Thai Real Estate Investment Soared On Back Of Property Fund Activity

KTAM Aims to Become Thailand’s Leading Property Fund,Increasing Assets Under Management to 11.3 Billion

The Bangkok Post reported on Thursday, 22 February that real estate investment in Thailand soared by 81.8 percent to $2 billion (1.3 billion)in 2012, nearly double the $1.1 billion (720 million) in 2011, as property funds markedly increased their investment activity.

According to property consultant DTZ, Thailand’s real estate market was boosted by the listing of major property funds and a high number of acquisitions, particularly in the office and hotel sectors. Some $1.1 billion (720 million), or 55 percent of total real estate investment, came from transactions by real estate funds or public funds for public offerings (PFPOs).

Investment activity received a major boost from the listing of Tesco Lotus Retail Growth Freehold and Leasehold (TLGF) in the beginning of January 2012, which proved to bethe largest property fund listing for the year. The $594-million (389 million) fund purchased 17 Tesco Lotus shopping malls in prime locations across Thailand in a deal which by itself exceeded half of the real estate investments in the country in 2011.

Other notable property fund investments in 2012 included the purchase during the first quarter of three serviced apartment complexesand residences for $106 million (69 million) by the listed Land and Houses Freehold and Leasehold Property Fund (LHPF). Additionally, the Quality Houses Hotel and Residence Freehold and Leasehold Property Fund (QHHR) bought three Centre Point serviced apartments in the third quarter, for some $107 million (70 million).

KTAM Eyes Real Estate Market

Krung Thai Asset Management (KTAM) has the ambition to lead the market in property funds and,more specifically, to increase its assets under management by 20 percent in 2013 to 516 billion baht (11.3 billion), said chief executive officer Somchai Boonnamsiri, citing the positive overall investment climate.

The Bangkok Post reports that Thai billionaire Charoen Sirivadhanabhakdi plans to raise funds through the funds managed by KTAM, with the subsequent capital increase being dedicated to turning KTAM into the global leader of this type of fund.

KTAM is considering entering new markets including Mexico, Brazil and some European countries. Annualised return for short-term investments in these regions is forecast at 3.5 percent or about one percent higher than returns in the Thai domestic market.

The Thai fund intends to boost the capital of property funds under the direction Sirivadhanabhakdi’s TCC group to as high as 50 billion baht (1.1 billion) this year. The fund also plans to launch ETFs on the Stock Exchange of Thailand in sectors such as food, energy, ICT and the commercial sector.

2013 will be the last year in which Thailand’s Securities and Exchange Commission will allow investments in what has been known as property type 1, with introduction a new type of property fund, the internationally recognised real estate investment trust, set to replace the old structure.

Property Prices Stagnant But Not Dropping In Goa

While property prices in the country as a whole are tanking fast, real estate in Goa is presently stagnant, but are yet to go down significantly, say real estate developers. Over the last four years, Goa has attracted huge investments for holiday homes from overseas Goans, NRIs and wealthy North Indians.
Real estate operators say that property with a good sea view is always in demand. Earlier, though, properties in interior Goa with a reasonable proximity to a city were also in great demand, sending land prices soaring.

The big property boom started in 2003, and never stopped till the US-based Lehman Brothers went bankrupt late last year. For example, land prices in Panjim nearly doubled in the last year. Other places, too, have seen better-than 20 per cent annual increases.
Since October, though, real estate demand has dropped to half, owing to the global recession and statewide protests against mega-projects. This has stabilised property prices, which have reduced by a minor 5 to 10 per cent. However, the industry expects property prices to drop by 20 to 25 per cent in the coming months, especially from small developers, who are not in a position to hold on.
Many of these small developers are from Delhi and Mumbai. They joined the gold rush to develop property in Goa but have now run out of money and are left with unfinished projects, thanks to the credit crunch. They have been the first to drop rates and resort to panic sales.

