a small British isle split from the UK mainland. This small island (measuring just 170 x 301 miles) certainly packs a big punch in the tax haven sector, with a large portion of the world’s money market funds incorporated here. But where Ireland really came into fruition as a tax haven in its own right was with the announcement that over a quarter of Fortune 500 companies had subsidiaries in the country in 2014, including Google and pharmaceutical giants Pfizer.

No matter their location, such is the popularity of tax havens that these jurisdictions are now at the heart of the global economy. Research shows that half of all world trade passes (at least on paper) via tax havens. Even more shockingly, researchers at Tax Justice Network have placed the value of financial assets sitting in offshore secrecy jurisdictions at an eye-watering $21-32 trillion US dollars, almost double the GDP of the UK and USA combined.

Who uses tax havens?

When the word ‘tax avoidance’ comes up, naturally one’s mind will spring to the likes of Google, Facebook, Starbucks and Apple, four of the biggest companies in the world, and four such companies who have landed themselves in hot water over their creative tax strategies in recent years.

The former, Google, came under scrutiny in 2011 for shuffling a vast majority of its profits through a Bermudian subsidiary, a transaction that effectively cut its worldwide tax rate in half. Similarly, the latter company Apple shifted its $74bn profits into offshore corporations legally incorporated in Ireland between 2009-12, paying just $1.4bn (2%) in tax.

If this transaction took place in its native USA, these profits would have been subject to the country’s 39.1% marginal corporation tax, meaning a tax bill of $28.9bn—but by conducting the same transaction via on offshore tax haven, Apple gained a massive 1,996% reduction in tax, equating to a real saving of $27.5bn.

However, it’s not just big corporations who use these tax havens: the finances of rich individuals, celebrities and CEOs alike have been known to frequent tax havens. Like corporations, the main reasons for wealthy individuals to bury their wealth in offshore bureaucracy is to get a better (marginal or non-existent) tax rate, although other reasons have been known to include hiding excess finance from spouses and limiting the amount of money earmarked as ‘taxable income’ by disguising it as something else entirely.

Such is the modern world, most developed countries charge the wealthier populace a higher effective rate of tax on their income/wealth than poorer sections via progressive tax systems. Therefore, more and more individuals seek the services of tax havens as the rich look to legally reduce their sizeable tax bill. This is becoming somewhat of a global trend—2013 saw around 8% of global household wealth held in tax havens (of which three-quarters were unrecorded).

Perhaps with one’s tongue firmly in cheek, individuals who utilise tax havens are known as, or rather employ on their behalf, “aggressive tax planners” and “creative accountants”. It has to be said that tax havens would be nothing without its chief facilitators; a pinstriped army of tax planners, accountants and lawyers perfectly placed to exploit the system.

These experts are well-versed in the creation of elaborate financial journeys in order to hide funds in plain sight. However, ours is not to question why these tax havens exist: the fact is they don’t just exist, they thrive. In all probability they will continue thriving for a long time into the future. After all, as long as there are wealthy individuals and corporations, there will always be demand for vehicles to facilitate a lower tax bill.

To delve into the world of tax havens is to throw oneself down the rabbit-hole, but if you’re still undecided on tax havens on a legal and ethical standpoint, I leave you to consider this fact—a massive 217,000 companies are supposedly registered to one address in Delaware, a known tax haven (1209 North Orange Street, Wilmington), including some of the world’s biggest companies like Coca-Cola, Google, KFC and American Airlines. If such well-known companies all avoid tax so unashamedly, surely tax havens can’t be all that bad….right?

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GLOBAL SPORTING TRADITIONS The world’s 10 most unusual sports Words : Anna-Maria Georgieva | View : Paul Prescott

In a world as big and as diverse as ours, it’s important to find common ground. We are separated by so many factors such as language, race, faith, age and education that it’s hard not to feel isolated from everyone else in your own corner of the world.

However there is one thing that is able to transcend all of these barriers sport. In sport, it doesn’t matter where you’re from, what your background is, or who you are - anyone can learn to excel at sports as long as they’re willing to put in the effort and hours.

these. Here are some examples from all over the world: Buzkashi (goat grabbing) – Afghanistan Afghanistan’s national sport is definitely not for the faint of heart.

Two teams of 10 horse riders fight for the carcass of a headless calf which has been disembowelled and filled with sand beforehand. The players wear heavy clothing and head gear to protect themselves from the opposing team’s whips.

There are many national and international competitions and championships held annually or once every number of years. Even if sport is not your thing you would have heard about the World’s biggest sporting events at least once in your life: the Olympics, Australian Open, FIFA World Cup and the NBA, to name but a few.

At the start of the game the players form a circle around the carcass.

Buzkashi has two versions:

Today, there are sports to fit just about any and all athletic skills out there - from recognisable and well-loved ones, to some that are downright bizarre.

> Qarajai: the carcass is carried around a flag or a marker and back to the team’s scoring circle.

You may have heard about such weird sports such as Gloucestershire’s famed Cheese Rolling, or the ice swimming in Russia, or even the American competitive eating, but there are even more unusual sports than

> Tudabarai: a player grabs the calf and keeps riding in any direction until they are clear of all other players.

The game can last up to several days. The winning prize is either money or fine clothing provided by sponsors.

