Thursday November 8 2007
China tightens foreign investment rules
China has released new rules to prohibit or limit foreign investment in key industries as it seeks to cool its overheated economy and clean up its damaged environment, state press reported Thursday.
In a wide-ranging directive published late Wednesday, China's key economic developmental agency identified sectors from real estate and financials to oil and rare metals as restricted or off limits to foreign capital.
Overseas investment that can help China to protect the environment, cut pollution and develop renewable energy will be encouraged, according to the National Development and Reform Commission statement.
"It should give a shot in the arm to efforts to save energy and protect the environment by encouraging greener use of foreign investment," the official China Daily newspaper said in an editorial.
Investment in high technology and advanced materials and equipment manufacturing will also be welcome, but those in production industries in which China has mature technologies and capacity will not be encouraged, it said.
The directive highlights Beijing's latest policy initiative to restructure its export-driven economy whose booming but lopsided growth has for decades relied on government and foreign investment to expand.
Under the guidelines, foreigners are barred from investing in non-renewable mineral resources, such as tungsten, tin, antimony, molybdenum, as will investment in small and mid-sized oil refineries.
Refining of copper, zinc, aluminium and rare earths will be restricted and so will the exploration for gold, silver and platinum.
Limits will also be placed on high end real estate such as hotels and malls, property agent companies and brokerages, as part of efforts to cool soaring real estate prices nationwide.
In the financial industry, the commission confirmed restrictions already in place in life insurance and asset management.
China's spectacular economic growth of the last three decades has come at a heavy price to its environment, while surging exports have created a huge trade surplus that is at the forefront of trade spats with major economic partners.
Chen Xingdong, an economist at BNP Paribas in Beijing, said the rules reflected a fundamental change in China's strategies for foreign funds.
"In the past there was no control -- China just opened the door, the window and let whatever (foreign investment) come in," he said. "China doesn't now want just rapid growth without paying attention to quality."
Some analysts also expressed concern for what they said looked like a turn towards protectionism.
"The overall direction should be (towards) more open industries rather than the opposite, "said Shen Minggao, an economist at Citigroup in Beijing.
"The government is worried about resources and the rise in commodity prices, and wants to make sure that scarce resources are under the control of domestic firms, but that's the direction that we're worried about."
Recent policy measures have added to the impression that China is becoming more discerning about investment.
The government has rolled out rules that require state-level approval for mergers and acquisitions. China's State Council, or cabinet, has also released a list of strategic sectors in which the state intends to retain control.
Among them are military-related manufacturing, power production and grids, petroleum, gas and petrochemicals, telecoms, coal, civil aviation and shipping.
Monday, November 19, 2007
Wednesday, October 18, 2006
Which Property Firm To Join?
If you are considering a career in real estate, this article is for you.
Being a property agent or realtor (as it is called in USA) is considered a lucrative career in Singapore.
Real estate agency in Singapore is a self-regulated industry. The government agency tasked to be the watchdog is Inland Revenue Authority of Singapore. Then there are two major real estate organizations that aim to represent the roughly 8000-strong real estate agent population.
On one hand, there is the Institute of Estate Agents (IEA) and on the other, the Singapore Institute of Surveyors and Valuers (SISV).
Property firms are not required to join either of the associations. They are left mostly on their own to set their own rules and business policies.
So, collectively, property agency bosses set the tone for the industry. They set their own procedures for someone who is interested to join their company. Many of these bosses simply copy each other.
At this moment, there is no compulsory requirement for obtaining the CEHA (Common Exam for Housing Agents) qualification. It is good to get it, but it is not compulsory. Our advice for newcomers is to obtain some practical experience first, so that you can better appreciate the depth of the theory when you go for CEHA.
There are mainly 3 types of property firms you can join in Singapore.
1. The first is the Salary + Commission model. Big international property firms practise this. Because of their international brand name, they can recruit and select fresh graduates for their team an pay high salaries plus a cut of pooled commission/bonus. The property marketing executive enjoys employee perks, office amenities, etc. However, the corporate culture is not for everybody, especially for the average real estate agent. Most entrepreneurial agents have little tolerance for office politics, hierarchy and employee roles.
2. Traditional 50/50 model. Traditionally, most property agencies are small outfits with a handful of agents who work as a team. They work on company leads and referrals. In return, the company pay their agents a percentage of the sales commission received (typically not more than 50%). Unfortunately, there are very few of such companies left due to high turnover. Many agents treat such companies as "learning school". Then when they gain experience and confidence, they will leave such companies for others that pay a higher commission.
3. Mass market model. Many property agencies formed in the 90's fall under this model. These firms like to boast of how big there are, in terms of number of agents of course. The usual modus operandi is to have flashy recruitment ads to sell the career. Then attract as many people as possible to attend their compulsory in-house training. There is very flaky selection criteria. Many of these firms lure newcomers by saying that the course fee (which averages $500) is refundable, upon the candidate achieving his/her X$ in sales. Many of such property firms pay a starting commission level of 60-70%. Then as the salesperson matures, this commission level goes up to 90-95%. Such property firms can be huge and impersonal. There is very little teamwork and everybody is on their own. Most business is generated from the HDB market, hence the term "mass market model". The tacky thing about such companies is that they like to give themselves superlative accolades like "Top Gun" and "Million Dollar Awards", etc. There also seems to be an over-emphasis here on how much money they earned, instead of professionalism.
Big On Space is a different set-up altogether. It is a new generation company that is built on an online business model.
We are a cross between a property agency (because we have the broker licence) , an investment company and a business consultant. We look for projects and conceptualize them as investment deals to make money for our investor clients. In this sense, we are like property investment consultants.
As such, we keep our team size small and work with bankers, lawyers and financial investment professionals.
If you are considering a career in real estate, this article is for you.Being a property agent or realtor (as it is called in USA) is considered a lucrative career in Singapore.
Real estate agency in Singapore is a self-regulated industry. The government agency tasked to be the watchdog is Inland Revenue Authority of Singapore. Then there are two major real estate organizations that aim to represent the roughly 8000-strong real estate agent population.
On one hand, there is the Institute of Estate Agents (IEA) and on the other, the Singapore Institute of Surveyors and Valuers (SISV).
Property firms are not required to join either of the associations. They are left mostly on their own to set their own rules and business policies.
So, collectively, property agency bosses set the tone for the industry. They set their own procedures for someone who is interested to join their company. Many of these bosses simply copy each other.
At this moment, there is no compulsory requirement for obtaining the CEHA (Common Exam for Housing Agents) qualification. It is good to get it, but it is not compulsory. Our advice for newcomers is to obtain some practical experience first, so that you can better appreciate the depth of the theory when you go for CEHA.
There are mainly 3 types of property firms you can join in Singapore.