Reputed developers are hurt badly, but still prefer to hold on. They feel the present slump is the result of panic, and since land with clear titles is scarce in Goa, the prices are bound to recover and stabilise, unlike in Indias big cities and metros. Consequently, even those who bought land at very high rates in the past few years are not willing to cut prices.

The next few months will tell whether they are right or wrong. Buyers, however, are very scarce at present.

So, one sees a paradoxical situation of sellers who are unwilling to drop prices, even though there are no takers for their properties. We will have to wait and see which one blinks first

Has Upswing Begun In Residential Property Prices

It is true that the upswing has begun in residential property prices in India. In fact, the real estate market in India has gone through a downward trend in the immediate past. The market has witnessed a slump. Property prices have gone down. In the metro centres of India like Mumbai, Delhi, Chennai and Calcutta, during the recession period property prices on an average property rates went down by 33 percent. This has adversely affected the real estate industry and several investment companies as well as infrastructural development companies have suffered losses. Many institutional as well as individual investors found it hard to sustain. However, the grip of the slump became less and less severe as the days and months elapsed. Now the industry is back in the saddle and reportedly the upswing in property prices has begun.

Of late, there is an upswing in the residential property prices in India. Across India, in the prime urban locations during the previous quarterly period the property industry has witnessed an average 10 per cent appreciation in property value. As a matter of fact, this growth in property value is not confined to residential property alone. The growth is discernible in the commercial property as well. However, the growth rate in the residential property segment is much more noticeable than that of the commercial, property sector. In the commercial property sector during the corresponding period the value appreciation is below 5 per cent. There is reportedly an unprecedented demand for middle-level income type of residential units. This upswing in the middle-income level residential property is due to the revised pay scale for government employees and a better paying private sector.

Across India there has begun an upswing at the prices of residential property in India . It is reported that in the property market in the major South Indian cities independent residential houses show better value appreciation than apartment units or flats. This may be due to the higher affordability of the corporate sector clientele in Bangalore, Hyderabad and Chennai. In Delhi and Calcutta the residential property sector shows an average 10 per cent growth in the previous quarter and the trend is expected to continue in the remaining part of the year. In the suburban centres in India, the demand for independent floors and villas is on the increase. A major market trend witnessed in the prime locations across India is that the demand for single and double bedroom housing units is on the increase. Market experts are of the view that there is a price increase of about 15 percent during the current fiscal for the middle-income level residential units and the trend is expected to continue inn the coming years.

Austria Property For Sale Flachau Ski Amade Resort

Austria, in modern times, has beautifully blended its cultural heritage with modern marvels in architecture. Visitors are often surprised to see the amount of amalgam contained in every modern city of Austria. Whether you buy property for business or personal use, Austria always remains the perfect place to relax. The Austrian Government has chosen to make changes to the laws regarding foreign nationals investing in property in the country. In fact these changes have not only helped to make the whole process streamlined but also much simpler.
Flachau is a lively Austrian alpine resort situated just 60kms south of Salzburg. It is home to the legendary downhill skier Hermann Maier, whos family still run the local ski school and hire shop. The resort lies at the very centre of the vast Ski Amade region which consists of an incredible 860kms of pistes all on the same lift pass.
The Flachau Ski Amade Resort is an exclusive development of 25 apartments due for completion winter 2011. All the apartments are built to the highest specification and each comes with either a balcony, roof terrace or garden. Apartments range from 48m2 one bedroom apartments right up to large 133m2, three bedroom apartments with huge roof terraces and excellent views down towards the village.
The apartments are situated right on the piste and just a short walk from the resort centre. There is a communal playground for the kids, underground parking, cable TV and wi-fi throughout. The key features of apartments are: Prices from just 189,000, Ski-in Ski-out, Close to resort centre, Part of huge Ski Amade region, All apartments with balconies, terraces or gardens, No rental obligation and Just 40 minutes from Salzburg.
You will also find a large number of respected and reliable Austrian luxury real estate sales realtors who can help you in purchasing the perfect property in Austria. Whether you choose any of the great, elegant and magnificent villas or the chalets near ski resorts where you have complete fun with family during a break, or the great farm houses situated in the green lashing meadows, you get complete assistance from such real estate agents in your purchase.
Mark Warner Property has a wide range of property in Austria and the Austrian Alps for sale including properties and real estate in top Austrian ski resorts and other locations in Austria. Mark Warner Property offers luxury apartments for sale in Flachau featuring 1 or 3 bedrooms. If you want to explore Austria Property for sale , please visit the site

