JOHN HITCHCOX, 48, is an influential property developer credited with pioneering loft living in London. He now heads Yoo, the global property branding, design and investment company.

Yoo is involved in 42 projects in 27 countries and is developing more than 10,000 apartments valued at $7 billion (£4.2 billion). He is featured in the business pages and in glossy magazines, where there has been much written about his relationships with former girlfriends including Elle Macpherson, Caprice and Kate Moss. He is currently looking to raise £50m to launch a property fund.

Hitchcox, twice divorced, lives with his son Henry, 18, and two daughters Pia, 16 and Lily, 6, in London and the Cotswolds. His book, Yoo Interiors, is out next month.

How much money do you have in your wallet?

About £100, which is quite typical. I’d much rather use cards.

What credit cards do you use?

My main card is a Barclaycard. I have another for business use. I also have an American Express, which gives me British Airways miles.

Are you a saver or a spender?

Both. I reinvest all that I do not spend into my businesses and property. I do spend money on my instruments, though. I play the guitar, the saxophone and the piano.

How much did you earn last year?

I hope it’s at least six figures. I draw a salary from Yoo and I also have a number of other investments. I’m a shareholder in estate agents Green and Co. Turnover is undoubtedly down, but we’ve not had to close any branches. In fact, we’ve recently opened one in Crouch End, north London.

Do you own a property?

I have two. The main one is in Notting Hill, west London. I have a recording studio and a swimming pool there. It’s a five-bedroom Victorian house worth about £8m. I bought it in 2000 for £2m and then spent about £1.5m doing it up.

I also have a house in Lechlade, in the Cotswolds Water Park, worth about £1m. It has four bedrooms and sits by the lake. I can see a mile of water from my window. I spend weekends there.

Have you ever been really hard up?

Yes. I wasn’t born into money and there have certainly been times when it was very much hand to mouth.

My first development project was a little house in Caterham, Surrey, which I bought for £19,200 in 1981. I spent £13,000 refurbishing it and dividing it into two flats. I had the property for about eight months and then sold each flat for £19,000.

It was difficult getting money from the banks but I persuaded my mum to lend me £45 to buy a suit so I’d have a better chance.

I used to time how long it would take before a bank threw me out. I had no experience and little money to put down, so it wasn’t surprising. Eventually, NatWest accepted and offered 100% of the property value.

I bought during a recession so I got a good price, but my warning for anyone thinking of picking up a property now is to expect the development to cost much more and take much longer than they expect — my initial budget for the Caterham property was £7,000.

What was your first job?

I was a paperboy when I was 11. It was in East Sussex, in a place called Forest Row. I was paid £1.50 a week. At the weekends I worked as a caddy for a golf club and that paid £1.50 a day. If I was very lucky, I’d get a 25p tip.

What has been your most lucrative work and did you use the money to buy anything special?

Starting up Yoo in 2000. I invested about £2m, but before the credit crunch it was worth £170m. Like everyone else, we’ve had a tough time over the past couple of years, although I think I was fairly well positioned because I moved much of my money out of equities and into emerging market funds and cash before the worst of the downturn.

So why are you launching a property fund in the current climate?

Now is a fantastic opportunity to invest in property. Property runs in cycles and whether or not we’re at the lowest point, we’re certainly considerably lower than we were two years ago. The fundamentals are sound. Both land and commercial property are looking cheap but developers remain starved of bank finance.

Our approach is opportunistic. It’s a matter of waiting to see what’s coming up. We’re looking for good value and also where we can add value with branding, marketing and design. We are currently looking at a portfolio of 750 apartments in Sweden, where I have a business associate. We also bought the dog track in Walthamstow and are about to submit a planning application for a large residential scheme there.

Are you better off than your parents?

Yes, but I say that with a great degree of humility. My father was an architect and my mother was a housewife. My parents were very active with their smallholding in Sussex — it was like growing up on the set of The Good Life. We had goats, cows and sheep.

Do you invest in shares?

I have, but I got out of the stock market more than two years ago. I could not see the market sustaining itself. I was concerned about how much the banks were lending — offering 105% of a property’s value on an interest-only basis. Another sign was not being able to get a taxi on the street. When too many people start taking taxis, you know things can’t go on.

Unfortunately, I put quite a large chunk of money into an AIG bond after my adviser told me it was a safe investment. When the company started facing problems, it blocked investors from withdrawing all their cash.

I know there are groups mounting a legal case against their advisers over AIG. I have a potential claim but I just haven’t got round to it. I prefer to do positive things. The adviser is lucky in that respect.

What’s better – property or pension?

I think they’re both good. I’m 100% in cash within my pension at the moment but I’m starting to look at some very high-yielding commercial property for the fund.

An unemployment office in the Midlands, leased to the government for the next nine years, is one option.

What’s been your best investment?

My children.

What about worst?

Probably the AIG one. I had £5m in there but was able to withdraw only half of it. The rest has been locked up until 2012, with no guarantee of getting back any of it. It’s a complete and utter mess.

I still have about £200,000 tied up with Lehman, too. It’s going to take some time before it’s all sorted because nobody seems to know where all the money is. I had a cash fund with them, I know my money is safe. I’m waiting for the administrators to sort it out.

What’s the most extravagant thing you have ever bought?

Apart from the house in the Cotswolds, probably my bikes. They’re not expensive — about £150 each — but I have them in London, New York, Miami and so on.

What aspect of the tax system would you change?

The huge discrepancy between income tax (at 50% from next April) and capital gains tax (at 18%) seems like a poorly thought-out decision. You may see more people taking minimal salaries but with very lucrative share options.

What’s your financial priority?

I’m keen to recoup some of my losses over the past two years.

What is the most important lesson you have learnt about money?

Money comes and goes. You mustn’t get too attached to it.