Antonio Velardo VFI Overseas Property

VFI OVERSEAS PROPERTY. ANTONIO VELARDO

VFI Overseas Property’s Antonio Velardo has something of a family background in the construction business – 400 years of it to be precise.


However, Antonio Velardo didn’t just restrict his own interest in the business to clambering over building sites as child – he went on to obtain a degree in Civil Engineering from the Loughborough University in the UK, one of the leading universities in this field.

Therefore, in setting up VFI Antonio Velardo not only brought tradition and expertise to the new company, but backed this up with an unrivalled knowledge of the Calabria region and its tax, financial and property laws.

This fits in well with his current responsibilities for overseeing the management of VFI Overseas Property, working closely with agents, developing land and stipulating contracts with builders all round the world.

His vision for the future of the company is encapsulated in its mission statement which proudly proclaims: “VFI will strive to introduce the most exciting markets in overseas property to our clients whether they are purchasing for lifestyle or for investment. It is our goal that everyone who invests with VFI today will reinvest their profits in our future developments”.

With this background Antonio Velardo together with fellow VFI director Harry Fitzsimons have built a company which, in three years has gone from zero to a sales revenue of €100 million, making them some of the most successful CEO’s in world business.

And the success story continues. VFI has now joined forces with Robert Fernando, a high respected retired Harvard university professor running his own property development company in Russia – a new move that sprang out of Prof Fernando carrying out a case study on Antonio Velardo’s concept behind the markting of VFI’s products.

We talked to Antonio about this enviable business growth.
Interview :

So tell me about the history of VFI?

Well, despite the fact that the company is now so successful, it really is just over two years old, and came about following a meeting between myself and my now fellow CEO, Harry Fitzsimons. However, whilst that history is a short one it is also a dynamic one and, although we only started with just two people, were able to grow the company to turnover levels of €100 million in less than eight months. We are confident that track record must make VFI one of the most dynamic companies in existence.

What are the reasons behind VFI’s success?

To start with I really think I owe much of the present success of the company to my background and to my forbears who have given me such a solid grounding in property development. And we’re not just talking about a generation here. In fact, my father was a developer, my great grandfather was a developer and even my great great grandfather was a developer . So as you can see I’ve not only come from an amazingly long line of people with experience in this business – but I’ve also got something to live up to!

But to be really successful in today’s constantly changing economic climate you need more than just skill and tradition. This is where I really feel that my first meeting with Harry Fitzsimmons was so propitious. We were down in the Cape Verde islands at the time where Harry was a client of mine and I knew he had experience in the property market. At the time the selling price from properties was in Cape Verde of €3000 to €3500 euros per square meter. We knew this was to high to allow any growth in that market, but decided we could work together and set up a good business by moving into Italy, and into Calabria specifically.

Of course this move and the initial growth of VFI was helped by my contacts here in Italy – which gets us back to my history. But it certainly worked because, in less than 3 months we sold over 600 units. The key to success is timing, you need to get your timing right and your marketing right.

What do you feel are your achievements?

Looking back over the last couple of years I honestly feel that one of our most important initial achievements was to bring a higher level of professionalism to the whole business of property sales in southern Italy. When we first came here Harry and I realized that most of the local companies really didn’t have much experience in this area. No one seemed to understand the concept of buying ‘off plan’, and even if they did, the computer generated images of planned properties were poor so that buyers couldn’t imagine what they would be like to live in. As a result Harry and I had to spend a lot of time and money on research, better rendering systems to produce good images, and a lot of hard work putting together good sales and marketing projects. But, as an achievement, this paid off and we were able to sell most of the units on our first sites before any of the construction even started.

You know many people think that VFI is successful because of its €100 million turnover. But what I believe is more of an achievement is to have sold properties with nothing on site, but simply using our own effective sales and marketing skills. I have to say that I am proud of that, on behalf of both Harry and myself.

How has VFI contributed to the development of southern Italy?

What we have been able to do is to turn the potential of this beautiful and underdeveloped part of the country into a tangible financial success, which in turn has brought money and employment to this area.

