Property Life Issue 1 by Panashco Media Pte Ltd

propertylife.asia

ASIA’S NUMBER 1 PROPERTY GUIDE • JUNE–JULY 2012

your

DREAM HOME

THAILAND • INDONESIA • UNITED KINGDOM MALAYSIA • AUSTRALIA • USA • FRANCE

+ IP GLOBAL’S

TIM MURPHY

WHY ASIA IS THE PLACE TO INVEST OVER THE NEXT DECADE ISSN 2251-3949

9 772251 394009

S$4.95 RM12 US$4 £4 €3 HKD35 THB120

FENG SHUI

WHY THIS ANCIENT ART AFFECTS PROPERTY PRICES

WHAT PROPERTY DOWNTURN?

BEST PERFORMING MARKETS

DESIGN VIRTUOSO

KENNETH COBONPUE’S FURNITURE CONQUERS THE WORLD

T HE HE IGH T OF LUXU RY @G URN E Y

S P Setia Bhd Setia Pearl Island Country Club No. 8 Persiaran Kelicap 11900 Bayan Lepas, Penang, Malaysia F +604 641 2255

Call +604 641 2255

spi-sales@spsetia.com.my | www.setiavresidences.com.my

MALAYSIA | VIETNAM | AUSTRALIA | SINGAPORE | CHINA

SETIA V RESIDENCES is another prestigious project by Malaysian property developer S P SETIA, an international awardwinning public listed company and market leader, with a sterling reputation for integrity, quality and innovation. Its portfolio encompasses townships, eco sanctuaries, luxury enclaves, high-rise residences and commercial developments. Its growing international presence includes interests in Vietnam, Australia and Singapore. Strategically located along Penangâ&#x20AC;&#x2122;s famed Gurney Drive, SETIA V RESIDENCES is the most highly sought-after location by the affluent. This meticulously crafted, FREEHOLD luxury property has everything tailored for a perfect lifestyle; impeccable amenities, top-notch security system, and a well-planned architecture that maximises panoramic views of the sea and the city. A true icon set to grace Penangâ&#x20AC;&#x2122;s skyline. Make SETIA V RESIDENCES your seafront sanctuary in the sky.

THE TEAM Managing Director/Publisher ALEXANDER KNIGHT alex@panashcomedia.com Executive Publisher MARTIN HENWOOD martin@panashcomedia.com Editor-in-Chief RODEL AMBAS, JR. editorial@panashcomedia.com Editor FRANZ A. D. MORALES editorial@panashcomedia.com Design and Production JOHN PATRICK GLARAGA production@panashcomedia.com

PUBLISHER’S NOTE

Sales Manager KEVIN GOLDSMITH advertising@panashcomedia.com

Welcome to the launch issue of Property Life! The idea for this property magazine has been in the works for sometime and we are delighted to present it to you in all its glory. We are beginning with 6 issues of Property Life a year and will add 3 specials – on Thailand, the UK and Indonesia. This really is property publishing for the new media landscape. Simultaneously, we are rolling out print, mobile, web and tablet issues of our flagship product. Panashco Media will follow this by launching our authoritative individual country guides – starting with Thailand – that will lead buyers to their dream homes and investments. We are positive that our in-depth reporting and great insights will be relied upon by tens of thousands of property seekers all over the world for our no-nonsense, quality consumer advice. The team is working very hard to bring the right balance of features and in-depth commentary from industry experts to our readers. Panashco Media is very fortunate in that we have some great advisers and support. I would very much like to thank Tim Charlton for the treasure trove of commercial advice – and on where and how to set up offices, Rebecca Bisset for giving me the inspiration to create something new, Singapore’s Media Development Authority for supporting us through their Production Assistance Scheme, the Panashco Media team and finally Leigh-on-Sea in the UK. Property Life is not an island and to that end, we encourage comments and contributions by email at editorial@panashcomedia.com, or visit us at facebook.com/propertylifemagazine or Twitter @property_life and hashtag #PropertyLife Happy reading!

Sales Executives JENNIFER CREGENCIA, PRASHANTH GUNASEKARAN, GLADIZ PERALTA advertising@panashcomedia.com Marketing and Strategy JANICE TOK janice@panashcomedia.com Editorial Adjutant RYAN CARRASCO social@panashcomedia.com Senior Programmer TIMOTHY ESCOPETE tim@panashcomedia.com CRM and Data ALEX ARULKUMARAN alex.arul@panashcomedia.com HR/Office Manager ANGELINE RIVAS recruit@panashcomedia.com Circulation and Distribution VAL CHRISTIAN SANTOS circulation@panashcomedia.com Managing Director, China 中国区常务董事 CHERRY CHEUNG 张静波 cherry@panashcomedia.com DOWNLOAD OUR iPad App from the App Store Android App from Android Marketplace Kindle App from amazon.com/marketplace We really want your feedback! Please contact us: by telephone: +65 3158 3449 for advertising: advertising@panashcomedia.com to submit contributions: editorial@panashcomedia.com For regular updates and more commentary you can Like! us at facebook.com/propertylifemagazine and follow us on Twitter @property_life and hashtag #PropertyLife PROPERTY LIFE IS PUBLISHED BY

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Alexander Knight Panashco Media Pte Ltd is registered in Singapore 201127591R. Copyright © Panashco Media Pte Ltd 2012. All rights reserved. Any content of Property Life may only be reproduced, in any shape or format, with the express permission of Panashco Media Pte Ltd. For reprints please consult the advertising department. Printed at Times Printers, Singapore.

MICA: 165/04/2012 • ISSN 2251-3949 PROPERTYLIFE.ASIA

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France 27

contents J U N E – J U LY

58 USA

35 United Kingdom

Thailand 10

50 Indonesia

Malaysia

2012

Australia 18

COUNTRY GUIDES 10 THAILAND

After surviving the 1997 Asian Financial Crisis, Thailand’s property market is as strong as ever

18 AUSTRALIA

Simultaneously the world’s largest island and smallest continent, the Land Down Under boasts of a vibrant property market

27 FRANCE

Being the world’s most visited nation, French properties are a magnet for foreign investors

35 UNITED KINGDOM

Rich and colourful history aside, the UK has long been considered a safe haven for property investment

42 MALAYSIA

One of South-East Asia’s economic success stories, it’s no wonder that Malaysia’s real estate market is one of the region’s most vibrant

50 INDONESIA

There is more to the world’s largest archipelago than islands and beaches – its high-end properties are a major attraction as well

10 58 USA

Amazing deals and opportunities await property buyers in the world’s largest economy

ON THE COVER LUXURY IN AN UNUSUAL PLACE Indonesia’s Batam Island does not ring a bell to luxury property buyers, but that is changing, with the opening of KOP Group’s Montigo Resorts Nongsa. The development offers resort-style homes for a tenth of the price of similar properties in Singapore – a steal considering the property’s plethora of verdant amenities.

Students yield best return for overseas property investors in Scotland With banks like Nationwide predicting a 2% growth in the property market during 2012, there is no time like the present for investors to snap-up good quality homes in Scotland. And who better to have as tenants than the country’s growing student population? Why students you might ask? Research by mortgage specialist Paragon showed that by having students rent a property, landlords can expect much higher yields compared to young singles and retired people. Rents are on the increase and at this very minute Grant Property has 100% occupancy in prime areas within its Scottish property portfolio, reflecting the buoyancy in the rental market. Yields are between 7% and 9%, considerably higher than the national average of 5%. Scotland’s demand for student rental accommodation is also expected to increase year-on-year with UK and overseas students continuing to choose Scotland as their preferred location for further education and university. What’s more, while it has been challenging for first-time buyers to secure a mortgage in the last few years, buy-to-let mortgages have risen sharply in 2011 allowing investors take advantage of very favourable buying conditions. Gone are the days when you would hear people saying ‘it’s a sellers’ market’. On a continental scale Scotland has coped well since the euro crisis unraveled. As the finance world waited with baited breath to realise the impact those in the world of property rested assured that their slice of the market would emerge relatively unscathed. In fact, looking at figures from the last six months, prices have risen, which is what has happened throughout every financial crisis we have witnessed. Since prices fell in 2008 the property market has regained its composure. In saying this there is still a huge opportunity to buy prime property, under value and at higher yields then ever before. Fortunately for investors, property assets are polar opposites of shares and bonds, because unlike property, shares and bonds are liquid and far more exposed to market volatility. As an investment, over any given period, residential property has outperformed shares and commercial property. Over the last 40 years, the average growth figure is 7% per annum which is a leverage of 28% return per annum, showing that property remains a smart investment. Scotland’s university cities have experienced increased buying activity in the first quarter of 2012, which suggests more demand for investment properties and increased confidence in the property market. The timing therefore could not be better for UK and overseas investors to grow their assets in Scotland’s favourite cities. However like all major investments, we recommend a few golden rules to follow: • •

• • •

LOCATION – choose a prime city centre location. TRADITIONAL – opt for traditional properties over new build. Historically they have performed better both in terms of yield and appreciation. RENT ABILITY – look for a strong rent with high occupancy levels. PRICE – shop around but don’t compromise on any of the above points. EXPERIENCE – seek advice from experienced property experts like Grant Property.

Grant Property source properties for investors based on all of the above criteria. They then renovate and furnish to a high standard ensuring all the safety regulations are met, source relevant tenants and look after the ongoing property management. Over the last 15 years, they have helped clients invest in residential property over 1,700 times therefore you can be confident you are in safe hands. They also have an unrivalled track record in providing property management solutions to landlords based both within the UK and overseas.

To find out more about Scottish property investment contact Neil Reid at Grant Property: Tel.: +44 (0)131 247 3131 Email: invest@grantproperty.com Web: www.grantpropertyinvestment.com

contents J U N E – J U LY

2012

FEATURES 08 WHAT PROPERTY DOWNTURN?

A look at the world’s hottest property markets

66 COUNTRYSIDE CHARM

Four developments that offer more than just living spaces

74 THE ASIA FACTOR

IP Global founder and CEO Tim Murphy discusses why Asia is the place to invest right now

75 DESIGN VIRTUOSO

Renowned furniture designer Kenneth Cobonpue talks about what inspires him, his passions and how to deal with copycats

42 27

78 WIND, WATER, EARTH AND REAL ESTATE

After death and taxes, bad luck is perhaps the third greatest equaliser. But feng shui is here to save the day

82 HOME IMPROVEMENT 101

Even that dream home needs some DIY loving

84 PROPERTY INVESTMENT

James Harrison discusses the right properties for the right people

What property downturn?

rowing by a mere 0.5%, the global property market had a forgettable 2011, according to Knight Frank’s Global House Price Index. But what the index makes clear is that the performance of global housing markets is anything but uniform. Some markets, over a five-year period from the fourth quarter of 2006 to the same period in 2011, have registered staggering gains. Here’s a list of markets that registered the highest average 5-year growth in housing prices.

28.7%

27.5%

8. NORWAY (TIE)

10. SWITZERLAND Home to some of the world’s most expensive cities, Swiss properties have seen price booms in the past five years.

WHY: Ultra-low interest rates meant to manage the surging franc have sparked the surge. HOW MUCH: The average price of a prime property in Geneva, for example, was $31,900 per square metre (psm) in Q4 2011.

28.5% 9. MALAYSIA

To curb the country’s spiralling house prices, the government plans to double the minimum property price foreigners can buy, from $162,972 to $325,944. WHY: Malaysia’s economy grew by over 5% in 2011, and so did the country’s prime real estate. In Q3 2011, home prices rose 6.6% year on year. HOW MUCH: Prime property in Kuala Lumpur costs about $5,000 psm in 2011.

Source: www.cnbc.com

PROPERTYLIFE.ASIA

Norway is the only other European country to make the list. WHY: Low interest rates have led Norwegians to take on debt to buy property, which caused prices to jump 6.8% year on year in March. But the IMF warned that Norwegian home prices were up to 20% overvalued. HOW MUCH: House prices in Stavanger, the centre of the country’s oil industry, rose 92% between 2005 and 2011.

30.1% 6. TAIWAN

28.7% 7. CANADA (TIE)

Compared to its southern neighbour, Canada’s housing market has stayed robust over the past few years. WHY: The country is a big draw for foreign buyers, which according to real estate experts pushes the market up. HOW MUCH: Its most expensive property market, Vancouver, is extremely popular to Chinese buyers. The average price for a residential property here was $734,207 in December 2011, compared with the national average of $358,261.

Taiwan’s is one of the world’s most densely populated countries. WHY: The island’s small land area and rapid urbanization have led to crowded housing conditions – and a red-hot housing market. HOW MUCH: Prices rose more than 30% on average between 2006 and 2011, although a dip of 4.1% was seen in 2011 – a result of tightening measures like the ‘luxury tax’ that the government implemented last year.

8 Norway 7 Canada 1

China

Colombia

Taiwan

10 Switzerland

3 Israel

Hong Kong

Malaysia 9 4

93.7% 54.5% 50.5% 4. SINGAPORE

39.4%

5. COLOMBIA

The only South American country to make this list. WHY: Colombia’s economic growth (6% in 2011) has led to an increase in house-buying activity, especially among its growing middle class. HOW MUCH: Property prices went up 3.2% year on year in 2011, while new home sales were up 19% in the first half of last year compared to the period a year earlier.

Singapore is SouthEast Asia’s financial hub. WHY: The citystate’s large foreign population helps drive up housing prices, big time. HOW MUCH: Average prime property price here was $25,600 psm in Q4 2011. Public discontent over soaring property prices has led the government to implement measures to cool the market, such as the additional stamp duty equal to 10% of the property value for foreign buyers. As a result, property prices fell 0.1% in January to March this year.

3. ISRAEL

Despite the global downdown, property prices in Israel have risen rapidly in recent years. WHY: The country holds on to its spot as the third-hottest housing market in the world since 2009, thanks to low interest rates. HOW MUCH: House prices since 2009 jumped more than 21%, followed by 16% growth in 2010. A series of protests in 2011 helped lower property prices by 1.2% in 2011, but demand for property again increased when interest rate was cut from 3.25% to 2.5% in February.

2. HONG KONG

Hong Kong’s reputation as one of the world’s least affordable property markets is no understatement. WHY: The growing wealth of mainland Chinese coupled with China’s property restrictions have led to an influx of mainland buyers into Hong Kong’s residential market in recent years. HOW MUCH: In Q4 2011, the average price of a home in prime areas was about $47,500 psm – the fourth-highest in the world. Local discontent over skyhigh prices forced the monetary authority to put in place cooling measures, such an extra 10% in down payment for buyers whose principal incomes are not in Hong Kong.

PROPERTYLIFE.ASIA

Singapore

110.9% 1. CHINA

Despite China’s hard stance to slow its economy, its residential real estate market remains the world’s hottest. Experts say that average home prices are expected to fall between 10% and 20% in 2012 as a result of Beijing’s tightening measures. WHY: During the peak of the global recession, China ordered its banks to lend more to boost the economy. This drove demand and pushed up prices. HOW MUCH: House prices in Beijing and Shanghai have surged by over 110% in the past five years. Shanghai’s prime areas cost $19,400 psm in Q4 2011. In Beijing, the same home costs an aver age $17,400 psm.

THAILAND The thing about

THE THING ABOUT THAILAND? IT'S EXQUISITE BEAUTY. FROM ITS PEOPLE TO THE LAND ITSELF, THE COUNTRY'S CHARMS HAVE NO EQUAL.

HE KINGDOM of Thailand, as the country is officially known, was originally known as Siam. It is located at the centre of the Indochina peninsula in South-East Asia. Thailand is bordered in the north by Laos and Burma, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the west by Myanmar and the Andaman Sea. A constitutional monarchy headed by King Rama IX, the ninth king of the House of Chakri, the country is one of the few never to have been colonised by a Western power. It is the 51st largest country in world in terms of total area and is the 21st most populous

country with about 64 million people. The largest city is its capital, Bangkok, which is also its political, commercial, cultural and industrial centre. Its population is made up of 75% Thai, 14% Chinese, and 3% Malay with the rest being the minority which include the Khmers, Mons and other hill tribes. The country’s official language is Thai, and is predominantly Buddhist. The currency used is the Thai baht. Highly industrialised, Thailand’s economy is further boosted largely in part by its tourism, with many world-famous wayfarer spots such as Ayutthaya, Pattaya, Bangkok, Krabi, Chiang Mai, Phuket, Ko Samui and Hua Hin.

PROPERTYLIFE.ASIA

Thailand is part of the Association of South East Asian Nations (ASEAN), whose members also include Indonesia, the Philippines, Malaysia, Singapore, Brunei, Laos, Cambodia, Burma and Vietnam. The country also enjoys a high level of literacy due to its wellorganized school system. Education is compulsory up to the age of 14 and the government offers free education through age 17. Thailand is considered a newly industrialised country and is an emerging economy. Thai exports earn $105 billion annually from textiles, footwear and rice – the latter its most important crop. As the number one exporter of rice, it has about 152,000 square

THAILAND J U NE –JULY 2 0 12

is fast becoming one its most popular sports, with its rising supremacy in ASEAN football tournaments. Rugby is also growing in popularity, with the Thailand national rugby union team ranked 61st in the world. The country is also touted as the Golf Capital of Asia with its many world-class golf courses attracting golfers from Japan, South

Photos courtesy of Tourism Authority of Thailand

kilometres of arable land, with 55% of that being used for rice production. The country’s culture has been shaped by the many influences imparted on it by its neighbouring countries such as India, Laos, Burma, Cambodia and China. Many of its traditions are based on those from India, China, Cambodia and the rest

The largest city is its capital, Bangkok, which is also the country’s political, commercial, cultural and industrial centre. THAI-SCAPES Ruins of the Kingdom of Ayutthaya (above left), which ruled most of peninsular South-East Asia from 1350 to 1767. Ratchaburi’s Dam Noen Sa Duak floating market is popular among foreign tourists.

of Asia. Perhaps the most famous of Thai traditions and cultures is Muay Thai, or Thai kick boxing. It is often called the most dangerous sport in the world, and was historically used to train its royal army. Ironically, many of the soldiers who practised this bloody sport end up as peace-loving Buddhist monks. Football is also gaining a steady following in the country and

Korea, Singapore, South Africa and many Western countries. The country has also played host to several Asian Beach Games. Phuket is known for its many beaches and is a great place to look for seaside homes. The Hollywood film The Beach starring Leonardo DiCaprio was filmed in Thailand, which further boosted the country’s reputation for beautiful beaches. Many property investors looking to buy property in Thailand often choose coastal regions as sites for their second homes. Though Bangkok is ideal for those who love city life, it is the Thai beaches that are high up in investor’s lists.

PROPERTYLIFE.ASIA

THAILAND J UNE–JU LY 2 012

HOW TO BUY

WHEN BUYING property in Thailand, the first thing to do is secure expert local assistance. A local agent that knows the language and is familiar with the local geographical area is recommended. Hiring one to assist you will save you time, especially when selecting and choosing the right property that fits you. Besides, hiring an agent versus purchasing from a developer directly doesn’t really make a difference cost-wise. Buying land in Thailand, by broad definition, means purchasing condominiums, houses, villas and of course, land. However, first-time buyers often get confused because Thailand developers rarely use Western measurements for land, using the local Wah and Rai instead. There are different ways to own land in Thailand, and the first is through a leasehold villa investment – this is when foreigners get full interest on a lease for a specified amount of time. It is simple and straightforward and is the favoured alternative by many would-be foreign

PROPERTY BASICS Thailand’s property market has recovered since the 1997 Asian Financial Crisis, and is now one of South-East Asia’s most vibrant.

RENTAL YIELDS

5.66–10.15% PRICE INDEX

12.16% (for single detached houses in the year to end of Q2 2011) PRICE

$3,300 (per square metre) RENT PER MONTH

$2,413 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

investors. The second way is to purchase through a Thai Limited Liability Company. This is where you have several shareholders whose interests may or may not differ from yours. A more romantic approach is to marry a Thai, then you can purchase land as a couple. Fees. Besides the property price, there are other fees to consider (including that of the agent). Extra costs to wit include: 1 Hiring a local lawyer that specialises in property law. The fees here can be negotiated. 2 Hiring the aforementioned property agent. Fees are usually paid based on results. 3 Reservation fee (usually for new builds). Once you agree to purchase, developers will require a 10% deposit. Of course this will be deducted from the final amount payable. 4 Stamp fee. Usually this fee is at 0.5%, though it is being waived in the meantime as local authorities are trying to breathe new life into the market.

100

4,305

400

0.25

0.10

0.04

400

17,222

1,600

0.40

0.16

800

34,444

3,200

0.80

0.32

1200

51,667

4,800

1.20

0.48

1,600

68,888

6,400

1.60

0.64

2,000

86,111

8,000

2.00

0.80

2,400

103,333

9,600

2.40

0.96

2,800

120,555

11,200

2.80

0.12

3,200

137,777

12,800

3.20

1.28

3,600

155,000

14,400

3.60

1.44

4,000

172,222

16,000

4.00

1.60

32,000

3.20

48,000

120

4.80

64,000

160

6.40

80,000

200

8.00

96,000

240

9.60

112,000

280

11.20

128,000

320

12.80

144,000

360

14.40

160,000

400

100

16.00

wah2

ft2

ngan

rai

acres

has

A quick reference guide for conversion: 1 sq. Wah = 43 sq. ft. = 4 sq. m., 1 Ngan = 100 sq. Wah = 0.25 Rai, 1 Rai = 4 Ngan = 400 sq. Wah, 1 acre = 2.471 Rai = 43,560 sq. ft., 1 ha = 6.25 Rai = 10,000 sq. m.

