Invest Dest

Campinas Has Many Jobs, Not Much Office Space

2011-11-16T13:16:00.001-08:00

*Campinas skyline; photo courtesy of Fasouzafreitas*

Brazil's booming economy has had no problem attracting multinational companies over the past decade, but not nearly as many commercial real estate developers. Long deterred by high interest rates, foreign investors are beginning to recognize Brazil's shortage of leasable office space--especially in Campinas.

Its proximity to the financial capital, Sao Paulo, high quality of life, highly educated workforce, diversified economy, and of course, low cost of doing business, have made Campinas a top investment destination. Aptly named the "Silicon Valley of Brazil" due to its high concentration of universities, research centers and high-tech companies, such as Bosch, Compaq, Dell, General Electric, IBM, Lucent, Samsung, and Texas Instruments, Campinas is also home to automobile giants, General Motors, Honda, Mercedes-Benz and Toyota, and pharmaceutical giants, Merck and Novartis. In all, well over 50 Fortune 500 companies have major regional operations here, contributing to a relatively low unemployment rate of roughly 6% and one of the highest average income rates in the nation.

Campinas' job growth has generated a lot of buzz in recent years. In 2009, Bloomberg/Businessweek named it one of its "Cities that Could Steal Your Job" and KPMG listed it as one of its top destinations for IT business processing outsourcing. Last year, Forbes called Campinas one of "The Next Decade's Fastest Growing Cities" and Wired magazine named it one of the fastest growing high tech centers of Latin America.

Several major infrastructure projects promise to bring thousands more jobs to the region. For example, the $ 18.8 billion public-private Rio-Sao Paulo-Campinas high-speed railway will soon connect Campinas with both Sao Paolo and Rio by 2016, perhaps in time for the Olympic Games in Rio. In addition, a $ 1.5 billion airport expansion project due for completion in 2015 will add a runway and start the first phase of a new passenger terminal.

Notwithstanding the recent job growth, Campinas' commercial property market remains largely underdeveloped. Office vacancy rates are less than 6% on average compared to roughly 14% on average in U.S. cities, signaling a potential dearth in Campinas--particularly when it comes to Class A office space.

Brazil's central bank cut the interest rate last month by 0.5% to 11.5%, and investors expect another 1.25% in cuts by April 2012. This could be enough to spur a new wave of much needed investment in one of Brazil's most favored markets.

Chinese Tourists, Investors Try Their Luck in Vegas

2011-01-10T03:56:00.001-08:00

**Residential and mixed-use project on the North Strip**

Las Vegas was perhaps hardest hit by the global economic recession and US housing market collapse. As the nation's fastest growing metropolis and a top tourist destination, Vegas' housing and tourism industries suffered major blows.

Although tourism declined 4.4% and 3% in 2008 and 2009 respectively, Vegas' luck now seems to be changing--thanks to a rebounding American economy and a surge in tourists from mainland China who have long targeted Vegas as a "must see" destination. The Chinese are not just the fastest growing segment of tourists, they're also the biggest spenders. In fact, the U.S. Department of Commerce estimates that Chinese visitors spend, on average, $6,000 per trip--far more than tourists from any other country. In hopes of reviving Vegas' tourism industry, the Las Vegas Convention & Visitors Authority (LVCVA) has allocated significant resources for marketing campaigns in China's largest cities.

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Abu Dhabi Lures Tourists, Investors

2010-07-02T14:56:00.000-07:00

Dubai may be the most popular emirate but Abu Dhabi is where the real money is. Despite its small size, Abu Dhabi makes up over half of United Arab Emirates' (UAE) GDP and has more in cash and energy reserves than most large countries.

The emirate's sovereign wealth fund, the Abu Dhabi Investment Authority, is conservatively estimated to hold between $350 B and $700 B in assets including huge stakes in Barclays, Citigroup, and real estate in top global investment destinations.

Abu Dhabi holds nearly 10% of all the world's known oil reserves (5th largest), and produces 90% of all oil within the UAE. With the world's sixth largest natural gas reserves, the emirate is also wealthy in non-oil assets.

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US Home Sales Plunge in December 2009

2010-01-27T03:58:00.000-08:00

Home sales fell 16.7% last month, its largest decline in about 4 decades as the effects of the first-time home buyer tax credit faded. National Association of Realtors data suggest that first-time home buyers made up the majority of home sales in the early part of 2009, compared with just 43% in December.

Regional sales declines were greatest in the Midwest at 26% and least in the South at 16%. Both unemployment and foreclosure rates help to explain the differences in regional home sales figures.

The good news is that December 2009 sales and prices were up 15% and 1.5% respectively over December 2008. However, inventory was also down during the same period, lessening the legitimacy of year over year sales and price increase.

Top 10 U.S. Real Estate Investment Destinations in 2010

2010-01-25T12:54:00.000-08:00

Based on Association of Foreign Investors in Real Estate/University of Wisconsin survey results

Washington, DC was yet again named America's top real estate destination for international investment, beating out New York, San Francisco, and Boston respectively. A survey conducted amongst members of the Association of Foreign Investors in Real Estate (AFIRE) found that for a second year in a row, multi-family units were the preferred form of real estate investment.

Although Washington was the world's top real estate investment destination last year, London emerged to capture the top spot by a huge margin. This may be attributable to London's investments in preparation for the 2012 Summer Olympic Games, the weakened Pound Sterling, and a rebounding property market. New York remained the world's third most favored destination, followed by Paris, Tokyo, Sydney, San Francisco, and Hong Kong.

10. Denver

By the end of 2009, the mile-high city's property market seemed to be nearing a bottom as both vacancies reached 4-year lows. The Central Business District and Lower Downtown office vacancies faired a lot better than most major markets in the third quarter at just 13% and 15% respectively; however, by the fourth quarter, vacancies fell across the entire region.

9. Miami

Although Miami was one of America's hardest hit real estate markets, this year we've seen signs of recovery. In 2009, over one-third of new condo units were vacant, but real estate professionals are reporting that things are improving. Miami still remains a popular spot for international real estate investors for the city's warm climate and significant portion of celebrities.

8. Chicago

With the second largest office market and third largest real estate market in the U.S., Chicago remains a favorite destination among international investors. As such, Chicago's office vacancy rate was one of the lowest in the U.S. at only 12% by the end of 2009.

7. Seattle

Seattle's office vacancies are at 20-year lows, which translates to over 20% in the downtown/financial district. Local brokers and developers have a negative outlook moving forward, however, international investors think highly of the Emerald City, with its highly educated workforce, presence of Fortune 500 companies, and large international port.

6. Houston

Houston's real estate market was close to the national average with overall vacancy rates of about 16%. The city has held up well but in some suburban areas, vacancy rates were much higher. When it comes to local residential real estate, a recent survey showed that most investors have a positive outlook moving forward.

5. Los Angeles

Down from the #4 spot last year, the L.A. area was amongst the country's hardest hit property markets. Some of the city's
most notable landmarks, like the U.S. Bank Tower, is nearly 35% vacant. However, in downtown, rates remained at 14% going into 2010, while the Burbank-Glendale-Pasadena submarket saw a surge to 17%.

4. Boston

Boston was this year's biggest gainer, having moved up from seventh place last year as it was seen as one of the most stable markets in terms of both prices and vacancy rates. Boston remains a favorite US destination due in part to its proximity to Europe and zoning regulations and tight property market.

3. San Francisco

San Francisco was one of the country's hardest hit markets, which once saw over 30% vacancies in the financial district office market last year. But international investors still favor San Francisco as it's a major financial hub and one of the world's top international tourist destinations.

2. New York

The country's largest office and housing market saw one of the lowest office vacancy rates amongst major cities, but also one of the steepest declines in prices. Recent trends suggesting a decline in sublease space indicates that office vacancy rates will stabilize in 2010.

1. Washington, DC

Office vacancies and prices were amongst the most stable in the nation as demand for proximity to the federal government, lobbyists, and law firms makes central Washington an attractive market. As suburban markets in Northern Virginia show signs of recovery, DC's office market is expected to follow suit in 2010. International investors love DC's European feel and future growth prospects.

Photos courtesy of: Ken Schroeppel (Denver); Wikipedia user, Aude (Chicago)

US Economy Returns to Growth

2009-10-30T14:10:00.000-07:00

After a year of the largest economic decline in nearly 7 decades, the US economy has finally returns to growth. The US economy showed signs of recovery as the US Department of Commerce recorded an economic growth rate of 3.5% during the third quarter. Consumer spending was up nearly 3.5% as well, the largest quarterly rise in about 2 years.

US New Home Sales Decline

After 5 months of rising new home sales in the US, figures for September were down 3.6%. Many economists attribute the drop to the end of the first-time homebuyer tax credit. The decline was most evident in the South and West, while new home sales were up 35% in the Midwest.

FDI to Vietnam Plunges

Foreign direct investment into Vietnam is down 12% so far this year and new commitments for foreign investment projects is down over 70%. FDI had previously been key to helping Vietnam balance its trade deficit.

Australia, Cook Islands Sign Tax Info Exchange Agreement

The Cook Islands and Australian governments have signed a tax information exchange agreement, further closing the door to any possibility of Cook Islands returning to its former tax haven status. Since nearly 50,000 Cook Islands citizens live in Australia and New Zealand, this treaty is seen as favorable to Cook Islands tax authorities as well.

World's Largest Economies See Signs of Recovery

2009-10-23T13:12:00.000-07:00

FDI to BRIC countries Rising

The world's largest developing economies posted significantly higher FDI figures, signaling that the worst of the global foreign investment slump is behind us. Brazil's inward FDI rose to $ 2.5 B in September, up about 25% over August totals. Russia recorded a significantly lower net FDI outflow, indicating the return of foreign investors into the Russian economy. FDI to China rose nearly 20% in September, while FDI to India inAugust was up 40%.

Chinese Economic Growth Accelerates

China released news that its growth rate for the first 9 months of 2009 averaged slightly above 7%, but that things picked up to 8.9% in the third quarter. A significant rise from the low rate of 6.1% in the first quarter, China's economic stimulus is being credited for creating a quick rebound.

US Real Estate Market Rebounding

We finally have news to suggest that the US housing market has begun to rebound. Although pending US home sales rose for the 7th consecutive month in August, existing home sales were still slumping. However, a report released today by the National Association of Realtors showed that existing home sales in the US rose as much as 9.2% in September, the first such rise this year.

Tax & Law

Singapore recently reported a surge in offshore banking activity from Russians, but in the face of mounting pressure to improve transparency, it has changed its attractive tax structure. This week, Singapore passed a tax disclosure law aimed at forcing banks and trusts to provide information if a treaty nation requests specific information for tax purposes.

The World's Fastest Growing City

2009-09-04T02:59:00.000-07:00

Hong Kong, Shanghai, and Beijing are undoubtedly popular and powerful, but no longer China's fastest growing cities. There are several lesser-known, emerging cities that are developing at lightning speeds--but none of them quite like Chongqing. Unless you have personal or business ties in China, chances are you've probably not heard of Chongqing.

Located on the Yangtze, some 900 miles inland, it's the heart and economic engine of southwest China. Its metropolitan region (municipality) has the population of California crammed into an area the size of South Carolina. Despite its massive size and growth, it still has a long way to go, making it one of China's best investment destinations.

Statistics show that Chongqing is not only the fastest growing urban area in China, but perhaps in all the world. An estimated half million people move to Chongqing's urban core annually. So you can imagine that the local real estate market is expanding fast, giving investors great opportunities. Chongqing's real estate sales area (total space within the market) and the value of its real estate market grew by roughly 38% and 64% respectively since 2008. Unlike most cities, Chongqing has already recovered from the real estate market slump as both home prices and second-hand home prices grew by 0.2% and 3.1% respectively this year.

With an expanding and robust economy, there's no wonder why the city's population is booming. From January to June 2009, local economic growth stood at an enviable 12.6%, slightly less than last year's 14% increase.

As China's automobile sales continue to climb at over 20% annually, Chongqing will certainly benefit. It's one of four major automobile manufacturers and one of the largest industrial metals producers in the country. In fact Chongqing is becoming both the Detroit and Pittsburgh of China. For instance, Ford Motor Company's largest Chinese plant is located in Chongqing and over one-third of all China's motorcycles are produced here as well. Thanks to a growing demand for Chinese exports, Chongqing Iron & Steel Company is set to become the largest shipbuilding steel producer in China by 2010.

This mega city is also becoming the new Silicon Valley of the East. Recently, Hewlett-Packard (HP) and Foxconn Technology Group announced their joint $ 3 B investment in a laptop manufacturing hub in the heart of Chongqing. The news follows closely behind the local government's announcement that the city will host China's first 3G Technology Park, which includes major IBM and Infineon manufacturing operations.

