Property Life Magazine Issue 4

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ASIA’S NO. 1 PROPERTY & LIFESTYLE GUIDE • DISPLAY TO 31ST MARCH 2013

FEATURES

SINGAPORE EXECUTIVE CONDOS HOW TO MAKE MOST OF THE AUSTRALIAN RENTAL MARKET ISSN 2251-3949

9 772251 394009

04

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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 Penang’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 Penang’s skyline.

Make SETIA V RESIDENCES your seafront sanctuary in the sky.

THE TEAM Managing Director/Publisher ALEXANDER KNIGHT alex@panashcomedia.com Commercial Officer JAMES HARRISON james@panashcomedia.com Editorial Officer JENNIFER LS HARRISON editorial@panashcomedia.com Editor-in-Chief RODEL AMBAS, JR. editorial@panashcomedia.com Design and Production ARIF VILLANUEVA ADIL production@panashcomedia.com

PUBLISHER’S NOTE Island. The word conjures up tranquility and swaying palm trees – a peaceful holiday on a beach in the Bahamas or Bali – tropical sun and white sandy beaches – the perfect place to vacation or retire. ow consider t at ew or ’s an attan is an island are an arc i ela o en t ere’s on on

e ritis

sles

n t is issue we celebrate t e to island ro erty ots ots and s ow that on some of them there are properties well worth considering es ecially now t at bot on on and in a ore a e implemented some pretty serious cooling measures in an attempt to bring their overly exuberant markets into a semblance of order. ile t ese city state mar ets are still eminently affordable to i net wort indi iduals t e attracti eness of t e com etition is s inin through. For S$1 million – the price of a recently sold Singapore ousin e elo ment oard ro erty it’s ossible to buy se eral rental condominiums wit yields of u to in u et ailand or two t ree bedroom ouses wit ri ate swimmin ools in awaii A wit rental yields of u to nterestin ly enou alf a million ounds sterlin can buy a t ree bedroom a artment in ondon’s fas ionable slin ton or will et a two bedroom a artment on ew or ’s famous ar Avenue, only two blocks from Central Park.

There is a lot of property stock available on many different islands around the world – all of which is well worth taking a closer look.

Our country guides have been specially designed to help steer you in t e ri t direction and we’re e andin t em to include e en more countries from this issue. a

y readin and to our

inese readers

on

i a ai 新年快乐!

Digital Manager TREVOR WATLING trevor@panashcomedia.com Sales Executive BENSON LAI advertising@panashcomedia.com Circulation and Distribution SASHA RITZER circulation@panashcomedia.com GET YOUR FREE SUBSCRIPTION AT http://www.propertylife.asia/subscription.html or email us at subs@panashcomedia.com DOWNLOAD OUR iPad and iPhone app from the Apple App Store We really want your feedback! Please contact us: Tel: +65 6534 9390 email: info@panashcomedia.com

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Contents FEBRUARY‒MARCH 2013

21An Island Affair

The best-looking properties on the world s best-looking islands 22 Ko Samui / 25 Phuket / 28 Manhattan / 32 Bali / 36 Cyprus / 40 Hawaii 44 Hong Kong / 48 The British Isles / 56 New Zealand / 60 Penang / 63 Crete / 67 The Bahamas

56

4

BUYERS’ MARKET Houses in picturesque New Zealand © WELLINGTON TOURISM

Contents FEBRUARY‒MARCH 2013

FEATURES

18

EXECUTIVE 14 SINGAPORE CONDOMINIUM MARKET Supposedly affordable homes at record-breaking prices

18 AN ISLAND INVESTMENT Would-be investors are spoilt for choice when it comes to holiday homes

CHANGING THE RULES 70 OF THE GAME 70 Uruguayan-born Carlos Ott on architecture and why he will never design a box building

72 LET S TALK FURNITURE In an era when every idea can be copied, one furniture retailer supports designers’ life work

RENTAL 74 THE MARKET FACTOR

72

74

How to make the most of the Australian property market

76 ARE YOU PROTECTED? Life insurance may be the most important purchase you’ll make

REGULARS

76 © SXC.HU / MARINDBK

ON THE COVER

08 79 96

NEWS COUNTRY GUIDES PROPERTY INVESTMENT

¦ FANCY A HOUSE ON AN ISLAND?

When people talk about islands, they often associate them with palm-lined, white-sanded tropical getaways, when in fact, these are just a fraction of what’s actually out there (millions perhaps).

and history freaks, there’s Crete, Cyprus and Penang.

Even more stunning is the entire New Zealand, perhaps what J. R. R. Tolkein had in mind when he conceptualised Middle Earth.

There’s Hong Kong, the British Isles (London, at least) This issue of Property Life guides you to the ins and outs of buying that most-sought-after piece of real and Manhattan for people who want to be at the estate in the world’s most photogenic islands. centre of everything cool and brassy. For culture

SPECIAL ADVERTISING FEATURE

Your Next Best Investment Decision

S

ingapore may be a small country compared with the rest of South-East Asia, but what lacks in size, it more than makes up for in the stability of its economy, efficiency, and its robust property market. Add to that a rich mixture of culture – a strange yet enticing brew of Chinese, Malay, and Indian, with a dash of Western influences – and you will get more than what you bargain for.

History has it that housing and urban renovation are what Singapore is famous for around the world. Its urban landscape is stunning, and in the 1990s, it has one of the world’s highest rates of home ownership.

Hence in this tiny city-state owning a home is the norm, making its property market one that is characterised by stability, efficiency and maturity. So attractive is its housing market investors from as far away as the United States, the United Kingdom and Canada are taking long-haul flights to Singapore to snatch well-designed, potentially profitable houses.

One of the developments to grace Singapore’s urban landscape is LAFE Corporation Ltd’s The Residences at Emerald Hill.

This very exclusive, freehold property is LAFE Corporation Ltd’s first foray into luxury residential development. What better way to mark the start of an exciting venture but to pick a place teeming with rich culture and history. And that’s exactly what LAFE Corporation Ltd did when it chose the historic Emerald Hill in Singapore’s Downtown

Core as the site of its first project.

Emerald Hill for decades has been the home of Singapore’s wealthy Peranakan Chinese community, an area so rich it inspired the imagination of countless poets and artists and immortalised in numerous works of art and literature, chief of which are acclaimed Singapore writer Goh Sin Tub’s beloved short stories. It is an area that boasts an architectural heritage quite unique even in Singapore. Old, colourful Peranakan terrace houses in a variety of architectural styles, from Transitional to Art Deco, has been impeccably restored and

converted. Indeed, it is in this vibrant yet quiet area where you, along with a very select few others, can claim ownership to.

The Residences at Emerald Hill has 33 very exclusive, freehold apartments, penthouses and townhouses, in a site that prides itself for being one of the last pieces of luxurious green properties in Singapore’s Down-

For more information on The Residences at Emerald Hill, visit www.emeraldhill.com.sg

town Core. This development offers buyers and investors more than their money’s worth – exclusive living in one of Singapore’s most sought-after addresses.

According to LAFE Corporation Limited’s Chairman Christopher Ho Wing-On, developing this piece of prime and historic part of Singapore is something they would love to be part of. LAFE Corporation Limited chose a design that will make The Residences blend seamlessly into its surroundings. ‘Maintaining Emerald Hill’s Conservation Status is of utmost priority, and we at LAFE Corporation Limited made sure that The Residences will become a part that will help preserve and enhance the area’s iconic surroundings, not upstage it.’

Its three- and four-bedroom apartments are huge and ideal for growing families. But the development’s showstoppers are its townhouses. Almost like landed properties, with their own underground parking lots and rooftop swimming pools, they’re very exclusive and self-contained, a mere minutes away on foot to the exciting and busy Orchard Road.

As foreigners aren’t allowed to buy land in Singapore, The Residences’ townhouses are the next best thing, being almost like a landed bungalow. ‘In a sense, it’s as if you’re buying a landed property,’ says Mr Ho. Indeed owning a piece of real estate in Singapore is perhaps one of the wisest investment decisions you will make. But in a market already teeming with many luxury residential developments, you must be very discriminating. This is where LAFE Corporation Ltd can help you: that your next property purchase – at The Residences at Emerald Hill – will be your best investment decision.

Hotline (+65) 6509 9838

NEWS F E BRUARY— MARCH 2013

Transatlantic rivalry Exciting best describes the rivalry between New York and London. Who’s more money-obsessed Who’s got groovier art Who rocks harder Who creates freakier fashion (Hands down to London on that last one.)

And this year, these cities will unveil their behemoth monuments, the first for both in many years London’s The Shard and New York’s One World Trade Center.

The Shard

One World Trade Center

Europe’s economic turmoil almost put this project on hold, but a consortium of Qatari investors came to the rescue and paid £150 million to acquire an 80% stake for the project. It became the tallest skyscraper in the European Union when it was topped out last year.

Due to unconventional safety features, this tower that stands on the site of the 9/11 attacks exceeded its budget, which prompted the Port Authority of New York and New Jersey to implement a series of tunnel and bridge toll hikes to raise funds.

It became the tallest skyscraper in the Western Hemisphere when it was topped out last year. As of September 2012, around 55% of the building had been leased.

ADDRESS 32 London Bridge Street, Southwark HEIGHT (ANTENNA/SPIRE) 309.6 metres FLOOR COUNT 95 (75 habitable) FLOOR AREA 110,000 square metres COST £435 million (contract cost) ARCHITECT Renzo Piano DEVELOPER Sellar Property Group

New World Trade Center Complex, Lower Manhattan HEIGHT (ANTENNA/SPIRE) 546.20 metres FLOOR COUNT 104 (plus 5 basement floors) FLOOR AREA 325,279 square metres COST US$3.8 billion (Jan. 2012 estimate) ARCHITECTS David Childs/Skidmore, Owings & Merrill DEVELOPERS Port Authority of New York and New Jersey ADDRESS

Recovery and dynamism

N

ot all countries recover from financial crises the same way.

Some do it quite well, because they put in place changes and measures that will aid their recovery. In its latest report, Global Dynamism Index 2012, Grant Thornton listed ten countries whose economies went through changes to enable them to recover from recent recessions, thus ensuring their fast rate of future growth.

8

1 Singapore

2 Finland

3 Sweden

4 Israel

5 Austria

6 Australia

7 Switzerland

8 South Korea

9 Germany

10 USA

SOURCE GRANT THORNTON, GLOBAL DYNAMISM INDEX 2012 | ORB FLAGS VATHANX, WWW.SOFTICONS.COM

NEWS FEB R UA R Y — M A RC H 2 0 1 3

Cheerful, cheerful

M

oney can’t buy happiness. At least according to the recently conducted (and popular) Gallup Poll, which showed that Latin Americans are among the world’s most cheerful.

The survey conducted by Washingtonbased think tank, Gallup Inc., has shown that Latin America is home to eight of the top 10 countries whose residents are most likely to report feeling positive emotions.

Among the questions asked in the survey were, ‘Did you feel well-rested yesterday?’, ‘Were you treated with respect all day yesterday?’ and ‘Did you smile or laugh a lot yesterday?’

According to Gallup, the data may come as a surprise to analysts and leaders, as traditional economic indicators are solely the focus of most government strategies. In fact, Nobel Prize-winning

Country

85%

Paraguay

85%

El Salvador

84%

Venezuela

84%

Trinidad and Tobago

83%

Thailand

83%

Guatemala

82%

Philippines

82%

Ecuador

81%

Costa Rica

81%

*Percentage of respondents who reported feeling positive emotions the previous day.

Costly cubicles

A

I

Size of retail market in 2022 (in US$) China $8.34 trillion USA $4.47 trillion India $3.82 trillion Japan $1.62 trillion Russia $1.48 trillion Brazil $1.55 trillion World (60 countries) $33.47 trillion

Score*

Panama

Retail boom ccording to the Economist Intelligence Unit, while retail growth in mature Western markets will moderate over the next few years, massive consumption in emerging economies will create a vastly different landscape by 2022. This is when China is expected to account for around a quarter of global retail sales, twice as much as the USA. In fact, 2012 already saw China eclipsing America as the world’s largest food and grocery market. And this year, it is expected to surpass Japan as the world’s largest luxury goods market, and by 2016, the USA as the world’s largest retail market.

BY THE

economist Angus Deaton said that in the USA, income only significantly impacts daily positive emotions when earning up to US$75,000/year. Additional income does not make much difference.

NUMBERS

275,000 Positions available in Hong Kong’s financial sector by 201 – more than London’s or New York’s INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES

80%

Jakarta’s cumulative office rent growth for the 2012–201 period, the highest anywhere in Asia CUSHMAN & WAKEFIELD

31%

ncreased leasing activities, limited stock, and expanding corporate operations – factors that drive the global office markets. It’s no wonder that offices in cities with little office space available (Hong Kong and London) and in those where corporate activity is vibrant (Rio de Janeiro and São Paulo) command the highest persquare-foot prices.

Net rent (US$/square foot/year) Hong Kong 166.70 London (West End)

125.65

Tokyo*

106.01

Rio de Janeiro

90.40

Paris

87.50

Moscow

83.58

London (City)

71.18

Perth

75.77

Geneva

63.70

São Paulo

63.50

*Gross rents

Average uplift in price that branded residences command compared to equivalent non-branded schemes KNIGHT FRANK

14,641,067 Total office space, in square feet, under construction in São Paulo as of une 2012 COLLIERS

9.8 BILLION Amount of property, in square metres, under construction in China as of October 2012. China is building roughly 0 Hong Kongs CNBC.COM

SOURCE COLLIERS’ 2013 GLOBAL OFFICE OUTLOOK

9

NEWS F E BRUARY— MARCH 2013

8

10

4 5

2 1

The joy of

9 3

7

6

not working Now on its 22nd year, InternationalLiving.com’s Annual Global Retirement Index 2013 guides would-be pensionados into choosing the perfect spot to spend a never-ending holiday. Though each of these destinations is desirable in its own way, they have one in thing in common that’s increasingly hard to come by at home, says International Living executive editor Jennifer Stevens a good quality of life for a reasonable price.

Here are this year’s top ten

1 Ecuador

Julian Assange would be pleased. Not only will the world’s most famous hacker find this tiny Latin American country’s regime supportive of his, well, activities, he’ll realise that its major draws are its laid-back lifestyle, great climate (from tropical along the Pacific coast to spring-like year-round up in the Andes) and duty-free household goods. Senior residents are also qualified for half-price on entertainment and local transport, discounted airfares, and refunds of sales tax.

2

Panama This isthmus that connects North and South America is famous not only for its busy canal, its Pensionado (pensioner) Visa is also a major draw among American and Canadian retirees. Qualified pensioners will find themselves receiving discounts on practically everything: 10–15% off medical consultation, 25% off at restaurants, and 50% off admission on movies. And where else can you take a dip in the Pacific after breakfast and in the Atlantic before dinner – in one day?

3 Malaysia

One of the two Asian countries to make the top ten, Malaysia is fast becoming a high-income economy, meaning its infrastructure is on par with that of the West (although it remains attractively cheap). It’s also a growing hub for medical tourism, so its healthcare is superb.

Foreigners are also allowed to own land and houses here freehold – something not possible in other Asian countries.

10

7Colombia

Though for decades tainted by drug lords and abductions (and Tom Clancy novels), Colombia is gradually becoming a favourite among retirees. A modest Social Security check can go a long way here (a bit more for ultraluxurious lifestyle), and its cities like Bogota and Medellín offer elegant metropolitan lifestyles.

4

8 Spain

5

9 Thailand

6

10 Malta

Mexico This quintessential Latin American country is as colourful as the hundreds of telenovelas it churns out every year. ‘You don’t have to look far to find interesting cultural traditions here,’ says an expat retiree. Today’s Mexico also offers the same conveniences that Americans and Canadians are accustomed to back home: satellite TV, monster fridge, and all the familiar brands. And the country’s sheer size means there’s something for every taste.

Costa Rica Arguably Central America’s most stable country, Costa Rica also aspires to be the world’s first carbon-neutral by 2021. Costa Ricans, too, have the reputation for being happy: the New Economic Foundation ranked the country first in its Happy Planet Index in 2009 and 2012.

According to International Living, a monthly pension of US$1,000 is all that’s needed to get a residence permit. Residents can join a universal healthcare system, known as Caja, which offers free care on almost everything.

Uruguay A thriving IT hub, Uruguay is the only country in the Americas to not experience a recession between 2006 and 2009. Satisfied with how their democracy works, Uruguayans are among the world’s happiest, and one of the world’s least corrupt.

This obviously has translated to an efficient public infrastructure, which means retirees can save big time on services such as public transport, healthcare and insurance.

It’s difficult not to fall in love with Spain. Good wine, lavish culture and great climate. Now you can add affordable real estate to that.

Thanks to its recession, one can get great bargains in Andalucia and the Balearic Islands. That means a comfy dig to go home to after partying in Ibiza. An OECD member-country, its medical facilities are among the world’s most modern.

Retirees in the Land of Smiles have a lot to smile about: political turmoil has eased, economy is growing steadily, and massive floods have been dealt with. Whether it’s tropical islands in the south, peaceful mountain retreats in the north, or cosmopolitan living in Bangkok, the country affords retirees a great laidback lifestyle that doesn’t put a hole in their pockets. And medical costs here are a fraction of those in the USA or Canada.

A bit of North Africa with a dash of Southern Europe, Malta has long been the favourite among British and French nationals looking for a sunny retreat for a weekend of R&R. The country also offers excellent tax advantages both for expat and local retirees.

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1 15 2

NEWS F E BRUARY— MARCH 2013

5 8

13 6

17 7 12 3 14 20 16 9 11 10 19

Europe’s best

Despite the eurozone crisis, some markets still offer plenty of opportunity (when it comes to making money from property).

1 LONDON The quintessential safe haven, it has outperformed the rest of the UK and continues to be a destination of choice for foreign sovereign funds.

6 BALEARIC ISLANDS With many parts of Spain a mess, the Balearics are a good bet. Think great mix of scenery, lifestyle and climate, plus all-night partying.

7 GENEVA Though expensive, properties here are protected from the woes of the eurozone and will get the added benefit of quaint Swiss alpine tourism and strong economy.

2 PARIS Limited supply – and the irresistible lure of Parisian lifestyle – makes this market a pricey one.

3 CANNES Glitzy and hedonistic, properties in this southern French city have always been in high demand.

14 VENICE It remains one of the most desirable cities in the world, and properties here are not cheap as they come with magnificent and beautiful surroundings.

8 GIBRALTAR It suffered like Spain, but prices have started to come up again. An attractive tax regime makes this market irresistible to foreign investors.

4 CAMBRIDGE Quaint and classic, houses in this famed English college town are a safe bet, and even predicted to post high price increases over the next five years, said Savills.

15 GUERNSEY Stable best describes this market. No dramatic rises, but no dramatic declines either.

9 FLORENCE As always, Tuscany is a huge favourite. Where else will you find a Renaissance masterpiece every five paces?

5 QUINTA DO LAGO/VALE DE LOBO Golf courses, gorgeous beaches and wealthy owners keep the wheels turning in this chic Portuguese resort town.

10 SARDINIA Protected from the woes of mainland Europe, prices on this gorgeous island are among the highest in the Mediterranean. The usual words of caution when buying in Italy still apply, though.

18 BATH England Land Registry figures show that prices in Bath and North Somerset rose 9% in 2012. Buyers still like a quiet, rural feel after all.

12 VIENNA Similar to Paris, limited supply makes this city a safe bet. In fact, Austrian prices rose more than 10% in 2012.

2

3

4

5

12

16 MONACO Though prices plunged by up to 35% after the crash in 2008, property prices have started to climb.

Plus, a glitzy international appeal means in the medium- to long-term, investment should be safe.

17 BERLIN This once-divided city is quickly catching up with Germany’s thriving economy. Data show that values rose more than 10% in 2012.

11 CORFU Compared with the rest of Greece, Corfu’s market has been more of a comedy than tragidy, with demand for holiday or second homes as high as ever (especially upscale ones with sea views).

1

13 BARCELONA The overall Spanish market is not in a good shape, but as with any recession, there are bargains to be found, especially for buyers looking to take a longer-term view.

19 MALTA With tourism increasing, its economy is in a good shape, which makes properties here a safe investment in the long term.

20 MONTENEGRO Clearly an outsider, this young market has not suffered the same corrections as Croatia and Italy. Prices gained 5% in 2012 in super prime areas, according to Savills.

6

SOURCE TELEGRAPH.CO.UK

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EN RE

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OV K

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FEATURE F E BRUARY— MARCH 2013

Singapore executive condominium market

Unless something is done, these supposedly affordable homes may mean headaches for the government over the next few years. By Benson Lai

F

or the whole of 2012, Singapore’s private, residential property market continued to surge to greater heights, with privatehome prices rising about 2.8% year-onyear, according to preliminary data from Singapore’s Urban Redevelopment Authority (URA). Resale prices in the public housing/HDB market have continued to climb as well, up nearly 47% since the market’s last cyclical trough in Q4 2009.

Straddling both of these two markets are the much-reported executive condominiums (ECs). ECs are a private–public housing hybrid standing between private-

ly held condominiums and governmentfunded HDB flats. While ECs are government funded, they are more like private condos in their furnishings and facilities.

Perhaps most importantly, however, is that the purchase of an EC is meant to require a specific income range to qualify.

Nevertheless, a 4,349-square-foot presidential-penthouse suite on the top floor of an EC project, Citylife @ Tampines, was recently purchased for S$2.05 million (US$1.67 million). The sale went through within a couple of hours from the opening, and it turns out the actual buyer was a businessman using a family member as a proxy for the application.

The sale/purchase and circumstances have since fanned a debate over the role and intent of ECs and has left market observers wondering what is going to happen next. So far, the government has said it will watch developments in the EC market closely, and asked the URA to reconsider the project altogether.

Indeed, this much-reported presidential-penthouse suite, alongside the spike in sales volume of EC units sold last year (four times higher than in 2010), present another potential set of problems in Singapore’s already red-hot property market.

One of the current requirements of EC ownership avails ECs to those with household incomes of less than S$12,000 (US$9,782) per month, but this may seem inadequate in addressing a pertinent question: if certain households are rich enough to purchase such penthouse EC units at over

AN EXECUTIVE CONDO ARC at Tampines

14

6,500

Number of EC units in the pipeline for sale as of Q3 2012

$356–$454

Price increase per square foot, in Singapore dollars, of executive condominiums from 1996 to 2006. Median prices of private condominiums moved from $415 to $826 over the same period

72%

Average three-month take-up rate for EC projects SOURCE DTZ

S$2 million (US$1.63 million), regardless of their financing sources, shouldn’t they be buying in the private-residential market instead?

According to Knight Frank, between 2010 and 2011, EC penthouses only constituted about 3–5% of the housing stock of an EC project. This percentage rose to about 5–6% last year, in proportion with more EC projects being rolled out last year. However, there is a minimum lock-in period of five years with EC ownership, so speculative intent is not easily realised (not in the shortmedium term, at least). Meanwhile, the number of new EC projects is still expected to rise further this year.

Undeniably, there is an aspirational demand out there for such a luxurious, expansive penthouse-living lifestyle.

Perhaps this is the time to take a deep breath and remember the flip side of the coin: shoebox units in Singapore’s suburbs. Not so long ago, these shrinking units were getting a little too small for the government’s comfort, even though they fall within the private residential market.

With ECs, size – and relative price – may be an issue yet again.

C O - P U B L I S H E D

F E AT U R E

THERE’S AN

ETHICAL WAY TOPROFIT FROM THE US housing crisis

T

he ongoing housing crisis remains one of the biggest issues most Americans face today. The sluggish pace of its recovery continues to plague America’s economy, and streets lined with foreclosed homes and banks desperate to get rid of excess inventories have been the common scenario in America today.

But the biggest casualty of the housing crisis is American families forced out of their homes and the nearly one in four homeowners owing more on their mortgages than their homes are worth. As if the situation couldn’t get any worse – the job market remains sluggish at best.

America’s housing market is where the Great Recession began. And it is fitting to say that it is also where recovery will start. To heal the economy, the government needs to heal the market that’s on life support for more than half a decade now. To do that, it must make sure one thing that will fuel growth over the coming years: To put American families back into their own homes.

It turns out, there’s a unique way to invest in the US low-cost housing market. But change that.

There’s a unique and ethical way to invest in the US low-cost housing market. And it has been successful in a city that stood as the poster child of the housing crisis: Detroit, Michigan.

C O - P U B L I S H E D

F E AT U R E

YOU CAN BE PART OF THE SOLUTION THE PROGRAMME Honed in Detroit, Michigan, where there are more disadvantaged families per capita than any other US city, the aptly named Exit Strategy aims to create jobs, deliver much-needed good quality and affordable to American communities, and provide investors with exceptional returns. The Exit Strategy has secured the purchase of thousands of repossessed properties from US banks, which are now being fully renovated and sold with a mortgage to prequalified, low-income families with good credit histories. In fact, the Exit Strategy has 22 US lenders to provide the mortgages for the Strategy, and we intend to purchase, refurbish and sell in excess of 40,000 properties over the next three to four years.

The Exit Strategy, formed in 2010, is a creative solution to bridge the class divide between the rich and poor – the haves and have-nots. It enables ordinary American families, those cut off from high street lending, an opportunity to live in their own home.

This strategy is simple. As there are countless supply of good quality homes available for American families, the US government is committed to pumping billions of dollars into communities across America. All that is required is front-end investment and a lot of hard work on the ground.

Actual houses being refurbished (below) and investors cashing out S$6.8 million is less than one year (right).

THE MODEL The Exit Strategy works as a result of buying repossessed properties from banks very cheaply and turning (buying and selling) them quickly. All houses purchased will be cleared of any taxes and registered at the local county office in our name.

The Exit Strategy enables normal families to get back into home ownership.

These families, currently trapped in expensive rental programmes, can finally have an ‘exit’ of their own. They are pre-qualified by our US management company and need to meet certain criteria.

Essentially, if they have a recent history (6–9 months) of paying bills without default and earn a minimum of US$1,300 per month, they are in a position to apply.

The families will be subject to background checks to ensure they fall into our disadvantaged category.

While this process is happening, the construction team will be making each house into a desirable family living space and the attorneys will be dealing with all financial and legal requirements. It typically takes our construction teams less than 14 days to fully refurbish a single home.

Where required this includes installing a new heating system, doors, windows, kitchens, bathrooms and decorating throughout. Sale prices will vary from state to state but we will operate below comparable property prices for each region. The lower sale price creates instant equity and makes the home purchase an exceptional deal for the qualifying families.

The Singapo with the Righre Infinity Treasures team t Buy Proper ties team.

THE PLAN Three major US lenders have offered to provide all of the mortgages for our properties. These could be offered as low as 2.8% fixed for up to 30 years. Each city/ state has a different set of variables relating to how many properties are used and what is the timescale on the cycle.

AND THE RETURNS Although it is a unique and ethical investment strategy in the US low-cost housing programme, it does not mean that would-be investors will not get returns. In fact, on a S$100,000 investment the investor receives S$15,000 at the end of one year plus S$100,000 at the end of the term, so the total investment return is S$115,000.

All returns are fixed in Singapore dollars so there is no currency risk.

How will it heal the ailing US economy?

According to economists, there are two senses to the word recession. In its strict scientific sense, it refers to a prolonged period of reduced economic activity marked by the contraction of a country’s GDP over several quarters. By this definition, the ‘Late 2000s Recession’ has already ended in the USA. But why do ordinary Americans feel that the recession is still affecting their everyday lives?

This is because for the average American, recession is represented by ongoing hardship, which can be quantified by high unemployment levels, low consumer confidence, declining home values and rising fuel and food prices, to name a few. The inability to lend money to buy real estate reinforces the fact that for the average American, the country is still in deep recession, when if in economic terms, it is not.

With the Exit Strategy, more American families will be able to buy affordable housing and significantly increase their monthly cash flow. These in turn will help grow consumer confidence. Maybe then, many of these families will feel that the recession is finally over.

C O - P U B L I S H E D

THE HOUSING CRISIS

FAQ

by the numbers

Are there any guarantees?

The returns are fixed and secured between InvestUS and our investors. Returns are fixed in Singapore dollars currency and investors are not exposed to any currency risk.

3.5

Is this investment sustainable?

The Exit Strategy can only work in distressed markets and as the market/economy recovers.

We will develop in many other cities across the USA and different returns will be possibly dependent on time of application and market conditions in that particular area.

Number of foreclosures completed

by US financial institutions since the start of the financial crisis up to March 2012

What security is there on my funds?

We have secured the services of an independent lawyer in the USA to act on behalf of the investors. Funds are paid into Escrow and committed to the project under the terms of the Escrow agreement.

MILL I O N

25%

Percentage of African American and Latino borrowers who are at serious risk of foreclosure today

$7,000 The administrative cost, in US dollars, of foreclosures incurred by borrowers, not to mention the indirect yet substantial costs to the well-being of American families SOURCE CENTER FOR AMERICAN PROGRESS

Who Are We The Exit Strategy founder and CEO of Right Buy Properties Ron Mackie has a background in the world of finance. He was responsible for Pacific Rim funding to build African rural projects, and is extremely au fait with large international residential projects regarding housing disadvantaged families. He has over 40 years’ experience in property over four continents.

The Exit Strategy founder and CEO of Right Buy Properties Ron Mackie has a background in the world of finance. He was responsible for Pacific Rima funding to build African rural projects, and is extremely au fait with large international residential projects regarding housing disadvantaged families. He has over 40 years’ experience in property over four continents.

A highly reputable and family-run business in its second generation, Metro Equity Services is the attorney responsible for securing deeds and titles, and control the flow of funds required to facilitate the Exit Strategy operation.

Where do you buy the houses from and what is the condition?

The banks are our biggest supplier. Keen to rid the toxic assets from their books, we are able to buy a much higher quality product at a reduced rate due to the high volumes we are purchasing. We deal with only ‘A’ standard houses.

Surely some houses cost more to renovate than others?

We have a ceiling for purchase and renovation cost. The agreement in place with our construction company ensures that we will never pay more than we are happy to.

What is the view of the government?

The US government has a set of policies in place to close down Fannie Mae and Freddie Mac and is looking for private enterprise to bridge the mortgage gap. This is exactly what we are doing. Local government is very supportive as we are collecting taxes at source.

F E AT U R E

Is anyone else doing this?

As of now there is no one offering this investment/system of vast renovation. This process has taken 3 years to develop and perfect.

Although it is possible to replicate, we believe it would take many years to build the relationships and learn the lessons we have learnt.

How does the end user afford the mortgage?

With the average end user earning between US$1,300 and US$1,800 and the family typically paying over US$800 a month in rent, the end user will actually reduce their monthly outgoings by as much as US$450 per month by applying for a house with us.

There are lots of companies offering U.S. foreclosed property investments, what makes this one different?

InvestUS is the only company offering a buy-to-sell strategy based on rehousing disadvantaged families. Most U.S. property investments focus on cash-flow, in the hope that the properties will rise in value over the agreed rental period. It is unlikely the properties will rise in value over the short/midterm, and it would take 6 years to be cash flow positive based on current rentals.

How big can the Exit Strategy become?

The Exit Strategy business plan is to re-house 40,000 families over the next three years in the U.S. Why don’t you get large hedge funds to invest instead of individual investors?

We are attracting investment from private individuals as well as hedge funds. Our business ethos is to spread wealth and we are happy to include private investors in our investment family.

Why are the returns so achievable?

We buy the houses at very low prices and sell them quickly, with a fully secured mortgage.

Right Buy Properties CEO Ron Mackie sharing the benefits, to both investors and ordinary American families, of the Exit Strategy.

Quality Home Improvements is the construction company responsible for sourcing and renovating properties for the strategy.

As an international investment and management consultancy, Project Kudos Group undertakes due diligence on all elements of the projects they structure, which include site visits and interviews with all key partners.

The global marketing management for the Exit Strategy, InvestUS takes pride in taking the opportunity to make a difference for the

less fortunate as well as giving returns to its investors. It has been extremely successful in establishing, building and generating interest in the Exit Strategy.

As the Exit Strategy’s Asia sales and marketing team, Infinity Treasures offers some of the best assetbased investment products to clients at affordable levels. Its founders carry with them decades of real estate investment experience and expertise in sales and marketing.

Incorporated in 1990, Glenmuir International is one of the world’s most respected investment trustee and fund administration providers. Its role in the Exit Strategy encompasses receipt of invested funds, distributions to Escrow and annual auditing, to name just a few.

For more information on the Exit Strategy Investment, you may contact: Infinity Treasures Pte Ltd, Chulia Street, 3 -02 OCBC Centre, Singapore 0 TEL. (+65) 6922 0460 EMAIL enquiry@infinity-treasures.com WEB www.infinity-treasures.com

13

FEATURE F E BRUARY— MARCH 2013

An island

investment

Beach, city or culture? Would-be investors are spoilt for choice when it comes to holiday homes. By JS Lee

© SXC.HU / MARINDBK

I

n this Island issue of Property Life, it’s easy to see how a holiday home makes sense for a property investor: sandy beaches, warm climates, surf and turf, and extraordinary property markets to match.

But as you’ve also seen, an island doesn’t have to be just about snorkelling and eating fresh seafood. A city island such as Manhattan, Singapore or Hong Kong, or a cultural destination, such as New Zealand or Cyprus, has an entirely different take on tourism. And their holiday home potential is just as exciting.

RENTAL MARKETS ON CITY ISLANDS The rental markets in most of these island cities are quite large. In Manhattan, for example, not only is there is a shortage of inventory, especially with condos, but the Federal Reserve Bank of New York says that there is currently better value in renting than in owning because the overall price of apartments has increased relative to rental prices. This drives rentals because local Manhattanites are finding it difficult at the moment to get on to the property ladder; therefore, a foreign investor with the proper financing will find an advantage to ownership in the form of rental returns. With a condo shortage,

18

however, consider instead a town home or co-op apartment.

Singapore and Hong Kong as well have strong rental markets, in large part due to their high number of corporate expats from all over the world moving in for long- and short-term job contracts. Just as Manhattan, Singapore and Hong Kong are financial hubs, which means that all three of these island cities will always have tenants who need rented accommodation.

Yes Manhattan, Singapore and Hong Kong are expensive. These aren’t ideal locations for investors struggling to find financing. In fact, all three cities are in the top 10 of Global Property Guide’s list of the most expensive cities in the world (9th, 7th and 3rd, respectively).

Additionally, Singapore and Hong Kong specifically have had cooling measures recently issued by their governments because the cost of the already-expensive property is on the rise, and some locals are being priced out of the market altogether. With added taxation schemes for foreign investment, it may seem on the surface that these locations are not suitable investment destinations. However, for the right investor, one lucky enough to have the cash and time to spare, the rental yields are potentially higher than the property values.

It boils down to selecting the right neighbourhoods and areas, and this is where working with an experienced, local estate agent will pay off. An accountant who specialises in real estate can also help with cost and income scenarios, and is also worth hiring.

RENTAL MARKETS ON TOURIST ISLANDS Considering that the earth’s surface is 71% ocean water, there is no end to the number of beautiful beaches found on the coastlines of the thousands of islands dotted across the globe. But for an investment property, beauty is not as important as rental potential.

Two important considerations for beach holiday home investments are infrastructure and tourism.

More so than in mainland beach areas, an island’s tourism industry cannot survive without infrastructure – airports, roads, hospitals or medical centres, and a hospitality industry to support the tourist activity.

Your investment will more likely pay a rental yield if, for example, tourists can reach the island easily – if not by air then by ferry or boat – and not have to travel too far (or at least travel by paved road) from the airport/ferry port to reach their rental accommodation.

FEATURE FEB R UA R Y — M A RC H 2 0 1 3

Your investment will also benefit by being within a reasonable proximity to other entertainment venues and tourist services, such as restaurants, bars, cafés, and even aquariums, museums or other cultural centres.

While it is certainly true that there is a segment of the rental population who seek seclusion in their beach holiday, these tend to be niche markets, from either end of the scale of the tourist pool: the super wealthy who can afford to rent a car and pay exorbitant rental fees for a beach-front property with total privacy, to the backpackers who relish a hike as much as the low rental fees for out-ofthe-way accommodation.

However, the wider you cast your net for catching potential renters, the lower the risk for the investment property.

An additional way to increase the number of tenants for your beach holiday home is by choosing a destination with a long tourist season. This typically comes down to climate, and some of the islands featured in this island issue of Property Life have some of the best climates in the world.

South-East Asia, although a tropical climate which means heat and humidity, has some of the longest tourist seasons on offer: Thailand (Ko Samui, Phuket), Malaysia (Penang), and Indonesia (Bali) Another tropical destination, but with slightly less heat and humidity than South-East Asia, is the US state of Hawaii, located in the Pacific Ocean.

Further along in the Atlantic Ocean is the country of the Bahamas, which welcomes tourists much of the year, although the hurricane season during August and September does shorten the tourism industry’s marketable season.

RENTAL MARKETS ON CULTURAL ISLANDS It’s not always about the weather, however. Cyprus, New Zealand and the British Isles are also islands with booming tourism, but are not necessarily the first place a tourist thinks of for lying on a beach and soaking up some rays while sipping an exotic, tropical island cocktail.

These islands have something unique to offer tourists: culture.

Spanning the globe from the Mediterranean to the western shores of the Atlantic all the way to Australasia and East Asia, the people who inhabit these islands are proud of their history and culture and find creative ways for sharing their enthusiasm with visitors – museums and heritage centres, a multitude of dining and shopping experiences, and nature-loving tours and excursions.

These islands represent some of the best destinations for soaking up – not just sun rays – the local culture and atmosphere by simply being on their shores.

Observe the architecture, listen to the locals speaking their native tongue and going about their day-to-day lives, partake in the local cuisine, and if you’re lucky enough to be visiting during a festival of some sort, be sure to participate!

© SXC.HU / PADDYISGOD

Visit before you buy. This is true even if you live a long way from the location you’ve selected for your investment.

All too often on typical island resorts, there is a manufactured feeling and it almost seems like you could be anywhere on earth. A cultural island, for lack of a better term, lets you know beyond a shadow of a doubt that you are in a foreign country and does its best to let the tourists in on their way of life.

For a foreign investor seeking high rental returns, this type of holiday destination appeals to a different type of rental market than typical island getaway scenarios, but nevertheless has a tourism industry that is just as large, providing strong rental-return value.

HOLIDAY HOME INVESTMENT ADVICE Regardless of the destination, engage the services of local professionals, from an attorney to an estate agent, even perhaps a financial advisor. Seasoned professionals who are familiar with the local market are the best qualified to help a foreign investor and advise on investment opportunities.

Visit before you buy. This is true even if you live a long way from the location you’ve selected for your investment. Most estate agencies, especially reputable ones, offer inspection packages. The cost of the flight and stay are also often deducted from the deposit or cost of the property if you choose to buy, or are even paid for by the developer or estate agency for those who have already put down a deposit.

Remember infrastructure. This is perhaps the most important aspect of a sound holiday home investment because if your renter cannot reach your holiday home, they simply will not come.

Consider tourism. Your rental market, and therefore rental yields, is heavily influenced by the tourism season, so in addition to studying property market trends, study climate factors and tourism reports as well.

Holiday home investments are just as diverse as the markets they represent, and offer some of the best rental returns available. There are indeed many ways to look at an island – from cosmopolitan city living to laid-back beach resorts to more culturally focused experiences – but the practices of a sound investor will always be the same: do your homework and consult local professionals.

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Turns out, there are as many islands around the world as there are people in all continents. Okay, that’s an exaggeration. But the thing is, people have an infinite number of options when looking to purchase their next island home: there are island financial centres (Manhattan, Hong Kong and the British Isles), tropical vacation spots (Ko Samui, Phuket, Bali, or the Bahamas), cultural and historical lands (Crete, Penang and Cyprus), and even mythical (Middle Earth, err, New Zealand).

In short, there is certainly a type of island to suit every taste (and investment purpose).

KO SAMUI

LATE BLOOMER Considered a late bloomer in the paradise-island business, Ko Samui is quickly becoming a favourite of affluent property hunters. By Rodel Ambas Jr.

A

n island that was isolated until the late 20th century and without roads as recent as the 1970s (story has it that it takes an entire day to trek from one side of the island to the other through its mountainous, densely forested interior), Ko Samui might be considered a late bloomer in the paradise-island-tourism scene.

Ko Samui’s backstory is a bit The Beach-esque. Adventurous Western backpackers aboard rafts stumbled upon the unspoilt tropical paradise in the 19070s.

