Thai Real Estate Investment Soared On Back Of Property Fund Activity

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

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

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

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

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

KTAM Eyes Real Estate Market

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

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

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

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

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

Leveraging Property To Buy Property

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Many lucky homeowners are using equity they gained during the recent bull market in real estate to purchase second homes. Leveraging one property in order to acquire another can be a solid investment strategy, as you increase your investment portfolio one step at a time, and one house at a time, by using each new asset to help pay for another one.

Banks will normally scrutinize credit reports and income documentation more stringently when you borrow to buy a second home, because they want to make sure that both of your mortgage obligations can be paid each month without a problem. And they may require larger down payments and charge slightly higher loan fees or interest rates than they did when you bought your first home. Nevertheless, many homeowners find it easy to qualify for new loans, and this is especially true for those who maintain excellent credit ratings. With the potential to profit from your purchase through equity appreciation, the repayment of a second mortgage is often easier than it was for a first mortgage.

For those who plan to use the second home as an income-producing property, there are also available tax deductions. As a landlord, you can usually deduct such things as repairs, utilities, and even routine trips you take to visit your property and check on its upkeep. Many investors combine their use of the second home, so that it is rented or leased sometimes, and at other times it is used as a personal vacation home. When you arent making money by leasing it to others, you save money by not having to pay for hotel lodging at vacation time. A qualified tax planner can help you find all of the various tax advantages to spending your vacations in your own second home.

When applying to secure a loan for an income producing second home, it is a good idea to present your lender with a thorough business plan and any documentation that illustrates the practical income potential of the property. If the previous owner made a profit each year by renting it out as a holiday retreat in the summertime, your lender will be more inclined to have confidence in your own ability to manage the property for extra income. One good way to show income potential is to hire a professional appraiser, who can do a market analysis of your property by comparing it to similar income-producing properties in the same area.

Another popular way to finance a second home purchase is by using an equity line of credit based on the value of ones first home. Banks typically charge more interest for these loans, but you are able to avoid many of the closing costs that are associated with originating a separate mortgage. And regardless of whether you apply for a mortgage or an equity loan, you may be eligible for tax deductions of interest payments and other related expenses.

Mysore Property Market Right Time To Invest

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Mysore, the second largest city of Karnataka, is located in the vicinity of Indias IT hub, Bangalore or Bengaluru. It is barely 140 kilometres from the capital city, Bangalore and is widely known for its festivities during the festival of Dusshera. Mysore is fast emerging as the next most preferred IT destination after Bangalore due to the congestion and resulting saturation of the countrys IT hub.

In order to support the growth bandwagon of IT leaders, Mysore has been chosen as the upcoming software nucleus. According to analysis of real estate sectors, it is actually the prospering of IT sector that brings about a boost in real estate trends of a city. Mysore is witnessing the launch of various IT projects, thus, leading to infrastructural developments and generating needs for expansion of real estate sector. Therefore, as evident by the increase in demand for both residential and commercial property and the consequent hike in property rates, the trends of real estate development in Mysore are no different.

After flooding Bangalore with global software companies, IT majors are expanding their operations in the nearby city, Mysore. Undoubtedly, its favorable location i.e. being in proximity to the technology capital has proved highly advantageous to Mysore. When the focus of IT industry was Bengaluru, the property rates in Mysore were quite low and affordable while the real estate of Bangalore was flourishing. Since, this interest has now been displaced and shifted to Mysore, its real estate sector seems to be reaching an all time high. The modernization program has already begun with the primary task of improving connectivity of the city to other regions.

The revamping of airport, the doubling of railway tracks between the cities and the completion of Bangalore-Mysore expressway are some of the recent developments taking place to create a better communication network. Large numbers of residential and commercial developments are also under progress to accommodate the demands of both individuals and large-scale companies.

Some of the upcoming residential properties include Shalom Voyagers Central Park at Ideal Jawa; Brigade Groups Brigade Citadel in Yadavagiri, Brigade Horizon in Siddhartha Layout and Brigade Solitaire behind Lalitha Mahal Palace; Damden Properties Beryl, Square, Prithvi, Solar and Arbor and many others.

The commercial real estate of Mysore has become the hottest choice for many corporate giants for both carrying out business operations and as an investment destination. The properties in Landsdown Building, Devaraje Urs Road, Sajjan Rao Road, KT Street, 100 ft Road, Irwin Road and MG Road have the highest demand for building up of office spaces.

The price of property in Mysore have already doubled and even trebled in many of its important areas in last few years. It has been indicated clearly that the overall growth of the city that includes the speedy rise of real estate, information technology and retail sectors is all set to fuel up the property rates further. The special interest of NRIs in Mysore property is another major reason for the hike of property prices in the region.