Manufacturing is only half of what is presently driving Chongqing's growth. The city is a growing center of both research and finance. Chonqing is known for its research in traditional medicine, contemporary pharmaceuticals, and agriculture. Moreover, the government plans to make Chongqing a major financial hub by 2015 with the building of the Chongqing Financial Center in the Jiangbeizui business district.

To keep up with Chongqing's growth of commerce, an astonishing 1.5 million square feet of office space is added each year. This includes more commercial skyscrapers in the pipeline than anywhere else in China. The following are presently under construction:

- Jialing Fanying, 468 m, 105 floors (pictured at right)

- ASE Center R6 at 463 m, 88 floors

- Sun Valley Tianhe Tower 450 m, 95 floors

- Chongqing International Financial Center, 431 m, 102 floors

- Financial Street, 430 m, 81 floors

- Chongqing Global Financial Building, 331 m 81 floors

- Lanko International Mansion, 330 m, 72 floors

- ASE Center R5, 320 m, 61 floors

- Yingli Tower, 318 m, 72 floors (pictured at right)

- Poly International Plaza, 300 m, 60 floors

Huge investment in transportation and general infrastructure is underway with the building of several dozen subway lines as well as thousands of miles of roads and highways, including the completion of over 900 miles of highways by the end of 2009 alone. There's also a new airport terminal in the works, a new railway container terminal, an inland free trade zone--well, the list goes on from here.

Now you get the idea that Chongqing still has a long way to go, and its astounding rate of growth provides ample investor opportunities.

The Steel City Refuses to Rust

2009-08-13T06:40:00.000-07:00

After years of economic restructuring and in spite of a dwindling population, the Steel City is perhaps better than ever. Pittsburgh must be doing something right because The White House chose it as host of the upcoming G-20 Summit of world leaders. City officials hail the event as a chance to showcase the major improvements and attract future events. The Summit also confirms Pittsburgh's new status as a world-class city and the great American success story.

There are myriad reasons behind this success. For one the area is home to the 8th largest concentration of Fortune 500 companies nationwide, partly behind Pittsburgh's low unemployment rate and its remarkable personal income growth rate. Steel and coal giants, US Steel and CONSOL are still big players in town but the University of Pittsburgh Medical Center is now the area's largest employer. Another top employer in town is PNC Bank, which grew to become the country's 5th largest financial institution through acquisitions and its avoidance of the sub-prime mess. These large institutions are all packed into the nation's 6th densest central business district--a great place to locate your business as well.

Don't let its small population of roughly 315,000 people fool you. Pittsburgh definitely has all of the normal big city amenities: from major league sports teams to world class museums and theaters; from first-rate shopping to skyscrapers--this is definitely a major cultural and economic hub. Thanks to all this town has to offer, smart investors know that Pittsburgh is both undervalued and poised for economic growth.

It seems like just about everyone's talking about the Steel City:

- Forbes named Pittsburgh its 6th best city for job growth in 2009.

- The Economist declared Pittsburgh the 29th most livable city in the world, beating out every other city in the US.

- Mercer ranks Pittsburgh as having amongst the lowest costs of living nationwide.

- The New York Times can't seem to get enough of the Steel City, calling it both "cool" and "hip."

A renaissance is currently underway in the heart of town. Old factories and historic office buildings have recently been converted into condos, bringing thousands of new residents downtown. Several miles of the riverfront are being redeveloped and major projects are sprouting up around town:

- North Shore Center. Early this year the North Shore redevelopment brought hotels, office buildings, and retail to the area adjacent to the stadiums and new casino.

- Three PNC Plaza. Two weeks ago, Three PNC Plaza, the first skyscraper to be built since 1987 opened. A LEED certified building, the project includes a Fairmont hotel, condos, retail, and office space.

- August Wilson Center for African American Culture. Opened earlier this year, the center brought a new theater, museum, and classrooms to Pittsburgh's cultural district.

- Casino Gaming. The Rivers Casino opens this week on the city's North Shore, bringing 1000 jobs and the potential for more tourists.

- New Arena. The Consol Energy Center, is currently under construction to provide a new home for the NHL champions, the Pittsburgh Penguins. The arena will open in time for the 2010-11 season.

- Point Park University Expansion. The university recently purchased buildings along Wood Street in hopes of creating an attractive and livable university neighborhood in the heart of town. It plans to build a new academic village, a theater, residential halls, student centers and a park.

- Light Rail/Subway North Extension. The ambitions plan calls for an underground station at the convention center and a tunnel connecting to the North Shore.

For the aforementioned reasons and many more, Pittsburgh is one of America's best up-and-coming investment destinations. Below, we've listed our top 3 ways to invest in the Steel City:

1. Downtown Housing. Since only 5,000 people actually live downtown and due to a growing sentiment amongst suburbanites to live closer to their downtown jobs, an investment in downtown housing could be a good idea. There is growth in this housing market through the conversion of older buildings or developing on parking lots; however, the city government is providing incentives to developers who convert vacant upper levels of office buildings into residential space. Downtown's small size and high density of office buildings means that there is potential for property appreciation.

2. Downtown Retail. Locate a restaurant or other retail establishment in the re-emerging Market Square district or the North Shore. These areas are currently undergoing revitalization; Market Square Place is within walking distance from several Fortune 500 companies and the North Shore center gives you access to sports fans and casino goers.

3. Single-Family Homes. Nearly 50% of Pittsburgh homes have sold for less than $ 100,000 this year, but prices could go higher once the national real estate market gets better. You might be able to find a better deal than you think, especially if you're willing to buy a fixer-upper. Check the
city's inventory as well as other sources for foreclosed and distressed properties.

Top 10 Fastest Growing Economies

2009-08-10T14:12:00.000-07:00

The global economic recession doesn't mean that every economy has to suffer. The following list features countries that are still witnessing stellar economic growth rates, although slightly lower than in previous years. The majority of the countries on our list are in Sub-Saharan Africa, which are both diversifying away from primarily commodities-based economies and developing infrastructure. The remaining countries on the list are in Asia. Western nations, specifically in Europe suffered the biggest declines and aren't expected to see positive growth until 2011.

10. The Gambia +3.8%

Down considerably from last year's growth rate of more than 6%, Gambia was affected by a decline in commodities prices. Agriculture makes up the vast majority of the West African nation's economy, but tourism is now its fastest growing sector. Most tourists are European, but future growth in the industry will depend on expanding to include American tourists as well.

9. Indonesia +4.2%

Although its economic growth has slowed to a 6-year low, continued growth in government and consumer spending has kept the economy afloat. Most government and private sector development has gone primarily to the telecommunications and transportation industries which saw double-digit growth rates.

8. Tanzania +5.3%

Tanzania continues to grow, albeit less than last year, as it is less dependent on agriculture. Significant growth has been seen in the tourism, services, and mining sectors. The mining industry has grown so much that Tanzania is now Africa's third biggest gold producer, with metals exports growing at an average annual rate of 4%.

7. India +5.8%

After growing by nearly 9% in 2008 and close to 10% in 2007, things have definitely slowed down. A sharp decline in FDI of over 40% is certainly to blame, as the US overtook India as the second largest recipient of FDI this year. Economists are optimistic that economic growth will pick up in 2010, but don't expect a return to its normal 9% rate until 2011.

6. Djibouti +6.5%

A key port of entry to East Africa and the Red Sea, Djibouti has been a key recipient of FDI in the region. Most of that investment has gone to the service sector, which makes up over three quarters of the economy. Although, Djibouti's banks have benefited most, future growth will be in infrastructure--specifically with the development of Al-Nour city and intercontinental bridge projects.

5. Republic of Congo (Brazzaville) 6.5%

The growth of the oil sector over the past decade has contributed to its robust average annual growth rate of over 7% from 2005 to 2008. Home to a portion of the world's second largest rain forest, there is potential for future growth in eco-tourism as well as infrastructure development in the capital, in which 1/3 of the country resides.

4. Ethiopia 6.5%

The government's program to pave and expand the country's roadways is mainly responsible for continuing economic growth this year. As a result, travel times have been cut in half, vastly improving the flow of commerce.

Despite a slower demand for the country's chief export, coffee, lower oil prices have pretty much balanced things out. Future growth is seen in the growth of luxury exports such as leather.

3. China +7%

After slowing to a rate of 6.1% during the first quarter, China recently returned to its normal average annual rate of nearly 8%--in line with government forecasts. The "easy credit" stimulus program pushed the growth of both consumer spending and exports back to double digits. Nonetheless, the government cautions that recent growth depends largely on the stimulus due to a worldwide decline in demand for Chinese goods.

2. Malawi +7%

Surging corn, tobacco, and telecommunications industries have propelled Malawi to become Africa's fastest growing economy. Although things have slowed down this year, the country is still growing briskly. Further growth can be seen in other agricultural products like tea and sugar as well as in the eco-tourism sector thanks to Lake Malawi and wildlife.

1. Qatar +9%
Not nearly as popular as other Persian Gulf investment destinations, Qatar offers the world's fastest growing economy and one of its wealthiest consumer markets. With 15 Billion in oil reserves, the petroleum industry has long been the cornerstone of its economy. As a result, the national GDP per capita is one of the world's highest at over $65,000.

In order to maintain economic growth, Qatar has realized the need to diversify. With 5% of the world's natural gas resources, the gas industry has recently become the largest contributor to the national GDP. But, government plans to boost tourism to 1.4 million annual visitors will help revive its retail and hospitality industries.

* Average economic growth rates calculated for the first half of 2009 using respective national government and IMF data resources. Images courtesy of respective government tourism agencies.

Building a New Lagos, Nigeria

2009-06-17T06:53:00.000-07:00

Sub-Saharan Africa's largest city in its most populous country is now open for foreign direct investment. According to the World Bank, Nigeria remarkably grabbed nearly 30% of all FDI to sub-Saharan Africa last year, making it one of the continent's premiere investment destinations.

The recent development of Nigeria's oil sector is responsible for having catapulted its GDP nearly 200% in just two short years. Oil contributes roughly 20% to the national GDP and over 10% to US oil imports. Amidst global economic decline, the Nigerian economy is still expanding at nearly 3% this year and the country continues to increase both oil and non-oil exports.

As the government improves its banking sector and diversifies its economy away from the oil sector, it has attracted foreign investors that realize the country's vast potential for further economic growth. A testament to both the growth of the non-oil economy and brisk expansion of capitalism in the third world, Nigeria is home to a surging number of wealthy entrepreneurs such as billionaires, Aliko Dangote (sugar, flour, cement), as well as Femi Otedola (oil).

Lagos, Nigeria's chief port and financial hub, is at the heart of all the action. The Lagos state government is rather serious about attracting foreign direct investment (FDI) and is taking measures to open itself to international investors.

Not only has Lagos become more business friendly, it has a host of ambitious projects underway that promise to transform it from a chaotic, third-world city, into Africa's world-class center of commerce, trade, and tourism.

Housing Developments

Nigeria's Federal Housing Authority will increasingly rely on private developers to fill the shortage of housing. There is a strong need for new housing developments in the country's largest metropolitan area of over 15 million people. At an estimated average annual rate of over 4%, Lagos is one of the fastest growing cities in the world. By UN estimates, there will be over 25 million people in the Lagos area by 2015.

Developers now have a chance to help Lagos solve its urban housing crisis by providing either affordable or luxury housing units--or both.

The Lagos state government is willing to provide land and support to developers who are equipped to construct housing units--especially for low-income dwellers. Although there are many areas of town that require new housing units, there are a few mega-projects in the works that are partially designed to meet these needs.

In its early stages of construction, Lekki will be a city within a city, complete with not just housing, but office space, hotels, tourist attractions, a free trade zone, a shipping port, and an airport. In order to give you an idea of just how massive this project is, the government's master plan calls for housing for nearly 3.4 million people!

The next mega-project underway is Eko Atlantic City, another mixed-use project that will incorporate new housing developments. Slated for 8 square miles of land reclaimed from the Atlantic Ocean, this new community will soon boast modern infrastructure, pricey real estate, and access to big businesses.

Investment Properties

Both residential and commercial investment properties in Lagos have appreciated over 200% in 2008. Because demand for housing is so high, the potential for a huge return on real estate investments is high as well.

Before investing, it's important to consider the following information:

- By law, Nigeria has NO land ownership

- Property investing is only possible through a 99-year leasehold for which you get a certificate of occupancy (COO) from the state government and pay an annual fee

- After expiration of the land lease, the land is returned to the state government and the structure remains with the private owner

Property investment trends indicate that most international investors choose to build multi-unit residential structures or invest in commercial real estate projects. It's common practice for Nigerian property owners to request rent payments for several months in advance, so you should too.