Word got out, and by the 1980s tourists began arriving, first in trickles, then in

22

hordes. When the island’s only airport opened in 1989, its tourism industry made a staggering turn. It is now Thailand’s second most popular island destination, after Phuket, and it has much more to offer in terms of property investment. Being a resort island means vacation homes are the bread and butter of Ko Samui’s property market. And here buyers are spoilt for choice.

According to Harry Bonning, managing director of Ko Samui Properties, the island’s vacation-home market generally falls into four main categories: high-end luxury hotels, middle range hotels, budget hotels and private villas.

ISOLATED NO MORE Beach-front property in Ko Samui's upscale Maenam area.

He said that the upper end of the market has traditionally performed well, due in part to the lack of low-cost airlines flying into Samui. Hence the island’s main visitors are pretty much cashed up.

In addition, luxury private villas continue to attract good occupancy and there are now a number of specialist companies providing both management and marketing services on the island, said Bonning.

At present, there are a number of high-quality villas currently available in various locations on Ko Samui, from beach front to ocean view, from the quieter south and west to the busier areas of Chaweng, Lamai and the Bophut Hills.

Bangkok

THAILAND

ISLANDS F E A T U R E KO SA MUI

MYANMAR

© PHOTO COURTESY OF THE RESIDENCES AT W RETREAT KOH SAMUI

Gulf of Thailand

However, as vacationing people want to be simultaneously near a beach and not too far from a decent selection of restaurants, the beaches of Chaweng (through highly commercialised) and Lamai and the relatively tranquil Choengmon are ideal destinations for vacationers. Consequently villas within easy reach of these locations tend to attract both higher rates and higher occupancy. Another good investment option, according to Bonning, is some of the managed developments, especially where the developer lives on site and takes a personal interest in the dayto-day management.

Although infrastructure problems have pestered Ko Samui for many years, the Thai government is looking into ways to address these. One recurring criticism of the island is the monopoly of Bangkok Airways with air travel and the consequent comparatively high price of air fare to the island. As building a second airport may not be feasible, a study suggested that an airport at Don Sak on the

CAMBODIA

Ko Samui has an area of 228.7 square kilometres, and is about 25 kilometres at its widest point. Its interior is lush tropical rain forest and its highest point is about 635 metres above sea level.

The island is surround by about 60 smaller islands, which comprise the Ang Thong Marine National Park and include the popular islands of Ko Phangan, Ko Tao and Ko Nang Yuan.

A buyer’s guide Similar to many other Asian markets, a foreigner may only own a condominium in Thailand under his or her name. However, if a foreigner wishes to purchase land and build a villa or house on it, the legal way is to enter a long-term lease on the land, typically 30 years initially, and include an Option to purchase at an a reed fi ure s ould forei n owners i of land become legal in the future) or extend the lease for another 30 years.

The important point is that an Option is purely contractual between the parties; hence, it is necessary that all parties are present when this is e ercised owe er as it is difficult to redict

mainland, just a short boat ride away to the island, may be a better option.

According to Bonning, additional funds have also been injected to boost its image, such as a THB20 million tourist information centre, a THB40 million flood prevention project, and a THB13 million environmentally friendly garbage disposal project, among others. These are in addition to current road drainage and resurfacing projects already in hand, and a new transformer station and transmission cable from the mainland to cover supply issues for the foreseeable future.

The most significant event on Ko Samui according to Bonning was the government’s decision to upgrade its status into that of a city, which significantly increased its tax revenues. Slowly the island’s infrastructure is improving. High-speed internet is available in almost all areas. Global hotel chains, too, have taken notice. Starwood will open the 80-room Vana Belle in January, while Mövenpick will unveil its 81-room property later in 2013.

VIETNAM

who will be around in 30 years, the solution is to ensure that the Option agreement is binding on heirs and successors of both sides.

Many developers nowadays are offering 30+30+30 years Option, which strictly speaking is not correct as a second extension is not enforceable. They get around this, however, by giving the buyer shares in the underlying landowning company, which is the other party to the Option agreement. Therefore, a lease from a land-owning company of which the buyer is a shareholder is more secure than a lease from an individual.

In addition, the foreigner must also apply for a permit to build a house under his or her own name. This way, he or she owns the house and has a long-term lease on the land on which the structure sits. As with purchasing properties anywhere, pay for a good lawyer and do not settle for the cheapest choice.

Things to consider Bonning advises prospective buyers to look at investing in a Samui property the same way they treat any investment.

1 Be clear on the reason for buying. Is it purely investment, a vacation home with holiday lettings, or for retirement?

2 Be sure you know where you want to be.

Bonning recommends that someone who wants to come to live on the island should rent for at least six months to get a better idea of where they want to be and if indeed island life is for them.

3 ommit for at least fi e years uyin and selling in a short period of time will usually lead to a loss.

4 Understand the visa requirements to ensure you can make full use of your property as and when you need to.

5 Practise due diligence. You cannot do this without a lawyer and there are some good ones on Samui. Do not choose the cheapest.

Talk to two or three and decide with whom you are comfortable with.

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KO SA M U I

W H AT TO B UY

three of which are bungalows set around the pool and the two others are situated in the main house.

SAMUJANA

The property comes with full-time house help, chef, a whirlpool bath, a sauna, plasma TVs, surround sound systems, WiFi and bilingual concierge services. Attractions located nearby include the Samui Zoo and Aquarium, elephant trekking to Namuang Falls, island boat trips and high-end hotels, spas and restaurants.

Located at the north-eastern corner of Samui and mere minutes away from the airport is Samujana (from US$2.75 million), Gfab Architects-designed villa development scheduled for completion in May 2014.

This project will boast 26 villas, each sitting on more than 1,843-square-metre plot and tailored to its unique topographical conditions and the requirements of the individual owner. Each villa will have a private swimming pool; an average of 450 square metres of living space; four bedrooms with en-suite bathrooms (a study converts into a fifth bedroom); floor-to-ceiling windows; and private terraces. Each bathroom has a generoussized bathtub and walk-in shower, as well as an outdoor showering area.

Meanwhile, the villa’s open-plan kitchen is fitted with modern amenities and overlooks the infinity pool, and a fully equipped audio-visual room is equipped with a plasma screen television and surround sound system.

Rocks excavated from the site were used to form a major part of the cladding. In addition, materials used were selected for cost, proximity to the location and skill levels commonplace on the island. The villas’ colour palette is kept very simple: local black slate for the wet areas and pools; rough terrazzo floors, and painted plaster, which are accentuated with the sparing use of local timber for decks, doors and windows.

For more information, visit kosamuiproperties.com

VILLA AMA LUR Located in the far southwest of the island is Villa Ama Lur, a five-bedroom beachfront luxury property in Thong Krut. The area is also home to five-star properties, such as Nikki Beach, The Conrad and the Kamalaya. Each of the US$2.95 million villas boast 1,200 square metres of living spaces and a 125-square-metre swimming pool that leads directly to a white-sand beach. It has five bedrooms, © PHOTOS COURTESY OF KOSAMUIPROPERTIES.COM

24

For more information, visit kosamuiproperties.com

BOPHUT VILLA This US$1.12 million villa situated in Bophut Hills in the north-eastern side of Samui is mere 20 minutes from the airport and very close to the nine-hole Bophut Hills Golf Course. Sitting on a 1,600-square-metre plot, this open-plan property has a total of 640 square metres of living spaces. A separate pavilion contains two guest bedrooms with en-suite bathrooms, a large living room on the upper level, and a spacious terrace with a dining table. The master bedroom is on the second level of another pavilion, which also has another guest bedroom downstairs. Outside the master bedroom is a large terrace with four sunbeds and umbrellas. All the bedrooms have airconditioning.

For more information, visit kosamuiproperties.com

THE RESIDENCES AT W RETREAT KOH SAMUI At the northern coast of Samui is the popular Maenam area where you can find The Residences at W Retreat Koh Samui, an integrated resort development comprising a 73-pool villa hotel and 19 private residences for sale. The residences are priced between US$2.17 million and US$6.86 million and will be managed by Starwood’s W Hotels.

The residences (three-, four- or five-bedroom villas) were completed in 2012, and Starwood will make the rental program (which is entirely optional) available to residence buyers when the entire residential project is 100% complete.

For more information, visit kosamuiproperties.com

PHUKET

© TOURISM AUTHORITY OF THAILAND

MEASURED SUCCESS An island once again ripe for investment. By Rodel Ambas Jr.

S

tories have it that if you had come to Phuket in the 1930s, you would have not recognised it: scattered across the island’s countryside were muddy craters left behind by its lucrative tin-mining industry. Global demand for tin ensured that Phuket for decades had a steady source of income.

But the mines were not to last forever.

By the 1980s demand for tin abruptly died, mainly due to the discovery of other areas where the mineral could be easier and cheaper to exploit. The mines closed, and Phuket had to look for an alternative source of income. Fortunately it didn’t need to look so far. After all, the island is also known for another commodity: miles upon miles of stretches of white sand that meet the turquoise water of the Andaman Sea. All it needed to do was to build hotels and resorts where people can stay.

LIFE AFTER THE DISASTER Phuket's market is once again ripe for investment 8 years after the Indian Ocean Tsunami.

And build it did. By the late 1980s and early 1990s property developers who wanted to cash in on the island’s booming tourism industry came in hordes. Long stretches of sand along Phuket’s western shores – Patong, Karon and Kata – were heavily developed and promoted. Aside from hotels and resorts, private houses, condos and villas were built. Tourists took notice; many stayed for good.

The island over the last two decades has built up a reputation as Asia’s premier island holiday destination. Its infrastructure has improved leaps and bounds in recent years, said Phuket.net Real Estate’s

Kit Fordham. ‘The island now has international standard hospitals, schools, marinas and excellent retail malls.’

It is now perhaps Thailand’s most wellknown tourist spot after the capital Bangkok. Its airport is the country’s second busiest, receiving passengers from as far as Moscow and St. Petersburg. An industry closely tied to tourism, Phuket’s real estate is also booming. But this does not mean that everything went smoothly. The Asian Financial Crisis in 1997 restricted growth. Then the Indian Ocean Tsunami in 2004 caused devastating damage. In 2008, a financial downturn took its toll and caused another major blow to a then barely recovering market.

But if there’s something that was learned from the crises, it’s the market’s newfound pragmatism and maturity. According to CBRE Thailand managing director Aliwassa Pathnadabutr, Phuket’s

25

Bangkok

THAILAND

PHUKET

MYANMAR CAMBODIA

A buyer’s guide To get around ownership restriction, many foreign buyers opted to set up Thai companies solely to buy land in Thailand. This loophole, however, is now being closed. A legal way is to enter into a long-term lease on the land: 30 years initially and include an Option to purc ase at an a reed fi ure s ould forei n own ership become legal in the future) or extend the lease for another 30 years (see page 23 for more details).

A foreign buyer must also apply for a permit to build a house on the leased land under his or her own name, to ensure that he or she owns the structure and has a long-term lease on the land on which it sits. As always, make sure to hire a reputable lawyer.

In addition, it is legal for foreigners to own shares in a condominium project, as long as more than half of the development is owned by a Thai entity.

Gulf of Thailand

VIETNAM KO SAMUI

Roughly the size of Singapore, Phuket is both an island and a province located about 860 kilometres south of Bangkok. Aside from the main island, 39 smaller islands and islets comprise the province, the most popular of which are the Similan and Phi Phi Islands.

property market before the crisis was dominated by small players, many of whom were less well-funded and, therefore, ill-prepared to deal with financial shocks. ‘When the crisis hit, many of their projects were put on hold.’ Phuket, however, has once again proven its resilience. Gradually its property market became once again ripe for another phase of positive development, said Pathnadabutr, driven mainly by the arrival of established developers, both local and foreign.

‘There’s a newfound energy characterised by changes in the key players, the products on offer, and the buyers’ profile.’

An observation shared by Phuket.net Real Estate’s Kit Fordham. ‘Although the island’s property market remains challenging, 2012 saw a marked improvement over the previous four years since the start of the financial downturn in 2008.’

The island’s market is driven by a mainly cash-only group of overseas buyers, which sort of cushions the island from major financial shock from outside. And with the continued growth of the island’s tourism industry, as indicated by recordhigh arrivals at Phuket International Airport, the outlook for 2013 is very positive.

ties with sea views are always in demand.

Another important factor is distance to the beach. ‘If you’re within 5–10 minutes’ walk to the beach it can be a huge advantage.’

The island’s west coast (Patong, KataKaron, Kamala, Surin, Bangtao, Layan, and Nai Harn) offers the greatest demand for both sales and rentals.

There are plenty of available options, too. However, as Thailand’s ownership laws specifically prohibit any foreigner owning land in the country, the obvious choice is condominiums. Here the island has plenty to offer. Examples include branded properties such as Laguna Phuket’s Lofts at Bang Tao Beach and Mövenpick’s Residence on Karon Beach, or local brands Royal Phuket Marina in Phuket City and The Heights in Kata.

But beach villas operating under a well-known brand are also available on a leasehold basis (usually 30 years with an option to extend for another 30 years).

Leading the pack is Banyan Tree with its multimillion double-pool villas within in Laguna Phuket integrated resort. Other major players include Amanpuri, Sheraton, Dusit and Raffles, among others.

HOTSPOTS

CHALLENGES

‘With regards to vacation properties you have to keep in mind that the best locations are those that are most attractive to holidaymakers,’ said Fordham. ‘Proper-

Besides a volatile economic climate, Phuket’s biggest battle is in the environmental front. According to Fordham, the island is walking a thin line between pre-

26

serving its natural environment and at the same meeting its growing infrastructure needs to maintain growth.

‘Infrastructure is being improved to cope with Phuket’s growing population and tourist figures, such as the airport expansion and renovation, but unfortunately environmental issues are not given the same priority,’ said Fordham.

But there have been achievements.

One is an initiative between local NGOs and government agencies called SEEK (www.myseek.org), which has done a lot to promote environmental issues. ‘But the government could do a lot more,’ said Fordham.

There is also a recent crackdown on encroachment of national park land around Layan and Naithon. ‘However, this has stalled and we have to wait and see whether the government will follow through on its promises.’

‘Law enforcement by local authorities to control and manage development is still a major issue. We are still a long way off from real change but in the last couple of years there has been more public debate on these issues, which can only be a good thing.’

Fordham added that periodic crackdowns cause more damage than benefits to the image of the island’s property market. ‘What we need is consistent enforcement of the laws already in place so that everyone knows where they stand.’

PHUKE T

PHOTOS COURTESY OF WWW.PHUKET.NET

WH AT TO B UY Sitting on a U-shaped land in Surin Beach (15 kilometres north of Patong) is a threebedroom, US$825,460 villa that combines Asian architecture with modern conveniences.

All bedrooms have en-suite bathrooms. The master bedroom and the dining area have views of the 60-square-metre infinity pool.

It has a spacious L-shaped patio that provides ample room for outdoor entertaining, and an open-plan dining area leads to a fully equipped kitchen. The property sits in a small (940 square metres) gated community of only eight villas. The property boasts spacious double parking and 24-hour security (www.phuket.net).

Then there’s the US$3.15 million luxury villa in Surin hills for the well-heeled. Meticulously looked after by the original owner, this villa has a functional layout set over four

levels. The living areas’ high cathedral ceiling give a feeling of expansive space coupled with panoramic views (courtesy of floor-to-ceiling windows) of the Andaman Sea.

Set on a 2,400-square-metre land, the villa features indoor and al fresco living areas, six bedrooms with en-suite bathrooms, twin kitchens, storage areas, and a swimming pool with surrounding terrace space for entertaining and open-air sala.

course, leisure activities, restaurants and boutiques is also nearby.

Each of these pool villas has over 300 square metres of usable area, two to four bedrooms (all with en-suite bathrooms), open-plan living and dining areas, private pool and a covered carport. Price starts at US$380,420.

Entrance to the property is through either a private gate or the electronically controlled gates to the covered double car park.

Situated on a hillside in the Kata area are 219-square-metre condominium units overlooking the Andaman Sea. Ideal for holidaymakers and expatriates, this property is just five minutes from the beach and very close to many of the area’s dining spots.

The location of these pool villas is ideal both for an investment property and permanent residence. Layan Beach is a mere 3-minute drive, while the Laguna Resort Complex, which boasts an 18-hole golf

Each apartment has two bedrooms, spacious living and dining area, fully equipped kitchen, two bathrooms and large terrace with an unobstructed view of the Andaman Sea. Prices start at US$860,414.

For more information about these properties, visit www.phuket.net

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MANHATTAN

GLOBAL ISLAND Simultaneously cool and brassy, Manhattan has some of the world’s most sought-after pieces of real estate. By Jennifer LS Harrison

T

hose who live in Manhattan believe that anyone who doesn’t live there must be envious. They’re probably right. More than a place where super stars and the super wealthy rub elbows with struggling actors, it’s a place where monuments and neighbourhoods are famous in their own right: the Metropolitan Museum of Art, the Statue of Liberty, Rockefeller Center, Wall Street, SoHo, The Village, Broadway, the Yankees, the Mets. Manhattan is New York, New York – the most sought-after brand name of all the property markets in the world. And everyone is always in a hurry, so pick up the pace.

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THE PROPERTY MARKET As a brand, Manhattan is cool. Honestly, would you rather have an apartment in Melbourne, a city regularly voted the most liveable in the world, or an apartment in Manhattan, a city widely recognised as the most exciting in the world?

That’s what I thought.

The island of Manhattan sits at the mouth of the Hudson River and is one of the five boroughs of New York City, although it also includes the smaller islands of Roosevelt, Ellis, Randall’s, Ward’s, Governor’s and Liberty (home to the Statue of ).

Even with the recent economic woes to hit America, a 2012 Cushman & Wake-

FINANCIAL POWERHOUSE Manhattan indeed never sleeps. And neither does its real estate market.

field study showed that Manhattan’s property market saw the highest volume of residential property transactions in the world: US$34.7 billion.

Although not immune to economic fluctuations, it would seem that regardless of the current financial climate in the USA, buyers, especially foreign investors, still bank on the Big Apple for investment returns.

In fact, the New York Times reported that in just the last three months of 2012 there was a 40% increase in the number of sales on the island, virtually drying up the stock. The reason, they say, is the new tax laws due to come into effect on 1 January 2013.

MANHAT TAN

especially if in a situation to drive in and ‘park’ their money.

Rental yields can vary across Manhattan, but generally fall within 4.5% to 6% before taxes, or 3.5% to 5% after taxes.

Unlike many other large property markets, it is better in Manhattan to consider the overall appreciation of the property prices rather than immediate rental yields. While net profits from renting should exceed operating and financing costs in the short term, the ultimate goal in Manhattan is the long-term appreciation of the property.

© ARIF V.A.

PROPERTY AND TAXATION

Wei Min Tan, Managing Director of Castle Avenue Partners at Rutenberg Realty in Manhattan, clarifies: ‘There has been inventory shortage especially in the condo segment which foreign buyers typically buy. According to stats, inventory level for condos decreased by 37% in Q4 2012 vs. a year ago.’

Tan, however, concludes that this shortage ‘is not related to the fiscal cliff tax issue. It’s simply supply versus demand. Less people are selling, perhaps because they realise the value of their Manhattan property now that the economy has improved. For buyers, there is a buying frenzy driven by the economy and low interest rates.’

Property prices in Manhattan are still lower than before the recession; however, this means that, regardless of American taxation law, it’s still a buyer’s market in terms of investment. Experts generally believe that foreign cash investors are likely to additionally boost property prices further in 2013.

And foreign buyers especially need have little to no concern with the new 2013 US tax laws.

Timothy Wong, Esq, a Manhattan-based CPA explains: 1

The tax changes should not impact the vast majority of foreign buyers buying US$1–5 million condos.

2

The new tax deal increases capital gains tax (a seller item) for individual filers with taxable income of US$200,000 and above, and further filers with US 00,000 and above.

3

Since most foreigners would only have US income from their New York rental property, their taxable rental income would not come anywhere close to US$200,000 because taxable income is net of carrying costs and depreciation.

RENTAL RETURNS The Federal Reserve Bank of New York believes that there is currently better financial value on the island for renting than for buying, stating that there is less value in owning a property. This is because the overall price of apartments has increased relative to rental prices. If the locals are renting instead of buying, however, then now is the time for a foreign investor to jump in and take advantage,

The options for investing in a Manhattan property are typically with apartments, either a condominium or a cooperative. Most foreign investors choose condos because of their long-term appeal and appreciation values, and because buying into a co-op requires approval from the co-op board. Either way, an apartment is easier to maintain as an investment as opposed to other multifamily homes, which include brownstones and town homes.

Annual Operating Tax: taxes of profits from a rental property. Requires a 40% deposit.

Estate Tax: regulates the tax payment in the event the owner of the property dies, which can be as much as 50%.

As always, good financial planning can help decrease any risk and it is advisable to employ the services of a qualified Financial Advisor or Planner, in addition to the services of a local Lawyer or Attorney.

And of course you will need an Estate Agent: In Manhattan the Agent’s fees are paid by the seller, although it’s not uncommon for negotiations between the buyer and seller agents to split the commissions. Nevertheless, one agent cannot represent both buyer and seller and so it is important to hire your own.

Rather than working with multiple agents in order to find the best deal, however, find an agent you like, who comes highly recommended, and works hard for his or her commission. America, including New York, uses a Multiple Listings Service (MLS), which is a database of all properties for sale in the entire country – all agents have access to all listings.

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M A N H ATTA N

Highlights of some of Manhattan’s most notable neighbourhoods:

Manhattan is the smallest among the five boroughs of New York City. Its population of more than 1.5 million people live within an area of 59.5 square kilometres, making it one of the most densely populated areas in the world.

Upper West Side Including Central Park West; it’s posh and expensive.

Midtown West Higher crime than you might like, and plenty of buildings using asbestos insulation.

Harlem Improving.

Hell’s Kitchen A bit rough and tumble.

Chelsea Areas of loveliness and areas of crime.

It’s a pickem.

A buyer’s guide Financing/pre-approval.

If borrowing money to purchase a property (or two), a buyer must start by getting pre-approval from the lender to show an estate agent and potential buyers that they truly have the means to follow through with the purchase. It is unlikely that anyone will take a buyer seriously until pre-approval is shown. If cash is used instead of a mortgage, the buyer will still need proof of purchasing power, such as a bank or tax statement.

Make an offer.

Once a property is found (using an a ent alt ou it is ossible to find properties being privately sold), an offer is made and then negotiated.

Contract/deposit.

A binding contract is formed by both the buyer’s and seller’s attorneys and a deposit of normally 10% (although as much as 20–30% for foreign buyers) is placed into a trusted third-party account called an ‘escrow’ account.

It is a good idea to include a clause in the contract that allows for a professional inspection of the property so that they buyer may pull out of the deal if t e ins ector’s findin s ro e too problematic for the buyer.

Appraisal.

An appraiser gives the market value of the property and a title search is performed to ensure the property is free and clear to be sold.

Closing.

Finally a closing is scheduled where all interested parties and their representatives come together, sign a lot of paperwork, and transfer the title and funds (including the deposit held in escrow).

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Upper East Side Quaint, affordable, with access to retail and dining.

Greenwich Village (‘The Village’) Upper middle class residences with lots of student housing.

Everything you’d expect from NYC, and therefore expensive.

Midtown East Expensive because it’s convenient. Busy during the day and quiet at night.

SoHo Bars, restaurants and retail, but quiet at night.

Tribeca (Triangle Below Canal) Hip, trendy, safe, expensive and lots of loft spaces.

Chinatown The largest regency of Chinese immigrants in the West.

East Village Nightlife abounds.

Expensive, trendy, close to New York University.

Lower East Side Quintessentially NYC with diversity, noise, and more affordably priced housing.

Financial District Crowded by day and empty at night. Safe.

W HERE TO BUY This is an impossible question to answer because there are far too many variables in the equation. Up-and-coming neighbourhoods may offer the highest investment returns, but it’s hard to say what is coming up and how long it be before a neighbourhood is considered ‘up’. Established neighbourhoods often offer better rental-return value and are a lower-risk option, but it can be difficult to find property for sale, especially in the current market.

Options include Uptown and Midtown as well as places in between Uptown and Midtown. Or you can go Downtown. And then there are the Islands. There is far more to Manhattan than a list such as this can ever show.

Native New Yorkers will attest to anyone willing to listen about the virtues of what they believe is the greatest city on earth, and foreign buyers are listening – and swarming to the city for investment in record numbers. Perhaps they want to be ‘cool’ or perhaps they seek a sound investment in property. Either way, the Manhattan investor wins.

MANHAT TAN

THE ALL–ACCESS

TRANSPARENT PROPERTY

MARKET OF MANHATTAN Manhattan is likely the most efficient real-estate market in the world.

By efficient, I’m referring to property prices that fall in line with fundamentals, and to buyers and sellers both transacting (setting sales prices and making bids) at around the right price. WHY IS IT EFFICIENT?

By Wei Min Tan

ALL ACCESS Firstly, in Manhattan, as in the USA as a whole, everyone has access to the same inventory of property for sale. This is sometimes referred to as an ‘MLS’ system.

In Manhattan, the MLS is technically the REBNY (Real Estate Board of New York) database or simply, the broker database.

Within 24 hours of getting a listing from a seller, the seller’s broker is required, by law, to list the property onto the broker system. This is then transferred to other systems and consumers have access to the broker system through their broker’s websites. In lieu of viewing through the broker system, there are also third-party websites such as Streeteasy.

In many countries, different brokers have access to different properties and this explains why buyers need to work with several brokers. However, in New York and in the USA, all brokers have access to the same inventory. Even the consumer has access to everything. In addition, everyone has access to historical data for analysis.

This makes the Manhattan market not only efficient but transparent.

As such, the value of a broker is not to make viewing appointments. If that were the case, it’s regrettable. Rather, a New York broker has two roles: Filter the right properties. Although the consumer has access to all inventory, everything looks great in pictures and published data only tells a fraction of the story. Unless the consumer walks the streets looking at properties every day, there is absolutely no way to know which

is a good property. Brick-and-mortar investments need to be seen in person and touched to be understood. As an example, online listings will not tell the downsides of each apartment.

Manage the whole transaction. This refers to price and terms negotiation, attorney and accountant coordination, board package, walk through, etc. There are tens or even hundreds of hours of behind-the-scenes activities that brokers do beyond property viewing and showing up at the closing table

FEWER INVESTOR BUYERS The majority of Manhattan residential apartments are purchased by locals for use as a primary residence, and there is less of an investment frenzy like in the emerging markets. For example, if one goes into a dim sum restaurant in Hong Kong, it’s not uncommon to see several people studying the real estate section of the newspapers.

In Manhattan, investing in real estate is not something every other person does. With fewer investors driving up prices, the market becomes less volatile and more stable.

A market becomes volatile when there are too many investor buyers. It becomes even more volatile when investors disregard the fundamentals of investing and key metrics.

In certain markets, prices keep going up despite high vacancy rates and no yield.

Investors buy because they think property prices will always go up. Until one day it pops.

In Manhattan, the proportion of investor buyers is a lot lower. This keeps fundamentals in check and is another reason why pricing in Manhattan is efficient.

HIGHER BARRIER TO ENTRY During the last property boom, people from California were going to less expensive states like Texas and Nevada to invest and, hence, drove up prices dramatically.

The lower the barrier to entry, the less likely the investor would do a lot of actual work. Actual work here means going to see properties, speaking to people, getting to know the market, etc. The easy work is reading data online. Many investors, because of the low barrier to entry, just researched online and go on one- or two-day shopping trips to the less expensive states to pick up not one, but a few properties!

In Manhattan, condo prices start at US$500,000 for a studio apartment. There is a lot of due diligence beyond just reading data online. The vast majority of my clients are sophisticated, savvy financial people. They have already read everything there is to read online. Then they come and see properties, spend hours walking the neighborhoods, eat at the local places, etc. All this while drilling their broker with tons of questions because they know someone who has seen thousands of properties likely knows more than the local friend who last saw apartments three years ago when he bought.

There is a tremendous amount of time invested in analysis before finally making an offer and doing a deal. This is a very important reason behind market efficiency.

Manhattan is perhaps most efficient in the US$500,000 to US$5 million price range. Above which the emotional aspects of ultra-wealthy buyers start coming into play: they may love the 50th floor Central Park view, for example, or definitely want an apartment in a certain building, etc. Since 90% of transactions are up to the US$5 million mark, it is good representation of the market being efficient as a whole.

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BALI

QUINTESSENTIALLY INDONESIAN Overbuilt may come to mind when one is reminded of Bali. But the island still offers plenty of idyllic spots for investment. By Rodel Ambas Jr.

A

rguably one of the world’s most famous islands, Bali has seen its vital tourism industry boom, dwindle, and thankfully recover in just a span of a decade. The long-time favoured weekend retreat by high-networth Singaporeans, according to Savills, its unique cultural landscape, shaped by its major religion, Hinduism, coupled with stunning coasts, lend Bali a unique ambience not seen anywhere in Indonesia.

As an offshoot of the tourism industry, Bali’s property market, particularly the high-end segment, has weathered the economic downturn fairly well. According to Elite Havens’ managing director Matthew Georgeson, this is because fi-

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RUGGEDLY PICTURESQUE High-end developments characterise Bali’s Bukit Peninsula © PHOTO COURTESY OF ELITE HAVENS

nancing is not available to foreign buyers, making a big percentage of transactions cash-based and helping stabilise the market in times of recession.

At the same time, Indonesia’s robust economy (GDP grew 6.17% year-on-year to Q3 of 2012) has encouraged locals to invest in real estate, many of whom prefer condos and condotels carrying wellknown brands like Novotel (where foreigners are the major purchasers of villas).

The market also benefitted from improvements in the island’s infrastructure, such as the construction of several highways that make far corners of the island more accessible and the expansion of the Ngurah Rai International Airport. Savills’ James Cook described Bali real estate as ‘booming’ and that investors are confident that the island’s market will continue to flourish.

According to Gede Semadi Putra from the property committee of the Indonesian Chamber of Commerce in Bali, land demand for hotels, villas and condotels is booming, and the supply of land is decreasing. As a result, land prices are extremely high, especially in the popular areas of Seminyak, Jimbaran, Kuta and Legian.

Elite Havens’ recent Bali Property Update indicated that the island is considered

MALAYSIA SINGAPORE BALI

BORNEO

Bali lies 3.2 kilometres east of Java, Indonesia’s most populous island, and is approximately 8 degrees south of the equator. East to west, the island is approximately 153 km wide and north to south 112 km; its land area is 5,632 km².

With a population of close to 500,000, Denpasar is Bali’s largest city and provincial capital. The island’s second largest is the old colonial capital, Singaraja, which is located on the north coast and is home to around 100,000 people.

Three small islands lie to the immediate southeast and all are administratively part of the Klungkung regency of Bali: Nusa Peni.

SUMATRA

Java Sea

Jakarta

JAVA

BALI

A buyer’s guide

a safe location for investment amidst the global downturn. The price of land in Bali showed an upward trend during the first semester of 2012, with an average increase of 28% in a number of strategic locations. At 43%, 2011 recorded the highest percentage increase.

‘The price will continue to show an upward trend through the rest of this year, both in coastal and non-coastal areas, and is predicted to record a higher increase compared to previous years,’ said Georgeson.

LOCATION, LOCATION, LOCATION Real estate’s old adage is generally true in Bali. Locations in the island have a fairly rigid pricing structure because it is a strictly cash-based market. According to Elite Havens, price is driven by desirability: stunning views and proximity to the beach and to shopping and dining spots.

Kuta, an administrative district located at the south of the island, near the airport, was the ‘in’ spot in the 1970s. It rapidly became commercialised; hence, by the end of the decade it had become a small city and a backpackers’ mecca. Heavily built up, it is home to a large collection of budget and mid-range accommodations and a few desirable residences.

The greater Seminyak Area (Legian, Seminyak, Petitenget and Batu Belig) is where expats moved to when Kuta became too noisy. Though the area has seen considerable commercial development in recent years, which led to escalating property prices, it is still the destination of choice of discerning holidaymakers, due to proximity to upscale bars and restaurants and boutiques and specialty shops. As a result, Seminyak remains one of the most desirable places

to buy, especially to thoes who intend to rent out the properties when they are not in residence themselves. According to Elite Havens, non-beachfront land in this area is now commanding prices of US$155,440 per Are (Are is a metric unit equivalent to 100 square metres; hence, a hectare has 100 Are).

Further north are the areas of Tanah Lot and Seseh, where interior plots are offered at cheaper prices. According to Elite Havens, these areas are for longer -term investment consideration, though it is predicted to see steady growth as infrastructure is improved. In particular, prices of interior plots in Seseh increased 20% in 2012, while those in Tanah Lot remained stable after surging 33% in 2011.

Bali’s cultural capital Ubud retained is tranquil ambience despite the massive developments around it. It is home to a fairly large expat community more interested to true Balinese culture, not to mention a string of well-heeled visitors in recent, including Hollywood celebrities.

The area’s abundant natural attractions – a rain forest, rice terraces, rivers, hills and valleys – have provided a good setting for a large number of high-end boutique resorts and spas, chief of which is a Four Seasons resort in Sayan.

A great area for families, Jimbaran is the curve of coast near the southernmost tip of Bali. Its white sand beach is pretty and safe and it’s close to the airport (though not affected by aircraft noise).

Though it has no nightlife to speak of, it’s just a short drive away from Kuta or Seminyak. It is also home to several popular hotels such as the Four Seasons and the award-winning Ayana Resort & Spa.

As with any purchase, it is important to understand how Indonesian property laws work. However, as with many other markets in the region, Indonesia’s is very confusing to foreign buyers.

Can foreigners buy property in Indonesia? The answer to this is ‘it depends on the title of the land on which the property sits’, says Anton Sitorus, head of research at Jones Lang LaSalle Indonesia.

According to Sitorus, there are two fundamental rulings for foreign property ownership in Indonesia: the Basic Agrarian Law of 1960 (UU Pokok Agraria Tahun 1960) and Government Decree #41 of 1996.

The Basic Agrarian Law is Indonesia’s main law concerning land ownership and includes a section about ownership by foreign individuals and institutions. It says that a foreigner who resides in Indonesia is allowed to own a residential property built on land with a ‘Hak Pakai’ (right of use) title. Further, Government Decree #41 of 1996 stipulates that the maximum period for ‘Hak Pakai’ ownership is 25 years, which can be extended for another 20 years.

On this basis, a foreigner is legally allowed to buy, for example, a house that is built on a single parcel of land, but they must convert the title of the property to a ‘Hak Pakai’ title to comply with the laws.

Things to consider 1 Make sure to set your budget and stick with it.

A little e ibility won’t urt but be realistic and onest wit your financial standin 2 Know the market really well. Try renting a place in Bali to get a feel of the island and build relationships with agents, lawyers, etc., over time. Make sure that your needs are completely understood.

3 What are your reasons for buying a property?

Investment? Vacation home? Both? If you plan to stay a couple of weeks a year in the property and rent it out the rest of the time, then a managed resort-type property may be for you.

4 Don’t compromise your requirements. Keep loo in until you find t e e act ro erty t at sat isfies your s ecifications 5 Make sure that your agents and representatives understand the legal matters and have them explained to you. Never rush into anything without understandin first e eryt in you need to now

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BALI

W H AT TO BU Y Perhaps being overbuilt gives Bali an advantage over other established island property markets in the region.

Here buyers have plenty of options, from exciting cliff-side villas to tranquil retreats.

SOUTH BUKIT Example is a top-end cliff-front villa within an exclusive estate. Located in South Bukit (merely 25 minutes from the airport) on the extreme southern

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tip of Bali, this five-bedroom villa has stunning views of the Indian Ocean. It is situated within an exclusive estate limited to just seven custom-designed villas with over a hectare of member facilities.

In addition to in-villas services, owners also have access to various amenities within the estate, such as a helipad, two tennis courts, professional putting green, a cliff-top restaurant, a 28-metre swimming pool, a gym, spa and a beach

club, the latter can be accessed via a private funicular rail. The villa, which has a total area of 722 square metres, sits on a 2,500-square-metre freehold land, and offers good potential on rental yields and capital appreciation.

Also in South Bukit is another six-bedroom, cliff-side villa that sits 90 metres above a white-sand beach. This contemporary-designed property boasts indoor and outdoor bathrooms, four whirlpool

BALI

PHOTOS COURTESY OF ELITE HAVENS

baths, a living and dining pavilion, an open-plan kitchen, a home theatre, and a 216-square-metre infinity-edge swimming pool. Built in 2006 and revamped in 2011, this property sits on a 3,033-square-metre freehold land and is located just 25 minutes from the airport.

CEPAKA A 30-minute drive from Seminyak is a traditional Balinese village in Cepaka, within which sits a six-bedroom villa whose

architectural design presents a series of stand-alone pavilions with thatched roofs, natural-stone walls and floorto-ceiling folding glass doors. Each of the villa’s six bedrooms has a private elevated terrace that overlooks a river, and three of them have their own, private plunge pool. The property, which was built from 2000 to 2003, sits on a 5,000-square-metre freehold land, approximately 40 minutes from the airport.

SEMINYAK Only 10 minutes from the exciting KuDeTa is a prime villa that sits on a 700-square-metre freehold land. This property has a large living and dining pavilion, four bedrooms with ensuite bathrooms (and a large children’s suite), a home office, a 10-metre swimming pool, a fully fitted kitchen and private parking.

This villa, located in the exciting Seminyak area, offers attractive capital appreciation and rental potential.

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CYPRUS

MEDITERRANEAN ODDITY The island–nation of Cyprus has some of the Mediterraneans's best–looking properties. By Rodel Ambas Jr. NOTE As Northern Cyprus (Turkish Republic of Northern Cyprus) is not an internationally

recognised legal entity, this article will only highlight the southern portion, the Republic of Cyprus.

M

any consider the island of Cyprus to be an odd mixture. Floating in the eastern Mediterranean, it’s close enough to Greece to make a Hellenic ambiance palpable throughout the island. However, it also points longingly towards the shores of Turkey, Syria and Lebanon, thereby acquiring more than a tinge of Middle Eastern flavour.

Known as the mythical birthplace of the Greek goddess Aphrodite, this sunny island-nation (about 330 days of sunshine each year) is located strategically at the crossroads of Europe, Asia and Africa – an interesting combination of three. And it has some of the most sought-after vacations homes in the Mediterranean.

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RELIGIOUS RELIC Ruins of an early Christian cathedral in Kourion in Southern Cyprus © A. LORENZETTO/CYPRUS TOURISM ORGANIZATION

RECENT YEARS Similar to its classical history, Cyprus’ modern history is characterised by competing outside forces. Only its southern half, the Republic of Cyprus, which effectively controls 59% of the island, joined the European Union in 2004 and became a part of the eurozone in 2008.

The northern half, which calls itself the

Turkish Republic of Northern Cyprus and recognised only by Turkey, covers 36% of the island’s area and is home to the island’s Turkish Cypriot community.

This partition is a result of a series of events following years of intercommunal violence between Greek Cypriots and Turkish Cypriots. In 1974, a coup d’état was attempted by Greek Cypriot nationalists, which aimed to achieve enosis, or union of the island with Greece. Turkey used this as a pretext to invade the country’s northern portion, where it remained since signing a ceasefire.

But conflicts aside, the island’s beguiling combination of Western and Eastern influences makes it a favoured destination of tourists and second-home buyers, mostly

TURKEY

CY PRUS

from Britain and Russia. It is estimated that the country attracts 2.4 million visitors every year, more than double its population of about 840,000. The country, at least the southern part, has an advanced, high-income economy with a very high Human Development Index.

The country’s capital, Nicosia, albeit a divided city, combines a busy modern commercial and business centre and centuries-old culture. Its old quarter is surrounded by a Venetian sandstone fortress wall, and mosques and Byzantine churches sitting side-by-side give the city an oddly Middle-Eastern feel.

However, for now, it is only considered safe to buy property in Southern Cyprus (also know as Republic of Cyprus). According to Louise Reynolds, Director of UK-based property agency Property Venture, the lack of international recognition of the Turkish Republic of Northern Cyprus makes it difficult to predict how things will turn out.

PROPERTY MARKET As with many small Mediterranean islands, tourism is a key component of the Cypriot economy. While arrivals have declined by since 2001, the figure has of late been relatively static at about 2.4 to 2.5 million each year. Tourists head to Cyprus for its spotless beaches, Greek ruins and warm climate. Major buyers of second and vacations homes include British nationals and well-heeled Russians.

Driven by strong economic fundamentals and the confidence instilled by the EU accession, prices of Cyprus’ properties surged from 2000 to the 2007–2008 period. However, the market has experienced a significant decline as a result of the global credit crunch. According to a report by Knight Frank, the number of completions dropped off significantly in 2009 and 2010, and will continue to do so over the next two years.