Progress In Preparing The Draft Condominium Statute

Progress in preparing the draft regulations under the Thailand Condominium Act amended in 2009 with the purchase and sale agreement is almost completed and will be presented to the meeting of the Council of Ministers (Cabinet) in August 2011. The essence of the contract will be to declare the act as another measure to protect consumers, which requires that any project or condominium units which will be open to the public for sale must be certified or approved by the Environment Impact Assessment Committee (EIA) and must have a valid license for construction.

The framework of this contract will provide fairness for the buyer. Many previous condominium projects were sold or booked but without passing the EIA assessment first which meant that there were many legal cases being brought against developers.

The legislation drafting committee has now approved Condominium Act law. Preliminary determination of the initial height from three stories up and the height of the building will be based on the building control act which regulates the rules or details already. Room sizes, for example, must have a minimum usage area of 20 square meters and a bathroom included. However, the editing of the various definitions will take a year to complete and make enforceable.

The new combined Bangkok city plans to include FAR (Floor Area Ratio) for land use along the metro system includes both open-for-business and under-construction projects and investment projects in the planning stages.

According to the combined Bangkok city plan which is considering updating and prepare to announced a new city plan enacted for 2012. By taking lessons and shortcomings of the previous land use plan for revision as well as the growth rate of both residential and commercial development including the number of people using the area as a key element in determining the future layout of urban development.

The consideration of the new Bangkok city plan will increase the use of land along the entire metro route which is currently in service and currently under construction according to master plan and investment plan.

This is because the demand for land along metro lines is high from both investors interested in investing in all types of commercial ventures including shopping centers and low-rise housing and high-rise housing especially in the inner city and central areas and the demand of living near working areas and shopping centers. The city of Bangkok will increase the FAR ratio or total building area per land area to be able to construct more on the same piece of land as 1-2 times.

Apart from that, areas in Bangkok inner city and Bangkok middle areas that have the overhead train can be able to develop more high-rises with land high prices and are likely to be considered worth the investment of further rail systems including Bangkoks outer areas stations.

However, BMA has planned to raise the ceiling of a maximum FAR10: 1 to FAR 15:1 especially in some of the red zone area such as some part of Silom will also increase In descending order according to their suitability and land use. increasing the FAR to 11:1, FAR 12:1, FAR 13:1, FAR 14:1 and FAR15: 1. However, it must depend on the city planning committee for approval.

Offset Rising Cost of Interest Rates by Claiming Property Depreciations

Property depreciation is defined as the decline in value of a building and its assets over the time due to wear and tear as well as physical deterioration. Depreciation on rental property or investment property is treated as an expense and is a part of the income statement. Actually property depreciation can be applied only to the building and not the land, since land is not considered to wear out over time.

Generally there are two types of costs that can depreciate for an investment property;

1. Wear and tear of the fixtures and fittings of a property. 2. Capital works deductions, which are applicable to the cost of the construction and are spread over the lifetime of the property.

One of the biggest advantages of property depreciation is that they are non-cash deductions. It means that you do not need to outlay funds for claiming the deductions. The Australian Taxation Office (ATO) allows you to claim the depreciation on rental property because they realize that the value of fixtures, fittings and other assets of a building reduce over time and will require replacement.

