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The artificial islands in Dubai, UAE, where major residential and commercial infrastructure will be constructed are the Palm Islands. These islands are the biggest land reclamation project in the world and will ultimately become the world’s largest man-made islands. Nakheel Properties, a property developer in the UAE, are constructing these islands, and they have hired the Dutch marine and dredging contractor, Van OOrd, one of the specialists in land reclamation. These islands are the Palm Jebel Ali, the Palm Jumeirah and the Palm Deira.

Sheikh Mohammed bin Rashid Al Maktoum commissioned the islands so as to increase tourism in Dubai. Every settlement is supposed to be in the shape of a palm tree, which is topped by a crescent, and will have quite a number of entertainment, leisure and residential centers. The Palm Islands are situated in the Persian Gulf off the coast of UAE and will add about 520 km of beaches to Dubai city.

Jumeirah Palm Island in Dubai is one of the most grand Real Estate developments in the world, said to be the eighth wonder of the world because it can be seen from space with another very important landmark, which is The Great Wall of China.

The Palm Island Jumeirah is the first of the three Palm Island Dubai projects and it began handover to owners in November 2006. Owners are making the most of their investments by giving this wonderful accommodation and location to is to manage their properties. Shoreline Apartments on the Palm, which is fully furnished to suit the customers is offered by Dubaishortstay.com. These Shoreline Apartments are completed to a high level of design and are located in a quiet area with their own beach in front looking over the 7 Star Burj Al Arab hotel. All the Shoreline Apartments have direct access to the beach. The Beach Clubs offer gym facilities, internet facilities, nice pool areas which look over the beach, and also café facilities. Restaurant facilities will also be available in the beach clubs very soon.

The Palm Jumeirah is close to all the facilities - all the hotels are situated very close to The Palm and so are the shopping malls, ski resort, supermarkets, ice cafes and other facilities. This is a prime location for visitors to go see when in Dubai.

Long-term rentals and short-term rentals will help you to capitalize on one of the most sought-after landmarks on earth and it will also be one of the tourist destinations of the world.

The Palm Jebel Ali’s construction was started in October 2002 and it is expected that it will be completed in the middle of 2008. It is expected to accommodate 1.7 million people by 2020. it will be encircled by the Dubai Waterfront once it is completed. This project is 50% bigger than the Palm Jumeirah and will include six marinas, ‘Sea Village’, a water theme park, homes built on stilts above the water and boardwalks will encircle the ‘fronds’ of the ;palm’ which will spell out an Arabic poem by Sheikh Mohammed bin Rashid Al Maktoum

Take wisdom from the wise
It takes a man of vision to write on water
Not everyone who rides a horse is a jockey

The first such duo is Warsaw and Lodz who share a mirror image with London and Birmingham respectively. Where London boomed in the seventies and eighties Birmingham struggled, its industrial heart out-competed by a global economy. Old factories lay dormant and the property market stagnated … until lofts became fashionable and London became just too expensive for many individuals and businesses.

In comparison Warsaw boomed from the late nineties onwards and its property prices soared. Banks, businesses, law firms and consultancies are all making this city their epicentre for central European operations. Since the millennium the airport has been one non-stop building site as it tries to keep up with rising demand. In the meantime Lodz went into recession and saw large scale decline to its identity as a manufacturing base.

But, like Birmingham, things have started to change. Warsaw is becoming expensive and Lodz is only 100 kilometres away yet its real estate is half the price of the capital. And like Birmingham transforming 19th century industrial buildings has become viable. A derelict brewery has become a shopping centre, a disused cotton factory converted into apartments.

Perhaps one of the reasons for the similarity between Lodz and Birmingham is down to the people. Both are proud of their home town, both are keen to show visitors "the real city", both have lived through hard times in living memory. Lodz is still cheap, but probably not for much longer.

The next pair has to be Krakow and Katowice, uncanny in their relation with Edinburgh and Glasgow. Edinburgh has always been easy for tourists to understand, the architecture instantly likeable and its well-to-do image centuries old. Glasgow on the other hand was the ugly sister. A powerhouse of the industrial revolution with the pollution and poverty that went with it.

