South Korean residents' overseas real estate purchases doubled in the first half of this year from a year earlier because of government deregulation, the central bank said Tuesday.
According to the Bank of Korea, residents reported 1,992 cases of purchasing foreign real estate properties worth US$602.6 million in the January-June period, up from 980 cases worth $323.4 million a year earlier. Some $510 million, accounting for 85 percent of the declared amount, were remitted abroad.
As part of measures to stop the won's gain against the greenback by spurring capital outflow, the government raised the ceiling on individuals' overseas property purchases for investment to $3 million from $1 million in February and removed limits on purchasing properties for residency in March.
Individuals declared 1,357 cases of buying houses and shops valued at $564.7 million in the first half, up from 377 cases worth $156.8 million a year ago, as purchases for investment purposes shot up. Their buying accounted for 93.7 per cent of the total purchases.
Individuals' real estate purchases for investment surged to 962 cases worth $391.2 million in the first half from 62 cases worth $21.9 million a year earlier. The purchase of residences amounted to 395 cases worth $173.5 million, compared with 314 cases totaling $134.9 million from a year earlier.
Individuals invested most heavily in the United States to buy homes and shops, followed by Canada, Singapore and Malaysia. Asian nations including Singapore, Malaysia and the Philippines emerged as popular investment destinations.
Corporate buying of properties came to 35 cases worth $20.1 billion in the first half, compared with 12 cases amounting to $149.8 billion a year ago, amid a fall in real estate development projects in foreign nations.
Overseas membership purchases, mostly golf club memberships, inched up to 600 cases worth $17.8 million in the first half from 591 cases valued at $16.8 million a year earlier, the central bank said.
Thursday, August 2, 2007
Sunday, July 22, 2007
How to Use Less Gas: Alternative Transportation
At around $3.00 a gallon, experts are saying that the price of gas is not impacting the economy too much. We seem to be able to handle $3.00 a gallon.
However, does any reader seriously believe that this is it, that prices are not going to keep on rising? And at some point, probably sooner rather than later, this gas problem is going to start affecting the way we all live our lives.
This means that those of us who learn how to use less gas will be in the best shape going forward. Yes, we are going to have to start taking this seriously and coming up with strategies for buying less gas. Here are some ideas that I think are worth considering.
First, if you live in a city with a good transportation system, don't buy a car. If you have a car, sell it. You will save a fortune on insurance, gas and parking (which in New York can cost as much as what apartments cost elsewhere).
When you really do need a car, for example when you are leaving town for the weekend, rent one. In town, just use mass transit, and, if you can afford it, taxi cabs. You will save a bundle and help the environment.
Personally, I don't know why anyone who lives in Manhattan needs to own a car.
Second, another idea for city dwellers: car sharing. There are new car sharing programs creeping up in cities all over the United States and they really seem to be taking off. Whenever I am in Philadelphia, I see "Car Share" autos all over the place.
Car sharing works like this. You pay a small monthly membership fee and a per hour charge whenever you want to use a car. To use a car, you make a reservation, pick up a car at a usually close by pickup point (in Philadelphia, these "pods" are all over the city), and return it to another close by location when you are done. Hourly rates are low (under $3.00/ hour in Philadelphia, about $6.00/ hour in New York), which includes insurance. It's an amazing deal and you can save thousands of dollars a year.
In Philadelphia, they even pay for your subway fair to get to the nearest pod. It is unbeatable, which I presume is why this seems to be really catching on. Watch for this coming to a city near you.
Third, consider biking. I bike to my office any day that I will not be seeing a client or going to court. Its great exercise, it costs nothing, and its fantastic for the environment.
Biking is also great fun. It allows you to see nature up close. If you bike a route that you have driven for some time, you will likely see things you never saw when you were driving.
Fourth, take a look at car pooling programs. Many employers, states and counties have car pooling programs that are well established. You save a small fortune by sharing your ride to and from work. And you can also make new friends.
Fifth, also consider commuter van programs. Many employers sponsor van programs as do also local governments. There are also small bus lines that run directly from certain communities into larger communities, which is also a form of van pooling.
Again, you can save thousands of dollars a year and have someone to talk to on the way to work. Vans range from ordinary to luxurious, with plush seating and screens for videos, etc.
Sixth, evaluate location assistance programs. Many governments will help businesses relocate to places that are near mass transit stations -- which will allow the workforce to more readily use mass transit.
Financial incentives may also be available for these kinds of relocations.
And finally, if you are going to remain car dependent, then lets for once and for all stop buying those gas guzzling SUVs. Unless you really have 30 kids that you need to take to school every day, they make no sense at all any more. I am not sure they ever made much sense.