Horses and players undergo fierce training for years before they are

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allowed to compete that’s why the best riders or chapandaz, are normally over forty years old. Riders don’t usually own their horses as they’re quite expensive to maintain.

The sport is very popular across Central Asia.

Chess Boxing – Germany, UK Chess Boxing is considered a hybrid boxing sport that was invented by French artist Enki Bilal in 1992. However, the first match was played 11 years later in Berlin.

A match consists of 11 rounds, alternating between boxing and chess. The game begins and ends with a chess round. Each round lasts 3 minutes and contestants are allowed a one minute break between rounds.

After each chess round the setup is recorded digitally and is then repositioned before the following round.

There are a number of ways to win: > By a knockout of the opponent (boxing) > By a technical knockout (boxing) > Checkmate (chess) > When opponent exceeds their time limit (chess) > When a referee disqualifies opponent (both rounds) > If opponent resigns (both rounds) Berlin is home of the World Chess Boxing Organization, which along with Chess Boxing Global organises competitions and championships around the world.

The sport is particularly popular in India, Germany, Russia and Great Britain.

Deve Güreşi (camel wrestling) - Turkey This sport has been practised for over 2,400 years.

Since a match consists of two male Tulu (wrestling) camels fighting over a female in heat, the contest used to be held during the camels’ mating season. Eventually that method was deemed too dangerous, since the animals tended to get quite aggressive. Today the female is simply paraded in the vicinity of the male wrestlers and then taken aside.

A camel can win in several ways: by making its opponent scream, retreat, or fall. An owner can also withdraw their animal if they decide to forfeit or if there’s a health risk to their camel.

Camels are decorated for the competition and paraded through the town before the actual match.

Today over 1,200 camels are bred in Turkey especially for wrestling purposes. A Tulu camel begins competing at the age of 10 and can wrestle up to a decade.

A champion camel can be sold for as much as $20,000.

Eukonkanto (wife carrying competition) – Finland Originating in Sonkajärvi in 1992 this sport is allegedly rooted in the legend of Ronkainen the Robber – a gang leader who trained his gang members by having them run while carrying pigs and heavy sacks on their backs. His gang also had a reputation for stealing women from neighbouring villages.

The track is a total of 235 meters. The contestants have to carry their wives through an obstacle course consisting of a neck-deep pool of water, pits of sand and various hurdles they need to jump over. Contestants who drop their wife face a 15 second penalty.

The winner gets to take home his wife’s weight in beer.

The requirements are simple: The wife must not weigh less than 49 kilograms and she also must be over 17 years old. However, there’s a catch: the woman being carried doesn’t necessarily need to be the contestant’s wife. She could be a friend, family member, random stranger from the street.

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Chess Boxing, Berlin

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Today the sport is played in several countries outside of Finland due to its growing popularity.

Haka Pei – Easter Island, Chile This sport is a part of the traditional Tapati Festival, which is held annually over the first 10 days of February. It’s been practised since 1963 when the Chilean people were first allowed to vote in the Presidential elections.

Today it’s a major tourist attraction today as well as a means to celebrate Chilean culture and heritage.

Competitors have to slide 300m down the Maunga Puhi volcano on sleds made of two banana tree trunks which are held together with twine. Sleds can often reach a speed of 50mph.

There is only one winner – the person who manages to stay on their sled and is quickest to reach the finish line.

Both men and women are allowed to take part in the competition and every year sees between 30-40 competitors.

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Haka Pei is considered as a high risk sport since the competitors are not allowed to wear anything other than a loin cloth along with some body paint and feathers for decoration. Several people end up in the hospital every year due to broken bones or worse injuries.

Octopush (Underwater hockey) – United Kingdom Alan Blake invented the sport in 1954 as a means to keep the divers at his club from losing shape during the winter.

The game consists of two teams of six players with up to four others serving as substitutes. A lead puck is dropped into the middle of the pool, while the players stand against the wall they are defending. Once play starts, the players dive and try to send the puck into the opposing team’s goal by using a stick.

The games are overseen by 2-3 referees who are in the pool as well, since the game is not quite spectator-friendly.

It can also be difficult to film due to the nature of the game. At some matches the audience might be allowed in the pool in order to watch

Outhouse Racing, New York

underwater for a while. Other matches would have big screens where the audience could watch the game.

to exchange their own roll of toilet paper for a new one from a nearby stand.

Each game consists of two halves (10-15 minutes long). During halftime the teams switch places. Gameplay continues until a new point is scored or a time out is called by a referee.

Finally, the team must race back to the starting point. The quickest team to finish wins the race.

Sepak Bola Api (fireball football) – Indonesia

Outhouse Racing – United States of America: Created by Darlene Kretzschmar for the 2004 Iowa State Fair, outhouse racing has gained popularity in the past 11 years and is now quite popular across the United States.

Teams consist of four people – 3 pushers who push the outhouse on the track and one person who is sitting on the toilet inside.

During the first leg of the race, the pushers must race down a 91.5m track.