Today Glasgow has more art galleries and museums per square mile than any other metropolis in Britain. It has been European City of Culture and European City of Architecture. Its music and theatre scene is breathtaking. While Edinburgh is historic, Glasgow is diverse.

Krakow, like Edinburgh, is instantly tourist friendly with its vast old town. It is understandable why real estate prices catapulted here. According to the Royal Society of Chartered Surveyors they actually rose faster in Krakow than any other European city between 2005 and 2006. Today there are plenty of trendy bars and shops but, to steal a Scottish phrase, "all different but the same".

Krakow is a historical city and while this has brought much wealth it could now become a restraint. All too often there is a mentality in the air that anything new should fit the old. There is a quiet resting on laurels, Why do you need to try when your town centre is stunning? So true for Krakow and so true for Edinburgh.

Head west up the motorway from Edinburgh and you will find Glasgow, do the same from Krakow and you will find Katowice. As with Glasgow the manufacturing base in Katowice disappeared, albeit in the nineties. The demise of the pollution producing commerce bought poverty but since the turn of the millennium it has been quietly reinventing itself. Unlike Krakow, and just like Glasgow, it has no stereotyping chains. It can be anything it wants, it can be more diverse and more interesting than Krakow.

Once again it is clear that the people often make a town. In Glasgow you are first a Glaswegian, then you are Scottish and then (perhaps) you are British. In Katowice first you are ‘from the Slaskie’, then you are Polish. 1,400 miles apart two populations share the same fierce pride over their identity and the same historic routes as urban areas of heavy industry not far from somewhere much prettier.

On a final note of similarity most British people still think Glasgow is not worth a visit, and most Poles would say the same of Katowice. Old images run deep in every country.

The last two pairs are London and Norwich and their counterparts Warsaw and Lublin. Norwich is a sleepy, rural city with a glorious old town and a buzzing student population 115 miles from London. Lublin is a carbon copy 101 miles from Warsaw.

Property price rises in Norwich were not caused so much by the indigenous population but by rich retirees to begin with and then later because, due to better trains, the city fell within the commuter belt of London.

A better lifestyle, more countryside, a beautiful centre and a slower pace of life all attracted people out of the capital to the Norfolk Broads and so it could be for Lublin. But Lublin could go even further. The coming of a new international airport and the government’s plans to use EU funds as a lever for promoting this area as a tourist destination means it holds far more Eastern promise over the next decade.

Three cities - Lodz, Katowice and Lublin. They are the Birmingham, the Glasgow and the Norwich of the past. In ten years time it will all be rather obvious but today the history of a few British towns actually provides the elusive crystal ball so many property investors hanker after.

————
Average Property Price Rises - 2002 to 2007
Birmingham 95%
Glasgow 127%
Norwich 88%
Source: UK Land Registry and Registers of Scotland
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Operative provisions of the judgement:

A vendor of investment property with a rent pool has to state all costs and risks likely to be incurred by the investor.

Background:

The vendor buys and renovates apartment blocks to divide them into condos and sell those individually. An investor (the plaintiff) bought such a property and joined the rent pool. He demands the contract to be reverted and the purchase price plus damage to be paid back. He claims incomplete and wrong information in the sales process.

Ruling:

The vendor is in violation of providing the required information if claiming to positive expectations with regard to the return on the investment. This applies when the investor joins the rent pool at the recommendation of the vendor. The risk of repairs and vacancy in other apartments has to be quantified and shown in the calculations and not only mentioned on the side.

While advising on property as an investment the expected cost is a key figure in the calculation. It has to demonstrate that the vendor not only is in the position to buy the property but also to maintain it. The investor can assume that the vendor has included all risks in the calculation. Vacancies or repairs at a normal scale should not immediately reduce the yield promised at the purchase.

BGH ruling 30.11.2007, V ZR 284/06

Comment:

As a reaction many vendors working with such a system have tried to solve the problem by providing a guarantee. The intention is to picture a higher value than the actual value at the time of the offer and thus demanding a price higher than the current actual value. Here are some questions to ask when considering such a purchase:

Rent pool: Demand to see the actual rent of your apartment and find out whether you are subsidizing less valuable apartments or you are given a higher rent than your apartment actually earns and you pay the difference that you receive over time out of your over priced purchase price.