It’s not too difficult to see why areas such as Calabria had remained in a backwater – the local people knew what they had a real gem here, but through lack the right skills or drive, failed to do anything to develop and sell it. In my view, if you have gem, but don’t make the most of it, it’s no longer a gem.

In financial terms it is not difficult to see what the effect has been on the local economy of building 3,000 units with a value of €350 - €400 million and selling these on the open market, not just to Italians, but to English, Irish and Russians. We have brought their money into a poor region and helped to develop it, thanks, yet again, to professional marketing – something that was completely lacking before we started. In fact so effective has this been that many of our customers have come back and bought second properties.

I don’t want to sound arrogant, but I honestly feel that VFI has done more for Calabria in the last three years than the state has in the last 50 – and Harry and I are very pleased about that.

You are only 31 and you are amongst the richest people in Italy, with a proven track record in creative real estate development. What would be your advice for struggling developers in southern Italy?

What they need, in one word, is confidence. That is what I had, and you can see the result. Or, to put it another way – it’s all about a vision of what can be created if you go about it the right way.

And really, this is where so many of the existing local developers fall down. They get bogged down with too much detail when they should be looking at the bigger picture of what can be achieved with the right effort and skills. Identify the market – find out what it wants – put in place high quality marketing right from the outset – and then build the properties people want to buy.

A typical example of the way they get things wrong is when a local developer starts on the bricks and mortar without understanding what the market really wants. Then, when the properties fail to sell they halt the construction, and the result is an ugly mess which ruins the beautiful countryside and won’t interest anyway. You have to do your homework first and ensure that you have sold a significant number of properties before the first brick goes in place.

At the end of the day it boils down to a failure, by local people, to see the bigger picture, to work out in advance what the market wants. They seem to think they can put up any sort of property and sell it. Not so. This part of southern Italy is exceptionally beautiful and the clients who are going to buy here want top quality houses that reflect the style which our country is world famous for.


What are the new challenges for VFI?

Our vision for the future is to take VFI further up-market and to build on our success with new developments that take us into the multi-millionaire bracket.

We have already started on projects at this level in Sicily and Tunisia, areas which we feel are as ripe for quality housing development as Calabria has been, and we are confident we can do as well in both those places as we already have done in Southern Italy.

You like to achieve your goals with lightning speed, how long will it take before you become a billionaire?

If VFI can keep up its current rate of sales – and I see no reason why it shouldn’t – then Harry and I should certainly be joining the Forbs listing in less than five years.

But the bottom line is that no one ever became a millionaire just by thinking about the money. It’s what the Americans call ‘a vision thing’. No vision, no future, no money, simple as that. So there’s the challenge for Harry and I for the next five years if we are to achieve that enviable status. I’m completely confident that we can do it, just like my ancestors were doing for hundreds of years before me!

Interview with journalist John Sansom
John Sansom runs Presslink, a travel, leisure and property specialist news and picture agency.
He has previously worked on local newspapers, local radio, national newspapers, and the UK’s leading travel industry newspaper TTG. He has regularly appeared on national radio and TV programs in the UK talking on travel and property investment.

Best exchange rates using forward contract

Forward contracts case study video.

For overseas property buyers a forward contract can save a considerable amount of money when making final payments for an overseas property puchase. Fix the exchange rate for up to two years ahead with just a 10% deposit.

Spanish mortgages in Spain

Homeowners do not always benefit from the drop in interest rates.

The official rate with which most mortgage repayments in Spain are calculated, the Euribor s falling but that does not mean that all home owners will reap the full benefits of the decline.

Ausbanc (the association of users of banking services) has warned that the small print of around 90 per cent of mortgages in Spain includes a “collar” that prevents the interest from falling below a certain amount, normally between three and five per cent.

So although, the Euribor has reduced to around 1.5% many homeowners are still paying over 5% on their Spanish mortgages. Furthermore, owners with mortgages based on the annual euribor may have there mortgage based on a rate set last year and with no room for review until the official review date.

The collar can, of course work the other way and protect home owners if the rate goes higher than a certain limit but that is little comfort to homeowners at the moment.

Ausbanc says that writing in a collar clause is perfectly legal, as the bank and customer sign the agreement before a public notary, but in reality few people know that these limits exist.

