Why home-ownership causes unemployment

A strong correlation between high home-ownership levels and high unemployment rates is shown in a recent study co-authored by David Blanchflower and Andrew Oswald.

Using unemployment and home-ownership statistics from 1900 to 2010 for the states of the USA except Alaska and Hawaii along with data gathered from millions of randomly sampled Americans, the study found that rises in home-ownership in a state are followed by substantial increases in the unemployment rate after a lag of up to five years.

"It suggests that a doubling of home-ownership in a state would be associated in the steady state with more than a doubling of the unemployment rate," says the paper.

For example, the study shows that the five states that had the highest increase in home ownership (an average of +23% in Alabama, Georgia, Mississippi, South Carolina and West Virginia) since 1950 had a rise in the unemployment rate of 6.3% between 1950 and 2010. In contrast, the five states that had the lowest home ownership increase 1950-2000, saw unemployment rise just 3.5% over the 60 years from 1950-2010.

The study also found that high home-ownership leads to people staying put and commuting further and further to jobs, in turn creating cost and congestion for firms and other workers. It also precipitates zoning restrictions and other NIMBY (not in my back yard) activities where home owners block new businesses. It fosters ossification of mobility and reduces dynamism in the economy.

"We have been collecting data for decades now and it is appropriate to go public on the results," said Oswald:  "We find that a high rate of home-ownership slowly decimates the labour market. The USA makes a valuable 'laboratory' in which to study this issue, because the different states have a language, currency, and culture in common."

The authors say that while "the data used in this paper are almost wholly from the United States... our conclusions may have wider implications." They believe their ideas apply equally well to Europe where countries like Spain and Greece which have high home-ownership (80%+) also have high unemployment (20%+) and countries like Switzerland, Germany and Austria which have low home-ownership have correspondingly also low unemployment rates.

The release of the Blanchflower and Oswald study coincides with the release of a similar work in Finland, done independently by Jani-Petri Laamanen at the University of Tampere, which draws the same conclusions.

Countries which pursue policies to promote more home-ownership may unintentionally be adding to their unemployment problem. Providing incentives for investing in affordable rental property seems a good way to address the problem.

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UK and Ireland fuel tourism growth in Lanzarote

Lanzarote is a unique tourist destination, boasting surreal volcanic landscapes and breathtaking beaches.  Along with the other six Spanish owned islands in the Canaries chain it forms an archipelago that is sometimes referred to as the European Caribbean - as here sun starved holidaymakers from countries such as the UK and Germany can enjoy a beach break at any time of the year.  A factor that also makes the island a hot favourite with overseas investors, as owners of holiday villas and apartments on Lanzarote are able to enjoy a full twelve month rental season too.

The proximity of the Canaries to key markets such as the UK (which is just a four hour flight away), along with the ready availability of cheap flights from budget airlines such as Ryanair and easyJet makes Lanzarote both accessible and affordable to today's traveller.  And despite the recession in Europe the islandґs tourist industry has remained relatively buoyant as a result, with passenger arrivals pushing the 2 million mark in 2012 and further growth expected this year.

The UK is the key tourist market for Lanzarote, with British visitors accounting for around 45% of all passenger arrivals.  Now, thanks to the growing pace of recovery in Britain, consumers there are finding that they have more disposable income to spend on holidays abroad and this is translating itself into an increase in UK arrivals - with the number of tourist passengers climbing by 9% during September 2013 alone. 

The resurgence of the Irish market is even more impressive, as Eire is still undergoing painful economic corrections as their austerity programme continues to bite.  Yet despite this the number of holidaymakers visiting Lanzarote from the Republic has soared again in 2013 - up by 21% (source Frontur Canarias) across the first nine months of this year.

Property prices on the island have fallen since the onset of the crisis and are now close to their 2002 levels, with the average price per square metre now standing at Ђ1218.00 (source ISTAC, Canarian Institute of Statistics).  This is some way below price levels in other comparable sun spots such as the Balearics, yet rental yields are much higher thanks to the year round season,  making Lanzarote an attractive proposition for investors struggling to find returns on their capital from more traditional savings and investment options. 

Mortgages are also cheap in Spain, as the European Central Bank has recently dropped the Eurozone interest rate too just 0.25% in order to stimulate growth.  As a result we are now seeing an increase in demand for good quality rental properties amongst both traditional markets such as the UK as well as newer groups of investors, such as the Russians.

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Spain's buy-to-let market attracts distressed property investors

Foreign and domestic property investors are bulk-buying foreclosed homes in Spain, to rent out. On average, repossessed residential properties in Spain's major urban centres can be had at 71.6% below original value, according to Fitch Ratings.

Last year, legislation was passed making investing in rental properties more enticing. Under the new law, rental rates have been de-linked from inflation and may now be increased by the landlord more frequently. The new law also reduces the duration of leases, as well as the waiting time for evicting non-paying tenants.

Foreign owners renting out their property to working people under 30 years of age can even, under the new law, claim tax relief ranging from 60% to 100% on the rental income.

In contrast, tax breaks for individual home buyers have been set aside. Ordinary citizens, suffering from a shrinking disposable income and the credit squeeze,  are now finding it harder to enter the property ladder, leading to expectations that demand will dramatically rise for rental homes in coming years.

Spain's two-year old recession has ended. The country saw 0.1% growth in the third quarter, according to the National Statistics Institute. 

Major property investors like Blackstone Group and Goldman Sachs focus on mass purchases of foreclosed properties, particularly apartments that are already occupied, in Madrid and other urban centres where housing demand is high and tenants can generally afford to pay rent.

In July, Blackstone Group bought 18 apartment buildings from the city government of Madrid for 125.5 million euros ($173 million). In August, Goldman Sachs and Azora Capital bought 32 social-housing developments from the regional government. 