The second leg of the race is the most critical one. The team member sitting inside the outhouse has to perform a number of tasks: First they must clean a chocolate-covered toilet seat using anything but their hands. Then they have to dig out a corn cob out of a tub of sludge and lastly they have

This sport is popular in the Yogyakarta, Bogor, Tasikmalaya and Papua regions of the South-eastern Asia archipelago. It’s played to welcome the month of Ramadan and it makes regular football seem quite boring in comparison.

The game consists of two teams of 11 players, much like a usual football game. What’s unusual is that it is played at night with a special ball made out of punctured coconut shells (which have been peeled in advance) dipped in petroleum or kerosene.

In preparation for the game the players are required to fast for 21 days as well as avoid foods prepared with a fire, recite special prayers (‘aurad aurad’) and go through a ‘matigeni’ – a 24 hour fast without sleep. Once

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the players have completed the aforementioned training, along with strength and skill training, they are deemed unafraid of fire and fit to participate in the game.

The players play barefoot and often bounce the flaming ball off their chests and head.

Tuna Toss – Australia The tuna toss competition is one of the highlights of the annual Tunarama Festival in Port Lincoln.

It was inspired by the manual labour of workers at the docks who unload overflowing boats of fish that a couple of members of the Tunarama Committee observed back in 1979. At those times, tuna tossing was a test potential workers had to pass in order to prove that they were fit for the job.

The fish the contestants are required to toss today is an 8kg Bluefin Tuna while standing inside a circle. Their throw is invalid if they step out of it.

The winner of the competition receives AUS$3,000 in cash.

Real fish are only used during the finals, whereas for the other stages competitors use rubber fish. This measure was implemented in ordered to help preserve the Bluefin Tuna fish since it is considered an endangered species.

Winners of the 2016 World Championship are Shantell Staunton (women) with a 12.27m throw and Michael Proud (men) who reached 18.33m.

Windsor Pumpkin Regatta – Canada The first giant pumpkin race was conducted in 1999 in Windsor by the son of Howard Dill, a breeder of ‘Atlantic Giant’ pumpkins, whose weight is between 150 pounds to over a ton.

The regatta is held annually in October on Lake Pesaquid, Nova Scotia, and manages to attract thousands of spectators. The course is 800m long from start to finish.

Before the competition, competitors showcase their brightly coloured giant pumpkins in exhibitions. The race is considered, by many, to be the highlight of the event. There are 3 types of race: motor, experimental, and paddling. The latter is the most popular out of the three and usually attracts the biggest crowds.

Nine out of the 17 races held so far were won by Leo Swinamer (1999-2007) from New Ross, Nova Scotia.

Pumpkin racing (or kayaking) is also quite popular in the United States. In fact the first person to use a giant pumpkin as a water-borne craft was Wayne Hackney of Winchester New Hampshire in 1996.

These sports really help drive what it’s all about: creativity, skill, discipline, pride and having fun. At the end of the day it doesn’t matter how conventional or familiar a sport is as long as the players and spectators get enjoyment out of it.

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Pumpkin Regatta, Utah

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

London, UK • Median Sales Price: $1,241,983* • Average price per sqft: $1,327

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

Los Angeles, USA • Median Sales Price: $601,000* • Average price per sqft: $961

New York, USA • Median Sales Price: $1,311,133* • Average price per sqft: $1,615

Mexico City, Mexico • Median Sales Price: $81,000* • Average price per sqft: $519

Sao Paulo, Brazil Prime residential rental growth by city:

• Median Sales Price: $215,000* • Average price per sqft: $171

Annual % change to Q4 2015

Los Angeles Mexico City Sao Paulo New York Cape Town London Moscow Singapore Dubai Sydney

Cape Town, South Africa • Median Sales Price: $75,780* • Average price per sqft: $194

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Singapore Moscow, Russia • Median Sales Price: $392,120* • Average price per sqft: $813

Dubai, UAE • Median Sales Price: $297,234* • Average price per sqft: $520

• Median Sales Price: $1,190,347* • Average price per sqft: $1,897

Sydney, Australia • Median Sales Price: $624,657* • Average price per sqft: $910

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Starin offers the best investment opportunities Starin provides a safe, easy, low-risk environment in which to invest and do business.

Innovation

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STARIN Funds are developed to provide access to Australian direct property in the thriving healthcare and hospitality sectors, giving investors a single property solution for their investment portfolios. The Fund is designed for investors seeking an investment which provides the potential for sustainable income and capital growth over the long term with target returns on capital being 50%* and annual returns being 12%*.

WHAT’S THE ALTERNATIVE? High Fashion

Words : Hannah Wilde | View : Tinxi

Everyone knows that the key to any successful investment portfolio is diversification—the more asset classes you invest in, the more mitigated your risk of financial loss becomes. Naturally, this leads investors to consider a myriad of unconventional assets, with the latest investment de jour being high fashion.

As fictional fashionista Carrie Bradshaw once mused: “I like my money right where I can see it—hanging in my closet”. And it seems these are words to live by, as thousands of savvy shoppers are now looking towards designer fashion to provide tangible (and increasingly lucrative) investment opportunities.

The phrase ‘investment pieces’ has been making the rounds in fashion circles for years—denoting an expensive ‘must-have’ designer piece like a Burberry trench coat or a pair of classic Louboutin shoes that have lasting use and never go out of style—but in the past few years, people are taking the idea of fashion as an investment much more literally. Investors are jumping on the luxury bandwagon in their thousands—the prices of luxury items are far outpacing inflation, with luxury goods rising 4% annually between 2012 and 2014. However, designer fashion is in a world of its own, with experts valuing the market at between 20-30% a year in terms of value, with some designers even eclipsing that.