Clients effected by this should seek independent advice from a reputable broker. It may be possible to re mortgage to a different lender at a much reduced rate of interest.

Marbella to host the Davis Cup

It has now been confirmed that Marbella has been successful in it’s bid to host an eliminatory round for the Davis Cup.

It has been 20 years since Marbella last hosted this international tennis tournament and it is some achievement to win the vote against some strong bids from Zaragoza and Tenerife.

Spain will play Germany at the Puerto Banus bull ring between July 10th and 12th.

12,000 spectators are expected to fill the bull ring and the event is sure to attract an international se of celebrity’s o the playground of Puerto Banus.

The Marbella sports councillor, Angel Mora praised the hard work of all those involved with the bid including Spanish tennis legend Manolo Santana who build the famous tennis centre between Marbella and Istan.

Marbella News

The British Chamber of Commerce in Spain, in collaboration with Marbella Dutch Business Club, is inviting citizens to an informal drinks and networking evening to be held at Hotel Puente Romano in Marbella on March 31st. The event begins at 7 p.m. with a welcome by chairmen, and networking follows from 7.30 p.m. Entry is free, and there will be a cash bar. To reserve a place contact Rachel Barber on 951 968 786

Last Sunday the Dutch Club Costa del Sol celebrated its 30th anniversary with a festive afternoon at the Alay Hotel in Benalmadena Costa. Guests at the event enjoyed a lunch and cocktails followed by a performance by Dutch bandoneon virtuoso Carel Kraayenhof, who performed at the wedding of Crown Prince Willem-Alexander in Amsterdam seven years ago. Further musical entertainment was provided by La Insostenible Big Band and a Spanish show orchestra in the style of Glenn Miller. Here’s to the next 30 years!

Solar energy Marbella Costa Del Sol Spain

Marbella News

Solar Energy

Since 2005 Spain has made huge efforts to make use of something that they have in abundance – free sunshine. Spain is now the second highest producer of solar energy in Europe with most of the solar farms being located in most southerly province of Andalucía.

The Marbella council has identified 30 buildings which would be suitable to have solar panels installed in a move to cut costs and use the free clean energy. Many of the municipal markets, schools, sports centres and council warehouses have been identified as being suitable and a number of businesses in the energy sector have expressed an interest in working with the council.

Gas supplies

After five years since it was first planned Marbella is finally about to get natural gas. No longer will it be necessary for residents and business’s to have those orange gas containers delivered or for the container to run out in the middle of cooking or taking a shower.

The work will cost 11 million Euros and involve more nearly 100 kilometres of pipeline. The work is due to start in the area of Nueva Andalucía first and then move east into Puerto Banus and Marbella town itself.

Finding an asset in negotiating the foreign exchange market

If you choose to enquire with a specialist foreign exchange company as an alternative to your bank or building society, you will be assigned with a ‘personal account manager’, much like a stock or share manager who takes your order and provides pertinent information to help you with the timing and choice of your purchase.

As with stock and share brokers, they are varied in quality and expertise. However, if you know what to look for and choose wisely, you could be retaining the experienced services and guidance of an extremely valuable asset, at no cost and without signing away anything at all.

‘Currency today.co.uk’ examines the benefits this relationship can bring and how to find the ones with your best interests at heart that could ultimately save you a great deal of time and money.

A good account manager will:
• listen patiently and attentively to your enquiry, ensuring they have a complete picture of your situation before making any possible suggestions.

• make it easy to understand what all your options are, detailing them but not confusing you with numbers and non-pertinent financial data.

• be available at all times in trading hours to respond to any enquiry you may have, or keep you updated with the exchange rate and other market data affecting it, as well as replying promptly to any email or message you leave.

• be far more concerned with the service that is provided than the commission on the sale, aiming to build their business through satisfied customers rather than individual sales. This will show if they genuinely want you to achieve the best exchange rate possible and go that extra length to keep you informed of all information necessary, and stay with you for as long as is required or necessary until the best rate is achieved (as the market allows).

• be completely transparent in explaining all the charges and costs involved. As well as the commission (which should be free) and the transfer costs (which should be low), they will explain how they make their money. This is where the real costs lie; the difference between their cost of buying the currency, and your cost of buying it from them (also known as the spread). Even though this is often a larger charge than any commission or transfer costs involved, it should be a significant improvement on any bank or building society.