Madrid is offering another foreclosed property portfolio with 1,458 housing units and 1,588 garages in and around the capital. The minimum asking price is 67.2 million euros (US$90.25 million). Blackstone Group and Goldman Sachs are reportedly bidding. 

Sareb, the state's bad bank, must sell soured real estate assets worth 1.5 billion euros (US$2.0 billion) this year. To date, it has already disposed of properties worth 1.2 billion euros (US$1.6 billion). It is reportedly putting another package on the market which includes land ready for construction in the Madrid area worth 350 million euros ($477 million). 

Most bulk buyers bid on foreclosed homes sight unseen, especially when there is stiff competition from other investors. In Spain, this can lead to costly consequences. Spain has a big and growing problem of squatters. It can take three years to evict them, often entailing messy court battles. Meantime, the investor cannot resell or rent out the property.

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UAE Central Bank caps mortgage lending

The UAE Central Bank is limiting mortgage lending to prevent a repeat of the 2008 property market collapse.

The rules impose new mortgage restrictions on the 23 national banks and 28 foreign banking units in the country:
For homes worth more than Dh5 million (US$1.36 million), loans for first-time buyer expatriates should not exceed 65% of the property's value, while loans for Emiratis will be capped at 70%.
For second and subsequent property purchases, loans for expatriates should not exceed 60% of a property's value regardless of cost, while loans for Emiratis will be limited to 65%.
For off-plan property, the maximum loanable amount is 50% of the property's value regardless of purpose, value or nationality. 
The maximum mortgage period shall be 25 years and the maximum age at the time of the last repayment is 65 for expatriates and 70 for Emiratis. 
The total monthly repayments should not exceed 50% of a customer's monthly income regardless of nationality. 
The total loanable amount should not exceed seven years' annual income in the case of an expatriate and eight years' annual income for an Emirati.
The imposition of mortgage lending caps has been precipitated by the continued rise in home prices notwithstanding the doubling of the transaction tax from 2% to 4% by the Dubai Land Department recently.

Industry observers however note that the new mortgage restrictions may slow entry to the housing market by end-users but not investors or speculators, who mostly buy with cash. A study by consultancy firm Jones Lang LaSalle (JLLS) found that about 80% of Dubai home buyers now pay in cash. 

Dubai's safe haven status along with its world-class facilities and its strategic location make it a destination of choice for large-scale overseas real estate buyers. 

According to Dubai Land Department, this year Indians have already bought properties worth over Dh8 billion (US$2.18 billion), British nationals bought Dh4 billion (US$1.09 billion) while Pakistanis have invested more than Dh3 billion (US$0.82 billion). Funds are also flowing in from Central Asia, Russia and China. 

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Foreign investors hit by anti-speculation measures in Malaysia's 2014 budget

Malaysia's booming property market is expected to slow, once new taxes in the 2014 budget take effect next year.

Beginning January 1, real property gains tax (RPGT) will double from the current 15% rate. For disposals within the first three years, the new RPGT will be 30%. 

For citizens, RPGT will be 20% for disposal in the 4th year, 15% for disposal in the 5th year.  No tax is levied on disposals after the 5th year. For non-citizens and business firms, RPGT will be 30% within a 5-year holding period, and 5% in any subsequent year. 

The minimum price of property that can be purchased by foreigners will increase from RM 500,000 (US$157,282) to RM 1,000,000 (US$314,564).

Property developers and financial institutions will be banned from using the Developer Interest Bearing Scheme (DIBS), whereby the developer absorbs the home loan interest of the buyer during the period of construction of the property. Projects with DIBS features are favoured by investors who flip properties as soon as construction is completed.

These changes should not discourage long-haul investors, or end-users. Prices in Malaysia remain much cheaper than in Singapore or Hong Kong.. And unlike those two countries, Malaysia will not impose any additional stamp duty.

The sale, purchase and rental of residential properties will be exempted from the 6% goods and sales tax (GST) that takes effect on April 1, 2015. However, there is no similar exemption for the sale and purchase of goods and services used in residential construction.

Meanwhile, the government is upping spending on housing projects for low- and middle-income earners.

RM 578 million (US$181.82 million) is allocated for 16,473 new residential units to be built by the National Housing Department (NHD) under the People's Housing Programme (PHP). Another RM 146 million (US$45.93 million) is earmarked for construction of 600 new units for rent by NHD. Houses under the PHP are priced at between RM 30,000 (UD$9,436) and RM 35,000 (US$11,009) per unit in the peninsula, and RM 40,500 (US$12,739) per unit in Sabah and Sarawak.  And RM 1 billion (US$314.56 million) will be earmarked for 80,000 more housing units under the 1 Malaysia's People Housing Programme (PR1MA), priced 20% below market price.

The government is also introducing a new Private Affordable Ownership Housing Scheme, "MyHome," with RM 300 million (US$94.37 million) given to developers building low- and medium-cost houses, with a RM 30,000 (US$9,436) subsidy per unit. 

The budget also provides for the creation of a National Housing Council, a one-stop agency that will be responsible for overall planning, policy and strategy formulation, coordination and monitoring of issues and developments affecting the country's housing sector. Its members will be drawn from federal agencies, state governments, the NHD, PR1MA, SPNB and the private sector. 

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European University: Fulfilling great expectations with tailor-made MBAs

Globalization and digitalisation have undoubtedly changed the business world in the last 10 years. For business schools the implication was that the curricula had to be updated and the educational offering had to be adapted to suit the demands of potential students and their respective employers and industries. The most obvious change has been the rapid internationalisation of MBA programs. Most business schools now offer semesters abroad, operated by themselves or by partner universities. The internet combined with its derivatives have forced business schools to actively restructure their curricula. However, the biggest development in business education during the last years has been the offering of MBAs with a specialisation - may it be a subject-related specialisation (e.g. taxes) or an industry focus (e.g. the leisure and tourism industry).

