Lamudi Bangladesh's - Property Now Issue #6 by Lamudi BD

RAMADAN

VAT & TAX DECISIONS

The budget always brings with it numerous quakes of effect that ripple through the economy. With the announcement, and subsequent postponement, of the uniform 15% VAT across all ﬁelds, the reactions have been no less stimulating. Currently, there is no evidence to gauge the immediate effects of the announcement, though developers and investors everywhere must have breathed a sigh of relief at being granted a grace period.

10 MARKET COMPARISON

12 TRUMP

It has been six months since Trump has taken the oath and many local experts have voiced their opinions on what has happened so far, and what to expect in the future. Some predict the new protectionist policy of the US might hurt the bottom-line of certain export industries in Bangladesh, while others argue that there are unseen beneﬁts to the countries rising economy, especially towards the nation’s hungry real-estate industry.

16 REAL ESTATE MARKET TRENDS

2017 has been a challenging year so far for real estate. Most of the year has been rapt with uncertainty in the aftermath of two seismic events—Brexit and the US elections. Anyone thinking of buying property has become hesitant; prudence is the name of the game until there is more clarity about how these unexpected events will affect global markets. Now that Theresa May has only managed a minority coalition English investors are once again caught in a seemingly endless loop of instability.

Q&A

PLANTS

Pricing a property right is just as important as marketing it when selling, and having it appraised by a real estate professional ensures it is set at an amount that is fair and effectively sells.

THE IMPORTANCE OF A HOME INSPECTION

You have just moved into your dream home, you hug your wife and take a cold drink from the fridge. It’s a wonderful moment to experience after months of home-hunting and signing documents that you thought would never end. All of a sudden, you hear something squeaking in the attic.

PURBACHAL

10 WAYS

Although foreigners are not allowed to own land in the Philippines, they are very much a key component of the local real estate market, and making a good impression on them can be beneﬁcial for real estate brokers Although the 1987 Constitution presently states only Filipino citizens are allowed to own land in the country, it has not prevented foreign buyers from taking interest in living and/or acquiring property here.

26 THE ADVANTAGES OF PURCHASING A PRESELLING PROPERTY Sometimes referred to as off-plan properties, here are some of the beneﬁts of buying real estate during its preselling stage.

On a Lighter Note

38 5 HOUSES

Where you live can reveal a lot about your true character. If that is to be believed the folks living in these weird and wonderful houses have a lot of explaining to do. From an upside down house to a house fashioned out of a giant boulder, feast your eyes on ﬁve of the world’s most unusual abodes.

6 Dear Reader, Thank you for taking a moment to read our newest Property Now: State of the Business. With Ramadan & Eid-ul-fitr behind us, it is time to reflect on the first half of the year, and look at how the industry is doing. What is the state of the business? At Lamudi, we would like to support you with this question and have therefore undertaken different views of research At first, we have analysed the Ramadan effect on the real estate business. In the most holy month, it is known that in all sectors business tends to slow down, but is there more information available to illustrate the seasonality and its effects on the industry? Secondly, we have done a country comparison between Bangladesh and Sri Lanka. Sri Lanka, although much smaller, has a booming luxury segment, and competition is very strong. What are the challenges and opportunities for Sri Lanka? And when put next to each other, do the numbers differ greatly? Furthermore, on the 20th of July President Trump will have learn in office for six months on the dot. How has it effected the world economy, Bangladesh and even more specific, is there an effect on real estate in Bangladesh? What can we expect from his policies to come? As well, Bangladesh has been in the grip of the possible single and uniform VAT rate implementation from the 1st July. However, on the 28th May it was announced that this will be delayed until 2019. What does this mean for the real estate industry now, and in the future? In a one-pager we elaborate on the possible scenario’s that come out from this decision. Moreover, we asked ourselves the question: what is the progress Purbachal New Town? In this magazine we give you a low-down of the current state of the business, and the steps ahead for this gigantic project. At Lamudi we are looking towards an exciting and fruitful second half year. As more & more multinationals are coming to Bangladesh the commercial real estate market gets a little push, which creates exciting opportunities. Together with the exemption of the VAT, we expect business to increase the upcoming 2 years, and foresee Lamudi growing faster than ever. This could have to do with all the plants we have in the office. May you need some extra support for the second half of 2017, on page 33 you will find an overview of plants that bring luck to your home :). Happy reading, and is you have any feedback or questions, please do get in touch.

Anne Maria Hermans

Ramadan is one of the biggest festivals in Bangladesh and other Islamic countries across the world, and that period is extremely holy for all Muslims. In countries that follow the religion very strictly, even non-Muslims are made to follow the traditions and obey the rules and regulations. This is the period where people engage in doing good deed and praying. While being considered as a period of abstention, Ramadan is also known to be a period of receiving while letting go. There is so much said and written about buying and selling property during Ramadan. In the middle of all the festivities, is buying and selling property a smart decision to make during the Ramadan season? We at Lamudi want to dive in deep to provide you reliable information about the patterns and ďŹ&#x201A;uctuations of the real estate industry during this holy month.