• inform you of other hidden costs, such as charges the receiving bank may make. A good account manager will isolate these charges, and provide a service that will absorb them all for you.

Further reading :
http://www.currencytoday.co.uk/

The Marbella property review – March 2009.

The property and financial markets of the world have certainly had an interesting time of late. In general, over the last 10 years, all property and financial markets everywhere have seen massive increases followed by a big slump. Whether your money has been in stocks and shares or property you will be doing very well if your investment is worth more now than it was a year ago.

I believe that there is a big difference between a property and a stock or share and we should not put them into the same bracket of an investment. Yes, property, over a mid to long term should rise in value and if an affordable mortgage is taken out and repaid over a mid to long term period then the property will provide a solid investment for the future. However, a property should be so much more than an investment. It is a permanent or holiday home. Somewhere for the family to live or enjoy regular holidays, and in Marbella I think there are signs that people are starting to think in a more traditional way about property. They are looking again at Marbella property in a way that they should – a place where they can buy a nice property to live in or enjoy regular holidays.

In some parts of the world property values have fallen through the floor. Some properties in so called emerging markets are practically unsalable. Some city centres/dockland areas where thousands of 2 bedroom shoe boxes have been built remain like ghost towns with thousands of apartments unsold. The common theme with these properties is that they have been built in the thousands not because people want to live in, or use them but because people thought that if they bought them they would make some money.

The Costa del Sol is no different and thousands of basic two bedroom apartments have been built. Typically they would be sold at exhibitions in Britain or Ireland to “investors” who would sometimes buy three or four units hoping to sell on before completion and make a big profit. The people who did this in the early days did make money although most of them took their money and did the same thing in the emerging markets of Dubai, Bulgaria and Morocco and have subsequently come unstuck. For those that joined the party a bit later they are now sitting on a property that they never wanted and which is worth a lot less than they paid.

Typically, these properties are 2 bedroom apartments, miles away from the beach, miles away from any form of life – shops, restaurants etc and only accessible via a half built, extremely steep road. They are not the sort of properties that anybody would look at and think “I would like to spend my holidays or live there”.

The sales market for this type of property is very different to the more traditional holiday home. Properties all over the world that are in good locations have held their values far better. Yes, buyers are wary of what is going on in the world and are either waiting to see what happens or looking to negotiate a bargain which is putting pressure on sales prices. However, the buyers today know what they want and that is not a shoe box in the mountains. It is a well built property near the beach or a golf course and with easy access to restaurants, shops and bars.

There is a saying that quality will always last and that is true of the property market. Mayfair in London will always prove to be a good long term investment. So will most of the best areas in any town in Britain or when it comes to holiday homes, areas such as The South of France or Tuscany in Italy will always do well.

Marbella is very much in that category of quality. It has been popular for over 50 years and there is no sign that it will lose that popularity. Why should it? The main reasons that it become popular 50 years ago are still valid today – the best climate in Europe and great beaches. That, basically is what people want from a holiday home.

For anybody contemplating buying a property for an investment I would say, make sure you think of it as a mid to long term investment and make sure you buy in a quality area. For anybody buying a holiday home it’s more simple – buy in a place that you are going to enjoy. For both types of buyers I would recommend property in Marbella as an option and there is a lot happening in Marbella that I believe will ensure that the next 50 years are as successful for this area as the last 50 years.

So why did Marbella become popular 50 years ago?

Very simply the climate and the beaches.

The climate is generally recognised as one of the best in Europe. It’s one of the most Southerly places in Europe and the huge Concha Mountain that hovers over Marbella provides a unique micro climate. This makes it a great year round destination which means whether or not you are here in August or January you will enjoy lunch on the beach and a vibrant atmosphere.
The beaches stretch all alone the South Coast of Spain and legend has it that Marbella got its name when centuries ago Queen Isabela visited and exclaimed “que mar tan bello” – what a beautiful sea. These two factors were important 50 years ago and are still valid today.

What has happened to Marbella in the last 50 years?

From a little fishing village 50 years ago Marbella has developed into a cosmopolitan year round destination loved by many people who return year after year or who have set up permanent residence.

