 LOCATION
As they say in real estate ‘location, location,
location’. The prime areas in Phuket have always
been on the west coast, either sea front or sea view.
Even in slower market periods, water front or water
view land is always in demand. The third choice
would be a property that is located very close to the
beach.
 BRANDING
Properties in lifestyle destinations require managed solutions, either by a 5-star hotel operator or a company that can provide that level of service. It is important for lifestyle investment properties to be as ‘turn key’ as possible, with full concierge, service staffing and the ability to provide occupancy solutions for the investor. This will give an investor the confidence that proper systems will be in place to ensure a smooth ownership process and generate a decent rental yield.
 QUALITY
A well executed project is derived from a developer that has put together the right team to drive the process and one that has a clear understanding of the process. Many mistakes are made by inexperienced developers that assume if they hire the right people, the project will magically fall into place. Quality will be derived from the developer’s ability to execute the architects design with the development team. There are many variables in developing, and we encourage our buyers to be aware of the background and ability of both the developer and the team they have put in pace.
 DESIGN
A good design team sets the stage for an exciting project however the execution of the concept, as mentioned above, is key to the ultimate success. A property designed by a branded architecture team should always sell at a premium, as it will be well thought out and planned by experienced professionals. Taking a good look at a design team’s previous work is a good way to assess their ability to create something special.
 FINANCIAL STRENGTH
In today’s economic world, it is vital that a new project is properly funded through to an acceptable level of completion. Under capitalized developers pose a big risk in any market, let alone in today’s. Always exercise due-diligence to ensure the developer is capitalized for new projects, and for existing ones that the previous contractors have been paid in full.
 DISTRESSED
Globally, there will be excellent opportunities to purchase distressed property.However, just because a property is distressed does not mean it is an excellent opportunity. There might be a reason beyond financial duress that has caused a previous owner, or developer, to have the bank take over a property. You have to look beyond the previous and current pricing, and review the above mentioned points. Because there is much stricter lending policies in Asia – which require buyers to put down much more equity – there will be fewer mortgage defaults than in the West. In Thailand, financing for foreigners is not available, making it an all cash market, especially in the luxury end of the market. This means virtually no defaults, however there might be opportunities from owners that are in a financial crunch abroad, but be ready to move quickly on those opportunities. Tom Travers is coordinating these offers.
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 NEGOTIATION TACTICS
It is a global ‘buyers market’ now, and there will be a few excellent opportunities to purchase properties that would rarely come on the market for sale. Rare properties can be like fine art, there is always a market for it, especially if the price is right. Buyers can seek out developers or sellers that can provide delayed payment terms. Also, buyers should have a good understanding of the real estate market to be able to identify good value. Negotiations for discounts will be possible for some properties but not others, depending on the financial ability of a developer or owner. Be positive, patient, engage a good lawyer and be ready to move, 2009 is a great year to be a buyer… choose carefully, be firm in negotiating, be reasonable in your expectations and you will make a very strong investment at the start of a new economic cycle.
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