But buying a Cypriot property can still represent good value compared to other, more established markets, such as Portugal, Spain and Italy. The country, too, has weathered the euro-crisis quite well compared to Greece. In fact, the International Monetary Fund’s forecast for growth in 2012 is positive at 1%. Its prime property market is also in good health, characterised by good sales and properties at least holding their value.

CYRPUS Nicosia

At 9,251 square kilometres, Cyprus is the Mediterranean’s third largest island, after Italy’s Sicily and Sardinia. It lies 75 kilometres south of Turkey, 105 kilometres east of the Syrian coast, 380 kilometres north of Egypt, and 00 kilometres southwest of the Greek island of Rhodes.

SYRIA

LEBANON Mediterranean Sea

JORDAN

ISRAEL EGYPT

Another exciting prospect is the discovery of an estimated 5–8 trillion cubic metres of gas to the south of the island, which can potentially make Cyprus an important energy exporter in the future, and will likely drive its real-estate sector.

Cyprus’ property market has also benefitted from the relaxation of immigrations rules. In 2007, the country allowed non-EU nationals who buy properties worth €300,000 (US$398,755) automatic and permanent residency permits. Now that this policy has been accelerated, Cyprus is one of the few countries in Europe where non-EU nationals (provided they invest €50,000 in a Cypriot bank account for 3 years) can automatically get permits.

Russian buyers were among the first to show interest.

HOTSPOTS Interest from foreign vacation-home buyers has traditionally been centred in Paphos on the western end of the south coast, Limassol on the central south coast, Larnaca on the eastern outpost of the south coast, the capital Nicosia, and Famagutsa. In more recent years, Polis in the far west and Agia Napa in the island’s far east have drawn widely differing crowds to their shores.

Cyprus’ upscale home market has outperformed the core and second-home market, due mainly to strong demand and very limited supply. (Cyprus is a tiny country with a finite capacity for development and tough planning restrictions on seaside locations, making land expensive to buy.)

A buyer’s guide With immigrations rules relaxed in 2007, non-EU nationals can a ail t emsel es of a e ible er manent residency permit as long as they invest in properties worth €300,000 (US$398,755) and deposit €50,000 (US$66,422) in a Cypriot bank account for 3 years. ut first t in s first non y riot residents must apply with the Council of Ministers for permission to purchase property or a home.

To help wade through confusing paperwork and permits, a foreign buyer is well advised to seek the service of a Cypriot lawyer or solicitor. Also, when applying, the foreign buyer will have to submit the details of t e identified ro erty t at t ey are in terested in buying, as well as all the information about its current owner and contract information.

Personal information, such as a passport, current residence and financial means of income must also be disclosed.

Banks, especially in the current economic climate, are more cautious oans are difficult to obtain and will only be granted if the property has a title deed or a Bank Guarantee from the developer. Depending on status, the following rates apply: 1 or first time buyers u to of t e ro erty’s value, with 20% deposit required. However, this is available only to permanent residents (i.e. a person who has been resident in Cyprus for the last fi e years 2 Non-permanent residents and those buying holiday homes can loan up to 60% of the property’s value 3 Lastly, investors and those aiming for commercial properties can receive a loan up to 50% of the property’s value It is also important that a purchaser deals with a registered agent only. By law, a registered agent carries an insurance policy to indemnify any wrongdoings, and follows a national code of conduct – this assurance is only available with registered agents. It is illegal in Cyprus for anyone who is not licensed and registered to operate as an estate agent; a buyer should request evidence of registration when enquiring about property.

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CY PR U S

© CYPRUS TOURISM ORGANIZATION

BEACH BUMS Ayia Napa, a popular resort town in Southern Cyprus

According to Knight Frank, the demand for prime properties from highnet-worth individuals continues to grow.

As a result, Cypriot developers over the last few years have raised the bar at their schemes to target these buyers. Within this sector, the sub-€500,000 market is dominated by British buyers, while Russian and other European buyers dominate in the €500,000–2 million bracket.

The very top end (more than €2 million), however, is dominated by buyers from Russia and other former Soviet republics.

Limassol is Cyprus’ largest city and main commercial centre. It is also where the bulk of property transactions take place (about 64% since 2009, according to the country’s Land Registry). The city also helped drive a surge in transaction volumes in 2011, thanks to the launch of Limassol Marina, a master-planned waterfront project and the first upscale marina in the country.

Paphos is also a key area, being home to the Aphrodite Hills (the country’s first integrated golf, leisure and real estate development) and Cap St Georges. The

38

© ANDREAS L. PAPADOPOULOS / CYPRUS TOURISM ORGANIZATION

city also offers buyers spectacular seaside scenery and rich history. Larnaca, on the other hand, hosts Cyprus major international airport, which is a main draw to many international buyers.

The best beaches in Cyprus can be found in Famagusta, located on the eastern corner of the island. Popular holiday resorts include Agia Napa and Paralimni, which offer charming scenery that includes the tiny fishing harbour of Agia Napa, the medieval monastery at the

heart of the village and the windmills and churches of Paralimni and Protaras.

Cyprus once again finds itself in an important milestone. After centuries of foreign intervention, it seems that the country is ripe for foreign investment; an energy boom is well underway. It has also emerged as a key location for high-end residential property developments, offering wealthy foreign buyers a prime location and lifestyle not found anywhere in the region.

CYPR US

W H AT TO BUY Fees and taxes The following are the fees and taxes generally incurred when buying a property in Cyprus: 1 Transfer fees on the purchase of a new or resale ro erty on t e first 5% between €85,431 and €170,860, and 8% on amounts above that 2 Stamp duty at 0.15% of the purchase price up to the value of €170,860, and everything thereafter at 0.2% 3 VAT at 15% on new-build properties only. First-time buyers only have to pay 5% 4 Legal fees (including the fee for the application to the Council of Ministers): allow 1% of the purchase price 5 Surveyor’s fee (optional) 6 Mortgage fees (if applicable) 7 Foreign exchange costs (if applicable)

Although Cyprus’ prime market has only a commercial area will be completed in midfew developments, buyers here have plenty of 2013, and the villas will be delivered in phases property types to choose from: beachfront vil- by the end of 2013 and in 2014. las, marina projects, golf resorts, etc.

Halfway between Paphos and Limassol is The most popular of which is Limas- the upscale Aphrodite Hills Golf Resort, the sol Marina, dubbed the ‘first upscale marina first fully integrated golf, leisure and real esdevelopment in Cyprus’ and the only one in tate project in Cyprus. One of the residential the Mediterranean offering private berths. projects within the development is the upHere buyers can choose from 273 residences, and-coming Apollo Heights, with 82 residencwhich each priced at €428,000 (US$568,536) es priced between €290,000 (US$385,257) to €16.6 million (US$22 million). The develop- and €965,000 (US$1.28 million). ment, located at the edge of the upgraded old town, also boasts restaurants, shops, up- Other residential projects within the development have already been completed and scale boutiques and spa. sold. However, some properties are available The project’s marina became fully operational for resale, such as two- and three-bedroom in late 2012, and the first properties delivered junior villas in Helios Heights, two- and threewere the Nereids Residences (94 apartments bedroom villas in Theseus Village, and threeand penthouses) also in the same period. The bedroom junior villas in Adonis Village.

Things to consider

PHOTO COURTESY OF APHRODITE HILLS

PHOTO COURTESY OF LIMASSOL MARINA

According to Venture Property’s Louise Reynolds, there have been rumblings of unease over the buying process in Cyprus, which has been unsettling for some. Although there is very little that buyers can do about Cypriot politics, she said there are ways buyers can protect themselves.

1 Your legal advisor should conduct a full searc at t e and e istry Office to ma e sure the Title is clean and that no existing mortgages exist on the property or land 2 Use an independent lawyer who can then deposit the agreement at the Land e istry Office immediately after t e sales contract is signed 3 Include in the contract of sale a paragraph that gives the buyer the right to sell on, so that the developer cannot object at a later stage 4 Get a Companies Registry check done to establis t e financial standin of t e developer in question 5 nsert a ecific erformance’ in t e sales contract before it is deposited at t e and e istry Office is will el the change in Title to be registered more quickly Although not perfect, Cyprus’ property market is safe compared with many other markets. As always, practice due diligence and stay informed. ‘No perfect antidote exists,’ said Reynolds, ‘but you can do some basic, common-sense things to protect your hard-earned money.’

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© SXC.HU / DJSLANE

HAWAII

HAWAIIAN PŌMAIKA’I America’s 50th state is a pōmaika’i (lucky) lifestyle indeed. By Jennifer LS Harrison

A

chain of volcanic islands and the 50th state to join the USA, Hawaii enjoys worldwide celebrity status (not entirely unlike the island of Manhattan, but for completely different reasons). It is a global destination for tourism and property investment and the mere mention of its name brings to mind hula dancers with floral leis, tropical forests and other exotic flora, Polynesian cuisine, television’s Hawaii Five-O and, of course, surfing.

Hawaii is more than a place for surf competitions and TV show settings, however. In fact, due to its varied and extreme topography, geologists, botanists, marine biologists, entomologists and other scientists flock to the archipelago for research, thereby adding to the already expansive rental market for short and long-term stays on the islands. Most visitors typically start on O’ahu, which is known as the Gathering Place for a reason – it’s home to the state capital, Honolulu, although both Maui and Hawai’i islands are popular destinations as well. Regardless, jetting, fer-

40

TO LIVE OR TO INVEST? PLACE OF SHELTER Hawaii’s capital Honolulu ranked second in the most expensive cities to rent in the USA in 2009.

rying or boating off to any of the smaller islands is merely a matter of purchasing a ticket and jumping in line at the port (air or sea). But if you’re considering a move to Hawaii, or buying an investment property there, then the best bets definitely lie with O’ahu, Maui or Hawai’i.

For many, the price for owning a little piece of paradise is out of reach, especially if intending to actually live on a Hawaiian isle. Because it is an island and everything must be shipped in from afar, it is a relatively expensive place to live or visit.

The tourism industry alone – aside from the regular industry that supports the residents – cashes in on Hawaii’s reputation as a holiday magnate. With plenty of tourist traps in the most popular areas, such as the capital city of Honolulu, hotels and entertainment are at a premium. Although clearly, with an average 7 million

Not to be confused with the name of the largest (by area) island of Hawai’i, the American State of Hawaii is the name for the entire collection of islands

Islands O’ahu (The Gathering Place) Hawai’i (The Big Island) Maui (The Valley Isle) Kaua’i (The Garden Isle) Moloka’i (The Friendly Isle) Lāna’i (The Pineapple Isle) Ni’ihau (The Forbidden Isle) Kaho’olawe (The Target Isle)

Largest City Honolulu (State Capital) Hilo Kahalui Kapa’a Kaunakakai Lāna’i City Pu’uwai NO

PER M ANENT

Population

953,000 185,000 144,000 67,000 7,000 3,000 130 INH AB ITANT S

HAWAI I

visitors per year, not many people are deterred from visiting. But do you want to live there?

No doubt that the climate, indigenous flora and fauna, and laid-back ‘Aloha’ lifestyle all surrounding some of the world’s most stunning beaches make for an enviable lifestyle, there are other considerations, such as the cost of living, job market and traffic congestion.

Petrol prices are nearing US$5 per gallon (US$1.32 per litre), which is excessive compared to state-side prices, which vary but generally hover around US$3 per gallon (US$0.80 per litre).

Petrol prices are important because of the nightmare traffic in and around Honolulu, the main business and financial centre of the state. Even a short commute can take hours, which in turn means buying even more petrol.

Supermarket prices also exceed prices in other US cities, even New York City or Los Angeles, even though NYC and LA are ranked as the first and second most expensive cities in America (Honolulu is third).

The job market is tight, with much of the available openings only in tourism or the marine, oceanography or topographical sciences industries.

Although property prices in New York City and Los Angeles, by comparison, are higher than in Hawaii, the day-to-day cost of living in Hawaii is higher, making it a tough market for permanent residency.

In this case, you might be better off buying property in Hawaii as an investment,

renting it out to the extensive rental market, and living someplace where a loaf of mass-produced white bread doesn’t run you US$5.

PROPERTY AND RENTAL MARKETS The rental market on Hawaii and surrounding islands is almost as good as it’s going to get anywhere in the world. For niche markets and for catering to tourists or residents with the need or desire for seclusion, any of the smaller islands offer excellent circumstances for investment. To lower risk/yield ratio, however, the main islands of O’ahu, Maui and Hawai’i have such a huge draw, that it seems like you cannot go wrong. In fact, with such a large pool of potential tenants and both shortand long-term rental options, finding a tenant for your investment property is almost as easy as shooting fish in a barrel.

VIEW FROM THE TOP Honolulu viewed from the famous Diamond Head crater © SXC / COOPGREG

According to statistics database gatekeepers, Numbeo, the per-square-metre average cost of buying an apartment in Honolulu (in or out of the city centre) is about US$4,800. They also average the cost of renting of a three-bedroom apartment at about US$2,500 per month.

Property across the Hawaiian Islands averages at US$422,000, with Honolulu (O’ahu) the most expensive at US$500,000, followed by Kahului (Maui) at US$400,000 and then by Hilo (Hawai’i) at a surprisingly low US$220,000.

Hawaii certainly ticks most of the boxes for an investment property: • The tourist season is long, pretty much buzzing the whole year round • The climate is mild and subtropical, enticing ongoing tourism • Infrastructure is sound and reliable, including a major airport in Honolulu and smaller airports, as well as boats and ferries, servicing the smaller islands • Long-term tenants – mostly professionals and families – looking for accommodation • Short-term tenants – mostly tourists but some professionals – looking for accommodation • A tourism industry that is, in a word, vast, supporting the rental market • With its worldwide fame, there’s also certain amount of prestige to property ownership If you’re a property investor looking for an ideal holiday home investment property, go ahead and say, ‘Mahalo, Hawaii!’

A’ole pilikia. (You’re welcome.)

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H AWA I I

Kaua'i

O'ahu Honolulu

W H AT TO BU Y

Molokai Maui

The State of Hawaii offers foreign buyers plenty of choice when it comes to lifestyle, ocean-front properties. One of them is an elegantly remodelled condominium unit (see photo above) located in the Wailea Point, a private, gated, low-density ocean-front complex in southwestern Maui, boasts expansive views of the Maalaea Bay. This 237-squaremetre unit has been meticulously upgraded with upscale Koa wood and granite countertops. Maui Island is halfway between Honolulu and the Big Island. This residence is listed at US$4.9 million.

For more information, visit www.century21.com

Anorther is a custom-built house that has a panoramic view of Hulopoe Bay. Located on the Island of Lanai close to Manele Bay Resort and Sweet Heart Rock, this home has cherry wood, marble and granite floors; three well-appointed bedrooms; three and half bathrooms; and ample of living area. The exterior lanais are covered with trellises for shading and an outdoor kitchen looking over the Pacific Ocean for evening BBQ. This property is listed at US$4.2 million.

For more information, visit www.homesonlanai.com

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An archipelago situated some 3,200 kilometres southwest of the North American mainland, Hawaii is the USA’s southernmost state and the only one not geographically located in North America.

Its eight main islands are Hawai’i (Big Island), Maui, O ahu, Kahoʻolawe, Lana i, Molokaʻi, Kauaʻi and Ni ihau. It also includes numerous smaller islands, islets and rocks.

The entire state covers an area of 28,311 square kilometres, 1.2 of it water.

Hawai'i

(Big Island)

For those who prefer managed estates, there's a furnished, 2,753-square-foot, three-bedroom cottage within the exclusive Kukio Golf and Beach Club located at the Kailua-Kona area of the Big Island. It has views of the Kohala Mountains to the east and of the Uluweuweu and Kua Bays to the west. Cottage owners can avail of the resort’s topnotch amenities, such as a members’ clubhouse, a spa, a ten-hole Tom Fazio-designed short course, and Kukio’s Outdoor Pursuits programme. Listed at US$4.35 million.

For more information, visit www.kukio.com

HAWAI I

A FOREIGN BUYER’S GUIDE IN

HAWAII’S PROPERTY MARKET

By Eric West

G

etting familiar with the process of buying real estate in Hawaii is the first step in taking full advantage of the major opportunity that exists right now in this under-valued marketplace. All economic indicators point to the following: a surge in demand, real-estate appreciation and high return on investment. Most of the indicators are related to rising tourism numbers, a favourable currency exchange, the demand for housing on the islands (both tourist and locals) and the scarcity of housing/land in these relatively small islands.

Most investors enjoy not only high occupancy rates in their rentals, but also get the added benefit of possible vacationing on that property throughout the year. If you have the spare capital and also enjoy spending time in paradise, it only makes sense to put your dollars to work in this market and enjoy the next ride on Hawaii real estate boom. The time is now to start asking the right questions.

Kazuo Nishiyama, PhD, of the University of Hawai’i recently answered these most commonly asked questions about Hawaii’s real estate market.

1 I am a citizen of another country. Can I buy real estate property in Hawaii? You can buy real estate in the USA, as it is an open country and welcomes foreign investors.

2 Are there any governmental restrictions? There are no restrictions at all. You can bring in any amount of funds for investment, but the US government is very strict about laundered money. If the government discovers that you illegally obtained the money by tax evasion or drug trafficking, your investment will be confiscated.

3 Can I get a green card by purchasing a home or condo in Hawaii? No. There is a special immigrant visa if you invest more than US$1 million and create jobs for US citizens, but does not apply to an individual buying a home for personal use.

4 How much does land cost in Hawaii? That depends on the location, the size and use of the land. Prices can average in the millions per acre, but lower-priced acreage is certainly available.

5 Which real estate company should I inquire about purchasing real estate in Hawaii? There are many options to choose from, but it’s always best to speak with various licensed individuals and interview them to see if they fit your communication style, and have a good reputation for being straightforward and reliable. Asking friends who they have successfully worked with is another good approach.

6 Do I have to pay a commission to that realtor when I am the buyer? Sales commissions are paid for by the seller of the property and that commission is shared between the seller’s broker and buyer’s broker.

7 Do I meet and negotiate with the seller of a property that I am interested in buying? The negotiation is conducted through the agent of the buyer and seller by exchanging written documents.

8 What is a counteroffer? This when the seller or buyer are asked to reconsider the purchase price currently offered by either party until mutual consent is reached. This is also done in writing.

9 Is ‘Timeshare’ a good investment? Timeshare means that you are buying a fractional interest in a resort condominium and the privilege of using it. You are actually buying a one-week or twoweek vacation. It is a great way to have a guaranteed vacation every year in Hawaii and can typically be exchanged at other participating locations throughout the world.

10 When I close on my real-estate acquisition in Hawaii, do I pay the seller directly or his bank account? We have Escrow companies and in some cases real estate attorneys who handle funds for real-estate transactions. The most common practice is for the agents to ask an Escrow company to handle all of the paperwork and money on your behalf.

11 I don’t want to rent my property to local surfer boys. Is this legal? Unfortunately, it is against the law to discriminate against renters, but you can request your rental agent to carefully select your tenants.

12 Can I hide my rental income from tax collectors? You are required to pay General Excise Tax, Transient Accommodation Tax and Income Tax. You should ask your rental agent to pay the General Excise Tax and the Transient Accommodation Tax from your rental income on your behalf, and ask a certified public accountant to work on the income tax. You are required to pay the annual income tax before June 15 for the previous year’s income.

13 Can I hide my income in Hawaii from my country’s tax collector? This is difficult. The USA has many mutual tax treaties with foreign countries and they exchange information on taxpayers’ income whenever they find it necessary.

14 I heard there is a federal tax law making it cumbersome for a foreign owner to sell his or her property? This is called the Foreign Investor Property Tax Act and was enacted to eliminate income tax evasion by non-resident foreigners and foreign corporations. Any buyer of a US property owned by foreigners is required to withhold 10% of the gross purchase price. Part of this withholding may be returned to the seller after paying the income tax. The problems are that the buyer is responsible for taking the withholding and paying this amount to the Internal Revenue Service, and the seller cannot use the entire sale proceeds right away. The balance of the withholding tax will be returned after paying the income tax.

15 Does the State of Hawaii have a similar tax law on state income tax? A foreign seller of a Hawaiin property is also subject to the Hawaii Property Tax Act. A buyer of a Hawaiin property owned by foreigners or non-residents must withhold 5% of the purchase price and send the amount to the Hawaii Department of Taxation.

After paying state income tax, the seller can get a refund if there is a balance.

Eric West as a de ree in finance from t e ni ersity of olorado at Boulder. He is one of Cabela’s Trophy Properties top producers and has personally brokered the purchase and sale of thousands of acres of land and many multi-million-dollar luxury homes in the USA. For more information, visit www.hawaiirealestate.org.

43

HONG KONG

ASIA’S WORLD CITY Despite curbs, home prices in crowded Hong Kong continue to climb. By Rodel Ambas Jr.

C

onsidered Asia’s foremost financial hub, Hong Kong is a territory that’s legally under Chinese rule but retains considerable autonomy to run its domestic affairs. It has its own immigration policy, taxation laws, police force and even its own currency, and represents itself in regional and global trade agreements, such as the World Trade Organisation and the Asia-Pacific Economic Cooperation.

Granted special-region status by Beijing, Hong Kong has successfully utilised both its proximity to and autonomy from mainland China to its advantage. Main-

44

land firms are listed in the Hong Kong Stock Exchange to take advantage of its highly internationalised and modernised financial industry. Chinese goods routinely pass through Hong Kong’s very efficient sea and airport. At the same time, minimal intervention from Beijing means Hong Kong has a free hand to run its own affairs – one of the conditions promised

by China before Hong Kong was handed over in 1997.

With an economy characterised by minimal government intervention and low corporate and personal tax, Hong Kong’s GDP grew 180 times from 1961 to 1997, and made it one of Asia’s devel-

oped economies. As a de facto country, Hong Kong ranks highly in many indices of economic performance, one of which is being cited as the world’s freest economy by the Heritage Foundation and the Wall Street Journal for 17 consecutive years since 1995.

It has also weathered the global downturn quite well, thanks to its core strengths, such as a sound banking system, a strong legal system, ample foreignexchange reserves, rigorous anti-corruption measures, and close ties with mainland China.

The city has also consistently upheld its policy of and supporting its residents’

HONG KO N G

FRAGRANT HARBOUR Hong Kong's iconic skyline viewed from West Kowloon.

A buyer’s guide Generally foreigners – except those from Afghanistan, Albania, Cuba, North Korea and mainland China (unless they are permanent residents in another country) – can buy properties in Hong Kong and rent out without restriction.

And they have two options: either as an individual (including jointly with your spouse) or through a corporation.

For large real estate developments, it’s best to own property through a Hong Kong corporation.

© HONG KONG TOURISM BOARD

It is also fairly easy to get a mortgage in Hong Kong if you have an income. ocal financin is widely a ailable for foreign residents.

entrepreneurial activities by removing unnecessary barriers for private enterprises.

In fact, it takes just three days to register and start a business in the territory.

As an international financial powerhouse, it is also the favoured regional headquarters of countless international firms, adding to it a cosmopolitan atmosphere only a few cities on earth can rival. It hosts 58 consulates-general, 64 consulates and five officially recognised bodies, more than any city on earth, including New York, the home of the United Nations.

Very high government spending has resulted in a city with impeccable public infrastructure. Its international airport is one of the world’s busiest; its port is second only to New York’s and Rotterdam’s in terms of container throughput; and its public transport one of the world’s most efficient.

So in a way living in Hong Kong can

be considered a blessing. Residents get to enjoy the territory’s impeccable infrastructure, business-friendly environment and a very high standard of living. But at the same time, its real estate is one of the world’s least affordable.

To give you an idea, a luxury house in Hong Kong Island’s affluent Deep Water Bay area was sold for a staggering £8,400 per square foot in 2011 (US$13,150 – based on 2013 exchange rates), according to a report by Savills. Then in mid-2012, a 580-square-metre apartment occupying an entire floor in the Frank Gehrydesigned Opus Hong Kong was sold for HK$470 million (US$60.6 million). These are prime properties alright, but they give buyers an idea of what to expect when buying in the territory.

Indeed, Hong Kong is a place where land is at a premium, and its more than 7

HSBC lists these useful steps for foreigners looking into applying for a mortgage loan in Hong Kong: Calculate how big a mortgage you can afford before looking for a property.

A roac a financial institution for a preliminary valuation of the desired property to get an idea of how much can be borrowed.

Agree on a purchase price and transaction completion date, then pay an initial deposit and sign a provisional sale and purchase agreement.

Apply for a mortgage. Appoint a solicitor for a land search and arrangement of legal documents.

Sign the formal sale and purchase agreement and make the down payment (usually around 10% of the purchase price) to the vendor.

Sign the other legal documents and arrange to pay the outstanding balance (partially or fully paid by your mortgage) to the vendor. For under construction property, additional legal documents will have to be drawn up on receipt of the occupation permit.

On top of the property price, the buyer might also have to the following: (a) solicitor fee, including sale and purchase agreement, assignment deed and mortgage deed; (b) government fee including stamp duty; and (c) property agent fee.

45

CHINA H O N G KONG SHENZHEN

NEW TERRITORIES

HONG KONG KOWLOON

LANTAU ISLAND

HONG KONG ISLAND

MACAU

Seven million Hongkongers live in a territory where land is at a premium. It is one of the most densely populated places on earth, and land continues to be reclaimed in its famous harbour.

It is divided into three major regions, which include Hong Kong Island itself (80.5 square kilometres), Kowloon (9 square kilometres), and the New Territories including over 200 offshore islands (952 square kilometres).

© HONG KONG TOURISM BOARD

million residents are cramped in an everrising vertical city. But despite this limitation, the city continues to attract property hunters willing to part with their cash for potentially big returns, especially now that demand continues to outstrip supply.

MARKET OVERVIEW Hong Kong is a favourite destination of well-heeled property buyers, especially those from mainland China. Restrictions for second-home purchases implemented

by Beijing prompted many mainlanders to go to Hong Kong, which caused a surge in prices over the last few years. Knight Frank’s Wealth Report in fact indicated that 25% of prime market purchases in Hong were by mainland Chinese buyers, compounding the staggering 60% growth seen since the beginning of 2009, and stoking discontent among middleclass Hongkongers who feel they’re being priced out of the city’s housing market.

This prompted the Hong Kong government, led by its newly appointed chief executive CY Leung, to implement restrictions: first mortgage policy was tightened in September, followed by the implementation of the Buyer’s Stamp Duty and the extension of Special Stamp Duty in October (to curb speculation) for properties sold within two years of purchase. Foreigners also no longer qualify for permanent residency by simply buying a home.

‘These measures hurt the residential buying sentiment, particularly in the luxury segment,’ said Ricky Poon, Executive

46

UP, UP THEY GO Hongkongers live in a city where land is at a premium.

Supertall high-rises is the way to go

Director of Residential Sales at Colliers.

According to a report by Knight Frank, residential sales volume plunged 53.3% in December 2012 from a month earlier, the lowest for the entire year.

But after adopting a wait-and-see attitude after the cooling policies, potential home buyers appeared to digest the impact of these measures and returned to the market.

Developers also regained momentum and launched new projects. In December, High Place in Kowloon City and The Wings II in Tsueng Kwan O were

launched by Henderson Land and Sun Hung Kai Properties, respectively, with promotional packages to boost demand.

The residential sales market was further heated by the launch of Greenview Villa in Tsing Yi, a subsidised-housing project from by the Hong Kong Housing Society.

In his first policy address, Chief Executive CY Leung announced a series of measures to deal with Hong Kong’s housing woes. It involves increasing residential land supply by changing land use.

Although this has set a right direction for long-term housing policy, supply is still expected to lag behind demand in the near future. Home prices are set to remain stable with upward or downward movements within 5% this year.

But according to Thomas Lam, Director and Head of Research, Greater China at Knight Frank, the new policies involve time-consuming collaborations among a number of government departments.

This means new land supply will not become available until 2015–2016 the earliest. Therefore, in the short term, demand will continue to outstrip supply and market expectation for home price development is unlikely to change.

© HONG KONG TOURISM BOARD

© PHOTOS COURTESY OF SUN HUNG KAI PROPERTIES

HONG KO N G

WH E R E TO BU Y Hong Kong itself is just one of the islands that make up the entire special administrative region. It is also what the Chinese ceded to the British after their defeat in the First Opium War, and, for many decades, the very centre of British rule.

Right across the harbour to the north is Kowloon, a tiny peninsula jutting out from the Eurasian mainland. Then there’s New Territories, comprised of a large chunk of land that shares border with Shenzhen and over 200 offshore islands, including Lantau, Tsing Yi, Cheng Chau, Peng Chau and Lamma, among others.

As Hong Kong’s de facto financial and political centre, the Western and Central District is where the city’s skyline is most impressive. It also has some of the city’s priciest real estate, from upscale retail areas to posh condos built along the steep slopes of Mid-Levels.

Then there’s the crowded Eastern District populated mostly by residential towers built along the coast. Ten MTR stations

serve this area, making it highly accessible from Central and Kowloon. For the affluent buyers, there’s the Island’s quiet Southern District, where most of Hong Kong private luxury estates are found, such as those in Deep Water Bay and Repulse Bay. But over the last few years foreign buyers have avoided the traditional luxury districts, and opted for upcoming affluent neighbourhoods, such as West Kowloon, where a number of upscale residential projects were unveiled. This is also where the city’s tallest skyscraper is found – the 484-metre International Commerce Centre, which sits on top of Kowloon Station.

Further afield is the new town of Tsuen Wan in the New Territories. Many of the private residential buildings are located around the MTR station, where also much of the area’s commercial activities take place. Other new residential areas in the New Territories include Yuen Long and Tuen Mun both served by several MTR stations.

As real estate is exorbitantly expensive in Hong Kong, buying off-plan makes a lot of sense. Several projects have been launched since the government implemented cooling measures in the last quarter of 2012. One of these projects is Sun Hung Kai Properties’ The Wings II project in Tseung Kwan O. Scheduled to be completed in July 2014, the entire project will have 784 residential units in four towers.

The first 50 units launched cost an average of US$1,378 (HK$10,688) per square foot.

There’s also the Century Gateway project, a joint venture between MTR Corp. and Sun Hung Kai Properties. It is located in Tuen Mun, New Territories, and is scheduled for completion in August 2013. It has 1,080 residential units priced, on average, at US$1,449 (HK$11,238) per square foot.

Meanwhile, Henderson Land’s new project called High Place was launched late last year and will be completed in December 2014. Located along Carpenter Road in Kowloon City, the project has 76 units in one residential tower, with average price of US$1,804 (HK$13,993) per square foot.

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BRITISH ISLES

ONE IDENTITY, MANY CULTURES AND A MILLION SMILES Although not an island getaway in the traditional sense, the British Isles offer diversity and opportunity in terms of property investment. By Jennifer LS Harrison

T

he British Isles are an archipelago – a group of islands – off the north-western coast of Europe and although it includes over six thousand smaller isles, it formally refers to the United Kingdom of Great Britain and Northern Ireland (Great Britain includes England, Scotland, Wales, plus the Isle of Wight, Anglesey, the Isles of Scilly, and the Hebrides); Ireland; the Channel Islands; and the Isle of Man.

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Technically the Channel Islands and Isle of Man are not part of the UK but are instead considered Crown Dependencies (self-governing but possessions of the British Crown). Occasionally, however, the UK extends legislation which covers the Isles and so it is useful to have a term to refer to the collection of territories: the British Isles.

Great Britain is the largest island and together with Ireland account for over 95% of the landmass of the Isles

and 80% of the population, leaving only 4.5% to the remaining islands. The vast majority of these with permanent residents belong to Scotland, with 97.

England, by comparison, has only 19 permanently inhabited islands. One of the Channel Islands, Jethou, is privately leased, and by the Isle of Man, the Calf of Man, has only two permanent residents.

The remaining inhabited isles, however, have a great story to tell.

BRITISH I S LE S

RENTAL RETURNS Foreign investors have and probably will always have a love affair with London, owing in part to its cosmopolitan status, multicultural population, geographical accessibility to continental Europe – and the soaring rental returns.

During England’s recent economic woes, lending criteria were tightened making it harder for renters to become owners. This lead to a higher number of renters overall, which drove the prices up. Add to this an increasing cost of living for the Londoners and wage growth that is slower to recover from the economic difficulties than is being seen in the growth of the property market, and it is a hard time to join the property ladder in London.

While sad news for the renter living in London, this is great news for an investor with the ‘dosh’ to purchase property in the nation’s capital, especially when a mortgage is not required.

Property website, Zoopla.co.uk, ranked the top-performing locations in 2012 where prices rose:

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Location

Percentage

London

▲ 6.76%

Cambridge

▲ 5.91%

Plymouth

▲ 4.9%

Derby

▲ 4.09%

Bristol

▲ 3.11%

And the worst-performing locations in 2012 where prices fell:

CITY WITHIN A CITY The City of London viewed from Southwark, and the Shard of London, which became Europe's second-tallest building in 2012.

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND It’s a long name for a sovereign state, but then again, it includes a lot of territories.

ENGLAND England in general, London specifically, has one of the world’s top-ranked property markets, and lately its luxury market has been doing rather well – for now.

According to the British Land Registry, house prices in London are slowly nudging their way up. From 2011 to 2012, there was an increase of 0.9% overall. However, there

does seem to be a cooling in the luxury market with the number of sales in this sector slumping by 0.25% from a year ago. And although the Registry notes that while the prices in London are rising quickly, up 5.9% from 2011, the luxury market is down by a whopping 26%.

What happened?

The Olympics and the Queen’s Jubilee festivities happened, and many are blaming these as a distraction from the day-today course of the property market.

Nevertheless, London’s property market is still outperforming the rest of England’s and Wales’, especially in terms of property prices. This is despite a scheme introduced by the government in the fourth quarter of 2012 to increase mortgage availability and even encourage price wars between mortgage lenders, which affects the nation as a whole, not just London.

Location

Percentage

Bradford

▼ 3.59%

Lincoln

▼ 2.07%

Bradford

▼ 1.96%

Bournemouth

▼ 1.76%

Warrington

▼ 1.69%

2013 TAX LAWS FOR ENGLAND’S LUXURY MARKET There have been a few amendments to the tax laws in England, especially for foreign buyers: Foreigners owning a property with a value of US$3.2 million (£2 million) will be charged an annual tax for residential property. The Annual Residential Property Tax (ARPT) takes effect from April 2013 and is based on valuation scales starting at £2 million and going up to properties valued in excess of £20 million.

For foreigners who are not residents, there’s a new capital gains tax of 25%, also starting in April, on high-value homes.

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The following are highlights of the property market across England. The average prices per home are according to the Land Registry of England and Wales, while the price per square metre for renting come from statistics website, Numbeo.

For property investors, the attraction to England, especially London, goes beyond current market volatility. While always a factor, it’s more about buying into the name and associated benefits of owning in the UK.

ISLE OF WIGHT More than half the area of the Isle of Wight is designated as an Area of Outstanding Natural Beauty. Sometimes called a miniature version of England, and known in the academic world for its dinosaur fossils, and in the beer world for its breweries, the population of about 150,000 is both sportsorientated and proud of its unique culture and heritage.

With tourism as a major economic driver, the relatively young property market (on an international level), combined with sound infrastructure on the island, will open up the property market to the world in the coming years. With 57 miles of coastline and a climate more temperate than the rest of England, it’s a unique option for owning a holiday home.

Considered a county of England, Wight is the largest island in England, and is located in the English Channel. The largest town (there is no city) is called Newport, in the island’s centre. The locals speak English, but with their own distinct accent. Being a small location, however, there is little reported on its property market.

According to the Land Registry of England and Wales, the average house price here is US$316,524 (£199,475) with a annual price change of +0.4%, and the average apartment price is US$214,110 (£134,933).

ISLE OF SCILLY A distinctly Cornish set of five islands (archipelago), Scilly, populated by about 2,000 Scillonians and owned in large part by the Duchy of Cornwall (freehold land, at least). It is another example of a British isle with an economy based on both tourism and agriculture. In the last few years, however, it has been home to some of the poorest people in Britain. In 2009, the average household income fell below US$26,600 (£17,000). Thought to be a problem owing to an overdependence on tourism, local authorities are developing a set of projects to encourage new industry.

It can be difficult to draw in new business, however, due to the transport costs from the mainland, the low average income and relatively high cost of living.

There are few statistics available on the small island with its small population and small property markets. No one seems to be keeping tabs on the number of property transactions or average house/apartment prices. Perhaps it’s the way of the laid-back island life.

NORTHERN IRELAND Northern Ireland, by comparison to England, is a lessor-known property investment destination. The capital city of Belfast is the 14th largest in the UK by population, and the second largest in Ireland behind Dublin to the south.

Unfortunately Belfast and Northern Ireland are perhaps still best known for their period of internal conflict referred to as The Troubles, an era of political and religious violence between its Catholic and Protestant populations fighting for (or against) independence from the United Kingdom. Although today, the city is calm and reaping the benefits of peace through economic growth.

The population of just under 300,000 is overwhelmingly Caucasian, but there are however about 1,500 Asian residents in Belfast. Each year, in fact, it’s becoming a more multicultural and cosmopolitan destination, with every amenity one would expect to find in a large city.

The property market, virtually untapped by foreign investors, at least on a large scale, is ripe for the picking, with prices still under market value and plenty of renters who need accommodation. At the end of 2012, government statistics show that Northern Ireland’s property prices dropped more significantly than anywhere else in the UK, plummeting over 12%. At the same time, the performance of the rental market increased by exactly the same amount. Coincidence? I think not. After all, buyers who cannot buy, rent. Investors with the money to buy, buy and then rent out.

According to the Land Registry of Northern Ireland, the average house price in Belfast is US$241,933 (£150,176), although an apartment averages about US$167,210 (£103,793). The annual change in price is +5.5%.

Numbeo puts the price per square metre for an apartment in the city centre at US$2,964 (£1,836) and US$2,110 (£1,307) outside of the city centre. To rent a threebedroom apartment in the city centre runs on average US$966 (£600) and outside the city centre US$765 (£475).

House prices and rental costs in rural areas decrease substantially.

SCOTLAND Sharing a border with England and the North Sea, Scotland mainland makes up the northern third of the island of Great Britain.

With mild winters and cooler, wet summers, it is the nation for golf, whiskey and haggis.

And while the primary language is English,

PROPERTY MARKET AVERAGES Location

Average house price

Average apartment price

*Per Square Meter

London

US$738,458 (£461,018) with an annual change in price of +4.7%

US$615,739 (£384,405)

US$4,164 (£2,600) in the city centre, and US$2,562 (£1,600) outside the city centre

Cambridge

US$559,524 (£349,310) with an annual change in price of +5.9%

US$379,130 (£236,690)

US$2,162 (£1,350) in the city centre, and US$1,601 (£1,000) outside the city centre

Manchester

US$239,872 (£149,752) with an annual change in price of –1.4%

US$210,284 (£131,280)

US$1,842 (£1,150) in the city centre, and US$1,361 (£850) outside the city centre

Bristol

US$355,053 (£221,659) with an annual change in price of +4.8%

US$295,254 (£184,327)

US$2,602 (£1,625) in the city centre, and US$1,601 (£1,000) outside the city centre

Liverpool

US$212,079 (£132,401) with an annual change in price of +0.4%

US$196,105 (£122,428)

US$1,521 (£950) in the city centre, and US$1,001 (£625) outside the city centre

*average price of renting a three-bedroom apartment

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it can be difficult for even native English speakers to understand the accent – but that’s part of the charm.

The national identity of the Scottish is also something of note. It’s a place where even immigrants see themselves as part of the nation. Asians, including Pakistanis, for example, call themselves Asian-Scots, leaving truly native Scots to identify themselves instead by the accent used.

Indeed, immigration to Scotland has steadily increased since World War II, making for growing enclaves of Asian, Pakistani and African communities.

To aid both foreign and local property buyers in Scotland, in 2008 the government decided that all homes sold must include a Home Report, which is a collection of three documents: A survey, which is an assessment of the value and quality of a home, carried out by a surveyor, An energy report, a part of the surveyor’s report, to assess the home’s energy efficiency and its environmental impact A property questionnaire, a form filled out by the seller and includes tax and other costs useful for buyers, Although property is sold across the entire country, of course, the two major cities in Scotland offer a more useful discussion, especially for foreign investors: Edinburgh and Glasgow.

Edinburgh is the capital but the second largest behind Glasgow. Each has very different property markets. Consider simply the disparity between the average house price in each city: US$362,935 (£228,719) in Edinburgh and US$208,855 (£131,619) in Glasgow.

vel of urban planning, even by modernday standards, while still maintaining its historical roots.

