Words: Ashley Rigg
Published: 13 January 2009
Industry Millionaire: Gordon Miller
Gordon Miller is founder and Editor of eco-homes and sustainable development portal,
Whatgreenhome.com. Gordon is also an accomplished overseas property journalist and writes regularly for the Financial Times, Daily Telegraph, The Observer and The Daily and Sunday Express.
To help our readers come up with ideas for future projects, we offered Gordon £25k, £100k and £1 million of hypothetical Globaledge money to invest anywhere in the world.
Ashley Rigg: Hi Gordon, thanks for taking the time to talk to me today. How’s business?
Gordon Miller: It’s good considering the climate (no pun intended!). I’ve got lots of writing projects on the go and Whatgreenhome is beginning to take-off. Early days but the signs are good.
AR: Let’s kick off with £25k. Not much considering the state the pound in today’s market. How would you spend it?
GM: I’d like to buy something in Belize. SomePlaceElse are offering half an acre of land on
Belize Reserve for £24,950. It’s inland on the edge of a rain forest and it’s only an hour's drive from the main international airport.
AR: Why Belize in particular?
GM: It’s stunningly beautiful for one thing and it’s got huge potential for growth. Tourism has grown 5% a year since 2002 and the Belize Tourist Board are really beginning to get their act together. They exhibited at the World Travel Fair for first time this year. GDP growth has been steady for the past 5 years at 3% per annum and as a former British colony it has English law so property ownership is safe.
AR: What’s so special about the location? Why would people go there?
GM: There are stunning waterfalls and caves and lots of Mayan culture but the thing to remember is that Belize is a very small country and even in the centre you are only an hour so away from the International airport. It’s also tricky to find developable land so there is limited supply.
AR: What about its eco creditentials? There must be room for a cheeky golf course?
GM: (Laughs) Good question. No it doesn’t, it’s got great environmental credentials. When the development is built it will be carbon neutral. Everything is to be powered by wind or hydro and no cars are allowed on site.
AR: What about the long haul flight? Isn’t it tricky to marry overseas property with being environmentally friendly?
GM: Yes, flying is always the elephant in the room, so to speak, but not everyone who buys abroad plans to travel to the property. For example, some buyers will be planning to retire, others as a pure investment. If the development is properly undertaken (as it is at Belize Reserve), local people will benefit through employment during construction and afterwards, and also through the broader economic development of the area that a new residential project will bring.
AR: Good point. I think it’s important to support sustainable projects. It’s too easy to be cynical. Anyway we digress, let’s take our fictional pot to £100, 000. Where would you spend our money to maximise return?
GM: I’m going to opt for a French lease-back scheme in Languedoc, France. I’m on safer environmental ground with this one as you can get a train there in less than 7 hours from London. I may have to borrow money though as its 155 000 Euro’s for a one bed suite.
AR: No problem. What kind of finance can you get on it?
GM: You can get up to 80% LTV but the lending rules are much stricter in France which is one of the reasons it is less exposed to the credit crunch than the UK. `
AR: But prices are still falling in France, right?
GM: They dropped between 5% and 7% in 2008 but over the long term I think they’ll be fine. For example, Paris is actually
John Howell’s top property investment tip for 2009.
AR: So why Languedoc?
GM: It’s got lots going for it. There’s lots of tourism potential but prices are much cheaper than the South coast [of France]. It’s also beautiful. The capital Montpellier is a great city, and the region has a great and underdeveloped coastline. The particular resort,
Lodge St Germain, has strong eco credentials and a sound management team headed up by an ex-hedge fund manager, Andrew Whittaker.
AR: What do you get for your money?
GM: The one bed suite is part of a hotel so you get access to amenities, such as the gym and swimming pool. It’s a guaranteed 5% gross yield for the first two years and there’s a good rental management company that handles everything for you. You also get unlimited personal use, although the more you take the less rental yield you’ll achieve. The investment will wash its face and over the long term, and you’ll make money from the capital growth.
AR: Sounds like a solid investment. Let’s take it up to £1 million. Do you have anything more exciting in mind?
GM: Well with a million, I assumed I’d retired and was living on the millions I’ve made from Whatgreenhome.com (laughs) so I went for lifestyle rather than racy investments.
AR: Fair enough. Have the environmental credentials gone out of the window then?
GM: Admittedly this one is the least green of all my choices but it still has a strong eco-agenda with solar thermal panels, grey water recycling and a raft of new eco technologies that the developer plans to implement in future phases. I’d love a villa as part of the
Bom Successo development on the Silver Coast in Portugal. You can get a bespoke 4 bed villa designed by Architect, David Chipperfield for £750k.
AR: Sounds expensive!
GM: It is, but it’s worth it! Jose Mourinho has just bought one. If you like modern architecture (and I do) it’s simply one of the most progressive developments I’ve seen. Also, it over-looks a lagoon and is five minutes from a beautiful coastline. It’s also convenient as it’s only 45 minutes from Lisbon, which is one of my favourite European cities. By 2020 you’ll be able to get there in 24 hours from London when the high speed rail link across Spain opens.
AR: Anywhere else you’d consider spending the money?
GM: With my luxury lifestyle in Portugal, I’d need a place in the UK so I have a base to see family and friends. I’d like one of the flats in
One Brighton, a new development complex in Brighton’s New England Quarter. It’s got some great people behind it from developers BioRegional Quintain and it’s carbon neutral, it ticks all the green boxes. A studio costs £132k and a one bed is £175k.
AR: What’s the investment potential?
GM: I’m buying more for convenience but the site is right behind the train station and Brighton is known as London by the sea. There will always be strong demand from affluent Londoners wanting to live on the coast and commute to work. So, it’s definitely a strong long term investment too.
AR: Thanks Gordon. It’s good to get a fresh perspective on Industry Millionaire. You certainly make a strong case for Green real estate investment.
GM: Pleasure, good talking to you. Speak to you soon.
About Whatgreehome.com
Launched in October 2007,
whatgreenhome.com is the only property portal that independently reviews eco-friendly homes for sale at more than 80 developments in 28 countries worldwide, including the UK. Subject to meeting specific environmental criteria, developers and agents are invited to have a free editorial profile on the site. For more information, contact editor@whatgreenhome.com