Repairs guarantee: What is the actual state of the investment apartment you are buying? Do not buy based on a viewing of a renovated apartment with the promise that this is how your apartment will be at some point in the future. Why not bring it up to standard and sell it then?

Management cost guarantee: How much does a management cost guarantee help if you are not satisfied with the performance of the property management? Does it cover the cost of a management that you prefer?

What happens to the guarantee when the vendor goes out of business? Bank guarantees are usually offered but they only make up a fraction of the total obligations.

These guarantees deflect that you are investing in a property with an inherent set of risks. The approach to try to talk away these risks is deliberately misleading. If you are not comfortable with property investment choose a different type of investment. If you want a property investment with all its great opportunities and some risks than make sure you have all the true information and not pay above the market for some questionable guarantees.

As a side line let me mention that some of these constructions will be scrutinized for tax reasons. It might be seen as not being a property investment with implications for write off privileges and long term capital gains.

Recommendation

Do not let guarantees deflect you from inspecting all aspects of the apartment you are actually buying!

Sometimes Tax Time can be so painful…

Remember the last time your Mutual Funds took a loss and you STILL had to pay taxes. Doesn’t seem fair. AND when your stocks take a loss all you can do is write that off against your stock gains.

Have you ever thought to yourself,

"Wouldn’t it be nice to be able to get good cash flow and a generous tax deduction from the same investment?"

Think of it… a single investment offering you the best of both worlds. Is that even possible?

I have good news, because that is Exactly what direct ownership in Commercial Property offers you. AND I guarantee you this is information your Stock Broker doesn’t want you to know.

Here’s the best tax write off in Investing…

When you own Commercial Real Estate you can take as much cash flow as the property will produce as income AND use Depreciation to write off thousands of dollars of that income every single year.

Commercial Real Estate is depreciated using a 39 year tax life. This means every year you can write off one thirty ninth of the value of the building(s) against your income for the year.

It’s a leveraged write off too…

Here’s what I mean. You get to write off 1/39th of the Entire Value of the entire property, not just money you personally put in to the deal.

Check out this example…

If you put $200K cash down on a $1M Commercial Property, you can use Depreciation to write off 1/39th of the full $1M - not just the $200K you put in. This equals $29,614 per year, every year for 39 years in a row if you wish.

And it gets even better…

You can even "Accelerate the Depreciation" and take a bigger write off than this.

Certain parts of your Commercial Property can actually be depreciated over shorter tax life periods and give you an even larger depreciation deduction. It’s done using a technique called Cost Segregation.

Here’s how it works…

Some components of your Property have a tax life of five years, some seven or even 15. There are consultants who can routinely add thousands to your annual Depreciation write off by taking a week to do a Cost Segregation analysis for you.

Accelerated Depreciation is totally painless, gives the generous deduction write off a major boost and is completely accepted by the IRS.

At Tax Time it is important to remember this…

Depreciation is the #1 Tax Write Off available to investors today and just one of the reasons Commercial Property deserves a prominent place in your portfolio.

A significant number of businesses that come to market do not have consistent stream of earnings. Inconsistent earnings history makes it difficult for acquirers to predict future earnings and create a valuation challenge. Using an "industry earnings multiple", the most common metric used to value mid-market companies can be meaningless in these situations.

Which earnings number does one pick? The highest? The lowest? Most recent? The average? Weighted average?

On the surface, using weighted average may seem like an appealing answer. However, using weighted average typically leads to overvaluing or undervaluing the company by a substantial margin to the detriment of either the acquirer or the seller.

Assuming a reasonable earnings number can be picked using weighted averages, is "industry earnings multiple" a valid multiplier to arrive at a valuation? In not, how does one value these companies?