PROPERTYLIFE.ASIA

HIGH THAI Phu Chi Fa Park in Chiang Rai Province offers a stunning view of northern Thailand’s surrounding mountains.

Photos courtesy of Tourism Authority of Thailand

First-time property investors in Thailand often find themselves confused when it comes to land areas in the country. Unlike other countries, which usually use metric or English systems, Thais tend to favor the local system of measurement. Below is a reference chart you can use to convert Wah, Rai and Ngan.

THAILAND J U NE –JULY 2 0 12

RIVER OF KINGS A view of the Chao Phraya River in Bangkok.

HOW TO GET THERE

THAILAND

Photos courtesy of Tourism Authority of Thailand

Bangkok

First time buyers often get confused because Thailand developers rarely use Western measurements for land.

1 Transfer fee. Again, this is being waived in the short term, but historically the fee is at 2%. 2 Structural usage fee. Based on the assessed rental value, this fee equates to 12.5% of forecast rental value per year. 3 Capital gains tax. This fee is very low though, and is usually 1–3% depending on your income bracket. As with all property markets across the world, these are all subject to change, which makes hiring a property agent all the more important. Always ask your agent what the best course of action is.

WHERE TO BUY

KNOWN FOR ITS beautiful beaches, Thailand is a haven for people looking for coastal property to use as a vacation or second home. However, investors can also choose from a variety of real estate, from city flats to country homes. Below we feature several homes that might pique your interest. In one of the more popular provinces in Thailand – in Rawai, Phuket – we have a gorgeous single-level villa that’s perfect for bachelors or small families. $330,000 will net you a freehold property with a land area of 406 square

Getting into Thailand is easy. Being the most popular tourist destination in South East Asia, you can expect to get in without much fuss. The same can be said for getting around the country. Nevertheless, here is a quick rundown on what to expect when visiting the country. GETTING THERE Thailand’s main international airports are located in Bangkok and Phuket. Both are well-suited to serve intercontinental flights. Most airlines in Asia also fly to Bangkok, which equate to low prices because of the stiff competition. Other international airports are also located at Hat Yai, Krabi, Koh Samui and Chiang Mai; however, these are usually restricted for flights within South-East Asia. You can also catch flights to these smaller cities via Kuala Lumpur and Singapore if you wish to avoid the long lines in Bangkok. The national carrier is Thai Airways International, and is well regarded the world over, with Bangkok Airlines servicing nearby regions. Other airlines that fly to Thailand are Cathay Pacific, Air Asia, Singapore Airlines, Malaysia Airlines, China Southern, Asiana Airlines, China Airlines, Vietnam Airlines, Royal Brunei, China Eastern, Air China, Japan Airlines, Air India, Shanghai Airlines, Hong Kong Airlines, Cebu Pacific, Philippine Airlines, Air Macau, Firefly Flights, Biman Bangladesh Airlines, Sichuan Airlines and Jin Air, among others. GETTING AROUND The best way to get around Thailand is by plane. With domestic flights being relatively cheap, it is better than sitting on a bus for 11 hours. You can pretty much fly to anywhere in Thailand for as little as $65. The airlines available for travel within Thailand are: Thai Airways, Bangkok Airlines, Nok Air, Orient Thai, Thai Airlines and SGA Airlines.

PROPERTYLIFE.ASIA

Photos courtesy of Tourism Authority of Thailand

Thailand is a haven for people looking for coastal property to use as a vacation or second home. metres. Living space is at a comfortable 213 square metres with two bedrooms and two bathrooms. Designed with luxury and style in mind, all villas in this residential area come with either two or three bedrooms with ensuite bathrooms. The house itself is air conditioned and is fully fitted with modern western-style kitchens. Easily accessible is a private swimming pool with an infinity edge to add to its elegance. By the pool is an extensive ter-

race and an open pavillion where you can relax. The residential area has six villas in total, making it very private and secure. You can choose to purchase a ready-made villa or buy off the plan if you opt to make changes to further suit your taste. Still in Phuket, in the Nai Harn area, we have another single-level villa with three bedrooms and three bathrooms. The total land area of the property is 750 square metres, with

PROPERTYLIFE.ASIA

living space at 280 square metres. A quiet and secluded villa, the property combines luxury and privacy. The villa is just a few minutes away from the spectacular Nai Harn beach â&#x20AC;&#x201C; which is one of Phuketâ&#x20AC;&#x2122;s unspoiled beaches and National Park. A swimming pool and whirlpool bath are positioned perfectly to give a panoramic view of the sunset. The villa also features a walk-in massage area, an open-air shower, a guest room, a large dining area with breakfast bar, and a fully fitted European-style kitchen with granite worktops. This freehold property can be yours for just $319,000. Ideal for mid-sized families looking for the perfect vacation home. Out in Koh Samui, for $317,000, is a three-bedroom seaview villa with

THAILAND J U NE â&#x20AC;&#x201C;JULY 2 0 12

two bathrooms located in Taling Nam. The land area for this property is approximately 771.20 square metres with 170 square metres of living space. The villa features a large garage/workshop, a car port large enough for two cars, and a lower terrace. It stands in its own walled garden and is situated just 65 metres away from the sea. Inside the SIN CITY A popular hangout of American servicemen during the Vietnam War, Pattaya today is reinventing itself as a wholesome family destination.

ISLAND LIFE Mandalay Beach Villas in Koh Samui offer stylish beachfront villas that can be rented out under the projectâ&#x20AC;&#x2122;s Rental Management Programme.

Again in Koh Samui, in Lamai, we have a three-bedroom high-quality timber house that is located on a quiet road just off the main road near the Lamai Post Office. Situated just a short distance from the Lamai centre and the beach, this tropical house is heavily shaded by a thick foliage of tropical trees and shrubs. The house

Thailand is a haven for people looking for coastal property to use as a vacation or second home house, you have a large living room with tiled flooring, a fitted kitchen, a breakfast bar, central hall, and airconditioning. The property also has a 10-metre infinity pool with a separate pump house, as well as filtered hot and cold water to all inside taps. The perfect beach and pool villa for midsized families.

is built almost entirely of teak and is well-maintained. There are two floors, with a large entrance that leads to an open area with tiled floors and polished timber railings and steps that lead to the living area with a ceiling fan. Rooms have en-suite bathrooms with showers and wash basins, and is fitted with air-conditioning. The kitchen

Photos courtesy of Mandalay Beach Villas

PROPERTYLIFE.ASIA

THAILAND J UNE–JU LY 2 012

has built-in cupboards and work tops, as well as a double bowl stainless steel sink. Up in the first floor, there is an open balcony perfect for dining al fresco. The property has a total land area of approximately 200 square metres with the living space having a floor area of 209 square metres. Priced at $324,000, this elegant wooden house will suit mid-sized to large families. TARUTAO NATIONAL MARINE PARK A tropical santuary consisting of 51 islands in the Andaman Sea. The park also served as setting for the hit US reality show Survivor. PHU HIN RONG KLA NATIONAL PARK A protected area located on the slopes of the Luang Prabang Range close to Thailand’s border with Laos.

Photos courtesy of Tourism Authority of Thailand

IMMIGRATION/ VISA REQUIREMENTS Nationals from various countries have different entry requirements: Nationals from most Association of South East Asian Nations (ASEAN) member countries, Australia, Canada, Hong Kong, Japan, Russia, the USA, most European Union countries and many other Western and Asian countries do not need a visa to visit Thailand if their purpose of visit is as a tourist. Those who arrive by air receive 30-day permits except for citizens of South Korea, Brazil, Chile and Peru, who get a 90-day pass. However, visitors who arrive by land are only given 15 days, though visitors from some countries – especially from Russia – still get 30 days on the land border because of bilateral visa exemptions. Local immigration requires visitors to have passports with a minimum of 6 months validity and at least one blank visa page. Passport holders from Bhutan, China, Cyprus, Czech Republic, Estonia, Hungary, India, Kazakhstan, Latvia, Liechtenstein, Lithuania, Maldives, Mauritius, Oman, Poland, Russia, Saudi Arabia, Slovakia, Slovenia, Uzbekistan, Ukraine, Ethiopia, Taiwan, Bulgaria, Andorra, Malta, Romania and San Marino can avail of visa-on-arrival at certain entry points. However, it is best to consult the Ministry of Foreign Affairs for up-to-date information. Take note that under the law, you must have your passport with you at all times.

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AUSTRALIA

Terra incognito no more

THE WORLD’S SMALLEST CONTINENT IS HOME TO SOME OF THE WORLD’S BIGGEST, MOST BREATHTAKING SCENERY AND STUNNING PROPERTIES.

LIFE’S A BEACH Expensive residential properties in Sydney’s Balmoral Beach highlight Aussies’ love for their beaches, where they are more than willing to spend basking in for hours on end.

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HE LAND DOWN UNDER is a fascinating place. Simultaneously the world’s largest island and smallest continent, Australia is a land of upside-down seasons, kangaroos and breathtaking natural beauty. Its attractions, to name a few, include the cosmopolitan cities of Sydney and Melbourne, its flat, arid interior called the Outback, and the spectacular Great Barrier Reef. Officially the Commonwealth of Australia, the country liews entirely in the

AUSTRALIA J U NE –JULY 2 0 12

Southern Hemisphere and comprises the mainland of the Australian continent, the island of Tasmania and numerous smaller islands in the Indian and Pacific Oceans. It is the world’s sixth-largest country by total area. Australia has the world’s 13th largest economy and fifth-highest per capita income. As it has the second-highest human development index globally, Australia ranks highly in many international comparisons of national performance, such as quality of life,

health, education, economic freedom and the protection of civil liberties and political rights. Despite the global economic downturn, the Australian economy has been strengthening, according to data from the International Monetary Fund. The country's GDP grew 2.7% in 2010, up from 1.7% in 2009. According to Reserve Bank of Australia governor Glenn Stevens, these moderate outcomes are being assisted by the high level of the exchange rate, the earlier decline in wages growth and strong competition in some key markets, which have worked to offset large rises in utilities prices. Australians are afflicted with an insatiable craving to explore the unknown, which they bend to willingly, fleeing for days, sometimes weeks. The country’s geography is a wonder to behold: the vast spot in the continent’s dry, flat interior called the Outback, the continent’s coasts peppered with some of the world’s finest beaches, and the unspoilt forests of Tasmania. Regardless of their background, many Australians feel a strong connection to their homeland. In fact, the fragile state of the country’s environment has emerged as a universal equaliser. Being the world’s driest continent, water restrictions are now the norm in most cities. The country’s sheer size gives it a wide variety of landscapes: subtropical rain forests in Queensland, mountain ranges in eastern New South Wales and Victoria, temperate rain forests in Tasmania, and an arid desert at its centre, which makes Australia the world’s flattest continent. Much of Australia’s 22.7 million people are heavily concentrated in the eastern states of Queensland, New South Wales and Victoria. The rest – Western Australia, South Australia, Northern Territory and Tasmania – make up a paltry 20% of the country’s population despite comprising more than half of its land area.

NEW SOUTH WALES Bold, brassy and old New South Wales hogs the lion’s share of Australia’s population. Its glitzy capital of Sydney, which hosted the 2000 Summer Olympics, is perhaps Australia’s most popular destination, thanks to its iconic Harbour Bridge and Opera House. But there’s more to this state than a coat-hanger-shaped bridge and eclectic performing arts venue. Its history is written all over its sandstone edifices and gracious old pubs. Ski bunnies hit the slopes in the Snowy Mountains and surfers carve up the shoreline from Byron Bay to Eden. The state’s Lower Hunter Valley is a popular destination for gastronomes and wine connoisseurs. The Pokolbin area, in particular, has a large number of vineyards, restaurants, shops, golf courses and country guesthouses. Other parts well known for wine include the Wollombi Valley and Broke Fordwich. VICTORIA Victoria may be pint-sized compared to other states, but what it lacks in size, it makes up for in variety, wilderness and culture. Melbourne, the nation’s second largest city, occupies a southern bay, and is a hybrid of global influence. This city is known for its art, music, theatre, cinema and cuisine. Wild surf pounds the Victorian shoreline and coastal towns are close to lush national parks, such as Port Campbell National Park. Around Melbourne, the Yarra Valley and Mornington Peninsula are well-known for their vineyards and wine while popular spa towns Daylesford & Hepburn Springs aren’t too far either. QUEENSLAND Home to the astonishing Great Barrier Reef, Australia’s north-eastern state is drenched (sometimes literally) with subtropical landscapes, vibrant cities and 300 days of sunshine a year. It also hosts some of Australia’s most notable cities – the touristy Gold

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Coast, Brisbane and Cairns – the Gondwana rainforests and the World Heritage-listed Fraser Island. The state is most notable for a wide range of activities for the active traveller, such as white-water rafting, scuba diving, snorkelling, bushwalking, horse riding, surfing, bungee jumping and abseiling. It is also home to the most number of tours accredited under the national eco-certification scheme in Australia, which ensures that travellers safely and sustainably explore – not exploit – this beautiful state. SOUTH AUSTRALIA South Australia entices visitors with an annual smorgasbord of festivals and events, from the Robe village fair to the world-renowned Womadelaide. This state uses its long stretches of beaches, emerald green waters, wineries, native wildlife and Outback landscapes to seduce visitors. Its capital Adelaide is perched between white sandy beaches and forested hills, and is home to some of

the country’s best cultural offerings, not to mention gourmet wining and dining. Speaking of wine, the Barossa Valley is just 60 km from the capital, where the world-famous Penfolds Grange Hermitage originates.

CURTAIN CALL Arguably one of the most distinctive buildings of the 20th century, the Sydney Opera House (left) is one of the busiest performing arts centres in the world. Western Australia’s capital Perth (right)

Australia ranks highly in many international comparisons of national performance, such as quality of life, health and economic freedom. WESTERN AUSTRALIA Western Australia’s huge size and small population make it the country’s final frontier. In the north one will find all manner of photogenic landscapes: stunning gorges and waterfalls at Karijini National Park and flaming red sunsets on Cable Beach. The southwest offers impressive beaches, expanses of wildflowers and lush green forests teeming with

PROPERTYLIFE.ASIA

life. At Margaret River, surfers carve world-class waves while vignerons craft world-class wines, complemented by the gourmet grub of the town’s restaurants. Perth and neighbouring Fremantle are both cosmopolitan cities, yet retain a languorously laid-back feel, perhaps inspired by having so many fantastic beaches and parks on their doorstep.

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HOW TO GET THERE

AUSTRALIA

Canberra

They don’t call Australia the Land Down Under for nothing. It’s a long way from everywhere, and getting there usually means a long-haul flight. The distances between its key cities, too, are immense – a minimum of an hour or two of air time and up to several days of highway cruising.

HOW TO BUY

INVESTING IN AUSTRALIAN properties is increasingly becoming popular with overseas investors looking for returns and stability not available in their own country. According to real estate consultancy firm CB Richard Ellis, more than 1,200 apartments in Australia were either planned, being marketed or were under construction by Chinese companies in the last quarter of 2011. Buying a property from a developer. Apartments or townhouses in a proposed, yet-to-be completed or completed (but has not yet been occupied or sold) development can be sold to foreign investors as long as the developer applies in advance for this to be allowed. If a foreign citizen buys a property in this way, the property, when built, can be rented out, sold or used by the purchaser. However, foreign interests cannot hold more than half the apartments or townhouses in any one development.

The buying process. As with any property purchase, it is essential that the buyer thoroughly researches before making a major decision. The buyer may have a location in mind; however, it is always helpful to speak to a real estate agent who can offer sound advice on selecting an affordable area with great returns. Organise the team of professionals. A solicitor – who must be in the same state of the property or at least licensed to deal with that state – is needed to take care of the legal work. A good mortgage broker, with experience in helping non-residents to apply for a loan, is also an essential member of the team of experts. The mortgage broker can be anywhere in Australia and doesn’t need to see the property being bought. Although an accountant isn’t necessary, there are a few benefits in having one, such as structuring the financials and saving on tax. The accountant can be located anywhere in Australia.

GETTING IN An Electronic Travel Authority (ETA) is an authorisation for entry to Australia available to citizens of the following countries: Brunei, Canada, Hong Kong, Japan, Malaysia, Singapore, South Korea, Taiwan and the USA. This programme effectively removed the need to apply for full visas, and can be applied for over the internet, through travel agents and through airlines. ETAs are of three types (subclasses 976, 977 and 956) depending on the visitor’s purpose and length of stay. An application fee of A$20 ($21) is required for 976 and 977, and A$105 ($110) for 956. The Australian government also grants eVisitor, which is free of charge, to passport-holders of the 27 member-states of the European Union, the four European Free Trade Association states, and the four European microstates. Furthermore, citizens of Argentina, Bahrain, Brazil, Chile, Croatia, Kuwait, Maldives, Oman, Qatar, Saudi Arabia, Turkey and the United Arab Emirates can apply for an Electronic Tourist Visa (e676), which costs A$110 ($116). The holder of this visa can study or engage in training in Australia for up to 3 months, though they are not permitted to work save genuine unpaid voluntary work.

A buyer’s agent is also very useful if the buyer is located overseas and cannot physically inspect the real estate. His or her main job is to source and negotiate the ideal property, and to ensure that the property represents a good opportunity. Applying for a loan It is essential to first apply in an Australian bank or lender for financing. However, ensure that all necessary loan documents,

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such as payslips, tax returns or an employment letter, are prepared, as the lending criteria can be very complex. It is essential to get the mortgage pre-approved before looking for a property, as good properties don’t stay on the market long. The buyer with a pre-approved loan usually snaps up the best investments. More importantly, the buyer will know if he or she is eligible for a loan and how much he or she can borrow. Seek FIRB approval. The Australian government insists that all applications from foreign citizens or companies to buy residential real estate are put before the Foreign Investment Review Board (FIRB). Thirty days is needed for an application to be looked at by the FIRB. An approval can only be granted on a specifically nominated property. Therefore, real estate contracts with foreign citizens must contain a clause saying that going ahead with the

purchase is conditional upon getting FIRB approval and that 30 days must be allowed for that approval to be granted or denied.

SAND, SAND AND SURF Queensland’s Gold Coast (left) and New South Wales’ Berara Beach are two of Australia’s most popular tourist destinations.

Foreign buyers must seek approval from the FIRB before they can purchase a property in Australia. Find a property. Now is the time to visit Australia and begin searching for a property. The other option is to use a buyer’s agent. If the buyer decides not to use a buyer’s agent, then it may be a good idea to order a valuation on the property to ensure non-overpayment. Often the bank chosen by the mortgage broker will value the property; however, the banks often don’t tell if the valuation comes in short.

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Negotiate the purchase price. According to mortgage specialist www. homeloanexperts.com.au, properties in Australia generally can be sold for up to 10% less than their original price. However, this varies depending on the market, location and type of the property. Some real estate websites will publish the ‘discounting percentage’ for particular suburbs, which is the average percentage below the listing price that a property sells for.

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Obtain formal mortgage approval. When a property has been chosen, the contract of sale can then be forwarded to the mortgage broker or bank to proceed with the formal approval. It is important that the buyer does not commit to buy the property until the mortgage is approved. Once the contract of sale has been forwarded to the bank, it will issue a formal approval notice within a week. Exchange contracts and pay deposit. The contract can be exchanged after the loan has been formally approved and the solicitor gives a go ahead. At this point a 10% deposit is needed, although the amount of the deposit is negotiable and differs between states. It is very important that the contract has the clause ‘subject to FIRB approval’ and 30 days must be allowed for a FIRB decision. This will ensure that if FIRB proposal is rejected, the buyer will not lose the deposit. Final arrangements. Once the contract has been exchanged, forward a copy of the signed contract to FIRB for formal approval. The bank would have sent out the loan documents after formal approval. To accept the loan offer, sign the appropriate sections and return the

loan documents back to the bank. It is important to inspect the property before settlement, which can be performed by the buyer’s agent. Settlement. Settlement is when the property changes hands and the loan is advanced. This will be handled by the solicitor in conjunction with the bank and mortgage broker. The title for the property is held by the lender for safekeeping and the keys are available for pick up from the selling real estate agent.

1 Legal fees – often $830 to $2,000 2 Loan establishment fees – can be as high as $930 depending on the lender 3 Stamp duty (State government taxes, often this is the largest expense) 4 Property inspection fees – normally up to $600 in total for a building, pest and strata inspection 5 Buyer’s agents fee – varies depending on the nature of the services provided 6 Other minor costs – building insurance, council rates, water rates adjustments, etc.

Australian properties are increasingly becoming popular with overseas investors looking for returns and stability not available in their own country. Costs of buying a property. As a general rule, roughly 5% of the purchase price is allowed for various expenses associated with purchasing a property:

PROPERTY BASICS Australia’s growing economy and shortage of good quality apartments create a demand from locals, and a long-term lease proves to be the most efficient strategy.

