PROPERTY developer Bob Lowres is the managing director of Relcorp .
He is also the force behind the Naisoso Island project - a $400 million luxury development on tranquil Nadi Bay in Fiji. Naisoso is also the property tycoon's biggest investment to date.
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What was your first investment and how did it go?
My first real investment was the second home I built in my back yard at the time the land was more valuable than the house. I sold both houses a short time later and doubled my return on investment.
What is your favourite type of investment and why?
I prefer to invest in property as that's where my own expertise and experience lies, but I also believe property offers you greater control of your own destiny unlike shares which leave your investment in the hands of someone else.
What is the best investment advice you have received and who was it from?
It was from my wife Libby. We holidayed in Fiji for years but it was Libby who eventually suggested we buy there. Our home in Denarau turned out to be the best and most lucrative investment we have ever made.
How do you approach investment risk?
Cautiously. In my business, I always pre-sell and lock in costs before building starts. Construction does not begin until the debt is covered.
What has been your best-performing investment?
The home that I live in now. My wife and I bought land in Denarau for $1.2 million four years ago. In that time, its value has increased by 400 per cent, testament to the strength of Fiji's property market.
And the worst?
A share purchase which didn't deliver the result I'd been led to expect. It taught me a valuable lesson about never putting my destiny in other people's hands.
Where do you get your information about investing?
As a property developer, I'm a big believer in market research and like to look at sales data to find out where the market is and what people are paying.
How would you invest a $25,000 lump sum if you were given it tomorrow?
I'd use the money for a deposit on a property.
How do you feel about managed funds?
I don't invest in managed funds. I prefer to put my money in property.
How do you feel about investing overseas?
If I were talking specifically about property, it's essential to weigh up the pros and cons. Is the exchange rate favourable? Is the area well-serviced with flights? Is the land freehold? What are the legalities of buying there? These are all important elements to consider before taking the plunge.
Do you use a financial planner?Yes. PricewaterhouseCoopers are an integral part of my business and also assist me with personal financial planning.
Do you make extra repayments off your mortgage?
No I prefer to use the equity in my assets to invest elsewhere if I believe I will see an exponential return on those funds.
How well do you treat your credit card?
I do abuse it, but I never spend beyond my means and always pay off the amount in full before interest accrues.
How do you feel about life and disability insurance?
Both life insurance and disability insurance are very important in my mind no one has a mortgage on good health.
Do you have a personal finance budget and do you stick to it?
I do have a personal finance budget and while I don't stick to it strictly, I have a good grip on the bigger picture.
What's the most extravagant purchase you have made?
There are two the first is my boat, a 15m Riviera Sports Cruiser. I bought it four years ago and its worth every penny it's the perfect antidote to stress and puts me into total relaxation mode. The second is Naisoso Island, which I purchased for $4.7 million in 2006. When complete the investment will be worth about $400 million.
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