A keen appreciation of financial methods and industry knowledge are essential to answer these questions. The first step in the process is to gain a clear understanding of the reasons for the earnings variability. Some common reasons for earnings variability are:

* Economic changes in the target market

* Development phase of the company

* Large non-recurring income/expenses

* Loss/gain of large customers

* Entry/exit of major competitors

* Changes in management or key employees

* Changes in physical environment and target market

* Substantial changes in level or amount of operating equipment or people

* Changes in COGs that are out of line with changes in final product/service prices

Acquirers may see some of these reasons as problems that reduce the future earnings. They may also see some other reasons as opportunities that increase the future earnings. It is imperative that both the reasons and the impact be well understood early in the valuation process. Once the reasons are identified and their impact assessed, appropriate adjustments can be made to recast the financials to get a more meaningful picture of the company’s revenue and earnings stream. Quite often, these recasted numbers indicate a stable or predictable earnings or revenue stream.

If the earnings stream is predictable, the acquirer can use industry price/earnings multiples to arrive at a reasonable valuation.

If the earnings stream is somewhat erratic but the revenue stream is predictable, the valuation may have to rely more heavily on industry price/sales multiples.

If neither the earnings nor the revenues are predictable after recasting, the valuation process becomes highly subjective. In such a situation, the transaction price should either show a substantial discount to a market multiple or be tied to future performance of the business.

I have been a Realtor for more than 20-years. During that time I have safely shown thousands of properties to interested parties. Intermittently during my career, however, there have been reports of crimes against other real estate agents. These crimes are often committed by potential buyers or renters who lure agents into remote areas with no communications available.

More and more women today are showing commercial and industrial property to potential leasing prospects. The very nature of vacant or semi-vacant warehouse and industrial property often makes it either remote or physically separated from occupied office space.

The separation from other people can pose a threat, particularly to commercial real estate agents. Although this is true for both male and female agents, the biggest risk appears to be for the ladies.

Following are Seven Safety Tips from my own experience and adapted from the National Association of Realtors.

Tip #1 Choose to Run and Never to Fight

The primary objective in any threatening situation is to escape from the immediate danger and then call for help. You may fancy yourself as being a great fighter but do not try it! RUN

Tip #2 Cary a Charged Cell Phone and Always Rely On It

Clip your phone on your belt or carry it in a purse or briefcase. Your cell phone should always be part of your everyday apparel. It must be for immediate accessible. Always make certain your mobile phone is fully charged before showing property.

Tip #3 When you get to your destination, check out potential dangers:

• Do you see or sense any questionable or outright suspicious activity in the area?

• Is your vehicle parked in a visible spot with plenty of lighting?

• Can your car or truck be blockaded and trapped by a prospect’s vehicle?

Tip #4 Be Prepared at All Times and Dial Before Danger.

Pre-program emergency and important numbers into your mobile phone. For example, include your office, your roadside assistance service or garage, and even 911.

Tip #5 Never Walk Ahead of a Prospect.

When showing a commercial property, always have your prospect walk in front of you. Direct them along from a position slightly behind them. You can gesture for them to go ahead of you and say, for example, "The loading dock is in the back of this area."

Tip #6 Check Your Cell phone Signal.

When showing commercial and industrial property always remember that thick walls and/or remote locations may interfere with mobile phone reception. Be sure your phone has a good signal in the area in which you are showing the property.

Tip #7 Saying NO to Vacancy.

When describing a commercial listing, never say that a property is vacant. Instead, say that you will need to clear a showing time with the people in the area. Saying a property is vacant may be an invitation to criminals.

By always following these Seven Safety Tips Realtors can bank on staying safe and hopefully banking a nice commission.

Sick and tired of working for someone else? Looking to make the next move in your career and purchase your own business? Buying a business is one of the most important, life changing decisions you will ever make in your life. It is a decision that you and your family will have to make together. This way all family members can have their say and explain how this decision will affect their lives.

Buying an established is regarded as being a safer bet then starting a business from scratch.

To help you determine what type of business would be right for you, you need to ask yourself what industry would you be most suited to you? What industry would you be most qualified to run and have the most experience in, and most importantly, what would you enjoy the most. Determine what niche will give you lifestyle you desire. As the new owner, ultimately you want to wake up every morning saying to yourself "I can’t wait to go to work today!"

