Real Estate Investment in Asia

Posted by Andy Johnson | Real Estate | Friday 24 April 2009 4:02 am

The real estate in Asia provides huge scale of choices for investors. In other words, let it be in sectors like retail, residential, industrial, or hospitality sector, a continuum of opportunistic options are available for investing in Asia. For instance, developed economies like Japan and South Korea offer excellent leasing strategies.

For investors seeking huge returns, dynamic as well as emerging destinations such as India and China are the best. Likewise, core plus investments opportunities are available in such hi-fi Asian cities as Tokyo and Hong Kong, each of which are hot markets for office set ups and big buildings. Further, for those interested in hotel business, Asian destinations including Thailand provides superb options.

There are also excellent opportunities available in South East Asian nations, such as, Singapore and Malaysia, boasting of a matured economic structure and high income level. Nowadays, many investors are attracted to the potentials obtainable in Vietnam, particularly with its entry into the World Trade Organization. In addition, majority of the matured economies such as Taiwan, Korea, and Thailand offer great opportunities for real estate investments.

However, the laws governing the sale and purchase of property in Asia vary from nations to nations. For example, in order to administer the real estate in China, the government has imposed several guidelines, including the Law of Land Administration of the People’s Republic of China and the Regulations 1990 on Development and Management of Tracts of Land by Foreign Investors.

In Hong Kong, property buying processes are governed by the Conveyancing and Ordinance, modeled in the form of English Law. Likewise, some nations impose certain restrictions on foreigners for investing in Asian market. In order to invest in a property in Malaysia, its law entails foreign investors to get approval from the Foreign Investment Committee (FIC) of the Economic Planning Unit of the Prime Minister’s Department, in order to invest in a property here. Similarly, foreigners cannot purchase property outright in Philippines. Furthermore, in Philippines, foreigners can own only building and not the land.

One of the greatest advantages of investing in Asian real estate is that it allows investors to participate in broad based growth of property throughout the region. Liberal tax law systems, low interest rates, and easy availing of mortgage finance are the other key benefits of investing in Asian market. However, the success of investing in a property in Asia are affected by certain factors including investor poise, profit margins on development projects, economic qualms, rental yields, and operating cost.

A plethora of real estate agencies and firms are now in the scenario to make you available your dream property in Asia, no matter it is villa, apartments, single homes, or commercial or industrial spaces. Many of them offer superb services in connection with the buying and selling of real estate. Some even come with an exclusive section to cater to the requirements of foreign investors. Apart from these, there are real estate agencies as well as realtors working in association with leading law firms. This in turn enables you to get excellent services of a proficient attorney.

However, prior to contracting a realtor in Asia, it is important to undertake a research on the reputation and the quality of the service it renders. There are some firms incurring huge charges in the form of hidden expenses. Hence, it must be checked for. Since many of the firms have their own websites, this allows for a convenient as well as easy search of most suitable realtor. Newspapers, reviews, online directories, and references are the other prime sources in order to find the most suitable firm that go with your needs.

Call Center Industry in Asia – A Look Into the Future

Posted by David Siegel | Telecommunications | Wednesday 15 April 2009 2:29 am

The call center industry in Asia still remains optimistic despite the world economic crash that has been happening in the past few years. In spite of the downturn, even the outlook for the BPO market is optimistic.

Many foreign clients favor call centers in Asia because of their well-established and time-tested models that give clients the best service in outsourcing. Call center industries in Asia is bringing a lot of savings to many companies due to labor cost-cutting. In many cases, they could cut it to as much as 85% through outsourcing. Ultimately, all the companies’ expenses will be reduced.

Aside from labor being relatively cheap, call center services in Asia are preferred by many companies, particularly European countries because of the quality of service they provide.

However, despite all these available resources, Asia needs the emergence of stronger ties and stable affinities of many call center solution providers in Asia and their foreign clients. Today, the BPO industry in Asia is fighting its way to the top, and is showing no signs of going down. According to economists, its revenue increased by 25% in local currencies and 23% in US dollars. Although these statistics are quite lower than what it used to gain in the past, the industry still continues to survive and thrive, amidst the economic and financial events that shape its existence.

Asia’s Business Brokers

Posted by Caroline | Business & Economy | Wednesday 8 April 2009 3:48 am

If you are buying a business or selling a business, it helps to understand the role of business brokers in the process. Here are some of the pros and cons of using a business broker.

Advantages of Using a Business Broker

Assistance in Valuing a Business.
Business brokers have extensive knowledge of what businesses are worth and can usually derive a business value that is fairly accurate. Without a business broker, it is tough for sellers to accurately place a realistic valuation on their business.

Help in Presenting the Business.
Business brokers are adept at packaging up a business to show it in its best light. Without a business broker, a seller may not be able to market their business in a way that is attractive to buyers.

Confidentiality.
Business brokers work in a confidential manner, keeping the sale of the business in confidence so that competitors, employees, suppliers and others are not informed that the business is for sale.

Experience in Evaluating Buyer Intent.
Business brokers are able to quickly ascertain whether a potential business buyer is serious or wasting valuable time. In contrast, a seller who is not using a business broker may invest considerable time in courting a potential buyer who turns out not to be serious or qualified.

Ability to Convert Interest in Buying a Business into an Actual Sale.
Business brokers know how to create competition among potential business buyers in a way that moves the sale of a business along. When sellers make an offer, the business broker can interpret the offer and even suggest changes to an offer that will make it more likely that the business sale will occur.

Service as an Intermediary.
Buyers and sellers generally don’t trust each other. The business broker can serve as a middleman to interpret communications and lead the buyer and seller towards compromises whenever possible.

Expertise in Business-for-Sale Transactions.
Finally, the business broker knows all the minutiae required to close a business sale transaction. Typically, a buyer and seller may not understand all the nuances of getting the deal to closure, so it’s good to have an experienced business broker involved who can facilitate the process.

Disadvantages of Using a Business Broker

One-Sided Interests.
Remember that the business broker usually represents the seller. If you are a business buyer, the broker’s interests will not be aligned with your interests. While most brokers are very helpful to buyers, buyers must keep in mind that the broker is not on the buyer’s side.

The Broker Fee. Brokers will typically take 6-15% of the total business selling price as their commission. That’s a hefty take, so many sellers may want to consider doing a FSBO (For Sale By Owner) sale and see whether they can sell their company without the assistance of a business broker.

Varying Levels of Competency.
Finding a good business broker can be a challenge. The field is largely unregulated so, in some cases, individuals with little experience or expertise can hang up their shingle and declare themselves to be business brokers. Be careful. If you engage an incompetent business broker, it can be a complete disaster.

Incentive to Sell at Low Prices.
A business broker gets paid when there is a sale, so they sometimes will underprice a business to sell it quickly. For business brokers, the difference between selling a business for $500,000 versus $600,000 is only 6% of $100,000 – or $6,000. For the seller, it’s a $94,000 difference. By selling for $500,000, the broker walks away with $30,000, which he may be more than happy to do – even if it’s at the expense of the seller.