Representing the Best Real Estate in Phuket

PHUKET – THE GATEWAY TO THE INDIAN OCEAN

To be the only boat in sight from horizon to horizon, anchored off a deserted tropical island beach may seem like a dream to most sailors. But when you are sailing in Phuket, it is an everyday reality.

Also Phuket’s climate is quite unique amongst cruising destinations. There is no winter and we are also spared from typhoons and hurricanes. The temperature averages between 25 and 32 degrees Celsius throughout the year and the ocean is at an almost constant temperature of 28 degrees Celsius.

Located in the Andaman Sea, Phuket is best known amongst regional sailors for having the most advanced sailing infrastructure in Thailand. As a cruising base, Phuket is unbeatable. The mystical waters, islands and limestone karsts of Phang Nga Bay are just a few hours sailing east from the major anchorages; the stunning Similan Islands are a day’s motor sail to the west, while Burma’s practically unexplored Mergui Archipelago is easily accessible to the north.

To the south is the almost uninhabited Butang Group which is part of the 51-island Hat Chao Mai National Park and is habitat to an abundance of fascinating and unusual wildlife. A short sail east brings you to the mysterious and unspoiled island of Tarutao, just 6 km from the Malaysian island of Langkawi, and only one day out of Phuket. Being a former penal colony, Tarutao abounds with interesting caves and hidden creeks leading into the mountainous interior, a primal world where time appears to have been standing still.

Phang Nga Bay itself, bordered by Phuket, Phang Nga and Krabi provinces and boasting more than 100 islands and sheer-sided mountains rising out of the ocean, has produced some of Thailand’s most spectacular tourist images. This has turned Phang Nga Bay into a popular tourist destination with day tours and kayakers exploring the islands and sea caves. Despite of this all, the bay is practically deserted by mid-afternoon.

For sailors who prefer as much luxury and convenience as they possibly can get with their sailing, Phuket is already home to three international-standard marinas: The Yacht Haven Marina, Boat Lagoon Marina and the recently opened Royal Phuket Marina. The latter one was voted ‘Best of the Best Marinas’ by British Airways’ First Class in-flight magazine, First Life. Much more marinas are in the planning stage.

Boasting only one regatta until a few years ago, there is now plenty of choice, in terms of time, style and location, for those who prefer to mix a touch of action with their sailing holiday in Thailand.

The Phuket King’s Cup Regatta, soon to organize its 20^th edition, attracts around 100 yachts and is held early December. The Phang Nga Bay Regatta, which is bringing together around 40 competitors and is more relaxed compared to Phuket’s King’s Cup Regatta, takes place at Chinese New Year, against what must be the most dramatic and spectacular scenic background of any regatta in the world. Phuket Race week, now in its second year, also plays an important part in the regatta calendar. This one is being staged in July when it is windier because of the southwest monsoon.

Whilst the competitive fun of racing in tropical waters is why people take part in Phuket’s regattas, they all leave with great memories of the beachside regatta

TRANQUIL PHUKET NOW BOATS WORLD-CLASS MARINA AND CUTTING EDGE CATS

Sunsail Yacht Charters recently moved their base in Thailand to the ground-breaking Ao Po Gran Marina in Phuket.

Sunsail clients have full access to the facilities of this spectacular, non-tidal marina, which includes restaurants, shops, a 5-star hotel, man-made lagoons and a yacht club.

To celebrate its new home in Phuket, Sunsail is offering 10% off the yacht charter price on all new bookings departing before the end of 2009.

Ao Po Grand Marina is situated at the entrance to the stunning Phang Nga Bay and is just 30 minutes from Phuket International Airport.

Holidaymakers sailing from Sunsail’s new Phuket base will be among the first in the world to sample their new 384 catamaran, recently announced as joining the Thailand fleet.

Source: www.letstravelmag.com

PHUKET SELECTED TO BE AIRASIA REGIONAL HUB

Low cost carrier Thai AirAsia has announced that it will begin direct flight services to Phuket Island from several new major cities in the region starting by the end of the year.

There will be 5 aircrafts based at Phuket International Airport as part of the plan to establish Phuket as an aviation hub.

The cities include Hong Kong, Kuala Lumpur, Jakarta, Bali, Ho Chi Minh and Chiang Mai.

The first of the new flights will be in November.

Thai AirAsia expects the project to add an additional one million passengers this year.

Last year, 4,2 million people flew with the airline, 55 percent of these were Asian nationals.

‘Some have questioned how we can expect such an increase with the current state of the economy, but we already reserved these planes so we will have to rely on marketing to get more people to travel to Thailand’ Thai AirAsia CEO Tassapon Bijleveld said.

Thai AirAsia opened a booking center in Patong in April this year and has plans to open another in Phuket City. There is also a ticket booth at Tesco-Lotus on the bypass road.

Bhuritt Maswongsa, vice president for marketing of the Phuket Tourist Association (PTA), said the news was very positive for Phuket, which was recovering well after successfully hosting the Asean Foreign Ministers’ meeting which was held in the Phuket Laguna area in Cherng Talay in July.