Investing in established, high-end brands like Chanel, Louis Vuitton and

Hermès can always be seen as a profitable venture, with these brands always providing good investment returns on the resale market. Even the most nondescript pieces by iconic designer brands can command anywhere between 80-160% of its value even if not in mint condition.

However, the real money can be found in the limited edition pieces that are highly sought after on the secondary market, so much so that auction house Christie’s even has an entire department dedicated to auctioning luxury fashion and accessories.

Delving into the intriguing world that is high fashion investments, it seems that for any fashion novices there are three main areas to invest in: 1. Vintage The world of vintage fashion has seen a huge uplift in resale activity of late, with substantial demand for preowned fashion pieces. A modern misconception, vintage doesn’t necessarily mean old in fashion terms, it means that the item has a true archival value and is an important piece of fashion history intended to be preserved. For those sceptical of the value of vintage fashion pieces, High50 explains the process of how clothes with vintage status earn their profitability: “Second-hand clothes, bags and shoes become vintage, and each time they upcycle they upscale in value, doubling and tripling their prices until they are reborn as ‘pieces’, something akin to art, and something that can be profitable”.

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Auction-houses and online fashion consignment websites have hundreds of success stories about the sale-ability of vintage fashion: > A 1920’s Chanel dress that was bought for £150 we resold for £250,000 (a 16,655% return); > A private investor who bought a vintage Lanvin dress for £60 sold it at auction for £7,000 (a 11,566% return); > An iconic Yves Saint Laurent dress from the 60s was bought for £2,000 and resold at auction for £28,000 (a 1,300% return); However, if you are looking to invest in vintage fashion, it should be remembered that in much the same way as fine wine, the history and provenance of vintage fashion is crucial. First and foremost you need to verify an item’s authenticity before investing, as the designer resales market in particular is flooded with counterfeit items masquerading as the real deal.

Similarly, with vintage it is important to understand the designer you are buying into—items of this calibre depend almost entirely on its heritage and designer label. Its value is so inexorably linked to the designer that the pieces that generate the most interest on the resale market are those belonging to a designer’s most famous or influential collections.

Just like artists evolve and have different styles over their lifetime, so too do designers, so director of fashion and textiles at Christie’s Patricia Frost

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recommends buying vintage pieces “synonymous with a designer, and from their most important era”. Irish fashion and lifestyle magazine Image recognises that, particularly for investment purposes, the best designers to look for at the moment are: “Poiret in the beginning of the 20th century, Alexander McQueen at the end; Saint Laurent from the 1960s-70s; 1960s Balenciaga; 1920s-30s Vionnet or Lanvin; and 1940s-50s Dior”. To reiterate, a mint-condition early 1920s Madeleine Vionnet can fetch anywhere from £8,500 and beyond at auction.

This is proof enough that there is good money to be made in investing in pieces of vintage that are considered ‘timeless classics’, but always remember to have your item verified and valued by a professional before considering it as an investment piece, as this market is more like a game of Russian Roulette—you can never quite be sure which items will fetch five figures and beyond when the time comes for it to be resold.

2. Haute Couture On the opposite end of the spectrum is Haute Couture. This type of fashion is sold on the secondary market in much the same way as vintage fashion, but with one major difference—the price tag. Unlike the vintage fashion arena where there have been plenty of cases like one seen at Christie’s auction-house in which a private investor bought an original Elsa Schiaperelli jacket on eBay for £15 and had it valued at auction at £10,000 (a 66,500% return on investment), there are no such opportunities in the Haute Couture sector simply because this ultra-exclusive sector demands a massive outlay from the beginning.

Hermès Bag

Seen as the ultimate status symbol, Haute Couture is translated from its native French to mean ‘high sewing’, which has been defined by later generations as meaning ‘high fashion’. Items bearing the couture seal are made-to-measure by hand, with each piece being individually commissioned for its original owner and cannot be bought in stores.

However, what makes Haute Couture so exclusive (and thus so highly sought-after by fashionistas and collectors alike) is that not all fashion houses can boast Haute Couture status—the system is incredibly tightly regulated, with a design house only able to identify as a Haute Couture brand if it adheres to the requirements of the French Ministry of Industry and the Fédération Française de la Couture. Such stipulations include operating a full-time atelier in Paris with no fewer than 20 workers (known affectionately as ‘les petite mains’, or ‘little hands’), and the presentation of two fashion collections per year in January and July. Such Haute Couture fashion houses include Dior, Chanel, Valentino, and Jean-Paul Gaultier, to name but a few.

With such a tightly regulated system and some Couture pieces taking up to 700 hours to hand-create by 20 specialist seamstresses, it is unsurprising that fashion boasting the Haute Couture status can justify their eye-watering prices. Just the most basic piece of Haute Couture can start at a minimum of £8,000, with evening and formal wear known to even command up to 100 times this figure. Therefore, on the secondary market it’s not unheard of for pieces of this calibre to fetch resales prices in the millions.