Claiming depreciation on rental property, will help you to offset the rising cost of interest rates. Just like you can claim wear and tear on the car you purchased, you can also claim property depreciation on your investment property.

Calculating property tax depreciation schedule is a complex task, which requires skill and experience in both construction costs and tax laws to generate an accurate report.

It’s important for property investors to at least investigate whether or not they are eligible to any tax deductions on their investment property. The easiest way to find out is to contact a reputable quantity surveying firm such as Property Returns, which specialises in preparing property tax depreciation report for residential as well as commercial properties. We will just ask you a few standard questions to ascertain whether it is worthwhile, and how much deductions you can claim. The fee to prepare a tax depreciation schedule is 100% tax deductible.

How much property depreciation you can claim?

The amount of property depreciation deductions you can claim depends on the four factors, mentioned below:

1. Plant Assets: The value of plant asset items bought with the property at settlement. 2. Building Allowance: The historical cost to build the original structural element of the property, note that this allowance is only applies to properties built after 1988. 3. The cost of any improvements like renovations or extensions on pre-purchase property to change the original structure by the previous owner. 4. The cost of any expenditure by the owner after settlement is considered as post purchase expenditure.

How Do Real Estate Investment Pros Find The Hidden Gems

If you’re new to real estate investing, you’re probably looking for “good deals”. But has anyone told you where to find them? If you belong to a local real estate investment club, you’re probably hearing story after story about the good deals that the seasoned investment pros find. But they never tell you the details of exactly how they found the deal.

Really, it’s not a mystery. The real estate investment pros are also expert networkers. The next time you have the opportunity, sit back and observe them for a while. Many of them are very unassuming and low key. But usually they’re always talking to someone.

One of their talents is that their conversations always somehow funnel into the topic of real estate. But stop to think about this for a moment and it’s not as tricky as it sounds. We’re surrounded by residential real estate almost everywhere we look. And for every one of those houses, there’s an owner and people who live in the house. That represents a large number of people who either own residential real estate, or who know someone who owns residential real estate.

Heres how the pros take advantage of that fact to turn conversations around to their favorite topic. For instance, think about getting your hair cut. How hard would it be to start a conversation about real estate values in the neighborhood? And from there, how hard would it be to toss out a casual question like, “I wonderis anyone getting ready to sell?”

If your barber or beautician has recently heard about someone thinking of selling, it’s usually just human nature for them to mention it in response to your question. Real estate investment pros always keep their eyes and ears open for relevant information. Always, and everywhere. (Even during conversations after the Sunday church service.)

The second most important thing that real estate investment pros do on a consistent basis is follow-up on the information. They don’t waste time waiting until the next day to make a phone call. They’ll make a call to their agent or their assistant almost immediately after they hear about the possibility of a property becoming available.

They get an address, name and phone number of the owner if possible. Or they’ll knock on the door of the house in question within an hour of hearing about it. They don’t waste time thinking about whether or not it might be a good deal. They take immediate action. They get the information they need that tells them exactly whether or not they should move forward. If the numbers work out, they write a contract on the spot, and have their newest “good deal”.

Barbados Luxury Condominiums – Attracting Wealthy Individuals

Barbados Luxury Condominiums are in great demand because Barbados has built an enviable reputation as the most attractive place to live and work in the Caribbean. The country has a vibrant economy, which operates in a very stable political and social setting, while excellent infrastructure and modern services are available across the island. It is no wonder that some of the wealthiest families in the world have built luxurious mansions on the islands shores, while many famous film-stars rent luxury condominiums or spend time in 5-star hotels like Sandy Lane Hotel every Winter. The attraction to Barbados is enhanced by the fact that these individuals can come and go without being hassled by the media or the locals. The weather is also beautiful during the Winter months, with temperatures ranging from 26 to 31 degrees Celsius in the day time and from 23 to 25 degrees Celsius at night. With the Atlantic Ocean on the eastern side of Barbados, there is always a cooling ocean breeze to moderate these temperatures even further.

