Athena Advisers, a property investment advisory and sales network that specializes in second-homes and investment properties, began in 2003, focusing on London, Paris and Lisbon. It has since expanded to include the French Alps, Brazil and, now, Russia and South Africa.
The company’s property portfolio is curated with an eye toward capital appreciation prospects and rental potential, and includes everything from beach houses to chalets.
Nick Leach, a partner at Athena, is based out of Bermuda. We caught up with him to discuss which areas are strong for investment, why Paris is always a sure thing, and more.
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Mansion Global: Describe your dream property.
Nick Leach: I’m all about the ocean personally. In my ideal world I’d have one home by the mountains, one by the ocean and one in the city.
MG: Do you have a real estate property that got away?
NL: I missed one when I was investing in London, which I’d love to have bought in South Kensington. Someone was just quicker than. I bought in 1998, and prices skyrocketed in the city until last year.
MG: What does luxury mean to you?
NL: If it’s used in the proper context, luxury should be something only a very small percentage of properties provide in terms of quality of materials, service, and how beautifully everything is made, produced and installed.
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MG: What area do you think is the next hub for luxury properties?
NL: Chinese buyers will play a big part in destinations having a sudden spike in value, since they tend to invest and buy where other Chinese buyers are.
Lisbon, for one, is seeing prices boom. There’s more demand than there is supply. It’s not just a fad either. It’s based on a lot of things— the lifestyle is great, the economics are not that expensive, and the weather is pleasant. We’re seeing celebrities, retirees, internet entrepreneurs, really everyone.
Then there’s the Golden Visa—Brazilians, South Africans, and Chinese all want to have a pathway to a European passport. And the Non-Habitual Resident Program is attractive from a tax perspective. Cumulatively those are having an effect. Prices, which started low, are definitely going up.
MG: What’s the biggest surprise in the luxury real estate market now?
NL: The continuing explosion of prices in London was a surprise. People didn’t know how much Libyans, Russians, Syrians and Greeks would put their money into London homes to be safe.
It was seen as a safe haven, and it was an unpredicted result of an accumulation of world events.
The fact that it’s turned is unsurprising, though, because of stamp duty, additional taxes, etcetera. But even those didn’t cool the market as much as people expected.
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MG: Where are the best luxury homes in the world and why?
NL: The U.S. keeps pushing the boundaries of what defines luxury. It’s at the forefront of "thinking big." Some of the Alpine properties are becoming more and more spectacular in terms of materials; they’re meeting the increasingly demanding requirements of buyers.
MG: What’s your favorite part of your home?
NL: We’re in the process of renovating a home we just bought in Bermuda, but my favorite part is going to be a double-height veranda overlooking the ocean.
MG: What best describes the theme to your home and why?
NL: It’s beach house casual chic. We intentionally did not make it overly detailed and fussy. We wanted it to be clean and simple.
When you’re near the water, you also have to decorate defensively—no carpets, but polished concrete instead.
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MG: What’s the most valuable thing in your home?
NL: Materialistically, nothing. For our house, the location is the most valuable. It’s the most amazing spot—25 feet from the ocean.
Bermuda houses are made from concrete blocks and are very strong. It’s not like the U.S. and Caribbean with wooden houses.
MG: What’s the most valuable amenity to have in a home right now?
NL: For me personally, it’s high speed internet. Everything is linked to that—from Nest to media to working.
MG: What’s your best piece of real estate advice?
NL: The oldest most sensible piece of real estate advice, which everyone’s been saying since anyone starting selling property is to focus on location. There are lots of fads and bubbles but if you buy in the right place you’ll be okay.
In our markets, for example, being on a slope or near a ski lift is great. Or in a city, you want to be buying in a neighborhood that’s been tried and tested for hundreds of years.
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MG: What’s going on in the news that will have the biggest impact on the luxury real estate market?
NL: It has to be geopolitics. Central banks are influencing flows of money and interest rates. All those affect how wealthy people do or don’t feel.
At the moment, the wealthiest people are thriving—that’s our direct experience.
MG: What is the best area now for investing in luxury properties?
NL: Paris is historically expensive, but has had several years of flat prices and dropping prices. You have the simultaneous effects of Brexit—companies relocating people there because of it— and the Macron affect—having a progressive, business-forward president. Paris will always be Paris. There’s limited supply.
MG: If you had a choice of living in a new development or a prime resale property, which would you choose and why?
It depends where. If I was buying in Miami, brand new would be great. In Paris, I’d like an older building with the charm and older architecture, that’s been modernly renovated inside. That’s what our clients look for.