That's my list of gasoline saving ideas. Hopefully one or more will work for you. If so, you will be in better shape when gasoline prices go even higher than they are today
However, does any reader seriously believe that this is it, that prices are not going to keep on rising? And at some point, probably sooner rather than later, this gas problem is going to start affecting the way we all live our lives.
This means that those of us who learn how to use less gas will be in the best shape going forward. Yes, we are going to have to start taking this seriously and coming up with strategies for buying less gas. Here are some ideas that I think are worth considering.
First, if you live in a city with a good transportation system, don't buy a car. If you have a car, sell it. You will save a fortune on insurance, gas and parking (which in New York can cost as much as what apartments cost elsewhere).
When you really do need a car, for example when you are leaving town for the weekend, rent one. In town, just use mass transit, and, if you can afford it, taxi cabs. You will save a bundle and help the environment.
Personally, I don't know why anyone who lives in Manhattan needs to own a car.
Second, another idea for city dwellers: car sharing. There are new car sharing programs creeping up in cities all over the United States and they really seem to be taking off. Whenever I am in Philadelphia, I see "Car Share" autos all over the place.
Car sharing works like this. You pay a small monthly membership fee and a per hour charge whenever you want to use a car. To use a car, you make a reservation, pick up a car at a usually close by pickup point (in Philadelphia, these "pods" are all over the city), and return it to another close by location when you are done. Hourly rates are low (under $3.00/ hour in Philadelphia, about $6.00/ hour in New York), which includes insurance. It's an amazing deal and you can save thousands of dollars a year.
In Philadelphia, they even pay for your subway fair to get to the nearest pod. It is unbeatable, which I presume is why this seems to be really catching on. Watch for this coming to a city near you.
Third, consider biking. I bike to my office any day that I will not be seeing a client or going to court. Its great exercise, it costs nothing, and its fantastic for the environment.
Biking is also great fun. It allows you to see nature up close. If you bike a route that you have driven for some time, you will likely see things you never saw when you were driving.
Fourth, take a look at car pooling programs. Many employers, states and counties have car pooling programs that are well established. You save a small fortune by sharing your ride to and from work. And you can also make new friends.
Fifth, also consider commuter van programs. Many employers sponsor van programs as do also local governments. There are also small bus lines that run directly from certain communities into larger communities, which is also a form of van pooling.
Again, you can save thousands of dollars a year and have someone to talk to on the way to work. Vans range from ordinary to luxurious, with plush seating and screens for videos, etc.
Sixth, evaluate location assistance programs. Many governments will help businesses relocate to places that are near mass transit stations -- which will allow the workforce to more readily use mass transit.
Financial incentives may also be available for these kinds of relocations.
And finally, if you are going to remain car dependent, then lets for once and for all stop buying those gas guzzling SUVs. Unless you really have 30 kids that you need to take to school every day, they make no sense at all any more. I am not sure they ever made much sense.
That's my list of gasoline saving ideas. Hopefully one or more will work for you. If so, you will be in better shape when gasoline prices go even higher than they are today
Tuesday, July 10, 2007
HOA Insurance Bid Steps
Purchasing homeowner association insurance is one of the most important buying decisions the board will make. The decision addresses risk management and must meet or exceed any insurance requirements mandated by the state and the HOA's governing documents.
Step #1: Start Early. Begin the process at least 90 to 120 days prior to the renewal date by ordering updated loss histories from all insurance carriers who have provided coverage for the Association for the past three to five years. While requesting the loss history, don't forget to confirm with the current agent/broker his opinion as to whether the current insurance carrier will be offering a renewal.
Step #2: Check Loss History Accuracy. Losses can be miscoded (like "Mold Claim," when it wasn't), or a loss that should have been attributed to a different insured or a loss that continues to appear on the loss history even though the insurance carrier successfully subrogated against the negligent party (got repaid). It's also possible your carrier's version of your loss history doesn't really reflect today's condition of the property. If your HOA has taken steps to improve the property since the losses occurred, write a narrative about those steps taken and attach it to the loss history. If a particular problem has since been corrected, make sure the carrier knows it.
Step #3: Assemble a Complete Bid Package. Preparing a complete bid specification will make the evaluation process easier. The bid package should include:
Brief description of the property including the number of units, year built, type of construction, overview of amenities (pools, spas, etc.) and any other structural improvements the HOA may have an insurable interest in;
Copies of the governing documents;
Copy of the site plan;
Current three year loss history on the prior carrier's letterhead;
Copies of the declarations page from the current year;
Copies of the HOA's most current financial statement and budget; and
Current appraisal (if available).