1. The first is the Salary + Commission model. Big international property firms practise this. Because of their international brand name, they can recruit and select fresh graduates for their team an pay high salaries plus a cut of pooled commission/bonus. The property marketing executive enjoys employee perks, office amenities, etc. However, the corporate culture is not for everybody, especially for the average real estate agent. Most entrepreneurial agents have little tolerance for office politics, hierarchy and employee roles.
2. Traditional 50/50 model. Traditionally, most property agencies are small outfits with a handful of agents who work as a team. They work on company leads and referrals. In return, the company pay their agents a percentage of the sales commission received (typically not more than 50%). Unfortunately, there are very few of such companies left due to high turnover. Many agents treat such companies as "learning school". Then when they gain experience and confidence, they will leave such companies for others that pay a higher commission.
3. Mass market model. Many property agencies formed in the 90's fall under this model. These firms like to boast of how big there are, in terms of number of agents of course. The usual modus operandi is to have flashy recruitment ads to sell the career. Then attract as many people as possible to attend their compulsory in-house training. There is very flaky selection criteria. Many of these firms lure newcomers by saying that the course fee (which averages $500) is refundable, upon the candidate achieving his/her X$ in sales. Many of such property firms pay a starting commission level of 60-70%. Then as the salesperson matures, this commission level goes up to 90-95%. Such property firms can be huge and impersonal. There is very little teamwork and everybody is on their own. Most business is generated from the HDB market, hence the term "mass market model". The tacky thing about such companies is that they like to give themselves superlative accolades like "Top Gun" and "Million Dollar Awards", etc. There also seems to be an over-emphasis here on how much money they earned, instead of professionalism.
Big On Space is a different set-up altogether. It is a new generation company that is built on an online business model.
We are a cross between a property agency (because we have the broker licence) , an investment company and a business consultant. We look for projects and conceptualize them as investment deals to make money for our investor clients. In this sense, we are like property investment consultants.
As such, we keep our team size small and work with bankers, lawyers and financial investment professionals.
Monday, October 16, 2006
Team-Building Secrets for Successful Startups
In our business, we deal with many start-ups. They come to us looking for commercial space, all dreamy and excited... and barely one year later, all hell breaks loose!
Today, I'll like to make some comments about such start-ups. Because too many of them don't make it, and then they come back to us to assist them to "break lease" with the landlord.
Many start-ups, we find, do not pay enough attention to calculating their real estate cost. They get emotional. They see a space, they get excited, they want it. They do not realize that the implication of a 3-year lease with the landlord. I suspect most of them don't even have a realistic 3-year business plan.
I believe strongly that if you are starting a business, and you need space, before you run out there and get a realtor to show you around, you should think harder about your real estate strategy first. Because once you meet the realtor, chances are he or she will press your emotional buttons real quick and you end up signing the lease sooner than you are ready for...
Most entrepreneurs get excited about their product or service. They have their marketing plan, their ops plan... but tragically, no real estate plan...
That's why they get trapped later, even if they do well enough to expand.
Because, as we know from Pareto's 80/20 rule, 80% of your branches aren't going to be real contributors. Only 20% will be bringing in 80% of your profits. So how are you going to manage the real estate cost there? What's your real estate strategy?
Now let's take one step back. Before you can implement your real estate strategy, you must think harder about your team first.... (& this impacts how much space you need for a start, or can you just work from home or a serviced office first? Can you share office with a chum for a few weeks or months as you sort your initial business bits?)
You need to consider team issues because people in your team are what's going to make your business work, especially in the first year. This "knowledge" then inputs into your business real estate plan.
I found an article by by Marilyn Byrd and Beth Polish that talks about teams very well. It is reproduced below for your enjoyment. I hope you will find the tips to apply to your business...
When people start businesses, they often hire staff when needed, where needed, with no strategic plan in place.
Sometimes they are lucky and it works. But more often than not, it wastes money and hobbles the startup, as these typical scenarios show:
Ready, aim . . . wait!
A software developer sits at her computer for more than a year, developing a product that she plans to bring to market. Finally, the product is ready, so she dashes out and starts looking for a marketing consultant. Two months later, she finds one. But during that time, she is not making any sales and her competitors are developing new products of their own.
Well, I needed her . . . last month!
An entrepreneur who is launching a wine distribution company hires a full-time assistant to handle his travel plans, meetings with investors and office set-up. Her presence helps him whittle down his workload, but when he needs funds to hire a sales staff ASAP, his "necessary" assistant suddenly starts to look like an extravagance.
So you should expect things like that to happen in a startup, right? No, wrong! You can take preventive steps to be sure you hire the right people at the right time, strategically:
If you are as smart as the software developer we mention above, you probably believe that you can do it all. You can develop and package your product, market it, sell it and keep it updated. Well, you can't do all those things. Write a job description in which you realistically lay out your "deliverables," meaning what you can do every week, every month, every quarter and every year. This job description keeps you accountable and serves as a yardstick for measuring your progress. It also helps you identify areas where you need assistance - and areas where you don't belong. In a startup, it is deadly and wasteful for people to be tripping over each other.
Don't think that a list of titles ("head of sales" and "office manager") will cover these bases. Unless write down the specific tasks that each team member will handle for you ("preparation of payroll"), you will leave bases uncovered. For example, we know one company where the owner forgot that he needed someone to answer the phones! Don't let that happen to you.
Don't hire too early and squander your limited resources. Remember, you can start out with consultants or advisors for marketing, technology and other responsibilities. You can hire part-timers, temps and others per-hour employees too, until your company income lets you expand.
Do you need a marketer to produce a marketing plan for you by next January, for example, and then a technology person to set up a fully functioning Internet retailing operation by next March? Whatever your goals are, write them down. If you do, you are more likely to succeed than if you just try to keep them in mind.
As you move from being a solopreneurship to an entrepreneurship, you need to build a staff of people who cover all the important functions and perform as a team.
Don't, like many first-time entrepreneurs, hire haphazardly. Making the right hiring decisions, at the right times, can be the foundation of your success.
Acolades:
Beth Polish,who received her MBA from Harvard Business School, has held senior management positions in diverse industries including media, finance, private investment and technology. She serves on the National Advisory Board of the Women's Leadership Exchange and conducts seminars around the country as a WLE "growth guru."
Marilyn Byrd, President of Byrd Associates, is a seasoned executive recruiter with over 12 years of executive-level recruiting experience.
In our business, we deal with many start-ups. They come to us looking for commercial space, all dreamy and excited... and barely one year later, all hell breaks loose!Today, I'll like to make some comments about such start-ups. Because too many of them don't make it, and then they come back to us to assist them to "break lease" with the landlord.
Many start-ups, we find, do not pay enough attention to calculating their real estate cost. They get emotional. They see a space, they get excited, they want it. They do not realize that the implication of a 3-year lease with the landlord. I suspect most of them don't even have a realistic 3-year business plan.