Lekki Free Trade Zone Business Opportunities

Lagos is modeling the Lekki Free Trade Zone after Dubai's successful Jebel Ali Free Trade Zone in hopes of attracting more foreign direct investment. Lekki promises to be the shipping, industrial, and business hub of not only Lagos, but of all of West Africa. As an incentive for doing business in the zone, goods will be duty-free, companies may be 100% foreign-owned, and capital will not be subject to exchange controls.

Lagos Energy City Opportunities

Officials are working to convert a portion of the Badagry Town, just west of Lagos, into a massive oil and energy-related business community. At an estimated total cost of $ 1.8 B, Energy City will be complete with a light rail, a tourist/convention zone, as well as a separate zone that caters to oil and gas companies, government agencies, and other private enterprises. Again, the state government is open to private developers with the resources to construct commercial buildings.

Alternative Energy

A good way to participate on Nigeria's solar power industry is by providing it to villagers. According to Kadiri Hamzat, the Lagos State Commissioner for Science and Technology, it costs just $ 83,000 to set up a solar power system in a village of about 5,000 people. Considering that it costs over $ 1 Million to connect a village to the national power grid, solar energy is extremely cheap.

In a world that is still unconnected, electricity can enable these villagers to improve their quality of life.

At just $ 83,000 per village, large solar energy providers could easily contribute charitably to villagers by building their solar power systems. Such generous efforts will undoubtedly improve the image of your solar company and serve as further evidence for why we should continue to invest in the solar industry.

Although Lagos may seem attractive, there are two common deterrents: bureaucracy and safety. Government officials are certainly making a strong effort to attract foreign capital; however, bear in mind that the government still has a long way to go. Bureaucracy is frequently blamed for the excessive amount of time it takes to do business, but that is changing. By comparison, Nigeria ranks well amongst sub-Saharan African countries when it comes to ease of doing business.

Foreigners shouldn't assume the worst when it comes to safety because Nigeria's overall violent crime rate is lower than that of the UK, France, Switzerland, Canada, and of course the US. Furthermore, crime in Lagos state has dropped significantly in recent years in spite of explosive population growth and remains behind the Nigerian Delta region.

In the world of emerging markets, it rarely gets better than Lagos: explosive growth of both population and wealth; development in every direction; growing oil, gas, and alternative energy industries; government cooperation; and potential for tourism. Need we say more?

*Images courtesy of Lekki Free Trade Zone Corporation & Eko Atlantic City Corporation
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London Is Ripe for Investing

2009-05-22T06:53:00.000-07:00

As rental and real estate prices hit 16 year lows, London might finally be ripe for international investment. The British capital once known for being one of the world's top 3 most expensive cities has become relatively affordable--at least by London's standards. Based on Mercer's 2009 annual survey of expensive cities, London is presently less expensive than both New York and even New Delhi. Thanks to a significantly weaker British Pound Sterling and a housing market bust, new opportunities in up and coming neighborhoods abound.

Of course, these opportunities won't last for long. London will once again re-claim its title as one of the most expensive and most popular cities. At the heart of London's re-emergence will be the 2012 Olympics Games. The games and all associated projects promise to inject billions of dollars in investment into the local economy. Construction on a new Olympic Park and Village is underway and will undoubtedly transform the previously blighted, industrial East End in the Lower Lea Valley. These surrounding communities are now London's hottest up-and-coming investment destinations.

Olympic Park & Village

Over 3,300 housing units will be created for Olympic purposes but will be available to the public after the Games have ended. This will serve as one of city's newest neighborhoods, right next to the newest big park to be built in London in over a century.

Stratford

Locating in Stratford gives you extraordinary access. Located directly east of the Olympic Park in the Newham borough, you're in the center of Olympic venues. The area is home to a new town center, dubbed "Stratford City," which has converted an old rail yard into a town center complete with new shopping centers, housing, and high rise office towers.

Transportation to Heathrow, London's busiest international airport will be mitigated with the addition of the Crossrail underground rail line. The rail station will be linked to Stratford's busy underground hub station. Stratford will also welcome an international rail station, linking the community to the "Chunnel" (High speed Eurostar link underneath the English Channel) and providing easy access to Paris and Brussels.

Home prices in the area did not hold well during the recent real estate bust; however, we expect that to change. Stratford's face lift and new infrastructure will add value to property. Home sales currently average amongst the lowest in all of London at just 212,000 GBP or just $ 338,000.

Hackney (Hackney Central, South Hackney, Shoreditch)

To the west of the Olympic Village and directly east of the City, lie the East End neighborhoods of Hackney, one of London's most cosmopolitan communities. Once plagued by a bad reputation, the borough has recently become gentrified and has attracted a horde of cafes, bars, and art galleries. A new Tube extension will link Hackney Central station to the more affluent Chelsea on the West End.

Home prices in Hackney actually rose about 3% in 2008 compared to a city-wide slump. The average home sells for 311,000 GBP ($ 497,000) or 40% less than in Westminster, home to Buckingham Palace and Parliament. It's important to consider that those 311,000 pounds would have converted to about $ 606,000 had you bought at this time last year.

Bow

Located in the borough of Tower Hamlets, Bow is another of London's most accessible places. Of course the name of the borough is synonymous with the Tower Bridge and the Tower of London, both of which are located here. The area is at the crossroads of the reemerging East End to the Northwest, Stratford and Olympic Park to the Northeast and The Isle of Dogs/Canary Wharf business district to the South. It has a Tube station and is served by the new Docklands light rail system.

Bow is one of the most undervalued residential areas north of the Thames and the average home price is 310,000 GBP ($ 487,000). A year ago, that same price in sterling would have been $ 620,000.

Greenwich

With its strategic location and important role in the Olympic Games, Greenwich is a superb investment destination. Located across the Thames from Canary Wharf, on major rail lines, and close to London City airport, this previously sleepy borough has awakened. Thanks to its waterfront, parks, and the famous Millennium Dome, Greenwich will host more than one-third of all Olympic venues. As a result, the borough council offers support services to businesses who wish to benefit from the games by locating here.

Aside from business opportunities, Greenwich offers among the best property investment opportunities in the city. Home prices here average just 242,000 GBP or roughly $ 381,000, making it one of London's most affordable areas. Of course a year ago that same price in quid would have been over nearly a half million dollars.

For Britons, London real estate offers a nice bargain, but for Americans, properties are available at fire-sale prices. While everyone would enjoy the pleasures, conveniences, and glamour of Kensington, Chelsea, and Westminster, the best buys are in the reemerging areas well to the east of Her Majesty, the tourist traps, and square mile financiers.

* Sources for real estate price information: BBC and Land Registry of England and Wales.

* Photos courtesy of: Greenwich Council, London 2012 (ODA)



Goa:  India's Small Wonder
2009-05-13T07:32:00.000-07:00



Located some 360 miles south of Bombay, lies Goa -- India's smallest state with the most to offer.  With its major port on the Arabian sea and an emerging tourism industry for an increasingly wealthy clientele, Goa is one of the world's premier investment destinations for the years to come.  As a result, it has become the country's richest state by gross domestic product per capita and its economy is growing at an astounding 8% annual rate.   


Despite recent economic growth, Goa's chief city Vasco da Gama and its capital Panaji are not your typical Indian boomtowns.   With under 100,000 people each, both cities are bereft of high density, skyscrapers, and congestion--and that's what makes Goa so attractive.


Business Opportunities in Tourism:

Goa is the place to wince the wealthy, young, and hip flock for the beaches, fun, and serenity.   Although the state's pristine beaches are its main attraction, shopping, golf, and historical sites drew nearly 3 million visitors last year.  What's unique about Goa is its diverse architecture that includes that several World Heritage sites like the Mahalsa Hindu temple, the Portuguese Basilica of Bom Jesus, and the breathtaking gothic-revival Bombay High Court of Goa. Tourism is Goa's mainstay but much growth is to be expected with the rise of the Indian middle class and Goa's increasing awareness abroad.  


Business Opportunities in Offshore Gambling


Similar to riverboat and cruise gaming, Goa has begun a new industry in offshore casinos.  Goa is the only place in India that allows casino gaming.  Thus far, there are 5 ships that offer it, but Goa's Chief Minister Digamber Kamat, has hinted at the opportunities for more.   Remember, Goa state officials are actively competing with China's casino mecca, Macau.  If they're successful at attracting Indians who gamble in Nepal and Persian gulf tourists who frequent Macau, then
Goa can expect to reap tens of millions of visitors annually. 


Investment Properties


While much of the world endured two or more years of declining home sales and prices, Goa has recently seen a surge in interest, mainly from expats and retirees who find it too cheap and too scenic to pass up.  Before thinking of buying properties in Goa, be prepared and fully aware of foreign property ownership procedures:  


- Foreigners should obtain a 6-month visa and plan on actually staying for 180 days.  

- Next, you must return to your native country and request a 5-year residential visa through the Reserve Bank of India (RBI). 


- Finally, upon approval, you may return to India and purchase your property.


Individuals otherwise cannot own property in Goa without having taken these steps.  So the sooner you get started, the closer you are to owning a piece of this paradise.


Goa is truly a unique place and can provide you with great investment opportunities.  Although Goans are known to be both peaceful and hospitable, there is a growing sentiment against foreign property ownership as well as offshore casinos.  While both are still allowed, we thought it was important that you were fully aware of what's going on so that you could make the best decision.


Photos courtesy of: Goa Tourism Development Corp.




Ajman:  The Affordable Dubai
2009-04-17T06:48:00.000-07:00

Forget about investing in Dubai or even Abu Dhabi; when it comes to development and property value appreciation, Ajman has more room for growth.  The smallest of all the self-governing United Arab Emirates, Ajman is growing fastest and is seen as having the most potential to attract future investment.  Crown Prince Sheikh Ammar bin Humaid Nuaimi has ambitious plans to use all available resources to develop the emirate into a modern, world-class business center and tourism destination.  


Located just 20 miles Northeast of Dubai, Ajman is far more than a mere bedroom community.  With its strategic location on the Persian Gulf, superb natural harbor, and pristine shoreline, it's well situated to become the world's top investment destination.  It has its own thriving port with a duty-free zone and modern
infrastructure to support local and foreign-owned shipping business operations.  


But the real reason for considering Ajman is the amazing property investment opportunities.  While most of the world saw property values decline over the past 2 years, Ajman's real estate market was alive and well.  In fact, property values have increased by a whopping 100% since 2007, compared to a 30% drop in Dubai.
  

Foreign investors see continuous growth as prices here are still considered dirt cheap.  Average costs in Ajman are just $165 per sq. ft., about a third of what it costs in Dubai.  That's why its population has ballooned by over 50% in the past 2 years and foreign investment is growing at an annual rate of 7%. 



Major Projects in the Pipeline:



Ajman International Airport


Construction on the new $ 3.3 B Ajman
International Airport is presently underway.  Once complete in 2011, the airport will handle an estimated 1 million passengers annually.  The 6 million sq. meter terminal will feature an aviation school, a large duty-free shopping zone, and commercial space including several towers.






Ajman Marina


This $ 3 B project is in the works to become the city's tourist hub. Another freehold area and free zone, Ajman Marina enables foreigners to conduct business, especially suitable to the hospitality industry, to fully own housing units, or take advantage of duty-free shopping.  In addition the plan includes schools, parks, and yacht clubs.  The entire project is expected to be complete by 2013.






Ajman One



Led by AQAAR, a government-related development company, Ajman One is designed to create one of the UAE's largest middle-income property communities--something severely lacking
in this country.  


Spread over 12 residential towers, this development gives foreigners an excellent opportunity to invest in relatively affordable property in the UAE. It's worth mentioning that prior to 2002, it was nearly impossible for foreigners to fully own any property.




Ajman Uptown


Although in its early stages of development, Ajman Uptown has already sold 70% of its space.  The first stage of the low-rise and mixed-use project is expected to becomplete by 2010.  The finished project will render another mini-city equipped with its own office space, shopping centers, schools, parks, and recreational amenities.




Al Zorah


The Al Zorah Development Company and Solidere International is
building a 5 sq. mi "hi-tech city" with beaches, resorts, restaurants, shopping malls, office space, and housing
units.  The largest of all the UAE's developments this year, investors are pouring in over $ 60 Billion into this project.


Intended to be a self-sustained city, it will eventually have its own hospitals, schools, and marinas.  In addition it has served as a leader in the green building trend in Ajman; buildings in Al-Zorah city will use 35% less energy than conventional buildings.