RENTAL YIELDS

5.56%

WINE COUNTRY Barossa Valley is one of South Australia’s oldest and most prestigious wine-producing regions. More than half of Australian wines are produced in this state.

PRICE INDEX

–4.8% (annual price change to Q4 2011) PRICE

$7,690–$9,693 (per square metre) RENT PER MONTH

$3,197 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

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AUSTRALIA J UNE–JU LY 2 012

WHERE TO BUY Citizens of countries not mentioned above can apply for tourist visa (subclass 676), which will allow them to visit Australia for holiday or recreation or to visit family and friends. As with e676, application for 676 costs A$110 ($116). For more information on visa application, visit www.immi.gov.au/visitors/.

MANY EXPERTS agree that purchasing a property in Australia is a good investment. Its government has increased key interest rates to avoid a real estate crash that devastated the USA and Europe; the country posted a higherthan-expected GDP growth rate; and a general shortage in number of houses has ensure that demand is always higher than supply. Furthermore, Australia is one of the world’s top tourist destinations, which sort of ensures that the glitzy urban havens of Sydney and Melbourne and resort cities of Gold Coast, Brisbane and Townsville are in constant demand for houses, apartments and condos.

GETTING AROUND Qantas and its low-cost subsidiary Jetstar have an extensive network throughout Australia. Virgin Blue is another highly competitive carrier that flies all over Australia. There are also many smaller operators flying regional routes. In fact, in many places, such as remote Outback destinations or islands, these are the only viable transport option. For more information on Australian domestic carriers, go to www.ozflightsguide.com. au/domestic_airlines_in_australia.php. Australia’s railways are some of the longest in the world, but rail travel here is definitely not fast. Hence, people are advised to allot at least several days to travel between Australian states. But still, Australian rail services offer some of the most iconic train journeys, with the 4,352-kilometre Indian Pacific between Sydney and Perth being one of the few truly transcontinental railways in the world. There is also the Overland between Melbourne and Adelaide and the Ghan between Adelaide and Darwin via Alice Springs. Many travellers also find that the best way to see out-of-way places in Australia is to rent a car. One can drive all the way around Australia on Highway 1 and through the Centre from Adelaide to Darwin without leaving sealed roads, or from Sydney to Perth through the Eyre Highway.

Photos courtesy of Hocking Stuart Melton

Air travel is virtually the only way of getting into Australia. Sydney, Melbourne and Brisbane serve as the country’s major international gateways. Sydney’s Kingsford Smith Airport is the primary hub for Australia’s national carrier, Qantas, the country’s busiest, and has the most flights to Asia. Qantas flies regularly to Bangkok, Hong Kong, Jakarta, Manila, Shanghai and Singapore. In addition, Air China, Cathay Pacific, China Eastern Airlines, China Southern Airlines, Garuda Indonesia, Malaysia Airlines, Philippine Airlines, Singapore Airlines, Thai Airways International and Vietnam Airlines fly from their respective hubs to the city. Qantas also flies regularly to Hong Kong and Singapore from Melbourne’s Tullamarine Airport. In addition, Air China, Cathay Pacific, China Eastern Airlines, China Southern Airlines, Garuda Indonesia, Malaysia Airlines, Philippine Airlines, Singapore Airlines, Thai Airways International and Vietnam Airlines have flights to Melbourne from their respective hubs. Qantas flies regularly from Brisbane to Hong Kong, Manila and Singapore. In addition, Cathay Pacific, China Southern Airlines, Malaysia Airlines, Singapore Airlines and Thai Airways International fly from their respective hubs to the city.

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Whether you are considering a home to reside in or as an investment and rental property, now is a good time to buy. In some areas, housing prices have returned to what they were before the Global Financial Crisis began and further growth is predicted. NEW SOUTH WALES Byron Bay is a beachside town located in the far-north-eastern corner of New South Wales. It is also the easternmost point of mainland Australia. The town has several beaches popular for surfing. One example of a good property in Byron Bay is a two-bedroom, $359,000 villa located close to the town’s CBD. Another New South Wales location that shows plenty of promise for

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property buyers is Mona Vale, a suburb of Sydney. A renovated, $452,000, beachside apartment located along Seabeach Avenue is nestled close to Mona Vale Beach. This first-floor apartment offers a wide balcony, modern kitchen, customised dining bar and a new bathroom.

SUBURBAN SPRAWL This six-bedroom house (previous page) located at Melton, a suburb of Melbourne, makes for an ideal family home. The property boasts of modern design and a fully equipped kitchen. A four-bedroom house (below), also in Melton, boasts of a modern kitchen, well-manicured garden and a double remote garage.

VICTORIA Being Australia’s cultural capital, Melbourne is the birthplace of the country’s film, television and impressionist art movement. Also one of the world’s most liveable city based on a survey conducted by The Economist, it is not surprising that buyers flock to the city and its suburbs to snatch up some of best properties this part of the globe.

One such suburb is Melton, located 35 kilometres east from Melbourne’s CBD. A $490,500 to $511,000 house in Regent Place, Melton West, offers six bedrooms, three bathrooms, an oversized remote garage, and a well-manicured garden on an approximately 1,058-square-metre land. Another property in Melton is a $411,000 house along Paul Harris Drive, Melton West. The property boasts of three bedrooms, a master bedroom with walk-in wardrobe, a spacious formal lounge, two bathrooms, a fully equipped kitchen, and a double remote garage on a 582-square-metre land. QUEENSLAND One of Queensland’s most well-known attractions is the resort city of Gold Coast. The city’s high-rise dominated skyline, theme parks, nightlife and rain forest hinterland make tourism one of its most significant industries. Gold Coast will also host the 2018 Commonwealth Games. A stunning three-bedroom townhouse in the Gold Coast suburb of Mermaid Beach offers a relaxed resort-style atmosphere. The $396,000 property is a stone’s throw away from Nobby’s Beach and offers a private courtyard, landscaped grounds, top amenities and a rental return of A$463 per week. Not to be outdone is the state capital Brisbane, Australia’s third-most popular tourist destination (after Sydney and Melbourne). The city is home to the South Bank Parklands, City Botanic Gardens, Portside Wharf and the Lone Pine Koala Sanctuary. A $350,000, three-bedroom townhouse in the suburb of Oxley – 11 km from Brisbane CBD – offers 5% return. The property boasts of a private courtyard, spacious air-conditioned lounge and separate dining area, pool and BBQ cabana for all the property’s residents – all within a secured gated community. SOUTH AUSTRALIA South Australia’s capital and commercial centre, Adelaide, also ranks highly in terms of liveability, being listed in

PROPERTYLIFE.ASIA

Photos courtesy of Raine and Horne

METICULOUSLY MAINTAINED This four-bedroom, Federation-style house in Thornlie, a suburb of Perth, is on the market for $488,205.

the Top 10 of The Economist’s World’s Most Liveable Cities index in 2010 and being ranked the most liveable city in Australia by the Property Council of Australia in 2011. A 17th-floor, $365,000 Adelaide penthouse features stunning views of the ocean, the River Torrens and the West End, and guarantees a gross return of 6.2% after all management fees. The property’s open-plan living and dining area is light filled and its kitchen is very well appointed with solid granite bench. The state’s wine-producing regions are also a favourite among property hunters – chief of which is the Barossa

Valley, one of Australia’s oldest. Located 56 km north-east of Adelaide, the emergence of several boutique family specialising in old-vine Shiraz began to capture international attention, which led to the renaissance of Barossa Valley and catapulted it to the forefront of the Australian wine industry. The region’s major commercial centre of Nuriootpa, about an hour’s drive north of Adelaide, offers a $329,500 property located along Jacobs Street, which boasts of three spacious bedrooms, two bathrooms, two living areas, huge kitchen and double garage.

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WESTERN AUSTRALIA Perth is Western Australia’s main service centre, which owes its wealth and importance to the state’s rich natural resources. A Federation-style house in Thornlie, 18 kilometres south-east of Perth’s CBD, is on the market for $488,205. It has four bedrooms, a modern kitchen, and a formal lounge and dining room. If you fancy watching sunset while sipping a glass of Riesling, Chardonnay or Pinot Noir, then the wine-producing regions of Blackwood Valley, Margaret Region and Manjimup are for you. A $379,500, fully established, fourbedroom house located along Dibblre Street, Margaret Region, boasts of a fully fenced backyard; a covered, paved outdoor entertainment area; and a modern kitchen with direct access to a double carport. Meanwhile, townhouses conveniently located along Station Road, Margaret River, each of which costs A$293,000, boast of quality fitout, including stainless steel European appliances, water tank and undercover parking.

MONSIEUR EIFFEL’S most famous sculpture has become the unofficial symbol of Paris.

The romance of

FRANCE

Photo courtesy of www.ecnp.eu

IT IS WESTERN EUROPE’S LARGEST COUNTRY IS ALSO THE WORLD’S MOST VISITED NATION, RECEIVING 82 MILLION FOREIGN TOURISTS EVERY YEAR. NO WONDER ITS PROPERTY MARKET IS AS VIBRANT.

PROPERTYLIFE.ASIA

ARIS, FRANCE. The city of love and art centre of Europe; where art lovers, and lovers alike, always feel at home. The city is the main reason why France is known the world over. This is a testament to the city’s fame. However, France is not just all about Paris. Many cities and provinces in France have impacted the world culturally and historically, though none share the same popularity as the City of Light. Take for example, Normandy. The region will forever be associated with the 1944 D-Day invasion. Outside of Paris, this is the most famous of France’s regions. Normandy is home to cities such as Mont-Saint-Michel, Le Havre and Rouen. Mont-Saint-Michel is a rocky tidal island that attracts 3 million visitors every year and is the site of the Saint Michel Monastery. The city is part of the UNESCO list of World Heritage Sites and is a place well worth the visit. Le Havre on the other hand, is a city that has erased its previous reputation as a city of gloom, and as such, is now considered as the Brasilia

PYRAMID IN PARIS The I. M. Pei-designed Louvre Pyramid serves as the main entrance to the Louvre Museum. The structure was made famous by The Da Vinci Code.

ARC AND AVENUES Paris’ most famous monument, the 50-metre-tall Arc de Triomphe, sits at the point where 12 avenues meet.

of France. As for Rouen, the city is known for its Notre Dame cathedral that was the subject of a series of paintings by Claude Monet, and was once the site of the French Grand Prix. Another region of great historical importance is Champagne. Known also for the alcoholic beverage it produces (hint: it shares the same name), this region is home to the great city of Reims. Its name may not ring a bell, but it is the most historically significant place in France. The city is the site where every French monarch since 496 A.D. was crowned. This is also where St. Joan of Arc was burned at the stake.

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Founded by the Gauls, Reims was a major city during the Roman empire and is home to the famous Cathedral of Reims, the Palace of Tau, and the Saint Remi Basilica. Those who don’t care much about history will be pleased to know that France is also known for its winter resorts. With beauty rivaling that of its Swiss counterpart, the French Alps is home to Chamonix, the world-famous ski resort which faces Mont Blanc, the highest mountain in Western Europe. The city is also known as ChamonixMont-Blanc, and is the site of the first Winter Olympics in 1924. Chamonix boasts of having one of the highest cable cars in the world. Surprisingly, the cable car system in use today is based on the original one installed in 1920 – and was only upgraded last 2008. Besides its appeal to skiers, mountaineers are also drawn to this area for the challenges of scaling the face climbs of the south side of Mont Blanc, also known as the Frendo Spur. Gourmands will be extremely comfortable in the French city of Lyon,

FRANCE J U NE –JULY 2 0 12

or France’s ‘second city’ as it’s called by its citizens. This area is thoroughly French; if one should have a hankering for authentic French living, this is the place you’d want to be in. The city also preserves the food traditions of the country and has produced some of the most famous chefs in the world such as Paul Bocuse and Georges Blanc. Additionally, Lyon is also included in the UNESCO list of World Heritage Sites for its plethora of historical and architectural landmarks. Interestingly, this is also where Auguste and Louis Lumiere invented the first cinematographer.

as the French Riviera, has been made famous as one of the prime getaways of many Hollywood stars. It is home to the cities of Saint-Tropez, Nice and Cannes. Saint-Tropez, incidentally, is where many topless beaches and nudist colonies can be found, following the sexual liberation of the 1950s and ’60s. The proliferation of well-known actors and actresses in the region can also be attributed to the city of Cannes, where the Cannes Film Festival is held. Besides the film festival, the city also plays host to Midem, which is a trade show for the music industry, the Cannes International Advertising Festival, the

Unless you hate food, festivals, the beach, romance, art and history, a home in France can be described as near perfect.

If you’re a wine lover, you should head on over to the city of Bordeaux along the Atlantic Coast. France’s sixth largest urban area, it is also one of the world’s wine capitals, where the alcoholic drink has been produced since the 8th century. Beach lover? The French has got you covered. Côte d’Azur, or better known

International Festival of Games and several other festivals for the arts. All these are but a small sampling of what the country has to offer. Unless you hate food, festivals, the beach, romance, art and history, a home in France can be described as near perfect. So you see, France is not just about Paris.

HOW TO GET THERE

FRANCE

Paris

GETTING THERE France has two major airports that handle international flights. The first, RoisyCharles de Gaulle Airport, is the main gateway to France and is the second busiest airport in Europe after Heathrow Airport in London. Travellers from outside Europe usually touch down here. The second airport is Orly Airport and it has been described as just a few degrees as frenetic as Charles de Gaulle Airport. Orly Airport, however, only serves domestic flights and some European countries. Speaking of carriers, there are a healthy number that travel to Paris. Being the most visited country in the world, many airlines provide travel to France at any time. A complete list can be found online, or you can ask your nearest travel agent. Major Asian carriers that fly regularly to Paris include Cathay Pacific, Japan Airlines, China Southern, Air China, Thai Airways, Singapore Airlines, Malaysia Airlines and Vietnam Airlines, among others. GETTING AROUND Getting around Paris, the best and easy way is to rent a car. If you choose to travel by hiring a car, be sure to book in advance lest you be left with a vehicle you can’t drive or can’t handle (manual transmission, left-hand drive cars, etc.). Paris has a clean system of roads and highways that make travelling from Paris to any point in France easy. There are also daily domestic flights around France you can use if you don’t wish to drive. Air France serves eight cities in the country and has few domestic competitors. Though the country has 478 airports, not all are used for tourist travel. The usual travel time from Paris to anywhere in France is about an hour. If you are on the fence about going to France to look at all the property options you wish to purchase, consider the ease of travel around the country to help you decide. Being there yourself is always better.

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PROFESSIONAL FEES Translation Translator fees vary, though a rough range for translation services is $0.08–0.11 per word. If by page per document, prices will range from $8 to $10 per page. Legal/Notaire fees Closing costs often include the notaire's fees, legal, administrative and filing costs and all taxes. Though these fees vary from region to region, you can estimate the total cost using the following rules of thumb: 1 Properties more than five years old: 8–10% of purchase price 2 Properties built within five years before date of settlement: 4–5% of purchase price

HOW TO BUY

BUYING PROPERTY IN FRANCE is different from most countries. It’s a pretty straightforward process, though it can be confusing at first. Fear not though, since you will be protected by a number of French laws. The first thing to do before purchasing is to tap the services of a translator. Even if you speak some French, it is best to hire one rather than do all the talking and reading yourself. Because even if your French is good, unless you are a native speaker, it might create a false sense of security, thus making it easier for you to misconstrue subtle nuances and wordings in the contract that may harm you in the future. Once you’ve set your eyes on a piece of property, be sure to inspect it thoroughly. If a house or structure is involved, be sure to inspect every nook and cranny. It is advisable to bring your own inspector to make sure all is

When buying a piece of property in France, it is wise to have all your bases covered. as it should be. Make sure everything is fixed and working before you sign. Treat the property as you would when you buy a car, whether used or brand new. Check to see that all is in good order, that no repairs are needed, and what you are buying is as advertised. This might seem strange and bordering on overkill, but you wouldn’t want to purchase a house or property where repairs might cost more than the property itself. If a property is furnished or semi-furnished, be sure to establish with the vendor which of the fixtures and fittings will remain upon purchase. It is not unusual to have a piece of property or house look splendid with all lights and furnishings

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intact, then upon signing, look bleak and empty. Additionally, if you are buying as a couple but are unmarried, make sure that you buy on a joint basis to make sure all interests of each party are secured. On the other hand, if you are married and wish to have your spouse inherit the property, it is advisable to procure a French marriage contract or an en tontine (joint ownership). Once you decide to buy, be aware that the minute you make an offer, you have committed to the purchase. Though there is no need for a written offer, be careful with what you say and let your intentions be known only when you are sure. If the seller agrees, he or she will send a certified letter stating that both

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PROPERTY BASICS The French property market offers stable growth and a tried-and-tested marketplace in which to invest. The country’s size means that there is a great variety of property available.

RENTAL YIELDS

3.26% PRICE INDEX

4.3% (for single detached houses in the © SXC/Simona Dumitru (right) and Stephen ONeill (left)

year to end of Q4 2011)

parties agree. Under French law, you have seven days from date of receipt of the letter to pull out of the agreement without penalty. Be advised that it is against French law for any seller or agent to ask for any kind of deposit or downpayment when an offer is made. If the seller asks for money immediately, you have the right to refuse. Money should only exchange hands when the actual sale is being made. In lieu of a traditional property lawyer, the French use a notaire. A notaire is a public appointed agent whose service is often cheaper due to a fixed scale set by the government. If a seller insists that you do not use a notaire, you have every right to be suspicious. Notaires are required under the law to make sure that you know what you are signing for. That said, make sure you question everything. It’s better to act dumb and be safe than to feel knowledgeable and risk losing a lot.

PALAIS DU LUXEMBOURG Pool in front of Paris’ Palais du Luxembourg (left), where Victor Hugo’s characters Marius Pontmercy and Cossette first meet in Les Misérables. A row of quaint apartments along Cannes’ Rue d’ Antibes.

Come contract time, know that there are two types used when buying property in France. One is the Promesse de Vente (where the seller is committed, not the buyer) and the other is the Compromis de Vente (where both parties agree to sell and purchase, upon completion of the last condition of the sale). Although the differences between the two are minimal, be sure you know what you are getting and always ask your personal notaire to look over the contracts before you sign anything. Most likely though, a Compromis de Vente will be used as it is the one most commonly issued.

PRICE

$17,120 (per square metre) RENT PER MONTH

$5,574 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

When the time to sign the contract comes, a notaire usually uses a contract of their own, different from the seller’s, which may be an advantage to one of the parties involved in the deal. This is another reason for you to have your own notaire present – to ensure that the contract is fair to you. Once you have signed, you are obligated to purchase the property subject to the conditions stated in the contract. So before signing the contract, make sure you understand it well, have it translated if need be, and have it double checked by your personal notaire. When buying a piece of property, whether in France or otherwise, it is wise to have all your bases covered. Get your own notaire to make sure you are treated fairly. Have your own translator present at all times even if you speak French. Though buying property in France is relatively simple, the need to protect yourself at all times is a must.

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Photo courtesy of SXC/bubblefish

WHERE TO BUY

FOR FIRST-TIME BUYERS, choosing the right investment can be overwhelming. Deciding beforehand the type of property that appeals to you can help narrow down your choices. Below are several French properties for sale – from gorgeous Côte d’Azur to historic Normandy – that might pique your interest. First up, an apartment for sale located in Le Cannet, Alpes Maritimes at Provence Alpes Côte d’Azur. Located in one of the premiere real estate locations in France, the apartment boasts of breathtaking sea views. It is a south-facing apartment with two bedrooms, a reception room and a bathroom. The unit is found on the 11th floor of a residence building with lift, which makes for a bright and airy apartment. It also features an entrance hall with fitted cupboards, a living room, kitchen, water closet and a balcony. Additionally, there is also a cellar and private parking. This lofty perch costs an affordable $350,000.