I believe strongly that if you are starting a business, and you need space, before you run out there and get a realtor to show you around, you should think harder about your real estate strategy first. Because once you meet the realtor, chances are he or she will press your emotional buttons real quick and you end up signing the lease sooner than you are ready for...
Most entrepreneurs get excited about their product or service. They have their marketing plan, their ops plan... but tragically, no real estate plan...
That's why they get trapped later, even if they do well enough to expand.
Because, as we know from Pareto's 80/20 rule, 80% of your branches aren't going to be real contributors. Only 20% will be bringing in 80% of your profits. So how are you going to manage the real estate cost there? What's your real estate strategy?
Now let's take one step back. Before you can implement your real estate strategy, you must think harder about your team first.... (& this impacts how much space you need for a start, or can you just work from home or a serviced office first? Can you share office with a chum for a few weeks or months as you sort your initial business bits?)
You need to consider team issues because people in your team are what's going to make your business work, especially in the first year. This "knowledge" then inputs into your business real estate plan.
I found an article by by Marilyn Byrd and Beth Polish that talks about teams very well. It is reproduced below for your enjoyment. I hope you will find the tips to apply to your business...
When people start businesses, they often hire staff when needed, where needed, with no strategic plan in place.
Sometimes they are lucky and it works. But more often than not, it wastes money and hobbles the startup, as these typical scenarios show:
Ready, aim . . . wait!
A software developer sits at her computer for more than a year, developing a product that she plans to bring to market. Finally, the product is ready, so she dashes out and starts looking for a marketing consultant. Two months later, she finds one. But during that time, she is not making any sales and her competitors are developing new products of their own.
Well, I needed her . . . last month!
An entrepreneur who is launching a wine distribution company hires a full-time assistant to handle his travel plans, meetings with investors and office set-up. Her presence helps him whittle down his workload, but when he needs funds to hire a sales staff ASAP, his "necessary" assistant suddenly starts to look like an extravagance.
So you should expect things like that to happen in a startup, right? No, wrong! You can take preventive steps to be sure you hire the right people at the right time, strategically:
- Write your own job description first.
If you are as smart as the software developer we mention above, you probably believe that you can do it all. You can develop and package your product, market it, sell it and keep it updated. Well, you can't do all those things. Write a job description in which you realistically lay out your "deliverables," meaning what you can do every week, every month, every quarter and every year. This job description keeps you accountable and serves as a yardstick for measuring your progress. It also helps you identify areas where you need assistance - and areas where you don't belong. In a startup, it is deadly and wasteful for people to be tripping over each other.
- Then write job descriptions for the other people you will hire.
Don't think that a list of titles ("head of sales" and "office manager") will cover these bases. Unless write down the specific tasks that each team member will handle for you ("preparation of payroll"), you will leave bases uncovered. For example, we know one company where the owner forgot that he needed someone to answer the phones! Don't let that happen to you.
- Plan to start small.
Don't hire too early and squander your limited resources. Remember, you can start out with consultants or advisors for marketing, technology and other responsibilities. You can hire part-timers, temps and others per-hour employees too, until your company income lets you expand.
- Hire to meet the big milestones you'll achieve this year, next year and beyond.
Do you need a marketer to produce a marketing plan for you by next January, for example, and then a technology person to set up a fully functioning Internet retailing operation by next March? Whatever your goals are, write them down. If you do, you are more likely to succeed than if you just try to keep them in mind.
As you move from being a solopreneurship to an entrepreneurship, you need to build a staff of people who cover all the important functions and perform as a team.
Don't, like many first-time entrepreneurs, hire haphazardly. Making the right hiring decisions, at the right times, can be the foundation of your success.
Acolades:
Beth Polish,who received her MBA from Harvard Business School, has held senior management positions in diverse industries including media, finance, private investment and technology. She serves on the National Advisory Board of the Women's Leadership Exchange and conducts seminars around the country as a WLE "growth guru."
Marilyn Byrd, President of Byrd Associates, is a seasoned executive recruiter with over 12 years of executive-level recruiting experience.
Saturday, October 14, 2006
Method for Measuring Office Floor Area
A Summary of the generally accepted method for measuring office space
This general overview of the the method used for measuring office space is to allow you to get a general idea on how office space should be measured for rental purposes.
This method has been the generally accepted method for measuring office space for many years.
It should be noted that this standard can and should be used in measuring office space in old as well as new buildings.
It is applicable to any architectural design or type of construction.
Usable Area
The Usable Area is the actual area that can be occupied on a floor or an office.
The amount of Usable Area on a multi-tenant floor usually does vary over the life of a building as corridors expand and contract and as floors are remodeled.
Usable floor area is converted to Rentable Area by the addition of a conversion factor (common area factor).
The Usable Area of an office is calculated by measuring to the finished surface side of the office side of corridor and other permanent walls, to the center of the partitions that separate the office from adjoining Usable Areas, and to the inside finished surface of the main portions of the permanent outer building walls.
The Usable Area of a floor is equal to the total of all Usable Areas on that floor.
Rentable Area
The Rentable Area is the tenant's gross square footage of the entire office floor, minus the elevator core, flues, pipe shafts, vertical ducts, balconies, stairwell areas and other similar columns and projections.
The Rentable Area of a floor is fixed for the entire life of the building. It is not affected by changes in corridor sizes and configuration.
No deduction is made for columns and projections which are structurally necessary to the building.
The Rentable Area of an office floor is calculated by multiplying the Usable Area of that office by the result of the division of the Floor Rentable Area of the floor by the Usable Area of the floor resulting in the Floor Rentable/Usable Ratio.
Building Common Area
The Building Common Area includes all the areas of a building that are used to provide services to building tenants. These are areas which are not included in the office area of any specific tenant. It also includes any other common areas and is added to the Floor Rentable Area to calculate the Rentable Area.
Gross Rentable Area
Rent is almost always paid based upon the Gross Rentable Area which includes the Floor Rentable Area plus the pro rata share of Building Common Area.
Building Rentable Area + Pro Rata Building Common Area = Rentable Area
Load Factor
The Load Factor, or Rentable /Useable Ratio, is the percentage of space on a floor that is not usable plus a pro-rata share of the Building Common Area, expressed as a percent of Usable Area. AKA Common Area Factor or the Loss Factor. A Typical range is 10% to 18%.
Gross Rentable Area ÷ Usable Area = R/U Ratio
Definitions
Finished Surface:
A wall, ceiling, or floor surface, including glass, as prepared for tenant use. It excludes the thickness of any additional surface additions such as paneling, carpet or other similar surface addition.
Major Vertical Penetrations:
Stairs, elevator shafts, flues, pipe shafts, vertical ducts, and similar (including enclosing walls) which serve more than one floor of a building. It does not include stairs, lifts, and other similar structures which serve only one tenant occupying office space on 2 or more floors.
A Summary of the generally accepted method for measuring office space
This general overview of the the method used for measuring office space is to allow you to get a general idea on how office space should be measured for rental purposes.