Market behavior According to an article Dhaka Tribune published in the year of 2014, around 55 million people fast in Bangladesh. And this counts for 90% of the Muslim population in the country. The country spends at least Tk 5.8 bn every day during the period of Ramadan and the number keeps increasing every year. The countryâ&#x20AC;&#x2122;s economy is worth at least Tk 377 bn minimum during this holy month. The Ramadan season traditionally extends to a period of one month, and makes major changes to an average consumerâ&#x20AC;&#x2122;s day to day lifestyle. In lieu of engaging in entertainment activities, Muslims and

non-Muslims traditionally spend this period engaging in prayers, religious activities, and charity work. This is also an ideal period for Muslims to spend time with their families and attend family gatherings. In the business world, a clear decrease in business operations can be seen. Even though businesses would like to maintain their productivity levels unchanged, since most Muslims devote their time to fast, pray, take part in religious activities and be with their families, their physical energy levels tend to go down. As a result normal working hours are reduced, business operations slow down and some small scale business may even close down until Ramadan ends. During this holy month some most businesses tend to close down one hour before and few after sunset. An article published on The Market Mogul proclaims that the 2 hours of reduction from normal working hours during the Holy month has resulted in countries like Egypt and Pakistan, a drop in their monthly GDP by 7.7% is observed.

The real estate market The real estate market usually sees a drop in sales during the period of Ramadan. This is mainly due to the lack of active property seekers looking to purchase and rent properties and lack of property sellers. Since almost every Muslim individual spends their time taking part in religious activities, there is a visible drop in the number of client calls and active property searches and on-site visits. However, these days technology plays a deﬁning role in the world of real-estate. The Arabian Business writes that: “Consumers are spending more and more of their free time browsing the web on their mobiles, tablets, laptops, desktops and even their smart TVs.” This has shown in data of other Lamudi Ventures, in Saudi-Arabia, UAE, Jordan and Qatar. There, the rate of online searches on Lamudi has actually increased. This could be a result of Property seekers spending more time indoors, and therefore taking their property search online. In Bangladesh, Lamudi.com.bd did see the seasonality of Ramadan during the month, with a drop in average number of visitors. However, already during the ﬁrst day of EID, visitor numbers recovered, and seared over the next 2 days.

What does this mean? Despite the decreasing property sales, the increase in online searches could mean that Ramadan is a great time for real estate agents to build their online visibility. Real estate are encouraged to capitalize on the situation by elevating their brand awareness to reach out to as many people they can in order to get back in track once the Ramadan period comes to an end. Furthermore, Ramadan is also considered as a time to reunite with family members and relatives. Statistics generated from “The Arabian Marketer” reveals that in countries like the UAE, Saudi Arabia and Egypt, 43% of the people expect to travel during Eid where 53% of them travel within the country. This could also mean that the demand for holiday homes for rent has a higher chance of increasing than any other property. If you are looking to purchase, rent or sell properties make sure you are well informed about the regulations and proper timings of the season. Since the fasting period begins at sun rise and ends with sun set, the ideal time to check properties is after sun set. If you are a real estate agent or developer, Ramadan could be a lucrative season for you to revamp your online presence. Implement strategies to attract a larger target market, so that you’ll be well

Effect of VAT on Real Estate Industry SUBAH SHAHEEN

The budget always brings with it numerous quakes of eﬀect that ripple through the economy. With the announcement, and subsequent postponement, of the uniform 15% VAT across all ﬁelds, the reactions have been no less stimulating.

profit could make it much more difficult for developers to finalize different projects. May they choose to sell their product for higher prices, demand could drop to again negatively influence the cashflow.

Currently, there is no evidence to gauge the immediate eﬀects of the announcement, though developers and investors everywhere must have breathed a sigh of relief at being granted a grace period. The interim time will allow real estate companies and private individuals to strategize their next course of action. Macro-economically, this has saved the nation from inﬂation for the time being, which could have been severe, especially with the elections coming up next year.

As for now, what the business world fears most, is the crowding out effect; the government postponing the tax increase in 15 sectors including real estate, is roughly going to cost the government some BDT 67,000 crore, and the most anticipated way for the government to finance that, is by borrowing from commercial banks. This would cause private investment to reduce drastically, and potentially have a number of downward spiraling effects. The expansion of the economy would be slower with one component of aggregate demand drying up, and as commerce slows down, unemployment could increase. Additionally, the new VAT law will make it more difficult for consumers to spend, by reducing their disposable income.

For those seeking a roof over their heads, this tax will simply make the struggle to make ends meet harder. Also rent prices might increase in the face of this tax, as producers often attempt to pass on the additional expense to the consumers. A lot of the ‘who pays what,’ will depend on the negotiating capabilities of the parties involved. Chances of rent decreasing in the face of this decision are low, though not altogether impossible. A black market for rent could be on the rise, needing supervision to control. For investors and property owners, this will be an expense they cannot navigate around easily. Also for the real estate industry, the additional tax will complicate their business model. Buildings are on the rise in Dhaka and adjacent areas, but a drop in

The full implementation of the new VAT law across various areas of the economy, will see a number of little changes shape up and merge with the norm of the economic system. That is why this new VAT law, part of the set of IMF conditions for the Extended Credit Facility Program, maybe in the short time create some challenges, but should bring good news for the country in the years to come.