Emirates City


A project of 12 high-rise towers, lakes, parks, schools, and shopping centers, Emirates City is half-way sold out.  A freehold development, Emirates City enables foreigners to fully own property at attractive prices.



Foreigners interested in Ajmani property should know that they can receive a year-long visa after having bought a residence and after receiving a "no-objection" letter from developers.  Given the strong economic growth of Ajman and its rapidly appreciating property opportunities, we're sure that you'll find an investment in Ajman to be worthwhile.


Photos courtesy of: UAE National Media Council, Tanmiyat Group, Al Zorah Development Company and AQAAR


View Original Article at InvestDest.com

      


                     
1


DC's Top 10 Up & Coming Neighborhoods
2009-03-16T16:36:00.000-07:00
Washington DC and its metropolitan area have recently attracted quite a lot of attention.  For one, the city was just named the top investment destination according to a 2009 survey of the world's top foreign real estate investors.  


Secondly, the area is home to some of the nation's fastest growing and wealthiest counties like Loudoun County, Virginia which has grown faster than all but 4 counties and has the nation's highest median household income.  Fairfax county,  the metro area's most populous place ranked as the nation's second wealthiest county and nearby Howard county, MD grabbed the #3 spot. 


Lastly, the DC area has been recognized for its robust and increasingly diversified economy, which held up quite well in spite of recent economic turbulence.  Here, unemployment is around 4%--well below the national average.


With so much to offer, there's no wonder why DC has become the new place to be.  Its proximity to Virgina, consistently listed as Forbes' most business-friendly state in the US, makes the metro area an attractive place to do business.  But businesses want prestige and access to lawmakers, media groups, universities, lobbyists, and legal groups.  Thus the central core of DC has become one of the hottest real estate markets in the world.


Within the past decade, DC's development has been explosive, but it's not nearly over.  The city has begun one of the largest waterfront projects in US history.  The project calls for developing thousands of acres of the underused property along the Washington Channel and Anacostia River.  Ambitious revitalization plans for neighborhoods close to the central business district are already underway and have quickly attracted a host of investor interest.  




1.  H Street, NE (Atlas District): 


This strip is the bustling heart of Washington's re-emerging East End.  Located within walking distance of busy Union Station, affluent Capitol Hill, Gallaudet University, and the new NoMa business district, H Street is a busy thoroughfare teeming with artists, small businesses, and growing investor interest.


Within the past few years, the area has welcomed the reopening of the Atlas theater, H Street Playhouse, and has welcomed new bars, cafes, clubs, retail, and luxury condominiums such as the one in which former mayor Tony Williams resides.


What makes the area a perfect up and coming neighborhood for your investment is the wide availability of profitable opportunities.  Commercial space and housing prices here are far cheaper than in other neighborhoods in Washington, at least for now.  The city is moving fast on a plan to bring a street car line as well as other developments. 



2. New Near Southeast (Capitol Riverfront District):  


At the epicenter of Washington's master-planned waterfront community is Near Southeast.  It's hard to believe that in less than 5 years, it was an under-used, blighted semi-industrial area.  


Located south of the capitol and wedged between I-395, the Washington Navy Yard, and the Anacostia river, Near Southeast is an emerging community with a lot to offer.  In just two years, the neighborhood welcomed new hotels, office buildings, including the US Dept. of Transportation's headquarters,  the Washington Nationals' brand new ball park.  Along with the additional thousands of new residents, Near Southeast has become a busy and vibrant area. 


Future plans for the area include several major mixed retail, office, and housing communities, a revitalized waterfront park, and a possible light rail route.



Further information:
www.capitolriverfront.org




3. NoMa (North of Massachusetts Ave):  

The area north and east of the capitol and Union Station has been fully transformed into a huge office park with a new Metro station, cheaper office rents than downtown, but proximity to Capitol Hill.  With neighbors like CNN, CSPAN, XM Satellite Radio, and the future home of NPR, NoMa is becoming Washington's own media mecca.


Several projects are underway that will bring new office space, housing units, hotels, and retail by 2010.  One of the largest projects in the planning stage includes the redevelopment of the city's largest wholesale and farmer's market.




4.  Mt. Vernon Triangle (Convention Center East):  


Bounded by the convention center to the west, Verizon Center (local professional sports) and Chinatown to the south, NoMa and I-395 to the East, Mt. Vernon Triangle is all about proximity.  The area was created from former parking, used car, and vacant lots into a largely residential area.  Several condominiums and a new Safeway grocery store have already opened, but so much more is to come.  Once complete, thousands of new residents, mainly young professionals and students will inhabit the area, bringing with them a demand for more retail, restaurants, and entertainment.


5.  Hill East (Stadium-Armory Area): 

 
Wedged between Capitol Hill and the Anacostia River, Hill East is on its way to becoming one of the hottest places in town.  Minutes from downtown, the neighborhood is home to RFK stadium, the DC Armory, Stadium Armory Metro.  


Hill East is home to a planned mixed use waterfront community on the 67-acre campus of a former hospital.  Plans call for a new waterfront park, offices, town homes, and retail.  Meanwhile, investors can get in on the expanding demand for multi-family units.



6. St. Elizabeth's/Poplar Point:  


The area includes Poplar Point, an underutilized waterfront park and the 300+ acre campus of one of America's most famous mental asylums--St. Elizabeth's. The project began with the redevelopment of the larger neighborhood in order to bring a new metro center at Congress Heights, a new shopping center, and new home communities.  


Now the Dept. of Homeland security will bring its headquarters and thousands of employees to the St. Elizabeth's campus.  The master plan calls for development of remaining land, affording newcomers breathtaking views of the Anacostia River and downtown.  


Unfortunately, funding has slowed the Poplar Point project, which city officials had hoped would attract a new soccer-specific stadium for the DC United.  No officials aren't expecting any major changes to the site until after 2010.




7. New York Avenue East (Brentwood, Landgon & Ivy City):  


Nearly 55,000 vehicles use New York Avenue each day making it one of Washington's busiest thoroughfares.  Commuters, visitors, travelers, and truckers pass by the area giving you access to a large potential consumer market


For years, the area has been home to the headquarters of BET (Black Entertainment Television) and Washington Times, but now it's attracted a slew of new neighbors.  Within the last 5 years, the it has  welcomed the city's only Home Depot, as well as new hotels such as a Fairfield Inn. 


A number of new projects are scheduled for this area just East of NoMa, South of Rhode Island Avenue Metro station, and West of the National Arboretum including: re-development of the old Hecht's building, one of the city's finest examples of Art Deco, a new Arbor Square mixed-use project, and the revitalization of adjacent semi-industrial streets.


8. Petworth, NW:  


Already one of DC's densest and most diverse places, new projects have been launched to revitalize the main thoroughfares of Georgia Avenue NW.  The area is increasingly host to multi-family unit investment projects.  Located in an area bounded by Howard University to the South, Walter Reed Army Medical Center to the North and four major hospitals to the East, this area is one of DC's most popular up and coming neighborhoods.


Petworth is in the heart of two major redevelopment projects--McMillan Reservoir and the campus of Armed Force Retirement Home.  Both areas will host new mixed-use areas with thousands of housing units, office space, and retail.


9. Southwest Waterfront:  


Originally redeveloped in the 1960s, the city has once again decided to improve its first waterfront community.    Located south of I-395 and north of Fort McNair and the National War College, this neighborhood is overlooked and underdeveloped, giving you great investment opportunities.


You'll enjoy the excellent skyline views, the proximity to Reagan National Airport, Downtown, East Potomac Park golf course, and the New Nationals' stadium.  


SW Waterfront is already home to the city's open-air seafood market, one of the city's favorite seafood restaurants, the new 5-star Mandarin Oriental hotel, as well as a handful of clubs and shops.  As part of the city's massive waterfront project, it will soon undergo drastic change.  Plans call for a revitalized Waterside Mall, a new waterfront promenade, an aquarium, new hotels, shops, housing, and office space. 



10. 14th Street/Columbia Heights, NW:  



In just 2 years, Columbia Heights quickly became one of DC's most sought after neighborhoods.  For a long time, it's been home to the city's largest El Salvadoran communities, the largest Ethiopian Community outside of Ethiopia, as well as an increasingly young, professional class.


Recent developments brought many new cafes, restaurants, and retail.  In 2007,  the area welcomed the city's first Target store and other large retailers.  Since then, several condominium projects have been built but trends show that future development will mainly stem from refitting homes into multi-family units.

Photos Courtesy of DC.gov


Panama's Colon Free Zone Gives You Access to the World
2009-01-15T17:02:00.000-08:00

In a land where economic growth overshadows the gloomy world economic outlook, Panama's Colon Free Zone (CFZ) is the perfect place for your business to thrive.  While the US saw a record annual decline in retail sales last year, both annual and fourth quarter 2008 statistics were up over 10% in Panama.  Thanks to the $ 5 B canal expansion project, future economic prosperity is almost certain - specifically for the CFZ.




Located on Panama's northern coast, where the canal meets the pristine Caribbean shoreline, the CFZ offers unparalleled access to world consumers.  With over $ 7 B in trading activity, Colon is home to the second largest duty-free port in the world: 


-  Hong Kong is the largest importer of CFZ goods, giving you direct access to the growing Chinese consumer market


-  Roughly 15,000 Panama Canal Tourists spend money on duty-free goods in Colon


-  Over 1 million conventional tourists visit Colon each year and the free zone is the top attraction


-  Proximity to Panama City (a scenic 45-minute drive), with the largest banking center in Latin America


The Colon Free Zone is treated as a special administrative region of Panama, one of the world's most business-friendly countries.  Any foreign individual or corporation may operate here by presenting the necessary applications (found here), evidence of incorporation, and additional references (usually from a bank).  Your main options include:


- Seek a 20-year land lease and build-to-suit (warehouse, etc.)


- Lease commercial space from the CFZ Administration


- Purchase existing commercial space from the CFZ Administration


- Purchase existing commercial space from another company (requires CFZ Administration approval)


The benefits of operating in the free zone are quite obvious:


- No commercial license required


- No minimum amount of start-up capital


- No taxes on imports and re-exports


- No corporate income taxes


- Sales of your goods are always tax-free


- Tax credits applicable if a Panamanian employee quota is met


If you thought doing business anywhere in Panama was seamless and inexpensive, then you'd be even more amazed at all that the CFZ has to offer.  Along with a booming economy in a safe, strategic locale, the CFZ is unmatched anywhere else in the Americas.






Andorra Opens Up to Foreign Investment
2008-12-22T13:40:00.000-08:00

Long known for its great ski slopes and low taxes, Andorra is one of Europe's least popular investment destinations.  Located between Spain and France in the Pyrenees, the small, landlocked principality has grown into one of Europe's playgrounds for the wealthy.


Like other countries, Andorra has recently had to cope with budget deficits, mounting bank debts, and economic contraction for the first time in over 2 decades.  In light of a decline in both investors and tourists, Andorra seeks to change its image from an "uncooperative tax haven" to a simple investment destination.  Now investors have been given an investment opportunity of a lifetime.  For the first time in Andorra's 700-year history, the government released its plan to open land, specifically ski slopes, to private investment.


What's New:


- Foreigners can now own up to 49% of Andorran companies (in luxury clothing, real estate, and skiing industries).

- 100% foreign ownership of companies in 200 industries (mainly technology-based) as 
Andorra seeks to quickly diversify.


Top 10 Reasons for Investing in Andorra:



- Andorra currently boasts over 10 million annual visitors

- Andorra is the 3rd most popular ski destination 
among Britons (after only France and Austria and ahead of Switzerland).

- Americans have yet to discover Andorra as a ski destination. 

- Vacationing in Andorra is considered a bargain compared to popular French,
Swiss, and Austrian ski destinations. 

- Andorra is a shopper's paradise, luring visitors with it's duty-free high-end retail.

- Andorra is rather small with little available development space making real estate investment very lucrative.

- As a non-EU member, Andorra has voluntarily signed the 2008 EU Savings Tax Directive and pledged cooperation in countering money laundering.

- Andorra is very stable and has been free from war, political unrest, or major economic turmoil during its entire history.

- With a population of just 80,000 and a high quality of life, crime and poverty are both virtually inexistant.

- Low taxes.


Andorran Company Formation


Incorporating in Andorra can be one of the most seamless and inexpensive experiences in Europe.  The clear advantages to incorporating here are that most companies pay no corporate or capital gains taxes.  Nonetheless, your company is required to have 2shareholders (including a 67% Andorran shareholder) as well as a minimum of 30,000 Euros in capital. But, if you're seeking access to Europe's increasingly popular ski destination and new playground for the wealthy, it's well worth it.