This method has been the generally accepted method for measuring office space for many years.
It should be noted that this standard can and should be used in measuring office space in old as well as new buildings.
It is applicable to any architectural design or type of construction.
Usable Area
The Usable Area is the actual area that can be occupied on a floor or an office.
The amount of Usable Area on a multi-tenant floor usually does vary over the life of a building as corridors expand and contract and as floors are remodeled.
Usable floor area is converted to Rentable Area by the addition of a conversion factor (common area factor).
The Usable Area of an office is calculated by measuring to the finished surface side of the office side of corridor and other permanent walls, to the center of the partitions that separate the office from adjoining Usable Areas, and to the inside finished surface of the main portions of the permanent outer building walls.
The Usable Area of a floor is equal to the total of all Usable Areas on that floor.
Rentable Area
The Rentable Area is the tenant's gross square footage of the entire office floor, minus the elevator core, flues, pipe shafts, vertical ducts, balconies, stairwell areas and other similar columns and projections.
The Rentable Area of a floor is fixed for the entire life of the building. It is not affected by changes in corridor sizes and configuration.
No deduction is made for columns and projections which are structurally necessary to the building.
The Rentable Area of an office floor is calculated by multiplying the Usable Area of that office by the result of the division of the Floor Rentable Area of the floor by the Usable Area of the floor resulting in the Floor Rentable/Usable Ratio.
Building Common Area
The Building Common Area includes all the areas of a building that are used to provide services to building tenants. These are areas which are not included in the office area of any specific tenant. It also includes any other common areas and is added to the Floor Rentable Area to calculate the Rentable Area.
Gross Rentable Area
Rent is almost always paid based upon the Gross Rentable Area which includes the Floor Rentable Area plus the pro rata share of Building Common Area.
Building Rentable Area + Pro Rata Building Common Area = Rentable Area
Load Factor
The Load Factor, or Rentable /Useable Ratio, is the percentage of space on a floor that is not usable plus a pro-rata share of the Building Common Area, expressed as a percent of Usable Area. AKA Common Area Factor or the Loss Factor. A Typical range is 10% to 18%.
Gross Rentable Area ÷ Usable Area = R/U Ratio
Definitions
Finished Surface:
A wall, ceiling, or floor surface, including glass, as prepared for tenant use. It excludes the thickness of any additional surface additions such as paneling, carpet or other similar surface addition.
Major Vertical Penetrations:
Stairs, elevator shafts, flues, pipe shafts, vertical ducts, and similar (including enclosing walls) which serve more than one floor of a building. It does not include stairs, lifts, and other similar structures which serve only one tenant occupying office space on 2 or more floors.
Seven Ways To Flip A Property
"Flipping" is the buzzword of the year in real estate - flipping books, flipping articles in the newspaper, and even flipping shows on TV!
What is flipping, how does it work and how you can profit?
Flipping simply means buying a property and reselling it quickly, as opposed to holding on to a property long term as a rental.
Flipping comes in several varieties, most of which are legal and profitable, some of which are not.
Flip Strategy #1: Buy, Fix and Flip
Let's start with the most common form - the good, old "fix 'n flip".
This process involves buying a property that needs work, fixing it up, then selling on the "retail" market, that is, to a person who will live in the property. This method is tried and true, and works very well. You can easily make $15 - $50k on one deal, depending on your market and how good you are at finding bargains.
The danger in fix and flips is either paying too much or underestimating repairs. Be very conservative in your fix-up costs and length of time it may take to resell.
Also, make sure you include in your analysis the cost of paying a real estate agent to sell the property.
Flip Strategy #2: Buy, Refi & Lease/Option
Rather than sell the fixed up property for all cash, sell for terms.
Once you have completed the rehab, refinance the property at its new appraised value. If you did the math correctly, you should have little or no money in the deal. Sell the property on a lease with option to buy.
The rent payment from your tenant/buyer should cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years).
When your tenant exercises his option to purchase, you reap a larger profit, since you don't have to pay a broker's fee. If the tenant exercises his option after 12 months, you benefit from a lower capital gains tax rate.
Flip Strategy #3: Buy & Flip "As Is"
Don't like to do fix-up work? Consider selling the property "as is" as a light fixer upper.
If the local real estate market is hot, you should be able to sell the property in poor condition just a little below market. This is especially the case with houses in "transitioning" neighborhoods.
Make sure, of course, that you acquire the property sufficiently cheap enough that you can sell it below market quickly and still profit.
Flip Strategy #4: Wholesale
Strategy #1, the fix and flip, is very popular, which means there are a lot of investors looking for rehabs. (Rehab properties are those that are in poor condition)
You can buy the property cheap and sell it for just a few thousand dollars more to another investor without doing any work. You won't make nearly as much as the rehabber, but you will realize your profit quickly.
Flip Strategy #5: Pre-Construction
In very hot real estate markets, prices are appreciating as much as 2% per month.
If you time things right, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete.
If it takes 12 months for the development to be complete, and the condo price is $500,000, you could make $100,000 or more in one year!
Of course, the opposite is also true - you could end up losing money if the local economy tanks and you end up with a worthless condo that you can't sell for more than you paid. Use this approach very carefully???
Flip Strategy #6: Scouting
The Scout is an information gatherer, so not technically a property flipper. He is the "bird dog" who finds potential deals and sells the information to other investors.
Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties.
The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential.
Flip Strategy #7: Illegal Flipping
OK, do not advocate this approach, because it is illegal.
Illegal property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices.
In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal.
The end result is a buyer that paid too much for a house and cannot afford the loan.
Since many of these loans are federally insured, the government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives flipping to be illegal.
The fact is, "flipping" - as I described in the beginning of this article - is NOT illegal.
Loan fraud in the process of flipping is what is illegal, so don't confuse the two.
The other six ways to flip are very legal, very ethical and very profitable!
"Flipping" is the buzzword of the year in real estate - flipping books, flipping articles in the newspaper, and even flipping shows on TV!
What is flipping, how does it work and how you can profit?
Flipping simply means buying a property and reselling it quickly, as opposed to holding on to a property long term as a rental.
Flipping comes in several varieties, most of which are legal and profitable, some of which are not.
Flip Strategy #1: Buy, Fix and Flip
Let's start with the most common form - the good, old "fix 'n flip".
This process involves buying a property that needs work, fixing it up, then selling on the "retail" market, that is, to a person who will live in the property. This method is tried and true, and works very well. You can easily make $15 - $50k on one deal, depending on your market and how good you are at finding bargains.
The danger in fix and flips is either paying too much or underestimating repairs. Be very conservative in your fix-up costs and length of time it may take to resell.
Also, make sure you include in your analysis the cost of paying a real estate agent to sell the property.
Flip Strategy #2: Buy, Refi & Lease/Option
Rather than sell the fixed up property for all cash, sell for terms.