Bangladesh

Sri Lanka

Population

163.187 million

22.235 million

Size of the country

147,610 km²

65,610 km²

Capital city

Dhaka

Sri Jayawardanapura Kotte

GDP per capita

4,207 USD

11 ,417 US D

While an average Sri Lankan lives 3.6 years longer than a Bangladeshi and is 8.2% less likely to be unemployed, comparing Bangladesh and Sri Lanka, it is quite impossible to not notice that both these countries are composed with similar traditional, religious and cultural values. On top of that, both countries have great geographical advantages and have been elevating towards success dramatically within the recent years. Going back in time, the Sri Lankan and Bangladeshi relationship started even before they were subjected to the many foreign invasions. Historical records indicate that King Vijaya, the ﬁrst king in Sri Lanka had ancestors in Vanga Kingdom currently located in modern Bangladesh. Bangladesh has also been an integral part in introducing Buddhism to Sri Lanka. Thereafter this bond was strengthened by many agreements signed between both countries. Bangladesh and Sri Lanka established diplomatic relationships in the year of 1972 after Bangladesh gained independence in 1971 after a 9 month war.

Real Estate Real estate in Bangladesh began after liberation in 1971 and is one of the main segments that generate revenue in the country. While providing a huge number of employment opportunities, the country’s real estate industry also stimulates demand for many other industries like steel, tiles, construction material and tech. Even though the real estate industry

observed a major downfall in the year of 2012 and 2014, the industry has started to pick up again. Interest rates have fallen from a 17% to a 9% consequently boosting consumer conﬁdence. The GDP contribution from the construction industry indicated an all-time high of 6,172.90 BDT Million in 2016 from 5,669.80 BDT Million in 2015. In Sri Lanka, the real estate segment has shown a steady growth ever since the country ended its 30 year long civil conﬂict. The GDP rates have escalated by 7% annually with the market currently observing great demands for the luxury properties within Colombo. Colombo, the commercial capital of the country shows the highest demand for property search for residential and commercial purposes and this has increased by 20% during the years of 2014 and 2015.

Investing in Real Estate Bangladesh

Bangladesh is currently emerging as a lucrative investment destination thanks to its booming economy, stabilized government policies and the increasing population. Housing properties within the country comes in different sizes and shapes and it is worth the money you invest. If you look closely, you would also notice that construction is affordable too. Moreover, the interest rates for home loans have gone down significantly giving rise to consumer confidence. However, the lack of demand for housing properties within the country, could be due to the high registration fee for home loans that takes up 14% of the property’s value.

Sri Lanka

The growth in Economy In comparison to Sri Lanka, the Bangladesh economy seems to be at a much better position. The economy in the country has shown tremendous growth within the recent years recording a 7.11% GDP growth in 2015-2016 from a growth of 6.6% in 2015 (GDP per capital indicated a total of $686.598 billion in 2016). The economy grew by 6% per year since 1996 despite of the political unrest and other conﬂicts. Based on statistics generated by IMF, the country became the second fastest growing economy in 2016. The same year Sri Lanka indicated a GDP of 81. 322 Billion From a GDP rate of 80.612 in the year of 2015. The country showed a growth rate of 4.5%. In terms of foreign investments, Bangladesh FDI stands at an all-time high at US$2003.53 Million in 2016 representing a 9.25% increase compared to the year of 2014-2015. Over the same course of time, Sri Lankan FDI dropped to a 45.6% reaching slightly over US$300 million in 2016 from $658 million in 2015.

The Sri Lankan real estate market, ranging from residential to commercial properties, has seen substantial growth over the past seven years. Both, local and international investors have publicized high interest towards the Colombo region and its suburbs which has become a highly attractive investment zone in the Asian hemisphere. With the area on demand, the price of properties has grown signiﬁcantly over the past 12 months. Although demand along with the prices has gone up, the lack of mid-range apartments created an untapped market of buyers who are looking for a prime location within the city. Due to the increase in demand towards commercial space several developers have begun to implement a mixed development in the Colombo region, to eﬃciently utilize the growing demand. The market is currently indicating high demand towards mid-range residencies, luxury condos as well as commercial spaces within the city of Colombo.

Most popular areas for properties It is evident that most property seekers are driven towards hunting for properties in the capital of Bangladesh, Dhaka while Sri Lankan property seekers prefer investing in properties within the commercial capital, Colombo. Unlike the past, most family structures in both Sri Lanka as well as Bangladesh have shifted from extended families to nuclear family with limited family members. Due to the increasing urbanization, people tend to move towards the highly urbanized cities. Among the property types that gain the highest demand are apartments, both in Sri Lanka, as well as in Bangladesh.

6 MONTHS PRESIDENT T R U M P

What has happened so far?

