Luxury Real Estate

Courtesy of: Guifre Homedes of Amat. Immobiliaris

of change XXXVIX

By Immaculada Amat, January 2013

The year 2012 has ended, having surely been the most intense one in our professional life. So many things have been happening, and all so quickly, that it is difficult to evaluate them. For the time being though, we must be content as a company – another year has passed, and we have maintained the two objectives we have had since the start of the crisis: kepping our staffing levels up and continuing to invest in marketing.

And we should be more content still at having managed to:

• Increase our portfolio of real estate under administration, thanks to the confidence that a large bank has placed in us.
• Increase the number of properties sold in relation to the preceding year, albeit at lower prices.
• Integrate the new Sant Cugat Centre office in record time.
• Continue organizing our Real Estate Sector Dinners…and many more things.

We have achieved this thanks to the dedication of our people, to their capacity for being flexible and adapting to the requirements and demands of the current market. To the effort we have all put into constantly training and preparing ourselves. To the enthusiasm we bring to becoming better day by day. All that has kept us here, exhausted but alive!

Despite all that, it has not all been a bed of roses. We have problems, a great many problems, as does everybody these days.

We have embarked upon the much-feared 2013, and we are feeling nervous. All the news that reaches us is bad news, and all the forecasts worse. We are extremely concerned at the great economic and emotional stress that our society is bearing at the moment. How long can it hold out? We think that a collective effort must be made to retain jobs, for otherwise the country will collapse in the end.

From the Amat viewpoint, the image that is reaching us at the moment in looking at 2013 is the image of a circus – we will have to do balancing acts, work magic, tame wild beasts, make double somersaults, and if necessary, be clowns. There will certainly be tears and laughter, but we hope to reach the end of the year having got through the show and readying ourselves for the next performance.

In homage to Salvador Espriu, whose birth anniversary is being celebrated this year, we quote part of his poem:

“M’han de manta que parli de la meva Europa” (1959)
Que no siqui dece buda la nostre esperanca,
Que no sigui escarnida la nostre confianca;
Aixi molt humilment no demanem.

[“I’ve been asked to speak about my Europe” (1959)
May our hopes not be disappointed,
May our confidence not be ridiculed;
This we very humbly ask.]

KNOW MORE ABOUT US...

Barcelona Balmes 345 ▪ Sant Cugat Vallès Centre Rb. Can Mora 10 ▪ Valldoreix Pl. Can Cadena 2 ▪ Sant Just Desvern Bonavista 63 central

http://www.amatimmobiliaris.com/en| T +34 93 480 34 00 | info@amatimmobiliaris.cat

Courtesy of: Guifre Homedes of Amat. Immobiliaris

of change XXXVIX

As we do each year around this season, we are printing a calendar, and again like each year it revolves around a specific theme. This year we wanted to render homage to the foundations that work in our surroundings. We feel that they are currently playing an essential role in our society, deploying the efforts of large numbers of anonymous people to make up for the role that was formerly played by the Government. We are sure that without their contribution this society of ours would be even more polarised, and would be unable to provide a response to such pressing needs and requirements.

We are aware that this is just a small sample, that we have restricted ourselves to the ones closest to us. We are also aware that in other parts of the world the needs are much more urgent and substantial than ours.

In the end we have chosen those most directly related with the setting of Amat. Download our calendar here

We would also like to thank our sponsors and collaborators for the support we have received in producing this calendar.

We wish you happy festivities and, most especially, plenty of hope, positive outlook and strength for the coming 2013.

KNOW MORE ABOUT US...

Barcelona Balmes 345 ▪ Sant Cugat Vallès Centre Rb. Can Mora 10 ▪ Valldoreix Pl. Can Cadena 2 ▪ Sant Just Desvern Bonavista 63 central

http://www.amatimmobiliaris.com/en| T +34 93 480 34 00 | info@amatimmobiliaris.cat

Courtesy of: Vanessa Piñeiro of Amat. Immobiliaris

of change XXXVIX

Our Catalonia has changed since the last newsletter. A great movement arising out of the people themselves, and not from politics, has stirred our small country. The wish to become a State has turned on their heads the plans and strategies of all the political parties without exception. It strikes me as a great triumph of democracy. Doubtless we are all filled with doubts, even fears, but I am equally sure that we have to look ahead and advance along the path we have taken. The generations coming along behind us expect it and need it. A good client of ours said: “the step taken on 11 September is as important for us as man’s first step on the moon, there’s no going back.”