Once you have completed the rehab, refinance the property at its new appraised value. If you did the math correctly, you should have little or no money in the deal. Sell the property on a lease with option to buy.
The rent payment from your tenant/buyer should cover your mortgage payment (if not, consider an interest-only or adjustable rate loan that is fixed for 3 years).
When your tenant exercises his option to purchase, you reap a larger profit, since you don't have to pay a broker's fee. If the tenant exercises his option after 12 months, you benefit from a lower capital gains tax rate.
Flip Strategy #3: Buy & Flip "As Is"
Don't like to do fix-up work? Consider selling the property "as is" as a light fixer upper.
If the local real estate market is hot, you should be able to sell the property in poor condition just a little below market. This is especially the case with houses in "transitioning" neighborhoods.
Make sure, of course, that you acquire the property sufficiently cheap enough that you can sell it below market quickly and still profit.
Flip Strategy #4: Wholesale
Strategy #1, the fix and flip, is very popular, which means there are a lot of investors looking for rehabs. (Rehab properties are those that are in poor condition)
You can buy the property cheap and sell it for just a few thousand dollars more to another investor without doing any work. You won't make nearly as much as the rehabber, but you will realize your profit quickly.
Flip Strategy #5: Pre-Construction
In very hot real estate markets, prices are appreciating as much as 2% per month.
If you time things right, you can put a contract on a pre-construction house or condominium, then flip it to someone else when the development is complete.
If it takes 12 months for the development to be complete, and the condo price is $500,000, you could make $100,000 or more in one year!
Of course, the opposite is also true - you could end up losing money if the local economy tanks and you end up with a worthless condo that you can't sell for more than you paid. Use this approach very carefully???
Flip Strategy #6: Scouting
The Scout is an information gatherer, so not technically a property flipper. He is the "bird dog" who finds potential deals and sells the information to other investors.
Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties.
The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential.
Flip Strategy #7: Illegal Flipping
OK, do not advocate this approach, because it is illegal.
Illegal property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices.
In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal.
The end result is a buyer that paid too much for a house and cannot afford the loan.
Since many of these loans are federally insured, the government authorities have investigated this practice and arrested many of the parties involved. As a result, the public perceives flipping to be illegal.
The fact is, "flipping" - as I described in the beginning of this article - is NOT illegal.
Loan fraud in the process of flipping is what is illegal, so don't confuse the two.
The other six ways to flip are very legal, very ethical and very profitable!
Ok, so the property market in Singapore looks like it's really trending up...
Yessss! I feel the excitement in the air as people talk about property in flowering terms again...
Property developers are out in full force to promote this good feeling. They are singing, dancing and generally telling you that "now is the time to go out and buy, buy, buy!!!!"
In other words, they are talking up the market...
The mainstream news media is lapping it up and dishing it out. (Don't believe everything you read though :))
And the people are feeling it. A few of my friends came up to me recently to check if the market is really really moving up...
Well... yes, and no.
Yes, because the property market in general (that means both resi and commercial markets) are really improving from just a year ago... the numbers prove it.
And no, because you don't really have to rush out to buy... the market ain't going to fly like it used to (the government policies are in place to check "speculation"). So don't panic. It doesn't matter if you buy at a slightly higher price, or if you lose a few discount points... you're buying property for long term right?
Take a closer look:- Most of the buying frenzy is happening at the "luxury end". The wealthy and cash-rich are buying. They have gotten richer over the last few years. (Sidetrack: You need to open your minds to learn how to make new money through multiple streams of income these days! There is no more iron-rice-bowl!)
There are also wealthy foreigners from Malaysia, China, Australia and Middle East snapping up luxury properties in Singapore. I heard from a banker friend that many of these guys pay cash. Wow.
The middle market - mostly those who are working hard in jobs to make a living - well, for them their incomes have not risen quite as quickly over the same period of time.
In fact, the price of sub-urban condos is becoming quite a stretch for them. This is evidenced by the slow sales of these mainly 99-year leasehold sururban condos. Go visit any showflat on a weekend. Most people there are there with their kids and they are browsing. I think they are just there for a family outing, to enjoy the aircon and escape the haze!
Also consider the on-going HDB glut. You need to consider how the HDB market is doing if you are buying any type of property in Singapore. HDB government flats add a touch of uniqueness to the Singapore property market.
Afterall, over 80% are housed in HDB flats. So they form a base or if you prefer, a floor.
For most other real estate markets in other parts of the world, there may be a bottom-less pit.
Anyway, coming back to the HDB flat-dwellers, these heartlanders do not have much incentive to upgrade to a more expensive condo in their neighbourhood these days. Makes no cents.
Afterall, they are comfortable in their improved HDB flats with fantastic amenities.
Instead of condos with tiny spaces, they'll rather spend on... holidays, more gadgets (talking about gadgets & IT, go and check out InnovationNation exhibition at the Singapore Expo!), and child-care, and school assessment books...
Hey, somebody should do a study on how the expensive cost of raising kids in Singapore is impacting the housing budget for families... I think the cost of living has something to do with Singapore's low marriage and fertility rates too...
Anyway, for those of us who have been in this property business for some time, we have long endured "droughts" of lacklustre market action in the last few years. Since 1997 in fact!
Are we really getting out of the woods and entering a phase of "property market bull-run" now? What do you think?
Whatever it is, we're happy for good news. We're relieved. We're excited. And we're ready to take massive action again!!!!
Parting note for today: If you're thinking of buying property to make money, spend some time to read the following article - The Insider's Way to Predictable Real Estate Profits. I believe you will learn a tip or two...
The Insider's Way to Predictable Real Estate Profits
By Jay Gottleib
When you ask most people how much they are willing to pay for a property, they usually say something like, "Well, the asking price is $875,000 . . . maybe I can bargain that down to $845,000."
That's how they decide how much they are willing to pay for a property. And that kind of thinking makes no sense. To make sure you make a profit from every deal, you have to "back into" the price you will offer by working the numbers.
First, Determine Your Estimated Sales Price
This is the price you will be able to sell the property for after you have improved it.
Look at comparable sales in your area, determine whether the market is going up or down, and understand exactly how much your property will sell for.
Don't exaggerate this figure, based on optimism. Don't expect your property to sell for more than comparable homes, just because you think it will.
It is that kind of unrealistic optimism that causes most people to lose money on real estate investments.
Second, Total Up Your Projected Expenses
These generally include:
Closing costs - Total closing costs, both for the time when you are buying the property and the time when you are selling it too.
Costs of renovations - Cosmetics, mechanicals, masonry, painting - everything.
Taxes - And don't forget that the longer you hold the property, the more taxes you will pay.
The cost of borrowing to buy the property - Your loan costs money, both at the inception and every month.
Realtor commissions - Unless you can realistically expect to sell the property yourself, plan to pay realtor commissions when you sell it.
