Real Estate
Giant wants to be known as more than just a contractor
Yuthachai Charanachitta, the third generation of the Ital-Thai Group, aims to rebrand the group by focusing on its five businesses and study into that is expected to be completed this year. “When you think of the Ital-Thai Group, you think about the contractor business – Ital-Thai Development. However, our group also has many other businesses and we are studying to rebrand the group by classifying our business in a way that will give a clear picture about the group,” Youthachai, who is director of Ital-Thai Development, said. Currently, the group has five businesses. Ital-Thai Development runs the contractor business, which generates total revenue of more than Bt40 billion a year. It also runs a cement manufacturing plant, and a steel plant. Then there is Ital-Thai Engineering. The group also has a trading business involved with wineries. The group’s real-estate business is managed by Amari Estates, while its hospitality business under the Amari brand is managed by ONYX Hospitality Group. The company has a registered capital of Bt700 million with the Charanachitta family holding a majority stake. For the real-estate business, the group has set up Amari Real Estate Co with a registered capital of Bt400 million. The first project was the Amari Residences Hua Hin, worth Bt2 billion, that was launched last year. It is expected to be completed in 2011 with transfer to customers in the third quarter of this year. Yuthachai, who is also the chief executive officer and president of Amari Estates Co Ltd, said the company will generate total revenue of more than Bt1 billion this year from its Hua Hin project. The company also plans to launch the latest condominium project in Patong beach in Phuket worth more than Bt2 billion in this year. This project will offer a 30-year lease to buyers with the right to renew after 30 years. The company also offers management for this project by Onyx Hospitality Group. This project will have 200 units. Of the total, 10 will be villas at a price of more than Bt200 million per unit, and the other 190 units will be low-rise condominiums at a starting price between Bt7 million and Bt8 million per unit, starting at 50 square metres per unit. Pre-sales will start in the second quarter of the year with construction beginning next year. Nearly 55 per cent of its target customers are foreigners. Amari Estate Co also plans to launch three or four projects in 2012-2013 worth more than Bt1 billion per project. They will be located in Phuket, Hua Hin and Pattaya. “In Phuket, it will be located on Nai Han beach, in Pattaya negotiations are going on for the land, while in Hua Hin the land has already been acquired,” he said. Meanwhile, its hospitality business, Onyx Hospitality Group plans to manage 51 properties by 2018. Currently, the company manages 33 properties in Thailand and overseas under four brands -Saffron, Amari, Shama, and Ozo. Thirteen of the properties are managed under the brand name Shama of which 12 are located in China, and one in Bangkok. There are 13 properties under the Amari brand, while seven properties are non-branded as some of them are managed under the customer’s brand, and some properties are still studying which brand will suit them. Onyx Hospitality Group president and chief executive officer Peter Henley said the company will manage two or three new properties this year, and one of them is the Ozo Koh Samui . This hotel has an investment budget of Bt600 million. The Oriental Residence Bangkok will be managed under the Saffron brand, while one in Maldives will be called Amari Addu Maldives. This will be the first hotel under the Amari brand outside Thailand. This project will undergo renovation and be opened this year. The company has signed a 20-year management contract for this project. The company also will sign contracts for five properties next year, he said. Source:nationmultimedia.com
Yuthachai Charanachitta, the third generation of the Ital-Thai Group, aims to rebrand the group by focusing on its five businesses and study into that is expected to be completed this year. “When you think of the Ital-Thai Group, you think about the contractor business – Ital-Thai Development. However, our group also has many other businesses and we are studying to rebrand the group by classifying our business in a way that will give a clear picture about the group,” Youthachai, who is director of Ital-Thai Development, said. Currently, the group has five businesses. Ital-Thai Development runs the contractor business, which generates total revenue of more than Bt40 billion a year. It also runs a cement manufacturing plant, and a steel plant. Then there is Ital-Thai Engineering. The group also has a trading business involved with wineries. The group’s real-estate business is managed by Amari Estates, while its hospitality business