Potential Impact on the Bangladeshi Economy The new president’s “America First” policy might have a negative inﬂuence on Bangladesh’s business outsourcing (BPO) industry, bearing in mind that the USA is the largest destination for Bangladeshi products after the European Union. There is yet to be made a tax on foreign made apparels, which could have a huge impact. In the last ﬁscal year alone, Bangladesh exported US$6.22 billion worth of goods to the USA, of which $5.62 billion came from the Ready-Made Garments (RMG) sector.

Trump made in Bangladesh During the elections, it became clear that some of the products, for instance Trump’s iconic red baseball cap stating: “make America great again” were Bangladesh produce. Now, this July 17th, the Washington Post revealed that also his daughters clothing line, Ivanka Trump is sourced in Bangladesh. Mateo Gold, in charge of the research, stated that diﬀerent U.S. brands would like to bring manufacturing back to the United States, but feel that it is not really possible to do in a large-scale fashion. This could indicate that this country’s apparel industry has little to worry.

Transpaciﬁc Partner pull out When the new president refused to sign the Transpaciﬁc Partnership, he signalled a positive outcome for Bangladesh. This partnership between the US and East Asian countries could have crippled Bangladesh’s exports to America. By stepping out, Bangladesh has as much as an opportunity to trade with the U.S.A. as its neighbours.

Muslim ban The immigration policy of Trump has created major uncertainties. If in future the USA is subjected to any form of terror attack, the chances of the Muslim ban becoming even stricter are high. Bangladesh, not yet on the list could be included. Analyst Zahedul Amin noted that also a considerable number of Bangladeshi expatriates are working in the US without proper documentation. As a result of the strict regulations imposed on Muslims and other refugees, there is a high chance that the country will further observe many expats and other residents moving in.

Impact on Bangladesh’s Real-Estate Industry Surprisingly, Presidents Trump policy could give an instant boost to the countries mid to high-end property market. This has been demonstrated in other South Asian countries such as India and Sri Lanka, who saw a sharp increase in demand for high-end apartments. On lamudi.com.bd, there has not been seen any inﬂuence of the Trump Presidency up until this date. Housing Prices in the mid and high segment have remained stable, without an immediate rise after the elections, or in the period thereafter. Likewise, of the nearly 25% visitors of Lamudi.com.bd derived directly from the States, over the course of the past 6 months, no large increment has been analysed.

JULY 2017 REAL ESTATE:

THE TOP FIVE EMERGING MARKET TRENDS

2017 has been a challenging year so far for real estate. Most of the year has been rapt with uncertainty in the aftermath of two seismic events—Brexit and the US elections. Anyone thinking of buying property has become hesitant; prudence is the name of the game until there is more clarity about how these unexpected events will aﬀect global markets. Now that Theresa May has only managed a minority coalition English investors are once again caught in a seemingly endless loop of instability. Analysts at Lamudi have spent some time in the lab crunching the stats, and the following is the ﬁve trends they predict will shape the second half of 2017.

STEADY AS SHE GOES With torpid real GDP growth across most of the emerging markets, governments are reluctant to raise interest rates. So where does that leave the market? In many cases due to diﬃculties securing construction ﬁnancing and the cash required to purchase prize locations, there is now a situation where investors will look to avoid risk more so than usual. In brief, this will create a calm market, where real estate prices remain stable. Nevertheless, construction activity is expected to pick up the pace in the second half of 2017. Read: New technology to disrupt the market

EMERGING MARKETS ARE A PORTFOLIO ESSENTIAL A smart move in h2 is to hedge your investments in Europe and the US by including some higher risk real estate investment funds. In a world of unattractive global investment options; going against the grain might be the ticket to prosperity. Despite the fact the International Monetary Fund cut its global growth forecast to 3.4 percent for 2017, there is hope in the developing world.

ATTACK OF THE DRONES Unmanned aerial vehicles or drones will be the big tech advancement in 2017. Real estate agents will look to gain an edge over competitors by providing ﬂyovers of properties for exclusive properties and agents. Home buyers and sellers will be able to use drones to their advantage.

One caveat: certain flights will need the local tower’s permission along with a flight plan filed online. There is a real danger that drones could crash into commercial planes; considering the damage a bird can do this is something users need to bear in mind.

OPTIONALITY IS BACK As investors flee to relative safe havens; developers and investors are seeking solace in multi-use projects. Owners of versatile buildings can benefit from finding the maximum rent from the ideal tenant; whether that is through offices, retail outlets, or residential blocks. Flexible leases will become more common in a coworking type of arrangement. Lamudi—the global property platform whose global HQ is in the trendy Kreuzberg area of Berlin, Germany share their building with other Rocket Internet startups. This is an ideal way for owners to get the full rental income while companies can engage in knowledge sharing.

SMART HOME

TECH AND IOT

2017 may be the year for smart home technology to become more widespread. The problem is that there is a lot of competition, but no single company has managed to combine multiple appliances and apps into a seamless catch-all product. That could soon change with Google and Apple entering the market, giants of uniform user experiences. So brace yourself for smart houses that make life very, very easy for you.