According to the Graduate Management Admission Council (GMAC), which administers the Graduate Management Admission Test (GMAT), in 2010 nearly 70 percent of the examinees indicated that they intended to focus on a particular area while doing their MBA. This is quite contrary to the MBAs of the past 40 years, which were based on the idea of giving middle and senior managers the possibility to re-attend university and upgrade their business administration knowledge, as well as simultaneously extending their professional network. Proof of this is shown in the fact that the past average age for doing an MBA in the US was above 30, while now it is below. Although you will still find some institutions where this is the case, in general the MBA world has changed drastically; just think of flattened hierarchies and the partial extinction of middle management. Consequently, our  MBA expectations have also changed.

Maybe the most dramatic change is that a standard MBA is becoming more and more outdated. Today's business world is seeking managers that possess a fundament of general business administration knowledge, but on top of that, have a series of qualities that make them special, which in turn makes their contribution to the company even bigger. This also applies to the modern entrepreneur; a set of core competencies is necessary to make the difference.

It is also necessary to understand that in today's business world the probability of the sanctuary of staying with one company, department or even business model after graduating from college is rather low. So you must make good use of the knowledge you attain while doing your MBA. What can be better than tailoring your MBA to what you consider to be important for your future success. On a final note, if you think that you have chosen the wrong approach, no need to worry. Education is never bad for you and most probably, in order to stay competitive in the long run, you will have to go back for more education anyway.

Whether you like it or not, when facing the cruel reality of the business world you must consider yourself a product and service. Corresponding to the increasingly demanding business world, the only way to guarantee a successful career is to continually improve this product and service through life-long learning. So this article is on how to approach the big question "What type of business education do I need in order to achieve this?"

The first step to solving this question is to apply the analytic tools we use in the business world to oneself with utmost scrutiny. I personally suggest a simple SWOT analysis to start with.

So find your favourite thinking spot, settle down with a pen and paper, take a deep breath and start with your strengths. Obviously that should be the easiest. If you have problems with this don't panic. For some it is more difficult to carve out their strengths than for others. My suggestion to overcome this is not to be too harsh analysing yourself, but rather, try to scrutinise others. 

Take a look at their weaknesses and it should be a lot easier to discover your strengths. Now when it comes to your weaknesses, things might get difficult. We tend to lock these away in our cellars and have problems being objective.  Once again don't panic if you can't find any weaknesses, or you reveal too many. For the former, there is always room for development, and if your not sure about that, I suggest a great book The No-A**hole Rule by Stanford Professor Robert Sutton. For the latter, those with the perception of having too many weaknesses, this will book will also help you. 

When it comes to opportunities, this can be overwhelming - you might feel there are too many and suffer from the same dilemma as Buridan's donkey. Placed at equal distance between two haystacks, the donkey starved because he could not decide which haystack he should go to. Or, you might have the feeling that all seats are taken, or that there are no seats at all in this desert we are in. Please do not give up - usually the next day or the following week the restaurant in the oasis will have a seat for you to dine, or someone will have the great idea of opening a restaurant with a spectacular view over the desert that attracts endless amounts of guests. By the way, you might want to reserve your table now, before it's too late. 

When it comes to the threats, there are many you can think of, but again, please don't revert to the panic station. I remember my first SWOT analysis in the early 90s and asking myself if nuclear war was a threat to the business case I had to solve. Yes, there are certain external events which we cannot foresee, but no, you should not fall into the panic mode that the media tries to put us in so that we buy their products - even today bad news always sells better than good news. You should consider threats as challenges that you will be ready to deal with in the future. After finishing your SWOT analysis, I highly suggest a reality check. Go through the heroic effort of showing a highly-trustworthy person your SWOT analysis. Yes, I know it's a real tough call, but it is your future success at stake, so you might just want to go through it as a safety measure.

Having reached this point, you should be able to assess your personal status quo and think about the educational strategy you will choose. Most probably you will now be confronted with the following questions: "Should I focus on expanding my strengths, or reducing my weaknesses; go after the opportunities, or prepare for future threats; or maybe all at the same time?" No easy decision to make. On the other hand, if it makes you feel better, current research has proven that, generally speaking, nobody is bad at maths, they just had a bad maths teacher. If you look at the amount of literature available on 'how to be creative' and 'how to be an entrepreneur' you should not worry. So again, no call for panic - all of us sitting in the 'business world boat' are confronted with these challenges and the future is clearly not ours to see. Nonetheless, as a remedy for possible symptoms of panic, I highly suggest a short book by Mikael Krogerus and Roman Tschaeppeler called The Decision Book - Fifty Models for Strategic Thinking.  Not only does it give you the tools to analyse and improve yourself, but it will also gently push you in the direction of what you want from your MBA. This really being the quintessential question to ask oneself and the reason why you have to go through this tedious self-analysis.

Nowadays tailor-made MBAs are popping up quicker than weeds in a garden. There appears to be no limit to the specialisations on offer. If you are one of the few that know exactly what they are looking for, congratulations - you will find it. However, if you belong to the majority who are not sure exactly which industry they would like to work in, welcome to reality! Either go back to your personal SWOT analysis, or do a brutally honest brain-storming session on yourself. In closing, here are a few words of encouragement:

Few people remain in their chosen field - a very close friend of mine became an architect, but has run her own very successful, market-niche business for the last 15 years.

Eureka! You've finally found the specialisation you were looking for, but very few resources exist! Do not capitulate. Write the resources yourself!

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Global intelligence: New York Times goes international

Get essential global news, business insights and cultural content from the new launch of International New York Times, complemented by apps and a special subscription offer. [Contributed by the INYT]

The International New York Times announces its launch in print and online as of October 15, 2013. Combining the journalism of The New York Times with dedicated newsrooms in Paris, London, Hong Kong and New York, it is even more tailored for a global audience. 