For further information, please visit the Andorra Investment Guide (In French).


Gibraltar: Europe's Next Playground for the Wealthy
2008-12-09T17:03:00.000-08:00
With its stunning scenery, strategic location, low taxes, and strong banking sector--Gibraltar is briskly attracting more tourist and investment money.  For centuries, the British overseas territory at the tip of southern Spain has been known for its iconic rock at the crossroads of the Atlantic and Mediterranean, and Africa and Europe.  In recent years, it's become overlooked and undervalued affording investors big opportunities.


Tourism


One reason why Gibraltar is a great investment destination is because it has yet to become popular with American visitors.  In less than 5 years, tourism has surged from 5 million to over 8 million visitors, yet Americans made up less than 5% of that total.


Surveys show that the 1,400-foot high rock, one of the legendary "Pillars of Hercules" is the main tourist attraction; however, with tax-free shopping, a Mediterranean climate, Barbary apes, 6th century Moorish ruins, and easy international access, Gibraltar is easy to love.  As cruising proves to be a cheaper and a more popular way for Americans  to see Europe, Gibraltar will continue to serve as a port of call for most western Mediterranean cruises.

Besides commercial cruisers, the increase in luxury yachters will bring many wealthy visitors en route between the US and the Mediterranean.


Real Estate

At under 4 square miles, slightly larger than Central Park, Gibraltar has limited space for development.  Consequently, developers have scooped up most of the available land.  In the last 5 years, the peninsula has been awash in development of scenic, luxury communities such as Ocean Village.  This year, Gibraltar witnessed its biggest decline in property values since 1992 (merely 4.4%), presenting new property investment opportunities.

According to Louis Montegriffo, the director of major development consultancy firm BMI Group, Gibraltar could see a 35-40% rise in property values in 5 years.  Unlike other European destinations for the wealthy like Monte Carlo, St. Tropez, and Cannes, home prices in Gibraltar are half as expensive.


Offshore Banking


Gibraltar may have kept a relatively low profile as an offshore banking destination, but its banks have amassed increasing assets of more than $ 12 B:

- Close Brothers Sets up Bank in Gibraltar Tax Haven.


- Wealth Management Firms Have Big Plans for Gibraltar.

Although the EU's 2005 Savings Tax Directive makes it more difficult for Europeans to take advantage of offshore banking, Gibraltar is serious about combatting money laundering, keeping taxes low, and promoting confidentiality.

The IMF lauded Gibraltar's anti-money laundering tactics and overall regulatory system in a 2007  report.

In order to maintain privacy while continuing anti-money laundering measures, Gibraltar has given EU residents the option of a witholding tax on bank interest payments.

Establishing your offshore account in Gibraltar means no taxes on capital gains.  Lloyd's TSB Offshore Bank provides a great service to offshore account seekers:


- Lloyd's has a AAA credit rating (Moody's), the highest for any bank in the world

- Lloyd's emerged from the global financial crisis better than most large banks.

- Low annual fees (under $ 10) and low minimums to open accounts.


Company Formation


Setting up a tax-exempt* corporation provides a seamless experience:

- The filing and incorporation process takes just 2-3 days

- Requires just 1 minimum shareholder and director

- Legal entities can be corporate directors

- Minimum capital requirements (optional authorized capital, 100 GBP paid up share capital, 1 GBP paid up capital)

- Other requirements include a registered agent, registered office, and annual tax returns.





*Chief Minister Caruana's 2002 decree which allows tax exempt corporations with up to 15% company personnel taxes.  Click here for information on company formation, trusts, limited partnerships, trademarks and patents, and yacht registry. Photos courtesy of Gibraltar Tourist Office.







Move Over Switzerland:  Luxembourg and Liechtenstein Are Europe's New Centers of Wealth, Private Banking
2008-11-17T08:55:00.000-08:00
Last year, Luxembourg and Liechtenstein became the first countries in the world where per capita incomes surpassed six figures with $ 103,000 and $ 106,000 respectively. See World's Wealthiest Countries.  It comes as no surprise as the duchy and principality have recently attracted billions in new offshore money.



The larger of the two, Luxembourg has a half million people and borders Belgium, France, and Germany.  Well integrated with the EU community, Luxembourg was one of the original EU members, having long maintained an economic alliance with Belgium and the Netherlands (Benelux).  Nearly a quarter of the economy is now directly related to offshore banking and the financial industry.



With over 200 offshore banks and over $800 B in assets, Luxembourg has recently become Europe's top private banking destination, beating Switzerland for the first time in history.  Like Switzerland, Luxembourg is perceived as very safe and stable.



Americans without companies registered in Luxembourg can enjoy the tax-free privileges of offshore banking.  Because of the 2005 EU Tax Savings Directive, residents of Luxembourg and most EU countries are subject to Luxembourg's extremely high taxes.  Opening an offshore account here comes with standard requirements including: a valid passport (and copies), a bank reference, and utility bills.  



Liechtenstein



After Panama, Liechtenstein is known for upholding the strictest bank privacy laws in the world.  Some Germans often joke that Swiss bankers bite their tongues, but in Liechtenstein they cut them off.  



Unlike Luxembourg, Liechtenstein did not sign the EU Tax Savings Directive, thus it had previously attracted more money from EU nations.  Now things have changed as the EU has put a lot of pressure on Liechtenstein to release tax information on Germans and British tax refugees.  Perhaps, Liechtenstein is still a great tax haven for Americans and Canadians, but no longer for Europeans.



Prince Hans-Adam II, one of the wealthiest world leaders with over $5 B owns LGT Bank, the country's largest.  The bank has been subject to frequent German tax evasion investigations in recent years and its banks have drawn international scorn.



Taxes here are relatively low compared to other European nations as both income and corporate local and national tax rates are between 18-20%.  Asset taxes are low, between 0.162% and 0.85 %.



What makes both Luxembourg and Liechtenstein great investment destinations isn't just because of the banks.  Both countries have wealthy and highly educated consumer bases, and are close to larger neighboring economies (i.e. Germany and France), without all the restrictions, restraints, and high taxes.




Mauritius Is Paradise for Business
2008-10-02T09:29:00.000-07:00



Mauritius is not only a safe and business-friendly nation, it's a true hidden gem amongst the world's best up and coming investment destinations.  Located just east of Madagascar in the India Ocean, this island nation is close to several emerging markets in both Africa and Asia.  In fact, Mauritius is considered India's top investment destination attracting over $ 10 B in various sectors of the economy.  With strong manufacturing, agricultural, financial, and tourism industries, it has become a very well-diversified economy.   As such, Mauritius has maintained a brisk annual economic growth rate of roughly 5% since the government implemented economic reforms over 30 years ago.  This year, however, the country expects to witness an astounding 5.6% growth rate.  In light of growing trade relations with China and India, more economic growth is sure to follow.



Over the last 10 years, Mauritius has become an offshore hot spot, having already registered more than 32,000 offshore entities. Non-resident Indians have increasingly used the entities for tax shelter.  Since the entities are also a way to funnel international money into India, the Indian government allows the practice to continue uninterrupted.



Offshore company formation is inexpensive and seamless.  Forming such an entity (GBC I) costs just $ 2,000 with only $1,500 in annual fees.  There's a competitive tax rate of no more than 15%, but you'd be eligible for an 80% foreign tax credit.  Since the process takes less than 10 business days, the World Bank's "Doing Business Survey 2009" ranked Mauritius as the world's 25th easiest place in which to do business, the highest ranking in Africa and the Indian Ocean region.  




The country's offshore banking law allows licensed banks to accept deposits from and lend to foreign clients without exchange controls.  In fact, some of the world's largest banks have a significant offshore presence in Mauritius including HSBC, Barclays, and Standard Chartered Bank.



Earlier this year, Mauritius' principal stock exchange, the SEMDEX.MDEX hit an all time high.  The index  attracted a 170% increase in investment over last year as foreign money sought a safe haven.  As a correction has just occurred along with other world markets, it might soon be time to consider investing.



Unlike the real estate slump affecting most of the Western world, Mauritius is still benefiting from strong demand in its housing market.  One of the country's newest and largest housing developments, Villa Valriche, just reported that it has sold nearly all of its million dollar properties.  The truth is that highly desired tropical islands such as Mauritius, Bermuda, Tahiti, etc. always  have a high demand for housing, even during global real estate slumps.  That's why huge Indian developer, Omaxe made a deal to build another new home project in Mauritius.  



Businesses  can take advantage of easy access to some duty-free goods and access technological infrastructure.  For one, a customs-free zone for re-exportable goods (Mauritius Freeport) is located in Port Louis, the capital.  In addition, the island's Cyber City was launched a few years ago to provide a huge telecommunications network to businesses over both satellites and fiber optics -- truly at the forefront of information technology.  Unlike other small islands with limited and expensive resources and technological infrastructure, Mauritius is a place where your business will thrive.



Since Mark Twain visited the island and said, "You gather the idea that Mauritius was made first and then heaven..."  There are certainly many reasons for visiting Mauritius.  That's why nearly 900,000 tourists visited the island, a 100% increase from ten years earlier.  Besides its beautiful beaches, proximity to pristine coral reefs, and excellent weather, Mauritius offers tourists casino gaming.  As gambling is either illegal or very limited in India and most of East Africa, Mauritius could become the playground to new money in the developing region.  Now luxury has arrived in Mauritius with yesterday's opening of the Four Seasons Resort at Anahita.    The resort features an 18-hole golf course, a private island and lagoon, and nearly 11 acres of beachfront property.  



Mauritius is a stable, well-located, highly developed and business-friendly piece of paradise that is waiting for you.  Here, you'll find an easy and inexpensive incorporation process, access to everything your business needs and a booming economy.  Simply put, it's hard to find another tropical island quite like this one.



Investors Are Turning to Djibouti
2008-09-08T18:35:00.000-07:00

Most people have never heard of Djibouti and even more couldn't locate it on a map.  Thanks to its strategic location and accessibility, the country is well on its way to becoming Africa's top investment destination.  Wedged between Ethiopia, Somalia, Eritrea, the Red Sea, and the Gulf of Aden Djibouti has a thriving harbor which supports its inland neighbors.  With airline connections to Paris, London, Dubai, Addis Ababa, Jeddah, and Nairobi and its proximity to the wealthy gulf states, foreign investors are betting that Djibouti will become a business and shipping hub for Northeast Africa.  As a result, Djibouti's economy is growing and there are planned developments in the works, such as the intercontinental bridge, the Djibouti-Ethiopia railway, and an airport expansion.  The country also boasts stability and one of the world's most business-friendly environments.

Safety and Stability

Although the US State Department gives Djibouti a high crime threat index, the truth is that crime rates here are still far lower than what they are in the US. According to INTERPOL data, the murder rate here is one-third lower, robberies are 75% lower and rapes are over 85% lower than rates in the US.Unlike its neighbors that have been wrought with conflict over the past few decades, Djibouti has remained relatively stable since independence in 1977.  Its stability has made it the chief recipient of regional investment dollars.  If safety is still your concern, it's certainly worth mentioning that both France and the US have maintained military presence here--both undoubtedly realize Djibouti's strategic importance.

Foreign Direct Investment

Djibouti's government strongly encourages investment in national industries and has pursued open economic policies.  You'll find very few business regulations and even fewer restrictions on foreign direct investments.  Investors have noticed that the government is quick to respond and is extremely cooperative.  Consequently, investment here has been explosive.  Since 2000, the economy has been growing at a brisk 5% average annual rate and foreign direct investment has ballooned from $ 3 M to $176 M.  Officials expect GDP growth to be closer to 7% in 2008 and for foreign direct investment to continue to grow.

In 1995, Djibouti was declared a free-export processing zone and has since seen a host of new investment projects:

- Dubai International has poured over $2.2B in the construction of a deepwater port and oil terminal at Port Dorale, the management of Djibouti Port, Djibouti International Airport, and the Djibouti Free Zone (through Jafza International), including the country's first and only 5-star hotel.

- Dubai Customs World has built Glafi Post, a checkpoint on Djibouti's border with Ethiopia.  It's now the busiest transit point for land-locked Ethiopian cargo trucks headed to and from the port of Djibouti.

- Italian consortium Consta-Joint-Venture will contribute 50M euros for the restoration and upgrade of the Djibouti-Ethiopia Railway.

- Kuwaiti Al-Ghanim & Sons Group plans to partly invest in both the Djibouti-Ethiopia railroad and in desalination plants in the country.