And while the country moves forward, we try to live with a day-to-day situation in which there are ever more problems. Among owners’ associations in blocks of flats, for example, of which we have administered a great number over many years now:

• We have never encountered a higher percentage of unpaid bills.
• Many associations have already spent their reserve fund, others have only been undertaking the minimum in maintenance work, and others again have been doing without services.
• We have a great many cases of payment enforcement proceedings under way for owners’ association debts. This has to be done even though we don’t know where it will lead us, apart from preserving the general interests of the associations, for the fact is that many association members cannot pay.

But as always we would like to be positive, and there is good news too:

• We have leased two industrial premises
• In Barcelona, sales of second-hand homes have reactivated.
• We will be going to Barcelona Meeting Point, where you can find us at the Professional Trade Fair from 17 to 19 October. We will also have a representation from 17 to 21 October at the General Public Fair, at the stands of the main banking entities we work with (Solvia, Catalunya Caixa and Caixa Penedès).

KNOW MORE ABOUT US...

Barcelona Balmes 345 ▪ Sant Cugat Vallès Centre Rb. Can Mora 10 ▪ Valldoreix Pl. Can Cadena 2 ▪ Sant Just Desvern Bonavista 63 central

www.amatimmobiliaris.com | T +34 93 480 34 00 | info@amatimmobiliaris.cat

Courtesy of Julie Kershner of Sotheby’s International Realty Mexico

After a multi-million dollar facelift, including a new convention center in San Jose del Cabo, we are ready to host the G20 this week for 20 leaders from around the world, including President Obama. In addition, 5 other countries have been invited to attend. Exciting times!

Real estate activity continues to improve, bringing more successful closings. The weather remains beautiful.

Life is good. Come visit!

Courtesy of Rimontgó

The agreement, originally signed in Hong Kong on 1 April 2011, came into effect on 16 April 2012, thus initiating a historic legal pact that bridges two continents.

The tax treaty, officially called the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion, follows a host of similar bilateral pacts between Hong Kong and countries ranging from Belgium and Switzerland to Kuwait and Japan.

Essentially and very clearly aimed at avoiding both double taxation and tax evasion, the treaty defines the respective taxing rights of the parties involved and clarifies taxable status and rates applicable to passive income and assets. As a result, it provides a clear guideline for investors and enables them to quantify the tax implications of potential investment, trade, property purchases or similar activity, as well as avoiding the chance of incurring a double tax bill.

The intended result is to boost trade and investment between the two countries by taking away uncertainty about tax issues and ensuring that profits, income or other taxable assets paid in the one location are offset against the other. In addition, tax rates will be capped at lower levels than those normally applicable in Spain, and can be reduced to 0% in the case of a company that holds at least 25% of the assets of the taxable enterprise.

By reducing withholding taxes on interest (19%) and royalties (24%) to 5%, and annulling Brand Profits Tax (19%) altogether, it is hoped that an important barrier to trade and investment flows into Spain from Hong Kong will be lifted. Such an agreement can only be effective if it is properly managed, and with this in mind a lot of work has gone into creating a modern structure for the efficient exchange of information between the two economic zones.

Though it is based primarily on Spanish tax concessions, the tax agreement is seen as an important step towards ensuring greater flows of investment and property purchases by Hong Kong-based investors in Spain, and involved the intense collaboration of the Consulate General of Spain and the Spanish Trade Commission in Hong Kong, who have effectively opened up a new and potentially very important market.

Courtesy of Amat Immobiliaris

This phrase, read in a book by Paul Auster, struck me as the perfect title for this month’s diary, because everything really is very strange.

We have rulers in Madrid who one day say things are white and the next black, who distort data any way they please.