The International New York Times is an exciting new offering that delivers essential global news, business insights and cultural content. Reporting from every corner and hubs around the world, the International New York Times provides relevant and timely coverage 24/7, resulting in a truly global sensibility. To celebrate this special launch, the International New York Times is offering a special subscription deal of 99c (USD) for the first 12 weeks.
International New York Times: Global news

International Herald Tribune becomes International NY Times
International New York Times succeeds the International Herald Tribune, a publication based in Paris since 1887. Over the past 125 years the International Herald Tribune has committed to unbiased and unrivalled journalism from all around the world. This next chapter of the IHT becoming the International New York Times will bring investments to our Paris, London and Hong Kong newsrooms, to further strengthen the vibrant international journalism from all over the world.

The International New York Times' expanded international team will be able to create even more globally-focused content to ensure our unique global perspective is maintained and enhanced for readers across all print and digital formats.

The rebrand launch includes expansion of more international opinion contributors, new editorial staffs and an additional, third page in the INYT's weekend edition. The INYT Opinion Pages (INYT.com/Opinion) will be edited from Hong Kong, Paris, London and New York so it can be especially tailored for global audiences.

Advanced apps for worldwide access
In addition to the international editorial expansion, The New York Times iPhone and iPad news apps now allow the user to choose between an U.S. or International Edition. The new International Edition is available to users of the most current iOS apps, and replaces the IHT app. INYT.com will be available on all devices via the mobile Web. For more information, please go to INYT.com/ineurope
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International New York Times: Global news
Special launch offer from the International New York Times:
Subscribe for just 99c (USD) for your first 12 weeks to the world's finest journalism.
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Subscribe to fantastic new offer for a limited time and only 99c (USD) to get:
Full access to NYTimes.com, including the International edition (INYT.com);
Unlimited access to world's foremost 24/7 coverage, articles, videos, multimedia contents and more;
Award- winning journalism and opinions;
Unique and insightful stories and multimedia content you won't find anywhere else.

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The British School in the Netherlands hosts successful boys football division

The British School in the Netherlands (BSN) held a successful International Schools Sports Tournament (ISST) last week with teams from Germany, UK and the Netherlands. [Contributed by BSN]

One football International Schools Sports Tournament (ISST)
International Boys Football Division in the NetherlandsSeven international schools, from the Netherlands Germany and UK visited The Hague last week to compete in the Boys Division One Football International Schools Sports Tournament (ISST). The tournament was successfully hosted by The British School in The Netherlands (BSN) and involved teams of U18 players representing among others the BSN and The International School of The Hague (ISH), as well as ACS Cobham, who were many people's favourite going into the tournament having been crowned champions in the previous two years.

The three days of intensive football produced some highly entertaining games and a number of outstanding goals. The tournament also threw up some intriguing derby matches on the final day, none more so than the third and forth place playoff between local rivals BSN and ISH which looked to be heading towards extra time, and perhaps even the dreaded penalties, before ISH eventually ran out 2-0 winners after two late goals.

ACS Cobham lived up to their billing as pre-tournament favourites, winning each of their games as the tournament's top scorers on their way to the final, in which they faced TASIS, The American School in England, who also went into the final unbeaten. Nonetheless it was ACS Cobham who ultimately prevailed as worthy winners with a 2-0 victory to once again lift the Boys Division One Football ISST trophy for the third successive year.
International Boys Football Division in the Netherlands
In addition to the tremendous football on display on the pitch, the tournament proved to be a rousing success off the pitch as BSN Head of PE Faculty Lee Crook explained, "Hosting any ISST Tournament is a daunting task and its success requires many hours of preparation and hard work from a team of staff. Our thanks particularly go to the BSN staff members who worked tirelessly behind the scenes to make this event so special for both the players and spectators."

ACS Cobham Coach Peter Lee also commented on his team's remarkable achievement, "To win three championships on the run is very special, the boys were on their game throughout and were fully focused and it was a pleasure to be around them. Special thanks to the BSN for hosting a truly great tournament, one of the best in my 16 years of being involved with ISST."

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LEGO: ‘Let's Get Connected' to become an annual event

On Sunday 10 November the very first LEGO 'Let's Get Connected' event took place at The American International School of Rotterdam. [Contributed by AISR]

Hundreds of adults and children enjoyed this event which included challenging workshops and a LEGO building competition, and was held at the school campus in Hillegersberg, Rotterdam.
American International School of Rotterdam: Lego kids event in the Netherlands
This event is a result of an AISR initiative aimed at bringing expat and Dutch children together to allow them to get to know each other better through the enjoyment of LEGO.
American International School of Rotterdam: Lego kids event in the Netherlands

Parents encouraged their children while enjoying the snacks and beverages on offer in the school cafeteria, and the Little Gym was on hand to help keep the younger brothers and sisters entertained.

More than 120 children entered the LEGO building competition, with some fantastic creations as a result. Nine lucky winners were able to choose a LEGO prize to take home.
American International School of Rotterdam: Lego kids event in the Netherlands
AISR is extremely please with the first edition of this event and is planning to make this a yearly occurrence.

expatica

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Exclusive Launch Party featuring DJ Complexion

Rexus Consulting invites you to attend their special event on 23 November 2013 in Den Haag to celebrate their business in the Netherlands. [Contributed by Rexus Consulting]

Rexus Consulting is celebrating their business in the Netherlands and sponsoring a spectacular evening on 23 November, 2013 at 9pm in Gember in The Gemeentemuseum, Stadhouderslaan 43, Den Haag.

Exclusive entertainment: International DJ
For the first time in the Netherlands after playing some of the most influential residencies, we present DJ Complexion. Maybe you've heard him on BBC1 and This Is Westside Radio, or maybe this is your first opportunity to dance and embrace the sophisticated sound of his Unique Music style, there is only One Complexion!
Exclusive night out in the Hague, Netherlands: DJ Complexion
Dance and enjoy the evening to the Revolutionary Future Beats Sound that is exploding the music scene with one of the top DJs from London, UK, for one exclusive night in The Hague.

