Real Estate
Believing in green
BY RICHARD ALLAN AQUINO A veteran of Asia’s eco-friendly revolution, Louise Chua wants a greener tomorrow, today. Louise Chua, project director for the building and energy cluster at Reed Exhibitions Singapore that organises the Build Eco Xpo Asia (BEX Asia), an annual exhibit attended by thousands of industry professionals and trade specialists, is proud to declare that she is part of Asia’s green and sustainability movement. After more than two decades spent in organising events across various industries, from construction to forestry to electronics manufacturing, Louise Chua knows better than most in the region about ‘going green’. As project director for Reed Exhibitions Singapore, organisers of the Build Eco Xpo Asia (BEX Asia), one of the region’s biggest green building and technology showcases, she has been at forefront of introducing and educating industry professionals and trade specialists about the benefits of sustainability. We recently sat down with Louise to discuss the increased awareness of eco-initiatives that has helped propel the expo’s growth over the past seven years, and how sustainability will drive Asian markets to succeed in a greener future. What inspired you to help push the green agenda in Asia? There is a huge potential for growth in Asia, and more so with the increasing awareness of ‘going green’. Asia has been behind its Western counterparts and it’s only a matter of time that we catch up. BEX Asia’s journey in the sustainability movement started in 2008 and we are encouraged by the industry’s support to deliver value to engage this community. In Singapore where I am based, the government has consistently pushed the green agenda and put in place initiatives to encourage the movement. There is no better opportunity to engage people on board, especially at the industry level but now. Year on year, BEX Asia hopes to further engage and influence more building owners to build green and create a sustainable built environment, in line with Singapore government’s third Green Building Masterplan. Aside from efficiency and energy-saving benefits, are there any long-term financial gains for real estate and construction companies that choose to ‘go green’? There are definitely long-term financial gains. Companies who choose to go green now are likely to incur lower operating costs in the long run. Research has shown that green buildings tend to use less energy and water and are therefore cheaper to own and operate. Naturally, such buildings will be more attractive to prospective tenants since energy and water costs are major considerations relative to overall rental costs. It also helps companies get ahead of competing businesses by going green earlier than later. Construction firms certainly have long-term financial gains by going green. For example, by using products that minimise waste and choosing products with recycled content that goes into building. By going green in different aspects of the business, it can result in significant savings by the company as a whole, ultimately, reducing the total construction costs, whilst sparing a thought for the environment. Is it possible for boutique companies also adopt green building technology at a lower cost? Yes! In Singapore, the Building and Construction Authority (BCA) has announced a SGD50 million (USD40 million) Green Mark Incentive Scheme targeting small and medium enterprises (SMEs) to encourage better adoption of energy efficient practices. Such incentives and schemes help smaller companies and building occupants financially, defraying some retrofitting costs for energy improvements. Governmental initiatives aside, Afogreen Build Services, one of our exhibitors at BEX Asia 2014, also works closely with companies to provide consultations to help them go green. Can you provide some recent examples of outstanding green buildings around Southeast Asia? The Building and Construction Authority (BCA) in Singapore recognises green buildings in Singapore, in terms of excellence in the built environment in the areas of safety, quality, sustainability and user-friendliness. This year, the BCA Green Mark Champion Award has recognised two buildings in Singapore for outstanding environmental sustainability. One of them is the Nanyang Technological University (NTU). A fast-rising global university, NTU’s lush green campus is a living laboratory for sustainability. The centerpiece of the campus is its award winning building that houses the School of the Art, Design and Media with its signature sloping green roof. Another example is Keppel Land, one of Asia’s leading developers, which was also lauded for its proactive approach towards environmental management and protection in its properties throughout Asia. Some of its greenest buildings include the Ocean Financial Centre and Keppel Bay Tower in Singapore. Outside of Singapore, BCA has also recognised a few buildings for their green excellence