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This highly specialised and exclusive section of the fashion market means that, while there’s no such thing as a relative ‘bargain’ with Haute Couture, there is a high possibility of investing in a piece with huge potential on the resale market. Take, for example, the story of a one-of-akind 1924 hand-beaded ribbon dress. This dress, adorned with the label ‘Gabrielle Chanel’ in the days before the iconic French fashion-house became known by its current moniker Chanel, was bought by a private investor in November 2012 for £9,000. A large price initially but a worthy investment, as the owner just two years later refused an offer from Chanel itself to buy the dress back for twice the price. This shows the sought-after status of Haute Couture pieces, so much so that in this case even the designer to whom it once belonged wanted it back, and was willing to pay a premium for such a privilege! However, this is not just exclusive to Chanel’s vintage Couture—sales of the label’s spring/ summer 2014 collection rose by 20% in the same season it was launched, showing heightened demand for such a luxury only affordable to the crème-de-la-crème of the fashion world.

However, the real jewel in Haute Couture—particularly if you are purchasing for investment purposes—are those pieces with a celebrity provenance. Bespoke pieces created for and worn by well-known figures have been known to double in price, with some rising even higher. An example of one such investment was an auction lot of 14 dresses worn by the late Princess Diana, bought in 1997 for $870,000 and sold in 2014 for nearly $3m. When adjusted for inflation, this makes the real mark-up for such celebrity-endorsed Haute Couture pieces a staggering 133% (a year-on-year value rise of 7.8%).

Likening the process to investing in a rare piece of art, curator of Haute Couture at fashion consignment website 1st Dibs Clair Watson says: “Haute Couture is the ultimate fantasy; it is the dream of aspiration, a lifestyle of luxury”—and it seems people are willing to pay a lot for this aspiration of luxury on the secondary market. Haute Couture is a less risky approach than gambling with vintage fashion; with Haute Couture, you get what you pay for, but the trouble is you pay a lot for the privilege.

3. Accessories Vintage and Haute Couture fashion have proved themselves as sound investment choices, but experts and fashion aficionados alike all agree that the real money can be found in designer bags, the ultimate in Prêt-àPorter (ready-to-wear) fashion. The resale market for designer accessories is huge, simply because the one-size-fits-all universality of bags means that the potential customer base is not limited to particular sizes, shapes and fits. Over the past decade alone, the value of sought-after handbags has risen by an average of 8% per year, matching and even in some cases surpassing the annualised returns of the FTSE All-Share Index.

In the accessories market, invest in classics like Chanel’s 2.55, the Fendi Baguette and the Neverful by Louis Vuitton and you’d be onto a winner—a bag bearing the Chanel name was sold in just 17 seconds on Vestiaire Collective, a specific fashion resales website, making it the fastest-selling bag in the company’s 6-year history. Additionally, research shows that the price of a Chanel handbag has risen over 117% in the 9 years from 2007 (a year-on-year increase of 13%), showing that demand for luxury bags is all but insatiable.

However, this point has never been more acute than in the case of Hermès. Never has a designer brand had so much resale power—a cursory eBay search shows pre-loved Hermès Birkin bags selling for almost as much as new ones, and the limited editions selling for ten or twenty times their original value. The sky is the limit with Hermès, as handbag expert Matthew Rubinger attests: “Hermès bags appreciate the moment you buy them…tried and true pieces increase their value over time”. Naysayers may be sceptical about the resale value of such an item, but figures don’t lie. The most basic Birkin bag cost just $4,000 in 2001, but now the same bag retails for $10,000, a 150% growth over 15 years— and this is just on the primary market. The secondary market for Hermès is explosive: A one-of-a-kind Birkin, given the name ‘Geranium Porosus’, retailed at $6,000 but sold at auction for $125,000, a huge 20 times its original value and meaning a huge 1,983% mark-up for the owner of “the world’s most collectible bag”.

This is not the only success story for Hermès bags—the resale market is overrun with the brand, with even the non-limited-edition used bags commanding between 80-125% of their original resale price. Even

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Louis Vuitton Bag

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professionals have been known to underestimate the value of such bags: a vintage Hermès Cordelier crocodile sac from 1961 was valued between $2,000-3,000, but actually sold in July 2008 for $6,875 (a 175% increase).

Another example saw a bespoke Hermès Special Order Horseshoe Birkin increase 366% from its starting bid of $7,500 to finally sell at auction for $35,000.

Such is the value of Hermès bags that people are already in the market for buying these bags just to keep for investment purposes—it is not uncommon for investors to purchase one of the brand’s iconic bags (which range in price from $12,000-$223,000) with the intention of leaving it untouched to let its value appreciate over time.

Bazaar, which shows that a Birkin bag has proved a less risky investment than buying gold or entering the stock market. By comparing the S&P 500, the gold market and the price of a Birkin bag over the same 35-year time period, the research showed that the stock market had a real return average of 8.65%, gold an average of 1.5%, and amazingly the Birkin received a value increase of 14.2% over the same period. The research also noted that gold and stocks can be volatile, yet it seemed that Birkin bags kept their value and only become more valuable over time. Therefore, the same publication has rightly praised the idea of Birkins as true investment pieces: “A classic bag is always a good investment—quality craftsmanship and elegant designs never go out of style”.