under the Amari brand is managed by ONYX Hospitality Group. The company has a registered capital of Bt700 million with the Charanachitta family holding a majority stake. For the real-estate business, the group has set up Amari Real Estate Co with a registered capital of Bt400 million. The first project was the Amari Residences Hua Hin, worth Bt2 billion, that was launched last year. It is expected to be completed in 2011 with transfer to customers in the third quarter of this year. Yuthachai, who is also the chief executive officer and president of Amari Estates Co Ltd, said the company will generate total revenue of more than Bt1 billion this year from its Hua Hin project. The company also plans to launch the latest condominium project in Patong beach in Phuket worth more than Bt2 billion in this year. This project will offer a 30-year lease to buyers with the right to renew after 30 years. The company also offers management for this project by Onyx Hospitality Group. This project will have 200 units. Of the total, 10 will be villas at a price of more than Bt200 million per unit, and the other 190 units will be low-rise condominiums at a starting price between Bt7 million and Bt8 million per unit, starting at 50 square metres per unit. Pre-sales will start in the second quarter of the year with construction beginning next year. Nearly 55 per cent of its target customers are foreigners. Amari Estate Co also plans to launch three or four projects in 2012-2013 worth more than Bt1 billion per project. They will be located in Phuket, Hua Hin and Pattaya. “In Phuket, it will be located on Nai Han beach, in Pattaya negotiations are going on for the land, while in Hua Hin the land has already been acquired,” he said. Meanwhile, its hospitality business, Onyx Hospitality Group plans to manage 51 properties by 2018. Currently, the company manages 33 properties in Thailand and overseas under four brands -Saffron, Amari, Shama, and Ozo. Thirteen of the properties are managed under the brand name Shama of which 12 are located in China, and one in Bangkok. There are 13 properties under the Amari brand, while seven properties are non-branded as some of them are managed under the customer’s brand, and some properties are still studying which brand will suit them. Onyx Hospitality Group president and chief executive officer Peter Henley said the company will manage two or three new properties this year, and one of them is the Ozo Koh Samui . This hotel has an investment budget of Bt600 million. The Oriental Residence Bangkok will be managed under the Saffron brand, while one in Maldives will be called Amari Addu Maldives. This will be the first hotel under the Amari brand outside Thailand. This project will undergo renovation and be opened this year. The company has signed a 20-year management contract for this project. The company also will sign contracts for five properties next year, he said. Source:nationmultimedia.com .
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Giant wants to be known as more than just a contractor
Only large developers on the stock market remain on the Thai market, as they can access a source of funding. Prices of single detached houses and townhouses only rose moderately over the past year, with condominium prices increasing the most to more than 100,000 baht a square metre in Bangkok from 80,000 to 90,000 baht.
The foreign property market has slowed down considerably due to increased competition and rising prices and consequently the market is starting to respond in an attempt to maintain inward investment. Many foreigners resident in Thailand ask whether they can get a mortgage or loan from a Thai bank to purchase property. Until recently, the simple answer was no. Even now, the “main street” Thai banks are unwilling to lend money to foreign nationals for almost any purpose –companies with foreign shareholders find it difficult to obtain business overdraft facilities. However, the more progressive finance houses are starting to take an interest in the market for financial services provision to expatriates. Whilst each case is judged on merit, successful applicants are likely to be permanent residents, or be able to prove several years of residence in Thailand on a non-immigrant visa, and have proof of a secure monthly income in the form of offshore earnings or a permanent job in Thailand (for which a work permit must be presented).
At the end of 2002, quality “Grade A” condos in the Central Business Districts ranged from $148 to $170 per square foot. Ongoing projects in the same area now sell for $193 to $273. Both expats and investors mostly seek two- and three-bedroom units. But if you drop down from luxury to “decent” level, you’ll find plenty of resale properties in the $62 to $227 per square foot bracket. As in most cities, the smaller the property, the more expensive the cost of floor space.