Sophisticated sound, in a mature environment, and enjoying the company of good friends.  You don't want to miss this!Exclusive night out in the Hague, Netherlands: DJ Complexion

Tickets are only EUR 8 (including service fee) purchased securely via Ticketscript in advance or EUR 10 at the door. Ladies will have free entrance until 10pm

For more information visit our website at www.RexusEvents.com and confirm on our event page on Facebook. 

Representatives from Rexus Consulting will be available to answer any of your questions on securing a role in the IT Industry in the Netherlands.  

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Mother gives up $11m drug property

A woman who faced losing her home after letting her son keep a total of $11 million of alleged drug money in her lounge has abandoned the property to join him overseas.

But she left investigators a helpful message describing where the keys were hidden, paid all her utility bills, left the instructions for the washing machine and described several problems with the home that the new owner could fix.

Dianne Ashby, 70, described herself as the "jam in the sandwich" between the police and her son, Lee Vincent, after police traced boxes of cash allegedly from the profits of a designer drug ring to her Takapuna home.


The Court of Appeal has ruled the property be restrained under the Criminal Proceeds (Recovery) Act - the first step in seizing belongings shown to be the proceeds of crime.

The Weekend Herald can reveal that Mrs Ashby, described as "wilfully blind" by one judge, has left the property to join her son at his luxury apartment in Thailand.

Emails held on the court file show she forfeited her home of 30 years, which has now been sold to a neighbour at a market price, because Mr Vincent was no longer able to afford the mortgage payments.

However, Mrs Ashby sent a helpful email for the Official Assignee to help with the sale. She left detailed instructions for where she put the house keys, turned off the power and hot water, paid all the utility bills - including 10 weeks for lawnmowing - and left the washing machine manual.

Mrs Ashby also described problems with the home that needed to be fixed, such as doors that do not open, a leak, and new railing for the deck as "the nails are rusting out".

She was also apologetic that "due to my age and state of health" she was unable to cope with removing all the furniture and having the house cleaned.

Mrs Ashby is now living with her son in the Cove apartment complex in Pattaya, Thailand.

Mr Vincent is named in court documents alleging he organised the importing of powder that was pressed into pills by a designer drug syndicate in Auckland. In February last year police were granted restraining orders under the Criminal Proceeds (Recovery) Act to freeze assets belonging to Mr Vincent.

These included the proceeds from a property he sold in the North Shore, money held on his behalf in a company, two Thai bank accounts and an apartment in Thailand. It is understood the apartment is in The Cove beachside complex in Pattaya.

Mrs Ashby told the High Court last year that she had been reassured by her son that the money was from sales of legal party pills. She would be "gobsmacked" if the money kept at her house amounted to $11 million, but did not dispute that she was given $184,000.

The court heard evidence of wine carton-sized boxes filled with bundles of $20, $50 and $100 notes.

Police say the money came from the sale of pills containing a substance "substantially similar" to Ecstasy and were therefore Class B and C drugs. Lawyers for the drug-ring accused say the drugs were legal party pills.

The court was told that in the home of a wealthy businessman arrested in the investigation, detectives found a spreadsheet listing financial transactions. The detectives believed the paperwork showed $11 million in cash was delivered between September 2010 and November 2011 to the home of Mrs Ashby.

Taped shut, the boxes of money were stored behind a chair in Mrs Ashby's semi-detached home, police said. The money was collected by couriers who took it to Hong Kong, where it was banked, and the bank statements were sent back to Mrs Ashby.

"On occasions, one of the deliverers would open a carton and give Mrs Ashby bank notes in bundles," the court heard. The court was told she used the money for medical and pharmaceutical expenses - but it was her use of the money that led police to seek seizure of her home.

The court heard that she had worked as a bank teller and conceded under cross-examination that money from the pill sales was handled in a "weird and unconventional" manner. Justice John Priestley wrote in his judgment that Mrs Ashby was "wilfully blind".

"For 14 months, and on a regular basis, Mrs Ashby was content to allow cartons and boxes of bundled cash to be stored in her lounge," he wrote. "The same boxes were regularly collected and taken away by strangers ... She was a woman with a banking background. She well knew that it was highly unusual for any business to deal in this manner with its cash sales and revenue. Why not bank it? She never asked."

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Interior design: top 20 thrifty tips for your home

We keep being told that the economy has recovered. GDP went up 0.8 per cent in the third quarter, taking the total this year to 1.9 per cent. House prices in many parts of the country are growing too: London increased by 10 per cent.

Yet for those of us who are not looking to sell our homes, this new dawn is often hard to perceive. The cost of living continues to tick up, and wages for many are still flat. In the run-up to the most expensive time of year, it is more important than ever to save money where we possibly can.

Between upcycling, freecyling and recycling, homeowners have come up with plenty of ingenious ways to do more with less, and maximise our biggest asset. We forage, we grow our own, we make do and mend. From the family heirlooms to the hairy labradoodle, here are our tips on how to make the most of what you've got.

1 Second-hand hotel chic

Consider a five-star facelift for your home with some hotel accessories. The Lanesborough, on Hyde Park Corner in London, is closing for refurbishment and auctioning all its furniture between December 9 and 13.

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How to make your kitchen more organised Santander

You could pick up some great curtains, or old furniture, which you could repaint. Or try specialist outlets such as Little Auctions, which has an average of two sales a month, putting up an online catalogue the Thursday before the Saturday sale. If you are selling, note that commission rates vary according to the auction house.

2 Enjoy the financial comfort of strangers

Once your home looks like a hotel, treat it as one. Lodgers are the new house guests du jour. With the Government's rent-a-room scheme, you can earn up to Ј4,250 a year tax-free for letting a furnished room (hmrc.gov.uk/individuals/tmarent-a-room-scheme.shtml). Alternatively, you could have visitors to stay courtesy of the booking website airbnb.co.uk, or even a full management service such as Onefinestay. It cleans your home, stores your personal possessions and provides guests with iPhones. Vive unique goes one step further. It provides linen and meets guests on arrival, taking anything from five per cent to 35 per cent.