Demand for designer goods

But what is it that makes these particular bags so investible? Their must-have status is enhanced by their limited production runs and superior quality, but what really sets these bags apart is that you can’t just go into a Hermès store and pick up one of their iconic bags—they have an exclusive waiting list that often spans years.

If you still aren’t convinced about the sheer investibility of a Hermès, consider research published in reputable fashion magazine Harper’s

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I know what you’re thinking—who would buy an old or used clothing item or accessory? Well, if the item in question is particularly coveted or a limited edition, there is huge demand from four main sources: collectors who wish to privately own the piece, investors who wish to sell on the piece for a profit, consumers who wish to buy to wear, and museums who wish to display the piece as an exhibition feature. The market for resale fashion has exploded in the past 10 years, extending way beyond

Chanel Bag

elite auction houses and into the mainstream, penetrating the high street with vintage clothing stores and the Internet with bespoke fashion resale websites.

But why fashion, and why in particular high fashion? Founder of Baghunter.com Evelyn Fox perfectly sums up the fashion market: “The ultra-luxury fashion market is impervious to economic factors that can affect other industries like high-street retailers and stock markets”. With the current fashion market blooming as never before, there has never been a better time to consider high fashion as a tangible and lucrative investment opportunity. JB Luxury Brands Fund shows that global wealth creation continues to outpace world GDP so global spending is increasingly turning to luxury goods.

No matter which investment strategy you choose, you need to know the market in order to make sound investment decisions—you need to know your Temperley from your Topshop, your Fendi from your Forever21. So what are you waiting for? Pull up a chair, grab the latest copy of Vogue, and start planning your next investment!

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Q &

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It’s time for GPS to answer some of our readers most pressing questions Words : Michael Smith

Q.

Q.

I’m looking to switch to an independent lettings agent as I’m having trouble keeping on top of my portfolio. Is it a good idea to use an agency?

I’m currently looking at investing in an off-plan development, is this something I should avoid?

A.

A. Having had complete control over your portfolio up until now, I can imagine that switching to an agency can be a daunting notion. Using a lettings agent is really something you should consider.

It allows you to be in more places at once when trouble is waiting around the corner, and can give you peace of mind your tenants are getting the help they need 24 hours a day. This will reduce the risk of void periods and ensure stronger returns.

With all investments there are the usual risks. With off-plan investments there can be a risk the developments may fail to meet the requirements of planning.

However if you choose a reputable company with a strong track record, I’d say it’s certainly something you should look at. The positives of off-plan are low entry levels plus the added benefit of capital appreciation. In some cases, strong property markets can deliver 25% premiums on their original price once completed.

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

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Q.

Q.

I’ve seen that the UK market is showing really signs of growth, should I be looking to invest there now?

I have recently purchased a student property, will local taxes be similar to those paid by residential tenants?

A.

A.

One of the most common locations for investors to entertain is the London market. With a strong track record for growth it can be a tempting option.

As a registered landlord, your tenant is liable for the Council Tax payable on the room. However, students are exempt from paying Council Tax, providing they are in full-time study. The student will provide you with the necessary paperwork so that the application for tax exemption can be completed. This process will need to be completed for each tenant cycle.

Having said this, the UK’s regional cities are now looking like a strong alternative. Manchester, Leeds and Liverpool have seen large growth with supply currently short of demand. These locations also off the added benefit of lower entry levels. If you look for city centre accommodation in these cities, there are great opportunities to be had.

Another benefit of using a lettings agent is this process can be completed by them, or by the block management company if you have invested in a student apartment development.

ASK THE EXPERT

Q.

Q.

Are there any trends in the market that Rightmove has noticed in 2016?

How has rising unaffordability and the supply/demand imbalance affected the UK property market?

A.

A.

The momentum built up in the 2015 property market has continued into 2016. Rightmove had record levels of both traffic and enquiries throughout January, with agents reporting some last-minute investment property sales before the stamp duty changes come into effect in April.

There are signs of a small uplift in the number of properties coming to market, but there needs to be significantly more to meet the increased demand from owner-occupiers.

There is record demand from home-movers, yet supply is still scarce in many areas. This has led to upwards price pressure, with the Rightmove House Price Index reaching a number of record highs in 2015. We predict further house price increases of 6% nationally in 2016. In the capital we expect outer London to rise quicker than inner London as people look for better value further out from the centre.

Q How do you think the buy-to-let stamp duty will affect the market for UK investment properties?

A. The new taxation on buy-to-let may not deter long-term investors looking more for capital appreciation, but agents have been reporting some last-minute purchases from investors before April. This may slow down once the new stamp duty comes in, and could give some first-time buyers more of a chance in areas where these types of properties are in short supply. First-time buyers may also be encouraged by low interest rates and initiatives such as Help to Buy.

Q. What about the overseas property market—are there any notable trends in property purchase overseas?

A. The number of enquiries from home-hunters on Rightmove Overseas increased by 50% last year compared with 2014, and our most popular locations for people in the UK looking to buy abroad are Spain, France, Italy, Portugal and the US. Hotspots in these areas including Malaga, Rhone-Alpes, Tuscany, the Algarve and Florida. We recently carried out a survey among overseas buyers and found that the majority are looking to buy a second home, rather than relocating.