While the average number of properties in Edinburgh went up in 2012 by 11%, the average price dropped slightly by 3%.

Reports from the BBC say this has to do with a growing realisation by the Scots regarding the actual current market value of their properties, and adjusting their prices accordingly.

Although still in recovery mode and prices have yet to return to pre-crisis levels, the Edinburgh tourism market and optimism of its populace are driving the market forward.

According to the Land Registry of Scotland, the average house price in Edinburgh is currently US$366,933 (£228,719) with an annual price change of +1.4%, while the average apartment price is US$308,134 (£191,984). Numbeo gauges the per-square-metre, average price of renting a three-bedroom apart-

The British Isles are an archipelago comprised of more than 1,000 islands. The total land area of the entire archipelago is 31 ,13 square kilometres, with Great Britain and Ireland accounting for . of this area.

GLASGOW As Scotland’s largest city, and third largest in the UK, Glasgow is known primarily – at least historically – for industry and shipbuilding.

As it also happens to have fairly cold and overcast winters and variable summers (although spring is pleasant), Glasgow’s reputation for tourism or property investment is somewhat grisley.

There are reasons for optimism, however, at least in the Glasgow property market – 2012 ended up for both volume of transactions and

SCOTLAND

Edinburgh

Glasgow

UNITED KINGDOM NORTHERN IRELAND

EDINBURGH Although not the largest city of Scotland, it is second only to London as the UK’s mostvisited tourist destination. A city of charm, history, and culture, it hosts a number of annual festivals, further adding to its tourism attraction – and rental returns for its property market.

Neighbourhoods of the city of Edinburgh are separated by residential areas with a connected or adjoining park, retail street and a historic street. The south and the west portions of the city are considered the wealthier areas, but each area has its charm. Old Town, for example, is a magnificent preservation of medieval buildings with a castle, squares, and markets. New Town by comparison is considered a mar-

ment to US$4,997 (£3,114) in the city centre, and to US$3,085 (£1,923) outside of the city centre.

Belfast ISLE OF MAN

IRELAND ISLE OF ANGLESEY

Dublin ENGLAND WALES

London

BELGIUM ISLE OF WIGHT ISLE OF SCILLY GUERNSEY JERSEY

FRANCE

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PARIS

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BR I TI S H I SL E S

SCOTTISH REALMS Scotland's Edinburgh (above) and Glasgow (below), two of the most important cities in the UK.

THE HEBRIDES The Hebrides are yet another archipelago set within the archipelago that is the British Isles. Although this one is located off the western coast of Scotland and divided into two groups called the Inner and the Outer Hebrides.

The Inner Hebrides has more islands than the Outer Hebrides, but the Outer Hebrides includes Lewis and Harris, the largest island in Scotland and the third largest in the British Isles after Great Britain and Ireland. In the portion of the Lewis and Harris islands called Lewis, there is a rising population with a wide range of entertainment, including restaurants, hotels and bars.

While industries such as crofting, fishing and tourism play an important role, the islands perhaps receive their largest economic bolster from the local oil and energy business. The Outer Hebrides especially are rich in renewable energy resources, and with new government in-

WALES Bordered by England and the Irish Sea, Wales has a population of over 3 million people, 1,200 kilometres of coastline, and manages to retain a distinct cultural identity (not political, however) from the rest of Great Britain.

While the people of Wales, the Welsh, refer to their property market as competitive, the truth is that it is suffering compared to the markets in England, Ireland and parts of Scotland.

According to the Land Registry of England and Wales, the average price of a house in Wales is US$248,955 (£155,500) with an annual price change of +0.7%. The average price of an apartment, meanwhile, is US$190,341 (£118,889). In addition, Numbeo gauges the per-square-metre average price of renting a three-bedroom apartment to US$1,332 (£825) in the city centre, and US$1,170 (£725) outside the city centre.

On the plus side, long-term investors with the ability to park their cash and wait will find excellent deals in Wales or specifically in its capital city of Cardiff. Life in Wales is distinctly pleasant, affordable, and the people are friendly and outgoing (famed Welshmen include Anthony Hopkins, Tom

© VISIT BRITAIN

average price. Glaswegians are also looking forward to 2014 when there’s an expected hike in rental returns for properties in the area due to it hosting the 2014 Commonwealth Games.

Also driving tourism is the city’s architectural heritage, especially representing the Victorian era, as well as the expansive number of art museums and artistic organisations based in Glasgow, including several theatres and a vibrant music scene. If Glasgow can manage to spread the word and drive tourism further, even more optimism can be expected for the property markets.

As it stands, however, the average house price in Glasgow is significantly lower than in its sister city, Edinburgh. Fighting a battle between council areas and urban areas, which also draw a line between wealth and poverty, Glasgow may need further urban planning to draw foreign investment and improve its property market.

According to the Land Registry of Scotland, the average house price in Glasgow is US$211,248 (£131,619) with an annual price change of –5.1%, and the average apartment price is US$185,276 (£115,437).

Numbeo gauges the per-square-metre average price of renting a three-bedroom apartment to US$1,601 (£1,000) in the city centre, and to US$1,120 (£700) and outside of the city centre.

centives and projects planned to expand its oil and energy policies – and therefore jobs – across Scotland but especially to the smaller regions and islands, there is reason to expect an increase in populations of the outlying, remote areas.

With a combined population of less than 50,000 – and falling – there are in fact few resources for current statistics on the property market or its people. It seems rather than investing in and moving to the Hebrides, the island’s inhabitants, especially young adults who leave for education and rarely return, are not investing in the Hebrides’ future.

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ISLE OF ANGLESEY Off the north-western coast of Wales, and the largest Welsh island, Anglesey hosts a population of mostly Welsh speakers (over 68,000, according to the 2010 census).

Rather than one or two large or centrally located cities, Anglesey has several well-dispersed towns that populate the island quite evenly. With a pleasantly mild climate, the economy is driven by a mixture of agriculture and tourism, and about 2 million visitors reach the island each year.

Tourism is one thing, and property investment, while often driven by growing tourism (holiday properties, rentals, etc.), is still another matter entirely. Still – just what in the name of King George is going on with the property market on this small island? The average cost of an apartment is almost £80,000 higher than the price of a house – and the average house price appreciated by rather a lot (up 9.3% to be precise).

The numbers may be startling, but the number of transactions in 2012 as of the beginning of December last year was just 200. In such a small market, it’s possible for one or two particularly large or small deals to rock the boat, so to speak.

Or, could it be that local royalty, Prince William and his bride, Princess Kate, have made their home here? As one of the world’s most famous couples, privacy is paramount.

On a secluded island, privacy is delivered.

According to the Land Registry of England and Wales, the average house price is US$271,017 (£167,844) with a annual price change of +9.3%, and the average apartment price is US$400,989 (£248,337).

THE REPUBLIC OF IRELAND As for the property market, the ‘luck of the Irish’ strikes again. Along with some sound, productive work between the politicians and bankers of the republic, Ireland needs now some good fortune.

Much of Ireland is still within the throes of a recessive economy that sees properties standing vacant simply unable to find buyers, or property prices falling by as much as

20% in the span of a year (2012). Even now, the total number of properties up for sale is at its lowest in at least five years.

But, if you hold your breath and listen carefully, you’ll hear a whisper of optimism emerging from a few Dublin streets. It’s not recovery, but perhaps an inkling of stability. Prices in some parts of Dublin rose in 2012 (instead of falling dramatically as in 2011).

WHERE DID IT GO WRONG? Denise Casey, Irish national and partner in the real-estate firm APSS, believes that during the most recent property boom in Ireland, beginning in the late 1990s through to the early 2000s, businesses and property investors were drawn to Ireland for its market growth and well-edu-

WIDE COUNTRY SPACES A beach in Pembrokeshire county in south-west Wales.

made absolutely no sense in terms of supply and demand.’ Even still, Casey continues, ‘extremely greedy politicians throughout the country handed out planning permission left, right and centre. So developers built more and more homes, and not just in and around Dublin, but in rural areas where there would never be a demand. The politicians didn’t put a stop to it.’

Incentives were also offered to foreigners to come and invest in Ireland, which proceeded to push the greed even further. By the time the recession began in the USA, Ireland was already up to its eyeballs in a property bubble, and ‘even if the recession from the US hadn’t spread to Europe, Ireland’s market would have crashed on its own,’ says Casey.

Casey is certain that Ireland’s was a case of absolute oversupply, and the politicians who offered the planning permissions, as well as the bankers who gave out loans, should have stopped. With no regulations and no advisors, first-time investors, for example, were pulled in up over their heads, receiving 100+% loans.

Now they’re in debt.

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Jones and Catharine Zeta-Jones).

Many English consider Wales to be nothing more than a necessary detour when on their way to Ireland. But if you enjoy wideopen spaces with lush countryside, sheep and folk songs echoing through the valleys, then Wales might just be the right property investment for you.

cated work force. Additionally, Dublin, as London, is a strategic hub in the British Isles and a gateway to Europe. ‘But it’s the skills and education of the populace that brought in companies during the boom,’ says Casey.

The local builders, with the blessing of the local governments, overcompensated by building to a point that the supply well over matched the demand. And then they built some more. And some more. The builders were getting richer, as were the bankers and even the politicians. As for the people of Ireland, however…

‘Yes there was population growth. And yes the Irish nationals abroad were moving back home to take advantage of the growing economy and job market. But the amount of new homes being built

IT WILL TAKE TIME In 2012 in the main centres of Ireland, such as Cork and Dublin, prices have bottomed out. That’s the first step on the way to a market recovery. The entire economy of Ireland is suffering, however, and with a poor job market, there’s something of an exodus going on at the moment. The Irish are leaving for the greener pastures of Australia, New Zealand and Canada.

Casey believes that it’s still possible to consider Ireland as a property investment, but that it comes down to buying in the right locations. ‘Good deals are to be found,’ she explains, ‘provided you’re prepared to hold for the long term.’

The Property Services Regulatory Authority says the average price of a house in Ireland is at US$112,400 (£137,000).

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Numbeo gauges the per-square-metre average price of renting a three-bedroom apartment to US$2,422 (£1,500) in the city centre, and to US$1,937 (£1,200) outside the city centre.

THE CHANNEL ISLANDS – THE BAILIWICKS OF JERSEY AND GUERNSEY Located off the French coast of Normandy, Jersey is the largest of the Channel Islands and is best known to tourists for its sandy beaches, tea and fudge, and the breed of cow named after the island. The official languages are English and French, although Jerriais is regarded as the national dialect. The capital city is St. Helier.

The Bailiwick of Guernsey is slightly further north of Jersey but enjoys a similar climate and also speaks English and French, but has its own regional dialects of Guernésiais and Sercquiais. The capital city is St. Peter Port (St. Pierre Port).

The Bailiwicks also include smaller islands that, due to their strategic location between the north of France and the south of England, contain a history relating to the centuries of war between the English and French.

parity (PPP) in Jersey is higher than any other of the world’s developed economies due to a specialisation in a few high-return sectors of finance. However, the standard of living is comparable to areas just outside of central London.

Holiday rentals is a strong bet for property investors: tourism is booming due to the mild climate and historical sights, some of which date back to the Bronze Age, although the lack of VAT, driving down the cost of luxury goods on the island, may also have something to do with it. Jersey and Guernsey are also not subject to EU fiscal legislation, making them an ideal haven for businesses and investors.

The Land Registry of Jersey puts the average house price at £226,950 (US$360,172) with no annual change in the price.

Numbeo gauges the per-square-metre average price of renting a three-bedroom apartment to US$3,229 (£2,000) in the city centre, and to US$2,583 (£1,600) outside the city centre.

Guernsey is currently looking into setting up a Land Registry. However, Numbeo gauges the per-square-metre average price of renting a three-bedroom apartment to US$3,552 (£2,200) in the city centre, and US$2,179 (£1,350) outside the city centre.

Fortunately trade, not war, paved the way for these islands, laying the foundations for prosperity and neutrality where agriculture and shipbuilding became the norm.

Today the Channel Islands are selfgoverning parliamentary democracies (although still considered possessions of the British Crown) and maintain as well a Bureau in France in order to negotiate their own matters, although with a nondiplomatic status. The Bailiwicks of Jersey and Guernsey each operate separate from each other under their own laws and issue their own coins instead of using British sterling.

Regarded as having their own international identities and treated as part of the European Community, they derive their prosperity from the financial sector and tourism. In fact, the purchasing power

NOT JUST A TAX HAVEN Jersey’s Bouley Bay and Mont Orgueil (bottom).

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JERSEY AND GUERNSEY RESIDENCE AND FOREIGN INVESTMENT LAWS

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Citizens of EU member states may work and live in Jersey or Guernsey freely but non-EU citizens must apply for permission. Permission to work is typically granted, however, only if there is no other local suitable or available to fill the position.

Permission for long-term residency is also a challenge for outsiders and exceptions are usually only made for those already owning a residence – and the purchase of the residence is also subject to permission.

Basically a foreign investor stands a better chance of receiving permission to buy a property in the Bailiwicks if qualified to purchase a luxury property, or, if the investor can find some other means to make a significant contribution to the community through a hefty payment of taxes. In other words, if rich enough, an investor can buy his or her way in.

The law specifically states, in fact, that it will consider permission for foreigners to purchase property based not only on his or her contribution to the tax revenues but also on the ‘business/social background of the applicant and the associated benefit that

BRITISH I S LE S

PROPERTY MARKET

could arise … as a result of the taking of residence’ and ‘any other general benefits’.

It would seem, then, that the governments have set up the application so that, at the end of the day, it’s their choice as to who gets in and who doesn’t.

Commercial property investors will find it much easier to receive permission for their transaction as long as they are investing in an existing business and not creating a new one.

Additionally, the Islands tend to be more lenient in granting permission to foreign investors when the transaction is considered ‘passive’ – for investment purposes rather than long-term residence. Indeed, the Islands deter foreign investment for new businesses or immigration and, therefore, do not offer any incentives to attract foreign investment.

Between the years of 2002 and 2008, the average house price grew year on year at a rapid rate. In 2009 it dropped suddenly by just over 4% but 2010 evened out the loss. The latest information from the Land Registry only goes up until 2011 when the average house price was US$458,204 (£286,056), down again by 1.6%. Overall, there is growth in the sector. Rental costs average about US$2,422 (£1,500) across the island, as there is no proper ‘city centre’ by other city standards.

The property market in the Isle is transparent and open to foreign investors. In fact, there is a sizeable Asian community. However, the capital city (town?) of Douglas has a population just under 30,000 (84,000 on the entire island), meaning that the rental return market for property investors is significantly less attractive than most other capital cities.

Fortunately its tourist economy lends some relief. Instead, the primary goal of a foreign investor is the tax benefits offered by this offshore economy, especially to wealthy entrepreneurs.

Known in fact for its offshore banking and tourism, nearly a quarter of its work-age population is in the finance and banking sector. Considered a ‘low tax economy’, which includes no capital gains tax, wealth tax, stamp duty or inheritance tax, its income tax maxes out at 20%. Although there are also no corporate taxes, exceptions are made for bank profits and profits from rental or other income derived from land or buildings. Additional-

EUROPEAN UNION NATIONALS In 2005, the EU started an informationsharing practice called the Savings Tax Directive. This requires financial institutions to share income information based on investments of EU nationals back to their home country primarily so that foreign investors could not place their monies into one country in order to avoid taxes back home. Jersey and Guernsey, however, opted for a tax withholding scheme instead, which means at the time of the investment transaction, a percentage of the investment cost is put aside and then passed back to the home country of the investor. Although this applies only to bank interest, bond interest, and income derived from bond funds, money-market funds, loans and mortgages, this tax, which currently stands at 35%, may be hefty and so needs to be considered with any investment into the Bailiwick.

ROCK THE BOATS Douglas’ harbour, the Isle of Man’s capital and largest town, and the Calf Sound (below left) located at the island's south-west coast.

© VISIT BRITAIN

THE ISLE OF MAN Just as the Channel Islands, the Isle of Man, or simply Man, is also a possession of the British Crown, but is located in the middle of the British Isles in the northern Irish Sea, approximately equidistant between Great Britain and Ireland, closest to Scotland. The climate is mild with cool summers and temperate winters, although with a high percentage of rainfall throughout the year.

With its own Parliament dating back to the days of the Vikings, it is considered to be the oldest Parliament in the world. The capital city is Douglas and the official language is English although Manx Gaelic is considered a dying dialect.

ly, incentives are offered to businesses that want to set up shop on the island, especially in high-growth sectors like technology, banking and insurance and film and media.

Fortunately, the immigration and property purchasing powers of foreigners operate similarly to those of the UK, which is to say that the market is transparent. The Isle of Man welcomes foreign investment believing that an influx of new residents will serve to boost the population and its economic growth.

While certainly a major victim in the recent economic crises seen across Europe, which also drove even further the immigration off the island instead of to it, its status as a tax haven has helped a recovery, as well as the fact that it has a broad range of homes available, from apartments and condominiums to starter homes to high-end luxury estates.

Such a small amount of geography to encapsulate such a large amount of history, commerce, industry, culture, language… and property markets. The British Isles are not your typical ‘island getaway', but for a property investor looking for a primary residence, holiday home, or rental investment, there is perhaps no greater diversity – or opportunity – in the world.

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I

solated best describes the islandnation of New Zealand. Due to its remoteness, it was only first inhabited by humans some 1,000 years ago when a hardy lot of Polynesian seafarers called Māoris stumbled upon these islands and named the lands Aotearoa in their native tongue, or land of the long white cloud. For the next 500 years or so they were the only inhabitants of New Zealand, before the European settlers came in waves in the 17th to the 19th centuries.

The archipelago’s long period of isolation has lent it very unique flora and fauna, amidst a stunning landscape only a few places on earth can rival. So photogenic is this country that its inhabitants today, the Kiwis, as they’re more affectionately known, regardless of ethnicity, are afflicted with an insatiable appetite to explore the outdoors. And no one can blame them. New Zealand’s so blessed with a postcard-perfect sceneries it’s pointless to stay indoors.

But its history is also marred with violence. Land disputes resulted into bloody conflicts between the native Māoris and

European settlers. The introduction of potatoes and musket drastically altered Māori agriculture and warfare – the former ensured a steady supply of food to sustain lengthy military campaigns, the latter a more efficient (and brutal) way of annihilating enemy combatants.

But despite a clash of culture, things were eventually worked out. New Zealand’s British administrators were more enlightened than their counterparts in Australia. In 1840 the British and various Māori chiefs (at least 13 of them women) signed the Treaty of Waitangi, which established New Zealand as a colony of the British Empire and recognised Māori ownership of their lands. The country today is universally admired as the poster child of democratic government (the first to give women the right to vote) and harmonious race relations.

HIGHLY LIVEABLE Skyline of Auckland’s central business district, one of the world’s most liveable cities.

NEW ZEALAND

STUNNINGLY REMOTE This isolated archipelago some 1,500 kilometres south-west of Australia is ripe with holiday homes that offer good investment returns. By Rodel Ambas Jr.

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A highly developed economy, New Zealand had one of the highest standards of living in the world in the 1950s and 1960s.

However, the 1970s saw a deep recession, worsened by oil shocks and the entry of the UK, one of its major trading partners, into the European Economic Community. In the 1980s its economy underwent a major overhaul to overcome the long period of economic difficulty, and emerged as a liberalised, free-trade market.

As a result, the country now ranks highly in many indicators of socio-economic performance: 5th in the 2011 Human Development Index, 4th in the Heritage Foundation’s 2012 Index of Economic Freedom, 1st in Transparency International’s 2011 Corruption Perceptions Index, and 5th in the Economist Intelligence Unit’s Democracy Index 2011.

Its cities also rank highly in global liveability measures. For instance, Auckland and Wellington were ranked 4th and 12th, respectively, in Mercer’s 2012 Quality of Life Survey.

Agricultural products form the backbone that supports the overall New Zealand economy. They also comprise a huge chunk of its

NE W ZE ALAN D

Things to consider Although considered mature, foreigners face some restrictions when buying a property in New Zealand. For instance, purchases over US$82 million require approval from t e O erseas n estment Office imilarly transactions involving large tracts of rural land, or land bordering on nature preserves and bodies of water, require approval.

Buyers are not required to pay a stamp duty, and the real-estate agent commission is paid by the seller. If the buyer as ban financin le al fees are enerally about US$2,000. However, most foreigners pay in cash.

A buyer’s guide Foreign buyers mainly come from Australia, the USA and Europe – especially Britain, because of its historical ties to the region. However, more recently buyers from China, South Korea and other Asian countries have been increasingly showing interest in New Zealand properties.

According to rightmove.co.uk, ‘open homes’ are quite popular in New Zealand. This means sellers allow potential buyers to view theirs home at a particular time on s ecific days and no a ointments are necessary is way, buyers can view as many properties as possible.

Another popular way to buy a house in New Zealand is through auctions. However, if planning to do so, make sure that everything is organised before the day of the auction, such as having the property title checked by a solicitor and a building inspection carried out. Also, during the house auction, it is possible that the buyer might end up bidding against other potential buyers; hence, it is important to have a budget and stick to it.

Potential buyers should also make sure to check the Land Information Memorandum (LIM) of the property they would like to purchase. The LIM contains information from the local council about a property’s zoning, boundaries, building consents, etc. – in short, everything a buyer needs to know about the property.

Once the preferred property has been found, it is then time to make an offer to the seller. During this negotiation the seller may agree to remedy any faults the building inspection has uncovered. When the offer is accepted, the buyer is then expected to pay a 10% deposit on the agreed purchase price. Both parties will also agree on the settlement terms, such as when the contracts will be exchanged and when the balance will be paid.

Because no stamp duty is imposed to buyers and the agent’s fee is usually paid for the seller, the process of buying a property in New Zealand is not an expensive affair.

However, buyers typically pay for the following:

PROPERTY MARKET According to real estate firm Bayleys, there is a growing sentiment that New Zealand’s residential property market is slowly rebounding from the late 2000s financial crisis. However, the market’s improvement is expected to be muted at best, in terms of both activity increases and sustainable price

© JULIAN APSE / NEW ZEALAND TOURISM

exports, and have greatly diversified since the 1970s. The once-dominant wool industry has been overtaken by production of dairy products, meat and, more recently, wine.

Banking on its good image abroad, tourism unsurprisingly also forms an important part of the New Zealand economy, contributing US$12.7 billion (NZ$15 billion) - or 9% - to its GDP in 2010 and supporting some 180,000 jobs (or 9.6% of New Zealand’s workforce), half of them directly related to tourism.

This industry has benefitted a great deal from exposure through The Lord of the Rings film series. According to an article published in the Christian Science Monitor, tourist influx to the country surged 40%, from 1.7 million in 2000 to 2.4 million in 2006, thanks to planeloads of Tolkien fans. At the moment, the number of international visitors to New Zealand is predicted to increase 2.5% annually up to 2015 (though this figure could surge with the release of The Hobbit film series).

A number of foreign publications

too have listed New Zealand among their top holiday destinations, such as US-based Condé Nast Traveler, whose readers voted the country as their favourite destination in 2008. More recently, readers of UK paper The Telegraph voted New Zealand the best country to go on a holiday, and its national carrier, Air New Zealand, voted third-best long-haul airline. Since the start of a 2000 advertising campaign by Tourism New Zealand, there has been a 61% increase in the number of Britons coming to the country. To increase its exposure among its neighbours, the country’s official tourism agency spent nearly US$6 million (NZ$7 million) for a campaign in China.

Location Solicitor’s fee

Percentage NZ$1,000–2,000

Valuation fee

NZ$400–500

Transfer fee

NZ$50–70

depending on the extent of the searches to be carried out

Building inspection report NZ$400–500 LIM

NZ$100–400

NB: NZ$1 = US$0.85 (January 2013)

In addition, the buyer is required to pay a registration fee of approximately NZ$50 if buying with a mortgage, although most foreign buyers pay in cash.

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AUSTRALIA SYDNEY

N EW Z E A L A ND

Auckland MELBOURNE

NEW ZEALAND

growth. According to Wellington-based Quotable Value, prices in late 2012 are 0.5% above their 2007 high, partly due to strong growths seen in the Auckland and Christchurch areas.

The overall limited supply is also seen as a driving factor to the growth. For example, in April of 2012, there were only 10,174 new listings for houses, apartments and lifestyle properties in New Zealand, according to Realestate.co.nz, the lowest number in an April month for the last five years. Looking at the December 2012 data, the number of listings fell 37% from the previous month and 3% from the same month in 2011.

Sales volumes, on the other hand, have been consistently increasing since the end of 2009. According to the Real Estate Institute of New Zealand (REINZ), sales of houses, apartments and lifestyle properties are over 6,000 per month, a volume not seen since the last quarter of 2009.

Even though the market is showing increasing number of sales, overall activity levels are still below pre-recession levels.

However, despite this the market is considered tight, as the average number of days a property spends on the market is low, sug-

Covering an area of 268,680 square kilometres in the South Pacific, New Zealand is composed of two major islands: the North and South Islands. The latter is 33 larger, but is home to only a quarter of the country’s population of about . million. Besides the two major islands, the five largest inhabited are Stewart Island, Chatham Islands, Great Barrier Islands, d’Urville island, and Waiheke Island.

Its nearest neighbours are Australia some 1,500 kilometres to the north-west and the Pacific islands of Tonga and Fiji situated 2,000 kilometres to the north.

gesting purchasers are in a tight competition for their desired property and that properties are being snatched up pretty quickly compared with previous years.

The national median house price increased by $5,750, from $383,250 in November 2012, to a new record high of $389,000 in December 2012, an increase of 1.5% month-on-month. Year-on-year, national median house price surged 9.6% to December 2012.

HOTSPOTS According to Bill Sandston, a real estate lawyer and partner at the national law firm Chapman Tripp, foreign buyers are mostly drawn to the Auckland Region because of its cosmopolitan lifestyle. However, houses in New Zealand’s most popu-

CALM WATERS Milford Sound in the South Island’s Fiordland National Park, one of New Zealand’s most photographed sights.

lous city, especially in its Eastern Suburbs, are quite unaffordable. Housing median price rose 8% year-on-year to December 2012 in the region, according to data from REINZ. The Waikato Region in the North Island, on the other hand, is known for agriculture, especially dairy production.

This is where Fonterra, the world’s largest exporter of dairy products, was formed through of series of mergers of various Waikato co-operatives.

Another important wine-producing area is Hawke’s Bay Region in the North Island. The region’s long-hot summers and mild winters offer the best weather for growing grapes. And as of 2010, there are about 74 wineries located across the region, many of them producing awardwinning wines.

But perhaps New Zealand’s most famous wine-producing region is Marlborough, known for its Sauvignon Blanc and gave the Kiwis the confidence that New Zealand could produce some of the world’s most notable wines. Today, the region is home to 62% of the country’s total vineyard area.

© ROB SUISTED / NEW ZEALAND TOURISM

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Although only a quarter of New Zealand’s 4.4 million inhabitants live in the South Island, what it lacks in people it definitely makes up for in stunning landscape.

The Otago Region, especially the picturesque Queenstown-Lakes District, is a market favoured by foreign lifestyle-property buyers. Tourism makes up a huge chunk of the region’s income, and between 1996 and 2006 it is estimated the area’s population grew 60% due to this industry.

Then there’s the Southland Region, New Zealand’s most sparsely populated but is home to the world-famous Fiordland. This is where Milford Sound can be found, a fjord listed by website TripAdvisor as the world’s top travel destination in 2008.

PHOTO COURTESY OF PREMIUM REAL ESTATE

NE W ZE ALAN D

Located in the popular Okura Basin in the Auckland Region is a 560-square-metre home that offers both privacy and a stunning view of the upper Okura inlet. It boasts a designer kitchen with superb storage, granite counter spaces and family dining bar; formal dining and living rooms; and a games room. Its three upstairs bedrooms have their own lounge and study, while the spacious master bedroom has its own deck. Meanwhile, it has a separate guest apartment downstairs with its own entrance (current valuation is NZ$2.4 million or US$2 million).

PHOTO COURTESY OF PREMIUM REAL ESTATE

W H AT TO B UY

This 500-square-metre farmhouse is located in Dairy Flat about 28 kilometres north of central Auckland. With designs influenced by both Spanish and Italian villas, this sprawling property is a commanding presence in its rural environment. A grand entrance hall opens to a large open-plan living space with aged oak floors, wrought iron detailing and lime-washed plaster walls reminiscent of European architecture. It has five double bedrooms, four bathrooms, a huge library/study with balcony, a huge open-plan kitchen, a large formal lounge and an inground heated swimming pool within landscaped grounds.

For more information, visit www.premium.co.nz/22213

This beachside home is located in Milford in the northern shore of North Island’s Lake Pupuke, and has a stunning view of the nearby Castor Bay. Extensively renovated, it has four bedrooms, separate living rooms, and a home office, a spacious modern kitchen and a very large master suite with its own balcony. Children do not even need to cross the street to get to the beach.

PHOTO COURTESY OF PRECISION REAL ESTATE

For more information, visit www.premium.co.nz/22203

This striking home captures the widest of waterfront seaviews. Located along Kitchener Road in the Auckland’s Takapuna District, this 750-square-metre home sitting on a 1,234-squaremetre land has four bedrooms, four and half bathrooms, indoor and outdoor living areas, a gym, a steam room, a large swimming room and a three-car garage, and is a stone’s throw away from Takapuna’s cafés, restaurants, theatres and bars. Its ‘black rocks’ waterfront position is complete with a boat park (ideal for Sealegs) and is positioned between Thorne Bay and Milford Beach (registered valuation NZ$8 million or US$6.7 million).

For more information, visit www.precision.net.nz

PHOTO COURTESY OF PRECISION REAL ESTATE

For more information, visit www.precision.net.nz

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PENANG

MALAYSIAN MELTING POT This island (and state) along the Straits of Malacca shows no sign of slowing down. By Rodel Ambas Jr.

P

enang is both an island and a state, one of the 13 that comprise Malaysia, and the second smallest after Perlis. But for a state of this size, Penang surely packs quite a lot of punch.

Highly urbanised and industrialised, Penang is one of Malaysia’s most economically important states. It has the third highest Human Development Index among the country’s states, the third largest economy, and the highest GDP per capita.

The island also earned the nickname Silicon Island, being the Malaysian base of many technology companies such as Agilent, Motorola, Intel, Dell, Bosch, and

60

Seagate, among others. In 2005 it was accorded the Multimedia Super Corridor Cyber City status, the first outside Cyberjaya.

Similar to Singapore and Malacca, Penang is a former Straits Settlements of the British Empire in the 19th century. Decades of immigration from India, China, Britain and other parts of South-East Asia gave the state a unique blend of different cultures not unlike that of Singapore, which can be seen in the architecture of its bustling and colourful capital Georgetown, a UNESCOinscribed Heritage Site. Located in the eastern portion of the island, Georgetown has been cited in an ECA Inter-

STRANGE BREW Penang is an eclectic mix of cultures, which gives this island an interesting atmosphere. © MALAYSIA TOURISM BOARD

national survey as Malaysia’s most liveable city, outranking popular Kuala Lumpur and just notches below Hong Kong and Singapore.

Besides being an economic powerhouse Penang is also a thriving tourist destination. Its airport, located on the island’s south-eastern section, is Malaysia’s third busiest and welcomes travellers from Bangkok, Singapore, Jakarta, Hong Kong, Taipei and Guangzhou. The state is also positioning itself as a favoured MICE (meetings, incentives, conventions and exhibitions) destination within the Asia-Pacific region, with the Penang Waterfront Convention Centre, scheduled for completion in 2017, expected to give this sector a major boost.

PHUKET

THAILAND

PENA N G Gulf of Thailand

MARKET OVERVIEW

ECONOMIC OUTLOOK According to Teoh Poh Huat, director of Penang office of international asset consultant Henry Butcher, Malaysia economic growth is expected to remain stable despite the overall gloomy global economic outlook. He added that 2012 was relatively quieter compared with 2011, because astute investors are pragmatic in their investment decisions.

‘Conventional wisdom…dictates that buying properties in choice locations in Penang are still the preferred mode for wealth creation,’ Teoh said. ‘The euphoria has abated but consumer confidence definitely remains high.’

PENANG Straits of Malacca

MALAYSIA

With an area of 293 square kilometres, Penang is Malaysia’s fourth-largest island (but the state of Penang, which includes Seberang Perai across the strait on the mainland, is the country’s second smallest). The island is connected with the mainland via the Penang Bridge. A second, longer bridge is due for completion in late 2013.

There are also a number of outlying islands that are part of the state. These include Pulau Jerejak, a former leper colony that is now a tourist attraction; Pulau Aman, Pulau Betong, Pulau Gedung, Pulau Kendi and Pulau Rimau.

A resident of Penang is colloquially known as a Penangite.

Kuala Lumpur

SINGAPORE

CITY BY THE STRAIT Georgetown, Penang’s capital, boasts a busy business district and a UNESCO-inscribed old quarters.

© MALAYSIA TOURISM BOARD

As with the rest of Malaysia, Penang’s property market was hit hard by the late 1990s Asian financial crisis that plunged many Asian countries into deep recession. However, prices have started to rise steadily since the end of the recession, according to Nixon Paul, managing director of Kuala Lumpur-based Carey Real Estate. Lessons were learned from the region-wide crisis: the global economic downturn four years ago was nothing more than a minor blip in the country’s overall property market.

The state’s market is doing pretty well, too, with some sectors expected to see a stable 2013. The landed property market is in fact expected to increase as supply in prime areas decreases when compared with demand, especially with the scarcity of land.

According to Datuk Jerry Chan, chairman of REHDA Penang, there are three main factors that drive the state’s property market.

These are liquidity, easy and cheap credit and a bullish sentiment. He added that prices have increased because the costs of procuring new lands, and of labour and construction materials have escalated as well. ‘If you’re hoping that property prices will finally stop soaring, don’t hold your breath,’ he said.

And with property prices on the island showing little sign of slowing down, many experts advise those with smaller budgets to invest on properties in the current growth corridors on the mainland.

Another area to keep an eye on is the rental market. According to analysts, this segment will be driven by young couples and professional singles who are looking to live in areas close to their workplaces. In fact, there have a been a number of new launches over the last few years offering smaller units that target childless young couples, as well as potential investors with disposable income.

Overall buyers are expected to remain cautious but optimistic with the market, with purchases concentrating on the traditional preferred locations and also for projects that offer high-quality specifications, according to Teoh.

The market has also received a boost from the government’s initiative Malaysia My Second Home programme. Many foreigners have identified Penang as a preferred destination because of its relatively lower cost of living and the availability of top-notch healthcare facilities. However, as of the moment, foreigners only comprise less than 8% of the total residential property buyers in Penang, but this segment is expected to rise, with Penang endearing itself to the international community as a tourism, retirement and second home paradise.

According to Chan of REHDA Penang, the state’s property market will see

a sustainable growth of between 5% and 10% in 2013. He said property market in Penang will remain bullish amid rising demand for houses due to the increase in jobs as an impact from foreign investments as well as growing population.

‘The population projection for Penang is 2 million by 2020, therefore more houses are needed. Some 12,000 houses are expected to be built yearly until 2020,’ Chan said.

In addition, the second Penang Bridge, which is scheduled to be completed in September 2013, will definitely give the market a major boost, especially the areas adjacent to the new bridge, such as Batu Maung and Bayan Lepas on the island, and the corridor from Simpang Ampat to Nibong Tebal encompassing Sungai Bakap, Valdor and Batu Kawan on the mainland.

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P E NA N G

W H AT TO BU Y Seen as a vote of confidence, many Kuala Lumpur-based developers have for years been a constant presence in Penang’s property market.

And many of them are scheduled to launch projects that are expected to flood the market with new supply.

One of which is MRCB’s 3.34-acre Batu Ferringhi Residences, on the island’s north-western touristy section. The project is comprised of 17 boutique villas and 48 condominium units located within a short distance from the island’s famous beaches, and close to many high-end hotels such as Hard Rock Hotel and Shangri-La’s Rasa Raya Resort and Spa. Located in Batu Maung is Sunway Bhd’s Sunway Cassia (see photo below), which offer prospective buyers freehold, three-storey terraced houses, each with a floor area of more than 3,000 square feet (278 square metres). The project is approximately 4 kilometres from the yet-to-be-completed Second Penang Bridge and 5 kilometres from the airport.

Also in Batu Maung is Mah Sing Group’s Southbay City project. Modelled after notable seaside developments, such as Sydney’s Darling Harbour and London’s Canary Wharf, this freehold, integrated township boasts restaurants, residences, a shopping mall, two blocks of hotels and other commercial and recreation attractions.

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Things to consider According to BuyAssociation.co.uk, foreigners are legally allowed to buy properties in Malaysia (condos/apartments, landed houses, land and commercial propertiers), but there are restrictions that should be kept in mind. Foreigners are permitted to buy two houses at a cost no less than MYR150,000 (US$49,128) and are allowed to apply for finance at a rate of loan to alue Also note that there are some areas of the country not opened for foreign buyers. Hence, if you are considering buying your own plot of land upon which to build, it is vital you check this ahead of signing any contracts.

According to iProperty.com.my, on average it takes about 4–6 months for a foreigner to transact a purchase. They are also subject to 28% tax on rental income or an effective 20–25% after allowable business expense deductions. Also, foreigners are advised to avoid leasehold properties because, although cheaper, the transaction takes longer to get completed (about 7-10 months) as state authority approvals are required.

Properties from developers, on the other hand, are normally delivered 2–3 years after the launch and the developer will progressively bill the owner or the bank as the construction progresses. There are restrictions, however, in purchasing condos from developers, such as 30% of the units be reserved to Bumiputeras (who get 5% discount off the listed price). If these units are unsold, foreigners are allowed to buy these in the secondary market if the developer has procured a release from the government as long as they show proof that they are unable to sell these units. inancin is also a ailable to forei ners ocal ban s ty ically finance up to 70% of the property value, and there are no restrictions on the number of loans that can be applied for. However, it is important to make sure that the loan process is under process the moment the Sale & Purchase Agreement is signed.

Another option for foreigners, especially retirees, is to avail of the Malaysia My Second Home programme. Intended to assist foreign retirees and to market the country is a thriving retirees’ haven, the programme has removed some of the basic obstacles for foreigners buying property in Malaysia (for more information, visit www.mm2h.gov.my).

CRETE

MINOAN TROVE

© GNTO / Y. SKOULAS

With Greece on the grip of a debt crisis, Cretan properties, at increasing numbers, are becoming available at discounted prices. By Rodel Ambas Jr.

F

ew islands on earth can compare with Crete, a Greek island (the country’s largest) that’s got history older than Greece itself. Its remarkable history plus stunning landscape and almost year-round sunshine are just some of its selling points. But this is not to say that Crete is all glitz and relaxation without so much hard work. Compared with the rest of the country, its economy is diverse and relatively robust. Its per capita income is much higher than the Greek average, while unemployment is at approximately 4%, about half of the national average.

As with many Mediterranean islands, vineyards and olive groves are a common sight in Crete, making its wines and olive oil famous all over the world. Its dairy industry makes some notable products as well, such as the island’s specialty cheeses mizithra, anthotyros and kefalotyri.

And Crete has the honour of hosting nearly a quarter of all visitors to Greece. And who can blame them? The island offers plenty of attraction – from the ruins of the Minoan palace of Knossos to the Venetian fortresses of Rethymo, and from the Byzantine monasteries to the cave that is the legendary birthplace of Zeus – it is safe to say that it has everything Greece has to offer.

CAVING IN A beach in Matala (above), a village in Heraklion, Crete, viewed from one of the area’s many artificial ca es An islet off the coast of Chania (below) in northwestern Crete.

© GNTO / Y. SKOULAS

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CRETE

COASTAL CRETE Port and promenade of the town of Agios Nilolaos in Lasithi (above), and the island of Spinalonga, which was once a peninsula.

PHOTOS Š GNTO / Y. SKOULAS

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GREECE

TURKEY CRE T E

CRETE CYPRUS

MARKET OVERVIEW As has been mentioned many times previously, Greece’s vacation or holiday home market is attractive owing to the country’s position as a top tourist destination. In fact, according to Liz Rowlison of A Place in the Sun publication, Greece is a consistent performer on the wishlists of British nationals looking for second home abroad.

However, mention the word ‘Greece’ and most investors will turn the other way – the country is in the grip of a debt crisis (which for many months now is imperiling is membership to the eurozone), no sector of its economy has been spared.

In response to the fiscal crisis the government plans to increase property taxes, which has forced many to sell to avoid new taxes.