It is probably the people that have set up permanent residence that have changed Marbella so much. In these days of technology and a more flexible work environment many people can choose to work from wherever they want and for many people that is where the sun shines most of the year – Southern Spain. This has only enhanced the all year aspect of Marbella and it is now a place where people can live all the time. Shops and restaurants are open all year but also the mix of facilities is much greater than most Mediterranean resorts – cinemas, large shopping centres, hospitals, schools etc.

The sheer diversity of Marbella is amazing. There must be more than 10 five star hotels in the area but then in the old town you will still find small, hostels run by the original Spanish owners. Eating out can be at a Michelin star restaurant where the finest International cuisine is served or a scruffy beach or tapas bar where often the food is just as good.

Golf’s Ryder Cup played between Europe and the USA at Valderama in 1997 really put the Marbella on the world’s stage for golf. Since then the area has cemented its reputation as one of the most popular golfing areas in the World with nearly 50 golf courses.

Spanish property sales downturn or not?

I received an e-mail very recently from a client I have been in touch with for a short period. This client has been looking at picking up a bargain in Spain and researching the purchase with some intensity. The e-mail expressed deep concerns regarding the wisdom of purchasing in Spain. The catalyst which brought about this U turn was a recent auction in Dublin where 100 Spanish properties were offered and only 1 sold. This event and it’s outcome made national evening TV news. The question it left my client asking was how realistic are the prices being asked in Spain at the moment?

My reply,

Good Afternoon Client A ,I have read your e-mail and reflected for a moment before replying. As you would expect it is now my duty to construct an e-mail re-enforcing strong reasons why you should still continue with your no doubt long laid plans to buy in this country my family and I now happily call home. I have outlined my thoughts below and would like to point out these are purely my opinions on where we are now and how we got here.

The desire for property in Spain and my area Los Gallardos Costa Almeria Spain has for many years fuelled the boom here and from recent reports published in the U.K. It is still top of British & Irish foreign property buyers list. Why? Well there are many obvious reasons, two and a half hour cheap flights from a good variety of airports. The very pleasant climate all year round and the option of skiing in the Sierra Nevada gives this country a huge advantage over many . Still a cheap standard of living compared to many other European countries.

The laid back culture and warm welcome has always been a major attraction. A well established and ever improving infrastructure of roads and travel. A wealth of tradition to enjoy including an endless stream of colourful fiestas and carnivals. A long and diverse Southern coastline taking in natural parks, bays and coves, long busy stretches like Benidorm and beautiful rugged coasts on the Costa Brava, very different but all have their own appeal. Then we have the food and wine which has put Spain on the map, many fish dishes, specialty lamb recipes and the unique traditional tapas. Wines such as Rioja and Tempranillo for example, the list goes on. So if the demand for Spain is still there what has happened to this property feeding frenzy now and why are we left in the media tagged vacuum of spiraling depression?

It is true to say that recent years have been the boom times for many. Politicians, farmers, builders, agents and in earlier year’s property owners all enjoyed huge pay days as the country cashed in on what seemed to a never ending demand for Spanish property. Everybody wanted a piece of the action and then as always the very people who were riding the band wagon set about its messy hault. Human greed started to damage the industry from every angle. Allegations of corruption from the powers that be were in a few cases proven to be true, creating massive problems for those that had purchased and shattering confidence in the whole product labeled ‘Spanish property’. The U.K. and Irish press fuelled by increasing alarmed governments picked up on the stories of ‘land grab’ and ‘houses being knocked down’ and started a propaganda against buying abroad. It is of course in the governments interests to stem the flow of UK and Irish people leaving their home lands to relocate taking their lifelong savings and pensions with them. It is now estimated that 44 million euro’s is being spent every year in Spain by expats from the U.K and Ireland.