Eventfulstays.com specialises in rentals for special occasions (with commission of 10 per cent to 15 per cent). Other online listings companies, such as Wimdu and Holiday lettings, enable you to advertise your property.

Why buy a new sofa when you could just re-cover? Genevieve Fox at Rob Gord's furniture restoration workshop in Kentish Town (HEATHCLIFF O'MALLEY)

3 Chic…and cheap

Renovation is tiring. At the end of weeks or months spent redoing a room, the last thing you want is to trawl around for elegant, realistically priced antiques. Ikea calls like a siren by the time your builder has been paid.

Try looking instead at salvage yards. Although anything retro or industrial is often overpriced, there are bargains to be had. Salvoweb.com has a section called Recraft+?pcycled. I found a natty trestle console table there that was artfully distressed and affordable - a rare combination. In north-west London, I found Robert Gordon, who sells gorgeous old furniture from his workshop in Kentish Town.

Other useful contacts include Cox's architectural, Lassco, Andy Thornton and Beeston Reclamation

4 Hold fire online

On eBay, hold your nerve. As with any auction, you must stick to your budget and play your cards close to your chest. This is where sniping comes in. Sniping is the process of placing a last-minute bid to within five seconds of the striking of the virtual gavel. Check out third-party sniping platforms, such as Goofbid (which is free) and Auction Sniper (which charges one per cent).

5 Lease of life

If you want to get on the ladder, or find an investment, consider flats with short leases. They will be less expensive than those with a long lease or share of freehold. You may be able to extend the lease, which will increase the property's value in the long term. Beware, though, as it can be complicated to negotiate lease extensions - make sure you have a good lawyer.

6 Action off-plan

Buying off-plan appeals to those keen to avoid the stress of renovating. Property search expert and developer Edo Mapelli Mozzi of Banda Property advises caution. "If you are buying an apartment off-plan as an investment, make sure there are not too many units in the building, to reduce competition when it comes to letting it out," he says.

Also make sure your contract allows you to check for quality control during the build and that you have some flexibility about specifications.

7 Shock of the old

No one wants glossy, gleaming furniture. Bashed up, vintage or wrinkly is the new chic, but don't pay over the odds for antiqued glass mirrors, French dressers or distressed Nordic wardrobes. Take a leaf out of Kirstie Allsopp's book and learn how to strip back wood and age it yourself. It is time-consuming, but far less costly.

Go for quirky recycled and salvaged pieces (HEATHCLIFF O'MALLEY)

8 Become a skip scavenger

Skip scavenging is the new metal detecting. You don't need any gadgets, just an eagle eye, agile fingers and an empty car boot. The middle-class vandalism of the Eighties had homebuyers throwing out perfectly good kitchens because they wanted to put their own stamp on the property. Since then, canny locals have been waiting to pounce in smart streets the second the builders have downed tools for the day. Fireplaces and cornices are among the items that regularly find their way into skips. Remember to get permission from the builder or owner before you take anything.

9 Forage on Freecycle

I don't chuck out used goods anymore. I put them on Freecycle, the global recycling network that enables you to offer unwanted goods and take them, too. You have to be super-quick, though, as quality furniture, put up by eco-souls happy to share, is snapped up within seconds of being posted. I have so far given away a dishwasher, oven, fridge-freezer and microwave. Trusting in the law of karma, I am waiting for something divine (an antique chaise longue would be nice) to come my way.

10 Help a hoarder

We all know about hugging trees. Now it is time to hug a hoarder, or at least help them out by renting out any spare storage space. Storemates.co.uk will put you in touch with clutterers needing affordable space. It's free to list your offer of space on its website, but Storemates will charge the equivalent of the first two weeks of your listed storage price as an administration fee.

11 Buy second hand

You don't need to break the bank even if your kitchen is looking tired. The Used Kitchen Company sells unwanted and ex-display kitchens for a fraction of the usual cost. Or you can just replace the doors if the carcasses are salvageable. Try Dream Doors for a quick way to achieve a kitchen facelift.

12 Lights, camera, action

If you have a des res, a designer pad, or a Downton Abbey-esque period home, invite the film crews around and cash in. There are several agencies looking for locations for commercials, television series, photo shoots and feature films. These can be for a day, a week or even months. Expect to earn upwards of Ј500 a day, with extra zeros thrown in for historic properties. Be prepared to pay a fee of 20 per cent to the booker. See Amazing Space, Beach Studios and Location Works

Even the family pet can earn his keep (ALAMY)

13 Drive up your income

You have ditched the Lexus for a Zipcar. Now your driveway is sprouting weeds, rent it out instead. Online sites such as Park at my house; Park let; and Park on my drive have tools to help you calculate how much you can hope to earn. A driveway can bring in Ј5 a day or more if it's near a main-line station, while a parking space in central London can earn Ј20 a day.

14 Grow your own cash

Rent your garden out to a green-fingered neighbour to grow their veg. Your view will improve without any outlay, either physical or financial, and you might benefit from the annual glut of courgettes and tomatoes. Or if it's big and beautiful but the gardener's costing a fortune, hire your lawn for parties and weddings. The website Rent my garden puts you in touch with hirers for a fee of Ј25.

15 Run for a re-cover

If your expensive Italian sofa needs a facelift, should you ditch it and join the masses shopping at DFS, or have it re-covered? By sourcing your own fabric, you can get the sofa reupholstered for a flat fee. If you favour trad suppliers, such as Colefax and Fowler, you should check out discounted online suppliers, such as Ultimate Fabrics.