Some have even allowed buyers to have steep discounts. And with such high inventory of homes in the market, the time is again ripe for foreign investors to snatch attractive properties at discounted rates.

Indeed farsighted foreign buyers are purchasing houses in Greece so that they can then, in turn, rent or lease these properties to other individuals. Because of the large number of people who travel to Greece (and to Crete, specifically), this type of property investment is proving to be very profitable for a significant number of foreign nationals.

At 8,336 square kilometres, Crete is the largest and most populous of the Greek islands, and the fifth-largest in the Mediterranean Sea. In addition to the main island, numerous islands, islets and rocks hug the coast of Crete (many are tourist spots, some visited by archeaologists and biologists, and some are nature reserves).

Some of smaller islands include the famed prirate island Gramvousa, Elafonisi, Chrysi, Paximadia, the former Venetian port and leper colony of Spinalonga and Dionysades.

MARKET TOWN A street bazaar in Rethymno and the town's old Venetian port (below, left).

PHOTOS © GNTO / Y. SKOULAS

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CRETE

A buyer’s guide Before anyone (a citizen of Greece, the EU or another foreign national) can purchase real estate in Greece, e or s e must first obtain a ta role number w ic is known in Greece as AFM. This number is easy to get and can be obtained at any ta office in t e country. Citizens of Greece or another EU nation need only show their government-issued ID card. Citizens of other countries, on the other hand, must show a passport to obtain the AFM. Greek authorities, as with any government, are very concerned about where money is obtained to purchase a property in Greece. As a consequence, a foreign national interested in buying property in Greece will need to obtain what is known as a ‘pink slip’ for wire transfers of money from abroad. If a purchaser cannot, he or she must demonstrate where the money is coming from, and Greek authorities will consider any money wired into the country as income and will tax it accordingly.

In addition, money to purchase real estate in Greece must come directly from a Greek bank and bank account. Therefore, before a person can actually make a purchase of real property in Greece, he or she will need to open a bank account. Provided that a person has proper documentation, and provided that a person has the pink slip to demonstrate the origin of t e money in ol ed it is not difficult to o en a ban account in Greece.

A ublic notary w o is an inde endent official oversees the real-estate purchase process. Once an offer is made on the property, a preliminary contract is drafted. A deposit of up to about 10% is placed on the property at the time this agreement is executed.

(The deposit is not refundable unless the seller somehow disrupts or ends the sales process or unless clear title to the real estate cannot be had in the time allotted under the preliminary contract.) After the buyer obtains is or er financin and t e seller satisfies is or her own obligations under the preliminary agreement a final contract is si ned between t e arties it t e e ecution of t e final contract t e ownership of the property will be conveyed legally to the buyer e final contract is si ned before t e ublic notary. In addition, according to Greek law, the real estate agent (or agents) involved in effecting the sale must be resent for t e si nin of t e final contract Capital gains tax, which is charged as a percentage of the property value scaled for length of ownership and will be between 10% and 25%. It is usually exempt when using the proceeds to move from one home to another in Greece.

© GNTO / Y. SKOULAS

The best-known areas may be too touristy for some (although there are plenty of foreign nationals, British predominantly, who have gone there to set up business that rely on the tourist trade), but there are villages further inland that are very cheap, have access to picturesque beaches and are largely devoid of holiday-makers.

Crete is subdivided into four major regions, each with a distinctive character. Chania on the western side is dominated by the impressive White Mountains and its famous National Park, which occupy the largest part of the region. The region provides tourist services and activities of all kinds, satisfying all the choices, and its major city, also named Chania, is famous for its Venetian port.

Located between the White Moun-

tains and Mount Psilorítis is Rethymno, the island’s smallest region. It has become synonymous with mountainscapes, beaches, Cretan lyre melodies, monasteries and monuments, mountain villages and luxurious holiday resorts.

The largest and most densely populated region is Heraklion, nestled picturesquely among Mount Psiloritis and Lasithiótika mountains. A bustling city, its capital Heraklion (and the island’s major city) is the main stopover of travellers who Crete.

The least mounatainous of the Cretan regions, Lasithi is home to many ancient ruins, such as the Minoan towns of Vasiliki, Fournou, Korifi, Pyrgos, Zakros and Gournia, and the Doric towns of Lato and Itanos. Its capital is Agios Nikolaos.

W HAT TO BUY Variety best describes Crete’s holiday home market. Whether you are after beaches, archaeology, nightlife, mountains, wildlife, flowers, hiking trails, gorges, water sports or anything else, there is certainly something to suit your preferrence.

The fees for buying real estate in Greece total are between 15% and 20%. Purchase tax is charged depending on the property’s value at between 9% and 11%, in addition 2% is charged on top for properties located in cities. Land registry fees should be about 0.3% of the assessed value plus a small sum for stamp duties and certificates e real estate a ent’s fees are usually paid by the vendor.

The Litsarda Villas Crete property development (www.caversham-barnes.com/litsarda-villas.php) located to the west of the island comprises nine individually designed homes in location with panoramic views of Crete’s White Mountains and Souda Bay in the Mediterranean. Located 40 minutes by road from Chania International Airport and 75 minutes from Heraklion Airport, the development is close to the heart of the village of Litsarda and 2 kilometre from shops, bank, post office and healthcare facilities in the town of Vamos.

Property tax in Greece is generally quite low, from 0.25% of the property’s declared value annually. This will cover local services. A community tax of around 3% of the property transfer tax is paid to the local municipality for general public services.

Prices of the properties still available at Litsarda Villas start at €269,900 (US$354,096) for a two-bedroom villa, including a self-contained lower ground floor with the potential to create three additional bedrooms. The properties are supplied fully furnished and equipped, so prices include everything from beds to bottle-openers.

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THE BAHAMAS

CARIBBEAN TREASURE The West Indies’ most stable democracy is a trove of photogenic real estate. By Rodel Ambas Jr.

O

fficially known as the Commonwealth of the Bahamas, this island chain off the south-eastern coast of Florida is composed of more than 3,000 islands, islets, rocks and cays, only 29 of which are inhabited.

One of the America’s most prosperous and stable economies, the Bahamas was known for a rather different reputation when it was still a lonely Caribbean outpost of the British Empire in the first half of the 20th century. In fact no less than Duke of Windsor Edward VIII and a for-

mer governor of the islands infamously called the Bahamas a third-class British colony. However, modern political and economic development began to emerge after the Second World War. The first political parties were formed in the 1950s; its economy – based on the twin pillar of tourism and offshore financing – began to prosper; and the British made the islands internally self-governing in 1964.

In 1973 it gained its independence from Britain, marking the birth of a politically stable democracy, one of the few in the Caribbean.

PHOTO COURTESY OF BAHAMAS MINISTRY OF TOURISM

TO BEACH HIS OWN A kayak in Schooner Cays, a picturesque group of cays off Eleuthera, one of the Bahamas' many islands

67

B A H A M AS UNITED STATES OF AMERICA

Abaco

Grand Bahama

FLORIDA

North Atlantic Ocean

Eleutheras Island

Nassau Andros Island

CUBA

THE BAHAMAS Cat Island

Consisting of about 3,000 islands, islets, rocks and cays, the Bahamas lie in the same island chain as Cuba, Hispaniola and the Turks and Caicos Islands. Its population, numbering around 3 ,000, lives on a land area of 13, 3 square kilometres. Most Bahamians live on the major islands (New Providence, Grand Bahama, Eleuthera, Abaco, Exuma, Long Island, Inagua, Cat Island, Bimini and Andros).

IN THE PINK OF HEALTH Although not spared by the global downturn, the Bahamian economy continues to grow thanks to tourism. (Clockwise from left) A house in San Salvador Island; colourful houses in Eleuthera Island; a rocky coast in Long Island; and a white-sand private beach in Exuma Island.

BAH A MAS

Today the Bahamas has comprehensive and modern infrastructure, particularly on the two major islands, New Providence and Grand Bahama, where most of the population live. Its economy is estimated at US$6 billion, 60% of which comes from tourism-related activities and 15% from financial services. The country’s per capita income is US$20,000, one of the highest in the Caribbean region.

MARKET OVERVIEW As a market closely tied with the US economy (about 80% of buyers here are Americans), the Bahamian real estate was hit hard by the global downturn and is yet to see a stable recovery. According to Everett Pinder, a real estate agent with Treasure Cay Real Estate, prices dropped by as much as 30–40% between 2007 and 2010, depending on the area, and prices are still down that far.

However, there are indications that the market is stabilising. According to Savills’ James Burdess, prices have steadied in 2012 and sales volume is increasing thanks to bargain hunters looking for fabulous yet affordable

second homes. Many buyers, especially those from the USA and the UK, are now returning to the market, and interest from Latin America and Asia is also increasing.

Properties in the capital Nassau in New Providence Island tend to command higher prices as the city is within an easy reach from the USA, Canada and the UK (JetBlue, United, Delta, US Airways, British Airways, and Air Canada fly regularly here). In addition, Nassau has more shopping and nightlife.

In 2014 Nassau will see the largest casino complex in the Western Hemisphere with the opening of Chinesefunded Baha Mar on Cable Beach in New Providence. Dubbed a ‘mini-Las Vegas’, it will have 2,200 hotel rooms, the Caribbean’s largest casino, five acres of conference facilities, a Jack Nicklaus-designed golf course and 307 private residences and villas for sale.

Aside from the main island of New Providence, several developments are well underway in other Bahamian islands. One of which is the 220-acre Schooner Bay on Great Abaco.

A buyer's guide According to Island Living Real Estate’s Rachel Pinder, the Bahamian real estate market is on a path to recovery. ‘Most experts agree, with money cheap to borrow and houses cheap to buy, the time to invest is now.’

Being an investor, though, is easier said than done, with many factors that need to be considered before first time buyers ta e into consideration buyin a property in the Bahamas. These factors include: Choose a property that suits your goals. Do you want to be a landlord or are you going to hire a property management company? In addition, do you want an apartment, a condo, a home or a land to develop?

Organise a team of professionals starting with a reputable real estate agent and a lawyer. Experienced ones understand the market and can show you properties that will help you make the most of your investment.

As always: location, location, location. If your goal is to rent the house out, then pick the right location.

Houses located in touristy areas are always a safe bet.

If your property offers the most number of features, such as being close to commercial areas yet within walking distance from the beach, then it’s likely to attract the most number of renters.

According to Coldwell Banker Real Estate LLC, nonBahamians who do not own property in the Bahamas and who are buying less than two acres for singlefamily use need only to register their investment with the government. The same principle applies to non-Bahamians buying improved property under two acres, which is developed as a single-family residential property. These owners of second homes in the Bahamas may apply for an annual homeowner’s resident card at the Immigration director. However, a government is required if the property to be purchased is intended for non-single-family use and is over two acres.

In addition, a graduated tax is payable on the conveyance of all real property based on the following value:

Value

W H AT TO BU Y There are a number of developments that will grace the many islands of the Bahamas over the next few years, one of which is Baha Mar, which is set to change the landscape of New Providence Island is Baha Mar. Scheduled for completion in December 2014. Dubbed mini-Vegas, this B$3.5 billion resort and casino complex is located about 10 minutes from the capital’s airport , is funded by China’s Export-Import Bank and will have four hotels and 307 upscale private residences and villas. www.bahamar.com

Another notable development is the gated resort community of Treasure Cay, Abaco, where a newly built, four-bedroom unfurnished house sitting on a 1,421-square-metre lot is listed at B$2.995 million. This single-family, waterfront property has a built area of 450 square metres, including covered veranda and garage, set on a landscaped lot.

Percentage

Up to and including B$20,000

4%

B$20,001–50,000

6%

B$50,001–100,000

8%

B$100,001 and up

10%

(NB: The Bahamian dollar is pegged to the US dollar on a one-to-one basis.)

First-time homeowners, upon successful application, are exempt from paying stamp duty on homes valued below B$500,000. The stamp duty is generally shared equally between buyer and seller, unless otherwise agreed upon. n addition t e first on owner occu ied residential property is tax exempt. The rate for properties worth B$250,000–500,000 is three quarters of 1%, while those over B$500,000 are taxed at a rate of 1%. As of 2013, there is a ceiling of B$50,000 on owner-occupied homes.

www.bahamasrealty.bs/view/Abaco+Islands/Brigantine+Bay+Home/567237/buy/

69

CONVERSATION F E BRUARY— MARCH 2013

Changing

the rules of the

game Uruguayan-born architect Carlos Ott talks to Property Life about architecture, and why he will never design a box building.

T

here is more to Carlos Ott than meets the eye. Born in Uruguay, but choosing to set up his roots in Canada, the architect extraordinaire is slowly changing the face of major cities all over the world. With his unique style in design, one can be assured that no two buildings/projects will have the same look. Charge it to years of experience in the business and the different cultures he has come across in his travels, Carlos always seems to see something in one city that an ordinary person with ordinary eyes cannot, something that sets a city apart from the rest. To say that he has etched his name on the global design map is to underrate the man.

A PORTFOLIO LIKE NO OTHER If you have not heard of Carlos Ott, chances are you have been living under a rock. This man has been everywhere, with projects in South America, Europe, Asia, and the Middle East. His works also show his versatility, having designed numerous projects in different categories – airports, commercial establishments, conference centres, hotels, residences, you name it.

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PHOTO COURTESY OF ROCKWELL LAND INC.

By Ma. Teresa C. Dumana

BOX BUILDINGS, BEWARE Carlos Ott during the launch of Rockwell Land’s Proscenium.

But his monumental project, the one that catapulted him to success, was L’Opera de la Bastille in Paris, and this, when he was a callow 25-year-old hoping to strike gold. And strike gold he did! Looking back, Carlos shares that the project was a baptism of fire for a young architect like him and that his biggest challenge was ‘to maintain the original concept and improve it with the participation of a multidisciplinary team under my direction’.

That big break at L’Opera was akin to the Storming of the Bastille, though this time it came with felicitous results. He made a name with that successful first project, and the rest, as they say, is history. He had made his mark in the business, and he was ready, nay, aching, to take on bigger challenges.

WHY MANILA? He has been in practically all the great cities of the world, so, one asks, why did he decide to accept a project in Manila? Carlos must have seen something in the city that appealed to him, both as an architect and as a citizen of the world.

Carlos will never agree to design a typical, boring, box building. ‘My education, my cultural background, my way of being leads me to conceive an architecture that tends to be sensual, organic, natural,’ he says when asked to comment on the city’s skyline being dominated by box buildings.

Manila is lucky to have a Carlos Ott design a building here. The architect himself is a firm believer that different styles and forms should and can coexist. Carlos says, ‘Uniformity is not necessarily ideal; and hopefully, I bring a different point

CONVERSATION FEB R UA R Y — M A RC H 2 0 1 3

A gem in the urban jungle Billboards announcing the rise of a new gem in the city have been put up, months ahead of the groundbreaking, giving rise to a sense of expectation in Makati. Anyone who has been in the vicinity of Rockwell Center would know that something big is about to rise.

SIGNATURE CURVES Ott’s distintive architectural style is apparent in the just-launched Proscenium.

This may just be the perfect place for the Carlos Ott project, The Proscenium.

Even he believes that it is a unique endeavour – with the high-rise condominium mixing a lot of things together. The property is said to fuse together living with its ample-sized units, retail with its classy restaurants and shops, and even art and culture with is state-of-the-art theatre.

In detail Carlos says, ‘Our intention in Proscenium is to build a pedestrian environment with a piazza and retail with gastronomy and cultural venues, to bring additional interest to the residential buildings surrounding a green park.’

PHOTO COURTESY OF ROCKWELL LAND INC.

Besides thinking up ways of how to make the property itself unique, it was also u to arlos to ma e t e roscenium’s fi e towers com letely different from each other. Carlos shares that Rockwell wanted each tower to be unique, but still a e one unifyin t eme to old all fi e towers to et er e says t at Mozart would have called it ‘variations within a theme’.

Carlos promises that ‘each tower has a different personality and characteristics, providing different options to potential buyers.’

And by different options, he means that ‘the development is centred on cultural acti ities suc as t e erformance all t e o e useum and retail related to cultural venues. It will also provide potential buyers with a unique environment, in addition to the obvious attraction of being part of Rockwell Center.’

of view that, although different, does not collide with the existing environment, but enhances it.’

The city may have to wait a little longer to see this vision come to fruition, though the project has been laid out and the designs are now available for viewing online. Like his followers, Carlos was excited to start working on a project this side of the world. He says that he has never

MASTERPIECE The Carlos Ottdesigned L’Opéra de la Bastille in Paris.

been to the country prior to undertaking this project. He also feels that his Spanish ancestry gives him a feeling of connection to the people whose culture is heavily influenced by over 400 years of Spanish rule.

Carlos only has good things to say about the development of the project.

‘Certainly, what convinced me to agree to do the project was the very spontaneous and easy dialogue that I had with Rockwell Land when we first discussed the project in New York. I felt that we both were in the same line, and were looking for the same approach,’ he says.

THE VISIONARY SPEAKS With his many developments Carlos Ott believes that there are a still a lot of things to learn, what with the constant changes in design and trends in architecture. It has been many years since his success with the L’Opera de la Bastille in France, and still the man likes to keep an open mind with his designs. He is forever creating and recreating, changing the rules and making new ones, and pushing the limits of his creative genius.

As a visionary who can see beyond what is there and glean the minutest of details even before a property has

been put up, Carlos confesses to a preference for structures with simple designs. ‘I believe that some of the best examples of progressive and modern architecture are small, low-rise buildings, like the Guggenheim Museum in New York City and the Barcelona Pavilion,’ he shares. That ode to simplicity is significant, coming as it does from a celebrated architect who thinks, and works, out of the box (pun intended) to create structures that inspire awe and bring on that indefinable I-love-it-here feeling.

Carlos has a broad perspective on the job he loves. He encourages fellow architects to teach politicians and developers of the importance of urban planning and of creating spaces where people can live safely and well. ‘Yes, that is the role of architects,’ he says, ‘but it is also the role of all of us: the musician, the engineer, the housewife, and the teacher.’

Urban planning is the result of our collective desire for that perfect place to live and work and play. It is imperative that we plan every city’s development and growth, for, as Carlos points out, it is ‘the habitat for half of the population of our planet, and we all should participate in its conception.’

71

FEATURE F E BRUARY— MARCH 2013

Let’s talk furniture In an era when every idea can be copied, one furniture retailer supports designers’ life work.

By Ma. Teresa C. Dumana PHOTOS BY Mike Ambas

P

roperty owners are becoming much more conscious of their interior space. They’ve gone beyond having a nice wall with fresh paint or pretty wallpaper, or a room with ample moving ground. Thanks to catalogues and the internet, homeowners have now become more and more enlightened on using furniture to prettify their homes – no matter how small or big their space may be.

To let us in on the intimate details of furniture, we sat down with furniture guru Joey Luna of Shelter Manila and Furniture Direct fame. Here, he shares his love for furniture and how he imparts his passion to his clients.

THE INSIDE MATTERS NOW Joey begins by telling us how different Manila was when he left for the United States to study in the 1970s. He says that it was all about the grand scale of a home, especially in the gated communities of Dasmariñas Village, Forbes Park, and the like. The bigger, the better, seemed to be the trend back then. Fast forward to today, ‘Now it’s different coming back to Manila, I’m seeing that people are more aware of the environment inside the home,’ says Joey.

This change in perspective among Filipino homeowners is what gave Joey and his partners the chance to give their clients

72

FINE CRAFTSMANSHIP Global Views modern secretary (US$6,245).

the kind of environment they want to create. Together with interior designers, Ivy and Cynthia Almario, Joey has been helping create the look and feel of home after home, from the design of the structure, to the look and feel of the furniture and other house accessories.

Joey has been pleasing clients since his business partners, Lee Imperial and Howard Lam, introduced him to the industry in 2001. As one of the most trusted furniture retailers in town, he is sought out by clients who want advice on what is right for their homes. Coming from one who has fallen in love with furniture, such advice is priceless.

Since interior design and many of its aspects is a relatively new concept for most homeowners, Joey says that listening to a client is at once essential and crucial. ‘To best assist a client we listen to them. We find out what is important to them. For instance, is it comfort before

style or vice versa? We need to know if they have younger kids, older kids, or pets.’ He continues, ‘Understanding all this allow us to tailor fit any product to a customer.

With the actual selection of design, we do our best to offer samples of current fabrics and finishes that will allow a customer some truly unique possibilities.’

UNDERSTANDING THE FURNITURE WORLD With the demand coming in fast from this side of the world, Joey and the team have been up on their toes sourcing only the best materials for their discriminating clients. Joey shares that as early as now, they will be flying to New York to look for and source Christmas items. They’ve been travelling a lot to attend expos in different countries to ensure that they get only the best to suit their client’s impeccable tastes.

With all the sourcing they’ve done, Joey has seen almost everything in the design world, even before any new thing starts ‘trending’. Asked about the trends in design for 2013, Joey says that jewel stones are what’s hot right now. ‘We already did the buying for the first quarter back in the fall, and what we saw were all jewel stones – purples, turquoises, and lime,’ he explains, pointing out that the colour combination is reminiscent of ‘the tail of a peacock’.

FEATURE FEB R UA R Y — M A RC H 2 0 1 3

RARE BOOKS Shelter also carries a wide selection of ard to find boo s

Besides following trends, Joey is a firm believer that everything must fit. And by ‘fit’ he means that homeowners should be practical about the furniture they buy. To illustrate, he shares a story about a homeowner who bought expensive furniture from Italy, which started to lose its shine a year after its purchase.

Joey explains that in buying furniture, especially overseas, homeowners should know which countries to get their furniture from. Most people, he says, aspire to source from New York, but homeowners are perhaps best advised to heed the furniture guru’s word – to go the way of Honolulu, Miami, or, closer to home, Singapore.

This is the one thing that Joey strictly adheres to when it comes to selecting furniture. ‘Furniture selection for the actual store is always based on the local market.

We of course introduce our own style as a store, but we most definitely listen to the local market,’ he says.

With their original accessories doubled with a highly creative team, Joey shares that realty developers have been coming up to them to help them design their model units. Joey shares that the model units of Ayala Land, Arya Residences, and Vista Land were accessorised through them.

But what makes Shelter stand out among the rest of the design ateliers in Manila? ‘What makes Shelter different is the constant travel by us to and from the USA. We are on a plane every other month and are able to update our product information and showcase the very latest to our customers,’ says Joey.

ing copies and passing off fakes as the real McCoy. ‘We feel that we are really taking away from an artist, stealing from them.

Everything we have here is an original and we want to stick with that.’

He even jokes that sourcing for items to bring to the Philippines is actually the complete opposite of how they source for materials in the USA – looking for designs that have not been copied. Joey shares that the CEO of Shanghai Tang has shown

particular interest in showcasing his items in Shelter. However, he is a bit hesitant for fear of exposing his designs to copycats.

During the conversation, the topic of Kenneth Cobonpue having to sue copycats almost every month came up. Being able to relate to Cobonpue’s experience, Joey says, ‘Some interested parties inquire about that. His [CEO of Shanghai Tang] fear of coming into Manila is exactly what Kenneth Cobonpue is feeling.’

FINE FURNITURE Della Robbia Taylor sofa (US$7,300); an exquisite Excelsior light wood chest (bottom left, US$4,870); and a uir y c andelier by Arterior (US$3,170).

STICKING TO THE ORIGINAL Same goes with anything related with design. Joey laments that copies of copies of original work are still being sold in shops.

‘Being based in the States, we abide by the rules.’ He assures that they always carry the original and never ‘a copy of a copy of something’. He feels strongly about mak-

Shelter is located along Jupiter Street,Makati City, Philippines.

73

FEATURE F E BRUARY— MARCH 2013

The rental market factor How to make the most of the Australian property market.

A

By Alexander Knight

WHAT DO TENANTS WANT? Not many investors are aware that the national rental vacancy average in Australia is 2.4%. However, when you look at the breakdown state by state, the figures are vastly different. For example the Melbourne rental vacancy average is a staggering 4.4%, nearly double that of Sydney and the Gold Coast, which are hovering below the national average, at 2%. The Perth property market now has a vacancy rate of 1.6%, the lowest in nearly seven years.

These important statistics are not relayed to investors by marketing companies who instead prefer to provide glossy brochures and rental guarantees for 12-month periods in order to sell product.

‘My question is – what happens after the 12 months?’ Prestia asked.

In fact, Prestia believes the biggest

Using the analogy of a high-rise, two-bed apartment in the Melbourne CBD with a rental income of US$634 (A$600)/week, Prestia explains that investors are actually limiting themselves to about 5% of the rental market. ‘It’s quite a small fish in a pretty big bowl to be basing an investment strategy on.’

The key to profitable Australian property investment is for investors to ensure that they (a) have a continued tenant, (b) have strong capital growth, and (c) that the rental price increases over time.

‘I believe that, when seeking an Australian investment property, house and land make much more sense than apartments at the moment,’ Prestia added.

The basis of this is simple: the average tenant is a double-income renter with two kids and a middle-income house-

HEALTHY RENTAL RETURNS Houses in Australian suburbs, according to Prestia, are more rofitable t an city a artments

© SCX.HU / HAMLETNC

© TOURISM AUSTRALIA

ustralian real-estate agent and market expert Rodney Prestia believes that South-East Asian investors are making simple yet fundamental errors when purchasing Australian property.

Prestia is based in Kuala Lumpur and for three years has been educating SouthEast Asian investors on the real facts on the Australian property market. He said that he was amazed that several important investment fundamentals are being ignored by investors and he is hoping his advice will provide awareness for them to make more profitable decisions moving forward.

‘I believe when buying an investment property, the most important thing is understanding what rent you will get for the property and the type of tenants and term.’

This, after all, is effectively what determines your yield. To do this, however, ‘you need to understand and ascertain the right rental demographics for areas prior to purchasing.’

problem for overseas investors is that they often do not fully understand the rental market in Australia, such as the average rental prices, and what the average tenant is looking for in a rental property.

‘I see exhibitions each and every weekend in Singapore, Malaysia, and other areas promoting high-rise properties in Melbourne, Sydney and the like, and I think to myself that it’s just not the type of product an Australian tenant is actively seeking.’

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FEATURE FEB R UA R Y — M A RC H 2 0 1 3

hold. Their maximum budget for a rental property is about US$423 (A$400) per week. Having kids, naturally they would like a backyard and space, so they are not likely to rent an apartment in the CBD for US$687 (A$650)/week. It defies logic. In addition to higher rent, the costs of living in the CBD as opposed to suburban areas is much more expensive. Most Australian tenants are week-to-week budgeters and will go where they can afford. Additionally, most will be tenants for the majority of their lives.

According to Prestia, the following factors are fundamental for rentals:

1

oo for ouse and land riced around t e A mar t at will yield you a A wee rental return

2

oo for areas of rowt w ere t ere is a rental s orta e suc as new suburbs minin areas or areas of o ulation rowt

3

on’t belie e t at you need to be in t e to ma e money as some of t e best in estments lie in ouse and land ac a es in outlyin re ional areas

4

oo for areas near sc ools As so many tenants a e sc ool a e c ildren bein near a ood sc ool means you are more li ely to turn t e tenant into a lon term renter

5

a e sure t e builder of t e ro erty as a ro en trac record

A NEW AUSTRALIAN PROPERTY MARKET One of the best investments in Australia at present is an opportunity in an agricultural area called Griffith, about five hours from Sydney and four hours from Melbourne. Presented by Prestia’s team in Kuala Lumpur, here an investor can buy a house-and-land package for US$349,206 (A$330,000) and receive US$423 (A$400)/week rent. Furthermore, Griffith has been voted the fastest-growing regional city in Australia. But because more foreign investors don’t know about the area, so they are scared to invest. Prestia said, ‘I would buy ten houses in Griffith before buying one unit in Melbourne right now. The area is explosive with wine and citrus production, and there is a waiting list for rental houses – the demand is astronomical.’

HOUSE AND LAND VERSUS APARTMENTS Prestia warns that body corporate laws are due to be overhauled this year, making apartment investing be risky business. Yet Asian investors love the high-rise buildings with the pools and gymnasiums and all the trimmings; but these added facilities come at a cost. If the tenant does not pay, the landlord is out of body corporate fees, which can adversely affect an investor’s bottom line.

The other advantage of purchasing house and land over apartments is that with prices at an all-time low, investors can buy two house-and-land packages in two separate states of Australia for the same price as one apartment in Sydney and Melbourne.

Buying this way reduces investor risk.

Prestia says, ‘If I purchased now, I would buy a house and land in Ipswich, Brisbane, for say US$370,370 (A$350,000) and get US$370 (A$350)/week rent, as well as one in Griffith for US$349,206 (A$330,000) and get US$423 (A$400)/week rent. That is a US$687,000 (A$650,000) investment returning US$793 (A$750)/week as opposed to a US$687,000 (A$650,000) apartment in Melbourne returning US$529 (A$500)/week. And you still have to struggle to find a tenant.

On top of that, the market is not going to improve in the CBDs of Australia over the next 12 months, I can assure you.’

Diversification diminishes risk and increases growth. Furthermore, if the market turns or circumstances change, an investor can sell one of the properties quickly and keep the one with better rental yields.

FINAL WORDS OF ADVICE Prestia says, ‘Before getting roped in by the plasma-screen television and other exorbitant facilities, plus the promise of guaranteed rental returns and projected growth statistics that are not worth the paper they are written on, consider instead the ultimate goal of any property investment.

Investors should never buy something because it looks nice, or because it’s in a great part of town – they should buy something that makes money. That’s probably the smartest piece of advice my father has ever told me.’

Rodney Prestia is an Australian ro erty e ert w o re iously owned and o erated one of t e lar est real estate a encies in Australia e is currently t e O of ynamic oy n estments urin is time as an Australian licensed real estate a ent and accredited auctioneer restia bro e se eral records wit re ards to sales in t e ydney ro erty mar et e as built a business t rou out Asia by doin one sim le t in tellin t e trut about t e Australian ro erty mar et t e facts t e trends t e rowt areas and locations of w ere to in est and to a oid ou can email odney at rodney dynamicjoyin estments com

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FEATURE F E BRUARY— MARCH 2013

Are you protected?

Life insurance may be the most important purchase you’ll make.

By James Norman

DO I NEED LIFE INSURANCE?

© SXC.HU / HARNAS

T

he purchase of life insurance cover is perhaps one of the most important financial decisions you’ll ever have to make.

Yet most people put this important purchase off until something happens close to home, often when it’s too late.

Why? As individuals we all have a builtin mechanism that prevents us from thinking about death and focusing instead on the brighter things in life, the here and now – not the sombre subject of our demise. This procrastination can have devastating consequences for those you leave behind – families can suffer and businesses can fail.

76

To answer this question, you need to consider whether someone in your life will suffer financially if you die and if someone other than yourself is reliant upon your income. If so, then you definitely need life insurance.

Most commonly those who would suffer financially following your death include family, children or ageing parents. Yet business partners or employees may also feel the added financial burden.

Whilst you may think, ‘Well, they’ll be okay’, the reality can often be very different. Also, if you’re young and single, you may think that you have no requirement for life cover, but the reality is, if you’re planning on marriage and on a family later in life, you have the chance to lock-in very competitive rates whilst young and healthy. But more about that later.

HOW MUCH DO I NEED? Consider your property, for example.

For most, a property purchase is the single biggest financial commitment in one’s lifetime, and the mortgage is no doubt the single biggest monthly outgoing – a financial commitment which is secured against your home (the roof over your family’s head). Have you considered what would happen if you were to die? Well, many would say it doesn’t bear thinking about…but you should. The harsh reality is it could leave your family without a home during what is already a difficult time. There is a solution, however: take out life insurance. But before doing so, there are some important questions you should ask yourself.

Rules of thumb vary hugely – anywhere from five to 20 times your annual income.

So rules of thumb aren’t too useful. How do you accurately determine the required amount? The best way is to perform a financial-needs analysis. This will require you to calculate the following: Life Insurance Need

=

Immediate

+

Ongoing

+

Future financial obligations

–

Current Resources

Until you have enough in savings and for retirement

FEATURE FEB R UA R Y — M A RC H 2 0 1 3

1

Immediate obligations: funeral expenses, outstanding tax bills, credit card debts and personal loans

2

Ongoing obligations: money for family to live on for a period of time. Paying for food, clothing, mortgage/rent, utility bills, transport and health care

3

Future obligations: money to cover things like university education or retirement savings

4

Current resources: mall of your families’ current savings/ investments, spouses’ income and the value of any existing life insurance policies

HOW LONG DO I NEED IT FOR? Some people need insurance for their entire lives, but most people do not. Most financial experts recommend that you have insurance for as long as someone is dependent on your income. This may be: 1

Until your youngest child is 21+

2

Until your mortgage is paid off

3

Until you have enough in savings and for retirement

At the point where the above three are satisfied, you are sufficiently self-insured!

Once you have determined the amount of insurance that you need and the duration you require the cover for, the next step is to consider what product to buy.

TERM INSURANCE As the name suggests, this lasts for a specified period of time (i.e. a specific ‘Term’ and will pay out a guaranteed cash sum, which is fixed for the term of the policy, should you die). If you survive to the end of the policy’s term, the premium and cover ceases. You pay a fixed, regular monthly or yearly premium for the term of the policy. If you stop paying the premiums, your cover stops too.

If your requirement is to cover your remaining mortgage, then term insurance may be useful in this instance. If your concern is to help your ageing parents, then again, a short-period (five or ten years) term policy may be sufficient in this circumstance. As well as being good to cover temporary, short-term costs, pre-

miums for term insurance are comparably lower. However, once your term expires, the costs to take out another policy will increase with age. In addition, for certain levels of cover and at certain ages you may have to take medicals to qualify for insurance again – so your health must be of a good standard to be able to proceed.

Declining health and/or a dangerous job or hobby can make term insurance unaffordable or even unattainable.

PERMANENT INSURANCE As the name suggests, this type of insurance is with you for life regardless of how old you are when you die. Premiums are designed to be level for life and can be designed to stop when you retire, yet cover will continue. Unlike term insurance, permanent insurance policies accumulate a cash surrender value that can be used in emergencies or for unexpectedly high expenses (e.g., university fees). In essence it provides life insurance with a savings component. The drawback of this type of policy is that it’s initially very expensive.

Premiums can be three to ten times higher than the equivalent cover with a term insurance policy.

If your budget is limited make sure you buy as much cover as you need – even if it’s all term insurance. Some people opt for a combination of the two while others like to keep savings and insurance separate and opt for an investment (e.g. mutual funds) and life cover (e.g. term insurance) separately.

Overall, one of my biggest observations regarding life insurance is that most people are drastically underinsured.

ADDITIONAL BENEFITS Alongside basic life policies you have the option to add on additional benefits (called Riders), which sit alongside your life cover. The two major ones are:

Critical illness benefit: a selected cash sum will be paid if during the policy’s term the life insured is diagnosed with one of the major critical illnesses as defined by the insurer. Typically this will include major cancers, heart attacks, strokes, burns, blindness and Alzheimer’s disease, amongst others.

Total and permanent disability: a selected cash sum is paid if, due to an accident or illness, the life insured is totally and permanently disabled, preventing them performing any occupation for remuneration or profit.

BUSINESS LIFE INSURANCE This is used to protect businesses, particularly small business, and can be utilised in a number of ways.

1

To protect companies in the event of premature death of an active business owner. It can be used to purchase the deceased partners’ interest and provide an income stream to the surviving family.

2

Can also be left to the company to provide a financial cushion in the event of a loss of an active partner or employee (key-man).

3

To provide cash to equalise the inheritance of a family where the company is left to only one of th e children.

4

Business life insurance can be used to provide cash to pay corporate taxes to ensure the company doesn’t have to be sold to pay a tax liability.

The above uses of life insurance can ensure families stay financially secure and businesses can continue to operate.

A well-designed life insurance package is as essential to a sound financial plan as a strong foundation is to a family home. Do it right and the future is secure.

To understand your life insurance requirements, visit the following online survey www.surveymonkey.com/s/areyouprotected or feel free to contact me for more information.

James Norman is a columnist wit years’ e erience in finance e obtained is BSc degree in Economics and Finance from Southampton University, and has been based in in a ore for nearly mont s w ere e’s been wor in as a ualified ealt ana ement onsultant for e enley rou o s are your iews wit ames or to find out more about im email jn t e enley rou com s

77

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COUNTRYGUIDE FEBRUARY - MARCH 2013

CYPRUS STATISTICS NOTE: As Northern Cyprus (Turkish Republic of Northern Cyprus) is not an internationally recognised legal entity, this article will only highlight the southern portion, the Republic of Cyprus.

OFFICIAL NAME

Republic of Cyprus

CAPITAL CITY

Nicosia

POPULATION

1,138,071 (July 2012 est.)

TIME ZONE

UTC +2

CURRENCY

Euro

GOVERNMENT

Republic

REGION

Europe

OFFICIAL LANGUAGES

Greek (official), Turkish (official), English

LAND AREA

9,251 sq km

WATER AREA

10 sq km

PROPERTY BASICS Apartment in Nicosia (120-square-metre apartment) PRICE PER SQUARE METRE

€1,663 (US$2.246)

RENT (per month per square metre)

€5.35 (US$7.22)

RENTAL YIELD (p.a.)

3.86%

Apartment in Limassol (120-square-metre apartment) PRICE PER SQUARE METRE

€2,238 (US$3,021.30)

RENT (per month per square metre)

€6.50 (US$8.775)

RENTAL YIELD (p.a.)

3.49

Apartment in Paphos (120-square-metre apartment) PRICE PER SQUARE METRE

€2,238 (US$3,021.30)

RENT (per month per square metre)

€3.87 (US$5.22)

RENTAL YIELD (p.a.)

3.54%

Apartment in Larnaca (120-square-metre apartment) PRICE PER SQUARE METRE

€1,573 (US$2,123.55)

RENT (per month per square metre)

€5.12 (US$6.912)

RENTAL YIELD (p.a.)

3.91% SOURCE GLOBAL PROPERTY GUIDE

ELECTRICITY

240 V, 50 Hz

CLIMATE

Temperate; Mediterranean with hot, dry summers and cool winters

RELIGIONS as a % of population GREEK ORTHODOX MUSLIM OTHER (MARONITE AND ARMENIAN APOSTOLIC)

78% 18% 4%

THE HOW TO’S OF CYPRUS HOW TO GET IN – VISA REQUIREMENTS For travel to the Republic of Cyprus for reasons other than immigration and does not exceed 3 months, you might need a travel visa. This visa gives the traveller the right for a continuous visit or several visits to Cyprus. In general the short-stay Cyprus visa is issued for one or several visits. For people who need to come to Cyprus often (business trips, etc.), it is possible to get a multiple-entry visa (valid for 1 year). The total duration of the visits, however, should not exceed 3 months in any alf of a year from t e date of t e first entry For a step-by-step guide, go to, (www.cyprusvisa. eu/cyprus-short-stay-visa-requirements.html).

People planning to stay in Cyprus for more than 3 months should apply for a long-stay visa. Types of long-stay visas are residence visa (www.cyprusvisa.eu/cyprus-residence-visa-requirements.html), work visa (www.cyprusvisa.eu/cyprus-work-permit. html), and student visa (www.cyprusvisa.eu/cyprusstudent-visa-requirements.html).

If one needs to pass through the international transit area of Cypriot airports without actually entering the national territory of Cyprus during a stopover or transfer between two stages of an in-

ternational i t you mi t need an Air ort ran sit Visa. The requirement to have this type of visa is an exception to the general rule to transit without a visa through Cyprus (www.cyprusvisa.eu/cyprusairport-transit-visa-countries.html).

HOW TO BUY PROPERTY With immigrations rules relaxed in 2007, non-EU nationals can a ail t emsel es of a e ible erma nent residency permits as long as they will invest in properties worth €300,000 (US$398,755) and €50,000 (US$66,422) in a Cypriot bank account for 3 years.

To help wade through confusing paperwork and permits, a foreign buyer is well advised to seek the service of a Cypriot lawyer or solicitor. Also, when applying, the foreign buyer will have to submit the details of t e identified ro erty you’re interested in buying, as well as all the information about its current owner and contract information. Personal information, such as a passport, current residence and financial means of income must also be dis closed.

In 2006 extensive plans were announced to improve and expand bus services and restructure public transport throughout Cyprus, with the financial bac in of t e uro ean nion e el opment Bank. The country has a total of 10,553 kilometres of roads (6,249 of which are paved).

There are also several modern motorways in Cyprus. A series of motorways runs along the coast from Paphos east to Ayia Napa, with two motorways running inland to Nicosia, one from Limassol and one from Larnaca.

