Published: 6th November 2008
Industry Millionaire: Xavier Wiggins talks to Globaledge
OPP founder Xavier Wiggins is arguably the most influential man in overseas property today. He took some time out of his busy schedule to spend our fictional investment pot on property across the world.
Ashley Rigg: Hi Xavier, it’s been a while. How’s business?
Xavier Wiggins: Not bad. It’s very hectic though. There’s so much to do in the build up to the show.
AR: Let’s kick things off with a hypothetical £25k. Where do you fancy spending it?
XW: It’s not a great deal of money so the options are limited. One of our partners has just come back from Isla Margarita and were waxing lyrical about it. It’s stunning, beautiful beaches and it’s right at the beginning of its investment journey, its considered one of the largely untouched islands of the Caribbean – aptly named the Pearl of the Caribbean.
AR: Is it a safe investment? Some people have concerns about Hugo Chavez?
XW: I’m not sure about Hugo Chavez either but the economy is going from strength to strength with a steady GDP annual increase of over 10%, being in the Caribbean it has some autonomy from Venezuela, the government is also investing heavily in tourism and strengthening its international image to reduce its reliance on Oil revenues.
AR: What could you get for your money?
XW: I’d buy on one of the beaches, probably Caracola or Playa Caribe. I’d buy in one of the developments with a robust management solution. You could get a 75 square metre apartment for about £60,000 with a 30% deposit. To make the most of the investment, you’d need to lease your apartment back to a hotel group to manage on your behalf.
AR: Anywhere else you’d consider in that price range?
XW: With £25k, I’d probably buy into a fractional ownership scheme. The Best Group is offering fractions of a development in Dubai for £16k. It’s 33% below market value. All the due diligence is done, it’s a good investment.
AR: I’ve read conflicting stories this week about property prices in Dubai. How do you see the market?
XW: Over the long term it will be fine. There may be a controlled correction but it’s one of the few places where supply and demand can be controlled by the government. They’ve invested too much to let it fail.
AR: Thanks Xavier. Let’s take it up to a £100k. You’ve obviously got a lot more choices with this one.
XW: With £100k, I’d look to spread it over several fractional investments. David Lloyd Resorts are offering fractional investment options in Morocco, St Lucia, Thailand and Dubai. Fractional ownership is a great concept and David Lloyd offers you a guaranteed exit after 3 years. You get an independent valuation and if the price has gone down, you get a guaranteed 80% of the purchase price.
AR: Sounds good. It’s a big brand name as well.
XW: Absolutely, it gives you peace of mind. They are not going to ruin their reputation by messing you around. The other bonus is you get access to their five star resorts in top locations across the globe.
AR: Sounds great. I’m a big tennis fan. What would you get for your money in these places?
XW: You receive four weeks in each location but there is the opportunity to exchange between locations and so you can take advantage of benefit rights across many locations of the world.
AR: Any particular reason for those choices of location?
XW: I like going on holiday to different destinations each year. I think it’s a nice basket of countries. Morocco for its rustic feel, Dubai for its pure silliness, Thailand for its Asian charm and St Lucia for its Caribbean post card beaches. It also spreads the risk from an investment perspective.
AR: Fair enough. Let’s make it interesting and raise the stakes to £1 million. Where would you invest it?
XW: Are we talking about lifestyle?
AR: Either really. Let’s start with lifestyle.
XW: It has to be France then. With a million, I’d put half in Val d'isere and the other £500k in Aix-en-Provence. I love the South of France. The food, the wine, the culture, everything! Val d'isere is one of the top Ski destinations in the Alps. A 3 bed in the centre, about 5 minutes from the slopes would set you back around €700 000. They’ll always be a market for this kind of property.
AR: I’ve been to Val d’isere but I have to admit I haven’t been Aix-en-Provence. What’s it like?
XW: It’s beautiful, very picturesque. The café lined Cour Mirabeau is idyllic as are the two main squares. There is a big student population which gives it a buzz. It’s a small city that combines so much of what I love about France. You are within an hour from a choice of beaches too. You fly into Marseille or can get a TGV (train) down to Aix. I’d look to buy somewhere to the south of Aix. For half a million you could get a 3 or 4 bedroom house with a pool and a reasonable garden. I could also be tempted to spend the full million on a rather bigger pad here.
AR: How’s the property market in France?
XW: There are so many micro markets in France, they are all different. In general, prices are falling but it’s not suffering as much as Spain or the UK. Over 5 years though I think it will be fine.
AR: How about from an investment perspective. Where would you spend the million?
XW: I’d probably look at a basket of fractional property as I said earlier. I’d also look at distressed property in Florida. The market may not have bottomed but it has to be close. Orlando ticks so many boxes. It’s hard to beat Florida for the pure quality of service, the amount of attractions, the lifestyle and the sheer amount of space there is.
AR: Anywhere else you’d consider?
XW: I’ve always thought investing in upcoming Ski areas is a good strategy, particularly looking at locations where ski lift networks are being extended. If you’d have invested in property when the Ski lifts were extended from Tignes and Val d’isere in the nineties, for example, you’d have made a fortune.
AR: Sounds like a good strategy to me. Anyway I’ll let you get on with your show preparations. Thanks for your time. Catch-up with you in a few weeks.
XW: Pleasure, see you soon.
About OPP Live
OPPLive is now in its fourth year. It is described as “where the overseas property industry meets”. For the first time it will be joined by a new sister show The International Property Developer (IPD) Confex. Across both shows there will be about 170 exhibitors including developers, lawyers, banks, industry associations, marketing specialists, fractional consultants, master planners, golf course designers, interior designers, media owners, Russia market specialists and more.
The conference programme includes 70 seminars, panel discussions and interviews. 2500 to 3000 visitors are expected at Excel, London on 25 and 26 November. The curtain raiser will once again be The OPPLive Gala Dinner held this year at The Brewery in The City of London on the evening of 24th November. Over 400 people will be present to see the presentation of this year’s OPP Awards. The excellent Bootleg Beatles will also be entertaining guests.