Also in Provence Côte d’Azur, specifically in Cogolin, we have a bijou townhouse with two bedrooms and one bathroom available for $345,000. Built in 1980, this plot of land measures 69 square metres, with the living area a comfortable 40 square metres. Located in one of the most sought-after domains of the Bay of Saint-Tropez, the house is in excellent condition and has been upgraded with a new fitted kitchen plus air-conditioning in all bedrooms. There is also a cosy south-facing terrace that’s ideal for al fresco dining. The residence area itself is meticulously maintained, hosts a huge swimming pool, and has a wading pool for children. The house is a quick 10-minute drive to the beaches on the Bay of Saint-Tropez, is easy walking distance to lively Cogolin, and is 15 minutes away from Saint-Tropez itself. If you are looking for the lively beach life but with a hint of serenity, this property is definitely for you. Up in the Dordogne-Bordeaux region, specifically in Eyliac, Perigueux, $353,000 nets you 7,400 square metres of land with 214.2 square metres of liv-

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FESTIVE MOOD Palm-lined Promenade de la Croisette is Cannes’ most famous road. Palais des Festivals et des Congrès is located here where the prestigious Cannes Film Festival is held. HAUTE HOMES A classic French interior grace the living space of this simple villa in Cogolin (left). A traditional home sits atop a hill surrounded by lush greens.

ing space. This exquisite Pergordine home is at the forefront of a beautiful hamlet nestled within stunning surroundings with magnificent views of the countryside. With four bedrooms and two bathrooms, this 18th century house of stone has been restored to perfection in 2006. There is a large, fully fitted kitchen with exposed beams and a 36-square-metre apartment consisting of two large rooms and a shower room. The house also offers modern conveniences such as broadband Internet and cable TV. A decked swimming pool with safety alarm, a two-car garage and a paddock round out the features of this beautiful country home. Located a mile off Ey-

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Deciding beforehand the type of property that appeals to you can help narrow down your choices. has a boulangerie, bar, post office and hardware store if ever you find the need for supplies. There is also a leisure lake nearby for lounging lakeside. The asking price for this exquisite home is $338,00. If you are looking for the big city life, in Paris there is an apartment that might suit your needs. Here is a simple antique flat that contains one room, a separate kitchen, one bathroom and one water closet. There is also a living room and attic with a livable surface area of 22 square metres. The condition of the apartment is in good shape and the building it is located in has its own lift. Perfect for the travelling businessman, or the jet-setting bachelor looking for

ÂŠ SXC/John Evans (left), ChangHyun Bang (right)

liac, three miles off Bassilac and 9 miles off the historic medieval city of Perigueux, it is accessible to the A89 highway that leads straight to the Atlantic coast and Bordeaux. Though it is situated fairly away from the hustle and bustle of the big cities, this ensures that the property is isolated enough to offer privacy for its residents. Still in the Dordogne region, we have a four-bedroom, one-bathroom, and one-reception-room house near Villefranche de Lonchat. Located approximately 40 minutes away from the Bergerac airport and an hour away from Bordeaux, the property is a beautiful house built in the French Girondine style. The nearest village

IMMIGRATION/VISA REQUIREMENTS When travelling to France, you might need a visa to be able to enter the country. If you are a national of the European Union (EU) and European Free Trade Association (EFTA), all you need is a passport or national identity card. However, if you are from non-EU or non-EFTA member countries, a passport will be needed together with a visa, if applicable. Below is a list of non-EU/EFTA countries that do not require a visa to enter France: Albania, Andorra, Antigua and Barbuda, Argentina, Australia, Bahamas, Barbados, Bosnia and Herzegovina, Brazil, Brunei, Canada, Chile, Costa Rica, Croatia, El Salvador, Guatemala, Honduras, Israel,Japan, Macedonia, Malaysia, Mauritius, Mexico, Monaco, Montenegro, New Zealand, Nicaragua, Panama,Paraguay, Saint Kitts and Nevis, San Marino, Serbia, Seychelles, Singapore, South Korea, Taiwan (Republic of China), United States, Uruguay, Vatican City, Venezuela, additionally persons holding British National (Overseas), Hong Kong SAR or Macau SAR passports. Non-EU/EFTA visa-free visitors, however, may not stay more than 90 days and not work during the entire stay. If you need more information as to your eligibility, feel free to contact the nearest French Embassy for the exact details.

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a place to stay in Paris, the flat costs $330,000 and is expected to be sold right away. Out in Dignac, Charente, a five-bedroom, one-bathroom house surrounded by a private garden and an in-ground pool sits ready to be called yours for just $320,000. This property is filled with character and it boasts its own castle turret and reception room. Located in a secluded and quiet location, you will surely find peace and quiet here. It is located just 15 minutes away from the city centre of Angouleme and a TGV station with direct links to Paris. The Bordeaux, Poitiers and Limoges airports are just over an hour’s drive away making this piece of property easily accessible anywhere in France, even the

SOUTH OF FRANCE The city of Arles in Provençal (top) where Vincent van Gogh produced over 300 paintings and drawings during his two-year stay there. Villefranche-surMer (top left) on the French Riviera has one of the deepest natural harbours of any port in the Mediterranean Sea. Le Puy-en-Velay in south-central France near the Loire River is famous for its cathedral and Verbena-flavoured liqueur.

whole of Europe, while being isolated from the noise of everyday living. A sanctuary for mid-sized to large families looking for peaceful living. Up north in the Upper Normandy region, in La Bouille, Seine Maritime, sits a gorgeous vintage stone house.

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Situated on the bank of the Seine near the village of La Bouille, 25 kilometres from Rouen, the house features three bedrooms, two bathrooms and a reception room. With 130 square metres of living space set in a mature enclosed garden of 659 square metres, this beautiful piece of property is just an hour and 30 minutes away from Paris. A perfect piece of land for someone with a growing family, that offers gorgeous surroundings and peace and quiet by the bank of the River Siene. This charming piece of property can be yours for $334,000 These are just a few examples of the many properties for sale in France. Looking for the perfect one, though, is up to you.

UNITED KINGDOM Owning a piece of the Realm

ALTHOUGH AFFECTED BY THE GLOBAL ECONOMIC DOWNTURN, THE PROPERTY MARKET OF THE UK REMAINS BOUYANT THANKS TO ITS SAFE HAVEN STATUS.

BRITAIN BECKONS The UK capital’s property market has weathered the eurozone debt crisis, making it one of the best places to invest in Europe.

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uying property in the UK is an investment for life. Being a top five economy, the trend for real estate market value in the UK is always an upward curve. The country has a lot to offer with its multi-cultural society, rich and colourful history, and some of the most breathtaking landscapes, countryside and tourist attractions. As mentioned, the country is one of the top five economies in the world, and though the housing market can be volatile at times, the real estate market in the UK has managed to stay buoyant despite the downward trends across the globe. This alone is reason enough to invest in property in the UK. Many who buy property here view it as a long-term investment, especially since the demand often outstrips the supply. In the last two years the London home market outperformed the rest of the country. That said, buying property now ensures that the value you get for your money will increase in a few short years. Having a city as big as London is also one of the reasons for the healthy real estate market. Being one of the economic movers and shakers of the world has ensured that the demand for property in the UK is always high. Many expats end up buying their own homes here for the first-class quality of life the country offers. The history of the UK is one that spans thousands of years. From stories of King Arthur and other knightly tales, you get a glimpse of the country’s varied and colourful history. The air of culture here is palpable and to live in it is an experience that is unrivalled. People who want to live in the fast lane should try nesting in the heart of London, where it can be as hectic and heart stopping as living in Wall Street. SECURITY DETAIL Band performing during the Changing of the Guard ceremony (top left) taking place in the courtyard of Buckingham Palace, Westminster. Salisbury Crags in the distance and rows of rooftops in the city of Edinburgh (bottom left).

Being one of the world’s leading economic centres, demand for property in Blighty is always high.

However, if you should decide to live life slow, consider a place in the countryside where you feel at one with nature. From the rolling hills of Scotland to the old castle ruins of England, the scenery here is nothing short of spectacular. Fact: the South West subregion of Greater London (e.g. Kingston upon Thames) has been ranked as one of the top places to live in in Europe. Over half of the inward immigration to South West has been from Central London. The area is also one of the safest places to live in in the UK, and residents here have the highest life expectancy. Its roads are safe and clean since more people here walk or cycle to and from work than in the whole country. It also helps that the South West has a mild climate compared to the rest of the country. People looking to buy property where it can be both exciting and calming, where tradition meets the modern, where history and culture mesh like a chain mail shirt, consider the UK. Those who want to experience the excitement of big city living can find it in a home in or near London. For those looking for serene tranquility in the countryside, near many famous tourist attractions, the North of England is your best bet. And if you are looking for the highest quality of life where the streets are safe, the people are affluent and kind, the weather is mild and life is overall superior than anywhere else in Europe, then the South West of London is where you want be. Invest in something that is more than just a piece of land. Invest in culture and history. Invest and own a piece of the kingdom.

HOW TO GET THERE

UNITED KINGDOM

London

The United Kingdom of Great Britain and Northern Ireland, more commonly known as the UK – land of tea and crumpets, beefeaters and monarchs – one of the top 5 economies of the world and one of the most famous. Most everyone in every corner of the globe is aware of the Queen’s land, but do you know how to get there? GETTING THERE Once you have all the necessary paperwork done and are eligible to travel to the UK, question now is: how to get there? Well, you can fly. There are several major airports in the UK, but the largest and most famous is London Heathrow Airport, also considered as the world’s third busiest airport. Heathrow has direct flights to most countries in the world and is the central hub of operations of British Airways (the flagship carrier of the UK) which offers a wide range of international flights to Europe, North America, Asia, Africa and Australia. Other airports that offer and accept international flights are: Birmingham International, London Stansted Airport, and Manchester Airport. In Scotland, airports that offer and accept international flights are Edinburgh and Cardiff International. Aside from British Airways, naturally there are a plethora of international airlines that offer direct flights to the UK. Some of these airlines are Cathay Pacific, Singapore Airlines, Thai Airways International, Air China, Air India, Japan Airlines, China Airlines, Royal Brunei, Malaysia Airways, Asiana Airlines, China Eastern, China Southern, SriLankan Airlines, Biman Bangladesh Airlines and All Nippon Airways among many others.

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PROPERTY BASICS UK house prices started to fall in 2009 due to the global credit crunch. Experts predict that the country’s housing market will see strong growth in 2012 and 2013. London will continue to outperform the rest of the country. According to Jones Lang LaSalle, the lack of new development will put a strain on UK housing and create upward pressure on both prices and rents.

RENTAL YIELDS

PRICE INDEX

1.1% (for single detached houses in the year to end of Q4 2011) PRICE

$8,362 (per square metre) RENT PER MONTH

$2,413 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

HOW TO BUY

ONCE YOU DECIDE to buy property in the UK, it is a good idea to get to know the ins and outs of buying land in the British Empire first. Getting caught in a tangled web of legal and technical issues can be quite a hassle. To start, you need to find a local mortgage advisor and a conveyancer (or property solicitor) to guide you throughout the whole process. A mortgage advisor will ensure that you get the right loan package on your purchase, while the conveyancing solicitor will take care of the legal aspects of your purchase. With the amount of money and legal paperwork involved, these two professionals will be your best friends throughout your journey. With a mortgage advisor and conveyancing solicitor in tow, you can now proceed with the buying process in full confidence. Figure out if what you want is a house or a flat, and know where you

want to buy property. Also, to make the decision-making process smoother, try to list down the amenities you wish to have nearby as well as what you want from a piece of property. Once these are laid down, you should be able to narrow down your choices quite significantly. The next thing to do is make sure you have enough cash on hand for the deposit. Keep in mind that aside from the deposit, you’d need to set aside money for house-purchasing and set-up costs. During this stage, make sure you confer with your mortgage advisor to help you decide on the perfect mortgage. He can also help you out with your application and get a ‘decision in principle’ on the amount you need to borrow. Next, get your property solicitor to help you manage all the legalities of the housebuying process. This is also known as conveyancing. The solicitor will also draw up all the agreements and legal documents that you need done. When purchasing property with a friend/ partner, be sure to have your solicitor

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whip up an agreement as well. This is crucial as you will never know what might happen years down the road. If you are buying with a civil partner or spouse, automatic agreements are already in place that give rights to each in the event of a separation. Next, go and look for the property that suits your needs and desires. Look among those that fit your criteria so you won’t waste time. Once you decide to purchase, make an offer to buy it but make sure that your offer is still subject to survey and contract. Once the seller, agent or house-builder agrees to your offer and conditions, you can ask them, or the real estate agent (if one is used) to take the property off the market. Once that’s done, you should then give your solicitor the power to act on your behalf. Give him or her the details of the location of the property as well as the seller’s estate agent. Your solicitor will then contact the seller’s own property solicitor to request the title deeds to start the contractual proceedings.

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Photos courtesy of Knight Frank

SAFFRON SQUARE An interior shot of one of the units in Saffron Square in Croydon, South West London, shows a spacious living space and a modern kitchen (far left). An artist’s rendition of the Saffron Square exterior shows its modern design with sleek, elegant lines.

While the legal process is running, you can start looking for a surveyor so he can give you a home-buyers report, or carry out a survey of the property. If you want, you can have a full structural survey, which will yield more information. By this time, your

as well as renovations, if needed, for pre-sale. After agreements are made and discussed, the solicitor will check the property and conduct his own local authority search to find out if any alterations have been made to the property. At this juncture, now would be a good

To start, you need a local mortgage advisor and a conveyancer to guide you throughout the process. mortgage lender will conduct their own evaluation of the property. Be aware though that you need to pay for the mortgage survey. Once the mortgage lender’s valuation is done, with all data on-hand to back up your application, he should ideally agree to lend you money. Copies of the survey report should be sent to your solicitor so the both of you can discuss his or her own views and findings. You should be able to negotiate the price

time to discuss the price for the fittings and fixtures. After this, your solicitor should finalise all the contract details of sale/purchase with the seller’s solicitor, as well as confirm the mortgage details with your mortgage lender. Once these are done, you pay your first deposit to your own solicitor’s account, where the money will be held until the exchange of contracts. When the day of exchange arrives, as soon as the contracts exchange hands, your

deposit is sent to the seller. By this time, a date of completion (wherein you accept the key and move in) is agreed upon. Your solicitor shall then co-ordinate with your mortgage lender to make sure that the mortgage is available on time. Once confirmed, he will then proceed to prepare the property transfer deed, which should be signed by you and the vendor, duly lodged with the vendor’s solicitor once completed. It is here where your mortgage lender transfers the money you will borrow to your solicitor’s account ready for completion. Once the completion is done, which is also the day you are ready to move in, your solicitor shall transfer the money to the vendor’s solicitor in exchange for the transfer deed and land registry certificate. Once the keys to your new home is given, then the sale will be deemed complete. Your solicitor will finalise all the paperwork by arranging the transfer deed to be stamped, will pay for the duty and send the land registry to record that you are now the new owner of the property. Finally, the deed will be passed on to your mortgage lender as security for your loan. That’s it! Once all the above are done, you will have a piece of the UK to call your own. Though the steps may seem convoluted, it only looks like it on paper. In reality, all this happens fairly quickly and before you know it, everything is done. That is, of course, if you have all the necessary requirements laid out and ready. As with all sales, failure to pay could mean having your lease being forfeited. Be also aware that if you are buying on lease, you are not actually buying the property but rather a length of tenure which usually lasts 125 years, though it could be as long as 999 years. All the above is not set in stone though and there may be additional steps you need to take when purchasing property. It all depends naturally, and if you need to learn more, you can ask your solicitor for more information.

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WHERE TO BUY

CHOOSING THE RIGHT PIECE of property is just like setting up a business, the most important thing to consider first and foremost is: location. Deciding on a location that suits your needs is probably the most crucial part of property hunting. You wouldn’t want to live in an extravagant home that sits right smack in the middle of, say, skid row. A small house in a slice of heaven is worth more than a mansion in hell. One of the more popular places in the UK to buy property in is Kent. The main reason for its domestic popularity? Transport. New fast services will be available as well that will soon give access to hard-to-reach locations like Folkestone and Ramsgate, where family homes can be had for about $300,000. Kent’s villages are breathtakingly beautiful, and if investors want to earn more money, it is a good idea to choose a functional property

DUSK AND DOME St Paul’s Cathedral in early dusk light. The structure sits at the top of Lutgate Hill, the City of London’s highest point. RURAL CHARM A woman walking her with her bicycle in Benington, a village in Hertfordshire (left). A family outside a Tudor house in Canterbury, Kent.

in an urban location so that it is easily accessible to commuters. Another place that is perfect for investors is in Exeter. A prime-location one-bedroom apartment costs around $200,000 while two-bedroom ones can cost about $275,000. Aside from the good prices, Exeter is located on the M5, has new business parks, an airport, a highly rated university, plus the city’s rugby team is in the premiership. What’s not to love?

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For property hunters looking for a deal, then Basingstoke is worth looking at. Where else can you find a three-bedroom family house for about $297,000 or an apartment that costs less than $150,000 that’s in close proximity to London and has easy access to a mainline station? What’s more, the town is

In Croydon, one of the developments that’s set to change the face of the district is Saffron Square on the Wellesley Road gateway. Berkeley Homes is developing a high-quality mixed use development that includes a 45-storey tower and a new public town square. The scheme comprises of commercial

Properties in London are easy to find if you know what you are looking for. area on the ground floor and part of the first floor levels, and will have 719 private residential studios, one, two and three bedroom apartments and penthouses on the top floors. It boasts of contemporary specification and an amazing view of the Croydon skyline. A guide price of the units is set at $445,000. Apartments are for sale through Knight Frank, at www.knightfrank.com, or you can contact them directly at +44 207 861 5499.

IMMIGRATION/VISA REQUIREMENTS Just as you would any other country, before going to the UK, you must first secure all travel requirements. The basics that you need are: your passport, a visa, and an identity card. Though the UK is part of Europe, it is not part of the Schengen Agreement, which means that foreigners from other European countries outside Northern Ireland, the Channel Islands and the Isle of Man must go through systematic passport/identity checks as well as selective customs inspections. There are also visa requirements for several countries.

host to several private corporations’ British bases thus its chances to resist public sector cuts is drastically reduced. A good deal all ‘round. Then we have Oxford, prices are steep but the city is virtually impervious to the downturn. North Oxford houses are perfect for schools, while in the east are the smaller homes and closer to the M40. Prices in Oxford can range from $700,000 to $2 million depending on its location.

GETTING AROUND Once you’ve arrived in the UK, there are also several ways to get around the kingdom. You can also fly, though given the short distances involved, this is the most expensive way to get around. You can also opt to rent a car. If you do, you will find the UK highways to be great places for serendipitous discoveries of majestic landscapes. Visiting the UK to plan for your future property purchase can be worthwhile. Not only will you be able to see firsthand the property you are buying, you also get a chance to soak in the culture and history of the place. Finally, as with any form of travel, whatever medium you choose to use, always be prepared. Have all your travel documents ready, your itinerary planned and bookings reserved beforehand.

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MALAYSIA Spirit of Asia

ONE OF THE FEW COUNTRIES THAT TRULY CAPTURE THE SPIRIT OF ASIA, MALAYSIA IS AT THE HEART OF IT ALL.

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TALL TALES Kuala Lumpur's Petronas Towers, officially the world's tallest twin towers, symbolise Malaysia's wealth – one of Asia's economic success stories.

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Photo courtesy of Tourism Malaysia

FEDERAL CONSTITUTIONAL monarchy that shares borders with Thailand, Indonesia, Brunei and Singapore, the country itself consists of thirteen states and three federal territories. The federal capital city is Kuala Lumpur, which is also the country’s most populous city. Greater Kuala Lumpur, also known as the Klang Valley, is one of the fastest growing metropolitan regions in the country, in terms of population and economy. The city is also the seat of the Parliament of Malaysia and was once the site of the federal government’s executive and judicial branches. In early 1999, these government offices moved to Putrajaya. The official residence of the Malaysian King, called Istana Negara, is also found inside the city. In the Foreign Policy’s 2010 Global Cities Index, Kuala Lumpur was ranked 48th among global cities, and was also ranked 67th among global cities by the 2thinknow Innovation Cities Index in 2010 for economic and social innovation. As the country’s capital city, Kuala Lumpur has also boosted Malaysia’s global image by playing host to several sporting, political and cultural events like the 1998 Commonwealth Games and the Formula One World Championship. The city is also home to the world’s tallest twin buildings, the Petronas Towers – which have since become an icon for the country’s futuristic developments. Malaysia is split into two parts, Peninsular Malaysia and East Malaysia. Though these are separated by the South China Sea, they share a similar landscape with coastal plains rising to hills and mountainous terrain. Forty percent of Malaysia’s land area is in Peninsular Malaysia, which extends 740 kilometres from north to south, and 322 kilometres east to west. East Malaysia is part of the island of Borneo, with 2,607 kilometres of coastline with coastal regions, hills, valleys and mountainous parts. Around these two major parts of Malaysia are a plethora of islands, with the largest being Banggi Island. Malaysia is a country of mixed line-

age and heritage. Aside from the three major ethnic groups – Malays, Chinese and Indians – there are Eurasians, ethnic groups from Sarawak and Sabah, and other Malaysians of mixed lineage. The country’s official language is Bahasa Melayu, or Malay. English is used in schools and a majority of the population speak and understand the language to some degree. As with most bilingual countries, Malaysians have their own form of English combined with Malay called ‘Manglish’. The local Chinese speak Mandarin and Cantonese, while the Indians mostly speak Tamil. Local dialects spoken by the country’s ethnic groups include Iban and Kadazan. Malaysia is a predominantly Muslim country, with 60% of the population practising Islam. Buddhists make up 20%, Christians 10% and Hindus 6%. The rest are of various denominations. The best way to experience the country’s multicultural heritage is through its food. Malaysia is known for its great tasting street foods and eateries that are often open 24 hours a day, most notably, the world-famous mamak food stalls. Though Malaysia is a conservative society, the country has its sights set in the future, and many property investors are taking note of this. Especially in southern Peninsular Malaysia, particularly Iskandar Malaysia, once known as the Iskandar Development Region and the South Johor Economic Region. Named after the late Sultan of Johor, Almarhum Sultan Iskandar, the region encompass an area of 2,217 square kilometres. The city of Johor, and towns of Pontian, Senai, Pasir Gudang and Johor Bahru District, the new administrative capital in Nusajaya, are all part of the region. What makes Iskandar Malaysia at the forefront of development is its attention to the quality of life for its residents. Thus, developers focus on building functional and liveable communities that promote social well-being. Additionally, the region also seeks to improve commercial development as well. This includes creative, educational, financial, healthcare,

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HOW TO GET THERE

MALAYSIA

Kuala Lumpur

When visiting Malaysia, it is best to know beforehand what you need to enter the country and how to get there. Below is a breakdown of what you should prepare for – from visa requirements to modes of transport. GETTING THERE Travelling by air, you can either land in Kuala Lumpur or Penang, though entry via Singapore is also possible. There is a departure tax in Malaysia that costs about $13, though this is usually added to your ticket purchase. The national carrier is Malaysia Airlines (MAS) and it has an extensive worldwide network coverage. Airline quality assessments regularly rank MAS highly. There are also low-cost airlines you can such as AirAsia and AirAsiaX. Many international airlines also travel to Malaysia and most often land at Kuala Lumpur International Airport (KLIA). For air travel within the country, AirAsia flights use the LCC terminal which is a 10-kilometre road transfer away from the KLIA terminal. The Sultan Abdul Aziz Shah Airport in Subang near Kuala Lumpur is in charge of handling chartered and turboprop aircraft for regional operators such as Firefly and Berjaya. GETTING AROUND Once in Malaysia, to get around the different regions you can travel by plane using the budget carrier AirAsia, or you can also use the state carrier Malaysia Airlines (or its offshoot, Firefly). Berjaya Air is also an option, though they only fly to and from Kuala Lumpur to Singapore and the resort islands of Pangkor, Redang and Tioman. Prices are quite steep though they are the fastest way to get to these points. For travel to Sabah and Sarawak, your best bet is to use MASWings which operate turboprop services to coastal cities. If you have an international driver licence, you can also take a car on Malaysia’s superb highway network. However, one must use a GPS or map lest you get lost. Be advised that local motorists are sometimes reckless so driving around can be an adventure in itself. Travelling to and around Malaysia can be an adventure. You can play it safe and travel by plane, or you go the intrepid route and hire a car. Whichever way you choose, be safe and be sure you have a well planned itinerary. Getting lost in a foreign country, though it has its charms, can be quite hazardous. IMMIGRATION/ VISA REQUIREMENTS Most nationalities are usually issued a 14-, 30- or 90-day entry permit stamp on their passports, depending on their nationality.