High-net-worth individuals quite often open International Business Companies in Barbados so that they can purchase real estate in the name of their company. This makes it easier to transfer ownership when it is time to sell and realize a handsome appreciation on their real estate investment. They just sell the company, which owns the real estate. Another advantage of Barbados is that all capital-gains are exempt from taxes and taxes on income for I.B.C.s are extremely low (ranging from 2.5% to 1%).

Barbados Real Estate Provides Good Return On Investment

Barbadian real-estate investments have returned a consistent 8 10% per year for the last twenty years. In the last few years, three new golf-courses have been developed with luxurious villas and fairway homes. The latest of these golf clubs is Apes Hill Club, which has been carefully planned so that each resident may take maximum advantage of the view atop one of the islands highest ridges. Many of the lots on this course will allow residents the rare opportunity to view both the West Coast and the East coast of Barbados!
The most recent evolution in Barbados Real Estate development is the rapid expansion of Luxury Condominiums and luxury villas. New projects are being developed on both the West Coast and the South Coast of the island. These luxury condominium-developments have become very popular because they provide common services such as:

Privacy with 24-hour-a-day security-services within a gated community.
Full-service fitness-centres.
Global Concierge management service.
Swimming pool and/or tennis courts.

Other special interests like boating can be satisfied by choosing a development within a marina.

Barbados Luxury Condominiums The preferred Locations

The most popular location is still the beachfront properties on the West Coast, where you can find splendid luxury villas and unique Luxury Condominium developments like Portico, which has won international awards for innovation and world-class quality. Other attractive areas of development include the golf-courses such as Sandy Lane Country Club, Royal Westmoreland Country Club, Barbados Golf Club and the newest luxury properties, which are now available at Apes Hill Club. There are also very attractive luxury-villas being built for those who have a particular interest in Tennis or Polo. There are now several Polo Clubs on the island also, which include luxury villas and the usual gated-community services and amenities that would satisfy even the most discerning individuals.

Several new luxury condominium-developments are also being built on the South Coast of Barbados. With beachfront property becoming very scarce on the West Coast, the demand for beachfront property on the South Coast has been growing rapidly. Some new condominium-developments have recently been completed and are attracting prices over U.S. $900,000.00. The value of these residences will appreciate over the next few years as the few remaining beachfront sites on the South Coast are developed.

If you would like to learn more about some of these exciting Luxury developments in Barbados, you can visit my website on Barbados Luxury Condominiums.

Is Mortgage = Konut Kredisi (home Loan) In Turkey

Below is a list of important changes that are brought with the new mortgage law in Turkey:

New Mortgage Products
Before the mortgage law, it was only possible to lend home loans at fixed interest rates. The law introduced floating interest rates (or a combination of fixed and floating rates) as an additional mortgage type. In floating rate loans, the interest rate is determined from the sum of a fixed margin that is determined by the lender and the inflation rate as measured by the Consumer Price Index. This way banks do not have to face the interest rate risk on their own and may share the risk with the borrowers. In summer of 2007, some banks started to offer variable interest rate loans but so far there does not seem to be much interest in this new type of mortgages and more than 99.9% of the loans are still fixed-interest rate mortgages.

Tax Benefits
Before the law passed on March 2007, there were some plans about providing tax relief to borrowers, however, the only tax relief mortgage law provided was a minor 5 percent Banking Insurance Operating Tax (BSMV) exemption and abolishment of several other smaller operating fees. As an example, before the law passed a monthly mortgage interest rate of 1.30% would be actually 1.3965%. For a 10 year loan of 100,000 YTL, with BSMV exemption the new mortgage law reduced the monthly payment of 1,722 YTL to 1,650 YTL, about 4.2% reduction in the monthly payments.