Hidden costs - Depending on the age and condition of your property, you can expect that something unexpected will go wrong or need to be added to your list of renovations to perform.
An older house can hit you with as much as 15% of its market value in unanticipated expenses.
Insurance - Buy fire, liability as well as builder's risk insurance.
Maintenance costs - You will have to hire companies to keep your property in good shape, and possibly protect your property from vandalism while it is vacant.
Third, Subtract Your Projected Expenses From Your Estimated Sales Price
For example, let's say that you realistically expect to sell a property for $575,000. However, your projected fix-up and other expenses total $125,000.
That means the maximum sum you should offer the seller is $700,000. Otherwise, the deal makes no sense.
Actually, you should offer the seller less than that.
After all, you are investing in real estate to make money.
If you are not making money, what is the point of investing in real estate? So know how much you would like to make on the deal and work that into your estimates too.
Numbers never lie. Make them work for you, and never pay more than you should for any property.
If you do, you have no one to blame but yourself.
But if the numbers tell you that you stand to make a good profit, negotiate hard for the price that will allow that to happen.
If the seller won't accept your offer, don't feel bad about walking away. There will be another deal.
When it comes along, work the numbers to make sure it will earn you a handsome profit.
About Jay Gottlieb
Jay D. Gottlieb is one of the real estate experts on the Trump University faculty. In 1997, Mr. Gottlieb was recognized by Crain's NY Business as one of the "40 under 40" top business people of the year. In 1999, he won the Ernst & Young "NYC Entrepreneur of the Year" award in real estate. Currently, Mr. Gottlieb is president and CEO of Tri-State Home Sales LTD, a multifaceted real estate company that builds homes, owns land and rental properties; and specializes in the purchase, renovation, and sale of family residential properties throughout the United States.
Yessss! I feel the excitement in the air as people talk about property in flowering terms again...
Property developers are out in full force to promote this good feeling. They are singing, dancing and generally telling you that "now is the time to go out and buy, buy, buy!!!!"
In other words, they are talking up the market...
The mainstream news media is lapping it up and dishing it out. (Don't believe everything you read though :))
And the people are feeling it. A few of my friends came up to me recently to check if the market is really really moving up...
Well... yes, and no.
Yes, because the property market in general (that means both resi and commercial markets) are really improving from just a year ago... the numbers prove it.
And no, because you don't really have to rush out to buy... the market ain't going to fly like it used to (the government policies are in place to check "speculation"). So don't panic. It doesn't matter if you buy at a slightly higher price, or if you lose a few discount points... you're buying property for long term right?
Take a closer look:- Most of the buying frenzy is happening at the "luxury end". The wealthy and cash-rich are buying. They have gotten richer over the last few years. (Sidetrack: You need to open your minds to learn how to make new money through multiple streams of income these days! There is no more iron-rice-bowl!)
There are also wealthy foreigners from Malaysia, China, Australia and Middle East snapping up luxury properties in Singapore. I heard from a banker friend that many of these guys pay cash. Wow.
The middle market - mostly those who are working hard in jobs to make a living - well, for them their incomes have not risen quite as quickly over the same period of time.
In fact, the price of sub-urban condos is becoming quite a stretch for them. This is evidenced by the slow sales of these mainly 99-year leasehold sururban condos. Go visit any showflat on a weekend. Most people there are there with their kids and they are browsing. I think they are just there for a family outing, to enjoy the aircon and escape the haze!
Also consider the on-going HDB glut. You need to consider how the HDB market is doing if you are buying any type of property in Singapore. HDB government flats add a touch of uniqueness to the Singapore property market.
Afterall, over 80% are housed in HDB flats. So they form a base or if you prefer, a floor.
For most other real estate markets in other parts of the world, there may be a bottom-less pit.
Anyway, coming back to the HDB flat-dwellers, these heartlanders do not have much incentive to upgrade to a more expensive condo in their neighbourhood these days. Makes no cents.
Afterall, they are comfortable in their improved HDB flats with fantastic amenities.
Instead of condos with tiny spaces, they'll rather spend on... holidays, more gadgets (talking about gadgets & IT, go and check out InnovationNation exhibition at the Singapore Expo!), and child-care, and school assessment books...
Hey, somebody should do a study on how the expensive cost of raising kids in Singapore is impacting the housing budget for families... I think the cost of living has something to do with Singapore's low marriage and fertility rates too...
Anyway, for those of us who have been in this property business for some time, we have long endured "droughts" of lacklustre market action in the last few years. Since 1997 in fact!
Are we really getting out of the woods and entering a phase of "property market bull-run" now? What do you think?
Whatever it is, we're happy for good news. We're relieved. We're excited. And we're ready to take massive action again!!!!
Parting note for today: If you're thinking of buying property to make money, spend some time to read the following article - The Insider's Way to Predictable Real Estate Profits. I believe you will learn a tip or two...
The Insider's Way to Predictable Real Estate Profits
By Jay Gottleib
When you ask most people how much they are willing to pay for a property, they usually say something like, "Well, the asking price is $875,000 . . . maybe I can bargain that down to $845,000."
That's how they decide how much they are willing to pay for a property. And that kind of thinking makes no sense. To make sure you make a profit from every deal, you have to "back into" the price you will offer by working the numbers.
First, Determine Your Estimated Sales Price
This is the price you will be able to sell the property for after you have improved it.
Look at comparable sales in your area, determine whether the market is going up or down, and understand exactly how much your property will sell for.
Don't exaggerate this figure, based on optimism. Don't expect your property to sell for more than comparable homes, just because you think it will.
It is that kind of unrealistic optimism that causes most people to lose money on real estate investments.
Second, Total Up Your Projected Expenses
These generally include:
Closing costs - Total closing costs, both for the time when you are buying the property and the time when you are selling it too.
Costs of renovations - Cosmetics, mechanicals, masonry, painting - everything.
Taxes - And don't forget that the longer you hold the property, the more taxes you will pay.
The cost of borrowing to buy the property - Your loan costs money, both at the inception and every month.
Realtor commissions - Unless you can realistically expect to sell the property yourself, plan to pay realtor commissions when you sell it.
Hidden costs - Depending on the age and condition of your property, you can expect that something unexpected will go wrong or need to be added to your list of renovations to perform.
An older house can hit you with as much as 15% of its market value in unanticipated expenses.
Insurance - Buy fire, liability as well as builder's risk insurance.
Maintenance costs - You will have to hire companies to keep your property in good shape, and possibly protect your property from vandalism while it is vacant.
Third, Subtract Your Projected Expenses From Your Estimated Sales Price
For example, let's say that you realistically expect to sell a property for $575,000. However, your projected fix-up and other expenses total $125,000.
That means the maximum sum you should offer the seller is $700,000. Otherwise, the deal makes no sense.
Actually, you should offer the seller less than that.
After all, you are investing in real estate to make money.
If you are not making money, what is the point of investing in real estate? So know how much you would like to make on the deal and work that into your estimates too.