and energy-efficiency capabilities. These include IKEA Bangna in Thailand, Menara Binjai, Setia City Mall and GTower in Malaysia, World Trade Center II in Indonesia and CapitaMall Wusheng and Somerset Wusheng in Wuhan, China. We’ve also seen developers showcasing various green build technologies and solutions. An example that can be put in place in both residential and commercial buildings is the Panasonic Energy Management System (EMS), which has been test bedded in Singapore’s Punggol Residential Area, or ‘Punggol Eco Town’. It allows for convenient energy visualisation via wireless communications and network technology, thereby encouraging small behavioural changes towards potential energy and cost savings. The EMS, coupled with energy efficient Panasonic air conditioners, contributed to a monthly average of more than 20 percent reduction in household energy consumption. Following positive results, Panasonic will replicate and fine-tune the system for deployment in hostels, hotels and other big scale commercial buildings in future. These technologies enable occupants to be more conscious of the environment, contributing to a greener building and environment altogether. Asia recently surpassed North America in CBRE’s Global Real Estate Sustainability Survey, doubling its score from last year’s report. What is the implication of this development? Evidently, Asia is well poised for sustainable developments and countries today are starting to walk the talk, putting in place measures to green environments. With BEX Asia, we also see more countries and companies on board. Compared to 2013, BEX Asia gained an 8 percent increase in the number of visitors, putting that to a total of 9,755 attendees. The number of participating companies also grew from 310 to 415, year-on-year. It remains to be Southeast Asia’s largest business platform for the green building and construction industry. Putting these statistics alongside the survey results, we see a growing demand in Asia for sustainability related transactions. We can expect to see a speedy transfer and export of western technology (to be exhibited at BEX Asia) and best practices (to be shared at the IGBC) from the West to East (Southeast Asia) over the next few years. Were there new additions at this year’s expo and what are the plans for next year? For the first time after seven years, BEX Asia and the International Green Building Conference (IGBC) encouraged all participants to adhere to a ‘no-coat, no-tie’ dress code. This ensured that visitors are comfortable while in-hall temperatures can be raised to more environmentally friendly levels. We felt that it is necessary to engage visitors given that they are an important part of the show. By doing away with the usual business wear, we hope that participants this year were able to conduct business in a more conducive environment. On the exhibition ground, BEX Asia returned with a more dynamic showcase of green technologies from its exhibitors. This year, we recognised the need to provide easy market access for Small Medium Enterprises (SMEs) to be involved in the mounting green building products and technologies market. The all-new installation of the ‘Green Shoot Zone’ dedicated for SMEs provided a platform for them to network alongside the industry’s major players. This year, we welcomed more than 400 exhibitors from 35 countries, including Australia, Canada, China, Hong Kong, Korea, Malaysia, United States and United Kingdom. This is a significant increase from the 310 exhibiting companies last year. Building on the green momentum, a newly launched Mostra Convegno Expocomfort (MCE) Asia 2015 will be co-located with BEX Asia 2015 in Singapore. MCE is Europe’s largest trade event dedicated to the cooling, water, renewable energy and heating sectors of the green building community. The biannual exhibition attracted over 156,000 professionals from 146 countries across Europe. MCE Asia will be held from the 2 to 4 September 2015, and will be the answer to the industry’s demands for more green technologies in the HVAC environment. In addition, we plan to provide more content, in terms of exhibits, and knowledge, supplemented by technical presentations alongside IGBC, in the following areas: energy efficiency, which includes lighting; alternative sources of energy; indoor comfort technology; and smart building and automation. To what extent to you think the expo has influenced property markets around the region? The build green industry in Southeast Asia is expected to reach USD40 billion and there is a huge potential for growth. BEX Asia has certainly provided a platform for companies and visitors to be better equipped with the dynamics to capitalise on the green evolution and embrace sustainable communities for a better future. Across Southeast Asia, we have seen increased participation from countries like Vietnam, Indonesia and Malaysia in both exhibiting companies and visitors to BEX Asia.