NOT-SO-DIRE STRAITS Located by the historic Strait of Malacca, Penang is one of Malaysia’s most developed states. Its property market is also one of the most vibrant.

logistics and tourism, identified as the pillars of the Comprehensive Development Plan’s focus. Other sites in Malaysia that are worth investing property in are: Melaka and Penang which features fine colonial-era architecture; and Sarawak and Sabah with their breathtaking natural attractions like the world’s oldest rainforest, the Gunung Mulu National Park, and Mount Kinabalu, with the latter two being listed as UNESCO World Heritage Sites. The UN also has Kedah’s Langkawi Islands listed as a World Geopark and is home to one of the oldest rock formations in the world. Malaysia, with its multi-cultural heritage, breathtaking natural attractions, good food and fast rising economic standing, truly is one of the best places to invest in Asia. As a melting pot of cultures, it encapsulates the best of what Asia has to offer – and therein lies its uniqueness. PROPERTYLIFE.ASIA

PROPERTY BASICS Malaysia's prime property market generates a lot of foreign interest. The most popular region is Kuala Lumpur, which is a financial, cultural and tourist hub in South-East Asia.

RENTAL YIELDS

7–8.7% PRICE INDEX

6.6% (for single detached houses in the year to end of Q2 2011) PRICE

$2,182 (per square metre) RENT PER MONTH

$1,356 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

Photo courtesy of Tourism Malaysia

HOW TO BUY

BUYING MALAYSIAN PROPERTY is pretty much straightforward. However, it still pays to understand how it works and what is needed. That said, let’s discuss how to go about buying land in the country. The first step is to hire a real estate lawyer. There will be a lot paperwork and legalese involved, and if you aren’t well-versed in the law, a lawyer will be your best friend every step of the way. It is best to hire someone from the area in case you have to communicate with someone in the local tongue, though any lawyer that specialises in Malaysian real estate laws will suffice. There are two main types of titles in Malaysia: one is freehold (which gives full permanent ownership of the property), and the other is leasehold (which allows the owner to have possession for a limited period). Usually, leaseholds are given for 99 years, though

this can be extended if a certain sum is paid. Furthermore, titles are used for houses, while strata titles are used for apartments and condominiums. For new apartment/condo buildings, the strata title may not be issued for some time until after the building has been completed. When buying property in unfinished condominium projects, one must beware as buyers are not fully protected against default. Fortunately, this problem has been raised by the Malaysian House Buyers’ Association and it points to flaws in the Housing Development (Control & Licensing) Act 2002, and the Strata Titles Act. If you are buying unfinished property from developers, always make sure that the developer has a valid developer’s licence and a valid sales and advertising permit. Once you have decided to purchase property, a Letter of Offer/Acceptance is signed by both the buyer and seller and a 3% deposit is expected. Within

14 days of signing, a Sale and Purchase Agreement is drafted and signed. This agreement must be stamped at the Stamp Office. After the valuation department has examined the property, a Stamp Duty is paid. Transfers must be registered at the Land Office Registry. At this time, the buyer is required to pay another 7% deposit. From the date of signing the Sale and Purchase Agreement, the buyer has a maximum of 3 months to pay the full amount due. Mortgages. When taking out a mortgage, be sure to hire an independent mortgage advisor to guide you and help you understand the steps. Your advisor will also ensure you get the proper information and advice. Banks usually charge an arrangement fee of 2% and repayments are on a capital and interest basis, or interest only. However, interest rates can be fixed, capped or variable, depending on the agreement. Take

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to get financing for new developments, as developers usually have something arranged with certain banks to offer loans to buyers, including foreigners.

Buying Malaysian property is pretty much straightforward, but it still pays to understand how it works and what is needed. documents will be in English, but it is advisable to have all documents reviewed by both your lawyer and real estate advisor. Foreigners are usually only able to get financing in Malaysia; financial institutions outside the country typically do not lend money for purchase of individual residential properties. For those with work permits, the maximum loan given out is usually 60% of the selling price. It’s easy

Limitations. In Malaysia, there are limitations as to what property foreigners could buy. These conditions are: 1 The property value must be over $79,250. In Sarawak, the limit is $110,950. 2 Properties or land located on land that has been designated as ‘Malay Reserve Land’ cannot be bought.

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3 Foreigners are not allowed to buy what is deemed agricultural land. Buying over 5 acres is allowed if used for commercial purposes. 4 There are many developments that have a Bumiputera quota. This means that only Bumiputeras (Malays and indigenous tribes) are allowed to buy a certain percentage of the property. Diplomatic clause. Usually, company rental agreements have a special clause that allow early termination of the lease if the occupant is reassigned somewhere else. This is also known as the ‘diplomatic clause’. To use this clause, you are required to present a cancellation of work permit before deposits are returned. The clause usually takes effect only after 12 months of the lease. When terminating a lease, it is the norm to give 2 months’ written notice, or pay 2 months’ rental in lieu of the notice.

Photo courtesy of Tourism Malaysia

note that the application process for mortgages takes about 2 to 3 weeks and you will be required to present a copy of your credit report. All

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PROFESSIONAL FEES Buying property in Malaysia costs money. But the price of the land is not all you need to shell out for. You would need to consider other fees and duties. Below is a reference guide you can use to calculate your expected total cost. Legal Fees Value of property 1st RM150,000 Next RM850,000 Next RM2,000,000 Next RM2,000,000 Next RM2,000,000 Over RM7,500,000

Rate 1.00% 0.70% 0.60% 0.50% 0.40% >0.40%

(negotiable)

Stamp Duty Value Up to RM100,000 RM100,001-RM500,000 RM500,001 upwards

Rate 1.00% 2.00% 3.00%

PROPERTY GAINS TAX Effective April 2007, capital gains tax is no longer imposed on gains from the sale of Malaysian property.

Photos courtesy of SP Setia

NB: 1 Malaysian ringgit = $0.317

WHERE TO BUY

SACRED CAVES Gombak District's Batu Caves, 13 kilometres north of Kuala Lumpur, are one of the most important Hindu shrines outside India. PEARL ISLAND S P Setia Bhd’s Setia Tri-Angle project in Pearl Island, Sungai Area, Penang (left). This new development comprises 35 shop units, 70 SOHO units and 235 freehold apartments. A villa (right) also in Pearl Island developed by S P Setia.

PROPERTY HUNTING in Malaysia can be a thoroughly rewarding experience. However, before you scour the country for the perfect plot of land, you should have everything laid out. Know the places you plan to visit, and prepare your trip around those. Below are a few suggestions that can help get you started. The first we have featured here is a freehold property located at Mont’ Kiara, Kuala Lumpur. Priced at $316,000, this plush three-bedroom and threebathroom condominium at the i-Zen building at Kiara II is fully furnished and ready for occupancy. The bedrooms feature spacious beds while the kitchen has modern fittings. The title is of the strata type (being a condominium) and has a total floor area of 157.28 square metres. It is a corner unit and faces north, offering sweeping views of the surrounding city. The building itself has its own elevators, reserved parking, its own playground for kids to play in, and a pool. The building also has its own laundry area equipped with several washing machines for your

convenience. This flat is perfect for families looking to have a second home in wonderful Malaysia. Another prime piece of property located in Mont’ Kiara, Ceriaan Kiara in Kuala Lumpur is a four-bedroom and three-bathroom condominium that is freehold. Priced at $306,000, the unit is located at one of the higher floors giving access to majestic views of the city. The total floor area is 169.83 square metres with access to several building amenities and 24-hour security. Other facilities that are available include barbecue pits for outdoor picnics, a cafe, a gymnasium room, a whirlpool bath, a playground for kids, a sauna, a spa, a swimming pool, and tennis courts. This piece of property is perfect for mid to large families with kids, where there’s plenty of room for them to run and play. Up in picturesque Penang, specifically in Tanjung Bungah, we have an unfurnished freehold terraced house for $326,000. A three-storey house with four bedrooms and four bathrooms, the property’s floor area is a spacious 278.71 square metres. A corner unit with balcony and views of the park, the house is in original pristine

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COUNTRIES THAT DON'T REQUIRE A VISA FOR STAY UP TO 30 DAYS: Armenia, Azerbaijan, Bahamas, Barbados, Benin, Bolivia, Botswana, Brunei, Burkina Faso, Cambodia, Cape Verde, Chad, Chile, Comoros, Congo (Democratic Republic of), Costa Rica, Dominica, Ecuador, El Salvador, Estonia, Fiji, Gabon, Gambia, Georgia, Grenada, Guatemala, Guinea, Haiti, Honduras, Hong Kong SAR, Indonesia, Iraq, Jamaica, Kazakhstan, Kenya, Kiribati, Laos, Lesotho, Macao SAR, Macedonia, Madagascar, Malawi, Maldives, Mauritania, Mauritius, Mexico, Moldova, Monaco, Mongolia, Namibia, Nauru, Nicaragua, North Korea, Palestine, Panama, Papua New Guinea, Paraguay, Philippines, Russia, Samoa, Sao Tome & Principe, Senegal, Seychelles, Singapore, Solomon Islands, Somalia, St Kitts and Nevis, Saint Lucia, St Vincent and the Grenadines, Sudan, Suriname, Swaziland, Taiwan, Tajikistan, Togo, Tanzania, Thailand, Togo, Tonga, Trinidad and Tobago, Tuvalu, Uganda, Ukraine, Vanuatu, Uzbekistan, Vatican City, Venezuela, Vietnam, Zambia and Zimbabwe. COUNTRIES THAT DON'T REQUIRE A VISA FOR STAY UP TO 14 DAYS (UNLESS OTHERWISE INDICATED): Ivory Coast, Libya, Macao SAR (Travel Permit/Portugal CI), Sierra Leone, Somalia.. US citizens do not require a visa if the purpose of their visit is social, business or academic. Only those staying for employment need a visa. Additionally, all nationals of ASEAN countries (save for Myanmar) can stay for less than a month without a visa. A visa is required if staying for more than a month. Citizens of Israel need a visa and permission from the Ministry of Home Affairs (MHA). Citizens of Serbia and Montenegro also need a visa but do not require permission from the MHA. It is worth noting that Sarawak has separate visa laws and you will be issued a new visa when visiting there. If you require a visa to enter Malaysia, be sure to mention your intent to visit Sarawak. If you overstay, a $10 fine is imposed for each day over the limit. For more details and up-to-date information, you can visit the website for the Immigration Department of Malaysia or the Malaysian Ministry of Foreign Affairs.

Photo courtesy of Tourism Malaysia

COUNTRIES THAT DON’T REQUIRE A VISA FOR STAY UP TO 90 DAYS: Albania, Algeria, Argentina, Australia, Austria, Bahrain, Belarus, Belgium, BosniaHerzegovina, Brazil, Bulgaria, Canada, Croatia, Cuba, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland, Iran, Ireland, Italy, Japan, Jordan, Kuwait, Kyrgyzstan, Latvia, Lebanon, Liechtenstein, Lithuania, Luxembourg, Morocco, Netherlands, New Zealand, Norway, Oman, Peru, Poland, Portugal, Qatar, Romania, San Marino, Saudi Arabia, Slovakia, Slovenia, South Africa, South Korea, Spain, Sweden, Switzerland, Syria, Tunisia, Turkey, Turkmenistan, United Arab Emirates, United Kingdom, United States, Uruguay and Yemen. POINT OF VIEW The summit of Mount Kinabalu, Borneo’s tallest peak.

condition without any alterations being done. With 24-hour security, the unit is perfect for large families looking for a second home in Penang. Still in Penang, this time in Paya Terubong, we have a spacious and elegant semi-detached house for sale at $316,000 (price negotiable). Featuring six bedrooms and six bathrooms, this

features 24-hour security. Finally, again in Johor Bahru, nestled in Nusajaya Horizon Hills, we have another semi-detached house with four bedrooms and three bathrooms. The price is at $316,000, with a land area of 353 square metres and a living space of 242 square metres. The tenure is freehold in a location

Before you scour the country for the perfect plot of land, you should have everything laid out. piece of prime property is perfect for large families. A freehold tenure property, the house is semi-furnished and ready to move into. It was also recently renovated to give buyers security as to the structure’s integrity. The house is two and a half stories and features air conditioning, a cooker hob/hood, and a water heater for your convenience. We head on now to one of Malaysia’s fastest-growing regions: Johor Bahru. Here we have a five-bedroom and fourbathroom semi-detached house in Taman Gaya. Priced at $316,000, this brand-new cluster house tenure type is freehold. It includes a wet and dry kitchen and is in original condition. A south-facing unit, the property also

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that is just 5 minutes away from Jusco Bukit Indah, 15 minutes away from the second link highway, and 7 minutes to Tesco and Giant. It is also 7 minutes away from the Columbia Hospital. Additionally, it is about 7–10 minutes from Legond Land, Puteri Harbour Waterfront Development, and other new developments. The area is a gated community with 24-hour security. The house is a corner lot and two and a half stories high. An ideal second home for your family. With its strong economic fundamentals and stable property market, Malaysia is one of South-East Asia’s best places to buy land in. As an investment, Malaysian land is one of the best. As a place to call home, Malaysia is divine.

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MONUMENTAL Dawn at Central Java’s Borobudur Temple. The 9th-century Mahayana Buddhist monument is Indonesia’s single most visited tourist attraction.

INDONESIA

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A COUNTRY COMPOSED OF MORE THAN 13,000 ISLANDS SPREAD ALONG SOUTH-EAST ASIA, INDONESIA IS THE WORLD’S LARGEST ARCHIPELAGO. IT IS ALSO HOME TO 230 MILLION PEOPLE, MAKING IT THE WORLD’S FOURTH MOST POPULOUS COUNTRY (AFTER CHINA, INDIA AND THE USA).

Property hunting in the world’s largest archipelago

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NDONESIA WAS ONCE the centre of South-East Asia’s most powerful empires – the Srijivaya and the Majapahit. It also boasts of massive natural resources. As a result, the country has been an important trade region since the 7th century, and its culture is an eclectic mix of Indian, Chinese, Malay and Arabic influences. European powers during the Age Discovery fought one another for the country’s famed Spice Islands and the country’s massive natural resources, which marked the start of three and a half centuries of Dutch colonial rule. After decades of stagnant growth, coup and corruption, Indonesia today experiences a steadily growing economy under Susilo Bambang Yudhoyono. Its economy grew 6.1% in 2010, after 4.6% growth in 2009, despite the global economic crisis.

Jakarta is seldom viewed as a centre for tourism save the city’s old part. But in recent years the government saw the opportunity to develop the city’s reputation as a service and tourism city. There are many new tourism infrastructures, entertainment centres, and world-class hotels and restaurants being built in Jakarta. Most of the visitors attracted to Jakarta are domestic tourists from all over Indonesia, the majority of them from the neighbouring provinces of West Java, Banten, Lampung, and Central Java. As the gateway of Indonesia, Jakarta often serves as the stopover for foreign visitors on their way to popular tourist destinations, such as the Bali and Yogyakarta. Most foreign visitors from the neighbouring ASEAN countries, such as Malaysia and Singapore, visit Jakarta

Indonesia currently has everything an emerging market needs for high economic growth. With high domestic consumption and investment and healthy export revenues, the Indonesian economy grew by 6.6% in 2011. Indonesia also has everything an emerging market needs for high economic growth: a fast-growing labour force, a declining dependency ratio, natural resources and a strategic geographical location. The country, therefore, has the potential to register double-digit growth in the future, catching up with China and India. JAKARTA The Indonesian capital is home to more than 9 million residents, and it is the country’s economic, cultural and political hub. The city is located on the northwest coast of Java, the world’s most populous island. In 2008, the Globalization and World Cities Study Group and Network research listed Jakarta as an Alpha global city.

for shopping purposes, since the city is famous for its cheap but high-quality products. The city is also teeming with mixed-use developments and numerous upscale shopping markets, chief of which are the 640,000-squaremetre Grand Indonesia, and the highend Pacific Place Jakarta and Plaza Indonesia. BALI The island of Bali may be small compared to other Indonesian islands. But what it lacks in size, it makes up for in international prominence and a very lively property market. Although the island suffered greatly after the terrorist attacks of 2002 and 2005, its tourism industry slowly recovered and surpassed its pre–terrorist bombing levels. In fact in 2010, 2.57 million foreigners visited Bali, surpassing the government’s target of 2.0–2.3 million.

HOW TO GET THERE

INDONESIA

Jakarta

Being a large archipelago, air and sea travels are the primary means of transportation to hop from one Indonesian island to another. Sea transport, in particular, is extremely important, with each of the major islands having at least one significant port city. GETTING IN The government of Indonesia requires that foreign passports be valid for 6 months following the date of arrival. Before passing through immigration a disembarkation card needs to be filled out, half of which must be kept and given to the immigration upon leaving the country. Citizens of ASEAN member-states (Brunei, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam) plus Chile, Ecuador, Hong Kong, Macau, Morocco and Peru are allowed to stay in Indonesia for up to 30 days without a valid visa. Nationals of certain countries can apply for a visa on arrival for a stay of up to 30 days by paying $25 at major entry points. For the complete list, visit www. kbrisingapura.com/immigration_for_voa.php Jakarta’s Soekarno-Hatta International Airport is the country’s major international gateway. Located 20 km west of the city proper, many airlines fly to the airport from major cities in Asia, Europe, the Middle East and Australia. Flag carrier Garuda Indonesia (www. garuda-indonesia.com) have scheduled flights to Amsterdam, Bangkok, Beijing, Dubai, Guangzhou, Hong Kong, Jeddah, Kuala Lumpur, Melbourne, Nagoya, Osaka, Perth, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo. Furthermore, Air China, Cathay Pacific, Cebu Pacific, China Southern Airlines, Jetstar Airways, Philippine Airlines, Qantas, Royal Brunei Airlines, Singapore Airlines, Thai Airways International, and Tiger Airlines to the city from their respective hubs. For more information on flights to Jakarta, visit www.jakartaairportonline.com. Malaysian low-cost carrier AirAsia (www.airasia.com/my/en/home.page) also flies regularly from Kuala Lumpur to Jakarta and other smaller Indonesian cities: Bali, Balikpapan, Banda Aceh, Bandung, Makassar, Medan, Padan, Palembang, Pekanbaru, Semarang, Solo, Surabaya and Yogyakarta.

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PROPERTY BASICS Strong domestic demand and robust economy drive Indonesia’s booming peroperty market.