The PTA has worked hard for years to establish Phuket as a third regional hub for Southeast Asia after Suvarnabhumi Airport in Bangkok and Changi Airport in Singapore, he said.

The new flights will allow passengers from places like Indonesia and Brunei, amongst others, to transit through Phuket to catch long-haul flights to destinations in Europe and North America.

The PTA is also pushing Thai Airways International (THAI) to launch a Frankfurt to Phuket route twice a week, either directly or via Bangkok.

THAI currently offers direct flights to Phuket only from Hong Kong, Narita Airport in Japan, and Perth, Australia.

The PTA is also urging THAI to resume direct flights from Singapore.

THAI stopped that service a long time ago, claiming it could not operate the route at a profit. However, there are currently three other carriers offering a total of nine flights daily from Phuket to Singapore.

As mentioned earlier this week, Virgin Blue’s launch of direct flights from Perth, Brisbane and Sydney in Australia is another boon to Phuket tourism and in relation to that to the Phuket Real Estate industry.

Mr. Bhuritt Maswongsa mentioned that all incoming flights are full and that Phuket Island is doing better than Pattaya and Chiang Mai, which are still struggling with the number of tourists.

Source: Phuket Gazette

‘KEEP PHUKET CLEAN’ NOW A MONTHLY ISLAND-WIDE PROGRAM

The next island-wide ‘Keep Phuket Clean’-effort is taking place on Thursday, the 3^rd of September, 2009 at 3:00 PM in 28 different locations around Phuket Island.

With the arrival of the first beach recycling station, the organizers intend to start rolling out a co-ordinated recycling effort at all hotels and beaches to kick off the recycling program.

A strategy document that aims to reduce the number of plastic bags used in Phuket and reduce particularly the number of free plastic bags distributed has been completed and available for review. More than 80% of the tourists that visit Phuket come from countries that already have a free plastic bag ban, or at least a plastic bag reduction strategy. When those tourists notice the amount of plastic and litter on Phuket, they are always disappointed.

With Phuket Beaches and surrounding public areas now clean the organizers aim to continue to push for greater island support of a ‘Litter Free Phuket in 2010’. Reuse and Recycling education is also planned as a program in schools with the first pilot taking place in September.

The Keep Phuket Clean community outreach program’s goal, using education and private sector support, is to make the Phuket residents, hotels, small businesses and tourists more aware of the island’s fragile eco-system and the impact that they have on its flora, fauna and surrounding waters and marine reserves. The ‘Keep Phuket Clean’ program also provides an opportunity to spread positive messages about Phuket to the world.

NAITHON BEACH RAPIDLY DEVELOPING AS HIGH-END PROPERTY AREA

Lately, the area of Naithon, in the North West of Phuket, is attracting a lot of interest of hotel and residential developers. Being one of Phuket’s least crowded and most beautiful beaches, Naithon looks set to experience dramatic growth over the next few years. In the past Trisara and Andaman White Beach Resort framed a lovely area on the fringes. More recently, Pearl of Naithon and Naithonburi went straight to the heart of the matter across from the beach road.

Now that Pullman has announced it will develop a 280-key hotel project at the north end of Naithon Beach, for the area were most businesses were to close down in low season, the sleepiness looks to be coming to an end. Malaiwana is continuing to expand their Phuket Luxury Villas and reportedly are possibly looking to add high end condos and a beach club. At Istana, development is now at full speed.

Rumours have it that a second hotel near to the Pullman is being planned which would take op most of the remaining open land on the beach road. This still leaves the opportunity of redeveloping the existing units on the main road in a Surin type model and the valley in the back that has some similarities to Kamala.

Source: The Phuket Insider

VIRGIN BLUE LAUNCHES DIRECT PHUKET FLIGHTS

Some good news received us yesterday which will be a boost for Phuket’s tourism and in relation to that also for the Phuket Real Estate industry.

‘Virgin Blue offshoot V Australia has announced today it is set to commence with direct flights twice a week between Phuket and Brisbane in November and weekly flights from Melbourne.

V Australia launched a long haul expansion this year with flights to Los Angeles and will add in service to South Africa next year. The airline has won kudos for their innovative business class bar lounge and lie flat beds in premium class.

Australian tourist traffic in 2009 has been on the wane with a redirect of demand to Bali but these flight are expected to add increase numbers’

Source: The Phuket Insider

PHUKET HELICOPTER TOURS TARGETING PHANG NGA BAY

It has been a long time mystery why helicopter aviation has not yet targeted the tourism market in Phuket. Given the international airport, which is a key hub to Greater Phuket and the many luxury resorts in Phang Nga, the bay, Krabi, Phi Phi and Koh Lanta, this certainly looks like an area with a huge potential.

While Destination Air, who first explored this market segment, was using Cessna Caravans and relied heavily on landing in uncontrolled environments such as public beaches, helicopters have the ability to land on private landing areas very easily. Just look at the islands of Hawaii where aerial aviation for tourist is a huge industry.

Advance Aviation is currently operating both tours and charter business with a private landing pad just south of Phuket International Airport. Coupling their operations in Phuket, the company is now targeting growth in tourist sightseeing, especially in and around Phang Nga Bay. As more and more resorts and developments such as Jumeirah Private Island and Taj Exotica start to be operational, expect helicopter transfers to become more common place, especially at the luxury end of the spectrum.