Numbers never lie. Make them work for you, and never pay more than you should for any property.
If you do, you have no one to blame but yourself.
But if the numbers tell you that you stand to make a good profit, negotiate hard for the price that will allow that to happen.
If the seller won't accept your offer, don't feel bad about walking away. There will be another deal.
When it comes along, work the numbers to make sure it will earn you a handsome profit.
About Jay Gottlieb
Jay D. Gottlieb is one of the real estate experts on the Trump University faculty. In 1997, Mr. Gottlieb was recognized by Crain's NY Business as one of the "40 under 40" top business people of the year. In 1999, he won the Ernst & Young "NYC Entrepreneur of the Year" award in real estate. Currently, Mr. Gottlieb is president and CEO of Tri-State Home Sales LTD, a multifaceted real estate company that builds homes, owns land and rental properties; and specializes in the purchase, renovation, and sale of family residential properties throughout the United States.
Friday, October 13, 2006
Land Banking - Do You Know What You're Really Getting Into?
Recently, many investors have sought our views on "land banking".
Many of them have received invitations by land banking marketing companies to go for sales presentations in fancy offices and they are not so sure about what they hear.
Big On Space is not affiliated with any land banking company out there.
We do not market or represent any land banking company. Our views here on "land banking" are based on our own research & experience, as well as interaction with land bankers and their associates from time to time.
Here is our comment on Land Banking.
Don't be confused with the type of "land banking" that Mr Donald Trump does.
Even in Singapore, when property developers "land bank", they buy land that already have some form of development potential and approval. Not agricultural reserve land with no planning permission like what these landbanking companies are promoting.
The type of land banking deal that is being offered by Land Banking companies has the following features:
If the land gets planning permission from the government authority for development go-ahead, then hopefully a property developer will come along to buy the land at a good price and you share the profit with the other plot owners.
And since this is an enbloc buy-and-sell, you have to get everybody else who owns a subsidiary plot in the whole land to agree to sell as well.
Since these investors are all over the world, you have to find a way to reach everybody in time, and then get everybody's consent...
Sounds tough? Anyway.....
Most property developers will not speculate in such manner.
They will only buy development land that already has obtained some form of planning permission from the relevant government planning authorities, even if it cost more.
One of the reasons is because landbanking or whatever you call it is NOT a "sure thing". There are potentially a ton of complicated political and environmental issues involved.
In United Kingdom context, this concept of breaking up a plot of reserve land into smaller plots and then selling these to individual investors was introduced about 3 years ago.
The key to this type of speculative investment is to be able to obtain "planning permission" from the authorities to convert this reserve land (also known as UK Greenfield/Greenbelt land) so that property development can be allowed.
In other words, these investors are speculating that land which has been "reserved" by government can be turned into development land sometime in the future.
When this happens, the land value would jump and hence they will make a profit. This is provided they can sell the whole land as a group though.
To date, none of the land banking companies in United Kingdom have achieved this "planning permission".
Currently in Singapore & Malaysia, there are several Land Banking companies promoting land banking opportunities in Canada, United Kingdom and USA.
If you are reading this, you would likely have encountered at least one of them already.
You are likely to meet them at International Property Shows, or Alternative Investments Seminars. Somehow many of them like to call themselves anything but "land banking". They like to refer to themselves as "strategic land investments" instead. But it's all the same - they are land bankers!
So who are these people promoting land banking in Singapore?
From our observation, many of them are from "vacation time-share" & MLM (multi-level marketing) backgrounds. Many of them are hard-core direct sales marketers.
Many of them see land banking as the latest "get rich" product to sell for a good commission...
Would you let these people lure you to part with your spare cash? Maybe so, but please take a step back to think through carefully first...
Think about how all this will translate into a real profit for you, several years from now?
Land Banking promises investors with more than 300-800% return, but without any guarantee.
Stocks, bonds, shares, personal savings, do not even come close to the growth land banking promises!
This is where many profit-driven investors jump in with their eyes half closed...
Investors need to understand the risks as well as the fine print. Not every land banking deal out there is real! Some are, some are not!
If you are relying on information from the marketing company solely for your investment, our advice is for you to seek a second opinion. And preferably from someone who does not have any financial benefit from offering you the advice.
So Is It Smart To Invest In Land Without Planning Permission?
Well, Land Banking promises to be an investment option which offers a higher potential return than many alternatives. They say the Crown estate and even the Church of England are doing it.
As with any investment worth its salt, there are investment risks to be considered.
For land banking, a critical factor to consider is the likely (or unlikely) prospect of obtaining planning permission for land development within your expected investment horizon.
And always be vigilant about potential "get rich" scams. Good luck!
Republished from www.bigonspace.com/landbanking.htm
Recently, many investors have sought our views on "land banking".
Many of them have received invitations by land banking marketing companies to go for sales presentations in fancy offices and they are not so sure about what they hear.
Big On Space is not affiliated with any land banking company out there.
We do not market or represent any land banking company. Our views here on "land banking" are based on our own research & experience, as well as interaction with land bankers and their associates from time to time.
Here is our comment on Land Banking.
Don't be confused with the type of "land banking" that Mr Donald Trump does.
Even in Singapore, when property developers "land bank", they buy land that already have some form of development potential and approval. Not agricultural reserve land with no planning permission like what these landbanking companies are promoting.
The type of land banking deal that is being offered by Land Banking companies has the following features:
- A plot of land somewhere out there that will be divided into several smaller plots for sale to individual small investors...
- Does not have planning permission for development yet...
- Promises to be a potential "strategic investment" because of some story (eg UK population growth)...
- Promises an investment return of over 100%... infact, more than 300%!
- Requires all parties to buy and sell enbloc (that means if one don't sell, all don't sell...)...
If the land gets planning permission from the government authority for development go-ahead, then hopefully a property developer will come along to buy the land at a good price and you share the profit with the other plot owners.
And since this is an enbloc buy-and-sell, you have to get everybody else who owns a subsidiary plot in the whole land to agree to sell as well.
Since these investors are all over the world, you have to find a way to reach everybody in time, and then get everybody's consent...
Sounds tough? Anyway.....
Most property developers will not speculate in such manner.
They will only buy development land that already has obtained some form of planning permission from the relevant government planning authorities, even if it cost more.
One of the reasons is because landbanking or whatever you call it is NOT a "sure thing". There are potentially a ton of complicated political and environmental issues involved.
In United Kingdom context, this concept of breaking up a plot of reserve land into smaller plots and then selling these to individual investors was introduced about 3 years ago.
The key to this type of speculative investment is to be able to obtain "planning permission" from the authorities to convert this reserve land (also known as UK Greenfield/Greenbelt land) so that property development can be allowed.
In other words, these investors are speculating that land which has been "reserved" by government can be turned into development land sometime in the future.