RENTAL YIELDS

10–13% PRICE INDEX

5.1% (annual price change to Q4 2011) PRICE

$1,781 (per square metre) RENT PER MONTH

$1,819 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

Bali also received the Best Island award from US-based Travel + Leisure during the magazine’s ‘World’s Best Awards’ in 2010. According to many polls, the island’s main appeal is its sheer natural beauty – looming volcanoes and terraced rice fields – combined with luxurious resorts and exciting nightlife. A survey conducted by BBC Travel in 2011 ranks Bali as the world’s second best island after Santorini. LOMBOK Similar to its more famous sister, tourism is an important source of income for Lombok. However, the island is also marketed as unspoiled Bali, making it a popular choice for travellers who prefer solitude to glitzy nightlife. The island’s more developed tourism area is on its west coast, in the town of Senggigi, where a large number of hotels and resorts offer

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accommodations that range from budget to upscale. Other tourist destinations include Mount Rinjani, Gili Bidara, Gili Lawang, Narmada Park and Mayura Park and Kuta (distinctly different from Kuta, Bali). The latter is famous for its beautiful, largely deserted, white-sand beaches. For the sporty types, south Lombok surfing is considered one of the world’s best. The northern west coast near Tanjung is where new upmarket hotel and villa developments are located, which will complement the already existing five-star resorts and a large golf course already established there. BINTAN Located 45–50 minutes from Singapore across the South China Sea is the island of Bintan, whose economy, centred on tourism, received a major boost the after Singapore initiated the SIJORI Growth Triangle

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HOW TO BUY

BATAM Like the neighbouring Bintan, Batam’s proximity to Singapore gave it economic advantage, which transformed this largely forested island to a major harbour and industrial zone. The island, with its low labour costs and special government incentives, is also the site of many factories operated by

ISLAND LUXURY Batam may not ring a bell to luxuryproperty hunters, but that’s going to change with the opening of KOP Group’s Montigo Resorts. Located just 20 km off Singapore’s south coast, the development offers villas for just about a tenth of the price of similar properties in Singapore. LAKE OF HOLY MOUNTAIN Located along the shores of Lake Bratan in the mountains near Bedugul in central Bali, the temple of Puna Ulun Danu Bratan is dedicated to the lake and river goddess Dewi Danu.

Singaporean companies. Shipbuilding and electronics manufacturing are its major industries, while resorts and tourist destinations are scattered on the island’s north-western coast. With Indonesia’s economy poised to perform well in the coming years, developers are cashing in on the archipelago’s promising outlook, as evidenced by the scores of developments currently underway in many of its islands. PROPERTYLIFE.ASIA

in the 1980s and signed agreements with the Indonesian and Malaysian governments to invest in Bintan and the neighbouring Batam. Investment plans were outlined with the basic intention of providing leisure space to Singaporeans on the island’s long stretches of white-sand beaches. Today, the most prominent of the island’s properties is the 300-hectare Bintan Resorts. Plenty of other developments are in the works as well, ensuring that the 2,402-squarekilometre island will not run out of prime properties.

INDONESIA BOASTS of a booming real estate market mainly due to its growing economy and strong domestic demand. Indeed, there is an increasing demand for properties, especially for quality units in residential complexes. This is particularly true in the capital Jakarta and the resort island of Bali. Although foreigners technically are not allowed to own freehold land, there are legal, commonly used ways to get around this. Foreigners can also own condominiums as long as they don’t own the land on which the structure stands. As with all foreign property purchases, having the service of a local lawyer or solicitor is very important when buying property in Indonesia. The Indonesian government issued Law 5 of 1960 on the ‘Basic Regulation of Land in Indonesia’ (‘UU 5/1960’), which came into force on 24 September 1960. It recognises and regulates several rights over land and houses, including the Right of Ownership (Hak Milik), Right to Cultivate (Hak Guna Usaha), Right of Building (Hak Guna Bangunan), Right of Use (Hak Pakai) and Right of Building Lease (Hak Sewa Atas Bangunan).

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The most common option for foreigners is to use a local name-holder for the property, with whom the foreign buyer enters into contracts. These contracts, which should be checked and double-checked, give the foreign buyer the right to use the property. If using a local nominee, the following documents should be signed with your nominee prior to the purchase:

Photos courtesy Banyan Tree Residences

TREASURE ISLAND Situated atop a secluded bay in the north-western tip of Bintan Island is Banyan Tree Residences. Managed by Banyan Tree Hotel, this property is a short ferry trip away from Singapore and offers an attractive returns on investment.

The most common option for foreigners is to use a local name-holder for the property, with whom the foreign buyer enters into contracts. 1 Mortgage Agreement. Cost: 1% mortgage value for Notary; 1% of total mortgage value for BPN land affairs office 2 Power of Attorney. This grants exclusive rights to mortgager to release the mortgage. 3 Financial Loan Agreement. 4 Power of Attorney for all rights to the land. 5 Statement Letter. This outlines the proof of payment for the property. 6 Statement of Indemnity (for nominee). 7 Power of Attorney for IMB. Authority for Building Permit. 8 Statement Letter. No second mortgage. 9 Lease Agreement. This grants the purchaser 25 yearsâ&#x20AC;&#x2122; lease plus an automatic extension of 25 years

(added security). Cost: 1% of lease value. All transactions of land rights must be via deeds executed before a land deed official at the local office of the Pejabat Pembuat Akta Tanah, where the land is located, and must be registered in the regional office of the National Land Agency. The PPATs are privately managed offices authorised by the National Land Agency to handle matters on land acquisition. Although there is no regulation regarding language, it is recommended having contracts and agreements drawn up and executed in Bahasa Indonesia (or two languages) to prevent potential arguments that the local partner did not fully understand the content. When a property is sold, there is tax to be paid by both the selling and

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the buying party, which is 5% over the amount on the sales contract. Project developers usually include all in their pricing schemes, but when negotiating, ask how the sales tax will be handled, as many foreigners get an unpleasant surprise when they hear of the extra tax. There are four documents needed: The first describes that the foreigner gives money to the Indonesian nameholder to buy land and property and the Indonesian name-holder gives this land and property to the foreigner out of his or her free will. The document also describes that the name-holder gives the foreigner permission to sell, to rent out or rebuild the house or property. It states that the agreement passes automatically to the heirs of both the foreign buyer and the name-holder, and that all of the property costs (electricity, water and taxes) have to be paid by the foreign buyer. In the second document, the selling of the property is granted to the foreigner and that the name-holder gives his or her explicit permission to do so.

In the third document, the name-holder gives the foreign buyer permission to rent out the house or property. As laws can change, there might come a time when foreigners are allowed to own freehold land in Indonesia. Hence, a fourth document must be drafted, which commits the Indonesian name-holder to allow the foreign buyer become the eventual, full-pledged owner of the property. The document must also state that the name-holder agrees to extend the lease to 50 years (with an option for another term) should the law change is not favourable to the foreign buyer. However, a Presidential Decree issued in June 1996 allows foreigners domiciled in Indonesia to own one residential property. To meet the criteria for ownership, a foreigner must be ‘beneficial to national development’ and must be either: (1) an Indonesian resident in possession of a permanent resident permit, or (2) a non-resident in possession of appropriate visit and immigration stamps in his or her passport.

WHERE TO BUY

INDONESIA IS IN the middle of a construction boom at the moment, with condominiums, offices, malls, mixeduse complexes and integrated developments springing up all over the capital Jakarta. At the same time, projects are currently underway or on the drawing board in some of the archipelago’s islands, such as Bali, Bintan, Batam and Lombok. International credit rating firm Fitch also raised Indonesia’s sovereign rating for long-term foreign and local currency debts from BBB- to BB+ 14 years after the country lost its rating following the 1997 Asian Financial Crisis. The current rating indicates a low risk for investment. In addition, according to property consulting firm Jones Lang LaSalle, Indonesia, especially Jakarta, will experience a strong growth in the property market in 2012, which is attributed to the country’s ‘strong economic growth, solid fundamentals, improved investor sentiment and low interest rates’.

JAKARTA Jakarta’s residential property market continues to be very reasonably priced. Residential properties in the Indonesian capital are also considered good investment, as they earn good rental yields, from 10% to 13% per year. Because of the limited supply of condominiums in the city, the overall absorption rate of high-end units was very high at 88.3%. Additionally, buyers with strong purchasing power are in a good position, especially with many high-end developments currently on offer. One example is Ciputra Property’s $360 million mixed-use development dubbed Ciputra World Jakarta 2. Comprising two apartment towers, one office tower and a hotel, the first stage of the construction has started with two apartment towers and will be due for completion by the end of 2014. The property will be managed by Frasers Hospitality. BALI The island is Indonesia’s most famous tourist destination. Bali is also the

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Photo courtesy of Arsikon

Photo courtesy of Ayana Residences Bali

country’s hottest piece of real estate. A number of projects are currently underway, most notable of which is the luxurious, WATG -designed Ayana Residences Bali. Lauded as the island’s most exclusive residential development, Ayana Residences Bali is nestled on a 6.5-hectare site adjacent to the award-winning Ayana Resort and Spa Bali. Scheduled for completion in 2014, this highly anticipated gated community will consist of a limited number of luxury apartments and villas that offer the largest living space of any luxury residence in Bali. The units include three-bedroom 699-square-metre penthouse suites with sweeping ocean views, private rooftop swimming pools and

entertainment areas, as well as twobedroom, 352-square-metre suites, and one-bedroom, 131-square-metre suites. BINTAN This island’s proximity to Singapore gives it an advantage to tap into the more than 9 million leisure and business visitors who come to the city-state annually, and that does not include plenty of affluent Singaporeans willing to part with their cash for affordable yet quality developments elsewhere. Several developments are incorporating condo units that specifically target foreign buyers. One of these is Genting Group’s ‘Treasure Bay’ development, which is set to transform the island into an IT and medical tourism

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hub over the next eight years. Built on a 342-hectare site on the Lagoi area, the $1.5 billion development includes 745 luxury villas with boat berthing facilities, marinas and a range of hillside condominiums. A casino for the general public, a hotel, shops and a wellness centre are also in the works. Situated atop a secluded bay in the north-western tip of Bintan Island, the Banyan Tree Residences Bintan features stylish villas with open-air jet pool, tasteful Indonesian decor and inspiring views of the South China Sea. These investment properties, which are managed by the Banyan Tree Hotel, offer owners an incredible escape just a short speedboat trip from Singapore and attractive returns on investment.

INDONESIA J U NE –JULY 2 0 12

Photos courtesy of PT Ciputra Property

PROPERTY BOOM (Clockwise) Many developments are currently under construction all over Indonesia. In Batam Island, Arsikon’s Coastarina offers built-up units that range from $95,000 to $207,000. In Jakarta, Ciputra World Jakarta 2’s two apartment towers are due for completion by the end of 2014. In Bali, WATG-designed Ayana Residences is a highly anticipated gated community adjacent to the award-winning Ayana Resort and Spa Bali.

One of the most eagerly awaited developments is Singapore-based KOP Group’s Montigo Resorts, which will sit on a 12-hectare site at Nongsa Beach on the island’s exclusive north-eastern coast. The $79 million development offers 88 luxury villas and 45 residences for just about one-tenth of the price of similar properties in Singapore. At around $115 per square foot, which, compared with over $1,589 per square foot at Sentosa Cove, properties here are a bargain. For about $357,000, buyers can get a 3,000-square-foot, three-storey villa with two bedrooms, or a threebedroom residence with a built-up area of 6,500 square feet on land ranging from 10,000 to 20,000 square feet.

According to Jones Lang LaSalle, Indonesia especially Jakarta will experience a strong growth in the property market in 2012. BATAM Amere 20 kilometres off Singapore’s south coast, Batam Island is increasingly becoming a magnet for Indonesians from the surrounding Riau Islands Province, Surabaya, Jakarta, and even as far as Sumatra and Kalimantan. Beginning in the 1970s, the island transformed into a largely forested area into an industrial and manufacturing hub.

Another eagerly anticipated project is Arsikon’s Coastarina – a 150-hectare, $1.589 billion development next to Batam’s main ferry point. Built-up units at the outer perimeter currently range from $95,000 to $207,000, and plots closer to the sea range from $151,000 to $477,000. Besides the residential properties, Arsikon will also be building a 3-kilometre seaside walk.

The country is also connected to Singapore via its seaport in Batam and Bintan. Due to the high volume of passengers travelling from the city-state to the islands, ferry services operate 24 hours. From Batam one can hop into a one of PELNI’s ferries to travel to the ports of Belawan in Medan, Sumatra, and to Tanjung Priok in Jakarta. However, trips are not as frequent as those serving the Singapore–Batam route. For more information, visit www.pelni.co.id. GETTING AROUND Garuda Indonesia flies regularly to airports in Banda Aceh, Batam, Denpasar/Bali, Manado, Padang, Palembang, Pontianak, Surabaya and Yogyakarta, among others. In addition, Indonesia AirAsia (a subsidiary of AirAsia) also maintains scheduled flights from the capital to Denpasar/Bali, Yogyakarta and Semarang. Other carriers that operate within Indonesia include Airfast Indonesia, Aviastar, Batavia Air, Express Air, Kal Star Aviation, Lion Air, Merpati Nusantara Airlines, Riau Airlines, Sriwijaya Air, Trigana Air Service and Wings Air. To make the most of Indonesia’s cities in the shortest possible time, renting a car is the way to go. It is also cheap (rates hover around $100 per day) and fuel costs remain relatively low. To drive a car yourself, an International Driver Permit is required in addition to your home country– issued driver’s licence. However, intercity driving is recommended only within Java. Another option is to hire a car and driver, which can save a lot of headache and money. Average price is $54 per day (petrol may or may not be included).

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AMERICA Coming to

LIKE THE EPONYMOUS QUILT, AMERICA IS MULTIHUED, DIVERSE AND NEVER BORING. IN ITS 50 STATES LIE ICONIC CITIES AND AN ASTOUNDING COLLECTION OF NATURAL AND CULTURAL WONDERS.

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USA J U NE –JULY 2 0 12

HOW TO GET THERE

USA

Photo courtesy of Deviantart/hairjay

Washington, D.C.

MERICAN WRITER Gertrude Stein once said that there is more space in the USA where nobody is than where anybody is. For newly arrived immigrants and jetlagged travellers alike, the country’s sheer size is quite intimidating. It is a land of dazzling cities, empty alpine lakes, rolling vineyards, towering peaks, barren deserts, expansive plains, dramatic coastline and endless motorways (more than 6.4 million kilometres within its borders). The USA, like the eponymous American quilt, is multihued, diverse and never boring. In its 50 states lie an astounding collection of natural and cultural wonders. It is the birthplace

Travel to the USA is easy, granted the foreign national has a valid travel document and visitor’s visa. Generally anyone who wishes to enter the USA can obtain a non-immigrant visa for temporary stay for business (B-1) or for pleasure or medical treatment (B-2). For more information on types of visas to travel to the USA, visit travel.state.gov/ visa/visa_1750.html. In addition, nationals of 36 countries can stay for up to 90 days in the USA through the State Department’s Visa Waiver Program (VWP). This was established to eliminate barriers to travel to stimulate the tourism industry. For more information and a complete list of countries included in VWP, visit travel.state.gov/visa/temp/without/ without_1990.html A foreign national who has secured a B-1 or B-2 visa or staying in the USA through the VWP can purchase a vacation home in the country. However, doing so does not automatically allow them to live in the USA on a longer term. For investment that will result in obtaining a green card, then an E-2 or EB-5 visa is the way to go. For more information, go to travel.state.gov/visa/ temp/types/types_1273.html.

THE CITY THAT NEVER SLEEPS Often called ‘The Crossroads of the World’, New York City’s Time Square has the world’s busiest pedestrian intersections and attracts more than 39 million visitors every year. Real estate is also a major force in the city’s economy. In 2006, it is estimated that the total value of all New York City property was $802.4 billion.

of the iconic cities of New York, Los Angeles and Chicago. At 9.83 million square kilometres and with over 312 million people, the USA is the third or fourth largest country by area and the third largest by population. An ethnically diverse and multicultural nation, the country is the product of large-scale immigration over the last century. Its economy is also the world’s largest: GDP of $15.1 trillion in 2011. The US real estate market is as varied and expansive as the country itself. Although the age-old adage comes off a bit trite, when it comes to property investment, the country offers something for everyone.

NEW ENGLAND This north-eastern US region is renowned for its album of images: white-clapboard churches, fall foliage, leafy college towns and granite mountains. But there’s more to this region than postcard-perfect views. It is also a major centre of education (four of the eight Ivy League schools are located here), insurance (Hartford, Connecticut, is considered the world’s insurance capital), high technology and medicine. In 2006, the financial magazine Money released the results of its ‘Best Places to Live’ survey and ranked several New England towns and cities in the top 100. Fairfield, Connecticut, ranked 9th; Stamford, 46th; Portland,

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PROPERTY BASICS The country’s economic state alarms investors. However, if entered into carefully, investment in the USA – most notably in the state of Florida – can be profitable. Falling prices created by the weak dollar and housing market crash mean that foreign investors with a strong currency can find great bargains and the thriving tourist industry makes for a reliably consistent rental market.

RENTAL YIELDS

4.69% PRICE INDEX

–3.7% (for single detached houses in the year to end of Q4 2011) PRICE

$13,428 (per square metre) RENT PER MONTH

$6,304 (120-square-metre property) SOURCES: Global Property Guide, Knight Frank

Maine, 89th; Newton, Massachusetts, 22nd; Nashua, New Hampshire, 87th; Cranston, Rhode Island, 78th; and Warwick, 83rd. FLORIDA Walt Disney once said that Florida is a place that captures the imagination. Spanish explorers saw manatees and imagined they were mermaids; Ponce de León saw a crystal-clear spring and imagined it was a fountain of youth; and more recently developers saw wetlands and swamps and sold them as paradise. As expected, tourism makes up the largest sector of the Sunshine State’s economy. Warm weather and hundreds of miles of beaches attract about 60 million domestic and international visitors every year. The state also houses the world’s largest vacation resort, Walt Disney World Resort, consisting of four theme parks and more than 20 hotels. Other theme parks include Universal Orlando Resort, Busch Gardens and SeaWorld. Many beach towns are also popular tourist destinations, particularly in the winter months.

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HAWAII This string of islands in the Pacific Ocean, over 2,000 miles from any continent, takes a little work to get to. So you may wonder: will that be time and money well spent? Hawaii, as tourist agents and Hollywood constantly remind us, is paradise. Push past the hype and you’ll find hiking sculpted cliffs or diving coral-reef cities in the morning and drinking mai tais to slack-key guitar at sunset. Its diverse natural scenery, warm tropical climate, oceanic surrounding and active volcanoes make it a popular destination for tourists, surfers, biologists and volcanologists alike. CALIFORNIA The California Gold Rush in the mid-19th century led to the state’s dramatic social, demographic and economic boom (if the state were a country, it will be the world’s 8th largest in terms of GDP). Key developments in the last century were punctuated by the emergence of Los Angeles as the centre of the American entertainment

USA J U NE –JULY 2 0 12

SUNSHINE STATE Sunny Florida is very popular among foreign property buyers. According to Inman News, six of the top ten US markets in terms of share of foreign buyers are in the Florida Panhandle.

RAINY AND TECHY Portland, Oregon, one of the Pacific Northwest’s major cities. This rainlashed region is home to a vibrant dot-com economy, grunge music and, of course, Starbucks.

industry, and the development of the technology and information sectors, spearheaded by Silicon Valley, towards the end of the 20th century. In fact, you might not get a word in edgewise when it comes to technology, as Californians are extremely proud of their achievements (ever heard of PCs, iPads, Google and the internet?). But the state is not entirely about technological innovation, as its agricultural industry is as prosperous: it produces 90% of American wines and one-third of the country’s food. PACIFIC NORTHWEST Located on the country’s rain-lashed Pacific Rim and characterised by its vibrant, dot-com–fuelled economy, the Pacific Northwest region has greatly

GETTING IN The major international air passenger gateways to the USA are the following: JFK in New York City, Los Angeles International, Newark Liberty International in New Jersey, San Francisco International and O’Hare International in Chicago. New York City New York City’s airport system makes up the largest airport system in the USA. In 2010, the city’s three major airports handled just under 104 million passengers. Airlines from as far as Hong Kong, Shanghai, Beijing, Taipei and Singapore have regular scheduled flights to either JFK or Newark, some of which (such as Singapore Airlines’ Singapore–Newark and Cathay Pacific’s Hong Kong–JFK routes) are among the world’s longest non-stop flights. Other Asian carriers that have scheduled flights to New York’s airports include Air China, China Airlines and China Eastern Airlines. In addition, United Airlines have regular scheduled flights to Beijing, Hong Kong and Shanghai.

California The Golden state’s two major airports are well connected to cities in the Asia-Pacific. Asian carriers that fly regularly to Los Angeles include Air China, Cathay Pacific, China Airlines, China Eastern Airlines, China Southern Airlines, Malaysia Airlines, Philippine Airlines, Singapore Airlines and Thai Airways International. In addition, American Airlines and United Airlines have regular flights to Shanghai. San Francisco is also a major jump-off point for Asians travelling to the USA. Air China, All Nippon Airways, Asiana Airlines, Cathay Pacific, China Airlines, EVA Air, Japan Airlines, Korean Air, Philippine Airlines and Singapore Airlines have regular scheduled flights from their respective Asian hubs to the city. In addition, Delta and United Airlines fly regularly to Tokyo, Beijing, Hong Kong, Osaka, Seoul and Shanghai. GETTING AROUND The country’s domestic air system is extensive and reliable. Hence, air transportation is the preferred means of travel, especially for trips over 480 km. Hub airports include all international gateways plus a number of other large cities. Smaller cities have a local airport, but travellers usually have to travel via a hub airport to reach them. For more information on booking flights within the USA, go to cheapflights.com. Travellers can also self-drive between cities closer together (such as Boston– New York, New York–Washington D.C., and Philadelphia–Washington D.C.). Car rental is also very competitive. Good independent agencies are listed by Car Rental Express (www.carrentalexpress. com), which rates and compares independent agencies in US cities; it’s particularly useful for searching out cheaper long-term rentals.

