Words: Ashley Rigg
Published: 4th September 2008
Industry Millionaire: Adam Samuel talks to Globaledge
A fictional investment pot and a world full of destinations can be a heady combination! In the first in a new series, we ask a leading industry professional where in the world they would choose to invest in property (if only they had the money!), with the goal of pointing agents and developers to locations where they might consider sourcing future projects and finding collaborative partners.
Our industry insider has at their disposable £25k, £100k and £1 million+ to invest anywhere, in any property type. They can leverage the cash and their objective is to maximise return over a 5 year period.
In the hot seat first this week, Adam Samuel, co-founder of overseas investment blog
Nubricks, lays down the industry insider gauntlet. Adam made the overseas property industry and online marketing combination his niche back in 2001, when Spanish property was enjoying a renaissance and Bulgaria was one of 'those places' in Eastern Europe. To date he has set up and run an overseas estate agency business and a property portal before founding the UK's leading overseas property blog, Nubricks.com, back in December 2005.
Ashley Rigg: If you had £25k where would you invest the money to try and maximise return?
Adam Samuel: With so many new investment destinations springing up on an almost daily basis, it's hard to narrow it down. I’m only familiar from a numbers perspective with a handful of destinations but I certainly have a few favourites. With my £25k investment, I’m opting for a relatively safe option. I’d invest the money in a plot of land in Canada, ideally close to an established ski resort or one that is up and coming, like Kicking Horse in the Canadian Rocky Mountains. Canada is an established real estate market in global terms and the second homes market is strong, with the option of including the asset into your SIPP if you are UK based. The resale market is not limited to domestic Canadians - both Americans and Northern European visitors have a strong affinity with the country and having witnessed the success of developments such as Humber Valley, I believe these projects have a wider appeal than purely holiday makers.
I believe that the real estate market hasn’t seen the level of growth rates witnessed in the US, UK or Spain for example, which makes it an attractive proposition because there is still room for your investment to grow in a relatively short period of time. Land plots can be purchased for around £10k for half a hectare although price is wholly dependent on the plots geographic location. In my opinion, there are some good property investment opportunities to be had in Canada, if you do your research wisely.
AR: Interesting choice Adam. Let's add another £75k into your pot - what about your £100k investment?
AS: With this amount I’d probably split the investment amount in two, invest £50k of the money into a two-bed apartment in Panama City and the other half into a similar apartment in the centre of Ulaanbaatar, capital of Mongolia.
AR: That sounds a bit random!
AS: Well I suppose it is and it’s a bit of punt given that Mongolia is relatively unknown as an established travel, let alone business trading destination, making it the riskier of the two investments. However, it has a low entry price and urban property in an underdeveloped capital city has plenty of potential for growth, albeit slowly. The Mongolian government is fairly stable and it has good trading links with China. I believe that whole area of Central and Western Asia, in time, is next in line to follow in the footsteps of Eastern Europe. Mongolia has huge potential to benefit from its favourable location with China as a next-door neighbour and with its newly discovered, rich natural resources is set to come in to its own.
AR: Okay, so why Panama City?
AS: I view Panama City as a good long term investment strategy, so it is NOT something to flip on. The government is in the later stages of talks to deepen the Panama Canal so that cruise ships can pass through it, which should provide a major boost to the economy and provide more jobs locally. It already attracts wealthy retirees and “
Snowbirds” and as it becomes an established stopping-off point, should improve Panama's appeal as a retirement destination. It’s got an element of the glamour, skyscrapers and city buzz that gives Dubai its allure but on a smaller scale and would therefore appeal to Americans who are seeking somewhere that is not too far removed from back home but with a lower cost of living.
AR: Finally - you've just had a windfall of a million pounds or more, where would you invest it to make it work harder for you? Where has potential at the very top end of the market?
AS: Islands are a big favourite of mine as there are a limited number of them, especially given that some are already starting to sink! There are three opportunities that I would seriously consider if I was a millionaire investor. Option one, I’d buy an island off the coast of Cambodia. Cambodia has yet to enjoy the growth of Thailand and Malaysia and has some amazing beaches. It’s close to China, and with the rise of the Chinese middle class and their love of travel, I reckon I'd double my money ;) Cambodia is only a ten-hour flight from Europe and is obviously accessible to Kiwis, Aussies and expats in Asia too so I have a good global market niche to appeal to. I would create your typical high-end, luxury resort with golf and a spa but probably with a twist - maybe like Atlantis or Jumeriah Beach in Dubai, something that emulates the success these hotels have had, in creating a unique reason to visit them. I think there is always a market for that kind of property if you make it exclusive enough and build in a wow factor. I've got a few ideas up my sleeve!
AR: I’ve been looking at few islands myself actually. Might have to sell quite a bit more advertising though! You mentioned three, which other locations would you choose?
AS: The
Comoros Islands look interesting. They are just north of Madagascar. I don’t know a great deal about them but I am aware that the company behind the Palm Dubai has just purchased a resort hotel to refurbish. I think Africa is the next great powerhouse with huge untapped investment potential. The Comoros Islands have had their fair share of problems with civil unrest and dictatorship but I'm in no doubt that they will have done their research before going in there. There is probably good potential to make returns over a 20- to 30-year period.
AR: And the third?
AS: I thought I'd plump for the UK given that it’s having such a hard time of it in the press at present, but again I'm going for uniqueness – it has to be Sandbanks!
AR: In Bournemouth, where
Harry Rednapp lives?
AS: Spot on! The spectrum of the market you are selling to in the current climate is not affected by recession on their bottom line. It is a location where there is finite space, it enjoys a stunning outlook and it’s an “ego sell”. It’s a bit of fun but in the long term and with our insatiable appetite for all things celebrity, prices should continue to rocket.
AR: Thanks Adam.
AS: You’re very welcome. It’s always a pleasure spending Globaledge money, even it's hypothetically.
Would you like to be an industry millionaire?
Do you have a good knowledge of a particular country or region? Could you point overseas agents and developers in the right direction when looking for partners and projects? If you’d like to participate, please
contact us.
About Nubricks
Adam Samuel founded overseas property blog, Nubricks.com back in 2005, when the word 'blog' had only entered the Oxford English dictionary a year previously. Together with partner Chintan Mahida, they set about building a more informal platform through which to promote overseas property. As the UK's leading
international property blog, Nubricks.com not only ranks for a host of overseas property search terms but is also widely quoted in mainstream press and features in various property publications, combining the best of online marketing and PR.
User Comments
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Jo Ellen Nash,
Luxury Estates of Naples