Being the Cultural capital of Karnataka, Mysore attracts large number of tourists, especially at the time of Dusshera celebration that continues for 10 days. Mysore is also popularly known as the City of Palaces as it houses various beautiful palaces including the Mysore Palace. There is a unique ancient charm that prevails in the city, alluring people from everywhere to visit the city, making it an important tourist destination of the State of Karnataka.

It is, thus, suggested that if you are planning to buy or invest in Mysore property, the right time is now because prices still fall in moderate zone. They are only going to rise in the coming years and so, will definitely yield high investment returns.

How A Flood Vent Protects Your Property

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If you own a property, it’s important to make sure it’s protected from potentially damaging conditions. Whether you already own a home and need to perform upgrades or you’re building a house from scratch, it’s important to consider the dangers of high water. In fact, this is such a concern in low-lying areas that any property in a FEMA-recognized A-type flooding zone is required to feature a flood vent system. By installing these devices in your property, you’ll protect yourself from dangerously high levels of water.

A flood vent works by allowing water to pass from your property’s exterior to interior and back. In doing so, it allows high concentrations of water to move to less concentrated areas. Flooding can cause a great deal of stress on your property’s foundation. This stress can cause cracks and compromise the structural stability of your home or business. While it may be difficult to detect these damages, that doesn’t mean their impact won’t affect your property’s value for years to come. As a result, it’s important to inspect your foundation and research whether or not you could benefit from a flood vent system.

For those who already own a property in a low-lying area, it’s fairly easy to install the necessary equipment. There are different products for home and business owners who have different priorities. If you don’t want to compromise your building’s aesthetic, you an choose a system that uses relatively few vents. On the other hand, someone who wants superior protection should install a system that is quite extensive. Consult with a contractor who can help you determine what’s best for your home or business. With proper waterproofing devices installed in your property, you’ll rest easy knowing your investment is safe.

When building a new home, you’ll need to follow government guidelines when installing a flood vent system. These guidelines differ from state to state, and it’s important to make sure your building is up to code. You’re investing too much in your construction to see its foundation succumb to damages caused by water. There are different policies regarding engineered and non-engineered openings. For engineered openings, you’ll simply need to have a regulatory agency inspect the work and certify it. Non-engineered openings must adhere to a strict list of guidelines outlining the size and number of holes, and the materials used during construction.

A new or upgraded system will ensure your building’s long-term value remains high. Flooding can happen at any time without warning, and it’s important to make sure your home or business is protected in advance. Many waterproofing companies offer free estimates and financing options to help you do what’s necessary to protect your property.

Are you interested in installing a flood vent? Alabama homeowners who live in a low-lying area can invest in one by working with Alabama Professional Services. For more information, visit: .

Rental Property Investments Silent Partnership

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If the deal needs a little help, property investors will sometimes take on partners. The partnership gathers diverse resources for deal making. Before you take the plunge into Rental property investments, consider gaining access to groups of investors.

Meeting with other investors might help you decide if you’d like to be a silent partner. As a silent partner, you invest the money in the property, then step back and watch the income flow in. As a silent partner you’d just provide the funds or credit- period. You might be the only silent partner, or you can be one of several investors in an investment group.

Silent partners have the luxury of letting the active members do the property hunting, contract signing and rehab planning. You can purchase stock in a real estate firm and never leave home- that’s what being a silent partner means. Cash is the language of love in the real estate world- if you have enough, you can get anything. That’s why cash investors are in hot demand by property investors.

Cash opens doors and closes deals. This is because other investors or homebuyers will have to apply for a hard money loan or put themselves at the mercy of mortgage companies. As a part of a silent partnership, you’ll find that you’ve gained more than Rental property investments. Silent partners get to make an income without trying, even when its your first foray into investing.

Also, being partners with someone in real estate will be a bonus. Just because they don’t have ready money, doesn’t mean your active partners can’t be a tremendous asset in your real estate ventures. Your silent partnership can help mitigate the tax obligation on both sides. The silent partner lowers their taxable worth by investing their money, and the active partner lowers their worth by “giving some of their income to you.

Acting as the silent partner in a business when you invest in Rental property investments can help you grow your money, whether it’s an IRA account or just your savings account. As a silent partner you can free yourself of all the real estate hubbub – keep your hands clean and callous free. This is also a good way to diversify your investments so you don’t feel like everything is just in the stock market or sitting in the bank.

Lifepoints Servicing, LLC is your answer for real estate help…turnkey Rental property investments.

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