RICS Business catches up with John Raiye, Investment Manager at Ikos Investments.

Can you describe your work?
Ikos Investments is a property agency that offers investors the opportunity to invest directly in property in emerging European economies. 

I work as an investment manager, advising clients on the range of property investment opportunities available. I am also an investor and developer in residential property. I am currently most active in Eastern Europe, in countries including Latvia, Bulgaria, Hungary and Poland.

Essentially I look for private partners with initial capital of perhaps £10 000 to £100 000. The first thing I do is form companies with them, which enables us to purchase property and start investing. I then manage the rest of the process, dealing with all matters from initial purchase to renovation and, eventually, selling on.

What got you interested in surveying?
I wanted to work in finance, and surveying allowed me to do this in a practical way. I studied quantity surveying at Kingston University and gained my chartered status while working at AYH in London. I then developed a further grounding in propertydevelopment and project management while at AMEC Developments in Manchester.

So how did the transition from quantity surveying to property development happen?
I bought a property in Salford using around £5 000 of personal savings. I was 26 at the time and I bought it for £50 000. I renovated it, let it for a while and then sold it for £106 000. At this stage it was just a hobby and a chance to make a bit of money on top of my salary. After repeating the process a few times I realised I could do this full-time for myself and make a living from it. This is how my business was born.

And how successful has the business been?
Very. I’ve grown my initial £5 000 to around £250 000, which is currently equity in properties in parts of Eastern Europe and in the UK. I started off in the North West and built a small portfolio of investment properties. I then started focusing on the emerging European property markets. Riga (pictured right) has produced some excellent returns over the past year and we are currently renovating properties in Budapest and Sofia. We focus on cities and generally try to resell and move on to new ventures. Ikos Investments is also developing quite well. We now have over 1 500 active property investors on our database.

What do you enjoy most about being your own boss?
I love the independence and free reign you have – you are able to make your own decisions. There is also the flexibility in your working routine. Sometimes I wake up at 7am and start working straight away; other times I start later and work late into the evening.

What does RICS mean to you?
Becoming a chartered surveyor provided me with a professional qualification that gave me more confidence. The MRICS letters gave me the confidence to start my own property business. I can’t see why anybody else should have more ‘know-how’ about making money from property than a chartered surveyor.

What are your future career ambitions?
I want to grow my own investment interests in other markets. I am currently looking at Bucharest in Romania and Bratislava in Slovakia. I have also started looking at residential development projects within the UK with a private property investor. The market is tougher here, but we are sticking with the basic formula – pay the right price, create the right product (within budget!), formulate a good marketing plan and sell at the right price.

So where do you think people should look to invest in the UK
It has become much harder to profit from UK residential property investment. It is now very important to meticulously research your location and become familiar with the local market place. When you have that knowledge, spotting good value becomes easier. In the current market, buying at the right price is also important, as the market will not automatically bring returns. And it’s always safer to keep your options open – buy to sell for capital gain, but buying to let should always be an option for the long-term.

This article appeared in RICS Business, June 2006.