taming the tigers

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taming the tigers
harnessing growth in asia
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• due diligence
• due diligence
• due diligence

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general economic conditions

• national GDP figures
• regional buoyancy
• stability of currency
• political stability
• tourism figures
• average property prices (dont compare to
  UK!!!!!)
• we demand and/or source our own independent data

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gdp figures 2004 - 2005
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generic legals

• ownership situation for off shore investors
  (i.e. leasehold or freehold)
• land title registry process
• leasehold transfer tax, capital gains tax
• stamp duty or similar
• capital controls (money out! )
• busines tax on rental income?
• visa requirements

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the developer

• who are they?
• what have they done already?
• where did they come from?

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exit strategy

• how robust is the resale market?
• is the entire market hinged on UK investors
  (oops!)
• is there a saturation of product?
• is everyone trying to flip with no end users in
  sight?
• how does your purchase price stack up? (do some
  comparables)

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• and time to sell
• structuring the purchase off shore (through a
  BVI co ltd)
• sell the BVI company so no CGT to pay locally
• considering repatriation method of funds into UK
  or rolling into another off shore purchase

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the triple benefit of a sensible purchase in
asia

• rental yields as high as 10-14 per year
• capital growth averaging 20 per year
• fabulous holidays as and when you can

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case studies - asias best of breed regional
investments

• thailand cool blue, koh samui
• cambodia colonial apts, phnom penh
• philippines palawan private island
• malaysia nexus resort, borneo

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thailand
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why thailand?

• free enterprise economy
• welcomes foreign investment
• east asias best performer in 2003
• leading exporter of textiles, rice, rubber,
  jewellery, computing and electrical goods
• increased consumption and investment spending,
  finance available to nationals
• flanked by india and china
• asias no.1 for tourism
• bangkok is key transport hub for region

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tourism rising year on year
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the investor hotspots

• hua hin built up
• pattaya a bit too ooh la la!
• bangkok slower growth
• phuket v. expensive
• koh samui busiest
• koh phangan next!!!

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prime location
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cool blue samui

• 5 star residential resort
• amazing beach views
• under market value by 85k!
• slow payment schedule
• experienced developer
• rental income pooled
• stunning pool villas _at_ 220k
• rental returns start _at_ 9pa
• perfect for hong kong market
• island occupancy over 80
• buy and flip on completion for max profit in 24
  months

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architectural masterpieces
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spacious interiors
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cambodia
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why cambodia?

• located between thailand and vietnam, china to
  the north and malaysia to the south
• GDP growth 13.5 in 2005, 8.6 in 2006
• textile exports up 20 in 2005
• huge manufacturing industry beating off
  vietnam, taiwan and china on price and labour
  costs
• oil reserves recently found, chevron already in
• tourism grew by 375 between 1999 and 2005
• shortage of quality housing in the capital
• 11,000 expats needing rental accommodation

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phnom penh key data
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french colonial apartments, phnom penh

• located in the trendy french quarter of phnom
  penh
• units circa 100k
• guaranteed 10 net yield for 2 years
• zero construction risk as refurbs of classic old
  units
• leases for 99 years for foreigners
• capital growth an easy 18-20 pa, tax only 14

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the philippines
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why philippines?

• GDP 5.3 in 2006 (average 5 since 2001)
• the peso was east asias best performing
  currency in 2005 and 2006
• least affected by the financial crisis of 1997
  because of strong export industries
• abundance of natural resources including oil,
  gas, minerals
• manila now a major commercial centre for asia
• tourism is firmly established - visitors from
  asia, europe, american expats, chinese and
  taiwanese, corporate trips etc
• occupancy for 4 star hotels 74 in 2005,
  73.63 in 2006

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palawan private island placement

• Very exciting investment opportunity for those
  with imagination and a little bravery
• 100k private placement scheme to be one of 30
  equity stakeholders in a stunning, 6 star,
  private island eco-resort in beautiful Palawan
• Returns are 142k back in 48 months and full
  titled ownership of your own resort villa and
  land plot (within the by then fully functioning
  resort)
• Ongoing returns through the rental of your villa
  at 75/25 income split in your favour
• A dream investment? Pinch yourself and read on

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malaysia
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why malaysia?

• asias most consistent high performer
• GDP 5.5 for 2006, averaged 5 last 3 years
• major exporter of oil, gas, rubber, palm oil,
  electronics, garments
• english widely spoken (taught in school)
• property market risen from 15.16 billion RM in
  1990 to 56.78 billion RM in 2005 (375)
• tourist arrivals up from 10.8 million in 2003 to
  16.56 million in 2005 (150)
• RM (ringgit malaysian) de-pegged from us dollar
  and appreciated 6 in 2006 against

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nexus resort, borneo

• absolute beachfront resort in borneo set into
  rainforest behind
• Only 20 mins from int. airport
• hotel already open and at max occupancy
• 18 hole golf course, diving, water sports
• from 219k for a beachfront luxury villa with
  private pool
• 70 LTV finance available
• 99 year renewable leases
• rental yield guaranteed _at_ 7 pa for 5 years
• CGT after 5 years only 5!!!
• PLC company, highly experienced

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opportunities

• buying in bulk to secure solid discounts
• holding units with rent guarantees finance
• selling good value off-plans just before
  completion
• spreading the risk by selecting a mix of well
  researched properties
• not being afraid of Asia, its the world best
  economy by a long stretch but you must do your
  homework

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claire brown realty