The rise in yob culture, crime and the cost of living are the driving factors in Brits buying property and moving abroad, according to research published today.

The report by Foreign Currency Direct is based on research undertaken during February 2008 by YouGov, involving a representative sample of 2,000 people. Their views and reasons for moving abroad have been compared with similar research conducted in June 2007 and have produced surprising results.

Nearly four in 10 people (35%) in the UK are currently considering a foreign property purchase in the next 12 months. When these figures are broken down, 50% of them are women - compared to just 21% of men. 33% of these people said they’re keen to move abroad permanently to get away from the crime and yob culture in the UK. When asked the same question last year, only 4% of people mentioned crime and yob culture as a reason for moving.

Coming so soon after MP Jacqui Smith’s comment about the lack of safety on the streets of London and the seemingly increase in crime in the country, the research suggests it could be true that women are feeling unsafe amidst the current crime climate in the UK and this could be the reason why so many more women than men want to move abroad.

More than one in three people said that the high cost of living in Britain is a big factor for them. This figure has increased by over 10% since last year.

But, as has been the case for a while, the gloomy weather in the UK is still an issue for some people and 31% said they plan to move abroad to have better weather. Other reasons cited by respondents include:

• Investment opportunities (29%)
• High UK taxes (25%)
• Not being able to afford a second property in the UK (23%)
• Not being able to afford a first property in the UK (14%). This figure rose to a massive 77% for people aged between 18 and 24.
• The opportunity of better jobs overseas (4%)
• Inspiration from overseas property television programmes (7%).

Commenting on the findings, Peter S Ellis, CEO of Foreign Currency Direct, said, “With the rising cost of living and crime becoming a bigger concern for Brits, it seems that many of us are seeking refuge abroad. Buying property overseas is still an excellent investment and a great opportunity for a better quality of life.”

Northern Rock loan approved

There has been plenty written over the past few weeks and months about the situation at Northern Rock. I - like everybody else - was surprised at how the British Government managed to make a pig’s ear out of what started out as a simple request for temporary funding, which was approved by the Bank of England.

Media interference brings everything tumbling down

Television, radio and the press all jumped on the Northern Rock story and helped to cause what was in all but name, a run on the bank. I remember listening to the BBC’s Radio 5 Live breakfast program when they posed the question - ‘should you or shouldn’t you withdraw your savings?’ The mere suggestion that anyone with savings in Northern Rock should consider withdrawing their money would probably mean - they should. And guess what? They did! A shame really - because it looked like Northern Rock had it all under control.

Isn’t it good to own a bank?

The good old British tax payer is now the proud owner of a bank, since the Northern Rock is now national property. Isn’t this good news for anybody who has a mortgage? David Smith commented in The Sunday Times that the Council of Mortgage Lenders (CML) has done some calculations that predict a shock for borrowers as they move out of the deal period of their current mortgage and are offered much less favorable terms by their current lender for a new deal.

Better mortgage deals for all

The Government can protect borrowers from greedy mortgage lenders by ensuring the Northern Rock continues to offer competitive mortgage deals. Normal market forces will then ensure that other lenders will have to follow suit. Although I am not a fan of nationalization, and on the face of it I don’t understand why the government would want to own a bank, I can see that the situation could prove advantageous in steadying inflation. After all, a mortgage is most people’s largest financial commitment.

I have been living in the Pacific islands for several years. It is great and I plan to stay here. I love the sun, the ocean, the natural beauty, the laid-back lifestyle. So do a lot of other people from all over the world.

Everywhere you go in this part of the world you find expats. Americans, Aussies, Brits, Germans, Russians, Chinese, you name it. But there is no expat group as ubiquitous as the group from the Philippines. Why? It doesn’t seem to be for the sun, the ocean or the laid-back lifestyle. They have that in their own country. The Philippine economy just doesn’t seem to be able to provide everybody with suitable work.

Still, in spite of this, there is considerable interest from foreigners investing in the Philippines amid some signs and economic trends that might help alleviate this condition somewhat. This includes a potentially positive effect of the U.S. economic downturn on commercial real estate in the Philippines as reported by CNN.

7,107 islands, one nation full of potential

The Republic of the Philippines is an archipelago consisting of 7,107 islands located in Southeast Asia. As a former U.S. possession the Philippines has a long-standing history of cooperation and affinity with the United States. The country is well positioned geographically in one of the world’s premier economic growth regions and it has a highly educated, motivated workforce, which, for the most part, speaks English. There are approximately 91,077,287 Filipinos, and an estimated 10% of them are overseas workers.

Given its educated, English-speaking population that would presumably rather stay home than relocate to Dubai, it was only a matter of time before the Philippines became a prime site for outsourcing and this could present a really attractive opportunity for investors.

Where to invest in real estate in the Philippines

So what part of the Philippines is of particular interest to foreign property investors? When I discuss the Philippines with people who know the place, they usually mention Cebu. Cebu is the second largest city in the Philippines-but it is middle sized, with a population of 718,821 as of 2000. Magellan landed there; the Spanish colonizers made it their first capital.