Unless it is an online business, the location is another very important point. The last thing you want is to have to drive for 2 hours to work every day if you are currently driving 20 minutes to work at the moment. If this is the case, and you feel that this business is right for you, then selling up and changing residency might be the best option. It could save you a lot of time and money i.e. fuel, car expenses and public transportation.

When you find a potential business for sale, and if all family members are in agreeance with the purchase of the new business, the next step is the make sure financials are up to scratch. Make an appointment to see the accountant for the businesses. He will be able to give you an honest run down of the businesses current financial situation. You need to make sure that the business is generating enough funds to keep the business afloat and to supporting the business, paying wages, supporting you as the owner and covering all business loan repayments.

Would you buy a new car without ever taking it for a test drive? Absolutely not, and nor should you buy a business with out learning the ropes before the purchase. If the seller is serious about the sale, they should not have a problem with you working the business for a minimum of 1 week, and if you are serious about the purchase, you will have be happy to do this free of charge. This is a perfect way to determine whether or not this is the right business for you.

Make sure you will truly enjoy your new business and career choice as you will hopefully own this business for many years to come.

Commercial equity loan line of credit can make access to cash quick and easy for your business or other investment goals.

Both owner-users and investors can tap into the equity of their commercial property. In addition, many types of properties qualify for this commercial line of credit.

I will highlight three main features of a commercial real estate equity loan, namely:

1. Main loan features

2. The type of commercial properties that qualify

3. Qualifying guidelines

#1 Main Loan Features

• Available in all 50 states
• Owner occupied and investor properties qualify
• Obtain an equity line from $100,000 to $1-million or more
• This is a Full Doc program, so you need to provide 3 years of business and personal tax returns
• Borrow up to 80% LTV based on the equity value of the property
• The equity line can be in 1st position for free and clear properties
• Interest rate based on the Prime Rate

#2 Types of Commercial Properties That Qualify

• Office
• Light industrial
• Warehouse
• Retail
• Mixed use
• Multi-family 5+ units
• Special use property: auto repair, auto sales, mini-mart, self-storage, fast food restaurant, gas stations less than 10 years old, daycare or preschool, convalescent homes, nursery, theatre, and bowling alley

#3 Qualifying Guidelines

• This is a Full doc program - You need to provide 3 years business and/or personal tax returns
• Good credit is needed with a personal credit score of 660 and above
• Repayment based on the tax returns, personal credit report and appraisal
• A Debt Service Coverage Ratio of 1.1 to 1.25 needed
• Title can be in business or personal name
• Be sure to verify that the 1st lien on the property does not have a clause prohibiting 2nd loans

Secured Business Line Option

If you are a business owner, a variation of this credit line will allow you to obtain a business line of credit secured by real estate assets including:

• Primary residence
• Second home
• Investment property
• Income generated from other owned property

Summary

Commercial property owners and business owners have more options than ever before to get cash out of their equity when they need it using a commercial equity loan line of credit.

Despite the current downturn in the residential real estate market, and mortgage industry woes nationwide, Orlando’s commercial real estate sector is alive and well, primarily due to investors eager to fulfill a continuous and growing demand for Orlando commercial real estate, particularly office and retail space.

A prime example of the confidence shown in Orlando, Fl. Commercial real estate is the recent purchase by the Maryland based realty firm Bavar Properties Group of a 34 acre parcel close to the Orlando International Airport, where a 375,000 square foot office complex is scheduled to be built. Additionally, construction has begun on a 336,000 square foot multi-use development project of office and retail space in the Lake Nova area, that further demonstrates the vibrancy of the Orlando commercial real estate marketplace, and the optimism shown by investors who remain confident in the long-term prospects of the Central Florida region as a whole.

As the residential market continues to falter, many builders specializing in this segment of the industry are looking toward the commercial market, and possibly will compete on future projects. However, at this stage of the game, it appears that commercial builders have little to fear from residential builders who are considering a move into the commercial sector to offset the stagnant prospects in residential housing. The problem many of these builders will encounter, will be in obtaining funding from lenders wary of financing construction firms with little or no experience in commercial project construction.