BY RICHARD ALLAN AQUINO
A veteran of Asia’s eco-friendly revolution, Louise Chua wants a greener tomorrow, today.
Louise Chua, project director for the building and energy cluster at Reed Exhibitions Singapore that organises the Build Eco Xpo Asia (BEX Asia), an annual exhibit attended by thousands of industry professionals and trade specialists, is proud to declare that she is part of Asia’s green and sustainability movement.
After more than two decades spent in organising events across various industries, from construction to forestry to electronics manufacturing, Louise Chua knows better than most in the region about ‘going green’. As project director for Reed Exhibitions Singapore, organisers of the Build Eco Xpo Asia (BEX Asia), one of the region’s biggest green building and technology showcases, she has been at forefront of introducing and educating industry professionals and trade specialists about the benefits of sustainability.
We recently sat down with Louise to discuss the increased awareness of eco-initiatives that has helped propel the expo’s growth over the past seven years, and how sustainability will drive Asian markets to succeed in a greener future.
What inspired you to help push the green agenda in Asia?
There is a huge potential for growth in Asia, and more so with the increasing awareness of ‘going green’. Asia has been behind its Western counterparts and it’s only a matter of time that we catch up. BEX Asia’s journey in the sustainability movement started in 2008 and we are encouraged by the industry’s support to deliver value to engage this community.
In Singapore where I am based, the government has consistently pushed the green agenda and put in place initiatives to encourage the movement. There is no better opportunity to engage people on board, especially at the industry level but now. Year on year, BEX Asia hopes to further engage and influence more building owners to build green and create a sustainable built environment, in line with Singapore government’s third Green Building Masterplan.
Aside from efficiency and energy-saving benefits, are there any long-term financial gains for real estate and construction companies that choose to ‘go green’?
There are definitely long-term financial gains. Companies who choose to go green now are likely to incur lower operating costs in the long run. Research has shown that green buildings tend to use less energy and water and are therefore cheaper to own and operate. Naturally, such buildings will be more attractive to prospective tenants since energy and water costs are major considerations relative to overall rental costs. It also helps companies get ahead of competing businesses by going green earlier than later.
Construction firms certainly have long-term financial gains by going green. For example, by using products that minimise waste and choosing products with recycled content that goes into building. By going green in different aspects of the business, it can result in significant savings by the company as a whole, ultimately, reducing the total construction costs, whilst sparing a thought for the environment.
Is it possible for boutique companies also adopt green building technology at a lower cost?
Yes! In Singapore, the Building and Construction Authority (BCA) has announced a SGD50 million (USD40 million) Green Mark Incentive Scheme targeting small and medium enterprises (SMEs) to encourage better adoption of energy efficient practices. Such incentives and schemes help smaller companies and building occupants financially, defraying some retrofitting costs for energy improvements. Governmental initiatives aside, Afogreen Build Services, one of our exhibitors at BEX Asia 2014, also works closely with companies to provide consultations to help them go green.
Can you provide some recent examples of outstanding green buildings around Southeast Asia?
The Building and Construction Authority (BCA) in Singapore recognises green buildings in Singapore, in terms of excellence in the built environment in the areas of safety, quality, sustainability and user-friendliness. This year, the BCA Green Mark Champion Award has recognised two buildings in Singapore for outstanding environmental sustainability. One of them is the Nanyang Technological University (NTU). A fast-rising global university, NTU’s lush green campus is a living laboratory for sustainability. The centerpiece of the campus is its award winning building that houses the School of the Art, Design and Media with its signature sloping green roof. Another example is Keppel Land, one of Asia’s leading developers, which was also lauded for its proactive approach towards environmental management and protection in its properties throughout Asia. Some of its greenest buildings include the Ocean Financial Centre and Keppel Bay Tower in Singapore.
Outside of Singapore, BCA has also recognised a few buildings for their green excellence and energy-efficiency capabilities. These include IKEA Bangna in Thailand, Menara Binjai, Setia City Mall and GTower in Malaysia, World Trade Center II in Indonesia and CapitaMall Wusheng and Somerset Wusheng in Wuhan, China.