We have the problem of big companies and the multi-million salaries that their managers and executives are paid even today. Only this last May 1st we read in the newspapers that Mr. Martin, CEO of the Martinsa company, was raising his salary!

And we have some government departments hiring staff, and they are hiring at prices way above the market levels, people without any kind of educational qualifications, earning the same as a good salesperson or a tax advisor with a masters degree. Who can explain such things?

There are the speeches given by leaders of the Catalan left parties, bitterly criticising the measures of the Catalan Government, as if the history of the region had nothing to do with them, when only yesterday they were the ones in government! Are they not part of the disaster, as we all are?

And while this strange world moves onward, most mortals have to work magic just to carry on. A company like ours, with so many clients, and close to its clients, sees the daily miracles that people and companies work in order to survive. A few examples:

• Over 50% of those who leave rented flats tell us, when asked, that they are going to live with relatives. The sociologists are right when they say that families are showing more solidarity than ever.
• Promoters who find themselves forced to sell off the last personal possessions left to them in order to pay the bank re-financing agreements they have had to take out over recent years.
• Industrialists, from whatever sector, with good orders portfolios, with impeccable banking records, who in order to be able to survive find themselves obliged to use their own personal assets as surety for the renewal of loans, doubtless for smaller amounts then they had before and under worse conditions. And that is only the ones who can manage even that, for the majority find themselves forced to close.
• Many lawyers and tax advisors who have had to join together to share offices, reinvent themselves, for many of their clients (companies) have disappeared.

All of us, or nearly all of us, have had to reinvent ourselves, but seeing as life goes on we do just that, move onwards without looking back... and precisely as life goes on, we never tire of saying “Investors, now is the best time, invest in the real-estate sector, it is full of opportunities!” Ifyou don’t, then in a few years — I don’t know how many — you will regret that you hadn’t!

Courtesy of Merry of Islandia Real Estate

This is a great time for buyers as the inventory of homes, land and condos is higher now than I have ever seen it. Buyers now can actually have a selection to choose from within their price range. See numbers below.

Homes For Sale = 178

Land For Sale = 271

Condos For Sale = 48

I am also happy to say that of all these listings Islandia has a large percentage with over $202M in listings, with our nearest competitor at just over $122M. Obviously a lot of sellers have faith in our company and trust us to do our very best on their behalf.

For more informationa bout real estate on St. John USVI contact Merry 340-776-6666 merryvi@aol.com www.islandiarealestate.com

To visit Islandia Real Estate’s blog, click here.

Courtesy of Rimontgó

 Hong Kong was the focus of Asian real estate in November as sector decision makers and professionals from the region – and across the world – converged on the city during the MIPIM Asia convention. Rimontgó was represented by both its principals, José and Antonio Ribes Bas, an indication of how important this region is becoming in the international luxury property market.

“We don’t expect Asian buyers to replace European ones in our core markets of Valencia and the Costa Blanca,” said José Ribes, “but it is clear that Asia, and the Far East in particular, is becoming an increasingly important player in international luxury real estate.” Mr. Ribes emphasised that there are two currents presently magnifying the importance of this new market: “The first is the fact that countries like China have been experiencing rapid growth for some time now, and as a result the number of industrialists and businesspeople with sufficient means to invest in luxury real estate on a global scale has grown rapidly both in quantity and in terms of their acquisitive power.”

In addition, he cites the current downturn in the developed economies, where wealth growth has slowed and those with the means are for the time being more cautious than their counterparts in Asia and other booming parts of the world. “The global slowdown will temper growth in the newly emerging economies as well, but even so wealth is growing greatly here and those with it have the confidence to spend it. What’s more, they have the foresight to look beyond their own immediate geography and recognise the great investment opportunities that are available in large parts of the world today.”

During the event the Ribes brothers met with representatives of the Spanish consulate, the Sino-Spanish Chamber of Commerce and representatives of other institutions aimed at promoting trade and investment. “It was highly instructive,” said Antonio Ribes. “Asia is very much in tune with what is going on elsewhere in the world, and this awareness comes both from the public and the private sector.” Indeed, the bulk of the professional participants were property experts, developers and investors from China and the Far East, but the event also attracted fellow industry specialists from South East Asia, the Middle East, Europe and former Soviet republics in Central Asia.