WATER In addition, there are two main harbours in the country – Limassol and Larnaca – which service cargo, passenger and cruise ships.

MAJOR HOLIDAYS JAN 1

New Year’s Day

JAN 6

Epiphany

MAR 18

Clean Monday

APR 1

Greek Cypriot National Day

HOW TO APPLY FOR A MORTGAGE Financial institutions in Cyprus are authorised to offer mortgage applications both to foreign nationals and local residents. A deposit of 30% is usually re uired w ile t e rest can be financed or a loan in foreign currency, the maximum time allotted for the loan is 15 years. It is important to do some research on this category of purchasing real estate in Cyprus.

MAR 29

Good Friday

MAR 30

Holy Saturday

MAR 31

Easter Sunday

APR 1

Easter Monday

APR 2

Easter Tuesday

MAY 1

Labour Day

AUG 15

Dormition of the Theotokos

OCT 1

Independence Day

HOW TO OPEN A BANK ACCOUNT Both residents and nonresidents are allowed to open up bank accounts in Cyprus. One may do so is by visiting an international branch of a Cypriot bank. When one has decided what bank to use he or she needs to meet two requirements: be over 18 years and proof of identity (passport and/or rental contract or sales contract showing local address in Cyprus). Any type of account can be opened.

OCT 28

Okhi Day (Greek National Day)

DEC 24

Christmas Eve

DEC 25

Christmas Day

DEC 26

Boxing Day

WHERE TO BUY PROPERTIES Interest from foreign vacation-home buyers has traditionally been centred in Paphos on the western end of the south coast, Limassol on the central south coast, Larnaca on the eastern outpost of the south coast, the capital Nicosia, and Famagutsa. In more recent years, Polis in the far west and Agia a a in t e island’s far east a e drawn widely dif fering crowds to their shores.

TRANSPORTATION AIRPORTS y rus’ major international ateway is arnaca International Airport (www.cyprusairports.com. cy/) located 4 kilometres south-west of the city of Larnaca. It serves more than 5 million passengers annually t is t e ub of t e country’s a car rier, Cyprus Airways, which has regular scheduled i ts from arnaca to Amman Amsterdam At ens, Beirut, Frankfurt, Heraklion (Crete), London, Milan, Moscow, Munich, Paris, Rome, and Zurich. n addition many ot er uro ean airlines y from their respective hubs to Larnaca, including Aegean Airlines At ens Aero ot oscow ritis Air ways (London), Emirates (Dubai), and Lufthansa (Frankfurt), among others.

Serving more than 2.7 million passengers annually, Paphos International Airport (www.cyprusairports. com cy s ow a e a e is t e country’s second busiest, and is usually used by tourists on holiday in western Cyprus.

LAND e e ublic of y rus as t e fift i est er capita private car ownership in the world (there are approximately 344,000 privately owned vehicles, and a total of 517,000 registered motor vehicles).

Dates for 2013

HEALTH HEALTH CARE According to Allianz, health care in Cyprus is of a high standard, which is recognised by the World Health Organization to be on a par with developed countries. Government hospitals are located in all t e major cities w ile smaller government-run hospitals and clinics are present in other areas of the country. There are also a number of private hospitals throughout the country.

Emergency treatment is provided free of charge but subsequent in- and outpatient treatments a e to be aid by un ualified’ ersons amples of people who qualify (and therefore do not have to pay) are single individuals who have incomes of less than €15,000 per annum or families with incomes less than €30,000 per annum. European Union nationals on temporary residency, under certain conditions, can also claim free medical benefits in o ernment hospitals.

HEALTH RISKS The following are disease risks that might affect travellers to Cyprus: cutaneous leishmaniasis is reported throughout the Middle Eastern area, especially in countries bordering the Mediterranean; visceral leishmaniasis; West Nile virus is another vector-borne infection found in the region; schistosomiasis has been found in focal areas in Iraq, Saudi Arabia, Syria, and Yemen; measles continues to reported from the region; an outbreak of polio occurred in Yemen in 2005 following importation of poliovirus from Nigeria i ly at o enic a ian in uen a has been found in poultry populations in the iddle astern re ion il rims to t e ajj au di Arabia) have acquired meningococcal infections caused by serotypes A and W-135, as well as in uen a infections

79

COUNTRYGUIDE FEBRUARY - MARCH 2013

tract After t e buyer obtains is or er financin and t e seller satisfies is or er own obli ations under t e reliminary a reement a final contract is signed between the parties.

GREECE STATISTICS OFFICIAL NAME

Hellenic Republic

CAPITAL CITY

Athens

POPULATION

10,767,827 (July 2012 est.)

TIME ZONE

UTC+2

CURRENCY

Euro

GOVERNMENT

Parliamentary republic

REGION

Europe

OFFICIAL LANGUAGES

Greek

LAND AREA

130,647 sq km

WATER AREA

1,310 sq km

PROPERTY BASICS Based on January 2013 exchange rate APARTMENT IN ATHENS (120-square-metre apartment in the city centre)

it t e e ecution of t e final contract t e own ership of the property will be conveyed legally to t e buyer e final contract is si ned before t e public notary. In addition, according to Greek law, the real estate agent (or agents) involved in effecting the sale must be present for the signing of the final contract The fees for buying real estate in Greece total are between 15% and 20%. Purchase tax is charged de endin on t e ro erty’s alue at between 9% and 11%, in addition 2% is charged on top for properties located in cities. Land registry fees should be about 0.3% of the assessed value plus a small sum for stam duties and certificates e real estate a ent’s fees are usually aid by t e en dor.

PRICE PER SQUARE METRE:

€3,516 (US$4,726)

HOW TO APPLY FOR A MORTGAGE

RENT (per month per square metre)

€9.51 (US$12.83)

RENTAL YIELD (P.A.)

3.25%

Most Greek banks offer mortgage loans to EU citizens with the condition that the purchased property is in Greece. Requirements include:

APARTMENT IN ATHENS (120-square-metre apartment outside the city centre) PRICE PER SQUARE METRE

€2,976 (US$4,000)

RENT (per month per square metre)

€9.46 (US$12.76)

RENTAL YIELD (P.A.)

3.81%

HOUSE IN ATHENS SUBURBS (250-square-metre house) PRICE PER SQUARE METRE

€2,976 (US$4,000)

RENT (per month per square metre)

€8.69 (US$11.72)

RENTAL YIELD (P.A.)

2.3% SOURCE GLOBAL PROPERTY GUIDE

ELECTRICITY

220-240 Volts

CLIMATE

Temperate: mild, wet winters; hot, dry summers

RELIGIONS

Based on January 2013 exchange rate

GREEK ORTHODOX (Official) MUSLIM OTHER

98%, 1.3% 0.7%

THE HOW TO’S OF GREECE HOW TO GET IN – VISA REQUIREMENTS Citizens of other European Union countries, Canada, Australia, Japan and the USA can visit Greece and stay there for 90 days visa-free. All other countries must secure a Schengen Visa, which can be used in 25 other European countries.

A valid passport or travel document is required to secure a Schengen Visa (make sure that your passport is valid for at least 3 months after the date you exit the Schengen states). To know more about the requirements for applying for a Schengen Visa and for a complete list of countries, visit www.greekembassy.org/embassy/content/en/.

HOW TO BUY PROPERTY Before anyone (a citizen of Greece, the EU or another foreign national) can purchase real estate in reece e or s e must first obtain a ta role num ber, which is known in Greece as AFM. This can be obtained at any ta office in t e country iti ens of Greece or another EU nation need only show their government-issued ID card. Citizens of other countries, on the other hand, must show a passport to obtain the AFM. A ublic notary w o is an inde endent official oversees the real estate purchase process. Once an offer is made on the property, a preliminary contract is drafted. A deposit of up to about 10% is placed on the property at the time this agreement is executed. (The deposit is not refundable unless the seller somehow disrupts or ends the sales process or unless clear title to the real estate cannot be had in the time allotted under the preliminary con-

80

For the economic preliminary approval: 1 Photocopy of identity document and/or copies of passport: 2 Copy of last liquidation note 3 f a salaried em loyee recent certification of wages 4 Utility bill or other proof of residence 5 If self-employed, copy E3 of the last 2 years For the realisation of juridical – technical control of the property: 1 Title of ownership 2 Drawing of ground plan –copy of document issued by the Hellenic Urban Planning Authority 3 Building authorisation – it is not required for apartments, except for the penthouses 4 Topographic diagram – copy of document issued by the Hellenic Urban Planning Authority; not required for apartments HOW TO OPEN A BANK ACCOUNT If one meets the terms and conditions, opening a bank account in Greece, even for non-residents, is relatively simple. You will be asked to provide forms of identification w ic could include a co y of your passport, national identity card, driving licence with photograph, a recent utility bill, proof of address, recent bank statements, and a reference from your current home bank. This reference must prove that you are a responsible account holder and have a good credit rating.

One can also open a bank account before arriving in the country using an overseas branch of any Greek bank (or a foreign bank operating in Greece), but your si nature must be erified before t e ac count can be opened. This can typically be done in t e resence of a ban official ou can o en most types of account before you arrive, including current accounts and foreign currency accounts.

WHERE TO BUY PROPERTIES As e ected rete t e country’s lar est island is the one of the top destinations for property hunters. The best-known areas may be too touristy for some (although there are plenty of foreign nationals, British predominantly, who have gone there to set up business that rely on the tourist trade), but there are villages further inland that are very cheap, have access to picturesque beaches and are largely devoid of holiday-makers. Other favourite islands include Corfu, Kos, Rhodes and Mykonos.

Santorini, one of the Cyclades Islands, is another Greek property hotspot, famed for its stunning

views and vibrant nightlife. This group of 24 islands also include Mykonos, Kimolos, Paros and Kithnos, as well as the small uninhabited island of Delos, the world’s first multicultural society and centuries old gathering ground for the rich and famous. Corfu has always been a popular choice.

TRANSPORTATION AIR As of 2005, Greece has a total of 82 airports, 15 of w ic a e international i ts and andle of tourists travelling to and within Greece. The country’s busiest is At ens’ left erios eni elos International Airport, which serves more than 14 million passengers annually and is the hub of the country’s major airlines Ae ean Airlines and Olym pic Air. It is also the 13th busiest airport in Europe. rete’s era lion nternational Air ort i os a ant a is’ is t e island’s rimary ateway and also reece’s second busiest air ort n it andled almost 5 million passengers. Other regional airorts t at a e international i ts include es saloniki, Corfu, Kos, Kefalonia, and Rhodes, among others.

LAND ince t e s reece’s road and rail networ as been si nificantly modernised As of t e country has a total of 1,600 kilometres of motorways, 107,406 kilometres of paved roads, 9,594 unpaved, and over 2,500 underground tunnels.

Railway connections play a somewhat lesser role in Greece than in many other European countries, but they too have also been expanded, with new suburban/commuter rail connections in Athens towards its airport, Kiato and Chalkida; around Thessaloniki, towards the cities of Larissa and Edessa; and around Patras. A modern intercity rail connection between Athens and Thessaloniki has also been established, while an upgrade to double lines in many parts of the 2,500 kilometres.

MAJOR HOLIDAYS JAN 1

New Year’s Day

JAN 6

Epiphany or Theophany

MAR 18

Clean Monday or Shrove Monday (Kathará Deutéra)

MAR 25

Annunciation

MAR 25

Independence Day

MAR 29

Good Friday

MAR 31

Easter Sunday

APR 1

Easter Monday

MAY 1

Labour Day

JUN 23

Pentecost or Whit Sunday

JUN 24

Pentecost or Whit Monday

AUG 15

Assumption fo the Holy Virgin

OCT 28

Ochi day

DEC 25

Christmas Day

DEC 26

Glorifying Mother of God Dates for 2013

HEALTH HEALTH CARE Accordin to Allian reece’s ealt care system was ranked by the World Health Organisation as one of the best in the world, although the government’s allocation to ealt care is uite low and the availability of public hospitals is limited to big cities.

HEALTH RISKS The following are disease risks that might affect travellers to Greece: tickborne encephalitis, especially in the warmer months; leishmaniasis (cutaneous and visceral); variant Creutzfeldt-Jacob disease; measles; hepatitis A, although risk is low; and highly at o enic a ian in uen a irus

COUNTRYGUIDE FEBRUARY - MARCH 2013

jointly wit your s ouse or t rou a cor oration or lar e real estate de elo ments it’s best to own property through a Hong Kong corporation.

HONG KONG STATISTICS OFFICIAL NAME

Hong Kong Special Administrative Region

CAPITAL CITY POPULATION

7,153,519 (July 2012 est.)

TIME ZONE

UTC +8

CURRENCY

Hong Kong dollar

GOVERNMENT

Limited democracy

REGION

East Asia

OFFICIAL LANGUAGE

Cantonese, English and Mandarin

LAND AREA

1,054 sq km

WATER AREA

50 sq km

PROPERTY BASICS Apartment in Hong Kong Island (120 square metres) AVERAGE PRICE/SQUARE METRE

US$19,981

RENT PER MONTH (Per sqm)

US$51.38

RENTAL YIELD (P.A.)

3.09%

Apartment in Kowloon Tong (120 square metres) AVERAGE PRICE/SQUARE METRE

US$16,135

RENT PER MONTH (Per sqm)

US$42.20

RENTAL YIELD (P.A.)

3.14%

Apartment in New Territories (120 square metres) AVERAGE PRICE/SQUARE METRE

US$10,994

RENT PER MONTH (Per sqm)

US$33.79

RENTAL YIELD (P.A.)

3.69% SOURCE GLOBAL PROPERTY GUIDE

ELECTRICITY

220 V, 50 Hz

CLIMATE

Subtropical monsoon; cool and humid in winter, hot and rainy from spring through summer, warm and sunny in fall

HOW TO APPLY FOR A MORTGAGE It is also fairly easy to get a mortgage in Hong on if you a e an income ocal financin is widely available for foreign residents. HSBC lists these useful steps for foreigners looking into applying for a mortgage loan in Hong Kong: 1 Calculate how big a mortgage you can afford before looking for a property.

2 A roac a financial institution for a preliminary valuation of the desired property to get an idea of how much can be borrowed.

3 Agree on a purchase price and transaction completion date, then pay an initial deposit and sign a provisional sale and purchase agreement.

4 Apply for a mortgage. Appoint a solicitor for a land search and arrangement of legal documents.

5 Sign the formal sale and purchase agreement and make the down payment (usually around 10% of the purchase price) to the vendor.

6 Sign the other legal documents and arrange to pay the outstanding balance (partially or fully paid by your mortgage) to the vendor.

For under construction property, additional legal documents will have to be drawn up on receipt of the occupation permit.

HOW TO OPEN A BANK ACCOUNT Opening a bank account in Hong Kong is very straightforward, much more so than in the USA, UK or Europe. To open a bank account in Hong Kong all you require is ID and proof of address. It is not necessary to be resident in Hong Kong or have a wor isa in on on and it’s erfectly ossible for a tourist to open a bank account in the city.

WHERE TO BUY PROPERTIES

RELIGIONS as a % of population ECLECTIC MIXTURE OF LOCAL RELIGIONS

90%

CHRISTIAN

10%

THE HOW TO’S OF HONG KONG HOW TO GET IN – VISA REQUIREMENTS Most nationals only need to obtain a tourist visa if they want to stay longer than the number of days allowed for their nationality (go to www.immd. gov.hk/en/services/hk-visas/visit-transit/visit-visaentry-permit.html for a complete list and number of days allowed).

Nationals of the following countries, however, are required to obtain visas before entering Hong Kong: countries that were once part of the Soviet Union, Afghanistan, Albania, Angola*, Bangladesh*, Burundi*, Cambodia, Cameroon*, Congo (Zaire)*, Republic of Congo*, Ivory Coast*, Cuba, Eritrea*, Ethiopia*, Grenada, Ghana*, Iran, Iraq*, Laos, Lebanon, Liberia*, Libya, Moldova, Montenegro, Myanmar, Nepal*, Nicaragua, Nigeria, Pakistan*, Palestine, Panama, Senegal, Serbia, Sierra Leone*, Solomon Islands, Somalia*, Sri Lanka, Sudan, Syria, Togo*, Vietnam (asterisk relates to transit isas and include just c an in lanes in on Kong, and cannot normally be upgraded to a tourist visa on arrival). Forms and a guide to the regulations (which includes a checklist of what you must submit) can be downloaded from www.immd.gov. hk/ehtml/fvisit.htm.

HOW TO BUY PROPERTY Generally foreigners – except those from Afghanistan, Albania, Cuba, North Korea and mainland China (unless they are permanent residents in another country) – can buy properties in Hong Kong and rent out without restriction. And they have two options: either as an individual (including

As on on ’s de facto financial and olitical centre, the Western and Central District is where t e city’s s yline is most im ressi e t also as some of t e city’s riciest real estate from u scale retail areas to posh condos built along the steep slopes of Mid-Levels.

But over the last few years foreign buyers have avoided the traditional luxury districts, and opted for u comin af uent nei bour oods suc as West Kowloon, where a number of upscale residential rojects were un eiled is is also w ere t e city’s tallest s yscra er is found t e me tre International Commerce Centre, which sits on top of Kowloon Station.

TRANSPORTATION AIR Hong Kong International Airport (www.hongon air ort com is t e territory’s main air ort Opened in 1998 (replacing Kai Tak in Kowloon), it is an important regional trans-shipment centre, passenger hub and gateway for destinations in mainland China (over 40 destinations) and the rest of Asia t also o erates one t e world’s lar est ter minal buildings. e air ort is t e rimary ub of at ay acific Dragonair, Hong Kong Airlines, Hong Kong Express Airways, and Air Hong Kong. It is also the focus city of many other airlines, including China Airlines, China Eastern, Virgin Atlantic, United, Air India.

One of t e world’s busiest it andled more t an 53 million passengers in 2011, has 90 airlines operate i ts from t e air ort to o er cities across the globe, and recently surpassed Memphis International Air ort as t e world’s busiest air ort by car o traffic

LAND on on as one of t e world’s most so isti cated and highly developed public transport system. Over 90% of trips made every day are through public transport, either through buses, trains, trams, ferries, or taxis. e city’s railway com any o erates a com re en sive rail network comprising 211.6 kilometres of rail and 155 stations.

Several privately owned companies provide bus service across the territory, together operating more than 700 routes. Double-decker buses were introduced to Hong Kong in 1949, and are now almost exclusively used; single-decker buses remain in use for routes with lower demand or roads with lower load capacity.

WATER The iconic Star Ferry, founded in 1888, still operates four lines across Victoria Harbour and provides scenic iews of on on ’s s yline for its daily passengers. Other ferry services are provided by operators serving outlying islands, new towns, Macau, and cities in mainland China.

MAJOR HOLIDAYS JAN 1

New Year’s Day

FEB 11-13

Chinese New Year

APR 1

Easter Monday

APR 4

Ching Ming Festival

MAY 1

Labour Day

MAY 17

Buddha's Birthday

JUN 12

Tuen Ng Festival

JUL 1

Hong Kong SAR Establishment Day

SEPT 20

Day after Chinese Mid-Autumn Festival

OCT 1

National Day

OCT 14

Day after Chung Yeung Festival

DEC 25

Christmas Day

DEC 26

Boxing Day Dates for 2013

HEALTH HEALTH CARE on on ’s ealt care system is uite ood and t e standards are com arable to some major u ropean cities. Both private and public systems are available. For those normal day to day complaints, expatriates can seek help from their private medical practitioners and the cost of these may be fully covered by employer provided health plans. For more serious issues such as child birth and surgery, some expatriates make use of public hospitals.

Since the Hong Kong Hospital Authority took over the management of public hospitals over a decade ago, tremendous strides have been made to further improve the quality of health care. The levels of service, both in availability of newer technologies and access to quality care can now be considered on a par with highly developed countries.

HEALTH RISKS The following are disease risks might affect travellers to on on den ue c i un unya filariasis Japanese encephalitis, leishmaniasis, and plague – diseases carried by insects. Respiratory infections ori ins often undefined are also common amon travelers to East Asia. n addition i ly at o enic a ian in uen a (H5N1) continues to cause outbreaks in domestic and wild bird populations and has caused human cases in several East Asian countries.

Travellers visiting Hong Kong may need to have their routine vaccinations. Routine vaccines, as t ey are often called suc as for in uen a c ic enpox (or varicella), polio, measles/mumps/rubella (MMR), and diphtheria/pertussis/tetanus (DPT).

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UNITED STATES OF AMERICA

recommended that you have an attorney at least review all contracts you sign.

STATISTICS OFFICIAL NAME

United States of America

CAPITAL CITY

Washington D.C.

POPULATION

313,847,465 (July 2012 est.)

TIME ZONES

AST, UTC–4; EST, UTC –5; CST, UTC –6; MST, UTC–7; PST, UTC–8; AKST, UTC –9; HST, UTC –10

CURRENCY

US dollars

GOVERNMENT

Constitution-based federal republic

REGION

North America

OFFICIAL LANGUAGE

English

LAND AREA

9,161,966 sq km

WATER AREA

664,769 sq km

PROPERTY BASICS AVERAGE COST OF PROPERTY:

US$13,377 per square metre in premier city centres

GROSS RENTAL YIELDS:

4.7% US$6,286

AVERAGE RENT:

SOURCE GLOBAL PROPERTY GUIDE

AVERAGE PROPERTY PRICE

US$305,645 SOURCE RIGHTMOVE.CO.UK

ELECTRICITY

120/208 V, 277/480 V, 120/240 V, 60Hz (Type B)

CLIMATE

varied but mostly temperate with tropical weather in Florida and Hawaii, artic in Alaska, semiarid in the plains, and arid in the southwest.

RELIGIONS as a % of population (2006 census) PROTESTANT ROMAN CATHOLIC MORMON JEWISH BUDDHIST MUSLIM OTHER / UNSPECIFIED

51.3% 10.7% 1.7% 1.7% 0.7% 0.6% 18.6%

THE HOW TO’S OF USA HOW TO GET IN – VISA REQUIREMENTS The need for a visa depends on your citizenship and reason for your visit to the USA. There are visitor, study, work and immigration visa available.

In some cases, no visa is required for short-term visits for holidays or pleasure. In other cases, a visa application is a simple form to send to the US Consular and a reply will be received within a week or two. However, there are some cases in which a visa application may take several months to approve and may even require an interview.

It is best to consult the nearest US Embassy or visit tra el state o for furt er information s ecific to your needs.

HOW TO BUY PROPERTY America represents one of the safest and most transparent property markets in the world. All properties for sale are listed, by law, in a common database (MLS) that anyone, including all real estate agents and the public at large, can access at any time. e first ste is to eit er et re a ro al for a mortgage or loan, or to assemble any paperwork that shows you have the purchasing power to invest in property. No real estate agent or property seller will give an investor the time of day without proof that they have to means to go through with a purchase.

After selecting a property, contact a real estate attorney. Although this is not required, and real estate a ents in America are certified and able to provide legal contracts, it is nevertheless always

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Make an offer that is contingent upon the results of an inspection and/or formal survey, and then hire a licensed professional to carry out the inspection or survey. If there is anything wrong with the property, you can either withdraw the offer or renegotiate the terms.

At this point, a title search is performed to ensure that the property is truly free and clear to be sold.

Contact your mortgage lender if applicable, as they will require copies or originals of the survey/ inspection reports and title search.

Your real estate agent will arrange a meeting called the closing which will include the sellers, a bank representative, a public notary, you the buyer and your attorney if desired. All contracts are signed, deposit money is paid to the seller, and the remainder of the balance owed is also paid.

HOW TO APPLY FOR A MORTGAGE Mortgage applications, although slightly stricter these days due to the recession, is straightforward, and most large banks will consider a mortgage application from foreigners. Proof of identity, such as a ass ort lus financial records suc as ta state ments, will be required.

HOW TO OPEN A BANK ACCOUNT It is possible for foreigners to hold bank accounts in the USA. Proof of identity, such as a passport, will be required, and in most cases, a deposit of anywhere from US$100 to $1,000 (or more, depending on the type of account) is also required.

WHERE TO BUY PROPERTIES The most popular destinations for foreigners buying property in America are New York (Manhattan and The Hamptons on Long Island), Miami and California, especially Los Angeles and San Francisco. However, Washington D.C. is another popular location, as is Arizona (for the desert climate) and Colorado (for the skiing). Additionally, the cities of Chicago and Atlanta have stable property markets with strong rental yields.

The location of course depends entirely on what you want from your investment and whether you intend on renting it out or living in it yourself.

There are many fantastic deals to be found in the eartland’ of America from O io to yomin for every lifestyle imaginable.

TRANSPORTATION AIR Deregulated since 1978, the US civil airline industry is entirely ri ately owned t ou most major air orts are ublicly owned e world’s four lar est airlines in terms of passengers carried are USbased: Delta Airlines, United Airlines, Southwest Airlines and American Airlines. n addition of t e world’s busiest assen er airports, 16 are in the USA, including the busiest, artsfield ac son Atlanta nternational Air ort ac major city and se eral mid to lar e cities for each state in America will have either an international or national airport.

LAND e A is t e world’s second lar est automobile market and has the highest rate of per-capita vehicle ownership in the world (765 vehicles per 1,000 Americans). It has 13 million roads, including the world’s lon est i way systems While its railway system is extensive, mass transit accounts for only 9% of total US work trips. However, ridership on Amtrak, the national intercity passenger rail system, grew by almost 37% between 2000 and 2010.

MAJOR HOLIDAYS

The following is a list of national holidays. Each state may also observe additional holidays JAN 1

New Year’s Day

JAN 21

Martin Luther King Day

FEB 18

President's Day

MAY 27

Memorial Day

JUL 4

Independence Day

SEPT 2

Labor Day

OCT 14

Columbus Day

NOV 11

Veteran's Day

NOV 28

Thanksgiving Day

DEC 25

Christmas Day Dates for 2013

GUIDE FOR EXPATS HOW TO PAY BILLS Bill payment can be made using several methods in the USA. For bills received by post, a pre-addressed return envelope is provided for payments by check.

However, most utility companies and other types of service providers have an online store where bills can be paid, and your American bank, if you have an account, will also provide a bill-payment section that can either transfer the funds or send a check on your behalf.

HOW TO APPLY FOR A PHONE LINE The exact contact for installing a phone line will depend on in which state your property is located. ere are se eral major ro iders suc as A MCI and Sprint, as well as smaller, independent providers that represent smaller geographical regions. Service fees for the installation typically cover only one connector box, however, and you may pay extra for additional hook-ups to multiple phones.

HOW TO APPLY FOR INTERNET Internet is widely available and there are many service providers for each type of connection (from dial up to ADSL), and each region or state will have its own selection of providers. Packages for phone, television and internet are commonly available and typically offer the best overall prices.

HOW TO APPLY FOR A MOBILE PHONE Mobile phones (called cell phones in America) can be a slightly tricky negotiation if you want a permanent account with a monthly bill. A credit check is required before most providers will offer you a contract and t e one you buy is loc ed’ and can only be used with that provider. Additionally, long-term contracts of 2 years or more are the norm, with penalties for early cancellation of the account. However, pay-as-you-go plans and disposable phones (burn phones) are available at most retail outlets.

TIPPING CUSTOMS Tipping is part of the American way of life and nearly everyone in the service sector expects a tip of between 10% and 20% of the cost of the service, or between US$1 and US$20 for gratuities including restaurant reservations, bellhops or hotel porters, etc.

HEALTH HEALTH CARE Health care in the USA is comprehensive and widely considered to be the best in the world. Contrary to popular belief, there is public medical care available to those who cannot afford or qualify for private health insurance.

HEALTH RISKS There are no known health risks but at-risk individuals, such as children, the elderly or immunecompromised people should consult their own physicians several weeks before travel to the USA. In some cases, vaccinations may be recommended.

COUNTRYGUIDE FEBRUARY - MARCH 2013

auction, it is possible that the buyer might end up bidding against other potential buyers; hence, it is important to have a budget and stick to it.

NEW ZEALAND STATISTICS OFFICIAL NAME

New Zealand

CAPITAL CITY

Wellington

POPULATION

4,327,944 (July 2012 est.)

TIME ZONE

UTC +12

CURRENCY

New Zealand dollar

GOVERNMENT

Parliamentary democracy and a Commonwealth realm

REGION

Oceania

OFFICIAL LANGUAGES

English (Official) 91.2%, Maori (Official) 3.9%

LAND AREA

267,710 sq km

WATER AREA

13,880 sq km

PROPERTY BASICS Apartment in Auckland (120 square metres) PRICE PER SQUARE METRE

US$3,559

RENT PER MONTH (Per sqm)

US$23.80

RENTAL YIELD (P.A.)

8.02%

Apartment in Wellington (120 square metres) PRICE PER SQUARE METRE

US$4,590

RENT PER MONTH (Per sqm)

US$18.46

RENTAL YIELD (P.A.)

4.83%

Apartment in Christchurch (120 square metres) PRICE PER SQUARE METRE

US$3,253

RENT PER MONTH (Per sqm)

US$13.95

RENTAL YIELD (P.A.)

5.15% SOURCE GLOBAL PROPERTY GUIDE

ELECTRICITY

230 V, 50 Hz

CLIMATE

Temperate with sharp regional contrasts

RELIGIONS as a % of population (2006 census) PROTESTANT BAPTIST ANGLICAN PENTECOSTAL CHURCH OF GOD METHODIST ROMAN CATHOLIC OTHER CHRISTIAN NONE OR UNSPECIFIED OTHER

38.6% 35.4% 15.1% 8.1% 4.8% 4.2% 13.5% 15.2% 2.9% 0.8%

THE HOW TO’S OF NEW ZEALAND HOW TO GET IN – VISA REQUIREMENTS People from some countries (go to glossary.immigration.govt.nz/visafreecountries.htm for a comlete list don’t need a isitor isa to enter ew Zealand for a visit of 3 months or shorter. However, they are still required to provide travel tickets or evidence of onward travel arrangements and evidence of funds for maintenance.

Citizens of non-visa-waiver countries are required to apply for a visitor visa before travelling to New Zealand. For a complete list of steps, go to www. immigration.govt.nz/migrant/stream/visit/visitors/ process/.

HOW TO BUY PROPERTY Accordin to ri tmo e co u o en omes’ are quite popular in New Zealand. This means sellers allow potential buyers to view theirs home at a articular time on s ecific days and no a oint ments are necessary. This way, buyers can view as many properties as possible.

Another popular way to buy a house in New Zealand is through auctions. However, if planning to do so, make sure that everything is organised before the day of the auction, such as having the property title checked by a solicitor and a building inspection carried out. Also, during the house

Potential buyers should also make sure to check the Land Information Memorandum (LIM) of the property they would like to purchase. The LIM contains information from the local council about a ro erty’s onin boundaries buildin consents etc. – in short, everything a buyer needs to know about the property.

Once the preferred property has been found, it is then time to make an offer to the seller. During this negotiation the seller may agree to remedy any faults the building inspection has uncovered.

When the offer is accepted, the buyer is then expected to pay a 10% deposit on the agreed purchase price. Both parties will also agree on the settlement terms, such as when the contracts will be exchanged and when the balance will be paid.

HOW TO APPLY FOR A MORTGAGE There are many banks and lenders in New Zealand, all of w om are ery een to write loans is isn’t to say they will lend recklessly but if you have met t e o ernment’s re uirements to wor or li e in New Zealand as a skilled migrant, you will almost certainly meet ban s and ot er lenders’ mort a e requirements.

The amount one can borrow varies from lender to lender. A general rule of thumb is that, provided you a e no ot er si nificant debts lenders will finance mort a es of around four and a alf times your gross household income. Some lenders will finance mort a es of fi e times ross joint income for couples provided both of you are in employment.

HOW TO OPEN A BANK ACCOUNT To open a bank account in New Zealand, simply choose a branch of any of the registered banks t at’s con enient to your ome or lace of wor or where you hope to live or work). Different banks require different documentation, so you should c ec e actly w at’s re uired before and ty ically you will need two forms of identification your number and possibly statements from your current or previous bank.

WHERE TO BUY PROPERTIES Foreign property buyers are mostly drawn to the Auckland Region because of its cosmopolitan lifestyle owe er ouses in ew ealand’s most populous city, especially in its Eastern Suburbs, are quite unaffordable. Housing median price rose 8% year-on-year to December 2012 in the region, according to data from REINZ. e ai ato aw e’s ay and arlborou re gions in the North Island are also popular destinations of property hunters. In the South Island, the Otago Region, especially the picturesque Queenstown-Lakes District, is a market favoured by foreign lifestyle-property buyers. Tourism makes up a u e c un of t e re ion’s income and between and it is estimated t e area’s o ulation grew 60% due to this industry.

TRANSPORTATION AIR The country has a comprehensive network of international and domestic air orts wit Auc land’s bein t e country’s busiest and major international gateway, serving more than 14 million passengers ever year (www.aucklandairport.co.nz/). It is the central ub for t e country’s a carrier Air ew Zealand, a regional hub of Virgin Australia and a focus city of JetStar Airways. ristc urc nternational Air ort is t e country’s second busiest and t e out sland’s rimary gateway, serving more than 5 million passengers annually n addition to domestic i ts se eral

forei n airlines y ere includin antas ydney Singapore Airlines (Singapore), Emirates (Dubai, Bangkok, and Sydney) and Virgin Australia (Brisbane, Sydney and Melbourne).

LAND Accordin to ew ealand’s inistry for t e n vironment, overall use of public transport in New Zealand is low (around 2.5% of trips for the whole country). In addition, New Zealand was rated only 22nd in a survey for public transport use among 28 countries worldwide, with only 56% always, or sometimes, using public transport to reach work, way i er t an t e A’s usa e uses are the most common form of public transport, followed by intracity trains (in Wellington and Auckland). Ferries also play a role, especially in Auckland and ot er major cities New Zealand transport network includes 93,805 kilometres of roads and 4,128 kilometres of railway lines ost major cities and towns are connected by bus services, although private car is the predominant mode of transport.

MAJOR HOLIDAYS JAN 1

New Year’s Day

JAN 2

Day After New Year's Day

FEB 6

Waitangi Day

MAR 29

Good Friday

APR 1

Easter Monday

APRIL 25

ANZAC Day

FIRST MONDAY IN JUNE

Queen's Birthday

FOURTH MONDAY IN OCTOBER

Labour Day

DEC 25

Christmas Day

DEC 26

Boxing Day Dates for 2013

HEALTH HEALTH CARE The government heavily subsidises New Zealand’s ublic ealt care system from w ic e ery resident can avail him- or herself a comprehensive care. Non-residents can also use healthcare services at a cost. You can choose to take out medical insurance for private health care, although most New Zealanders do not opt for this additional cover. The General Practitioner (GP) or family doctor is the first ealt care rofessional eo le o for sim le maladies and to get prescription, and they can be found in almost every suburb and town.

Hospital treatment is free in the public system for residents and s ecialists’ treatment is subsidised but there can be waiting lists for both, which is the main reason why some Kiwis take out medical insurance.

Accident and emergency treatment at public hospitals is free, as is basic dental care for children until they are 18, and maternity care (from diagnosis to pre- and post-natal care for mother and baby). n addition eo le o er may et financial and practical assistance with medical help at home or if they need to move to a rest home or hospital.

HEALTH RISKS The Centers for Disease Prevention and Control strongly advise people to have their routine vaccination up-to-date before they travel to New Zealand ese include accination a ainst in uen a chickenpox (or varicella), polio, measles/mumps/ rubella (MMR), and diphtheria/pertussis/tetanus (DPT).

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COUNTRYGUIDE FEBRUARY - MARCH 2013

property under 2 acres, which is developed as a single-family residential property. These owners of second homes in the Bahamas may apply for an annual omeowner’s resident card at t e m migration director. However, a government is required if the property to be purchased is intended for non-single-family use and is over 2 acres.

THE BAHAMAS STATISTICS OFFICIAL NAME

Commonwealth of the Bahamas

CAPITAL CITY

Nassau

POPULATION

316,182 (July 2012 est.)

TIME ZONE

UTC –5

CURRENCY

Bahamian dollar

GOVERNMENT

Constitutional parliamentary democracy and a Commonwealth realm

REGION

Caribbean

OFFICIAL LANGUAGE

English

LAND AREA

329,613 sq km

WATER AREA

13,880 sq km

PROPERTY BASICS Waterfront condos in Abaco and Grand Bahama (120 square metres) AVERAGE PRICE/SQUARE METRE

US$2,514

RENT PER MONTH (Per sqm)

US$9.34

RENTAL YIELD

4.45%

Waterfront condos in Nassau (120 square metres) AVERAGE PRICE/SQUARE METRE

US$2,784

RENT PER MONTH (Per sqm)

US$18.93

RENTAL YIELD

8.16% SOURCE GLOBAL PROPERTY GUIDE

ELECTRICITY

120 V, 60 Hz

CLIMATE

Tropical Marine

RELIGIONS as a % of population (2000 census) PROTESTANT BAPTIST ANGLICAN PENTECOSTAL CHURCH OF GOD METHODIST ROMAN CATHOLIC OTHER CHRISTIAN NONE OR UNSPECIFIED OTHER

67.6% 35.4% 15.1% 8.1% 4.8% 4.2% 13.5% 15.2% 2.9% 0.8%

THE HOW TO’S OF THE BAHAMAS HOW TO GET IN – VISA REQUIREMENTS To work in the Bahamas for more than 90 days, one needs to secure a long-term work permit. As is often the case, you are only eligible to receive a work permit if you have an employment contract.

In order to apply, you require a statement by your future employer with information on your application, position, and duration of the employment.

Other required documents are a copy of the biodata page of your passport; two passport-sized oto ra s a olice certificate of c aracter a medical certificate not older t an days writ ten references from your previous employers; and a notification of acancy from t e de artment of labor, proving that no Bahamian was available to fill your osition Permanent residence is issued to the applicant for a lifetime. Unless your permanent residence status is for some reason revoked, you are free to work and live in the Bahamas as long as you wish.

To know more about the visa requirements for foreign visitors to the Bahamas by country, visit (www. thebahamasguide.com/travel/visa.htm).

HOW TO BUY PROPERTY According to Coldwell Banker Real Estate LLC, non-Bahamians who do not own property in the Bahamas and who are buying less than 2 acres for single-family use need only to register their investment with the government. The same principle applies to non-Bahamians buying improved

84

First-time homeowners, upon successful application, are exempt from paying stamp duty on homes valued below B$500,000. The stamp duty is generally shared equally between buyer and seller, unless otherwise agreed upon. n addition t e first on owner occu pied residential property is tax exempt. The rate for properties worth B$250,000–500,000 is three quarters of 1%, while those over B$500,000 are taxed at a rate of 1%. As of 2013, there is a ceiling of B$50,000 on owner-occupied homes.

HOW TO APPLY FOR A MORTGAGE Expats wanting to buy or build a home in the a amas will find relati ely assle free access to mortgages from the local branches of international banks, such as the Royal Bank of Canada, Scotiabank and FirstCaribbean. While all offer mort a es t ere’s considerable ariation in t e types of loans offered and who may apply.

Other costs involved in obtaining a mortgage are typically the same as those that apply in other countries, which may include a fee for property appraisal, fees for title search and registration of the mortgage, creditor life insurance premiums and comprehensive all-risk property insurance.

Buyers seeking mortgages are required to provide supporting documents, including bank statements for the previous six months, a report from t e buyer’s accountant aluation of t e ro erty and a copy of the signed purchase agreement.

HOW TO OPEN A BANK ACCOUNT To open a personal, non-commercial account, a minimum deposit of B$300 is required. The following documents are needed: 1 Passport or other national identity card 2 Letter of reference from current bank if available or from other source 3 Funds you wish to deposit 4 Utility bill or other proof of residence

Individuals may also open checking accounts, which are advantageous as they provide easy access to funds to pay bills, maintain a business, and make cash withdrawals, transfers or automatic payments. Statements can be provided monthly or upon request. Transactions can be made 24/7 through automated banking machines or online.

WHERE TO BUY PROPERTIES Properties in the capital Nassau in New Providence Island tend to command higher prices as the city is within an easy reach from the USA, Canada and the UK (JetBlue, United, Delta, US Airways ritis Airways and Air anada y re u larly here). In addition, Nassau has more shopping and nightlife.

In 2014 Nassau will see the largest casino complex in the Western Hemisphere with the opening of Chinese-funded Baha Mar on Cable Beach in ew ro idence ubbed a mini as e as’ it will a e otel rooms t e aribbean’s lar est casino fi e acres of conference facilities a ac Nicklaus-designed golf course and 307 private residences and villas for sale.