“Cebu” refers to three things: an island, and a province, a metro area within the island and province, situated roughly in the center of the country. Many people contrast Cebu favorably with Manila, which is generally considered to be too big and too - well - many other things. If there is a place in the Philippines that seems poised to take advantage of the country’s competitive advantage in the area of outsourcing, it is Cebu. What is special about the place? A number of things stand out:

Special economic zones (PEZAs)

Cebu has seven special economic zones that the Philippine government has set up to encourage foreign investment. These so-called PEZAs grant incentives to property developers, exporters, and I.T. service providers - incentives such as 100% foreign ownership of enterprises; tax holidays; tax and duty-free importation of capital equipment, among other things. There is a proposal in the Philippine Senate to turn the entire island of Cebu into a special economic zone.

Tourism Potential

Of course, it makes sense to invest in a place that people actually want to come to and Cebu’s coral reefs, jungles, rivers and biodiversity make it an ideal spot for diving, ecotourism, and adventure sports. Cebu is getting a reputation as attractive location for expatriate retirement, and already has a large community of expats from all over the world. It seems to me that the Philippines has lagged behind some other tourist destinations in Asia, but that could be changing with Cebu investing heavily in promoting itself as a naturally exotic tourist destination.

An educational hub with booming BPO and IT industries

Cebu has an abundance of college graduates and is the educational hub for a large geographical area (most of the central and southern parts of the Philippines). Cebu boasts 8 Universities and 30 colleges and an impressive availability of training in a wide variety of disciplines.

It is also a business product outsourcing (BPO) center and encourages the establishment of such businesses. One of its PEZAs is Asiatown Information Technology (IT) Park, set up to attract information technology investment. The proposal to create an island wide PEZA could be particularly helpful to the technology industry in Cebu and some are even suggesting that Metro Cebu should be turned into a cyber city.

Cebu- a widely acclaimed city on the move

Cebu’s reputation as a rising star has generated international recognition. It was rated by Conde Nast Traveler as the 7^th best island in the Asia-Pacific for 2007 - and that’s out of a lot of islands. It was rated the 8^th Most Promising City in Asia by London-based FDI magazine. It was recognized as No. 9 among “Asian Cities of the Future”, No. 7 in “Quality of Life:” and No. 2 in “Best Business Development and Promotion” by AsiaBIZ Strategy in 2007. It has developed a reputation for safety and livability.

Pros and cons of investing in the Philippines

From what I hear, doing business in the Philippines has a definite downside. The Philippines has some pretty sound foreign investment laws, but it seems to be better known for problematic government. That’s probably not irrelevant to why so many people have to leave to find work elsewhere. Neither Transparency International nor the World Bank in its “Ease of Doing Business” survey gives the Philippines particularly high marks.

If you talk to someone from the Philippines about what is good and bad about their country it doesn’t take long for the subject of graft and corruption to come up. People I know who do business there seem to regard official corruption as simply a cost of doing business. Cebu is hardly immune from allegations of corruption, but it seems that local business groups such as the Chamber of Commerce are taking strong stance against it.

The Philippines clearly has to get a handle on this problem if it expects to progress and people taking a strong and vocal stand against governmental corruption is a good start.

Nevertheless, despite its shortcomings, the problems are outweighed by the attractions. The Philippines has immense potential. And Cebu seems to be in the vanguard!
Further reading:

Cebu city guide

Cebu City Government

Construction on multi-family units in the United States was up somewhat in January 2008, according to figures released by the US Census Bureau and the US Department of Housing and Urban Development. The level of starts in December 2007 for single-family homes was as low as it has been since 1991.

Compact property is the new trend in the cities

Home builders are encouraged with the slight increase in the numbers of people walking through their newly built homes. They believe the traffic hints that business may soon be picking up. David Seiders, chief economist for the National Association of Home Builders, believes the data indicate that home buyers are beginning to take a look at their options once more. And if they are looking for a place in the midst of a vibrant city center, they have a new type of option to consider.

It could be that perceptions of “the good life” are changing in the United States, as some home buyers are beginning to take the position that bigger is not necessarily better. Developers are taking note and playing to an interesting and growing trend in large metropolitan areas like New York City, Los Angeles and Seattle: teeny, tiny apartments and condos, running from 250 to 450 square feet.

Available space utilized to the max

They’re affordable, they’re cute, and for some buyers, these small units are just the right size. Because of their diminutive proportions, it is difficult to build luxury extras into individual properties, so developers are building amenities into the community instead, including film screening rooms, courtyards, and rooftop gardens. And the more reasonable price tag of a smaller home means that residents can afford to live close to the social and cultural heart of some of the nation’s most desirable cities.

Proponents of living small say it is entirely possible to create a comfortable, warm environment in a small space (see photos). It requires determination to reduce clutter and organize the space; the process starts with an inventory of possessions and the will to discard nonessential items. The end result can be perfection in miniature. Folks who love their down-sized living space do have a couple of cautions, however: these homes are not designed for entertaining, and they do not readily accommodate a family with children.

Smaller properties remain strong amid the American real estate slowdown

Real estate industry insiders expect to see fewer home sales and lower sale prices in California during 2008. Despite this news, prices for smaller, one-bedroom units in San Francisco have been rising pretty consistently since early 2003, and it appears that they continue to hold their own. In Manhattan in the early months of 2008, prices for smaller properties also seem to be on the rise. One positive note for sellers: real estate professionals suggest that the current weak dollar is encouraging more international buyers to invest in some of the city’s most expensive properties.

Apparently, many prospective buyers are discovering that lenders are reluctant to make loans. Still, one mortgage loan industry watchdog encourages people to take heart: some lenders out there are still making mortgage loans, and in fact, they welcome new business.