Steps #4: Assign the Markets. An insurance carrier will only release a premium quote to one agent. If more than one agent wants to use the same insurance carrier, you'll have to assign which person will access that market on your behalf.
Step #5: Evaluate the Insurers. While there are five well-known insurance rating organizations, most HOAs rely on AM Best. The letter grade ratings (A through F) and financial size categories (Roman numeral I through XV) can give you a quick barometer of a carrier's health. In addition to the financial ratings, the board will want to consider the carrier's experience with HOAs. A carrier who is new to the homeowner association market is probably not a good fit.
STEP #6: Is the Agent Qualified? Consider years of experience insuring HOAs and involvement in industry trade organizations like California Association of Community Managers (CACM), Oregon Washington Community Association Managers (OWCAM) and Community Associations Institute (CAI). The agent/broker professional designations should include CPCU (Chartered Property and Casualty Underwriter), ARM (Associate in Risk Management), CIC. (Certified Insurance Counselor), and CIRMS (Community Insurance and Risk Management Specialist).
STEP #7: Use a Spreadsheet. Even the most experience risk manager will create a "line by line" comparison of the coverages and benefits being offered by the various companies offering a proposal. A visual representation of this type will easily illustrate the merits or deficiencies provided by one proposal over another and will tell you if a certain proposal is competitively priced only because the agent/broker has omitted an important coverage.
STEP #8: Let Price Be the Last Consideration. Price is important but don't fall into the trap of going to the "bottom line" first. If you do, you may forget the number one goal of buying insurance: protecting the HOA's assets. Be certain that you're getting what you need before signing the check.
Step #1: Start Early. Begin the process at least 90 to 120 days prior to the renewal date by ordering updated loss histories from all insurance carriers who have provided coverage for the Association for the past three to five years. While requesting the loss history, don't forget to confirm with the current agent/broker his opinion as to whether the current insurance carrier will be offering a renewal.
Step #2: Check Loss History Accuracy. Losses can be miscoded (like "Mold Claim," when it wasn't), or a loss that should have been attributed to a different insured or a loss that continues to appear on the loss history even though the insurance carrier successfully subrogated against the negligent party (got repaid). It's also possible your carrier's version of your loss history doesn't really reflect today's condition of the property. If your HOA has taken steps to improve the property since the losses occurred, write a narrative about those steps taken and attach it to the loss history. If a particular problem has since been corrected, make sure the carrier knows it.
Step #3: Assemble a Complete Bid Package. Preparing a complete bid specification will make the evaluation process easier. The bid package should include:
Brief description of the property including the number of units, year built, type of construction, overview of amenities (pools, spas, etc.) and any other structural improvements the HOA may have an insurable interest in;
Copies of the governing documents;
Copy of the site plan;
Current three year loss history on the prior carrier's letterhead;
Copies of the declarations page from the current year;
Copies of the HOA's most current financial statement and budget; and
Current appraisal (if available).
Steps #4: Assign the Markets. An insurance carrier will only release a premium quote to one agent. If more than one agent wants to use the same insurance carrier, you'll have to assign which person will access that market on your behalf.
Step #5: Evaluate the Insurers. While there are five well-known insurance rating organizations, most HOAs rely on AM Best. The letter grade ratings (A through F) and financial size categories (Roman numeral I through XV) can give you a quick barometer of a carrier's health. In addition to the financial ratings, the board will want to consider the carrier's experience with HOAs. A carrier who is new to the homeowner association market is probably not a good fit.
STEP #6: Is the Agent Qualified? Consider years of experience insuring HOAs and involvement in industry trade organizations like California Association of Community Managers (CACM), Oregon Washington Community Association Managers (OWCAM) and Community Associations Institute (CAI). The agent/broker professional designations should include CPCU (Chartered Property and Casualty Underwriter), ARM (Associate in Risk Management), CIC. (Certified Insurance Counselor), and CIRMS (Community Insurance and Risk Management Specialist).
STEP #7: Use a Spreadsheet. Even the most experience risk manager will create a "line by line" comparison of the coverages and benefits being offered by the various companies offering a proposal. A visual representation of this type will easily illustrate the merits or deficiencies provided by one proposal over another and will tell you if a certain proposal is competitively priced only because the agent/broker has omitted an important coverage.
STEP #8: Let Price Be the Last Consideration. Price is important but don't fall into the trap of going to the "bottom line" first. If you do, you may forget the number one goal of buying insurance: protecting the HOA's assets. Be certain that you're getting what you need before signing the check.
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