16 Call it curtains

No house is complete without lavish curtains. They dress a room, set its tone and raise the spirits. Beware, however: bespoke curtains are expensive. Happily, there is a vibrant second-hand market. The Curtain Exchange has six branches, selling second-hand as well as made-to-measure curtains. Prices range from Ј100 to Ј1,500.

Look around for sites close to your home if you want to see fabrics in the flesh. I found a nifty website called Friday-Ad, an online classified site. Mayfair Furniture Clearance sells on a limited number of curtains, as well as furniture, from five-star hotels.

17 Small-scale spectacular

If the snazzy wallpaper you most desire is ferociously expensive, why not limit it to a feature wall? You can paint the other walls in a toning shade, whether it's fashionable Farrow & Ball or mix-your-own at B?&?Q. Just don't try to mix your own colour at home. You will never manage the same shade twice.

18 Learn a useful skill

You don't have to go to the gym to get a workout. Try plastering or decorating and save paying a professional, too. If you don't know which end of a screw to hit, visit Chix and Mortar or The DIY School. They'll teach you how to wield a drill and tile the bathroom or plaster a wall and build a stone fireplace.

19 Timeshare your pooch

You already share a holiday cottage with another family, so why not do the same with your pet? It's a must to halve the cost of doggy day care and looking good.

Alternatively, be a fair-weather dog person and find owners who loan their mutt for walks and homestays through Borrow my doggy.

20 Make do and mend

For the determined penny pincher, there are money-saving opportunities in your home wherever you look. Change to lower-wattage light bulbs, turn off your televisions and unplug your phone chargers to save on electricity bills. Candles burn more slowly if chilled in the fridge before lighting. Reuse old cuts of carpet as door mats or insulation.

Fingers crossed, the economic recovery will start to filter down to the rest of us. Until then, however, we will have to keep making the most of what we have. That building you live in is not just for eating and sleeping in - it can be a nice little earner, too.

telegraph

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Regeneration work helps to boost the popularity of Pimlico

Pimlico is one of the nicer places in London to live. It is a small area of West London located in the City of Westminster. Known for its grand garden squares and impressive architecture, it has always been a popular hotspot among domestic and overseas residents. It is particularly renowned for its arts scene, notable people and development over the years. The area recently hit the headlines thanks to several regeneration projects that are taking place in the suburb and across the borough of Westminster. Westminster is a vast, metropolitan borough in the capital, home to Westminster Abbey,and it incorporates much of Central London including most of the West End. Its most popular tourist attractions are Buckingham Palace, Big Ben and the Houses of Parliament. Houses in this area of the UK are often in high demand and there are nearly always improvements being made to the different towns that make up the borough. For example, Westminster Council recently announced that more than 1,000 new homes will be built after a Ј200 million regeneration scheme was implemented by the council. Two projects at Ebury Bridge Estate in Pimlico and the Church Street area of Marylebone both received the green light from the public who voted on the scheme, which will be particularly beneficial for residents in the area. Over Ј100 million will be spent on Ebury Bridge Estate alone, blocks will be renovated or rebuilt and open spaces landscaped. Westminster Council is also focussing on building affordable homes in the area, which will see apartment blocks being renovated or rebuilt while open spaces and parks will be landscaped. The plans will also include a new community and health centre on Lisson Grove and a new play and sports facility on Luton Street. Additionally, further improvements will be implemented across Pimlico, which even includes an area-wide heating system designed to reduce residents' energy bills. It is estimated that over 300 jobs and 100 apprenticeships will be created as a result of the scheme. Councillor Jonathan Glanz, Westminster City Council's cabinet member for housing, highlighted the overwhelming public support for the scheme. He added: "I am delighted with the incredibly positive outcomes of these votes, which is a result of the council working incredibly hard alongside residents over a number of years to develop plans which will deliver sustainable regeneration. "Their emphatic approval of these plans means that work can now begin on building new homes for those on housing lists, but also on creating better homes for existing residents, building new community facilities, and improving open spaces and the public realm of the area, helping to improve lives in Westminster. "This project is a real example of local people taking responsibility for shaping their communities, and we will continue to work with residents throughout our regeneration programme. I am looking forward to seeing residents in other renewal areas of Westminster have their say on our plans for regeneration later this year." A new playground and retail units will also be built in Ebury Bridge Road.  When it came to the public vote, 59.6 per cent of residents turned out to vote on the proposals and over 78 per cent of residents in Ebury Bridge were in favour of the changes. In Marylebone on the other hand, around 45 new replacement one-bedroom sheltered homes will be constructed for current elderly residents in the Penn House area, while a new fund will help to improve the overall management of the neighbourhood.
net-lettings

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Southwark Council injects money into park regeneration

Southwark Council has pumped millions of pounds into the upkeep of its parks, according to new research.

The council announced that eight Southwark parks have secured funding from the Queen Elizabeth II Field's London Legacy Fund.

Around Ј10,000 will be set aside for each park to fund projects that help to improve children's playgrounds, parks, recreation grounds, nature reserves, football and rugby pitches.

The money will also go towards cricket fields, tennis courts, new floodlighting, outdoor gyms, outdoor table tennis tables and activity programmes.

Affected parks will include Southwark park, Dulwich park, Peckham Rye, Birmingham park, Burgess, Warwick Gardens and Russia Dock Woodlands, among others.

Commenting on the changes, councillor Barrie Hargrove, cabinet member for transport, environment and recycling, said it has been a great year for the borough.

He added: "I am pleased to have been successful in the bids for the London Legacy Funding. We now have the opportunity to further invest in our parks with new play facilities for young people and landscape improvements.

"It's been a fantastic year for our parks across the borough. Not only have we received new Green Flag Awards and opened a first class BMX track, but we've also had a really positive response from our recent resident satisfaction survey results."

Southwark has been in the news lately due to the number of positive changes that have been made in the borough.

It recently signed up to Unison's Ethical Home Care Charter designed to improve working conditions for hundreds of local care workers.