Aside from the main island of New Providence, several developments are well underway in other Bahamian islands. One of which is the 220-acre Schooner Bay on Great Abaco.

TRANSPORTATION AIR Formerly known as Nassau International Airport, Lynden Pindling International Airport (www.nas. bs ublic ome as is t e country’s lar est air ort and main international ateway t is a major hub for Bahamasair and is located in western New Providence island near to the capital city of Nassau.

It has a US Border preclearance facility, which allows all i ts to o erate as domestic i ts u on arrival at their destination. The airport handled 3.2 million passengers in 2008. any ot er airlines o erate i ts to assau in cluding British Airways (Grand Cayman and London), American Eagle (Miami), Air Canada (Toronto), Delta Airlines (Atlanta and New York-La Guardia), and United (Newark), among others.

LAND The Bahamas has about 2,718 kilometres of roads, 1,560 of which are paved. As a former British colony, drivers drive on the left.

WATER Marinas and harbours are plentiful on The Bahamas islands, making aquatic travel an easy way to navigate between the islands group. Boat travel can be the only way to reach some of the smaller islands.

Facilities catering to large passenger cruise ships are located on Grand Bahama Island and New Providence. The Lucayan Harbour Cruise Facility in Freeort and assau arbour’s rince eor e arf are built s ecifically to andle multi le modern cruise ships at one time.

Additionally se eral major cruise line cor orations have each purchased an uninhabited island, which they now operate as private island destinations available exclusively to their respective ships.

MAJOR HOLIDAYS JAN 1

New Year’s Day

MAR 29

Good Friday

APR 1

Easter Monday

JUN 24

Whit Monday

JUN 7

Labour Day

AUG 5

Emancipation Day

OCT 12

National Heroes Day

DEC 25

Christmas Day

DEC 26

Boxing Day Dates for 2013

HEALTH HEALTH CARE e a amas enjoys a i standard of li in and universal access to healthcare service. Local medical care is e cellent ere are fi e ublic and ri ate hospitals in The Bahamas with a total of 1,068 beds, including the Joint Commission International accredited Doctors Hospital. There are 55 health centres or primary-care clinics, nine in New Providence, fi e in rand a ama and in t e amily slands and 59 satellite clinics throughout the country and 288 privately owned healthcare facilities that offered primary care and diagnostic services.

HEALTH RISKS The following are disease risks that might affect travellers to the Bahamas: dengue; malaria; cutaneous larval migrans, a risk for travellers with exposures on beaches; and leptospirosis, especially for travellers engaged in recreational freshwater activities. In addition, outbreaks of ciguatera poisoning, w ic results from eatin to in containin reef fis have occurred on many islands. Endemic foci of histoplasmosis are also found on many Caribbean islands, and outbreaks have occurred in travellers.

COUNTRYGUIDE FEBRUARY - MARCH 2013

UNITED KINGDOM STATISTICS OFFICIAL NAME

United Kingdom of Great Britain and Northern Ireland

CAPITAL CITY

London

POPULATION

64,047,162

TIME ZONE

UTC+0

CURRENCY

British pound

GOVERNMENT

Constitutional monarchy and Commonwealth realm

REGION

Europe

OFFICIAL LANGUAGES

English

LAND AREA

241,930 sq km

WATER AREA

1,680 sq km

PROPERTY BASICS AVERAGE COST OF PROPERTY GROSS RENTAL YEILDS

3.43%

AVERAGE COST OF PROPERTY

US$25,445 per square metre in premier city centre

AVERAGE RENT

US$8,737 SOURCE GLOBAL PROPERTY GUIDE

AVERAGE PROPERTY PRICE

US$305,645 SOURCE RIGHTMOVE.CO.UK

ELECTRICITY

240 V50 Hz G (Type C)

CLIMATE

Temperate, moderated by prevailing southwest winds over the North Atlantic Current.

Overcast more than 50% of the time

THE HOW TO’S OF THE UK HOW TO GET IN – VISA REQUIREMENTS For those who require a visa to visit the UK, there are tourist, family, study, sports, entertainer and business visas available, as well as transit visas.

Citizens of the European Union and Switzerland will find isitin and a lyin for residency t an ot er nationalities but official ermission may still be required).

Additional information for s ecific countries and reasons for visiting can be found at: ukba. omeoffice o u HOW TO BUY PROPERTY The market is open to foreign investors. First, secure approval from a lending institution for financin if ayin cas t is is not necessary but it will still be necessary to arrange for proof of ability to ay After findin an estate a ent and searching for the property, hire a solicitor (attorney/lawyer) to draw up the paperwork for making an offer to the seller. If/after negotiations, hire a chartered surveyor/valuer to assess the property. The valuation and survey documents will be re uired to finalise t e mort a e if used and for t e final contracts and ne otia tions our solicitor will draw u t e final con tracts and once si ned it’s time to mo e in HOW TO APPLY FOR A MORTGAGE If new to the UK market, an estate agent can guide you to the appropriate lenders. Although forei ners can obtain a mort a e for financin the purchase of property in the UK, it is harder t ese days wit t e credit crunc ’ t an s to t e recession, although not impossible. Expect to put down a larger deposit of at least 15% of the asking price, and as much as 30%. The higher the deposit, the lower the monthly mortgage installments are li ely to be on’t for et to include the builder or developer for mortgage options for new build properties.

HOW TO OPEN A BANK ACCOUNT Opening a bank account in the UK is quite straightforward. You will need to bring identifying documents, such as a passport or proof of permanent residency (although residency is not required by most banks).

You will also need proof of the address of your residence (in or out of the UK) in the form of a tax statement or utility bill with your name on it. Most banks also require an initial deposit, although the exact amount will vary.

WHERE TO BUY PROPERTIES There are several cities in the UK that serve as financial ubs and business centres and often include the best options for property investors, especially those with an aim to letting out the property for an income. The most obvious is London, although Edinburgh is also an excellent market, as are Bristol and Cambridge. Some cities are not for the faint of heart when it comes to investment, such as Liverpool, Newcastle and Glasgow, although deals are to be found for an investor who can afford to park their money and wait for returns.

Country-side options are also popular investments in the UK, with ideal locations found all over the south and southwest, including Wales, as well as the Midlands, Yorkshire, and islands such as the Isle of Wight.

GUIDE FOR EXPATS HOW TO PAY BILLS In addition to payment by check through the post, or in person at a retail outlet, each utility service company, from telephone and cable/ satellite operators to electricity and water companies, have online payment methods available.

Additionally, a payment portal called MyBillsOnline is now available and offering secure payment options online for most utility and service operators in the UK. HOW TO APPLY FOR A PHONE LINE The primary telephone services company in the UK is called British Telecom (BT), but there is also Kingston, Virgin Media and Telewest, and any can install a phone line for your property in the UK. HOW TO APPLY FOR INTERNET Ranging from dial-up to ADSL, the UK is connected so it’s just a matter of determinin your needs and selecting the most attractive offer.

HOW TO APPLY FOR TV LICENCE / CABLE / SATELLITE In the UK, terrestrial television does not come free, as it is owned by the BBC and free of advertising. A licence from the government is required for even basic television viewing, and additional services such as cable or satellite may also be purchased. TVLicensing.co.uk is perhaps the easiest way to apply for a basic television package.

Additional services can be acquired through Sky, BT Vision, and Virgin TV. HOW TO APPLY FOR A MOBILE PHONE ere are fi e rimary mobile one ser ice ro viders in the UK, including Vodafone, Orange, Three (3), O2, and T-Mobile. Visit their websites or retail outlets selling mobile phones for contract requirements.

TIPPING CUSTOMS Tipping is customary and expected in most service sectors in the UK, ranging from 5% to 20% of the bill, including taxis, hotel porters, hairdressers and bars and restaurants.

SCHOOL SYSTEM The schooling systems for England, Northern Ireland, Scotland and Wales differ.

TRANSPORTATION AIR ere are air orts and airfields scattered across the entire United Kingdom, 334 of which a e a ed runways e country’s busiest London Heathrow Airport (www.heathrowairort com is also world’s busiest in terms of in ternational passengers (more than 64.6 million in ondon’s second major air ort is atwic which served more than 34 million passengers in anc ester Air ort meanw ile is t e ’s third busiest, serving more than 18 million passen ers e ery year Ot er major air orts include London Stansted in Essex, Birmingham, Cardiff, Edinburgh, and Belfast. e ’s lar est airline is ritis Airways www britis airways com wit a eet si e of air crafts and y to destinations worldwide Other important airlines include Virgin Atlantic, BMI, easyJet, Jet2, and Thomson Airways, among others.

LAND Forms of land transportation in the UK are excellent, ranging from paved roads, car hire companies, taxi services, and bus and rail terminals. The ’s radial road networ is com osed of kilometres of main roads, 3,497 kilometres of motorways, and 344,000 kilometres of paved roads.

The National Rail network of 16,116 route kilometres in Great Britain and 303 route kilometres in Northern Ireland carries over 18,000 passenger and 1,000 freight trains daily. There are also urban or metro rail networks in London, Manchester, Birmingham, Edinburgh, Glasgow, Cardiff, Belfast, Leeds, and Liverpool.

MAJOR HOLIDAYS Any major oliday in t e ban oliday’

is referred to as a

Bank holidays recognised by the entire UK JAN 1

New Year’s Day

MAR 29

Good Friday

MAY 6

May Day (First Monday in May)

MAY 27

Spring Bank Holiday (Last Monday in May)

DEC 26

Christmas Day

DEC 26

Boxing Day

Other Holidays observed by some regions MAR 17

Saint Patrick’s Day (Northern Island)

APR 1

Easter Monday (England, Wales, Nothern Island)

JUNE 12

The Twelfth (Battle of the Boyne) (Northern Island)

AUG 5

Summer Bank Holiday (Scotland)

NOV 30

Saint Andrew's Day (Scotland) Dates for 2013

HEALTH HEALTH CARE Public health care in the UK is available to citizens and permanent residents on the National Health Care plan, with clinics and hospitals available throughout the country and the surrounding islands. High-quality care is available, although there may, in some less urgent circumstances, be a wait for doctor attention. Private health care is also available and offers excellent, quality care.

HEALTH RISKS ere are no major ealt ris s associated wit visiting the UK, but your doctor may recommend routine vaccinations or for hepatitis B, especially for anyone who is out of date with their vaccination schedule.

85

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COUNTRYGUIDE FEBRUARY - MARCH 2013

WHERE TO BUY PROPERTIES

IRELAND STATISTICS OFFICIAL NAME

Republic of Ireland

CAPITAL CITY

Dublin

POPULATION

4,722,028

TIME ZONE

UTC+0

CURRENCY

Euro

GOVERNMENT

Republic, parliamentary democracy

REGION

Europe

OFFICIAL LANGUAGES

English, Irish Gaelic

LAND AREA

68,883 sq km

WATER AREA

1,390 sq km

Ireland is covered by some of the most beautiful countryside in t e world so if you’re loo ing for some peace and quiet, or to invest in a country estate or t en you’ e come to t e right place. Otherwise, the cityscape of Dublin is your best bet and the most likely to offer rental returns.

TRANSPORTATION

PROPERTY BASICS Based on January 2013 exchange rate AVERAGE COST OF PROPERTY

US$4,120 per square metre in premier city centres

RENT (per month per square metre)

€9.51 (US$12.83)

RENTAL YIELD (P.A.)

3.25% SOURCE GLOBAL PROPERTY GUIDE

The Property Services Regulatory Authority says the average price of a house in Ireland is at US$112,400 (£137,000).

NUMBEO GAUGES THE PER-SQUARE-METRE, AVERAGE PRICE OF RENTING A THREE-BEDROOM APARTMENT: IN THE CITY CENTRE:

US$2,422 (£1,500)

OUTSIDE THE CITY CENTRE:

US$1,937 (£1,200)

ELECTRICITY

230 V, 50 Hz

CLIMATE

Temperate maritime with mild winters and cool summers.

Consistently humid and overcast about 50% of the time

THE HOW TO’S OF IRELAND HOW TO GET IN – VISA REQUIREMENTS Although there are a large number of countries whose citizens do not require a visa for a short-term visit for holiday or pleasure, there are several countries where a visa is always required and, in some cases, where a transit isa is e en re uired w en just connectin to your final destination t rou reland It is best to consult the nearest Embassy of Ireland or visit www.citizensinformation.ie/ for further information s ecific to your needs HOW TO BUY PROPERTY Any foreigner can buy property in Ireland, as there are no s ecific restrictions for forei n in estment An estate a ent will el you find a ro erty t at you would like to buy and to draft an offer letter. The offer for purchase in not binding, however, and a formal survey is recommended to ensure the structural soundness and land borders w ic will also confirm your decision to buy (or not).

At this point, formal, legally binding documents can be drawn up (always use the services of a solicitor) and a deposit of normally 10% is paid to secure the purchase agreement. Conveyance takes one and a half to two months to complete at which point the stamp duty is paid and the sale is recorded by the local Land e istry office HOW TO APPLY FOR A MORTGAGE Considering the current economic climate in Ireland, obtainin a mort a e is es ecially difficult but more likely with large deposits (30-50% or more). It is recommended that you buy property in Ireland with cash instead.

HOW TO OPEN A BANK ACCOUNT Banks accounts can be held by both residents and non residents alike as long as you are at least 18. You must apply for the account in person and provide two types of proof of identity, including one with a photo, such as a passport. Foreigners are not taxed on income accrued with their Irish bank accounts.

AIR reland’s main international ateway is ublin International Airport (www.dublinairport.com). urrently uro e’s t busiest it is t e ub of reland’s a carrier Aer in us low cost carrier Ryanair, and regional airlines Aer Arann and CityJet. The airport also has an extensive mediumand long-haul network, and domestic services to many regional airports in Ireland. In 2012, the airport handled 19.1 million passengers, served 169 routes with 55 airlines, including British Airways, emirates, KLM, Lufthansa, Air France, Continental Airlines, Iberia, and Delta Airlines, among others. It is also one of only two European airlines with US border preclearance services available for US-bound passengers (the other being Shannon). reland’s second busiest or Air ort ocated 6.5 kilometres south of Cork City, the airport served more than 2 million passengers in 2012.

Aer in us as sc eduled i ts from or to other European cities, such as London-Heathrow, Amsterdam, Brussels, Malaga, Munich and Paris-Charles de Gaulle.

Shannon Airport in Limerick, meanwhile, is Ireland’s t ird busiest and t e country’s first trans atlantic gateway to the USA. United Airlines as re ular sc eduled i ts from annon to Newark, while Aer Lingus, Delta Airlines, and US Airways a e seasonal i ts to major cities LAND Transportation of all varieties is easy, safe and affordable, from renting a car and driving the mostly paved roads to hopping on a bus, train or into a taxi.

Railway services are provided by Iarnród Éireann, which operates all internal intercity, commuter and freight railway services. Ireland has an extensive network of motorways, national primary roads and national secondary roads, which are all managed by the National Roads Authority.

MAJOR HOLIDAYS JAN 1

New Year’s Day

MAR 17

St. Patrick's Day

MAR 18

St. Patrick's Day Observed

APR 1

Easter Monday

MAY 6

May Day

JUN 3

June Bank Holiday

AUG 5

August Bank Holiday

OCT 28

October Bank Holiday

DEC 25

Christmas Day

DEC 26

St. Stephen's Day

also provide a bill-payment section that can either transfer the funds or send a check on your behalf.

HOW TO APPLY FOR A PHONE LINE Eircom, the national provider, covers most phone services in Ireland, although it was deregulated a few years ago. Your best bet to schedule an installation appointment is to reach Eircom by phone or online. In addition to the fee for the installation, about US$35–175 for either a reconnect or a new line, there is a monthly rental fee of about US$25. There are other service providers, such as BT Ireland, but you will still have to pay Eircom for the line rental.

HOW TO APPLY FOR INTERNET Most city locations are covered with internet services, from dial-up to ADSL, although some rural areas are not. The primary service providers for internet include Eircom, Vodafone, O2, Meteor, and 3 network.

HOW TO APPLY FOR A MOBILE PHONE Primary mobile phone service providers include Vodafone, O2, 3 network and Meteor. Packages are available to buy the phone and SIM card together, and most contracts are pay-as-you-go.

TIPPING CUSTOMS Unless a service charge is included in the bill, tipping is increasing in popularity and becoming more expected in most service sectors of Ireland.

Although in most cases, this means a token gratuity of €0.50 to €2. Round up the bill for a café or taxi fare. Fine dining establishments or luxury spas or hair salons may expect a larger tip.

SCHOOL SYSTEM The quality of education in Ireland is generally considered excellent. All children ages 6–16 are required to attend school, although the system officially be ins wit re sc ool for c ildren aged 3–4. Primary, secondary and tertiary levels see the education through to the age of 18.

As reli ion lays an im ortant role in reland’s culture, many schools are not secular, although there are secular schools available as well.

INTERNATIONAL SCHOOLS There is a large directory of international schools in reland es ecially in t e major cities of ublin and Cork.

COUNTRY CLUBS/SOCIAL CLUBS rom e uestrian and olfin clubs to i soci ety and heritage clubs, everyone and everything is re resented in reland’s ast array of social and country clubs, both inner city and rural.

HEALTH HEALTH CARE There is both public and private healthcare available in Ireland. Residents in Ireland are entitled to the public healthcare, which is funded through taxation. In addition to residents of Ireland, visitors with a European Health Insurance Card are also allowed to use the public health services.

Dates for 2013

GUIDE FOR EXPATS HOW TO PAY BILLS Bill payment can be made using several methods in Ireland. For bills received by post, a pre-addressed return envelope is provided for payments by check. However, most utility companies and other types of service providers have an online store where bills can be paid, and your Irish bank, if you have an account, will

The degree of health services available to the public depend largely on income. Those who are considered more in need will receive a card that entitles them to hospital, dental, optical, aural, prescription care, while those with higher incomes, nearly 70% of the population, are expected to pay fees for these services.

HEALTH RISKS ere are no si nificant ealt ris s but at ris individuals, such as children, the elderly or immune-compromised people should consult their own physicians several weeks before travel to the Ireland. In some cases, vaccinations may be recommended.

87

COUNTRYGUIDE FEBRUARY - MARCH 2013

complete the transaction, and the cost of this cannot be redicted as t e different law firms vary in their charges. There is also the cost of any survey that you have carried out on the property and the value of the deposit, which can be as much as a third of the cost of the property.

BRUNEI STATISTICS OFFICIAL NAME

Brunei Darussalam

CAPITAL CITY

Bandar Seri Begawan

POPULATION

408,786 (July 2012 est.)

TIME ZONE

UTC+8

CURRENCY

Brunei dollar

GOVERNMENT

Constitutional sultanate

REGION

South-East Asia

OFFICIAL LANGUAGES

Melayu Brunei, English

LAND AREA

5,265 sq km

WATER AREA

500 sq km

COUNTRY COMPARISON TO THE WORLD

15

PROPERTY BASICS AVERAGE COST OF PROPERTY IN BANDAR SERI BEGAWAN PRICE PER SQUARE METER TO BUY APARTMENT IN CITY CENTRE

US$399.54

PRICE PER SQUARE METER TO BUY APARTMENT OUTSIDE OF CENTRE

US$1,268.55

SOURCE GLOBAL PROPERTY GUIDE

ELECTRICITY

240 V50 Hz G (Type C)

CLIMATE

Tropical; hot, humid, rainy

RELIGIONS (2000 census) ISLAM PROTESTANTISM ROMAN CATHOLICISM HINDUISM OTHERS OR UNSPECIFIED

86.1% 5.7% 3% 1.8% 3.4%

THE HOW TO’S OF BRUNEI HOW TO GET IN – VISA REQUIREMENTS All travelers will need a passport valid for at least 90 days following your departure date from Brunei arussalam owe er mont s’ alidity is stron ly recommended. Also make sure your passport has blank visa pages.

Most destinations, including Brunei Darussalam, require that you have adequate un-used pages in your passport, allowing for any necessary stamps upon arrival and departure.

Check with your airline in case you have connectin i ts o erseas as art of your journey to ru nei Darussalam. It may be the case that countries you pass through en route to your destination may require a separate transit visa. Please refer to visa re uirements of t e s ecific country For list of visa restrictions, visit www.atfbrunei.com/visa.php HOW TO BUY PROPERTY It is only in recent years that foreigners have been able to invest in land and property in Brunei and it is still very much in the early days of welcoming foreign investment. Previously buyers could only lease land unless they had written permission from the Head of State, which was almost impossible to get.

House prices have increased over the last few years, but this is due as much to the rising cost of construction as it is to t e in u of forei n in estment House prices did not suffer in the global economic crisis as they did in other countries. If you wish to invest in property in Brunei, now is a good time as the country is making a great effort to stimulate its economy, which is currently reliant upon the gas and oil industries. At the moment only a small percentage of land is privately owned, which means that there is much more available.

Buying a property incurs a number of fees. Buyers will need to engage the services of a lawyer to

88

HOW TO APPLY FOR A MORTGAGE It is unlikely that a foreigner will be able to secure a mortgage from a Brunei bank unless they have already been living in the country for a number of years. It may be possible to obtain a mortgage from a bank in your home country and you should be in the process of arranging this when you are looking for a home. However, with the low cost of living, somebody who wishes to buy in a less expensive area may do well to purchase outright if at all possible. This will make the process quicker.

HOW TO OPEN A BANK ACCOUNT or e ats w o are just arri in in t e country it may be possible to open an account with one of the international banks, which has a base there.

Banks such as HSBC allow expats to hold accounts through one of their Brunei branches and will give customers access to a range of products and services worldwide. There will also be a choice of local banks, which are useful if you intend to stay in the country for some time and do not want to carry out any international transactions, as fees and charges may be lower.

In order to open an account you must present a certain amount of documentation when you visit the bank. You will need to present your passport and/or a locally issued ID card as proof of identity, a copy of your employment contract and proof of address, which may be a copy of your tenancy agreement or a utility bill. Depending on the bank, you may also be asked for a small deposit when you open the account. Some banks may also expect you to keep a minimum balance in the account, but this can be as little as $5.

Joint accounts can be opened for spouses and debit cards will be issued in both names. A current account is the most popular type of account and is used for day to day transactions. Monies can be paid in by cheque, cash or money transfer and bills can be paid by cheque, cash, direct debit or standing order. Current accounts can be monitored using telephone and internet banking and a number of transactions can also be carried out using these methods.

TRANSPORTATION AIR The growth in popularity of air travel in the s resulted in a si nificant increase in t e ci il aviation movement with the old airport busy with activity and operating beyond its capacity prompting the Government of Brunei Darussalam to build a new airport to cater the needs of the growing number of users. A new airport was built in Mukim Berakas focusing on easy access from all areas of the country and became operational in 1974. Its inauguration marked an important date in the history of civil aviation in Brunei, opening Brunei to the world and was aptly named as Brunei International Airport.

Currently Brunei has one commercial airline, Royal Brunei Airlines, and it is the national carrier for Brunei. Established on 18 November 1974 as an independent corporation, it is wholly owned by the Government of Brunei Darussalam. As of January 2004, RBA provides scheduled services to more than 20 destinations across Asia, the Middle East, Australasia and Europe with introduction to new destination as time goes by.

LAND runei’s ublic trans ort system as im ro ed throughout the years and now boasts of very reasonably priced taxi fares as well as a punctual bus service. Metered taxis are available at most hotels, shopping centres and the Brunei International Airport. In the capital, Bandar Seri Begawan, taxis are located at the multi-storey car park at Jalan Cator.

Visitors can also opt for chauffer-driven and selfdri en cars w ic are on rental from major otels and the airport.

Buses are regular, comfortable and relatively cheaper. There are six bus routes in daily operation in Bandar Seri Begawan - the Eastern Line, the Southern Line, the Western Line, the Central Line, the Circle Line and the Northern Line.

WATER One of t e major tourists’ attractions in runei is t e picturesque water village, Kampong Ayer, dubbed t e enice of t e ast’ ater ta is are used to et around the village, which is located near the capital. Water taxis can be hailed from the numerous doc in orts’ alon t e ri erban s of t e runei River and fares are negotiable. Speedboats are used to travel to Temburong, which is one of the four districts of Brunei. These speedboats can easily be identified wit its distincti e blue colour Those wishing to go to the Malaysian Federal Territory of Labuan and the Malaysian towns of Sundar and Lawas can board the ferries at Serasa Terminal, Muara.

MAJOR HOLIDAYS JAN 1

New Year’s Day

JAN 24

Milad un Nabi (Birth of the Prophet Muhammad)

FEB 10

Chinese New Year

FEB 23

National Day

MAY 31

Royal Brunei Armed Forces Day

JUN 6

Israk Mikraj (Night of Ascension)

JULY 9

Start of Ramadan

JULY 15

H.M. the Sultan's Birthday

AUG 8

Hari Raya Aidil Fitri (End of Ramadan)

OCT 15

Hari Raya Aidil Adha (Feast of Sacrifice)

NOV 4

Al-Hijra (Islamic New Year) xxxx

DEC 25

Christmas Day Dates for 2013

HEALTH HEALTH CARE Brunei has one of the best publicly run healthcare systems in the world. Its citizens are entitled to free medical care and employed migrants are entitled to health care at a small cost. Brunei has excellent hospital facilities in all four of its districts, the bigest of w ic is aja steri en iran Ana ale a located in Bandar Seri Begawan. There are also two private hospitals for those who have private medical insurance e fi e eneral os itals are su le mented by the health clinics situated around the country.

HEALTH RISKS Diseases transmitted by insects or animals, such as dengue fever and malaria are common in SouthEast Asia. Symptoms are fever, headache, rash, muscle and joint ain nausea and in se ere cases hemorrhagic manifestations. From January to April 2010, health authorities reported 77 cases of dengue fever compared to 37 during 2009. Water- and food-borne diarrhoeic diseases have also been reported in Brunei.

Leptospirosis is also endemic. It is transmitted to human through contact with water, food, or soil containing urine from infected animals. Due to the risk of leptospirosis, travelers are advised not to bathe in fresh waters (lake, rivers) or walk barefoot.

COUNTRYGUIDE FEBRUARY - MARCH 2013

The most common option for foreigners, however, is to use a local name-holder, with whom the foreign buyer enters into contracts. Locally known as Hak Pakai Atas Hak Millik, or the right of use above freehold land, the Hak Pakai certificate is alid for years but e tendable to 100 years.

INDONESIA STATISTICS OFFICIAL NAME

Republic of Indonesia

CAPITAL CITY

Jakarta

POPULATION

248,645,008 (July 2012 est.)

The following documents (also signed by the local nominee, if using one) are required:

TIME ZONE

UTC +7

CURRENCY

Indonesian rupiah

1 Mortgage agreement

GOVERNMENT

Republic

REGION

South-East Asia

2 Power of Attorney, in order to grant exclusive rights to mortgager to release the mortgage

OFFICIAL LANGUAGE

Bahasa Indonesia

3 Financial Loan Agreement

(official, standardised register of Malay)

LAND AREA

1,811,569 sq km

WATER AREA

93,000 sq km

COUNTRY COMPARISON TO THE WORLD

15

4 Power of Attorney for all rights to the land 5 Statement letter which outlines the proof of payment for the property 6 Statement of indemnity (for nominee)

PROPERTY BASICS AVERAGE PRICE/PER SQUARE METRE

US$2,099

RENT PER MONTH (for a 120-sqm apartment)

US$1,955

7 Power of Attorney for IMB Authority for Building Permit 8 Statement letter: no second mortgage

SOURCE GLOBAL PROPERTY GUIDE

9 Lease agreement to grant buyer 25 years lease plus 25 year automatic extension.

According to Knight Frank, Jakarta is the strongest performer in its Global Cities Report Highlights Q3 2012, with price growth surging 28.5% in the year to September 2012.

All transactions of land rights must be via deeds e ecuted before a land deed official and must be re istered in t e re ional office of t e a tional Land Registry.

9.31%

RENTAL YIELD

ELECTRICITY

230 V/50 Hz (Type C)

CLIMATE

tropical; hot, humid; more moderate in highlands

CULTURES/ETHNICITIES (2000 census) 66.3% 11.2% 13.4% 19.1%

JAVANESE SUNDANESE MADURESE MINANGKABAU

BETAWI BUGIS BANTEN BANJAR

OTHER OR UNSPECIFIED

2.4% 2.4% 2% 1.7%

29.9%

RELIGIONS (2000 census) ISLAM PROTESTANTISM ROMAN CATHOLICISM HINDUISM OTHERS OR UNSPECIFIED

86.1% 5.7% 3% 1.8% 3.4%

EXPATS As of 2010, there are approximately 46,000 expats living in Indonesia.

THE HOW TO’S OF INDONESIA HOW TO GET IN – VISA REQUIREMENTS No visa is required for short-term business or holiday visits for citizens of Brunei Darussalam, Chile, Hong Kong SAR, Macau SAR, Malaysia, Morocco, the Philippines, Peru, Singapore, Thailand and Vietnam.

Indonesia also offers Visa on Arrival (VOA) with a maximum stay of 30 days (although this can be extended for an additional 30 days). Requirements for the VOA include a valid passport with at least 6 mont s’ alidity round tri air lane tic et and fee of US$25.Citizens of Argentina, Canada, Germany, the USA, the UK, and 60 other countries are eligible for VOA. For a complete list, visit www.embassyofindonesia or consular isit isa tm or more information isit www embassyofindonesia or consular/visitvisa.htm HOW TO BUY PROPERTY Although foreigners are technically not allowed to own freehold land, there are legal, commonly used ways to get around this. For example, foreigners are allowed to own condominiums as long as they don’t own t e land on w ic t e structure stands

HOW TO APPLY FOR A MORTGAGE Thanks to the Hak Pakai certificate t e forei n ers name is on the title deed thus allowing the foreigner to apply for a mortgage. Note, however, that foreigners are allowed to own one Indonesian-based property, so the bank will need erification t at t is is not a second mort a e The best bet may be to contact an International Mortgage broker, such as Savills Private Finance, International Private Finance or Overseas Mortgage Direct.

HOW TO OPEN A BANK ACCOUNT Generally a minimum deposit will be required, which varies from bank to bank. Documents required to open an account include passport, residency permit (or temporary stay permit), and, in some cases, a letter from an employer or s onsor ome major ban s in ndonesia in clude American Express Bank, Bank Bali, Bank of America, Bank Indonesia, Citibank Indonesia, and Standard Chartered Indonesia.

TRANSPORTATION AIR Air transportation in Indonesia serves as a critical means of connecting the thousands of islands t rou out t e arc i ela o a arta’s Soekarno–Hatta International Airport (jakartaairportonline.com ser es as t e country’s main international gateway. Flag carrier Garuda ndonesia as re ular sc eduled i ts from Jakarta to numerous cities across the country and around the world, including Amsterdam, an o eijin uan ou on on ed dah, Kuala Lumpur, Melbourne, Perth, Seoul, Shanghai-Pudong, Singapore, Sydney, Taipei, and Tokyo-Narita. n addition numerous ot er carriers y from their respective hubs to Jakarta, including Air ina eijin A A o yo arita at ay acific on on ina Airlines ai ei Emirates (Dubai), Etihad (Abu Dhabi), Korean Air (Seoul), Malaysia Airlines (Kuala Lumpur), Philippine Airlines (Manila), Qantas (Sydney), Qatar Airways (Doha), Thai Airways International (Bangkok) and Vietnam Airlines (Ho Chi Minh City).

ndonesia’s second busiest air ort is ali’s ura Rai International in Denpasar. There are also regional airports in Surabaya, Yogyakarta, Bandung, Banda Aceh, and Manado.

LAND re uent traffic jams in major cities es ecially a karta, are an indication of the increasing number of cars on the road versus the amount of new road construction. Buses and trains offer unreliable service and put foreigners at risk of pickpockets and muggers and generally should be avoided except for the most adventurous. Unless you live in Indonesia and are comfortable driving, take a taxi, bus, train or i t BUS Coach services are comfortable, modern and reliable. City buses, especially the economy class, are not advisable to foreigners. Schedules are difficult to na i ate e en to t e locals and wit out some understanding of the language, the entire system is difficult to mana e TAXI Traditional taxis, while legally required to use the meter, are known to be corrupt; however, Bluebird taxi service has earned a reputation for honesty and security (they are light blue and include an emblem of a bird on the side).

NOTE: With any taxi service, insist that the meter is used, always carry spare coins so that you do not overpay a driver who claims he/she has no change, and ask the driver to repeat your destination to ensure you are going to the right place.

RAIL ommuter rail is a ailable for t e major cities, but service is unreliable. Trains across the nation, from Bali, Java and Sumatra, are generally punctual, and bookings are computerized. Buy tickets at the station, or, starting in 2012, bookings are available online (though the website is not translated into English).

MAJOR HOLIDAYS JAN 1

New Year’s Day

FEB 10

Chinese New Year

JAN 24

The Prophet’s Birthday

MAR 29

Good Friday

MAY 6

Buddha’s Birthday

MAY 9

Ascension Day

JUN 6

Ascension of Muhammad

AUG 17

Independence Day

AUG 8-9

Idul Fitri

OCT 15

Hari Raya Aidiladha (Feast of the Sacrifice)

NOV 5

Islamic New Year

DEC 25

Christmas Day Dates for 2013

HEALTH HEALTH CARE There is a national healthcare coverage for Indonesians, but does not cover foreigners, although t e ser ices are o en to forei ners for a fee ajor cities include private hospitals that are expensive, but clean and relatively luxurious, including stateof-the-art equipment.

HEALTH RISKS The entire archipelago, except urban areas, poses risk for tropical diseases such as malaria, dengue fever, Japanese encephalitis, and Chikungunya Leptospirosis, an infection caused by bacteria of the genus Leptospira, is another disease common during the rainy season.

People travelling to Indonesia are advised to get themselves vaccinated for vaccine-preventable diseases, such as those against hepatitis A and B, typhoid, Japanese encephalitis, and rabies.

For more information, visit wwwnc.cdc.gov/travel/destinations/indonesia.htm.

89

COUNTRYGUIDE FEBRUARY - MARCH 2013

those over 50 can work a maximum of 20 hours/ wee enefits of t e ro ramme include a ten-year residency pass and tax-free car importation or purchase.

MALAYSIA STATISTICS

The following is a very high-level overview of the process of buying property:

OFFICIAL NAME

Malaysia

CAPITAL CITY

Kuala Lumpur

POPULATION

29,179,952 (July 2012 est.)

TIME ZONE

UTC +8

CURRENCY

Malaysian ringgit

GOVERNMENT

Federal constitutional monarchy

REGION

South-East Asia

OFFICIAL LANGUAGE

Malay

LAND AREA

329,613 sq km

WATER AREA

1,190 sq km

4 Apply for State Authority Consent.

AVERAGE PRICE/SQUARE METRE

US$2,182

RENT PER MONTH (for a 120-sqm apartment)

US$1,356

RENTAL YIELD

6.21%

SOURCE GLOBAL PROPERTY GUIDE

According to Knight Frank, home prices in Malaysia rose 6.6% year-on-year to the third quarter of 2011. In an effort to curb skyrocking house prices, the Malaysian government will double teh entry price for foreigners buying property in the country from US$162,972 to US$325,944.

ELECTRICITY

240 V/50 Hz (Type G)

CLIMATE

Tropical; annual south-west (April to October) and north-east (October to February) monsoons.

CULTURES/ETHNICITIES (2004 est.)

CHINESE INDIGENOUS INDIAN OTHER

50.4% 23.7% 11% 7.1% 7.8%

RELIGIONS (2000 census) ISLAM Official BUDDHISM CHRISTIANITY HINDUISM

66.3% 13% 10% 6.3%

CONFUCIANISM, TAOISM OTHER TRADITIONAL CHINESE RELIGIONS

2.6%

OTHER OR UNKNOWN

1.5% 0.8%

NONE

EXPATS About 0.25% of population, or 70,000

THE HOW TO’S OF MALAYSIA HOW TO GET IN – VISA REQUIREMENTS All travellers need a passport valid for at least 90 days following the departure date from Malaysia, however, 6 months validity is strongly recommended.

Passports must have blank visa pages. It is also adisable to confirm w et er a transit isa is re uired for any connections.

Citizens of the USA and the UK may visit Malaysia for up to 90 days without a tourist visa. Singaporeans have up to 30 days. isit t e alaysian isa aut ority for erification (www.imi.gov.my/).

HOW TO BUY PROPERTY Foreigners are allowed to purchase residential and commercial property in Malaysia, with a minimum purchase price of RM500,000 (US$163,430) (may vary from state to state) and a 10% deposit. Foreigners need to apply for a permit from the authorities, and approval can take two to six months.

In 2006, the Ministry of Tourism launched the Malaysia My Second Home Programme (MM2H) to encourage more foreigners to settle in the country (successful applicants under 50 cannot work and

90

2 Upon signing the offer letter, pay 2% of purchase price.

3 Pay the additional 8% after the Sales and Purchase agreement is drafted and signed.

PROPERTY BASICS

MALAY

1 After identifying the property to purchase, hire a local lawyer to negotiate the price and draft an offer letter to the seller. Funds you wish to deposit

5 The remainder of the purchase price is paid (cash or mortgage).

6 The Sales and Purchase agreement is sent to the land registry and the title deeds are transferred to t e buyer’s name subject to approval of the State Authority.

HOW TO APPLY FOR A MORTGAGE Malaysia welcomes foreign investment and banks ma e t e rocess uite sim le alt ou s ecific guidelines vary from bank to bank. Expatriates recei e u to financin de endin on t e details w ic may be uite subjecti e and addi tional incentives are often offered for repayment lans suc as a lowered lendin rate for t e first year (currently at about 6.8%). Banks usually require, in addition to a passport, wage slips, bank statements and a form from t e a licant’s em ployer, if relevant.

Some banks in Malaysia that offer mortgages to foreigners: UOB, HSBC, Standard Chartered, EON Bank, Hong Leong Bank HOW TO OPEN A BANK ACCOUNT Foreigners can open a bank account in Malaysia without a residency permit, but will need a letter of reference from a Malaysian resident or employer.

Passport is required.

Some banks in Malaysia include: Citibank Berhad, HSBC Bank Malaysia Berhad, OCBC Bank Malaysia Berhad, Standard Chartered Bank Malaysia Berhad, The Bank of Nova Scotia Berhad, The Royal Bank of Scotland Berhad, UOB

TRANSPORTATION AIR alaysia’s main international ateway is t e Kuala Lumpur International Airport (www.klia.com. my). This airport handles about 35 million passeners e ery year ma in it Asia’s fift busiest and t e world’s t busiest in terms of international passengers.

Flag carrier Malaysia Airlines (www.malaysiaairlines.com) – one in only six 5-star airlines rated by ytra as re ular i ts from t e air ort to cities across t e lobe includin an o eijin Delhi, Frankfurt, Hong Kong, Istanbul, Jakarta, London-Heathrow, Los Angeles, Manila, Melbourne, Osaka, Paris-CDG, Seoul, Shanghai-Pudong, Singapore, Sydney and Tokyo. n addition many ot er airlines y to uala um ur from their respective hubs, such as Air France (Paris at ay acific on on ina Airlines (Taipei), China Eastern (Shanghai-Pudong), China Southern (Guangzhou), Emirates (Dubai), Etihad (Abu Dhabi), Japan Airlines (Tokyo-Narita), KLM (Amsterdam), Korean Air (Seoul), Lufthansa (Frankfurt), Qatar Airways (Doha), Singapore Airlines (Singapore), Thai Airways International (Bangkok), and Vietnam Airlines (Ho Chi Minh City).

There are also other international airports in Pen-

ang, Kuching and Kota Kinabalu and smaller domestic airports in most state capitals.

LAND Malaysia has an excellent network of highways as well as federal, state and municipal roads. Due to the availability of good roads, land transportation is the most common mode of travel in Malaysia.

BUS Air-conditioned express buses and non-airconditioned regional buses are available from Kuala Lumpur to many other towns in Peninsular Malaysia, and also between other towns and cities in Malaysia. Buses connecting towns and cities throughout the country charge fares according to the distance covered.

TAXI City taxis are required by law to use the meter. Interstate taxis and minivans are also available – the interstate taxi stand in Kuala Lumpur is located on the level 2 of the Pudu Raya Bus Terminal.