State of the Business: PURBACHAL NEW Md. Mintu Hossain

A beautiful place, where sky is more clear and blue, no rushing life and jampacked like classic Dhaka, It is Purbachal New Town. A dream project of Bangladesh, the smart and modern city, Purbachal New Town to be ready by 2018. Purbachal New Town, a township sitting right outside of the Bangladesh capital of Dhaka, is meant to help solve the problem of limited housing in the area. But one of its more unique aspects is the government’s plan to make this planned city a completely pollution-free community, while maintaining all the kinds of urban amenities you would find in Dhaka.

New capital of Bangladesh More importantly, though, Purbachal will eventually become the new capital of Bangladesh. As development progresses, government oﬃces and embassies will make the move to the 6,000-acre city. The immense project is located between the Shitalakhya and the Balu rivers in Rupganj of Narayanganj and Kaliganj of Gazipur, and the project area is divided into 30 sectors. 21.7 percent is allocated for commercial, educational and sporting institutions, 25.9 percent for road, island and footpaths and the remaining 13.7 percent will be used for lakes, parks and forest.

headquarters of Fire Service and Civil Defence, would be relocated to Purbachal. Two police lines and four police stations will be set up at some strategic points in the town to maintain law and order.

The development working is now in full swing, with around 80% of the land development completed. More than 13,000 plots have been completed and have been handed over out of the total 25,016 allotees. Including roads and bridge construction, nearly 70% of the total project have been ﬁnalized.

The government has planned to build 142-storey Iconic Tower on 75 acres of land in Purbachal. The building will have an international convention centre and a modern sports complex, among other facilities. Once the project is completed, it would facilitate trade and commerce and create jobs. Right now the tender for this project is about to be ﬁnalized, with the U.S.-based ﬁrm Kali Pradip Chaudhury Group.

Next steps are setting up LPG bank in each of the 30 sectors to supply bottled LPG to households, development of lakes, canals, internal road, drains and installation of street lamps.

Moreover 38 percent space of the total project area would be used for housing purpose. Besides, 62,000 ﬂats will be built on 90 acres of land for low income families.

Bangladesh Navy has been tasked with the construction of 62 bridges in the project area. Of them, 30 have already been built and two are under construction. The project area is linked to the capital by a 300-feet expressway which is connected to the Airport Road via Pragati Sarani intersection.

Many developers want a piece of the cake, and are developing samesame sort of projects closeby. On lamudi.com.bd projects of Shubornobhumi, Eastwood Purbachal City Inspire and several others get a lot of attention, and there are many more to come. In the upcoming year, Lamudi expects at least 3 additional developers to come out with their project plans for areas around Purbachal New Town.

Many businesses and government oﬃces, like the

Excellent locations for real estate investors. With the 300-ft Purbachal Highway, the 180-ft Dhaka City By-Pass Road, the 150-ft Dhaka-Sylhet Highway, and connecting 300-ft highway between Purbachal Kanchon Bridge and Dhaka-Sylhet Highway (proposed), it is expected that travel time to the city will be reduced from various directions such as Zia International Airport, Kuril Flyover, Jatrabari Flyover, Chittagong Road (Kanchpur Bridge), Panchdona, Norshingdi and Vulta-Gaoshia. Designed by professional architects, engineers, town planners, and environmentalists to build an ultra-modern satellite city having all required infrastructure and civic facilities. Many wider roads (30-ft, 40-ft, 60-ft, 80-ft) inside the project to almosteliminate horrible traďŹ&#x192;c jam. Also, there will be less cost for piling because of high land and ďŹ&#x201A;ood-free zone. On top of that, tight private security forces inside the project to provide protections to the inhabitants.

On track Up until this date, the Purbachal area is being developed much faster than other areas in Dhaka. Needless to say that Dhaka will be transformed

in 10 years, and we are close to witnessing the second stage in this gigantic project.

10 WAYS TO ATTRACT

—AND MAINTAIN—

More Foreign Real Estate Clients Although foreigners are not allowed to own land in the Philippines, they are very much a key component of the local real estate market, and making a good impression on them can be beneﬁcial for real estate brokers Although the 1987 Constitution presently states only Filipino citizens are allowed to own land in the country, it has not prevented foreign buyers from taking interest in living and/or acquiring property here.

The concept of having foreign clients is actually not that foreign, and the following are some ways to be ready to always make a good impression and obtain or maintain their business.

1. Know Where Most of Them Come from Although more than 10,000 foreigners are registered with Board of Investment (BOI), Bangladesh Export Processing Zones Authority (BEPZA) and NGO Bureau Aﬀairs, some 200,000 foreigners are working in Bangladesh. BOI issued work orders for 9694 foreign nationals in 2016— 5243 persons in industrial and 4451 commercial purposes. The foreign nationals mainly come from India and Sri Lanka, followed by Pakistan, China, South Korea, Taiwan and the Philippines. In 2016, the foreign employees, took home nearly $6.5 billion in salaries and allowances, according to data from the Bangladesh Bank.

Knowing where there is a high concentration of foreigners will give you an idea of the market depth your area/s, as well as some insight on property and lifestyle preferences that they have.

These numbers are expected to increase after the newly signed deal with the Chinese government, and a slight recovery of Western expats in Bangladesh, after the decrease due to the Holy Artisan incident on July 1st, 2016. It is advised to stay up to date of which nationalities are entering the country, so you are able to tailor your service according to the needs of your potential clients, and are better prepared to deal with them.