Source: Phuket Insider

RITZ-CARLTON TO BUILD IN PHANG NGA

The luxury Ritz-Carlton brand is going to debut in Phang Nga with the signing of Similan Beach, a Ritz-Carlton Reserve. Located just north of Tha Sai, the upscale villa resort which will consist of 79 villas is scheduled to open by the fourth quarter of 2011. The site was previously owned by ‘Kingdom Hotel Investment’ and had been earmarked for Raffles managed product.

Over the past few years, this area of Phang Nga, also known as ‘The Greater Phuket’, has seen a lot of development of high end residential properties with million dollar villas rising along Natai Beach. Unlike on Phuket itself where it is hard to find real beachfront property, in Natai ocean front property has been available although prices have increased significantly. With easy access from Phuket just over the Sarasin-bridge, the resort areas under development have good road infrastructure and there is only a short travel time from and to Phuket International Airport. Aside from the Ritz-Carlton project, Hong Kong tycoon Richard Li has acquired the Thai Muang 1000 Rai golf course site and is reported to be developing a large scale mixed use resort.

Source: Property Report

OFFSHORE-FUNDED PURCHASES

You want to buy overseas property but mortgages are not available through the local banks and there is no financing from the developer’s side as well. So what do you do?

Before going to search for unfriendly lenders who all of the sudden have something else more important to do when they see a foreigner coming in, or when you call you’re your bank overseas and you are put on hold for nearly half an hour after they realize you are that adventurous expatriate who had the nerve to leave his country of birth to move to a sunnier climate, think again. Rather than looking to far, it might be worth looking closer at your asset column for an alternative way of freeing up funds that you can put to work elsewhere.

Releasing equity from your existing property is a well documented way of raising cash through a traditional re-mortgage facility. This might be worth investigating if you already have some equity as well as easy access to a friendly lender who is not allergic to expatriates. If not, then fortunately there are other ways to raise capital:

Asset backed lending from existing portfolio structures

Many expats and retirees living overseas will already have an offshore investment vehicle or Portfolio Bond that has over the years, with top ups and investment returns, risen to a valuation of 1 million USD or more. In many cases that can be used as collateral to get access to an advance secured by the portfolio itself. A lending ratio of 50% loan to value would, in this example, release 500,000 USD cash lent to the investor on a rolling term base. The underlying assets in the portfolio would have to be of a low risk nature at outset to qualify, and then be conservatively managed going forward, but even so can still provide a return higher than the interest cost of the loan.

There are risks involved if the portfolio valuation were to fall below a certain limit which could in theory lead to a margin call from the lender, so a word to the wise here is to avoid cross currency loans and risky stocks at all costs. That being said, the times of lending against highly aggressive portfolios are largely behind us as we enter a new world of cautious lending strategies being adopted by banks. Most banks will now only look to lend against low to moderate risk assts such as blue chip stocks, investment grade bonds, government gilts and professionally managed unit trusts.

An experienced investment professional should be able to structure your portfolio in line with the bank’s requirements prior to submission of an application, and so with proper monitoring and a full understanding of the risks involved and how to mitigate them, this can be a very powerful tool for high net worth investors looking for funding for new investment opportunities.

Overseas Pension Transfers

In April 2006, it was announced that individuals with UK pension rights who have, or will become, non-resident in the UK for tax purposes, can move their accumulated pension benefits to a ‘Qualifying Recognised Overseas Pension Scheme (QROPS)’ approved by Her Majesty’s Revenue and Customs (HMRC). You can think of it as an International Pension Plan or Offshore Pension Scheme.

The principal advantages of moving to an overseas scheme are:

 

-         No liability to UK income tax taken (for those who are non UK resident for tax purposes).

-         The ability to pass on the entire pension asset to the next generation without punitive UK tax charges (currently up to maximum 82% of the entire residual pension fund for those who have not purchased an annuity by the age of 75).

-         The option to take up to 25% tax-free in cash as a lump sum.

-         No requirement to purchase an annuity or alternatively secured pension.

-         A wider investment choice including the acquisition of residential or commercial property, scheme loans, and self-investment options.

-         Benefits can currently be taken at the age of 50, although this will be increased to the age of 55 from April 2010.

-         A regular income can be paid from your QROPS direct to your bank account and assets can be held as well as payments made in many currencies helping you to manage the risks in exchange rate fluctuations.

-         Those who wish to transfer their pension assets to a more flexible environment with fewer investment restrictions.

-         Any UK national who wants their pension scheme to be potentially able to purchase overseas property.

-         Any UK national who is moving overseas to live in a country whose pension rules are restrictive (i.e. France) and where they would be forced to purchase an annuity they do not necessarily want (most European States).

-         Those who wish to preserve their lifetime pension funds for the benefit of their families.

Whoever could be interested should check out the possibilities of transferring their accumulated pension rights overseas as soon as possible. Not in the least because of the potential risk that the UK government could change or amend the rules, resulting in a missed opportunity.

Source: Private Portfolio Services Offshore