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SHOULD I MOVE TO PLOVDIV? Words : Anna-Maria Georgieva | View : Ross Helen

Plovdiv is the biggest city in Southern Bulgaria, just a couple of hours’ drive away from the Turkish and Greek borders – a fact its residents often take advantage of and indulge in weekend getaways and shopping sprees. Plovdiv is also only an hour and a half away from Sofia (Bulgaria’s capital and biggest city) and a three-hour drive from the Black Sea.

colourful houses provide a refreshing and stark contrast to the quick-paced city life. Many of the houses in the ancient town have been converted into museums, galleries and pubs, thus making the area a popular night venue for people of all ages.

At the feet of the old town is Plovdiv’s most popular district – Kapana. A place whose name literally translates into “The Trap” for its twisting alleys that are very easy to get lost in if you don’t know where you’re going.

Kapana has been the home of artists, craftsmen and musicians for over Plovdiv’s motto is “ancient and eternal”. It’s oddly fitting, too, since the city five centuries. There are many small shops offering unique, hand-crafted boasts a history of 6,000 years that’s incorporated into its architecture, life, goods that can’t be found anywhere else in the city. There’s anything from culture, and spirit – you can’t escape it no matter how hard you try. Even if jewellery and clothes, to organic homemade food and drinks, to art and you’re not a history enthusiast, you’ll find that it grows on you once you’ve home décor. spent some time in the city.

Plovdiv is second only to the capital when it comes to its endorsement History is a large part of Plovdiv’s identity. Artefacts and ruins ranging from of visual and performing arts. The sight of street artists performing for Antiquity to the Bulgarian Revival period (19th century) decorate the city. tips along the main street is one that is very familiar to locals. During late The historical, ethnographic and archaeological museums are excellent spring and summer (the dryer seasons) it’s not uncommon to see various opportunities to learn more about Bulgarian life and customs for less than photography or sculpture exhibits all across the main street as well.

3€ per visit.

The annual “Night of Museums and Galleries” (referred to simply as “The Night”) is the highlight of September. It falls on a weekend – usually the Yet Plovdiv’s most valuable historical treasure is, without a doubt, the first before or after the start of the new academic year – and it celebrates ancient town. It’s the home of various institutes for visual and performing arts and culture. On this night all museums, galleries, exhibits and shows arts, as well as Plovdiv’s roman amphitheatre (still functional to this day) are free to enter and enjoy. The event is supported by the local authorities which houses many concerts and festivals during the summer and autumn and is staffed entirely by volunteers. seasons. The narrow, twisting cobblestone alleys and 18th-19th century The city spreads across the feet of six (previously seven) hills, prompting Bulgarians to refer to it as “the city under the hills”.

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Roman theatre, Plovdiv

Plovdiv has a very young and vibrant atmosphere – mostly due to the large number of domestic and international students studying in Plovdiv’s universities. As a result Plovdiv offers a diverse nightlife – from “hole-inthe-wall” style pubs to high end nightclubs. The City garden is a very popular evening venue in the hot summer months and not just for the relaxing stroll and gulp of fresh air, but for the lights and music show at the garden’s fountains too.

There’s plenty to do in the day-time as well: Plovdiv is the home to Europe’s longest main street – a total of 1.75km worth of cafes, shops, and venues to spend time and money in. The main street is always full of people and bustling with activity. Shopping is somewhat of a local “sport”: between the Main Street, two shopping malls, and “Ivan Vazov” Street with its 750m of shoe shops – Plovdiv might prove to be heaven for some and (financial) hell for others.

The growing international population in the city has also contributed to a diverse variety of restaurants, cafes and bars. The most popular restaurants are located in the city centre. There’s everything from Bulgarian and Balkan cuisine (Turkish, Greek, Serbian) to Armenian, Russian, Mediterranean, German, Chinese and Italian gastronomy. In terms of cafes and pubs there’s an Irish pub and two Italian gelato cafés. Another exciting venue is the “Central Perk” café – yes, it’s entirely inspired by the hit American TV series “Friends”. It’s got the famous orange couch, music talent nights and big colourful mugs (the only thing missing is a bartender called Gunther).

The Plovdiv area offers a lot to see as well, for example: Plovdiv airport, just a 10 minute drive south of the city, is home to the National Aviation Museum. A little further south, at the feet of the Rhodopi Mountains, is the small town of Asenovgrad famous for its wines and alcoholic beverages (among which is the national Bulgarian spirit – Rakia). A local wine that is an absolute must to try is the Asenovgrad Mavrud – an award-winning red wine that’s indigenous to the area.

Plovdiv is also home to the Kamenitza brewery which produces one of Bulgaria’s most popular beer brands. Plovdiv residents take great pride in it and it’s very rare to see a local drink a different brand. Dining out can cost anywhere from as little as €10-15 to about €50 (if you really feel like splurging).

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Plovdiv is a very active city in terms of sports. The most popular sport is football – there are a total of five stadiums in the city, the biggest of which is Plovdiv Stadium with a total of 55,000 seats. The city is home to four Bulgarian football teams: PFC Botev, PFC Lokomotiv (both are a permanent fixture in the Bulgarian football league), Maritza FC and the Spartak Plovdiv FC. There is a very strong rivalry between fans of Botev and Lokomotiv and football matches between the two are often eventful.