3. Increase Your Knowledge of Their Countries of Origin Upon initial contact with or recognition of a potential foreign client, try learn more about their country of origin. Apart from common customs and possible cultural dissimilarities, research on their countries’ political and economic situations, particularly factors such as currency ﬂuctuations and a need for market stability, as these may also inﬂuence their decision.

2. Have an Understanding of Where They Will Be Staying in Bangladesh As legislation makes it very diﬃcult for foreigners to obtain a property in Bangladesh, often a “middle man” is used to enable the process. Other ways to buy property would be that the foreigner incorporates a company with the Registrar of Joint Stock Companies and Firms. The company would be considered as a local entity and would be able to buy land in its name. This is not easy, and therefore a lot of foreigners decide to rent during their stay, which can be a very lucrative business!

4. Become Familiar with Their Language

In line with knowing more about their culture, is knowing more about their language. While for the most part many Bangladeshi’s speak English suﬃciently, not all foreigners who arrived in the Bangladesh use it as a primary or even secondary language. You don’t have to be too adept, especially in the likelihood that foreign buyers will also have someone familiar with Bangladesh guiding them along. However, knowing words which correspond to phrases like hello, thank you, and goodbye would go a long way in helping them feel more comfortable working with you.

6. Prepare to Bridge Differences Also expect to help bridge diﬀerences when working with foreign clients by addressing even simple details. These include but are not limited to converting Bangladeshi Taka’s to other currencies, converting square meters to square feet or units of measurement, or spelling out local real estate terms and acronyms which they may not be familiar with.

5. Be a Reliable Expert While interest in property may mean familiarity with real estate, it may not be Bangladeshi real estate. In-depth expertise, especially that is outside of the information clients can ﬁnd online, is paramount in ensuring foreigner clients are guided accordingly, and that they actually trust you enough to do so. Apart from helping navigate the local market and purchasing process, be ready to share geographical, social, political, and economic data about Bangladesh and the areas that they are interested in. Basics about government and tax regulations that apply to them will be helpful and make you their reliable partner.

7. Have All the Right Connections to Recommend Reliable tax, mortgage, and legal experts to recommend to your foreign clients is also essential for maintaining trust. Some aspects of property acquisition are better left addressed by experts, and being able to point foreign clients to the right resources will not only beneﬁt them, but also strengthen your reliability addressing their real estate concerns.

8. Maintain an Easy Pace While a completing a real estate transaction is the end goal, recognize that some foreign clients may require more consultation and additional time to reach a decision. While their need for information and understanding of local real estate is a given circumstance, the process of their acquiring property may take a little longer, especially if they are not always in Bangladesh

9. Use Visual Aids to Overcome Language Barriers Detailed photos and videos can help overcome the language barrier between you and your foreign client. In the event that there are no linguistic challenges, producing an extensive amount of visual aids will still prove useful in helping clients feel well-informed about their choices, especially when they are inquiring from another location and cannot see the property in person.

10. Legitimize Your Foreign Buyer Expertise as Much as You Can Foreign clients tend to look for international expertise. The previously mentioned suggestions to help gain and maintain foreign clients came from â&#x20AC;&#x153;Expand Your Market,â&#x20AC;? a course developed by the international section of the National Association of Realtors (NAR) in Chicago, USA.

THE ADVANTAGES OF PURCHASING A PRE-SELLING PROPERTY

Sometimes referred to as oďŹ&#x20AC;-plan properties, here are some of the beneďŹ ts of buying real estate during its preselling stage. Whether you are an aspiring homebuyer who is actively searching for properties online or actively on the rounds attending open houses, you have probably encountered the word preselling at some point. What does preselling mean? What are the advantages of preselling?

WHAT DOES

PRESELLING INVOLVE? Off-the-plan or “preselling” properties are properties which are being sold by a real estate developer in advance, before their actual completion. While it may seem slightly unconventional to purchase a property that does not yet exist, presold properties can afford homebuyers many advantages. Such properties often come at a discounted price, and those who purchase them get the first pick of the best locations and/or units.

Preselling properties are normally cheaper In the absence of the physical unit, preselling properties are normally sold at a cut-rate price. They are often 30–50% less expensive than a finished unit. Aside from affordable introductory prices, many property developers offer flexible payment schemes and even a discounted down-payment price for their preselling projects. Developers also frequently offer in-house financing in the event that the homebuyer fails to qualify for a bank housing loan.

They give buyers the best unit options They give buyers the best unit options When buying preselling properties, buyers have the added advantage of being able to choose their ideal lot or unit location at an early phase, usually during the project launching stage. This makes it easier to choose a property which you know will have one of the highest resale values (e.g. based on the view, the aspect, the terrain, and the proximity to amenities). When buying a condominium unit during the project’s preselling stage, the buyer is given the opportunity to pick the best unit, such as those facing the best direction and located on the perfect ﬂoor, or even one of the most luxurious units that would normally reserve.