RAIL There are both Light Rail Transit (LRT) and monorail services available in Kuala Lumpur. Keretapi Tanah Melayu Berhad (KTM) has a rail network that stretches from north to south and east to west in Peninsular Malaysia and they offer several special deals for tourists. The train in Malaysia is extremely affordable, safe, comfortable (air-conditioned) and offers comfortable sleeping births for lon er journeys into and out of t e country

MAJOR HOLIDAYS JAN 1

New Year’s Day

FEB 10

Chinese New Year

FEB 11

Second Day of the Chinese Lunar New Year

FEB 1

Federal Territory Day

JAN 24

The Prophet’s Muhammad’s Birthday

JAN 28

Thaipusam

MAR 29

Good Friday

MAY 1

Labour Day

MAY 24

Wesak Day

JUNE 2

The Yang di-Pertuan Agong’s Birthday

AUG 8

Hari Raya Puasa

AUG 31

National Day

SEPT 16

Malaysia Day

OCT 15

Hari Raya Haji

NOV 3

Deepavali

NOV 5

Muharram

DEC 24

Christmas Eve

DEC 25

Christmas Day

DEC 31

New Year’s Eve Dates for 2013

HEALTH HEALTH CARE Universal, high-quality health care is available in Malaysia, although some remote areas are not well covered. The Ministry of Health offers a network of nationwide clinics and hospitals, which are generally stocked with the latest, state-of-the-art equipment. Some private healthcare providers include Colonbia Asia Hospital, Hospital Penawar, Kempas edical entre lini a ya os ital ersalin Medical Specialist Centre, Regency Specialist Hosital ey aternity ecialist ynae entre HEALTH RISKS Being a tropical country, Malaysia presents the same health risks as Indonesia. The following diseases are common in the country: malaria, dengue fever, chikungungya, and Japanese encephalitis.

People travelling here are advised to have their routine vaccination up-to-date (MMR, DPT and poliovirus).

For more information, visit wwwnc.cdc.gov/travel/ destinations/malaysia.htm.

COUNTRYGUIDE FEBRUARY - MARCH 2013

pines is more or less the same as it is in any country – always hire and follow the advice of a registered real estate agent and/or specialty attorney.

PHILIPPINES

1 Make an offer and place a deposit of typically 10%.

STATISTICS OFFICIAL NAME

Republic of the Philippines

CAPITAL CITY

Manila

2 Let the attorneys and estate agents draw up the offer contracts.

POPULATION

92,337,852 (July 2012 est.)

3

TIME ZONE

UTC +8

CURRENCY

Philippine peso

GOVERNMENT

Republic

REGION

South-East Asia Filipino (standardised register of and English

OFFICIAL LANGUAGES

Tagalog)

LAND AREA

298,170 sq km

WATER AREA

1,830 sq km

PROPERTY BASICS AVERAGE PRICE/SQUARE METRE

US$3,204

RENT PER MONTH (for a 120-sqm apartment)

US$1,356

RENTAL YIELD

8.62%

SOURCE GLOBAL PROPERTY GUIDE

According to Jones Lang LaSalle, approximately 154,000 condominium units are expected to be completed between 2012 and 2016. This is in stark contrast to the 7,000 completed by the turn of the millennium e country’s ro erty boom is bein filled by enuine demand from end users w ic is a result of improved economic outlook.

ELECTRICITY

220 V/60 Hz (Type A, B, C)

CLIMATE

Tropical marine; north-east monsoon (November to April); south-west monsoon (May to October)

RELIGIONS (2000 census) ROMAN CATHOLICISM ISLAM EVANGELICAL CHRISTIAN IGLESIA NI KRISTO OTHER CHRISTIAN OTHER/UNSPECIFIED

80.9% 5% 2.8% 2.3% 6.5% 2.5%

THE HOW TO’S OF PHILIPPINES HOW TO GET IN – VISA REQUIREMENTS All tourists wishing to stay longer than 21 days need a visa. The following are the minimum reuirements for a lyin a tem orary isitor’s visa: passport/travel document valid for at least 6 months beyond the intended period of stay in the Philippines; visa application forms; two passportsi e otos roof of bona fide status as tourist or businessman confirmed tic ets for return or on ward journey to t e ne t ort of destination and payment of visa fees.

Citizens of Brazil and Israel are allowed to enter the Philippines without a visa for a stay not exceeding 59 days.

In addition, citizens of Hong Kong and Macau are permitted to enter the Philippines without a visa for a stay not exceeding 14 days. Nationals from most other countries who are travelling to the Philippines for business and tourism purposes are allowed to enter the country without visas for a stay not exceeding 21 days.

Visit dfa.gov.ph for a complete list and more information.

HOW TO BUY PROPERTY Foreigners cannot own land in the Philippines (unless married to a Filipino) but can purchase condominium units or apartments. Businessmen and other investors can enter into a contract with Filipino colleagues for part ownership and divide the property.

Purchasing a condominium or apartment in Philip-

ire a ualified ins ector or en ineer to ins ect t e ro erty’s structure

4 Submit a formal offer letter, taking into consideration the results of the inspection, which is signed by both the buyer and seller (created by your attorney).

5

ontact t e and Aut ority for an official itle Deed search to be sure the property does not have any liens or monies owing and is free for sale/purchase.

6 Close the sale with a formal purchase agreement and submit to the Land Authority for approval (may take 6–8 weeks).

HOW TO APPLY FOR A MORTGAGE Paying cash for property is preferable for foreigners as lendin criteria is somew at subject and can vary bank to bank. It is best to deal with a bank where you have a long history or take the time to get into a bank and create a history of accounts and borrowin and re ayin smaller loans first When it comes time to apply for a mortgage, pay a larger down payment on the property than is required/expected.

HOW TO OPEN A BANK ACCOUNT Generally a minimum deposit will be required, which varies from bank to bank. Documents required to open an account include passport, residency permit (or temporary stay permit), and, in some cases, a letter from an employer or sponsor. ome of t e major ban s in ndonesia include Bank of America, Standard Chartered Bank, Bank of the Philippine Islands, Citibank, Metrobank, HSBC, and Rizal Commercial Banking Corporation.

TRANSPORTATION AIR Air transportation is the primary way to enter the ili ines e country’s main international ate way is anila’s Ninoy Aquino International Airport (www.manila-airport.net) and, to a lesser extent, Clark International Airport (www.dmia.ph) located in a former US military base in Pampanga.

Flag carrier Philippine Airlines (www1.philippineairlines.com/ ies re ularly from anila to many regional airports across the archipelago, including Cebu, Davao, Gen. Santos, Iloilo, Kalibo and Tagbilaran. In addition, the airline has regular sc eduled i ts to cities across Asia Oceania and North America, including Hong Kong, Singapore, an o uala um ur eijin a arta ali en pasar, Tokyo, Osaka, Seoul, Melbourne, Sydney, San Francisco, Los Angeles, Toronto and Vancouver. n addition many ot er airlines y to anila from t eir res ecti e ubs includin Air ina eijin at ay acific on on ina Airlines ai ei China Southern (Guangzhou), Delta (Detroit), Emirates (Dubai), Etihad (Abu Dhabi), Japan Airlines (Tokyo-Narita), KLM (Amsterdam), Korean Air (Seoul), Malaysia Airlines (Kuala Lumpur), Qantas (Sydney and Brisbane), Qatar Airways (Doha), Singapore Airlines (Singapore), and Thai Airways International (Bangkok).

Other regional airports that also have international i ts include Mactan International in Cebu and Francisco Bangoy International in Davao City.

Regional airports also serve Laoag City, Kalibo (near the island resort of Boracay), Bacolod, Iloilo,

and Cagayan de Oro city, among others.

LAND About one-third of roads in the Philippines are paved. Car rental is available, which is best organised with a reputable agency or through your hotel. Driver licence issued abroad can be used for up to 90 days.

BUS/JEEPNEY Buses operate throughout the country and are the best bet for longer distances.

Another form of popular transportation in the Phili ines is t e jee ney or just jee ’ w ic carry between 16 and 30 passengers and may or may not be air conditioned e jee ney e ol ed from t e sur lus of jee s left by Americans after the war.

TAXI Traditional taxis, regulated by law, have yellow-coloured licence plates, taxi signs, a registration number and a meter, which is mandatory.

Note: With any taxi service, insist that the meter is used, always carry spare coins so that you do not overpay a driver who claims he/she has no change, and ask the driver to repeat your destination to ensure you are going to the right place.

RAIL Three metro lines serve the Metro Manila area e first line called as stations from Pasay City in the south to Quezon City in the north and runs 20 kilometres over fully elevated track along Taft and Rizal Avenues in Manila towards EDSA in Quezon City. The second line has 11 stations and runs from Recto Avenue in downtown Manila to Pasig City in the eastern fringes of the metropolis. The third line has 13 stations that runs o er A etro anila’s main t orou fare

MAJOR HOLIDAYS JAN 1

New Year’s Day

APR 9

Araw ng Kagitingan (Day of Valor)

MAR 28

Maundy Thursday

MAR 29

Good Friday

MAY 1

Labour Day

JUN 12

Independence Day

AUG 8

Eid al-Fitr (End of Ramadan)

AUG 27

National Heroes Day

OCT 15

Eidul Adha (Feast of the Sacrifice)

NOV 1

All Saints’ Day

NOV 30

Bonifacio Day

DEC 25

Christmas Day

DEC 30

Rizal Day

DEC 31

New Year’s Eve Dates for 2013

HEALTH HEALTH CARE There is a national healthcare coverage for Filipinos, which is available to foreigners for a fee. Coverage and services are good and improving, and many doctors and nurses have been trained in the USA. Top Philippine hospitals include the Makati Medical Center, Asian Hospital and Medical Center, e edical ity and t u e’s edical enter HEALTH RISKS The following are the most common diseases in the Philippines: malaria, dengue fever, Japanese encephalitis, cholera, diarrhoeal diseases, and leptospirosis.

Travellers to the Philippines are advised to have their routine vaccination (MMR, DPT and poliovirus) up-to-date, in addition to getting vaccinated against hepatitis A and B, typhoid, Japanese encephalitis, and rabies (the latter for people who will come in close contact with animals).

For more information, visit wwwnc.cdc.gov/travel/ destinations/philippines.htm

91

COUNTRYGUIDE FEBRUARY - MARCH 2013

SINGAPORE STATISTICS OFFICIAL NAME

Republic of Singapore

CAPITAL CITY

Singapore

POPULATION

5,353,494 (July 2012 est.)

TIME ZONE

UTC +8

CURRENCY

Singapore dollar

GOVERNMENT

Parliamentary Republic

REGION

South-East Asia

OFFICIAL LANGUAGES

English, Mandarin, Malay, Tamil

LAND AREA

687 sq km

WATER AREA

10 sq km

HOW TO BUY PROPERTY There are two types of properties foreigners can purchase in Singapore: non-restricted and restricted. Restricted properties are those that require approval from the government, which may include land, landed properties and Housing Development oard ats e esidential ro erty Act however, regulates all foreign ownership in Singapore. It allows foreigners to purchase apartments in non-condominium developments without the need of government approval.

To obtain approval to purchase land or landed properties, a form is available for download at the Singapore Land Authority website (www.sla.gov.sg).

In order to protect your interests, engage the services of a professional estate agent or specialty attorney.

PROPERTY BASICS AVERAGE PRICE/SQUARE METRE

US$16,350

RENT PER MONTH (for a 120-sqm apartment)

US$4,817

RENTAL YIELD

2.95%

SOURCE GLOBAL PROPERTY GUIDE

ri en by an efficient le al system im eccable infrastructure and strong and stable economy, in a ore’s ro erty mar et is amon t e world’s priciest. According to Knight Frank, the value of real estate in Singapore surged 50.5% from the last quarter of 2006 to the same period in 2011.

1 Option to purchase agreement requires 1% of the purchase price and is usually prepared by t e seller’s a ent or attorney is a reement allows 14 days consideration before proceeding with the purchase.

2 Offer to purchase agreement is prepared by t e buyer’s a ent or attorney and is an alterna tive to the option to purchase agreement.

ELECTRICITY

230 V/50 Hz (Type G)

3 Inspections are stated in the option to purchase agreement which allows the buyer to have a professional inspection of the property before completing the sale.

CLIMATE

Tropical

4

CULTURES/ETHNICITIES (2004 est.)

CHINESE MALAY INDIAN OTHER

77.3 14.1% 7.3% 1.4%

RELIGIONS (2010 census) BUDDHISM ISLAM TAOISM CHRISTIANITY NONE OTHER

33.3% 14.7% 10.9% 18.3% 14.5% 0.7%

EXPATS Approximately 1.45 million expats live in Singapore. Expats are generally welcomed in this very multi-cultural society. There are a large number of expats (sixth highest percentage in the world) and many who come to Singapore on an employment contract from another country and for a set period of time, such as 2 or 5 years. Some of these make no effort to understand the local culture and therefore give other expats a bad rap. Caucasian expats are referred to as An o’ w ic literally means red hair or skin. This is a harmless term generally meant with no offence, although may be used on occasion by older Singaporeans out of frustration with ill-mannered foreigners.

THE HOW TO’S OF SINGAPORE HOW TO GET IN – VISA REQUIREMENTS All travellers need a passport valid for at least 6 months following the departure date from Singapore. Passports must have blank visa pages. It is also ad isable to confirm w et er a transit isa is required for any connections.

Visitors from the following countries will require a visa: Afghanistan, Algeria, Bangladesh, Armenia, A erbaijan elarus a a stan yr y stan ol do a ussia aji istan ur menistan raine bekistan, Egypt, Georgia, India, Iran, Iraq, Jordan, Lebanon, Libya, Morocco, Myanmar, Nigeria, China, Pakistan, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, Yemen and Palestine.

Visit www.ica.gov.sg/ for more details.

92

lose of sale is under t e jurisdiction of t e at torneys and usually takes eight to ten weeks to complete. Statement letter which outlines the proof of payment for the property.

HOW TO APPLY FOR A MORTGAGE The Monetary Authority of Singapore approves banks authorized to issue mortgages. It is helpful, although not necessarily required, to be a permanent resident of Singapore, if not a citizen. The average loan to foreigners covers 70–80% of the purchase price. Banks that offer mortgages include HSBC, Standard Chartered, Maybank, Bank of China, BEA, UOB, OCBC, POSB, DBS, Citibank, Lloyds TSB, Hong Leong Finance.

HOW TO OPEN A BANK ACCOUNT Opening a bank account in Singapore as a forei ner is jaw dro in ly easy es ecially is usin a private bank. Simply provide a passport and the minimum funds as re uired by t e ban and fill out the necessary forms. ATM cards and internet banking registration is provided on the spot

TRANSPORTATION AIR in a ore’s Changi International Airport (www. changiairport.com) is a world-class airport and one of out ast Asia’s main a iation ub t as t ree main terminals and a fourth one that caters primarily to low-cost carriers.

In 2011, the airport handled 46.5 million passeners ma in it t e world’s se ent busiest and Asia’s second after on on in terms of inter national assen er traffic t also ser es as an im ortant sto o er oint for i ts on t e an aroo oute’ between Australia and uro e More than 100 airlines operate about 6,100 weekly i ts in an i Air ort connectin in a ore to over 220 cities in about 60 countries and territories worldwide ese include at ay acific antas AirAsia, JetStar Asia, China Airlines, Thai Airways International, Lufthansa, Delta Airlines, Silk Air, Philippine Airlines, Emirates, British Airways, Finnair, KLM, and Air France, among others.

Flag carrier Singapore Airlines (www.singaporeair.com ies to o er destinations worldwide including New York, London, Sydney, Bangkok,

eijin elbourne ilan anc ester unic Frankfurt, Tokyo, São Paulo, Rome, Seoul and Shanghai, among others.

LAND Transportation in the island state of Singapore is extremely easy. The roads are modern, paved and well posted. Buses, taxis, trains abound and take you anywhere on the island, or beyong.

The Land Transit Authority of Singapore regulates buses, taxis and trains. www.lta.gov.sg.

BUS Buses compliment the rail system. Falling under the designation SMRT, taking a bus is easy.

Either purchase a travel card at an MRT station (subway or metro stations) called EZ Link, or simply pay in change when boarding the bus. Tell the bus driver (most of whom speak English) where you are headed and he or she will tell you the fare. Bus stops are everywhere and well posted.

TAXI There are several taxi companies in Singapore. Some are under the LTA of Singapore and ot ers are from ri ate com anies ey’re all good, safe and reliable. The fares are generally reasonable but you will incur different charges for peak/off peak hours as well as different fares for callin for a ta i a in one down or waitin for one at a designated taxi stand.

Catching a taxi between the hours of 4 and 5pm is ery difficult as it is c an e o er time’ for t e dri ers w o all ead bac to t e com any ara e fill up with petrol and wash their vehicles. Peak hours, which are generally before and after work and wee end e enin s are also more difficult times to catch taxis.

Note: With any taxi service, insist that the meter is used, always carry spare coins so that you do not overpay a driver who claims he/she has no change, and ask the driver to repeat your destination to ensure you are going to the right place.

RAIL Served by both light rail and mass transit trains in a ore’s island nation is ery well con nected. Referred to as the MRT, there are stations everywhere, with more and more under construction. To ride the rails, purchase a ticket at any station for a one-off destination or an EZLink card for multiple travels by bus, train or even taxi.

MAJOR HOLIDAYS JAN 1

New Year’s Day

FEB 11

Chinese New Year

MAR 29

Good Friday

MAY 1

Labour Day

MAY 5

Vesak Day

AUG 9

National Day

AUG 8

Hari Raya Puasa

OCT 15

Hari Raya Haji

NOV 3

Deepavali

DEC 25

Christmas Day Dates for 2013

HEALTH HEALTH CARE The quality of health care in Singapore is excellent, with many government-run clinics and privately owned hospitals. Insurance is available to expats through many organisations and is recommended, as the cost of health care is high. Reputable hospitals include Changi General, National University Hospital and Singapore General.

HEALTH RISKS Mosquito-borne diseases such as dengue fever and chikungunya are common Singapore, especially during the rainy season.

Before going to Singapore, travellers are advised to have their routine vaccination (MMR, DPT and poliovirus) up-to-date.

COUNTRYGUIDE FEBRUARY - MARCH 2013

THAILAND STATISTICS OFFICIAL NAME

Kingdom of Thailand

CAPITAL CITY

Bangkok

POPULATION

67,091,089 (July 2012 est.)

TIME ZONE

UTC +7

CURRENCY

Thai baht

GOVERNMENT

Constitutional monarchy

REGION

South-East Asia

OFFICIAL LANGUAGE

Thai

LAND AREA

510,890 sq km

WATER AREA

2,230 sq km

PROPERTY BASICS AVERAGE PRICE/SQUARE METRE

US$2,996

RENT PER MONTH (for a 120-sqm apartment)

US$1,957

RENTAL YIELD

6.53%

SOURCE GLOBAL PROPERTY GUIDE ELECTRICITY

230 V/50 Hz (Type A, B, C)

CLIMATE

Tropical; rainy, warm, cloudy, southwest monsoon (mid-May to September); dry, cool, north-east monsoon (November to mid-March); southern isthmus always hot and humit

CULTURES/ETHNICITIES (2000 Census) THAI CHINESE OTHER

75% 14% 11%

RELIGIONS (2010 census) BUDDHISM official ISLAM CHRISTIANITY OTHER

94.6% 4.6% 078% 0.1%

EXPATS 0.5% of the population are expatriates, or 350,000.

Expat acceptance in the local culture is very high, es ecially considerin t at muc of ailand’s in come is derived from tourism.

THE HOW TO’S OF THAILAND HOW TO GET IN – VISA REQUIREMENTS All travellers need a passport valid for at least 90 days following the departure date from Thailand; owe er mont s’ alidity is stron ly recom mended.

Passports must have blank visa pages. It is also adisable to confirm w et er a transit isa is re uired for any connections.

Citizens from the ASEAN countries, plus Australia, Canada, Hong Kong, Japan, Russia, the USA and most EU countries do not need a visa to visit Thailand on holiday for 30 days or less. Citizens of South Korea, Brazil, Chile and Peru have up to 90 days.

Visa on Arrival (VOA) is available to citizens of Bhutan, China, Cyprus, Czech Republic, Estonia, Hungary, India, Kazakhstan, Latvia, Lichtenstein, Lithuania, Maldives, Mauritius, Oman, Poland, Russia, Saudi Arabia, Slovakia, Slovenia, Uzbekistan, Ukraine, Ethiopia, Taiwan, Bulgaria, Andorra, Malta, Romania, San Marino. lease c ec wit t e ai isa aut ority for erifi cation at www.immigration.go.th/ HOW TO BUY PROPERTY Foreigners cannot purchase land, but the structure upon the land can be secured as leasehold. As always find e ert local assistance wit a real estate agent and/or specialist attorney.

There are three ways to purchase property in Thailand: (1) Purchase a leasehold villa/condo invest-

ment – foreigners get full interest on a lease for a s ecified amount of time (2) Purchase through a Thai Limited Liability company with several shareholders. (3) Marry a Thai local.

tional was reo ened in after a major facelift The airport now serves a number of low-cost carriers, including AirAsia and its subsidiaries Thai AirAsia and Indonesia AirAsia.

Purchasing property in Thailand is fairly straightforward and follows a similar outline to other countries.

LAND Transport in Thailand is varied and chaotic, with no one dominant means of travel. For long distances, buses dominate, and in rural areas and for short trips, motorbikes dominate. Cars are becoming increasingly popular, especially with tourists and expats, but the current system of roads has not yet caught up to the demand of drivers.

1 Make an offer. Allow your estate agent and/or attorney to do any negotiations.

2 Transfer the funds to purchase the property to a Thai bank account so that the bank can record t e transaction and issue a certificate called a Thor Thor 3, which indicates that t e funds transferred are s ecifically for t e purchase of the property. Thai residents can skip this step.

3 Through your attorney or estate agent, carry out a title search and land survey. This is required by law.

4

ire a certified land asset aluation firm or engineer to inspect the property for structural requirements, including plumbing and electricity.

5 Based on the results of the title search, land survey and inspection, negotiate the price and any work to be done before purchase.

6 Sign a contract to purchase the property, along with the seller.

HOW TO APPLY FOR A MORTGAGE t’s better to buy ro erty in ailand usin cas as obtaining a mortgage is not available to foreigners unless married to a Thai citizen. If this is the case, then foreigners may receive up to 70% of the purchase price.

HOW TO OPEN A BANK ACCOUNT Opening a bank account in Thailand as a foreigner can be somewhat confusing, as some banks have subjecti e criteria A ass ort is always re uired as well as a minimum deposit (the amount will vary not only from bank to bank, but in some instances from bank representative to representative). Often, but not always, a work permit is necessary as well as a letter of reference from a Thai national and the bank in your home country where you hold an account.

BUS Buses are the most popular means of long distance travel in Thailand. Tour and VIP class coaches are luxurious, while city and economyclass buses are colourful. Local buses and Bangkok city buses come in various sizes, types, prices. Some have air conditioning and others open a window or possibly have a fan.

TAXI Traditional taxis are legally required to use the meter, although you may have to insist. There are an abundance of taxis in Bangkok and in other lar er cities so if you find one w o wants to c ar e a at fee usually si nificantly more e ensi e sim ly find anot er Note: With any taxi service, insist that the meter is used, always carry spare coins so that you do not overpay a driver who claims he/she has no change, and ask the driver to repeat your destination to ensure you are going to the right place.

RAIL Bangkok is the only city in Thailand with a metro and tour bus system. Taking the train to see the rest of the country, however, is a Thai experience worth the adventure, especially because Thailand has one of the best rail systems in the world, and it’s economically iable urc ase tic ets online for convenience. You can also buy tickets at any train station, and all tickets, except for third class, require a reservation.

MAJOR HOLIDAYS JAN 1

New Year’s Day

JAN 2

New Year’s Day Observed

FEB 5

Makha Bucha

APR 6

Chakri Day

APR 13–15

Songkran

(Note: Be sure to open the account at a branch with a convenient location because the branch where you open the account is the branch where you will need to visit for any questions or business matters.)

MAY 5/7

Coronation Day

MAY 24

Visakha Bucha

AUG 2

Asalha Bucha

AUG 12/13

The Queen’s Birthday

ome of t e major ban s in ailand include A Bank, Citibank, Bangkok Bank, Export-Import Bank, HSBC, Standard Chartered, and Union Overseas Bank

OCT 23

Chulalongkorn Day

DEC 5

The King’s Birthday

DEC 10

Constitution Day

DEC 31

New Year’s Eve

TRANSPORTATION AIR ailand’s main oint of entry is Bangkok’s Suvarnabhumi Airport (www.suvarnabhumiairport. com/detail_airline_information_en.php). Handling 47.9 million passengers in 2011, the airport is the si t busiest in Asia t is t e ub of t e country’s a carrier ai Airways nternational w ere it as re ular sc eduled i ts to destinations in countries. Other carriers that operate from the airport are Bangkok Airways and Orient Thai Airlines. umerous airlines y from t eir res ecti e ubs to t e air ort includin Aero ot oscow Air ina eijin Air rance aris ritis Airways on don at ay acific on on ina Airlines (Taipei), Emirates (Dubai), Garuda Indonesia (Jakarta), and KLM (Amsterdam), Qatar Airways (Doha), and Qantas (Sydney), among others. an o ’s older air ort Don Mueang Interna-

Dates for 2013

HEALTH HEALTH CARE Alt ou t e country’s ealt care system as im ro ed si nificantly o er t e ast years t ere is still more to do. Thais do not do particularly well in comparisons to other nationalities, such as Singaporeans or Malaysians. Better-off patients are likely to use one of the 450 private hospitals in Thailand.

HEALTH RISKS The following are the most common diseases in Thailand:malaria, dengue fever, Japanese encephalitis, cholera, diarrhoeal diseases, and leptospirosis.

Travellers to the Thailand are advised to have their routine vaccination (MMR, DPT and poliovirus) upto-date, in addition to hepatitis A and B, typhoid, Japanese encephalitis, and rabies.

For more information, visit wwwnc.cdc.gov/travel/ destinations/thailand.htm

93

COUNTRYGUIDE FEBRUARY - MARCH 2013

Most notably about the Vietnamese property market, however, is that the sales are conducted by the price of gold.

VIETNAM STATISTICS OFFICIAL NAME

Socialist Republic of Vietnam

CAPITAL CITY

Hanoi

POPULATION

87,840,000 (July 2011 est.)

TIME ZONE

UTC +7

CURRENCY

Vietnamese dong

GOVERNMENT

Marxist-Leninist single-party state

REGION

South-East Asia

OFFICIAL LANGUAGE

Vietnamese

LAND AREA

310, 070 sq km

WATER AREA

21,140 sq km

AVERAGE PRICE/SQUARE METRE

NA

RENT PER MONTH (for a 120-SQM apartment)

US$1,110

RENTAL YIELD

NA

SOURCE GLOBAL PROPERTY GUIDE

Accordin to ietnam’s ome rices a e been declining for some time. And with prices softening, residential buyers stay out of the market for the time being.

ELECTRICITY

220 V / 50 Hz (Type A, C and G)

CLIMATE

Tropical in south; monsoonal in north with hot, rainy season (May to September) and warm, dry season (October to March)

CULTURES/ETHNICITIES (1999 Census) TAY THAI MUONG

85.7% 1.9% 1.8% 1.5%

1.5% 1.2% 1.1% 5.3%

KHMER MONG NUNG OTHERS

RELIGIONS (2010 census) BUDDHIST ISLAM TAOIST/DAOIST CHRISTIAN NONE OTHER

This is changing, however, as demand is on the rise, and banks in Vietnam are already exceeding their quotas for property lending (2012) in order to meet the current demand. Forecasts put the annual growth in the home loan market at 15% per year for the next several years.

Banks in Vietnam that offer mortgages include ACB, ANZ Bank, Citibank, Standard Chartered, and Vitecombank.

PROPERTY BASICS

KINH (VIET)

HOW TO APPLY FOR A MORTGAGE Mortgages in Vietnam are uncommon, especially as the land belongs to the people and is regulated by the state. Most foreign banks give out mortgages, but only up to about 50%, which is quite low to the 70–90% lending ratios in more developed nations.

33.3% 14.7% 10.9% 18.3% 14.5% 0.7%

EXPATS 0.8% of population, or 74,000

THE HOW TO’S OF VIETNAM HOW TO GET IN – VISA REQUIREMENTS Citizens of ASEAN-member countries can visit Vietnam without a visa if planning on staying for 30 days or less. Nationals of South Korea, Japan, Russia, Norway, Sweden, Denmark and Finland do not require a visa if staying for less than 15 days.

All other nationals must obtain a visa before departure or upon arrival. Passports must have at least mont s’ alidity lus you will need two passport-sized photos and cash (US dollars) for the stamping fees.

Please check with the Vietnamese visa authority for erification at www ietnamembassy n

HOW TO OPEN A BANK ACCOUNT Opening a bank account in Vietnam as a foreigner is surprisingly easy. Most banks require little more than a passport and completed application. In many cases, applications for bank account can be submitted online.

Some of the major banks in Vietnam include: ACB ANZ Bank Citibank Shinhan Vietnam Bank

Standard Chartered Techcombank Vietcombank

TRANSPORTATION AIR Serving almost 12 million passengers in 2011, Ho i in ity’s Tan Son Nhat International Airport is ietnam’s main international ateway la carrier Vietnam Airlines (www.vietnamairlines. com ies from ere to many cities in t e Asia acific e ion includin an o a arta uala Lumpur, Melbourne, Sydney, Hong Kong, Seoul, Shanghai, Singapore, Taipei and Tokyo, and several cities in Europe, such as London, Paris, Frankfurt and oscow e airline also co ers t e majority of domestic routes in Vietnam. n addition se eral airlines y from t eir res ecti e hubs to Ho Chi Minh City, which include Air China eijin Aero ot oscow Air rance aris A A o yo arita at ay acific on Kong), China Eastern (Shanghai-Pudong), China Southern (Guangzhou), Emirates (Dubai), Japan Airlines (Tokyo-Narita), Korean Air (Seoul), Lufthansa (Frankfurt), Malaysia Airlines (Kuala Lumpur), Philippine Airlines (Manila), Qatar Airways (Doha), Singapore Airlines (Singapore), Thai Airways International (Bangkok) and Turkish Air (Istanbul). anoi’s Noi Ban International Airport is the country’s major ateway in t e nort ietnam Airlines as re ular sc eduled i ts from ere to many cities across the world, including Bangkok, eijin ran furt on on uala um ur on don, Moscow, Paris, Seoul, Shanghai, Singapore and Tokyo.

BUS It the most popular mode of transport for travellers in Vietnam, as it is extremely inexpensive. There are plenty of long-distance bus services t at connect t e major cities owe er buses are often not air-conditioned (check when booking), are slow o ercrowded and subject to t e condi tions of the roads, which are not excellent. Innercity buses are in better shape and can take you between destinations within the city. There are also an ample amount of tour buses, which charge very little because they make a commission on the places where you shop as you go.

TAXI Select only accredited taxi services in the major cities of ietnam or ris bein ta en for a ride’ w en it comes to t e fare enerally amon the reputable taxi providers, the service is safe, comfortable and reasonably priced.

Motorcycle taxis called xe ôm (literally ‘hugging e icle’ are widely used by locals and tourists e firm wit ricin as you will li ely be arassed for extra fares. Note: With any taxi service, insist that the meter is used, always carry spare coins so that you do not overpay a driver who claims he/she has no change, and ask the driver to repeat your destination to ensure you are going to the right place.

RAIL Probably the best way to see the landscape of Vietnam is through rail travel. Safe, comfortable and affordable – not to mention air-conditioned – rail is the ideal mode of transport for Vietnam. e ort out eunification ine tra els t rou Hanoi, Hue, Danang, Nha Trang and Saigon (and bac lee er cars are a ailable for lon journeys as well as restaurant cars. The views are spectacular, to say the least.

MAJOR HOLIDAYS JAN 1

New Year’s Day

FEB 9-14

Tet Nguyen Dan/Vietnamese New Year, loosely translated as the Feast of the First Morning, also known as Tet. The most important holiday of the year.

MAR 31

Gio to Hung Vuong Day, commemorating the mythical Hung Kings.

APR 30

Ngay thong nhat, Vietnam Victory Day Liberation Day, marking the day with the North Vietnamese captured Saigon (Ho Chi Minh City). Also known as the ‘Fall of Saigon’.

MAY 1

Ngay Quoc te Lao dong, International Labour Day

SEPT 2

National Day, to mark the formation of the Democratic Republic of Vietnam (North Vietnam) Dates for 2013

HEALTH HEALTH CARE Vietnam is working with the Thai government in order to improve its healthcare delivery services.

Currently, there is no real national healthcare coverage in Vietnam, which means private clinics and hospitals are even more important. The quality of health care is generally regarded as good, although the services still need drastic improvement.

Hospitals in Vietnam that primarily cater to expats include International SOS and Columbia Asia International Clinic.

HOW TO BUY PROPERTY In Vietnam, all land is collectively owned and regulated by the state. This means that no one – neither foreigners nor locals – may own land. Foreigners can buy a residence and lease the land from the government, and resident foreigners can purchase homes, but may not sublet them.

urt ermore Aero ot ina out ern ina ast ern, China Airlines, Japan Airlines, Korean Air, Malaysia Airlines, Qatar Airways, Thai Airways International and in a ore Airlines a e re ular i ts to Hanoi from their respective hubs.

A foreign investor may also invest in Vietnamese ro erty by formin a com any or a joint enture company with a local partner.

Other regional, smaller airports serve Da Nang and Hue.

HEALTH RISKS The following are the most common diseases in Vietnam: malaria, dengue fever, Japanese encephalitis, cholera, diarrhoeal diseases, and leptospirosis.

LAND An international driver licence is not accepted in Vietnam. Renting a car is also quite unusual, but possible, especially if you arrange a driver with the car. Road condition in Vietnam is sub-par, and there is no such thing as courtesy on the roads.

For more information, visit wwwnc.cdc.gov/travel/ destinations/vietnam.htm

However the leading foreign estate agency in Vietnam, Chesterton, is offering a 50-year lease, which gives the buyer many of the rights of ownership.

94

Travellers to the Vietnam are advised to have their routine vaccination (MMR, DPT and poliovirus) upto-date, in addition to hepatitis A and B, typhoid, Japanese encephalitis, and rabies.

FEATURE FEB R UA R Y — M A RC H 2 0 1 3

Japanese Casual Dining in the Heart of Singapore

W Kuriya Penthouse is located at #12-02 Orchard Central, 181 Orchard Road, Singapore.

For reservations call +65 6509 4222 or visit www.kuriyapenthouse.com.sg.

hen Kuriya Penthouse opened 3 years ago, it pioneered the well-loved Japanese fine-dining style of Omakase (which means” I’ll leave it up to you”). Over the years, it has shifted towards a more casual dining ambience without compromising its policy of serving high-quality authentic Japanese cuisine that Master Chef Koezuka is well known for.

Nowadays, Kuriya Penthouse offers a relaxing, casual-dining place for people who enjoy doing business while having good food, as well as savvy young couples in search for that roof-top dining experience in a place that offers a distinctive cityscape.

If you haven’t yet visited Kuriya Penthouse, drop by for lunch first. It serves more than 30 kinds of lunch sets starting from S$36. Must-try items include the Shokado Sets, one of which is the Shokado “Tsubaki” (S$42), a sumptuous assortment of sushi, miso soup, starter, steamed egg custard, Bento box with four compartments filled with assorted appetizer, sashimi, grilled item and tempura, and dessert of the day and coffee.

For dinner, there’s the Chef’s Recommendation Course, which is a monthly prefixed dinner course comprising a combination of dishes chosen by the Master Chef and using only the freshest seasonal ingredients. This February, the course menu of-

fers a very rare Noresore (baby conger eel) with Ponzu citrus sauce and seasonal Hotaru Ika (baby squid) with vinegared miso. In March, Kuriya Penthouse will have its Crab promotion, where customers can indulge in Taraba Gani (King Crab) and Zuwai Gani (Snow Crab).

For the grilled item, you can always opt for Kuriya Penthouse’s specialty, Saga Wagyu Beef, which you can grill the beef on a hot stone by yourself. Saga Wagyu is a premium beef from Saga Prefecture in Kyushu, Japan, and in 2012 Kuriya Penthouse was appointed the officially certified restaurant in Singapore to serve this famed beef.

In addition to Saga Wagyu, Kuriya Penthouse also brings in fresh seasonal fish and vegetables air-flown directly from Japan through its own buying office. Thus, quality is high and prices are reasonable. Today’s catches and air-flown items are displayed at the sushi counter for customers selection.

These selected fish can be prepared in any style you prefer. The must-try fish in February and March is Kinki (Japanese rock fish) which is fattier and sweeter in this season.

A wide variety of sake, wine, champagne and cocktails to go well with the dishes, and a good selection of cigars are also available.

The entire premises including its outdoor terrace can be rented for private and corporate closed-door events. It is an ideal venue to hold a party for 40 to 60 persons.

(All prices are subject to 10% service charge and 7% GST.)

95

JAMES E. HARRISON Harrison is the Commercial & Finance Officer at Panashco Media, publisher’s of Property Life magazine.

Holiday home

investments

Rental income while having fun – or the small business you never intended to own?

I

f you read my previous article, ‘Why invest in property’, then you are familiar with the story so far and evidently determined to use your spare cash and earnings to buy property as an investment.

As you might have guessed, simply having the funds to make a property purchase is not enough to guarantee a return on investment. To make sure your investment is a sound one, you need to decide what kind of investment to make and what you intend to get out of it. To that end, there are a few key questions that you need to ask your inner investor.

1 Will this be an investment purely for the sake of an income or return on investment?

Here’s an example: golf resorts have excellent year-round rental and will often take care of everything for you. But their fees for condo association, property management and rental commission could well eat up all of your rental income. If you finance your purchase instead of paying cash, this may very well mean you won’t earn enough to pay the mortgage.

However, there is some good news. Let’s say that you do own a holiday rental property on a golf course, then you get to take your family and friends on holiday as much as you like in the off-season.

While that is good news, it might just get even better: would you have taken that holiday even if you didn’t own that holiday property?

If so, then don’t forget to factor this cost into your income/debt scenario for your investment. In other words: Rental income – Operating, maintenance costs, loan payments, fees + Accommodation fees for holidays = Your profit (hopefully).

For an investment property that is not located on a resort with built-in management options, you will need to hire a property management professional, especially if you live far from your investment.

This begs the next question.

If yes, then consider an investment property with options for (a) long-term tenancy or (b) short-term, back-to-back tenancy (e.g. student accommodation).

This may include an apartment or house-and-land package in any location where people need to live, work, go to school or raise a family. In and around city centres and suburbs often provide a decent pool of potential tenants. Examine the rental market carefully. In order to cast the widest net possible, have a look at the type of housing 4 Are you prepared for the business and locations that the majority of tenants are looking for. of owning an investment property?

Managing a holiday rental investment is a business. So unless you plan on spending your free evenings and weekends cleaning, repair2 Or are you looking to get some fun out of it?

If you want to receive a return on your investment and have the op- ing, greeting tenants, prospecting tenants and researching their tion for using the property for your own merry-making, then here’s backgrounds/credit histories, collecting rent, filing taxes, mitigating the option for you: (a) holiday rental investment, or (b) second home. tenancy issues, filling out insurance forms, calling plumbers, electriA holiday rental is an investment property in a destination where cians, satellite/cable TV repair men, you’ll need some help.

Management fees will be somewhere between 4% and 12% of the you and other people like you (your potential tenants) will want to visit, such as a beach or golf resort, an exciting cosmopolitan city or income earned from rent, so let’s use 8% as an average standard fee.

Then again, there will always be some extras, so let’s take 10% as a unique cultural attraction.

The only difference between a holiday rental investment and a round, conservative estimate.

Operating costs of an investment property don’t end at a cleaning second home is the amount of time you spend in the property, and whether or how often you rent it out. Spending a few weeks there service or management company, unfortunately. On top of the 10% sounds more like a holiday home, whereas you might spend several estimate I just mentioned, you still need to factor in: (a) condo fees, months each year in your second home, perhaps renting it out when co-op fees or other ground fees (where applicable); (b) insurance fees (always applicable); (c) fixture and fitting replacements (in addition not in use (or not at all). to standard maintenance and repairs); and (d) taxes (sigh).

If you do your homework, run the numbers, and are still convinced 3 Just how much time do you have to devote to that investment property is your destiny, then I’ve done my job. So management, maintenance and occupier prospection?

If you were just thinking that a holiday rental or second home is your with that, I will leave you with one, final piece of advice: Get yourself the best financial advisor or accountant you can afkind of investment, know this first: the more complicated your property interaction means (a) more time spent managing the property ford. The money you spend on his or her fees will increase the money yourself or (b) a higher percentage of income to pay for professionals you earn from rental income, or at a minimum, save you money on fees and taxes. to manage the property on your behalf.

96

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