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USA J UNE–JU LY 2 012

SUMMER AND FALL America’s north-eastern New England region (left) is renowned for its album of images: white-clapboard churches, fall foliage and leafy college towns. Hawaii’s Waikiki Beach, on the other hand, is one of the country’s most famous stretch of sand.

influenced modern pop culture. You don’t have to be a guitar-wielding caffeine junkie to have heard of Starbucks or Pearl Jam, while other ingenious north-western innovations such as Microsoft and Amazon.com have hijacked the technological superhighways everywhere from Queensland to Quito. But the region is not all computer gadgetry and grande non-fat lattes. Washington and Oregon are as spectacular visually as they are economically vibrant. It’s no wonder that hard-working Seattleites and Portlanders often switch off their laptops a couple of hours early and head hedonistically to the great outdoors. NEW YORK CITY Home to the United Nations Headquarters, New York City is the world’s centre for international diplomacy. In fact, more than 100 consulates and consul-general offices operate in the city, not counting Permanent Missions to the UN, further stressing the city’s important role in international relations. But the city is perhaps best known as America’s economic powerhouse. It is home to the New York Stock Market, the world’s largest in terms of market capitalisation ($13.39 trillion as of December 2010); the world’s top financial centre; and the world’s second richest metropolitan area according to PricewaterhouseCoopers, with a GDP of $1.406 trillion. Real estate, too, plays a major force in the city’s economy. As of 2006, the total value of all New York City property is $802.4 billion.

HOW TO BUY

THE US REAL ESTATE market is as varied and expansive as the country itself. And although this might sound clichéd, there are many different opportunities available for every property buyer. The USA does not place any restrictions on non-US citizens buying and owning real estate in the country. The market has also seen plenty of purchases by foreign buyers due to the favourable exchange rate between the US dollar and other currencies, such as the yen and the euro. Buying real estate in the USA is also quite safe and secure, as all transactions are subject to US contract law and are handled by neutral thirdparty escrow companies who oversee all aspects of the transaction between seller and buyer. As a general rule, people who are snatching up investment property in the USA fall under any of these broad categories: investors buying commercial real estate holdings, people buying properties for their second homes, and people

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putting their money into vacation-type properties. Seek help. A person interested in purchasing a US property needs to give serious consideration to engaging the assistance of a qualified and licensed broker. However, the buyer needs to keep in mind that the agent or realtor works for the seller, as he or she is legally obliged to protect and further the interests of the latter. In addition to engaging the assistance of a qualified broker or real estate service, it is also important to note that US properties vary significantly from location to location. As a consequence, a person looking to buy property in the USA will want to make very certain that he or she is specifically knowledgeable about the real estate market in a particular region. Money first. A person interested in buying a US property would do well by first obtaining financing commitment from a bona fide lender before doing a property

ÂŠ SXC/Anthony Thomas and DJ Slane

In recent years, plenty of foreign buyers have snatched up US properties due to the favourable exchange rate. search. In recent years, US lenders will extend mortgage facilities to creditworthy people interested in purchasing real estate well in advance. This way, the buyer will be in a better position to more efficiently and effectively procure real property in the least amount of time. Check every nook and cranny. When making a purchase, the general practice in most states is that the purchaser accepts the property in its actual condition at the time of the contract for sale is executed and cannot complain about significant defects after the deal is closed. Hence, the buyer must make certain that the property is closely examined for defects before a contract for sale is finalised. This is called an

inspection report. Apart from ascertaining the structural integrity of the property, an inspection should also be carried out for termite infestation and radon. Buyers cannot expect the seller to make all the repairs demanded; hence, it is important that this is included in the sales agreement before you sign. Put it on paper. Once a particular piece of property has been identified, a contract is then drafted. A piece of real estate cannot be sold in the absence of a written contract. Often, when residential real estate is sold, a standard form of contract is utilised to memorialise and effect the sale. When the contract is signed by the parties, a closing date is established,

which is the date on which all of the duties and obligations under the contract need to be satisfied. Generally, a closing date is set approximately 30 days from the signing of the contract for sale. However, there is no hard and fast rule pertaining to when the closing is to be held. The closing date is established between the parties to the real estate sales contract. One of the items that a buyer should ascertain after the contract is signed and before the closing date is title insurance. This will protect the buyer should a situation arise in which the title to the underlying real estate ends up being clouded. A clouded title is one in which another person or entity ends up having an interest in real estate that may not have been found or properly disclosed. Costs and taxes. The entire processâ&#x20AC;&#x2122; cost will vary depending on a number of factors. A useful rule is to allow between 3% and 5% of the cost of the property. Typically the costs required on closing down an agreement are the down payment, fees

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USA J UNE–JU LY 2 012

WHERE TO BUY

ALTHOUGH THE US property market has definitely seen better days, observers choose to look at the brighter side. Many argue that now could be the time to buy. For one thing, changes in house prices have not been uniform across the board: some states, including Washington, Oregon, North Carolina and parts of Florida, are all still on an upward track. FLORIDA The Sunshine state’s best buys are waterfront homes or high-quality developments underwritten by bigname developers, says Engel & Völkers Florida. Over 50 million people visit Orlando and central Florida every year, attracted to the city’s many tourist attractions and its warm climate. It is thus not

Photo courtesy of Michael Saunders & Company

involved in setting up the loan, inspection fees, mortgage insurance, title insurance and stamp duty. In most jurisdictions (but not all), local units of government assess property taxes on real estate. A person buying a US property needs to understand that he or she is likely to be responsible for paying a pro rata share of taxes. Often, the taxes will be due to be paid at the time of closing to avoid any problems between the buyer and seller in the future. Taxes in the USA will vary depending on where the buyer lives and his or her residency status. In general, income and capital gains taxes in the USA are fairly low, but inheritance tax is a different matter altogether and needs good planning. The buyer must seek the assistance of an accountant to guide him or her through the tax system.

SUNNY RETREAT This house located along Boundary Blvd., Rotonda West, Florida, is for sale for $319,000. The property boasts of five bedrooms, four bathrooms and a swimming pool. Located in south-western Florida with easy access to Fort Myers and Sarasota, you will find six golf courses and worldclass fishing with a 10-mile radius.Contact Michael Saunders & Company at +1 941 380 0153 and housestory@aol.com for more details.

surprising that the city has a very healthy rental market driven by the tourism industry and is the area most likely to present the best returns. The Miami area is also starting to recover from the property slump, thanks to steady flow of affluent Latin Americans snatching up properties in the city and its suburbs. As expected,

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beachfront properties are the city’s bread and butter. One example is a $260,000, two-bedroom apartment at Mystic Pointe, a private community near the cosmopolitan Aventura Mall and the white sandy beaches of Sunny Isles. The community boasts of an oversized pool deck, tennis courts and amenities expected when living in the best of South Florida lifestyle. CALIFORNIA America’s most populated state may be less affected by the sub-prime fiasco, but it hasn’t escaped the crisis unscathed. However, working for the Golden State’s favour are its many beachfront locations, Mediterranean climate and social capital. Speaking of Mediterranean climate, the state’s Wine Country offers of plenty investment opportunities. One of which is $499,000 four-bedroom house in the capital Santa Rosa. Situated near Annadel State Park, the property has gourmet kitchen, adjacent family room with fireplace, and landscaped backyard with concrete patio, arbour and koi pond. Southern California, too, is getting plenty of attention, thanks to steady flow of newcomers and jobs, and for being less expensive than its glitzy northern neighbour Los Angeles. In fact, the city is a popular choice for many Hollywood executives and California business gurus looking for a quieter life. Although the city does not offer bargain basement deals as in Florida, buyers can pick up a small house in North Park or University Heights, not far from San Diego’s revamped downtown Gas Lamp Quarter, for about $390,000. Investors might also want to check out Coronado Cays. A waterside home with a place right outside your front door to park your boat starts at $117,500. NEW ENGLAND America’s north-eastern corner is showing signs of recovery. The region, known for its leafy college towns, has

Photos courtesy of William Raveis Real Estate, Mortgage & Insurance

benefited from recent disasters – the first investor spike arriving when the dot-com bubble burst in 2000, followed by a flurry of New Yorkers seeking a low-key getaway after September 11. Home to two of the world’s most prominent institutions for higher learning – Harvard University and Massachusetts Institute of Technology – Cambridge features interesting properties. An example is a two-bedroom, $479,000 condominium unit located along Dana Street. The 1910 brick building is nestled between Harvard and Central Squares, and is adjacent to shopping areas and restaurants. The region’s snow-capped mountains and winter resorts also speak for themselves. But compared to sky-high price tags in Colorado, buyers are getting a lot more for their money. A $469,000, four-bedroom townhouse in Killington, Vermont, is one good example. HAWAII The nation’s smallest state is the second largest in terms of vacation home

market. Although the Aloha state did not experience catastrophic crash in the market seen in the mainland, its property market is heating up for foreclosed and bank-owned properties, which are proving to be good deals. 2012 will also be a good year to buy properties, especially in the Big Island, as interest rates are quite low. A three-bedroom, $499,900 condominium unit nestled in Waikoloa Village in the Big Island has spectacular views of Mauna Kea and the Pacific Ocean. The property, which is nestled along a private coconut grove, comes fully furnished and owners will enjoy exclusive membership to the Hali’i Ocean Club. PACIFIC NORTHWEST The country’s rain-soaked northwestern corner boasts not just of skinny lattes and grunge music, but also some of America’s most admired companies, such as Microsoft, Costco and Nordstrom. Sammamish, one of Seattle’s Eastside suburbs, in particular has been noted as the 15th best place to live in the USA by CNN Money.

NEW ENGLAND CHARM This restored Victorian house in Hartford, Connecticut, is available for $329,900. Located at the city’s West End District, this five-bedroom property boasts of gleaming hardwood floors and updated baths, and is a stone’s throw away from Elizabeth Park, the University of Connecticut School of Law and Hartford Golf Course. For more information on this property, contact William Raveis Real Estate, Mortgage & Insurance at 1-888-699-8876 or contact@ raveis.com.

Hence, the city’s property market offers some good buys, such as a $499,000, four-bedroom, single-family home in a secluded wooded area. NEW YORK CITY If the hustle and bustle of a big city is your thing, then a New York City apartment is for you. Although the Big Apple is known for its pricey property market (think Park Avenue), there are plenty of buying opportunities for mid-range clients. A stone’s throw away from Central Park is a pin-drop-quiet apartment along East 63rd Street. This $339,000 property boasts of upgraded kitchen and bathroom, hardwood floors and custom window treatments.

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Countryside Charm

WELL-HEELED PROPERTY BUYERS WANT THAT MUCH SOUGHT-AFTER PIECE OF REAL ESTATE IN THE MOST EXCITING PART OF THE CITY. BUT AT THE END OF THE DAY, EVERYBODY LONGS FOR A QUIET CORNER. HERE’S A LIST OF IDYLLIC PROPERTIES THAT OFFER RESPITE, RELAXATION AND A MUCH-NEEDED SPACE AWAY FROM IT ALL.

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LOCATION Tagaytay City, Philippines. UNIT SIZES 41–83 square metres PRICE $92,400–$392,800 WEBSITE www.alveoland.com.ph/ Kasa-luntian.php

Kasa Luntian

itting on the slopes of Tagaytay is Philippine-based developer Alveo Land Corp.’s first incursion into leisure development. Dubbed Kasa Luntian (literally ‘green house’), this 3.8-hectare, $35 million low-density condominium project is intent on preserving the area’s green landscape Tagaytay is famous for. According to Jennylle Tupaz, Alveo Land’s head of project development, Kasa Luntian’s first phase will offer a cluster of six low-rise condominium buildings designed with distinctly Filipino architecture well-suited to Tagaytay’s elevated setting. The development’s studio, onebedroom and two-bedroom units are approximately 41, 57 and 85 square metres in size, respectively. But what will be unique to the prop-

erty is its themed pocket gardens featuring landscapes and thick foliage to highlight the property’s green ambience. As a matter of fact, 85% of the project will comprise of green space. ‘Since Kasa Luntian is poised to blend and at the same time highlight the prominent characteristics of Tagaytay, it will dedicate 0.8 hectare of its property for a strip of wellness spots, unique dining concepts, organic cafés, and other establishments,’ Tupaz says. The property is also conveniently located about an hour drive from the capital Manila and few minutes away from Tagaytay City’s recreational, tourist and leisure spots, chief of which is the famed view of Taal Lake and Volcano.

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LOCATION Chiang Mai, Thailand UNIT SIZES 281.6–467.2 square metres PRICE $169,668–$352,303 WEBSITE www.jirunggroup.com/ residences/en

JIRUNG RESIDENCES

ucked away in the pastoral region of Mae Rim, Chiang Mai, Jirung Residences is the first holistic health residences in Thailand. A radiant retreat that offers supreme comfort combined with the best possible location based on feng shui theory, Jirung Residences is awash in fresh air and natural resources. The development has a total area of 15 rai (about 24,000 square metres) divided into 53 plots of land, with land sizes from 70.4 square wah to 116.8 square wah (281.6 to 467.2 square meters). Three styles are available: from the three bedroom and three bathroom with maid room, with swimming pool Maneenaka, the two bedroom and two bathroom with maid room Dara Lai,

to the two bedroom and two bathroom Hathairadsamee. Recreational activities and amenities abound in Jirung Residences that will appeal to health lovers, such as a spa, yoga sessions, emotion detoxification exercises, meditations and more. Homeowners automatically become privileged members good for 10 years of the Jirung Health Village, a 50 rai world-class holistic health resort. Luenchay Vongvanij, president of Good 4 U Co. Ltd. adds, ‘Jirung Residences is the best answer for your health, your emotion and your mind. It will be the best place to accommodate Physical Health, Emotion Health, Mental Health, Spiritual Health and Social Health.’

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LOCATION Sydney, NSW, Australia PRICE Starts from $499,000 WEBSITE www.littlebaycove.com.au

LITTLE BAY COVE

ydney’s new eastern suburb’s beachside community, Little Bay Cove, is surrounded by magnificent cerulean waters and lush, verdant golf courses. The community has, for several years now, been the centre of a residential transformation and has been pegged as one of Sydney’s suburbs to watch by property commentators. An oceanside retreat from the hectic pace of city living, buyers have already snapped up 94% of the community’s first release, Solis – a development that consists of 45 apartments designed by Fox Johnston Architects. Only a handful of one-bedroom, and one-bedroom-plus-study apartments remain, with prices starting from $499,000. The next release of courtyard homes will soon be launched

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to keep up with rising demand. Charter Hall and TA Global, the developers behind Little Bay Cove, are preparing to announce the launch of Emba, the second release within the community. Nestled amongst quiet tree-lined streets between the Urban Lounge Park and Paleo Lake, Emba will be comprised of just a limited release of 33 three- and four-bedroom homes. Little Bay Cove is located at the southern end of Sydney’s eastern suburbs coastline, and is just 14 kilometres from the CBD. The community will feature two parks, a central lake ringed with walking trails, and will have public connections into and through the site to the nearby Prince Henry community.

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LOCATION Mont’ Kiara, Kuala Lumpur, Malaysia UNIT SIZES 82–437.75 square metres PRICE Starts from $379,300 WEBSITE: www.icon-residence. com.my

ICON RESIDENCES MONT’ KIARA

igh-altitude bungalow would best describe Mah Sing Group’s Icon Residences Mont’ Kiara. Located at the affluent Mont’ Kiara township northwest of Kuala Lumpur’s central business district, this property offers a modern architecture that emphasises spatial continuity: horizontal and vertical elements weave into living sanctuaries that marry the structure’s architecture and its surrounding environment, and dispel the distinction between indoors and outdoors. Gardens and water features are also used prominently to recreate

the atmosphere of a Mediterranean resort. Icon Residences’ freehold residential tower blocks comprise only 260 units and offer more than 200 types of layout designs, which makes practically every unit unique. Every apartment is a corner unit, which gives residents a feeling of exclusiveness and privacy – quite a luxury in today’s hectic world. Icon Residences Mont’ Kiara was awarded Best High-Rise Architecture (for Malaysia and Asia-Pacific) at the 2012 International Property Awards Asia-Pacific.

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CONVERSATION J UNE–JU LY 2 012

The Asia factor Tim Murphy, CEO and founder of IP Global Ltd, recently talked with Property Life and discussed why Asia is the place to be and the place to invest over the next 5–10 years.

HOW HAS YOUR BACKGROUND IN BANKING AND INSURANCE INFLUENCED YOUR BUSINESS STRATEGY? It taught me how to manage risk and to understand cash flow. In IP Global, we have a business that is malleable, flexible and quick to move and change when the market changes. Running a real-estate business without considering cash flow and risk is a huge mistake and that’s definitely what I picked up from banking and insurance. YOU PURCHASED YOUR FIRST PROPERTY AT 21 AND ACHIEVED A 174% RETURN ON INVESTMENT AT POINT OF SALE. CAN THIS BE ACHIEVED IN THE CURRENT CLIMATE? I think this is a very good time to invest in real estate and it actually reminds me of my early 20s, because the UK was in a reasonably precarious state at the time and opportunities were emerging. There are great opportunities at the moment, because there is distress both in the developer and in the banking sector, so I would actually say now is a very similar time to when I first got into the market. WHAT DO YOU THINK ARE THE BIGGEST CHALLENGES IN MANAGING A PORTFOLIO FROM A DIVERSE LIST OF COUNTRIES? I think the most challenging part is the rental. If you don’t have somebody who’s an expert in local management to help you with the rental, it can be really tough, so definitely get the rental side, yields and the costs before you invest in any property. WHAT IS THE OUTLOOK FOR THE ASIAN PROPERTY MARKET FOR THE NEXT SEVERAL YEARS?

Very positive, though I would be quite cautious about Hong Kong in the next 12–18 months because [its] market has grown quite significantly. Singapore would perform okay, but I don’t see great growth. Its market is going through a quiet period. I do see good upside in Malaysia, which is one of the cheapest markets in the region. It’s also a great urbanisation story – the country wants to be a top 20 economy by 2020. I think Vietnam is rebounding quite well. China will have a tough year. But I think over the next 5–10 years Asia is still the place to be and the place to invest. DO YOU THINK ASIA HAD SURVIVED THE WORST AFTER THE ASIAN FINANCIAL CRISIS? Asia has never really looked back. A lot of lessons were learned in terms of currency and the way the banks handled the crisis. Consumers really buttoned down and spending got very tight, and Asia survived extremely well in the last recession. WHAT DO YOU THINK ARE THE FACTORS THAT CONTRIBUTED TO THIS? Asians are great savers. Banks were not over-leveraged and there weren’t the same subprime exposure issues in Asia. The countries are all carrying a huge balance of payments – surplus not deficits. Asia will continue to be the growth engine of the world in the next 10–20 years. WHAT LESSONS CAN ASIA LEARN FROM DEBT-RIDDEN EUROZONE? Banks should be cautious about how much money they should lend and Asians should continue to invest but not over-leverage themselves. 60–70% leverage is adequate, but when you get

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TIP FROM THE SEASONED INVESTOR

If you were to choose just one to keep in your portfolio, which will it be and why? I’ll pick two properties. One will be the house that I live in Hong Kong. I think Hong Kong in the long-term is a very strong property market. The second one is my Singapore property. In the next 10 or 20 years, the Singapore economy will continue to grow, which makes it a great long-term property investment market.

people borrowing and over-leveraging and speculating in real estate, it can get very dangerous. WHY INVEST IN ASIA NOW? There’s nothing quite like it. The demographics are absolutely incredible, but I think the next 5–15 years, huge amounts of urbanisation [will occur] in China, Vietnam, Malaysia, and across the developing region. Asians are getting richer at a greater level than any other region in the world. They love real estate and they cannot find any more land so I think you’ll see very strong growth in the next 10–20 years.

DESIGN

Photos from www.kennethcobonpue.com

VIRTUOSO

hough the Philippines has for decades exported chic furniture, its products only get relabelled upon reaching foreign shores. But Cebu-based designer KENNETH COBONPUE wanted to change all that. And change he did, quite fashionably at that. His rattan weave furniture has found its way to the homes of royalties and celebrities. Hollywood

studio Warner Bros. even asked him to furnish a casino set for the film Oceanâ&#x20AC;&#x2122;s Thirteen. Design is a reflection of its creator. But for Cobonpue, his creations reflect so much more. His pieces emanate a distinct Filipino hint even without his conscious effort to inject it. Indeed, many of his designsâ&#x20AC;&#x2122; intricacy ensures that his furniture can only be made in the Philippines. PROPERTYLIFE.ASIA

FEATURE J UNE–JU LY 2 012

ASIA, SPECIFICALLY CHINA, IS NOTORIOUS FOR BEING AN INTELLECTUAL PROPERTY OFFENDER. HOW DO YOU PLAN TO PENETRATE THIS POTENTIALLY HUGE MARKET? Well first and foremost, I make sure that my designs are hard to imitate. It looks simple at first but closer inspection would tell you just how much thought was given into each and every piece. You’re right that they do have a way of copying almost anything but rehopefully, the market there would re alize that nothing can compare to the original.