Once completed, this kind of property can provide a steady source of income Once the property is completely done and is ready for occupancy, the buyer can opt to rent it out, and through this, the buyer can earn a steady cash flow. If buying a condo property to have it rented out after completion, it makes sense to buy a preselling one, especially during the project’s earliest stage, as it affords buyers the first pick of units. The most attractive units will be the easiest to let.

They are an excellent investment option The value of real estate appreciates over time. At the time of completion, the value of a preselling condo or house will already have increased considerably. The buyer may even make a proﬁt by selling the ﬁnished condo/house immediately in the secondary market. If the owner chooses to sell later down the line, it is likely that they will get an impressive return on their investment since now is a lucrative time to be investing in real estate.

Some tips before buying As investors flee to relative safe havens; developers and investors are seeking solace in multi-use projects. Owners of versatile buildings can benefit from finding the maximum rent from the ideal tenant; whether that is through offices, retail outlets, or residential blocks. Flexible leases will become more common in a coworking type of arrangement. Lamudi—the global property platform whose global HQ is in the trendy Kreuzberg area of Berlin, Germany share their building with other Rocket Internet startups. This is an ideal way for owners to get the full rental income while companies can engage in knowledge sharing.

How Do Real Estate Appraisers Determine a Property’s Value? Pricing a property right is just as important as marketing it when selling, and having it appraised by a real estate professional ensures it is set at an amount that is fair and eﬀectively sells. Any owner can dictate the price as they want for their property for sale, but that does not guarantee that the desired price is what it sells for. If the property to be sold eﬀectively, sellers can set the price based on its fair market value (FMV). FMV is the price that a knowledgeable seller is willing to sell to a knowledgeable buyer is willing to buy a piece of real property without undue pressure on either party. To know the range to work with, sellers and buyers enlist the services of a real estate appraiser to determine the property’s value.

SO HOW DO REAL ESTATE APPRAISERS DETERMINE THE PROPERTY’S VALUE ? A:

Real estate professionals tend to take three approaches when appraising property:

Cost Summation The value of a property through cost summation is estimated by summing up the land value with the depreciated value of improvements, where the former is determined by the prevailing market value in the area/district from the zonal value established by the government. Cost summation is commonly done separately for the land and building/improvement before being combined. Cost summation is often utilized to estimate the cost of building a similar property, how much has the property depreciated and how much it would cost to make repair or improve what has depreciated. Ultimately, it helps determine if the cost of buying land and building a structure, minus the depreciation rate and cost of repairs is equal to the price what is being appraised.

Sales Comparison The sales comparison approach is done by taking into account the selling prices or FMVs of similar properties located in the same area that is being appraised. Price information is obtained from all possible sources, such as public records and local property listings, as well other real estate professionals and other owners and sellers. No two properties are the same, so adjustments are made to address differences the property being appraised has with others it is being compared to. These can range from differences in land and floor area, number of bedrooms or bathrooms, date of sale or valuation, and many others. The aim is to simulate the value of similar properties, while making changes to better suit the property for sale.

Income Capitalization Reserved mainly for commercial and investment properties, the income capitalization approach to property appraisal sees revenue multipliers or capitalization rates applied to the property in question’s net operating income (NOI). To determine NOI, appraisers take the property’s gross potential income (GPI) and subtract vacancy and collection losses. This results in the eﬀective gross income and minus operating expenses is the NOI. It is important to note that operating expenses does not include debt service, income taxes, or depreciation charges. Apart from the manner in which the value of a property is determined, real estate appraisers and other industry professionals also consider the type of property being appraised. While houses and lots, townhouses, and other types of residences are what are often appraised, other properties commercial spaces, farms, warehouses, hotels, hospitals and schools, and the like. Appraisers refer to the Local Government and Finance who maintain a system for real property identiﬁcation and guiding principles for the assessment of, and even the imposition of tax on a property. Indeed, real estate appraisal is a cumbersome process, and it is always recommended to rely on a professional when pricing and selling real estate. Apart from helping you accurately determine the true value of your property, the services of a real estate appraiser will be helpful when evaluating property to invest on or determining value for tax purposes.

PLANTS THAT BRING LUCK TO YOUR HOME

Amazed by the beneﬁts bestowed upon one’s physical and mental well-being through the association of plants and greenery, designers across the world have been increasingly incorporating plants into their designs. For those keeping up with the rapidly transforming interior design sector, it is apparent to see how homes are using plants in their spaces, in various ways. Thanks to a plant’s ability to uplift the look of a room within seconds, they are undoubtedly one of the most inexpensive and charming décor pieces, possible to ﬁnd naturally in one’s surroundings. Plants or Greenery in general are known to add a fresh ambience to a space and can help relax a person’s mind. In addition, there are certain plants that are recognized to bring luck to homeowners.

Plants That Bring Luck to Your Space

PALMS For many, a palm’s appearance makes it the perfect plant for any home. Palms can give a tropical and fresh look to a space and due to their height, can also be used as a practical room divider as well.

The Rubber Plant

The Peace Lily Also known as the ‘closet plant’, the peace lily is one of the easiest indoor plants to care for. They are also commonly used to decorate offices due to their serene and relaxing appearance.