The council believes that it will also boost the provision of care for elderly people in Southwark.

It also recently launched a scheme where entrepreneurs were invited to bid for a share of a Ј50,000 funding pot in the business bursary offer.

 The scheme offers young people the chance to pitch their business ideas to a panel in the hope of receiving funding to finance their enterprise.
net-lettings

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Relax? Is There An App For That?

Modern living certainly has its advantages but there are days where I yearn for a simpler life and wonder what it was like to live before cellphones, the Internet, television, cars, corporations and the comments section on any news article. Wasn't life less stressful before things like social media came along, and told us how we should feel about issues that affect society? Who needs independent thought and opinion when Twitter has one for you?


Part of me quite likes the idea of living 300 years ago. But then I consider how indoor plumbing, cures for illnesses and Grumpy Cat have made my existence infinitely better. Despite our increasingly stressful lives we can all find ways to chill out. And being the suburbanites and city dwellers that we are, there are all sorts of gadgets, furniture and gizmos that can aid our quest to unwind.


The Hammock
Can you think of a better way to forget about your worries than a snooze in a hammock? There is quite a bit of choice here with thick cord, Mexican chair and lounger type hammocks available. You can buy a hammock on its own and fasten it between two trees or buy one that is fitted to a stand. If you failed to get a knot-tying badge in scouts I recommend the stand.


For the time pressed, a number of online retailers have products that they will deliver: Try www.hammockshop.co.za and dreamtimehammocks.co.za.


Wearable back-massager
I would love to have been in this product development meeting. Somewhere, in some cupboard, beneath a pile of notes, is a sketch of a pint-sized masseuse that gives massages while you piggyback him or her on your daily routine. Luckily, the VertaBrate has evolved since inception and is now a sleek device that you wear under your clothes. According to this article, it clings to the skin and then "begins a deep massage by embedding four vibrating nodes in the back."


USB Aromatherapy
If you're susceptible to placebos or just enjoy certain scents, this USB powered dispenser is perfect for those times at the office where you feel the need to pulverise your PC with a hammer. The odds are that if you don't buy into aromatherapy already, you won't see any benefit in this device. And if it's your USB drive that is making you upset, you'll have an extra level of frustration to deal with.


The Amber Elixir Of Wonderment
There is an elixir that is known throughout the worlds to make those who imbibe it relax. A word of warning though - imbibe too much and you may dance on tables or bore strangers with tales of that time you met a celebrity (who I can assure you tells no one of the time he met you).


You may struggle to find "The Amber Elixir Of Wonderment" online. Do a search for "beer".


That Frankie chap had the right idea all the way back in 1983. We all need to relax.
 privateproperty

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Expats ‘should use a letting agent

Northern Ireland's property market seems to be turning a corner. Prices remain around half what they were pre-recession, but latest signals suggest property values are beginning to rise.

In this environment, many expats and foreign investors might be looking at buying a property in Northern Ireland to rent out. This offers lots of opportunities, but it's important to make sure someone is on hand to look after your investment while you are thousands of miles away.

That's where letting agents come in. They are perhaps the most important person you will deal with - you will rely on them to make the investment successful and hassle-free.

It's wise to get advice from an agent affiliated to a professional organisation, as they will be trained, offer client money protection and there is a redress scheme in place if things go wrong.

You should also speak to them about tax, with HM Revenue and Customs earlier this year launching a new crackdown on expats who own rental property in Britain and Northern Ireland.

Eric Bowman, a British expat living in Estonia, is one example of how finding the right agent is crucial. Having spent lots of time and effort going it alone, he has now found a letting agent who can look after every aspect on his behalf.

"It requires a fair amount of trust, but my lettings agent deals with everything. I couldn't do it on my own," Mr Bowman told The Telegraph.

He pays a six per cent fee for full management, and does "absolutely nothing apart from answer their emails". It's an arrangement that works very well. Mr Bowman has only been back to the UK twice in nine years and didn't even visit his properties. 

Landlords based abroad can use a currency exchange specialist to set up regular payments to agents to manage their properties.

Currencies Direct could save you up to 4% on the purchase price of your property. If you are buying or selling your property abroad, Currencies Direct have the expertise to ensure you benefit from a maximum return.

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German business confidence improves as growth continues

German business confidence improved in November, a survey has indicated, amid rising optimism about the economy.

The closely-watched Ifo survey of business confidence revealed an above-expected rise in November, reaching its highest level since April 2012.

The index, based on a survey of 7,000 firms, rose to 109.3, compared with 107.4 in October.

The news comes as official figures confirmed that the German economy grew by 0.3% in the third quarter.

Strong domestic demand for goods helped to drive growth. A healthy labour market, moderate inflation and wage increases boosted household spending and contributed to a 0.7% increase in domestic demand, the Federal Statistics Office said.

The Bundesbank, Germany's central bank, believes the country's steady growth will be maintained as domestic demand strengthens and the global economic environment improves.

Some analysts are expecting 0.5% growth in the final quarter.

Angela Merkel's government has forecast growth of 0.5% overall for 2013, and 1.7% growth in 2014.

Rebalancing
The rise in business confidence reflects a 3% rise in capital investment in the third quarter, particularly in construction.

While weakening demand from eurozone partners has slowed Germany's traditionally export-led economy, Berlin hopes improved domestic demand will make up the difference.

The European Commission is investigating Germany's persistently high current account surplus amid criticism that it relies too heavily on exports.

"With today's data the latest criticism on the German growth model looks a bit like crying over spilled milk," said Carsten Brzeski, senior economist at ING.

"The often called for rebalancing of the economy is already taking place."

The news comes a day after Markit's preliminary composite Purchasing Managers' Index, which tracks growth in the manufacturing and services sectors, rose to 54.3 in November, up from 53.2 the previous month.

This figure was also higher than expected, and adds weight to the positive German growth story.

bbc

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