Land owners were next asking totally unrealistic prices, builders then starting increasing prices on an almost monthly basis. The mad search for more land at a reasonable price became harder. Property was being thrown up and the quality of the location became less important. The bigger estate agents then whipped up a marketing frenzy with very clever advertising. Encouraging people to build huge property portfolios which will ‘pay for themselves’ the idea being that renting the property out enough weeks of the year will pay the Spanish mortgage. You should then go on to buy two, three or four perhaps and hey presto you will end up a millionaire. What these irresponsible agents were guilty of is falsely inflating the price new of property here by collaborating with most major builders and commanding commissions anywhere from 10-15% in return for bringing an endless supply of British and Irish clients over on 4 day inspection tours. These clients were wined & dined then bombarded with only new build products. Long chats were arranged with the manager, financial advisors and rental experts in an attempt to get that all important sale.

The banks were next to cash in with a long wave of irresponsible lending. By the week banks here were offering better terms in an attempt to attract the foreign buyer. Interest only mortgages were introduced by the financial advisors and agents to support the investor buying multiple units. Banks just did not seem to care whether the ability to repay a loan was there or not. The important issue was how much business each branch manager was turning over. It became a standing joke within the industry at the apparent ease three months wage slips could be downloaded from the internet.

The industry started slowing down as the buying public got wiser to areas, products and sales techniques. The ability to research what was going on in Spain got easier. The densely built up areas started to see less clients looking. The theory of buying two or three to rent out fell flat on its face as the weekly rent needing to be achieved was not there. There were too many units competing against each other to successfully pay their own mortgage and the banks saw more defaults on payments. The four day inspection tour began to die, clients wanted the choice to see other agents on the same trip and compare deals. Resale’s became more attractive and the bigger agents could not get their huge commission from a resale deal. Many smaller agents could offer properties much cheaper working on 3% commission.

Of course the straw that broke the camel’s back was the onslaught of the current credit crunch, the world wide recession. I understand fully what I have briefly outlined above is the normal cycle of peaks and troughs within the property market. It is however a little unique in as much that this concept of buying property abroad for the masses is a relatively new one. Also Spain is a fairly underdeveloped country in relation to the U.K. Mistakes have been made by a country that saw an explosion so quick it could not even dream of keeping up with it. Land was being granted permission to build on and the properties were built and sold before you could blink. The local town halls are at least 2 years behind with IBI (council tax). They will catch up but it will take time.

In true sales fashion I will now finish with positives, I firmly believe in experiencing the last few years Spain is now a better place. Lessons have been learnt and mistakes are being corrected. The corrupt politicians have been found out and punished. Maybe not all of them, I don’t know but the ones that have are being used as an example to others. The illegal builds so hotly reported are being addressed early this year and I can assure you that will not be reported as enthusiastically back there.

The builders are bringing prices down to all time lows in an attempt to move stock. The amount of off-plan developments around are dwindling dramatically, it is not worth builders starting anything until old stocks are sold. Banks now are really feeling the pinch, the back lash of earlier policies are now coming home haunt. There are now an awful lot of Spanish property repossessions that the banks have to get rid off and recoup their losses. With an influx of so many cheap properties on the market from all different sources competing for that elusive buyer it is in itself regulating prices. The major acid test now however has to be the bank valuations. A company called TINSA do the majority of all bank valuations here. This company has been instructed now to bring all valuations down to below realistic terms. The upshot is banks here like everywhere at the moment do not want to lend money. Any mortgage offered now is scrutinized as though it was the branch managers own money he was lending. You can be sure a TINSA valuation is a very accurate valuation and a fair reflection of how the market is at this moment in time.

My advice to you Client A on the wisdom of buying at this moment in time? It is a very good time to look for a bargain in Spain, when the Sunday Times say that “it’s a good time to pick up quality at the right price” then perhaps it is time to agree. This paper has been a constant doom and gloom merchant on the Spanish market. The country is still the same desirable Sunny Spain only now starting to correct the wrongs.

The house prices are rock bottom with mortgage repossessions and distressed sales unable to go any lower. The majority of larger unscrupulous agents have moved onto pastures new leaving Spain because the commissions are not profitable enough. There are a lot of good genuine agents here doing a good job for a fair commission and offering a comprehensive after sales service. I think any buyer now is a lot more informed and I can assure you there are still people over here looking to buy. Granted those numbers are nowhere near what they used to be but my point is that an auction is not a place I would expect a serious buyer to be looking. I think to be here physically looking at properties that may be of interest is what the majority of people are doing now.