The Jade Plant The Pachira plant, also known as the ‘money plant’, is essentially famous amongst the Chinese. Traditionally, the shape of the Pachira leaves are seen to indicate the ﬁve feng shui elements of wood, water, ﬁre, metal, and earth, and the capability to balance between these elements is considered to attract money. Therefore the plant is known to be a perfect living element to have in a home.

The Rubber plant is considered lucky by many, due to its round leaves, which symbolize good fortune, abundance and wealth.

Orchids

Pachira Plant (The Money Plant)

Orchids are exotic and refreshing, hence the perfect decorative piece for your home.

The Pachira plant, also known as the ‘money plant’, is essentially famous amongst the Chinese. Traditionally, the shape of the Pachira leaves are seen to indicate the ﬁve feng shui elements of wood, water, ﬁre, metal, and earth, and the capability to balance between these elements is considered to attract money. Therefore the plant is known to be a perfect living element to have in a home.

The feminine nature of the plant can instantly relax your mind and help you focus better. It also comes in many colors, from blue to white, to deep and rich purples, making it an attractive and adaptable feature for all parts of the house, without feeling overwhelmed.

THE IMPORTANCE OF A HOME INSPECTION You have just moved into your dream home, you hug your wife and take a cold drink from the fridge.

Itâ&#x20AC;&#x2122;s a wonderful moment to experience after months of home-hunting and signing documents that you thought would never end. All of a sudden, you hear something squeaking in the attic. You soon come to the nightmare realisation that your dream new home has a pest problem. Performing a house inspection before you settle on a house is important.

It could be a roof that is badly in need of repair or an electrical fault that could cost thousands to repair. Hiring a professional is the only way to get a house inspection done properly. An independent contractor will be less emotionally attached and will cast an expert eye on the property before you make the purchase.

Benefits of home inspections Warning signs An inspection can warn about potential threats and safety concerns. He can offer solutions and the potential price of fixing any problems in the future. Trouble can be lurking under drywalls, problems can pose enough of an issue for a buyer to turn his back on a deal.

Inspection can pay for itself Buyers can save themselves signiﬁcant costs by demanding that the seller covers repairs. If the damage poses a safety hazard due to water leakage or poor structural design, the imperative is on the seller to cover the costs of repair.

Good for negotiation

If something transpires during a house inspection it could give the buyer leverage to get a better price on the house.

Gives a sense of comfort about the investment

Buyers are moved from having a certain level information to being more conﬁdent about the place. An expert’s eye is a good way to reduce the potential for buyer’s remorse. Buying a home is for most people the biggest purchase of their life. For a small fee, you can limit your risks by getting the help of an independent third party professional.

FIVE HOUSES like You’ve Never Seen

1. Dancing House, Czech Republic The striking, curvy so called Fred and Ginger Building in the Czech Republic is a landmark with distinction. Constructed in 1996 by its inspired architects Vladoo Milunic and Frank Owen Gehry, the building resembles two dancers, Fred Astaire and Ginger Rogers. The top ďŹ&#x201A;oor is the only part open to the public and is the location for the Ginger & Fred Restaurant.

2. Hang Nga Guesthouse, Vietnam Aka crazy house is more artwork than a guesthouse, provoking thought in the heart of Vietnam. Impressionist architect Dang Viet Nga was the driving creative force behind the project that brings thousands of people to Dalat each year. The house famed for its non-rectilinear shapes has been on many top ten lists in some cases in the worldâ&#x20AC;&#x2122;s creative architecture awards.

When Ms. Nga started working on the project from scratch she was on the brink of bankruptcy, so she started selling tickets to tourists to visit her house. 18 years later, she owned the house and it is recognized as a piece of art. The crazy house looks like a tree with tunnel-shaped stairways. Walking through the interior is an exhilarating experience.

3. Upside Down House, Canada Aka the whoopsy house, if you think your life is topsy turvy this house might put you over the edge. This dizzy tourist destination is ﬂipped and crooked leaving you disoriented wondering whether you are coming or going, leaving or staying. The gravity-defying

house was constructed by Marek Cyran and Daniel Czapiewski both from Poland where they had previous experience building similarly confused houses. The house looks like it was picked up and placed on its roof. If you are in town visiting the wonderful Niagara falls it would be remiss to miss this place.

4. Boulder House, Portugal In the mountaintop village of Monsanto in the east of Portugal locals have built their homes in massive boulders rather than attempting to shift them. Some of the granite stone dates back to the 16th century. Locals ﬁgured it might be easier to incorporate the 200-tonne rocks as opposed to moving them out of the way. In 1938 Monsanto was named the most Portuguese village in Portugal, sitting 2,486 feet above sea level with stunning sea views.

5. Eagle House, Uruguay Atlantida is an architect’s dream destination: from buildings shaped like ships to treehouses and the Eagle’s Nest. Hidden behind a small pine tree forest on a desert beach, the Nido del Aguila (Eagle’s Nest) is something to behold. The home was once a shelter of Natalio Michelizzi a pioneer in the bathing resort who made it all by hand. The massive eyes are the windows of the sitting-room where the sea can be viewed in peaceful tranquility.