0299 AUR En Voyage Issue #18 Flickbook

Business
CHANNEL ISLANDS ARE
BEACONS OF STABILITY
IN TURBULENT TIMES
By Simon Torode, Founder, CEO, Livingroom Estate Agents
ADVERTORIAL
Uncertainty continues to be
the watchword for the global
economy but the Channel Islands
have proved to be resilient in the
face of the shifting global sands.
Fortunately our own sands remain
firm (not to mention golden!) and
the islands offer evidence that
stable systems of government,
economies and societies are the
key ingredients for building a
healthy and successful lifestyle.
Livingroom Founder, CEO, Simon
Torode takes a look at how the
islands are weathering the global
storms and how their property
markets are thriving as a result.
In economic circles there is a wellknown
and accepted theory called
the ‘Financial Instability Hypothesis’
which states that, contrary to what
one might think, a stable economy
actually breeds instability.
Unfortunately, it took the 2008
subprime mortgage crisis to
hit the US and ricochet around
the world for this theory to be
accepted, by which time the
American economist behind it -
Hyman Minsky – had long since
passed away. Minsky claimed
that where there is a stable
economy people are more likely
to take risks and this in turn causes
financial instability and potentially
leads to economic crisis.
Looking at the UK’s post-war
boom-and-bust cycle, this theory
certainly makes sense and our
Channel Islands can never claim
to be immune to recession or
financial crisis. However, we have
survived the financial storms of the
last century better than a number
of our counterparts. Why is that
the case and what are the trends
we are seeing in each island?
HEALTHY PROPERTY MARKETS
As the only pan-Channel Island
estate agency that was founded
in the islands, we’re uniquely
placed to offer a view not just
about our local property markets
but also island life as a whole and
what makes the islands tick.
UNCERTAINTY CONTINUES
TO BE THE WATCHWORD
FOR THE GLOBAL
ECONOMY BUT THE
CHANNEL ISLANDS HAVE
PROVED TO BE RESILIENT
IN THE FACE OF THE
SHIFTING GLOBAL SANDS
Of course we in the islands aren’t
isolated from the wider world and
no-one can claim to escape from
the daily headlines dominated by
Brexit. What the United Kingdom’s
departure from the EU is eventually
going to look like is (still!) up in the
air at the time of writing. However,
what has become increasingly
apparent over the course of 2019
is that the Channel Islands are
effectively weathering the storm
of uncertainty to stand as beacons
of stability in turbulent times.
Positivity is impacting the islands’
property markets and affecting
prices. Even where we may not have
seen significant price increases,
the Channel Islands’ markets have
firmly held their value and the
market has remained buoyant and
active, which is much more than
can be said for swathes of the UK.
STABILITY HELPS BUILD
FOR THE FUTURE
Despite the UK’s lack of clarity,
the Bailiwicks of Guernsey and
Jersey continue to maintain
good relationships with the UK
Government and its European
counterparts. We continue to
facilitate work into the UK and into
Europe. We continue to attract new
residents from around the world.
We continue to be seen as centres
of excellence for financial services.
As those of us who live here know
so well, the islands represent a
stable option for building a fulfilling,
safe and secure future. More and
more people are realising that
and we’re delighted to share the
islands’ success with the world by
marketing them to prospective
new islanders around the globe.
Think a more stable lifestyle
might be for you?
Get in touch with the Livingroom
team in Guernsey
on +44 1481 715555 or at
livingroom.gg or in Jersey
on +44 1534 717100 or at
livingroom.je.
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