We’ve also seen developers showcasing various green build technologies and solutions. An example that can be put in place in both residential and commercial buildings is the Panasonic Energy Management System (EMS), which has been test bedded in Singapore’s Punggol Residential Area, or ‘Punggol Eco Town’. It allows for convenient energy visualisation via wireless communications and network technology, thereby encouraging small behavioural changes towards potential energy and cost savings. The EMS, coupled with energy efficient Panasonic air conditioners, contributed to a monthly average of more than 20 percent reduction in household energy consumption. Following positive results, Panasonic will replicate and fine-tune the system for deployment in hostels, hotels and other big scale commercial buildings in future. These technologies enable occupants to be more conscious of the environment, contributing to a greener building and environment altogether.
Asia recently surpassed North America in CBRE’s Global Real Estate Sustainability Survey, doubling its score from last year’s report. What is the implication of this development?
Evidently, Asia is well poised for sustainable developments and countries today are starting to walk the talk, putting in place measures to green environments. With BEX Asia, we also see more countries and companies on board. Compared to 2013, BEX Asia gained an 8 percent increase in the number of visitors, putting that to a total of 9,755 attendees. The number of participating companies also grew from 310 to 415, year-on-year. It remains to be Southeast Asia’s largest business platform for the green building and construction industry. Putting these statistics alongside the survey results, we see a growing demand in Asia for sustainability related transactions. We can expect to see a speedy transfer and export of western technology (to be exhibited at BEX Asia) and best practices (to be shared at the IGBC) from the West to East (Southeast Asia) over the next few years.
Were there new additions at this year’s expo and what are the plans for next year?
For the first time after seven years, BEX Asia and the International Green Building Conference (IGBC) encouraged all participants to adhere to a ‘no-coat, no-tie’ dress code. This ensured that visitors are comfortable while in-hall temperatures can be raised to more environmentally friendly levels. We felt that it is necessary to engage visitors given that they are an important part of the show. By doing away with the usual business wear, we hope that participants this year were able to conduct business in a more conducive environment.
On the exhibition ground, BEX Asia returned with a more dynamic showcase of green technologies from its exhibitors. This year, we recognised the need to provide easy market access for Small Medium Enterprises (SMEs) to be involved in the mounting green building products and technologies market. The all-new installation of the ‘Green Shoot Zone’ dedicated for SMEs provided a platform for them to network alongside the industry’s major players.
This year, we welcomed more than 400 exhibitors from 35 countries, including Australia, Canada, China, Hong Kong, Korea, Malaysia, United States and United Kingdom. This is a significant increase from the 310 exhibiting companies last year.
Building on the green momentum, a newly launched Mostra Convegno Expocomfort (MCE) Asia 2015 will be co-located with BEX Asia 2015 in Singapore. MCE is Europe’s largest trade event dedicated to the cooling, water, renewable energy and heating sectors of the green building community. The biannual exhibition attracted over 156,000 professionals from 146 countries across Europe. MCE Asia will be held from the 2 to 4 September 2015, and will be the answer to the industry’s demands for more green technologies in the HVAC environment. In addition, we plan to provide more content, in terms of exhibits, and knowledge, supplemented by technical presentations alongside IGBC, in the following areas: energy efficiency, which includes lighting; alternative sources of energy; indoor comfort technology; and smart building and automation.
To what extent to you think the expo has influenced property markets around the region?
The build green industry in Southeast Asia is expected to reach USD40 billion and there is a huge potential for growth. BEX Asia has certainly provided a platform for companies and visitors to be better equipped with the dynamics to capitalise on the green evolution and embrace sustainable communities for a better future. Across Southeast Asia, we have seen increased participation from countries like Vietnam, Indonesia and Malaysia in both exhibiting companies and visitors to BEX Asia.
Read more:
Believing in green
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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