Real Estate
Miami – A Great Place to Buy Real Estate
Miami has evolved into a cosmopolitan wonder city under the sun. Famous for its great beaches, this city has also earned a reputation of being a sexy, marvelous and trendy place to live. From amazing golf courses like the one at Crandon Park in Key Biscayne to the Miami Metro Zoo, this beautiful city has something to offer to everyone. Owning a piece of paradise is a dream within reach of locals and foreigners as well. People from all parts of the world have already taken advantage of the great opportunities available today in the marketplace.
Miami has some of the most amazing real estate developments like the astonishing Santa Maria located in Brickell, or the unbelievable towers of Icon Brickell. Some other exclusive and impressive Miami condos include, the Jade at Brickell, the 900 Biscayne in downtown Miami, the fabulous Trump Palace in Sunny Isles Beach and the astonishing Icon South Beach just to name a few. These modern Miami luxury condos have all the comforts and amenities only found in five star hotels.
The city of Miami has it all, great golf, amazing beaches, a turquoise beautiful ocean, a warm weather, excellent shopping, an electrifying night life, lots concerts, entertainment and sports events at the famous America Airlines Arena in downtown Miami.
Miami real estate buyers are as diverse as the city culture and population itself. Buyers come from all over the globe, Europeans, Latin Americans, and Asians and of course buyers from all around the United States. Some have chosen this beautiful city to have a second home and some have fallen in love so much that they now call Miami their home making it an exciting melting pot to live in.
Real Estate
Real Estate Investor's Secret Weapon
Real Estate Investors have a unique tool in their arsenal that other types of investors do not. One of the oldest tax code sections is 1031. This secret weapon is called a 1031 exchange. It is one of the few areas of the tax code where the US Government allows taxpayers to sell an asset and not immediately pay the taxes. Even State taxes are deferred. The way a 1031 Exchange works is simple. If you sell piece (s) of investment property, and you are want to buy of another piece (s) of investment real estate of equal value, you can defer indefinitely all taxes (capital gains (15%), recapture tax (25% ) and state income tax). This is the benefit: by not having to pay those taxes, you can keep your money (instead of giving it to Uncle Sam) and smartly reinvest it for yourself to grow your real estate portfolio. 1031 is a free financial tool that let you keep 15-30% of taxes you would have had to pay. In the world of increasing taxes, 1031 is a viable alternative.
There are some guidelines that need to be followed, and I will break them down. First, what is investment real estate? Investment real estate is defined as property used in a trade or business. It could be used to run your office or it could be rental property. One of the nice flexible features of 1031 is that all real estate is exchangeable. This means that a home can be exchanged for a condo or a piece of land can be exchanged for a commercial property. I use the rule of thumb that any property with a deed can be exchanged for another property with a deed. The other nice feature is that you can sell one property and purchase more than one replacement property or vice versa.
There are three main rules that investors need to know about 1031 exchanges. First of all, you must use a Qualified Intermediary (an Independent Middleman) to help facilitate your 1031 exchange. The QI, as they are called will do many things including prepare the Exchange Agreement, Escrow your 1031 proceeds, and most importantly make the exchange go smoothly. The QI must be hired prior to the closing of the relinquished property. Secondly, the Exchangor (the person doing the exchange) has 45 days from the closing date of the relinquished property to identify the replacement property. Identification means to list (not go under contract) up to 3 properties of any value and send them to the QI. Finally, the Exchangor has 180 days (from the date closing on the relinquished property), to close on one of those three identified replacement properties.
I don't want to over simplify 1031. Please consult your tax advisor in addition to your Qualified Intermediary to analyze your exchange and to be sure you are making the best tax decision. I do believe the rule of thumb should be if you want to keep your money invested in real estate, then 1031 is a tool you must consider.
1031 can be a potent weapon for the smart real estate investor. There is nothing worse than having a client not consider 1031 or not have their real estate professional tell them about it and the relinquished real estate closes and the client changes their mind. After the relinquished property closes, it is too late to do an exchange. 1031 is an efficient tool for an investor to build their portfolio. Plan your transactions and watch your real estate fortune grow.
