MARCH 2011 |www.opp.org.uk


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EDITORIAL Group editor Geoff Hadwick ✆ +44 (0)208 734 3970 geoff .hadwick@richmondgreengroup.com


INTERNATIONAL PROPERTY REPORTER Amit Katwala ✆ +44 (0)208 734 3973 amit.katwala@richmondgreengroup.com


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IN THIS MONTH’S OPP...


Nick Byrne OPP Interview (p64) Waterside Properties boss Nick Byrne talks to OPP about his company’s growing network of agents specialising in homes located near to rivers, lakes and seashores. How does this global niche player fi nd new opportunities and how does it attract franchise, joint venture and affi liate members to join the group?


Lindsay Kinnealy Legal column (p32) Home is where the heart is, but where’s my domicile address? When clients prepare to relocate overseas, do they think through all of the legal implications? What are the pitfalls?


Clare Nessling Mortgage distress (p47) Distressed property may be producing opportunities for bargain hunters, but if you’re not lucky enough to be a cash buyer, how easy is it to get hold of readily available fi nance?


Claire McCarthy Legal distress (p48) The off -plan sales boom in Dubai was a disaster waiting to happen. As thousands invested, hoping to sell on at a profi t, high levels of risk built up. What does it all mean now?


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Please note that the cost of a yearly subscription to OPP is £71.50 (UK), £110.50 (Europe) and £123.50 (rest of the world).


Charles Purdy Political distress (p50) Why do governments seek to live beyond their means? Is it really the need to win the next election and to keep the voters on their side that makes polticians go on spending recklessly?


Stay positive in these negative times


Group editor Geoff Hadwick


n the surface, distressed property markets do not appear to be good news for anyone. Homeowners get pushed out as repossessions spiral, buyers lose confi dence, values fall like a stone, agents and developers panic in the squeeze, and lenders stop lending. But the cycle is as old as time and every winter is always followed by a spring. It might be a cliche, but it is worth trying to see a distressed market not as a threat ... but as an opportunity.There is always someone doing well in bad times. Affordability, bulk deals, and innovative mortgage products can all be the unexpected benefits of a market that is as tough as old boots. Necessity, after all, is the mother of invention. And the need is certainly there. There is a lot of property to shift in markets as diverse as Spain, Portugal, Dubai and Florida. According to Spain’s National


O


Institute of Statistics home prices there fell 2.2% year-on-year in the third quarter of 2010 … in a country with at least 1 million empty holiday homes. And the experts predict that home prices in Spain may continue to drop for at


least another two years, which has led several overseas investors to keep a careful eye on the country. They are getting ready to pounce when the right investment opportunity comes along. The challenge is how to make money out of all that chaos. The figures might make grim reading at first, but all is not lost. As Stephen Anderson, managing


director of Infinito Real says in OPP’s special distressed property report this month: “right now, it’s clearly a buyer’s market, but that doesn’t mean that property can’t sell, and sell quickly, if the vendor follows certain criteria.” According to Anderson “most


buyers want a deal, so be prepared to sell for a good price. Forget about the original purchase price and focus on today’s market as what can be considered a good price now is not the same as a good price when the property was purchased.” Think differently and look around. Andrew Broeren of Paragon goes for mid-west towns in the USA where rental demand is high and the competition is less intense. In other words, stay positive in these negative times.


Editor’s letter • Geoff Hadwick ✆ +44 (0)208 734 3970 geoff .hadwick@richmondgreengroup.com | 5


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