Loan Length
Before the mortgage law, Turkish banks could offer only shot-term loans up to a few years. This had a very limiting effect on the real estate economy in Turkey. Because of short maturities and high interest rates, funding of houses was mainly done with savings (60+ percent) and relatives/friends (about 25 per cent). The home loans were only making less than 5 percent of the total housing funding.
With the new law in effect for about 6 months, this picture started to change dramatically. The introduction of the new Turkish mortgage law already made a few banks (e.g., HSBC, Sekerbank and Finansbank) give loans up to 30 years to finance. It is expected that the other lending institutions will offer similar mortgages in the near future as interest rates decrease further and demand for longer mortgages continue to increase.

Lending Institutions
Before the mortgage law, only deposit, investment and participation banks could issue home loans. Under the new law, however, consumer funding companies are able to issue home loans too. A few mortgage companies are in the process of starting their operations; it is likely that the growing competition will lower the interest rates, which are very high when compared to those of developed countries. Let’s also note that as these new lenders are allowed to invest in capital markets to create funds for the home loans, it is expected that the financial markets will develop and will have indirect positive effects on the rest of the economy.

Early Payment Fee
Before the law, there was no penalty for early payment of the loan, however, due to the pressures from the banks, the new mortgage law included a penalty up to 2% if borrower pays before due date. This early payment fee is only valid for the fixed-interest rate loans. There is no penalty for the adjustable interest rate loans; they can close their accounts any time without incurring a charge.

Securitization of Loans
With the new law, banks are now able to bundle the loans into securities creating covered bonds and mortgage backed securities. Covered mortgage bonds and mortgage backed securities are debt securities backed by cash flows from mortgages and let the banks eliminate or share the mortgage risk with the rest of the world in a secondary market. Let’s also note that Turkey’s sub-investment grade sovereign rating may not be a big problem in the making good deals in the secondary market as covered bonds typically get higher ratings than the sovereign ratings of the countries. Therefore we expect that the secondary mortgage market is likely to stimulate the growth in the mortgage market substantially and decrease the interest rates when it starts to operate in early 2008.

Kolkata Property Under Great Demand Of Investors

Kolkata is the most famous city in India. Kolkata is also called Cultural Capital of India it is now the major hub of IT sector in India. Kolkata is in top 5 tourism city in all over India. Day by day Kolkata commercial market is Increase Real Estate market of Kolkata is the in the boom because of price are competitively very less other then like Gurgaon, Noida, Pune, Mumbai ect.
Kolkata property economic growth only survives on the comfort ability of all the lessons of people in a civilization and what force them are the communications facilities. Kolkata Property is going through a demanding phase with numerous macroeconomic headwinds like poor for developers, augmented cost of building, less land prices, and low notice rates. These factors are keeping the home buyers present from the market. Kolkata property are like unitech fresco, Unitech Harmony, Godrej Prakriti, Realtech Gharoa, Realtech Maple Wood and many others all these property are located at the chief location of Kolkata Like Behala, Rajarhat, Garia, Barasat all these location is top allocation of Kolkata. Rajarhat is a planned township near International Airport and is touted to be the next IT hub of Kolkata.

Real estate Kolkata prices in South Kolkata are rapid on an uphill chart. The other areas that are experiencing high-quality increase are the new Rajarhat Township. Able to be seen cipher of the enlargement indications are the hike in property prices in these localities – rising up to Rs. 500 per sq ft in just a breadth of six months. The Kolkata property residential multifaceted provides the busy lives better security for expenditure carefree life for his or her exist become more & additional agreeable under the protection.

Most usually the resale flats in kolkata next to with Mumbai are under great demand of investors. As investing on the kolkata property allows the investors to find the same good facilities, amenities, property along with lavishness but priced half the price as other city property. So this way the investors are going to enjoy a great deal of investing on the most desired property meeting completely well with their pocket. So with making investment on the Kolkata property, the buyers dont have to go out of their budget rather they are going to enjoy extremely benefits. Kolkata property projects are in the price-range of INR available on all demanding prices with the great enjoying thing.