HAGIA

WHERE DO YOU GET YOUR INSPIRATION? Mostly from nature because I believe that it is where design works, if ever obyou needed proof of it. Others from ob jects that are close to my heart because what’s fascinating about design is that everyyou can be inspired by almost every thing. It’s never predictable.

YODA

RAPUNZEL

THE PHILIPPINES HAS FOR DECADES BEEN PRODUCING QUALITY HANDICRAFTS. WHY DO YOU THINK IT HAS TAKEN THIS LONG FOR FILIPINO CRAFTSMANSHIP TO GET GLOBAL RECOGNITION? I don’t think it took long for it to be recognised globally because it’s true that we have been producing quality handicrafts for decades. But we’ve been there, perhaps in the beginning just as a blip on the radar. In recent years, however, the recognition for Filipino design in general, not just in furniture, has been growing.

YOU HAVE BEEN QUITE VISIBLE IN THE WEST NOWADAYS. WHAT HELPED YOU ACHIEVE THAT LEVEL OF POPULARITY? I guess it’s more of, like I said, the world recognising Filipino talent and I just feel blessed that I’m one of those who got recognised a little earlier. The idea behind the Cobonpue brand when we launched it has always been about offering unique designs that may seem simple, yet it’s beautifully complex. And an increase in demand for such products, particularly in the West, is probably why we have been experiencing that sort of popularity.

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YOU ONCE SAID THAT FINDING INSPIRATION IS LIKE A SPORT: YOU GET BETTER AT IT WHEN YOU DO IT A LOT. DOES THIS MEAN THAT YOUR DESIGN HAS GONE A LONG WAY SINCE YOU STARTED? Certainly. I mean, as with all things in life, design evolves. I have dedicated my life into producing world-class workmanship that we Filipinos can be proud of. I can say that it’s all I can think of. Designs play around my head in every working moment of my life. For me, a crushed soda can become a design inspiration for a chair while bamboo, rattan, steel, and nylon can be put together to create a concept car that’s environmentally friendly.

CABARET (top) AND DRAGNET (below)

THE IN THINGS IN DESIGN NOWADAYS ARE ‘GREEN’ AND ‘SUSTAINABILITY’. HOW DO YOU INCORPORATE THIS CONCEPT NOT JUST IN YOUR FINAL PRODUCT BUT ALSO IN YOUR ENTIRE DESIGN PROCESS? I have always used natural materials, even when I was just starting. I was inspired greatly by my mother who was an interior and product designer in my hometown of Cebu. I use materials that she used because I recognised early on the importance of making products that last. You can say that my designs are sustainable even before I knew what that word meant. Making things by hand requires very minimal energy and I always make a conscious effort to my designs by first considering what material would work for this particular design or that one. Every single piece has to fit and complement each other.

TELL US SOMETHING ABOUT YOUR PARTNERSHIP WITH BRAD PITT. Brad has actually been getting furniture from me as early as the past decade. I just never played it up since I treat my clients with courtesy and the utmost professionalism. The first pieces he got were the standard, off-the-factory-floor ones but later, he started to get customised ones. Brad knows design, that I can tell, and he owns a green design company as well. One of his people actually came to our Cebu showroom to discuss the possibility of working on a project that I will keep mum about for now.

stronger in me as the years come. With Louis Vuitton and Kenzo, their home lines wanted to use my items in their collection and brand it without using the Cobonpue name. Agreeing to that, I felt, was tantamount to giving up on making the Filipino brand even more recognisable.

YOU TURNED DOWN OFFERS FOR COLLABORATION FROMMANY WELL-KNOWN BRANDS, SUCH AS LOUIS VUITTON AND KENZO. WHY? It all came down to branding because as I’ve always said, I want Filipino design to be known by more people all over the world. It is something that has grown

WHAT CAN WE EXPECT FROM KENNETH COBONPUE DESIGN 5 OR 10 YEARS FROM NOW? People can expect that the Cobonpue brand will be as resilient and innovative as before. I’m also looking into designing clothes and hopefully, our concept car Phoenix will get its ‘green’ engine running.

WHAT DO YOU THINK IS THE NEXT TREND IN DESIGN? Sustainability is in its infancy I think but in the coming years, I think designers all over the world will be moving closer to perfecting it. And minimalism seems to be the key to this.

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FEATURE J UNE–JU LY 2 012

& REAL Wind, water, earth

ESTATE After death and taxes, bad luck is perhaps the third greatest equaliser. Good thing the ancient Chinese practice of feng shui is here to save the day. By Rodel Ambas

OME THINGS ARE quintessentially Chinese: the Great Wall, gunpowder, chow fan, dim sum, and cheap goods. And of course, there’s feng shui. It’s hard to imagine Chinese culture, its architecture in particular, without this intricate system of geomancy. The practice of feng shui believes in the use of the laws of heaven and earth to improve life by properly directing the flow of qi – the life force that is the central principle in traditional Chinese medicine and martial arts. Literally translated in English as ‘wind-water’, the term feng shui is a cultural shorthand taken from a passage of the Zangshu (Book of Burial), a book written by Guo Pu in the Jin Dynasty: ‘Qi rides the wind and scat-

ters, but is retained when encountering water.’ Historically, feng shui was widely used to orient buildings, such as tombs, dwellings and other structures, in an auspicious manner. The auspiciousness of a site is largely determined by topographical or celestial features: bodies of water, stars or its overall direction. The practice was banned by the Communists after the founding of the People’s Republic of China in 1949. They labelled feng shui ‘feudalistic superstition. Official dislike for the practice reached its peak during the Cultural Revolution in the 1960s, when feng shui was classified as a custom to be wiped out, and feng shui practitioners were beaten by the Red Guards and their works burned.

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The attitude towards the practice has somewhat become more tolerant of late, albeit feng shui remains illegal in mainland China. After US president Richard Nixon made his historic visit to the country in 1972, he brought back with him not just a sliver of normalised relations between the USA and China, but also the public’s renewed interest to the practice of feng shui. However, modern reactions to feng shui are mixed. The Skeptic Encyclopedia of Pseudoscience states that some principles of feng shui are ‘quite rational’, but ‘folk remedies and superstitions…[have been] incorporated into feng shui’s eclectic mix’. No matter. Many people, from average homebuyers to big-time real estate moguls, remain hooked up on feng shui, some quite obsessively. Donald Trump, for instance, had his New York skyscraper, the Trump Towers, analysed by a feng shui expert after he lost Asian investors several years ago, due to the structure’s supposedly

FEATURE

Photos courtesy of Teresa O'Connor

J U NE –JULY 2 0 12

inauspicious features. Even Disney acknowledged feng shui as an important part of Chinese culture by shifting the main gate to Hong Kong Disneyland by 12 degrees in their building plans, among many other actions suggested by the master planner of architecture and design at Walt Disney Imagineering, Wing Chao, in an effort to incorporate local culture into the theme park. At the Singapore Polytechnic and other western institutions like the New York College of Health Professions, engineering or interior design majors take courses on feng shui, at least to appreciate this ancient Chinese practice. Some graduates of these institutions go on to become feng shui (or geomancy) consultants. DIY FENG SHUI But one need not be a huge property developer to appreciate the uses of feng shui. Average homeowners can incorporate the elements of feng shui to their dwellings.

‘Feng shui can be used like a DIY,’ according to Manila-based feng shui expert Johnson Chua. ‘Knowing where to position a houseplant or a framed mirror, for instance, can help improve a home’s auspiciousness.’ And this is made more important in the advent of ready-to-occupy condos and apartments, as physically re-orienting these dwellings is impossible or prohibitively costly. According to Canadian feng shui expert Erica Sofrina, the practice of feng shui is all about balance. This balance is based on yin and yang, the ancient concept that describes how polar opposites or seemingly contrary forces are interconnected and interdependent in the natural world. Opposites, after all, only exist in relation to each other. ‘By learning to work with the yin and yang components in our homes, we create supportive spaces that bring our lives back into harmony as well.’ In balancing a home, first determine the use of the space and then incorporate the yin and yang qualities

appropriate for it. Passive spaces – such as bedrooms, family rooms and possibly bathrooms – should incorporate more of the feminine yin features, as these places are used for rest and relaxation. Active spaces – like garages, playrooms, home offices and kitchens – should have more of the masculine yang features. ‘The key here is to make ensure that there’s enough of both qualities and not an overabundance of either,’ says Sofrina. Yin objects are reflected by circular shapes, muted colours, upholstered furniture and smaller detailed prints, adds Sofrina. Building materials such as adobe, brick and stucco are also considered more yin materials. Yang objects, in contrast, include slick glass and mirrors, geometric patterns, bright angular spaces and hard angular furniture without detail. Flooring of hard wood, cement and tile also reflect yang design materials and features. Homeowners should also bring in all of the five elements or forces (wu xing), which according to the Chinese are metal, earth, fire, water and wood. These include objects, plants and things that are either from the natural world or represent nature. ‘Houses devoid of nature will never allow owners to feel truly ‘at home’ because of humans’ deep innate connection to the natural world,’ adds Sofrina. FENG SHUI AND THE PROPERTY MARKET Given the supposed luck it brings to homes, it is therefore not surprising that the practice is closely associated with the property market. Some (rather entrepreneurial) experts dispense

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FEATURE J UNE–JU LY 2 012

Some experts often dispense advice to property buyers to assess the auspiciousness of their purchases. Thus, the practice has a huge influence on the market. to investors is Peter So. Recently, he convinced undecided investors not to purchase property in Hong Kong until 2015, as past experience showed the territory’s property prices rising continuously for 5 years and then falling over the next 6. And with prices last peaking in 2009, they’re now due to tumble. But just the like mercurial market they forecast, different feng shui experts have different predictions – sometimes considerably. Edwin Ma, another Hong

Photos courtesy of Canary Land Pte Ltd

advice to potential property buyers to assess the auspiciousness of their purchases. And the practice has a huge influence on the market. This effect is not endemic to Asia or in countries with large Chinese populations. In fact, a 2008 paper published in the International Journal of Housing Markets and Analysis showed that feng shui has a positive effect of property prices in western countries. The paper’s author, Sandy Bond, a professor at Perth’s Curtin University of Technology, said that with the rise in popularity of the use of feng shui design in western homes, understanding its effects on property values could have an important effect to both property valuers and investors. In Asia, feng shui gurus are common if not regular players in the region’s property market. And you know that a property bubble is brewing when they start dishing out ‘expert advice’ on how to better approach the market. Financial analysts read all sorts of windices to form a picture of the economy, and feng shui experts similarly apply their craft to the same end, complete with an arsenal of ancient-looking maps, gadgets and charms. One renowned Hong Kong feng shui expert who often dishes out advice

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Kong feng shui expert, disagrees with So about the city’s property market. ‘If I am to make a suggestion to my clients, I will definitely advise them to pour money into the property market this year,’ he said. Even brokerage firms have their own take on feng shui and the property market. For instance CLSA Asia-Pacific Markets releases its tongue-in-cheek feng shui index every year. For 2012, the independent brokerage and investment group rated the slumping property market in Hong Kong and mainland China ‘fair’ to ‘fab’. Meanwhile in Malaysia, David Koh, founder of the Malaysian Institute of Geomancy Sciences, predicts that 2012 will prove to be a volatile year for the global economy, but Malaysia will be spared the worse aspects of it. ‘The global economy will be volatile because of the poor economic performance of the USA and also the Euro currency. This will affect South-East Asia, but Malaysia will be the more stable country among the others,’ he said during a press conference in Kuala Lumpur. ENTER THE DRAGON (YEAR) Being the mythical creature that it is, the dragon year, at least according to popular belief, symbolises power and prosperity. It is therefore not very surprising that plenty of people are banking on the creature’s promising characteristics to bring much-needed luck to the beleaguered property market this year. According to Chua, although the dragon year symbolises power and prosperity, he cautions that 2012’s business prospects might be not too stable. Instead, he advises people to expand rather than to invest to new ventures. ‘Practising patience and maintaining stability are key.’ ‘There are many opportunities in investing for this earth-related business,’ Chua adds, ‘but the hardest part is what to buy because of too many choices.’ He also advises buyers to determine the element most dominant in them before deciding which property to pur-

FEATURE J U NE –JULY 2 0 12

FENG SHUI-ED Famous structures made auspicious by feng shui

Cheung Kong Center

Photos courtesy of Teresa O'Connor

This boxy building is somewhat unusual in the Hong Kong Island skyline. It was designed not to steal the limelight from the Bank of China Tower but to absorb the negative energy coming from its more famous neighbour’s sharp edges or ‘cleaver’.

chase. For example, it might not be a good idea to buy a house near a body of water for people who have too much water in them. DEBUNKING THE MYTH As with any New Age stuff, there are those who think of feng shui as superstitious scam, especially that many experts can charge huge amounts for consultations. In some cases, feng shui is not so easily practised without having to shell out a huge amount of money, such as when one needs to hire an expert, alter architecture or design or even move from place to place. But according to Cebu-based geomancer Dr Johnny Tan, there are simple, less expensive forms of feng shui that ordinary folks could follow. This includes hanging special (but cheap) mirrors, forks, or woks in doorways to deflect negative energy. ‘Everyday stuff like modifying the features of one’s signature or red-coloured articles of clothing can make a lot of difference,’ says Tan. ‘And Feng shui is about one’s intention.

Positive thinking alone can help one attract qi.’ Chua agrees. ‘Through the years I learnt that it’s important not to give people false hopes, but it’s equally important not to dismay them with negativities either. After all, negativity only begets more negativity.’ Feng shui experts agree that the practice is not something that one must follow religiously. Neither should it run a person’s life. ‘We can give advice and suggest improvements, but is entirely up to the person whether to follow them,’ says Tan. After all, feng shui is not a religion of the fire and brimstone type that promises peril to the unfaithful and good fortune to the devout. ‘It is a system of philosophy that aims to create balance between people and their environments.’ ‘Perhaps the most important thing is to open-mindedness,’ asserts Chua. And we have a maxim in the feng shui community, “If you can’t find the best house, at least yours is not the worst one”.’

Hong Kong Disneyland The park’s main gate and entrance was positioned in a north–south direction for good luck. Large rocks were also placed throughout the park as they represent stability. The boulders also prevent good fortune from drifting away.

Trump Towers New York The Donald hired a feng shui expert to work on the Trump Tower in New York. The main entrance was positioned to face Central Park to maximise the positive energy that the structure receives. Also, a globe is situated in front to slow down the energy that would otherwise hit the building head on.

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UESTION IS, are you a DIY person? If not, and this is your first foray into the world of do-it-yourself, the most important thing to remember is that if you fail to prepare, you should prepare to fail. The right approach to DIY and having the right tools are both crucial to your success. However, a word of caution: not all DIY jobs will increase the value of your home. Something to consider if you plan on selling your home in the future. But some projects are worth it. If you paint or decorate your house, for example, it doesn’t add much to the value of the house, but it will make it much more saleable.

COUNTING COST Before you go about a project, make sure to compare the cost of materials you would need to how much a professional will charge. Don’t forget the hidden charges and you will see that the differences can be quite considerable. A professional often guarantees a certain standard of quality, done on a specified amount of time. If they fail to produce what’s expected, often you can seek some sort of compensation. Paying a little more for the benefits of professional service can be to your advantage in the long run. Be sure to also factor in the cost of time. If you are doing the project

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yourself, make sure you have the free time to do so and not cause tension with your family and friends. In other words, don’t be ‘married’ to your DIY work. One way to handle this is by letting your family and friends help you with the project. This can be more efficient and at the same time be a source of valuable ‘bonding time’ with your loved ones. THE PROPER TOOLS For any DIY project, you need the proper tools. Depending on the project and your skill level, your needs might range from a simple tape measure to bigger power tools. For the bigger tools, you can rent them as you

FEATURE J U NE –JULY 2 0 12

101

HOME IMPROVEMENT

Even that DREAM home needs a little TLC. By Franz A.D. Morales

age. The best way to store your tools is by arranging a designated place for each. You can fasten a board on a wall and hang your tools individually, or get a proper toolbox with dividers for each tool. Taking care of your tools will require you to oil them regularly and cleaning them of grime and rust. Make sure you make tool maintenance a part of your DIY habit.

go, but for the basic tools, consider getting the following for your own: 1 2 3 4 5 6 7 8

Retractable box cutter Spirit level Small adjustable spanner Tape measure Claw hammer Insulated pliers Set of screwdrivers Unior hacksaw

Most DIY projects can be managed with these basic tools. To store them, make sure they are protected from the elements and are well taken care of. Most people throw tools together in a drawer, which can cause them dam-

EXPERIENCE? Now that you have taken costs into account and have the proper tools ready, the next question should be, are you really prepared for your first project? Experience counts a lot, of course, but don’t be intimidated by your lack of it. Success on the first job is not automatic, so make sure you have a guide to follow. Instructions from a DIY booklet will help you a great deal, but the best way to begin is by consulting the experts. If experts are not easily accessible, try to read as many DIY manuals as you can. If you do know someone who has had success with DIY projects, make sure to ask him or her how they managed and learn from them.

SAFETY IS KEY Tools are used only in the way they are intended to. If you have managed to enlist the help of your children, be sure to teach them the proper way to handle and take care of the tools, especially the ones that are sharp and potentially dangerous. Respect the tools and they will serve you well. You can never be too careful when it comes to handling tools, so make sure you invest in the proper safety gear like gloves, goggles, protective overalls, and – if the situation calls for it – work boots and helmets. Always study your project inside-out before you tackle them. Understanding what you need to do is important, rather than going in blind. If you are going to work on anything that involves electricity, be sure you are well-protected. Do what needs to be done properly, without taking shortcuts. Your life may well depend on it. In all, the best way to handle DIY projects is by knowing what to expect – from the costs, the tools, to the project itself. Most importantly, make sure you take all necessary precautions, and then some, when it comes to your safety.

PROPERTYLIFE.ASIA

JAMES E. HARRISON Harrison is a Singapore-based property expert.

PROPERTY INVESTMENT

The right properties for the right people Just because property investment is good for one does not mean it will be good for another.

PROPERTYLIFE.ASIA

ver dinner some chaps at the other end of the table were discussing how clever they had been with their Singapore property investments. My end of the table was discussing the latest mall opening so I carried on nodding, but turned my attention back to these savvy investors. ‘I bought my luxury condo in 2008, bottom of the market (as it turns out). I absolutely love it and I’ve made a packet.’ This is a home purchase, which doesn’t sound like he attempted much analysis whilst buying and he has only made a packet on paper, until he sells it! And so the conversation droned on. I actually ended up discussing the relative merits of one mall’s parking area over another with the girl to my left. Why am I writing this? Apart from improving dinner conversation, many people get burnt through incorrect property investment. Every time this happens, the media generate negative stories, which invariably point the blame at the developer’s sales team. Actually when someone takes a tumble, it’s almost always due to greed and lack of understanding on the part of the buyer; the instances of underhand skulduggery as a percentage of total volume is very low. What we need is for the flow of investment money to be channeled in the right direction. Over the next issues, I will explore the concepts of property investment. But for now, here’s the framework. 1 Property investment is the use of excess capital/income to generate further income, capital appreciation or leverage debt. This will include ideas about appropriate risk/yield levels for property. 2 For the individual, buying a home is about necessity or lifestyle, and holiday homes are at best a mixed approach of excess money being used to finance ‘holiday annuities’, partially subsidized by rental with a capital ‘retirement’ bonus at some point in the future. 3 Businesses, funds and governments can afford professional valuers, market analysts and economic consultants to show how owned property can save cash-flow expenses, provide ‘safe’ income and increase wealth gradually over time, as well as hedging the risk of exposure in other markets. 4 Property investment needs to be in multiples or portfolios. Portfolios of property may have a commonality, but predetermined strategies can provide a predictable return. 5 Just because property investment is good for one does not mean it will be good for another. What percentage of your

capital can you allow to be tied up in a non-liquid asset? 6 Not all properties are equal. Each of them has its own investment signature and should only be entered into after careful analysis. 7 Property lifetime. Just because concrete lasts generations does not mean your luxury city-apartment will still be commanding super-profit yields. 8 What does the future hold? Hopefully, knowledge for individuals based on risk/yield/holding power awareness and not listening to performance-paid brokers. WHAT ARE THE REALITIES TODAY? At a very interesting seminar I attended recently, the keynote speaker, Lester Chen of Beacon Rock Consultancy, talked about scarcity of land in Singapore. He also talked about reclaiming land from the sea and building dormitory cities in Malaysia. All very informative, but then my favorite, the hard facts: Singapore is aiming to increase its population, so let’s stick to round figures and postulate that: • Singapore’s current population is 5 million • Its desired population is 6.5 million • Its average household size is 3.5 people • The Housing Development Board has 50,000 units in the pipeline • There are 80,000 private condos in the pipeline Therefore, to house the extra 1.5 million people, the city-state needs an extra 425,000 units. But there are only 130,000 in the pipeline, leaving a shortfall of 295,000 units! Now let’s enter the realms of developer fantasy and imagine an average unit sells for S$400,000. This means an unsatisfied desire for S$1,180,000,000,000. Now let’s take 25% for a developer yield: S$29,500,000,000! Okay, that’s enough for now. Next issue, some solutions— mostly impractical and some ridiculous, so let me know if you have any ideas.