Dave Owens, CPA, CES is the managing Member of Entrust 1031 Exchange. Dave and his staff have successfully performed over 10,000 exchanges since 1997. Entrust has an arsenal of tax free strategies. Feel free to contact Dave for more information or questions at 239-333-1031 or owens66@entrustfreedom.com .
Source by Dave Owens
Real Estate
How to Become a Successful Real Estate Developer
Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on …
1) Do Your Location Homework – did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It's true – whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.
Take the necessary time to learn all about a town or city you're considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. If there are inner-city redevelopment projects planned examine the real estate market in the immediate vicinity, if there are areas that are booming right now examine the immediate neighboring areas for their potential for future prices arises for example.
Do not follow the crowd – have the confidence to buck the trend and get ahead of the curve by positioning yourself in a market that is about to boom rather than one in that has already blossomed.
2) Know What You Can Afford – While it can pay to sometimes speculate never be tempted to jeopardize your own home. Work out your finances and be ruthlessly strict about what you can and can not afford as a down payment, for mortgage costs and for the renovation and redevelopment of your next real estate investment. Only proceed within the confines of your tightly allocated budget and do not be tempted to over extend yourself specifically if competition in the property market is tough and the market is slow or stagnant.
3) Identify Your Target Market – Having identified your next location for property investment identify the types of people who buy into renovated assets in that location. Know who your target market are going to be and what they are likely to look for in a property in that location. If for example you're examining inner-city spaces you might identify that your buyers will be young single professionals and that the ideal property type for these people will be luxury low maintenance apartments – seek out suitable properties with the potential for redevelopment into luxury low maintenance apartments and you will fulfill your target market's brief … seek out large homes with substantive gardens in the area and you will have totally missed the market and potentially created a property that will not sell!
4) Renovation Not Rebuild – Know your budget limits and your personal skill restrictions. Do not consider taking on a property that is in need of a complete structural overhaul when your budget is tight or you do not personally have the time, skills or inclining to do the structural work yourself. Be realistic about what you and your budget can achieve and seek properties that fulfil that brief. Pay to have an independent and complete survey done on any property you are seriously considering buying before making a down payment to ensure that there are no hidden surprises waiting for you benefit the floorboards to eat up your budget in its entity.
5) Manage Your Budget – With your survey in hand you can approach builders for statements and seek out prices for fixtures, fittings, finishes and furnishings. Take the prices quoted and sourced and build your budget. Factor in overwriting mortgage and service costs and labor costs as well as your findings and structure and allocate your money accordingly. Watch every single spend and be ruthlessly strict with yourself and your builder. If at all possible have your builder commit to a contract with fixed finish dates and fees and stay on top of every single penny or cent every single day. At the end of each week tally up your outgoings and expenditure and ensure you're not exceeding your budget. If you're overspending rein it in or you will have to shave it off other areas of the development. Remember never to scrimp and save on finishing touches and always give yourself a realistic fall back fund in case of emergencies.
6) Appeal To The Widest Market – Forget putting your personal stamp on any property you develop – you are not going to be living in the property! You should already have identified your target market which will give you a good idea of the level and quality of finish expected, now meet those expectations without adding your own personal taste into the equation. By appealing to the widest market or the lowest common denominator your property will be attractive to the majority of buyers making it faster and easier to sell on and profit from.
7) Make Friends With A Real Estate Agent – Your greatest ally when developing property will be your real estate agent. Make friends with these guys and you will build a beautiful and successful symbiotic relationship in which you both profit to the maximum! Real estate agents are a fountain of untapped knowledge about the local market, who is looking for what property in which area, which additional features cost little to add but which push up the asking price and what a buyer expects from your particular property type. Get the facts from your real estate agent and then apply their advice. You will create a property they can market for top dollar and to the widest market – you will make more profit and they will make a larger commission including a beautiful and lasting friendship!
Finally, remember that when you've bought, renovated and sold on you'll be looking for that next property opportunity and any real estate agent who you've worked with well will be on the hunt for suitable real estate for your next investment making any identical purchases that much easier to source.
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