Emerging markets for commercial RE investments

Though many were aimed at attracting investment and buyers for real estate projects within buoyant markets such as China, India and Azerbaijan, there was also a significant body of investors looking for opportunities in other parts of the world. “Since many of the best deals are currently to be had in more developed markets such as Europe and the US, this is where much of their attention is focused,” said Antonio.

“What we are finding is that in addition to investing in local commercial and real estate projects, an increasing number of successful entrepreneurs in countries like China, Korea, Vietnam, Singapore and India are also looking to expand their portfolio geographically to include especially commercial RE opportunities in Europe and America.” The latter includes office complexes, retail and entertainment facilities such as shopping malls, cinemas and theme parks, but also golf courses, resort hotels, marinas and wineries. “In addition there is an interest in land, both for future development and with a focus on timber, agricultural and mining resources.”

With this in mind Rimontgó will be looking to further develop its commercial division in the coming year to offer a more independently focused and specialised service to international clients that wish to avail themselves of the enticing investment opportunities now available. “Through our international networks we can offer serious investors not only a wide range of different product types but also in a broad range of countries including Spain, Italy, the UK and the USA,” says José Ribes, whose firm will be building on its existing expertise in commercial, retail, resort and vineyard investment consulting. “In an ever-changing market it is important to be aware of the latest trends, and to know how to respond to them. Our Asian trip confirmed our impressions about the potential of this growing market. We also made many valuable contacts there, but above all it has spawned an exciting new project that will act as a valuable complement to our existing activities and initiatives.”

Photos courtesy of MIPIM_World.

Courtesy of Rodeo Realty

Greg Moesser of Rodeo Realty will be speaking at the 3^rd edition of Prestige MLS Luxury Real Estate Congress. A renowned expert in the field, he will provide unique insight and analysis on hot topics related to Luxury Real Estate, Marketing, web and social media.

Greg Moesser : “Attracting European Buyers in USA” Greg Moesser, is Vice President of the Private Estates Division, Rodeo Realty and the Director of LA Classic Estates, a luxury boutique agency based in Beverly Hills, California.

He is considered one of LA’s leading agents and specializes in the highly Los Angeles Westside neighborhoods of Berverly Hills, Bel Air, Hollywood Hills and Malibu. As a specialist in California luxury Properties, ha assists international buyers seeking USA properties. He has represented clients worldwide, including buyers from Europe, Russia and Dubai.

For more information about Rodeo Realty, visit their website.

For more information on the 3^rd Prestige MLS Luxury Real Estate Congress, visit their website.

Courtesy of Rimontgó

It is hardly possible to think of Barcelona without images of Antoni Gaudi's spectacular architecture springing to mind. This proud Catalan has managed to provide a visual focus for a city that could, in the first place, never have been accused of lacking beauty or character.

A deeply pious man, Gaudi was born in 1852 and was famously killed in 1926 by a tram on his way to Mass at Sant Felip Neri church. The unorthodox architect had suffered from exceedingly poor health throughout his life, yet his religious fervour led him to subject himself to rigorous spiritual challenges that involved strict fasts. Eschewing the trappings of physical beauty that so characterise his creations, Gaudi's appearance was so worn and bedraggled at the time of his fatal accident that he was initially mistaken for a penniless tramp. It was only when a priest from the Sagrada Familia recognised him that staff at the hospital to which his unconscious form was taken realised that their patient was the famous Antoni Gaudi.

Even in spite of the fact that it is still not complete, the beautiful Sagrada Familia basilica has been Barcelona's premier tourist attraction for decades. Begun in 1882, the church was only consecrated last year when Pope Benedict visited the city. Plans have been made to ensure that the building will be completed in 2026, just in time for the anniversary of its creator's death.

By this time, fans of this spiritually fervent man are hoping he will have been declared a saint. Gaudi's beatification has already been set in motion, but religious experts predict that his canonisation may be some way off, since no miracles have been attributed to him. The millions of fans of his architecture will argue that the dizzying form of the Sagrada Familia itself provides all the evidence that is needed!