Plovdiv’s most famous (now retired) football player is Hristo Stoichkov.

Main square, Plovdiv

Tennis is also a sport that locals take pride in. There are several tennis courts in the Plovdiv Sports Complex (the biggest one in South-Eastern Europe). Plovdiv is also the home of Bulgaria’s top-ranking female tennis player – Tzvetana Pironkova (current international rank #93).

German, Spanish or Russian in addition to their first language.

Another popular sport in Plovdiv is boxing. The city has been the host of the international “Strandzha” boxing tournament for over 60 years.

That said the people of Plovdiv are very proud of their city and community.

There’s a very serious rivalry between Plovdiv and the Bulgarian capital – Sofia. A sure way to anger a local is to imply that Sofia is better at something than Plovdiv.

That being said, the most popular sports venue in the city is the rowing base, known simply as “Grebnata”. It has an Olympic-sized channel as well as a newly refurbished track around it that people use for jogging or simply a walk with some friends on a lazy afternoon. The rowing base is located in the middle of a park in the Western district of the city and is a part of the Plovdiv Sports Complex as well.

The Rhodopi Mountains ( just a 20 minute drive from the city) offer a large variety of hiking and camping opportunities. One of Bulgaria’s most famous (and popular) ski resorts, Pamporovo, is also located there and is a mere 90 minute drive from Plovdiv.

But who cares how great a city is if the community is sub par? Luckily for people who live in Plovdiv (and any future residents) that’s not something they need to worry about. As a whole the community is very warm, friendly and welcoming. Due to the variety of language-based secondary schools a significant number of people are fluent in English, French,

The overall bohemian and artistic atmosphere of the city contributes to the community’s easy-going nature.

There’s one thing that you need to know about the people of Plovdiv, though – they are very likely to be of little help when it comes to offering directions. It’s not that they would refuse to point you in the right direction, but rather that there’s a trend around the locals to either refer to different streets and venues with their old (communist, pre-1990) name, or with a local nickname that can leave tourists and new-comers very confused.

Getting yourself a map might be a good idea.

Currently, Plovdiv is undergoing a lot of changes and development, mostly in preparation for its role as European Capital of Culture 2019. There are various schemes, launched by the local authorities and the non-profit organization “Plovdiv-Together”, looking to boost investments in the city, as well as infrastructure and a more eco-friendly city-life in general.

So what do you say, does Plovdiv sound like a place you’d like to live?

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

Over the next 32 pages you will see a selection of the investment opportunities available through Knight Knox.

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

X1 AIRE Leeds PRICES FROM :

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

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

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

SILKHOUSE COURT Liverpool PRICES FROM :

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

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

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

RATHMELL HALL York PRICES FROM :

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

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

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

NOW SOLD OUT

BRIDGEWATER GATE Manchester PRICES FROM :

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

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

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

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

ADELPHI WHARF PHASE 2 Salford PRICES FROM :

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

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Adelphi Wharf Phase 2 contrasts city and country living.

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

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

X1 THE PLAZA Manchester PRICES FROM :

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

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

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

NOW SOLD OUT

X1 LIVERPOOL ONE PHASE THREE Liverpool PRICES FROM :

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

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

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

X1 MEDIA CITY TOWER 2 Salford Quays PRICES FROM :

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

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With 1,100 apartments covering an area of approx.

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

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

NOW SOLD OUT

MULBERRY PLACE Salford PRICES FROM :

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

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

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

X1 THE TERRACE Liverpool PRICES FROM :

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

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

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

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Maid Marian House Nottingham PRICES FROM :

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

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

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

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

NOW SOLD OUT

ADELPHI WHARF PHASE 3 Salford PRICES FROM :

TBC > TBC NET rental returns Excellent local infrastrucutre 10 minutes walk to central Manchester Experienced managing agent Great transport links and close to shopping Chronic undersupply of housing in Manchester and Salford

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

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

COMING SOON

X1 MEDIA CITY TOWER 3 Salford Quays PRICES FROM :

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

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Introducing Tower 3 of X1 Media City, the largest residential development in the North West.

The penultimate tower in X1 Media City will follow in the footsteps of its predecessors, offering high-end residential living in a highly sought-after area. This development’s stunning glass-fronted exterior perfectly epitomises the luxury within, and is just a stone’s throw away from the iconic MediaCityUK site on the picturesque Salford Quays waterfront.

COMING SOON

NOW SOLD OUT

THE COURTYARD AT X1 THE QUARTER Liverpool PRICES FROM :

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

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

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

SPECTRUM Manchester PRICES FROM :

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

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

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

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

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BENTO Sheffield PRICES FROM :

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

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

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

NOW SOLD OUT

BELLS COURT Sheffield PRICES FROM :

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

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

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

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

LOOKING FOR PROPERTY TO BUY? BE SURE TO VISIT THE

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

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

E FREW

SHO Y ENTR

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

THE BEST OF UK BUY-TO-LET

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

PRICES FROM ÂŁ94,995

Contact Us: +44 (0)161 772 1370 | info@knightknox.com www.knightknox.com