Advantage Of A Second Language … Norair Yeretsian

Follow the Money, where is it and where is it going.

Is that where the future is, where the money is ?

Real Estate is still king in China, it’s the where the wealth is a report entitled  Hurun , which lists/ranks the wealthiest Chinese.

Lots of millionaires and Many , if not the most Billionaires in the world.

Imagine if you could be a billionaire in a communist country,well then it should be a lot easier in a capitalistic one.

Get Busy !

The Hurun Report Highest, Highlighting the Riches of  the Chinese Population.

• Today there are 1363 individuals with billion Chinese Yuan (US$150 million),up from 1000 last year and only 24 ten years ago. There are 189 US Dollar billionaires that we know of, suggesting that China today has more billionaires than anywhere else in the world, 400 to 500 billionaires, surpassing even the US.

• China has 875,000 individuals with personal wealth of more than 10 million Yuan (USD 1.5 million) and 55,000 individuals with more than 100 million Yuan, according to the Hurun Wealth Report 2010, released in May. The average Chinese with 10 million Yuan was born in 1970, with 100 million Yuan was born in 1966.

• Most of China’s wealth creation has been driven by its massive urbanization programme, led by property and related industries. The urban population is expected to increase by 300 million people by 2025, according to the Ministry of Construction, laying the foundations for continued growth. 

• The top three hobbies of China’s wealthy are travel, swimming and golf, according to the Hurun Best of the Best Survey2010.Internationally,their preferred travel destinations are the US, France and Australia, while domestically they are Sanya,Yunnan and Hong Kong. They are spending 50% more time on leisure travel, a third now take more than twenty days holiday a yea

*Property is still the biggest wealth creator for the Hurun Rich List, with 20.1% listing property as one of their key industries. The percentage has been steadily decreasing, from over half in the first year of 1999 to 23.1% last year. Comparatively speaking, it has been a good year for commercial property, and a difficult year for residential property, mainly due to government attempts to keep property prices down. 

Of all the industries, China’s property tycoons are far and away richer than tycoons from any other industry. The average wealth of the Top Ten Richest Property Developers is more than double the average wealth of the next richest industries of retail and IT. - Hurun Rich List 2010

The pool of qualified domestic buyers for luxury real estate is much smaller than what it used to be. Finding interest from other countries is not only becoming more popular, but a necessity. Language and cultural barriers can be an obstacle but don’t let that stop you from reaching the fasting growing luxury class in the world.   

Let’s discuss your perspective on real estate being a vehicle for wealth accumulation .

Leave a comment below or email us  at     capitalmoves@gmail.com

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Envoy Capitol Realty Inc., brokerage       Toronto   / Canada
Buy/Sell/Lease/Manage/Develop/Consult/Syndicate — Investment

Norair Yeretsian, broker of record

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Canadians Buying the World !… Norair Yeretsian

Rumor has it that CPPIB ( Canada Pension Plan Investment Board ) is acquiring a European Mall.

 What’s not rumor is that Canadian  pension plans and REITs  are buying real estate around the world.

 Although most of  the time Canadians partner globally with local interests rather than go it alone,

 with negotiated arrangements ranging say a 25% ,50% interest buy in with prospects of further

 future investments , expansion and/or development.

Canadian REITs have been moving and buying into the U.S. real estate market place for a while now.

Canadian developers are also down in Brazil and sinking billions into the South American real estate market.

The largest pension fund in Canada , Caisee de depot et placement du Quebec has about $700 million invested in shopping

centers in  Brazil through their real estate arm Ivanhoe Cambridge.

Canada Pension Plan Investment Board (CCPIB) entered into a joint venture with a $ 250 million investment (2009)

  with  Cyrela Commercial Properties SA with a plan to develop, acquire and manage commercial properties.

The Brazilian company owns triple-A rated office buildings in Sao Paulo, as well as shopping centers and

industrial properties.

Brookfield Asset Management has about $ 18  billion invested in Brazil .

 Just over ten billion is in residential real estate and shopping malls. 

 They also have investments in renewable power of $ 4.7 billion and about $ 2.3  billion in the finance

sector. (source; Report on Business, Globe and Mail , Steve Ladurantaye )

In the past  three years pension funds of Canada have purchased in the U.K , Europe and  Asian properties loom as the next frontier.

 This is a move to diversify the portfolio and re-balance it.

 So that they do not have too much exposure to Canada, where the funds are raised.

In the same light , we in Canada have seen pension funds from around the world consider Canadian investment properties.

European pension funds have purchased or invested funds in Canada with large $500 million acquisitions of some trophy

properties in major cities. Investors from around the world come to Canada to invest millions in real estate.

America has always it seems had an open door policy allowing foreign investments into the U.S. property market.

In the late 1980s and early 1990s the Japanese were big players with billions of dollars of investments.

They learned in a hard way that no market is safe and you can lose your entire investment

as markets cycle and your lenders want their money back at the most challenging times.

Economy of each country  is  always moving and changing dynamics in each country or on each continent

will impact your investments at home and beyond.

The fundamentals of diversification to spread risk ; both geographically and by category of assets,

 may be smart – however country by country ( and within countries; territories) must be

 assessed for their risk and challenges. Do not forget real estate is local , local matters most.

The  many  benefits of  Leverage ( financing,the use of other people’s money) can swing greatly

 in your favour when things are going well and come crashing down when things go bad.

The other challenge often overlooked with investing in  countries around the world 

is the whole foreign exchange game, valuation and de-valuation of currencies risk.

Investing in real estate internationally is like playing a complex game of chess ,

many things to consider and each move  changes everything.

Let’s discuss your perspective on investing in real estate internationally, what are your thoughts ?

Leave a comment below or Join Us at www.capitalmoves.blogspot.com

Envoy Capitol Realty Inc., brokerage      Toronto / Canada
Buy/Sell/Lease/Manage/Develop/Syndicate — Investment

Norair Yeretsian, broker of record

Email : capitalmoves@gmail.com

Blog : www.capitalmoves.blogspot.com

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