- Qatari Diar Real Investment Co (Qatar Investment Authority) plans to construct a 300,000 sq ft. mixed-use project in Djibouti city.

- Dubai-based Middle East Development, LLC released its plans to construct a Red Sea bridge linking Djibouti and Yemen.  The $200 B project is scheduled to be completed in 15 years and will be 28 kilometers long.  San Francisco-based Bechtel has also expressed interest in participating in the project.

- In close relation to the transcontinental bridge construction, Al-Nour Holding company CEO Tariq Bin Laden has conceptualized the Al-Nour (Al-Noor) twin cities on either side of the bridge.  The ultra modern cities will be full of glass skyscrapers, beachfront communities, and superb infrastructure.  The project's goals include an integrated regional economy.

- Washington, DC-based Emerging Capital Partners (ECP) has invested more than $30 M to develop one of the largest salt reserve mines in both Djibouti and the world.

- IFC and Reykjavik Energy (Iceland) have signed a contract for the development and exploration of Djibouti's geothermal energy resources.

The government has identified key sectors that it hopes would attract foreign investment:  port, tourism, manufacturing, and telecom.  You'll be happy to know that you can receive assistance at the National Investment Promotion Agency (ANPI, for its French name), whose goal is to become a one-stop shop for all your foreign investment needs (Click here for further details). As a member state of the Multilateral Investment Guarantee Agency and a recipient of Overseas Private Investment Corporation programs, Djibouti offers investors up to $400 M in insurance against non-commercial risks.  Furthermore, investments of more than $280,000 are eligible for exemptions of license and registration fees, as well as property and corporate taxes.

As you can see, Djibouti is in its beginning stages of long term development and economic growth.  With investments from wealthy Gulf states and through the government's attractive business climate, the country has a long way to go to realize its full potential.

Photos courtesy of Tourism Encyclopaedia Britannica.  
               



You Can't Go Wrong with Vancouver
2008-08-25T12:08:00.000-07:00

 
   One of North America's most important cities is also one of its most livable. Vancouver is blessed with scenic mountain views, a superb natural harbor, and great weather. With its diverse economy, great infrastructure, low crime rate, and strategic geographic location, Vancouver offers plenty of jobs, tourist money, and investment opportunities. 

Investors from Hong Kong have long favored Vancouver as an investment destination over other cities in the Americas. In short, here's why they and others think it's so great:

                             - It's Canada's largest port city, a vital gateway to the Pacific, China, and Southeast Asia; it exports more than any other port in North America; and it's the western terminus of the Trans-Canada highway and railroad.
- It's one of the world's largest centers for forestry, logging, and the lumber industry as a whole. As China requires more paper products, expect a surge in Vancouver area exports.
- It has the world's largest concentration of mining companies with offices in the CBD and with operations in British Colombia and the world.
- After Toronto, it has Canada's largest banking industry. HSBC Canada is headquartered here and Royal Bank of Canada, TD Bank, Scotiabank, CIBC, and Bank of Montreal (BMO) have significant regional operations here as well.

Television and Movies

Vancouver, or "Hollywood North" as some call it, has Canada's largest television and motion picture industry, grossing over $1.2 B annually. Since the 1930's, movie makers have chosen to shoot here instead of Southern California. Today, the city is home to a host of film schools, media arts centers, studios, and production companies. After Los Angeles and New York, more films are produced here than anywhere else in North America. Vancouver's movies are not all just second-class. Some are major box office hits like I, Robot, X-Men, and Fantastic 4. Successful television programs like Smallville, Reaper, Stargate Atlantis, and The L Word are also filmed in the city. Since costs are a lot less and the process is more seamless, Vancouver has become an attractive alternative.

The Olympics

The 2010 Winter Olympic Games is less than 2 years away and development in the heart of the city is in full swing. As a result 280,000 jobs have been created (RBC report) and unemployment has been halved to 4%. Hosting the Olympics is expected to pump in a net $ 10 B into the local economy. Local, provincial, and national governments have already committed over $1 B for construction projects like the new convention center expansion, the new Hillcrest/Nat Bailey stadium, upgrades to the BC Place Stadium, the Olympic village at Whistler, the conversion of industrial areas into livable communities, widening area highways, and even the creation of the Hydrogen Highway (a stretch from Vancouver airport to Whistler with hydrogen fueling stations).

Fuel Cell Technology

The region is at the forefront of fuel cell technology. In fact, it's home to the National Research Council Institute for Fuel Cell Innovation (NRC) and the headquarters of some of the largest developers of the technology. It's estimated that Canada has a 30% market share in the $ 2.5 B fuel cell industry and that 70% of those employed in the industry work in and around Vancouver. The NRC even forecasts a ten-fold increase in the industry by 2017. So investing in Vancouver's fuel cell industry could be a profitable idea.

Vancouver's own Ballard Power Systems (BLDP) is a pioneer and leader in the fuel cell industry. It recently released a mostly positive second quarter report. It posted a 15% quarterly increase and a 51% year-to-date (YTD) increase in product shipments. YTD revenue was up 12% and operating expenses were down by about 30%. Just a few weeks ago, the company extended a service contract with Daimler to provide fuel cells to buses in Hamburg, Germany. As more cities go green, you can expect an increase in business.

Tourism

Vancouver may not have lived up its full tourism potential. It's often a port of call on Alaskan cruise itineraries and they've become extremely popular in recent years. As the cruise industry grows, expect the city to benefit. Presently over 1 million people use Vancouver as a gateway for their cruise vacation. Investors should know that cruise ships dock at Canada Place, which has a hotel, convention center, IMAX and lots of shops and restaurants.

An additional 6.5 million visitors stay overnight in the city, visit the aquarium, take harbor cruises and peruse the city's diverse neighborhoods, spending nearly $ 2 B annually. After the Olympics showcases the city, you can expect the number of visitors to increase.

Outside of the city, the region's ski slopes are amongst the best in the world. Located a mere 20 minutes' drive from downtown, Whistler Mountain offers skiers and sightseers fun in the snow and spectacular views of the city. The Whistler-Blackcomb resort, co-host to the 2010 games is one of North America's largest and most popular skiing destinations.

Quality of Life

As you may know, Vancouver is one of Canada's warmest cities with a temperate marine climate ensuring mild temperatures year round, averaging between 40 and 75 F (6-23 C). It's not as rainy as most people think, with just 47 inches of precipitation annually (about the same as New York City )and an average of over 285 days of sunshine each year (about the same as San Francisco).

Consistently ranked as one of the best cities in the world in which to live, Vancouver lives up to its reputation. In Mercer's 2008 Quality of Living survey, Vancouver ranked 4th after Zurich, Geneva, and Vienna. Determinants for the survey are culture, personal freedom, economy, available public services, stable climate, education and recreation, and of course, safety. In fact violent crime rates here are far lower than most US cities with comparable population.

Vancouver has become one of Canada's most diverse cities and the only one with a majority-minority population. Over 50% of the city and over 40% of the metro area as a whole has a first language other than English. Vancouver is also home to some of North America's largest Chinese and East Indian communities.

Strong Real Estate Market

The real estate market in Vancouver is expected to do well through 2010. Although there is presently a correction unfolding in the Canadian housingmarket, supply and demand for homes are expected to even out. Unlike in US cities that recently witnessed an oversupply of new homes and risky lending practices, the situation is a lot better in Canada. Vancouver is a little different. City and provincial leadership has made it clear that they favor high density development over urban sprawl. Thus, you can expect property values to increase as developers run out of space.

The city's most popular neighborhoods are north and west of the city's historic center. These are also amongst the densest, developed, and affluent sections, such as Yaletown, West End, Financial District, and Kitsilano to name a few. We've included a few up and coming neighborhoods around town, where you'll find more affordable housing, more development underway, and better investment property opportunities:

Mount Pleasant is at the crossroads of Main Street and Broadway where you'll find Vancouver City Hall. Once largely known as a blue-collar community, it has changed in recent years because of its central location and the construction of a new light rail line (opening in 2009). The area is also known as Brewery Creek or South Main.

Downtown Eastside is the oldest part of town and one of the most diverse. There's a mix of pre-20th century architecture but a growing amount of development and gentrification. This area encompasses portions of Gastown and is adjacent to Chinatown and old Japantown.

Strathcona is one of the city's oldest primarily residential neighborhoods and has largely been working class. Given its central location and lower density, it has been attracting a slew of newcomers. Adjacent to Chinatown, it's become a predominantly Chinese-speaking but is still quite diverse.

Kensington-Cedar Cottage is in the east central portion of town and is one of the city's most diverse areas, as over two-thirds of residents aren't native English speakers. This area has some of the best views of the city's skyline and the mountains to the East. Furthermore it's an increasingly popular neighborhood for young professionals seeking more affordable housing.

It's quite obvious that Vancouver is well on its way to becoming a true world-class city. With so many positive attributes, it's easy to see why it's our favorite Canadian investment destination.


Macau Still Poised for Growth
2008-08-07T07:58:00.000-07:00
Over the past decade tiny Macau has managed to grow at an unfathomable pace, but it's not over yet. A recent economic and real estate market correction has brought new opportunities to investors who missed out.
 Americans know little about Macau, a subtropical former Portuguese colony and now special administrative region off the southeastern coast of China. With land area less than the size of Manhattan and with about a half million people, Macau is one of the densest places in the world. Like Hong Kong, the powerful business hub to the north, Macau too has a business-friendly environment and attracts a great deal of foreign direct investment.
 If Hong Kong were China's New York, then Macau would certainly be its Las Vegas. Actually, gamblers spent more money here than in Vegas--a cool $ 8 Billion. Taxes from casino gaming made up about 75% of government revenue. Unlike Las Vegas, Macau offers beaches, genuine colonial architecture, narrow streets reminiscent of European cities, and close proximity to over 1 billion people.

    
Macau's casino industry and colonial attractions have propelled it to one of China's top tourist destinations. Its tourism industry has more than doubled since 2003 as it welcomed over 27 million visitors last year. Although roughly 75% of tourists are from both mainland China and Hong Kong, the news is spreading fast. Officials expect more international arrivals from Europe, the States, and Australia, and Macau could soon become one of the world's top tourist destinations.
  Tourists will notice that Macau is much cheaper than Hong Kong and nearly as safe. Macau's local currency, the pataca is worth about 12 cents to every US$ 1 and cheap Chinese labor keeps expenses low. Tourists can walk about Macau without worry as violent crime rates here on a whole are far lower than in US cities.
 Macau's recent economic growth makes Hong Kong look like Michigan by comparison. Since 2001, the economy has grown by 13% annually, GDP growth has been at an astounding 30% since 2006, and unemployment is just 3%. Pricewaterhouse Coopers expects casino revenues to continue to grow by an average of 16% annually until 2010. Couple that with big construction projects such as the proposed 18-mile long bridge-tunnel connecting Macau to Hong Kong, where most of Macau's investors reside and a huge $4 B theme park. So, Macau is still attracting a steady flow of capital and of course, its future looks bright.
 Offshore Corporations in Macau
 Macau has long been an offshore destination and tax haven, but things have changed. As too many people from Hong Kong took advantage of the system, Hong Kong officials pressed Macau for change. Now, the local government applies a 15% flat corporate/individual tax rate on profits exceeding about $ 38,000 and just 2 to 14% on profits less than that amount. Income taxes never exceed 15%. Nevertheless, $125,000 gets an offshore corporation and exemptions from income and industrial taxes, provided that it is in one of the following sectors: archive filing, data processing and warehousing, information consulting and programming, research and development, ship and aircraft operations, and technology testing and analysis. Furthermore, foreign employees of offshore entities get income tax exemptions for up to 3 years. The best part is that offshore entities get anonymity, privacy protection, minimal requirements, and flexibility. For more information, please click here.
 Investment Opportunities
 Las Vegas Sands (LVS) recently opened the Macau Venetian Casino and Resort, similar to the original in Las Vegas. As the company's president William Weidner put it: "Macao is on the verge of becoming the world's top revenue-producing gaming market. With more than three billion people within a five hour flight, Macao is poised to become the gaming and leisure destination of choice for a significant part of the world's population." The company's stock price more than doubled between 2006 and 2007 and it recently corrected from a high of $140. Now, shares are very attractive to investors at just $40 to $50.
 Wynn Resorts (WYNN) is betting on Macau for future company growth. The new Wynn Macau Resort has a casino, 5-star amenities, and a great waterfront location. Like LVS, WYNN's stock price has more than doubled between 2006 and 2007 and recently corrected from a high of $160. Investing in the company seems more attractive with a $ 3.80 earnings per share (EPS), a relatively low price-to-earnings (P/E) ratio, and a much lower share price.
 MGM Mirage (MGM) opened the MGM Grand resort/casino in Macau last year. Its stock price more than tripled between 2006 and 2007 and has recently corrected down to about $30, giving investors another great buying opportunity.
 Industrial and Commercial Bank of China (ICBC, listed in the U.S. as ICBAF.PK and IDCBF.PK) is already one of China's largest banks, but recently acquired a majority stake in Macau's Seng Heng Bank in order to gain access to all that gaming money. In light of the recent banking crisis, shares have plummeted and seem to be settling at current prices.
 Speymill Macau Property (SPYUF.PK) acquires, develops, and sells property in Macau. The stock faced a significant correction bringing it's price just above its 52-week low.
 Macau Real Estate Market
 As previously mentioned, Macau is very, very tiny. Land for development is extremely scarce; however, like any other tourist mecca, Macau is attracting more and more newcomers every year. For instance, it's seen a 30% increase in non-resident workers last year alone. Thus expect Macau to one day rival London, New York, and Hong Kong when it comes to pricey properties.
 Many investors have been cautious since the recent pullback in the real estate market. Yes, overdevelopment is an intermediate issue, but the outlook remains promising. Keep in mind that Macau's economy is expanding at phenomenal annual rates and, again it's extremely tiny. Your property investment must appreciate in the long run in one of the 4 principal areas of Macau:
 Macau peninsula, the old town and colonial Portuguese city. It borders mainland China and is where all the pre-twentieth century architecture remains.
 Cotai Strip is on an island separated from the Macau peninsula. If you've ever been to Vegas, you'll notice similarities as this is where the largest concentration of casinos can be found. At less than 3 square miles, it's where you'll find most development and investment activity. Property values here average between $ 20 and $ 30 million per acre!
 Taipa is the mostly residential area in between Cotai and old Macau and has most of the area's mid-priced real estate.
 Coloane is the southernmost section of the region and is where you'll find beaches, parks, resorts, and golf courses. It's Macau's own green retreat. The few available properties here are amongst the city's priciest.
 Macau is more than a place--it's a story of contrasts between the Orient and the West, history and modern pleasures, and urbanism and respite. Macau must continue to grow economically, because the Chinese are just beginning their rise to wealth and Macau is their playground.
Photos courtesy of the Macau Tourist Office.