When this happens, the land value would jump and hence they will make a profit. This is provided they can sell the whole land as a group though.
To date, none of the land banking companies in United Kingdom have achieved this "planning permission".
Currently in Singapore & Malaysia, there are several Land Banking companies promoting land banking opportunities in Canada, United Kingdom and USA.
If you are reading this, you would likely have encountered at least one of them already.
You are likely to meet them at International Property Shows, or Alternative Investments Seminars. Somehow many of them like to call themselves anything but "land banking". They like to refer to themselves as "strategic land investments" instead. But it's all the same - they are land bankers!
So who are these people promoting land banking in Singapore?
From our observation, many of them are from "vacation time-share" & MLM (multi-level marketing) backgrounds. Many of them are hard-core direct sales marketers.
Many of them see land banking as the latest "get rich" product to sell for a good commission...
Would you let these people lure you to part with your spare cash? Maybe so, but please take a step back to think through carefully first...
Think about how all this will translate into a real profit for you, several years from now?
Land Banking promises investors with more than 300-800% return, but without any guarantee.
Stocks, bonds, shares, personal savings, do not even come close to the growth land banking promises!
This is where many profit-driven investors jump in with their eyes half closed...
Investors need to understand the risks as well as the fine print. Not every land banking deal out there is real! Some are, some are not!
If you are relying on information from the marketing company solely for your investment, our advice is for you to seek a second opinion. And preferably from someone who does not have any financial benefit from offering you the advice.
So Is It Smart To Invest In Land Without Planning Permission?
Well, Land Banking promises to be an investment option which offers a higher potential return than many alternatives. They say the Crown estate and even the Church of England are doing it.
As with any investment worth its salt, there are investment risks to be considered.
For land banking, a critical factor to consider is the likely (or unlikely) prospect of obtaining planning permission for land development within your expected investment horizon.
- How much risk can you accept?
- How much do you really know about the location you are buying?
- Do you understand the political and economic changes that could affect your investment 3, 5, 7 or longer years from now?
- How much commission is the salesperson making from your sale?
And always be vigilant about potential "get rich" scams. Good luck!
Republished from www.bigonspace.com/landbanking.htm
Is The Smoke Haze Messing With Your Central Air-Conditioning System?
Good day! Looks like the haze in Singapore is still around the moderate range - PSI of 51 as at 10am (Singapore time).
Let's consider how the regional smoke haze affects property, in particular the central air-conditioning systems in buildings, and what kind of air cleaning devises are out there...
Air Cleaning Devices for Buildings (with Central Air-conditioning System)
For buildings with central air conditioning systems, air cleaning devices can be fitted so that the particulate level in the indoor air can be kept within acceptable levels during a prolonged smoke haze period.
The devices include electrostatic precipitators and media filters.
Electrostatic precipitators operate by electrically charging dust particles as they pass a set of electrodes. The charged particles are subsequently collected by charged collector plates (with an opposite charge) downstream of the charging electrodes. They have minimal effect on airflow.
Media Filters are mats of fine fibres oriented perpendicular to the direction of airflow. Particulates are intercepted and trapped in the fibres. They are available in a wide range of capture efficiencies.
For smoke haze, filters manufactured for more efficient removal of fine particulate should be used.
The conventional medium to high efficiency media filters that can trap fine particulate are typically dense and may hinder air flow if the fans are not designed to match them.
There is another type of medium efficiency filter that is less dense and therefore exerts a lower resistance to air flow. This type of filter contains electrostatically charged fibres that attract and retain fine particles.
The capital and operating costs vary depending on the particular type of air cleaning devices selected and the design of the air-conditioning system.
Based on Singapore National Environment Agency's assessment, the overall annual cost range from $2,000 to $10,000 for a floor area of 1,300 sq.m. The costs are for an assumed haze period of three months per year. The actual costs of the options will need to be ascertained with system suppliers.
Information from US-EPA webpage on Residential Air Cleaning Devices
Information from American Lung Assocation webpage on Air Indoor Quality
Good day! Looks like the haze in Singapore is still around the moderate range - PSI of 51 as at 10am (Singapore time).
Let's consider how the regional smoke haze affects property, in particular the central air-conditioning systems in buildings, and what kind of air cleaning devises are out there...
Air Cleaning Devices for Buildings (with Central Air-conditioning System)
For buildings with central air conditioning systems, air cleaning devices can be fitted so that the particulate level in the indoor air can be kept within acceptable levels during a prolonged smoke haze period.
The devices include electrostatic precipitators and media filters.
Electrostatic precipitators operate by electrically charging dust particles as they pass a set of electrodes. The charged particles are subsequently collected by charged collector plates (with an opposite charge) downstream of the charging electrodes. They have minimal effect on airflow.
Media Filters are mats of fine fibres oriented perpendicular to the direction of airflow. Particulates are intercepted and trapped in the fibres. They are available in a wide range of capture efficiencies.
For smoke haze, filters manufactured for more efficient removal of fine particulate should be used.
The conventional medium to high efficiency media filters that can trap fine particulate are typically dense and may hinder air flow if the fans are not designed to match them.
There is another type of medium efficiency filter that is less dense and therefore exerts a lower resistance to air flow. This type of filter contains electrostatically charged fibres that attract and retain fine particles.
The capital and operating costs vary depending on the particular type of air cleaning devices selected and the design of the air-conditioning system.
Based on Singapore National Environment Agency's assessment, the overall annual cost range from $2,000 to $10,000 for a floor area of 1,300 sq.m. The costs are for an assumed haze period of three months per year. The actual costs of the options will need to be ascertained with system suppliers.
Information from US-EPA webpage on Residential Air Cleaning Devices
Information from American Lung Assocation webpage on Air Indoor Quality
Thursday, October 12, 2006
Real Estate Wealth Management
Real Estate Wealth Management
What is it? How can you benefit from it?
Here we can talk and chat about:
... what is real estate wealth management...
... how to make money & create wealth from real estate...
... real estate finanace & fund-raising...
... interesting villas, hotels and resorts to check out...
... property news around Asia...
... anything that feels and smells like a good property deal...
But first, though, a little background info. Who are we?
Big On Space LLP is Singapore's #1 Real Estate Wealth Management company. There's not another company quite like us. We are a small team of consultants spread out across Asia, and working closely with our clients to keep costs down, drive profits up.
What is it? How can you benefit from it?
Here we can talk and chat about:
... what is real estate wealth management...
... how to make money & create wealth from real estate...
... real estate finanace & fund-raising...
... interesting villas, hotels and resorts to check out...
... property news around Asia...
... anything that feels and smells like a good property deal...
But first, though, a little background info. Who are we?
Big On Space LLP is Singapore's #1 Real Estate Wealth Management company. There's not another company quite like us. We are a small team of consultants spread out across Asia, and working closely with our clients to keep costs down, drive profits up.
At Big On Space, we are Building Trust, one space at a time.
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