To find out more about new commercial developments that are in the planning phase please visit http://www.cflcommercialre.com/commercial-real-estate-blog/

Increase Your Profits With Sustainable Commercial Building

In 2007 green building practices are gaining popularity at an accelerated rate. The American consciousness of environmental issues has changed and the financial benefits of building, living and working green are becoming more attractive to residential and commercial real estate investors. Green design spotlights a variety of environmental and human health concerns.

- Reduction of exposure to toxic materials

- Conservation of non-renewable energy and materials

- Minimization of the ecological impact of building

- Utilization of renewable energy and recycled or earth-friendly materials

- Protection of local water, air, soil, plants and animals

- Support of transportation alternatives including walking, bicycles, mass transit and alternative fuels

Many people are also surprised to discover that in 2007 green design and building often costs the same as building more traditional designs. According to the July 2007 issue of Today’s Buyer’s Rep, in an article entitled Housing Trends Worth Watching by editor Julie Collins, a recent survey by the National Association of Home Builders (NAHB) shows that 97,000 homes have been built and certified by green building programs around the U.S. This is a 50% increase from the last survey conducted in 2004. The Santa Monica Green Building Program, reports, "Buildings have impacts on health as well as the environment. It is estimated that half of all commercial buildings suffer from air quality problems, resulting in poorer health of workers and other occupants".

Green Building and Design Options for Commercial Property Investments

In the commercial real estate industry economics and financial profit play an important part in green building. Businesses, corporations and investors are more likely to invest in green building if they know it will increase their bottom line. According to Commercial Investment Real Estate Magazine, "When analyzing green economics, commercial real estate professionals should consider long-term operating and maintenance costs. These factors are beginning to affect leases, insurance rates, loans, and other real estate practices as tenants, owners, banks, and communities recognize energy efficiency’s value". As technology advances and improves the performance of lighting, heating, cooling and water systems the operating costs of buildings will decrease. This will attract tenants and increase the value of your commercial property to future investors. When building or purchasing a green commercial design look for the following:

1.Energy Efficient Lighting Systems

2.High Performance Glazing

3.Ventilation Systems

4.Water Efficiency Systems

5.Green building materials (i.e. recycled materials or materials from renewable resources)

Incentives for Commercial Green Building

Increased profitability is the number one reason commercial real estate investors are moving towards more green building and design features. According to Building Momentum: National Trends For High Performance Green Buildings, a report prepared by the US Green Building Council for the US Senate Committee on Environment and Public Works, "Design features that enhance energy efficiency and indoor air quality are cost effective strategies for improving worker productivity and product quality. An increase of 1 percent in productivity (measured by production rate, production quality, or absenteeism) can provide savings to a facility that exceeds its entire energy bill".The report provides examples such as Lockheed, an engineering development and design facility in Sunnyvale, California and the Postal Sorting Facility in Reno, Nevada. Lockheed built a high performance green facility and experienced a 15% decrease in employee absenteeism that recuperated the extra costs of their facility within the first year. The Postal Sorting Facility in Reno experienced a 6% increase in the number of items sorted per hour when an alternative lighting system was installed.

In addition federal, state and local governments are now also offering incentives to commercial builders and investors interested in a green approach. According to the Building Momentum report "public and private entities offer financial and regulatory incentives. New York, Maryland and Oregon offer tax credits for LEED (Leadership in Energy and Environmental Design) certified buildings. Portland (OR) and Seattle (WA) offer grants for energy modeling, commissioning and related costs." The report continues to explain that, "Arlington County (VA) links preferred zoning considerations for LEED projects. Santa Barbara (CA) and Scottsdale (AZ) are some of the first jurisdictions to offer expedited permit reviews for buildings with certain high performance features. Tax credits and other incentives are part of broader green building assistance programs offered by a growing number of state and local governments across the country." Green building programs have been developed in California, Colorado, Maryland, New York, Pennsylvania and Wisconsin. As the green building and commercial investment trend continues tax incentives will increase and green building and design will continue to pay for themselves in more ways than one.