Tourists and Investors Get a Warm Welcome in Reykjavik, Iceland
2008-07-29T10:19:00.000-07:00
July 29, 2008 at www.investdest.com

Reykjavik is a small capital city in the tiny island nation of the north Atlantic -- Iceland.  In a place where unemployment, violent crime, and smog is nearly inexistent, it really is a refuge both physically and economically.

Iceland is          one of the least visited western European countries, but that's about to change.  Iceland Air now has new  connections          to the East Coast and continental Europe.  Nature loving tourists will love the country's rugged coast with whale watching opportunities, green fields          and long days in the spring/summer, and of course -- the geysers and geothermal spas (hot springs). The country's many hot springs, such as Blue Lagoon          (pictured below, courtesy of Icelandic Tourist Board) is known for its purifying and revitalizing effects.



The country's recent surge in tourism is a testament to its unique landscape and endless attractions.           Tourism has grown tremendously, averaging nearly 15% since 2000 and it seems to be picking up, not slowing down.  In          2007, for instance, the number of tourists in Iceland grew by over 20% compared to 2006 (See the European Travel Commission Report).  Since the country welcomes less than 400,000 visitors annually and since there's plenty of room for growth, cashing          in on the tourism industry would be a profitable idea.

It's well worth mentioning that Reykjavik has also become a cruise ship port of call.  As cruising grows in popularity and as more and more tourists seek northern Atlantic and Balkan itineraries, Reykjavik will increasingly become a desired destination for both premium and luxury vessels.  So you can expect even further opportunities.

The city itself is a quaint yet vibrant mix of history, modern conveniences, and natural beauty.  Near the southeast coast, there are views of the pristine ocean and mountains as well.  Reykjavik bears striking resemblance to Norwegian coastal cities with its wooden colorful homes, cobblestone streets, and baroque national landmarks.  Tourists will love local cuisine with fresh seafood, lamb, and of course plenty of great beer.
 
  

 
Travelers will undoubtedly take note of          the clean and fresh air that's due not only to the sparsely populated and underdeveloped landscape, but the country's          energy use.  Unlike other developed nations, hydrogen powers most cars in Iceland.  Now, Iceland is one of the most          oil-independent nation on earth.  So the rise in cost of oil won't make Iceland as prone to inflation over the next          years as elsewhere.

Reykjavik is by no means cheap, but compared to other important cities in Western Europe, Iceland          is at least better.  The recent currency depreciation trend made Iceland a whole lot cheaper since it was named one          of the most expensive cities in 2005-06 studies.  For example, a four-star hotel such as the Radisson would run you US$          208 compared to about $ 250 in New York.  A cup of coffee or a hot dog will run about $3.50.

Doing business in Iceland is very easy.  Forming an EHF corporation takes a couple of days, just US$ 6,200, and minimal individuals.  New business ventures get major incentives like a 12% refund of costs for launching film or TV production.  But best of all is that Iceland has much lower corporate taxes than in EU member states, having been reduced from 30% to just 18% in 2002.  For more information, please visit www.invest.is

Investment Opportunities

The country is a literal hotbed of energy. You may be aware that Iceland has and uses its own geothermal energy to power up Reykjavik.  Metal producers have thus moved smelting operations to Iceland where "free" energy is readily available to cut energy costs. With the rising prices of oil, natural gas, soybeans, and other energy commodities, expect many producers to fail over the next few years except for the following attractive long term investments:

BHP Billiton (BHP) was the first major aluminum producer to set up          shop in Iceland back in 2006 and has been an utter success since then.

Alcoa (AA) followed suit and moved smelting          operations to Iceland in 2007 and operating expenses are down significantly since.

Rio Tinto (RTP) bought Icelandic          smelter Alcan for US$ 38 B in order to join the other major producers at cutting costs with geothermal energy.           

Century Aluminum (CENX) faced several hurdles as conservationists vowed to "save Iceland" and cease          further construction of smelting facilities.  Century released its plan earlier this year to begin smelting by 2010. But in the meantime, energy costs continue to drain the company.  Perhaps          it'll be worth buying next year. 


As previously mentioned, the Icelandic Krona plunged to a new low against most major currencies on concerns that its banking sector would have trouble this year. The country's central bank reassured investors and even raised key interest rates to 13% to encourage holding Kronas, their highest rate ever. The Krona is terribly oversold and will rebound this year as banks and institutional investors seize the opportunity to take out loans in currencies with low interest rates, like the US Dollar, Swiss Franc, or JPY and re-invest them in Icelandic Krona (currency carry-trades).

The 13% Icelandic savings bond might be enough to lure you there, but the imminent increase          in the Krona's value will add to your savings bond investment.
If this sounds attractive to you then the easiest          way to obtain one is through the following:

Everbank.com has had online bank accounts available with the ability to          get a 3-month certificate of deposit (CD) at 13% .  Contact them for further details.

With its emerging tourist industry, business-friendly environment, an undervalued currency, a double digit interest rate on savings bonds and low energy costs, Iceland truly is a destination investor's dream.

Photos courtesy of the Iceland          Tourist Board


Dakar: Your Gateway to West African Opportunity
2008-07-16T15:56:00.000-07:00
Originally Posted on July 16, 2008 at www.investdest.com

Dakar is the western-most African city on its way to becoming a major regional business hub. Located in French/Wolof West African Senegal, Dakar enjoys a tropical climate with distinct wet and dry seasons. Situated on the Cape Verde peninsula, the city is surrounded by sandy beaches, a thriving harbor, and has a beautiful mix of old French and modern architecture.




Popularized in the West by the annual "Dakar Rally," the off-road race from Paris to Senegal's capital draws thousands of tourists and grabs media attention.  Besides the race, the French have long vacationed on Senegal's beaches as airline connections to Paris are convenient and affordable

Dakar is a major regional financial center and is the primary choice for Europeans doing business in West Africa. For one, its home to more banks than any other West African city. It's home to BCEAO, the central bank of the West African CFA currency as well as home to many international NGOs. Dakar's even the preferred regional port for transatlantic and European shipments.  It's strategic location ensures that capital will continue to flow into the city for the foreseeable future.

Dakar's Senghor airport is a stop-over for transatlantic flights between the East Coast and South Africa. Delta Airlines, the only American air carrier in Africa services Dakar. Air connections are also available to the rest of Africa, Europe, and the Middle East with such air carriers as Air France and Saudi Arabian Airlines.

The          Economy

Senegal's economy is developing at a brisk yet healthy rate.  Its gross national product (real growth rate) has been consistently averaging a robust 5.5% since 1997 and its industrial production rate is about 3% with no end in sight.   About 70% of Senegal's labor force is engaged in farming and arid neighboring countries like Mali also depend on Senegal's food exports.  Awakening giant, India has become Senegal's largest importer.  As India continues to develop, Senegal will undoubtedly become even more economically powerful and its reliance on Senegal's fish, cotton, nuts, and vegetables will keep things moving.  China has also paved the way for an increase in Senegalese imports, especially textiles, farm products, fish, and minerals by announcing tariff exemptions on all Senegalese products.

Safety

You'd be happy to know that Senegal has one of the lowest violent crime rates in the world.  According to INTERPOL data, the murder rate was just 0.33 per 100,000 people. Compare that to Japan's 1.41 rate and the US' 5.5 rate.  Rapes, thefts, and robberies are all far lower than even Japan and of course, the US.  After Iceland, Senegal is the safest country in the world!  Tourists and those who frequent Senegal will tell you that the nation is home to some of the friendliest and most hospitable people you'll ever meet.  You'll also like to hear that the country has one of Africa's lowest HIV/AIDS rates at just 0.8%.

Senegalese are often described as tolerant, warm, and hospitable.  In fact, "Senegal" literally translates to "our boat" signifying that everyone present is together in the same boat.  With such a diverse population, it's easy to see how many religions (Muslims, Christians, Buddhists, Native religions, etc.) and languages (Wolof, Halpulaar, French, etc.) can peacefully coexist.

If political stability is your concern, then Senegal is your haven. Last year's presidential          election was declared, "free and fair" (BBC Article) with no reports of political killings (Russia, for example did have politically related killings last year). It's worth          mentioning that the French still maintain a military base here.

Tourism Potential

Since the 1970's, Dakar has been a tourist destination for the French; however Delta's new service from the US to the airport, low costs, the spectacular beaches, and the great weather will certainly bring new tourists for the years to come.  The center city, or "Le Plateau" has a very European feel.  The narrow streets are lined with a blend of French colonial style buildings and modern high rises.  The city's small parks, squares, and the shore on three sides of this peninsular city provide a relaxing relief.  You'll even find several beach resorts in and around town from Club Med to Le Meridien in the northern quarters of the city, N'gor and Yoff.  With such assets, Dakar is an ideal developing city.

 


As cruising proves to be the cheapest way to travel and vacation, it's worth noting that Dakar has increasingly become a high-end cruise port of call and will attract more cruise ships within the next few years. Tapping into the increase in cruisers with a shop near the port area could give you an excellent business opportunity.

Outside of Dakar, tourists can venture to a number of beaches, national parks,          and historic landmarks.  Many tourists travel by ferry to Gorée Island where they'll find Fort d'Estrées,          a nineteenth century French fort.   Or, head a few hours north to the picturesque French colonial shore town of          Saint-Louis.  Beyond the cities and shore, is Senegal's vast landscape teeming with elephants, lions, aardvarks,          crocodiles, and ostriches as well as lots of endemic species.

Wedged in the middle of south central Senegal is          the small, wealthy, oil-rich nation of the Gambia.  Here, tourists will find Western Africa's own Stonehenge at Wassu,          an ancient stone circle that is a growing tourist attraction.  Like elsewhere in the region, everything is accessible          from Dakar.

Open for Foreign Investment

The Senegalese government is open to wholly-owned foreign corporations operating in the country and has tax exemption          incentives for foreign investment in the Dakar area.  You'd qualify for these incentives with just US$ 7,000 and          by employing 3 Senegalese (for more information, see aabf.org's Senegal investment guide or visit APIX, the national investment office).  With so many foreign banks, including CitiBank, you'll be able to take care of all your financial transactions with ease.  With regards to property rights, foreign investors are treated equally with a legal system based on the French law.  Operating a business can certainly be an easy and inexpensive experience.

We're not the only ones          who think Dakar is a great investment destination.  According to the IMF's late 2007 forecast, Senegal will see an 800% increase in foreign direct investment by 2010.  Just take a look at these groups that are          planning to get a piece of the action:

-  Jafza Jebel Ali Free Zone (Economic Zones World/Dubai World) signed          a contract for the development of the Dakar Integrated Special Economic Zone (Jan 2008).  The project expects to host 1,000 companies, creating employment growth for the next 2 decades and will be integrated          with tourism, residential, and commercial development

- In October 2007, Senegal handed over developing and operating duties of Dakar's shipping container terminal to DP World (Dubai World).        

- Aureos Capital announced in October 2007 its pledge of US$ 2.86 M to Compagnie Sahelienne (Matforce) which sells car and energy equipment. 
- Iran bought 34% of state-owned oil producer, SAR in September 2007.
 - Last year, ArcelorMittal announced plans for a US$ 2.2 B iron ore mine project in Senegal.
 
So if you're searching for a safe getaway spot where you can live bigger for less, have great weather, and access to a cosmopolitan city, the shore, and nature, then the Dakar region is for you.  If you're looking to start a business in a robust and business-friendly economy, or trying seeking a tax haven, then Dakar is certainly a great investment destination for you.  Feel free to send us questions and comments on this or any other great investment destination.




Panama Means Abundance
2008-07-07T07:04:00.000-07:00
Last year, we took a trip to witness the wonders of Panama, the isthmus connecting the Americas. Panama is truly amazing and that's why so many Americans and Canadians have chosen to visit, live, and invest there. The country is geographically ideal because it lies below the hurricane belt and has few recorded natural disasters. There are hundreds of miles of undeveloped shoreline on either the Pacific or Caribbean side. A mountain range also runs through the country and provides a cool relief from the tropical climate on the coast. The landscape gets an abundance of rain and has an abundance of food and wildlife. 
This isthmus boasts the best business climate in the world. In fact more companies incorporate in Panama than anywhere else with over 400,000 incorporated in total. That's because forming a Panamanian corporation is seamless and inexpensive. Its flexible corporate law leaves no restrictions on foreign-owned companies or mergers and acquisitions. Moreover, there are tax exemptions for real estate, tourism, and development investments in Panama. So, if you're thinking of establishing a corporate entity in a great offshore location then we recommend the following service since because they've been in the game for a long time and will take good care of you: OffshoreXplorer (corporate and banking services).

Panama's key industry has become banking as strict privacy laws make the country an increasingly popular tax haven. International and national banks in the centro bancario (50th Street area financial district skyscrapers) are also abundant and are fueling the local economy. HSBC, one of the world's largest banking institutions has made Panama its Latin American regional hub and other banks are following suit. If you'd rather not hold US dollars in an offshore account, there are some banks that have euro accounts that are again, tax-free and subject to the world's most strict privacy laws. Read the following BBC article on how Panama has built itself as the "Switzerland of Latin America."

Although some would be happy to know that the USD is used in Panama, you'd be happier that the country's rate of inflation is far lower than that of the US. That's because without a central bank, you see a true market economy at work. Click here for further information. 

I know what you're thinking, Panama is right next to that violent and drug-ridden country Colombia. Well, the border between the two countries is a thick mountainous rain forest with no roads or rail between them at all. In fact, Panamanian police have been at the forefront of stopping illegal drug transits. Just a few weeks ago, they seized 6 tons of drugs in transit as explained in the AP article. Panama is also one of the safest countries in Latin America and violent crime rates here are less than in the US. Once again, police are ever present and banks and businesses ALWAYS have armed security (something that I rarely see in the US). 

In addition, water is safer to drink here than in the US. Its water treatment system is more modern and was built by the US military. You'll find an abundance of fresh running water at any business and Panamanians know that they're blessed. So, clearly, Panama will give you care-free living.

Without a doubt, Panama is the most attractive place in the world for retirees seeking to live better for less money. If you receive retirement income, you're eligible for discounts on electricity, health care, movies, restaurants, and transportation. Coupled with beautiful weather and a low cost of living, there's really no better place for retirees. Best of all, you won't have to worry about speaking Spanish because an increasing number of Panamanians speak English. Don't just take our word for it, just read the following article on why Panama is Paradise for Retirees - MSN Money 

The country's claim to fame is undoubtedly the Panama Canal which is one of the world's greatest engineering feats and a vital point for international shipments. This is why foreign investment in in the country must continue exponentially. Presently, the economic growth rate is at a healthy 6% and expected to remain steady or increase in the next decade. In fact, commerce in the canal is growing so much that the country has begun its widening project, the implications of which are beneficial to Panama's long term economic prosperity. See article here.



Panama City's Up & Coming Neighborhoods

1. Casco Viejo (Panama City's Colonial District)

Visiting Casco Viejo was a profound visual experience as contrasts existed harmoniously. For one, the neighborhood is home to the national President and the poorest people in town. Secondly, it's where you'll see both French architecture in dilapidated residential areas and Spanish architecture in churches, the cathedral, the theater, and government buildings. Thirdly, it offers wonderful views of either the city's modern skyline on one side and the Bridge of the Americas over the Panama Canal on the other. It's also where most Panamanians avoid because of its reputation as a dilapidated and crime-ridden area. 


We decided to stay at a small hotel close to the government buildings but still a short walk from the impoverished community. Many foreigners had begun developing old French style homes and buildings. There were also lots of foreign tourist groups that ventured to see this old colonial city in partial ruins. Little did I know then, that by Panamanian Decree Law #9, that you could get great incentives for investing in property in Casco Viejo. As previously mentioned, there's been a huge surge in interest in the neighborhood because it's really the only place in the city where you'll find such splendid architecture and history.The neighborhood had lots of police presence and was safe by our standards. As development continues, your investment in this community will certainly pay off for the following reasons: it's in a prime tourist location; it's located between the canal and the heart of the city; and it's a growing tourist attraction. Just look at some of the photos below:



  




2. Fuerte Amador


The tourism industry here is small but steadily increasing. There are very few beach resorts and it still attracts less western vacationers than neighboring Costa Rica. But, we know first hand that there has been a surge in interest in Panama Canal Cruises which is expected to increase by 100% in the next decade. All those tourists will stop at Fuerte Amador, a strip of land next to the canal with stunning views of Panama City's skyline and cheap, modern store fronts. Your potential business in Amador is accompanied by other restaurants, clubs, bars, and shops that service not only tourists, but the increasingly wealthy Panamanian club goers. There's also a large convention center located here and a Smithsonian marine wildlife research center.


David, Panama

Located six hours west of Panama City near the Costa Rican border, David is the country's second largest city. Many travellers make a stop in David on their voyage between Panama City and San Jose. There are presently only a handful of hotels, hostels and casinos in the city and investors will clearly see the need for more. After the national government develops a highway linking David to the capital city (there's currently just a 2 lane road with some portions unpaved), then more people will drive, more buses will make the transit and David will grow faster than ever. 

When we were there David was in the initial stages of development. This city of 100,000 had no highways (only small roads), there's no government run transportation (simply private bus operators), few cars on the road, few large business, and a very small airport.  The area outside the city has few paved roads and very little businesses. Don't get me wrong, it's a thriving community, but a small and underdeveloped one. The city is at the heart of Panama's principal meat and agricultural region.

What makes David so special is its warm sunny climate and its proximity to both the mountains, a clean river, and a pristine shore (not to mention that it's located just 30 minutes from the Costa Rican border). Whatever you're looking for, the David area has it. But the reason it's a better investment destination than Panama City is because it's 30 - 50% cheaper. There's also less crime, traffic, tourists, noise, and pollution and it hasn't nearly developed--yet.

David could also share in the country's burgeoning banking industry.  It's worth reminding you that Panama is the new Switzerland and the banks don't all have to be limited to Panama City.  When we were first in David, there were more loan and pawn shops than banks, the complete opposite of in Panama city. Downtown David, or the "centro bancario" had a handful of national banks, but new international banks like HSBC had recently opened an office there. Although most of the buildings downtown were no more than 3 stories, there were two soon to be tall bank offices buildings under construction. Clearly, David's banking center is in the beginning stages of development. 



Up & Coming Neighborhoods near David

1. Las Colinas 

This neighborhood is located in Dolega, a larger community just north of David on the main highway that connects to Boquete, a popular mountain town. Very new, inexpensive suburban neighborhoods dot the area of Dolega, but on the main roads, you'll find larger, more expensive ones. Best of all is that area is right next to the upper David River, a clean, clear stream with an abundance of fish, beautiful stones, and a waterfall. This area is clearly where most Westerners live and also home to the wealthiest in David. Within a half mile, in the northern section of David, you'll find: a KFC, TGI Fridays, a Toyota Dealer; produce stands, bars, authentic restaurants, and bars; a shopping Center with an El Rey supermarket, sporting goods store, and a furniture center. Even better, you'd be just a stone's throw away from a Panamanian national league baseball stadium (the Chiriqui team).

Last year, new homes being built in neighborhoods such as Las Colinas de Santa Cruz were priced from $ 30,000 with monthly payments at about $160. These one floor houses typically have 3 bedrooms, 1 bathroom, a kitchen, living room, dining room and a doorless garage. They're built with solid steel rods and concrete (they'd never think of building with wood!) and have tin roofs so your ceiling stays dry. You couldn't put a price on the stunning views of the hills and mountains from our backyard and huge red boulders from our front yard. The stunning landscape is also home to a few farms and wooden areas with exotic birds. A few miles north of Las Colinas, you'll encounter new home neighborhoods closer to the mountains. They're larger and have even better views of the mountains. Since they're on higher elevation at at the foothills of the mountains, it's cooler and more breezy than sweltering David. For 4 bedrooms and 2 bathrooms in a gated neighborhood, homes run anywhere from just $ 45-60,000

2. Cerro Punta

If you'd rather have the mountains, cooler weather (50's to 70's ˚F), and serenity, then head to the Cerro Punta area. When we first took a day trip there, we were blown away. It's cool and rainy and has stunning views of the tallest mountains in Western Panama. It's also Panama's principal agricultural center, producing lots of fruits, vegetables, and coffee. You should invest in the Cerro Punta area because it's a less popular, but up and coming area. Westerners have long popularized Boquete, a very gorgeous small mountain town founded by the Swiss and Germans who came to the region decades ago, planted a bunch of pine trees and built homes with Alpine architecture. Property is much less expensive in Cerro Punta and has much less tourists and American retirees. You're just a scenic hour away from David, but you'll still have the convenience of restaurants (Panamanian, Chinese, and a few American), bars, and markets. Lots cost less than $ 10,000 per acre and could give you a comfortable and beautiful vacation or investment property.

3. Playa de la Barqueta 

David is about a half hour's drive from the Pacific shore and the best kept secret is a wonderful beach at Playa de la Barqueta. Beachfront homes with 2 levels run just $200,000 in gated communities with 4 or more bedrooms. The beach is has black sand and is lined with tropical and coconut trees. Very few people frequent the beach but there is a restaurant, convenience store, and bar/club adjacent. For under $200K, you can get a condo at an adjacent gated development with its own clubhouse/restaurant. 

4. Bastimentos, Bocas del Toro

Finally, if you're seeking your own Caribbean island retreat, then head about 100 miles north of David through a spectacular national park rain forest, and you'll come across the islands of Bocas del Toro (which literally translates to Mouth of the Bull). The islands are only accessible by taxi boat (which runs between $2 and $4). Here, the beaches have white sand with shaded, unfettered shorelines. Bastimetos was a our choice because it was less touristy and developed than Bocas del Toro Island, the center of regional commerce. On Bastimentos, we found a few hostels, restaurants and shops in the main town which consists of just one pedestrian street along the western coast. Crime was inexistent and the people, mostly English-speaking, seemed happy on this island of just a few hundred inhabitants. The beaches on the Caribbean side were amazingly beautiful, undeveloped, and secluded. For me, Bastimentos was the epitome of Paradise.

As you can see, not only does Panama offer a significantly lower cost of living, a business-friendly environment, a safe banking industry, you'd get an abundance of investment opportunities in a safe, beautiful, and diverse landscape. If you'd like more information on acquiring homes or land in any of these up and coming neighborhoods then contact us.



Coming July 7, 2008
2008-06-26T17:12:00.000-07:00
Looking for that perfect place where you can invest, start a business, vacation, or retire? Our investment destinations are hidden gems that are on the verge of becoming hot spots. Since they're presently overlooked and undervalued, potential investors, entrepreneurs, visitors, and retirees will find a wealth of opportunities.With  INVEST DEST,          you can beat the speculators, developers, and crowds of tourists to the punch!