According to Forbes magazine, Warren Buffet, the CEO of giant American investment fund Berkshire Hathaway, is the world’s second richest man. He’s made a fortune for himself and his fellow shareholders by investing in the world’s stock markets over many decades. The great stock market crash of 2008 began in September. Many people cringed when Buffet went back into the markets aggressively the following month, well before the markets bottomed in February this year. The point I’m trying to make is that if the world’s most successful investor of all time doesn’t know when the markets have bottomed, then what chance for the rest of us? It’s well-nigh impossible to second guess share price movements, and this is why I’m a keen advocate of unit cost averaging. The so-called drip-feeding approach, investing a little at a time, can be very beneficial whatever the markets are doing. It can make a big difference to the performance of a portfolio, whether it’s a lump sum investment or a regular savings plan generating a pot for retirement, school fees etc. This is how you can benefit from volatility and price fluctuations.

Volatility is inherent in equity investing. It’s important for you to realise that market fluctuations are normal and you should therefore be aware of the risks. Fluctuating share prices obviously mean that the unit prices of funds will also fluctuate, thereby impacting on the value of your portfolio. This is where a strategy of regular investing or drip-feeding really pays off.
The following example demonstrates what can happen when investing in periods of high volatility.


Key points

• The effect of the fluctuating unit price has meant that Example B has ended up with a higher fund value than in a steadily increasing market. Even though the unit price is actually lower at the end of the example than it is at the start.
• To reap benefits from stock markets an investor need not necessarily have a large lump sum to invest.
• Unit cost averaging holds obvious benefits for investors making regular savings/premiums.
• It is important to consider the risks associated with all types of investment, particularly those associated with equity markets.

With the above in mind I think it appropriate to show again how the markets have performed over the recent past. As you can see there have been periods of high volatility. Unit cost averaging has worked during this time to great effect, and no doubt will do so again in the future.

The bigger picture
The case for investing in equities
Taking into account the effects of any short term volatility, the case for investing in equities remains as strong today as it has ever been for those investors with a long-term investment horizon. Over the last 25 years, an investment in the S&P 500 would have grown to almost 20 times its original value.

George Lindsay, Wealth Manager at Expat Solutions

Posted under Investments & Financial Opportunities, Lifestyle, Property News

The oldest club of any kind on Phuket, Phuket Yacht Club, turns 40 this year – and is gearing up to celebrate in style at Royal Phuket Marina.

Phuket Yacht Club is located in one of the safest and most idyllic bays on the island, Ao Yon on Cape Panwa. The club is reminiscent of days long gone, when expats would laze away a Sunday afternoon over cold beers and varied conversation, undisturbed by jet-skis, mass tourism or… well, anything for that matter.

Of course, if lazing isn’t your thing, there is the sailing…The aim of the club – essentially a small boat/dinghy sailing club – is to introduce people to the sport of sailing and encourage others to participate in sailing, club racing and other water activities.

The club offers recreational sailing, club racing, boat rental and family day barbeques – as well as racing lessons to children. In co-operation with Topper Sail, a whole range of sail training is also available for children as well as adults. Those ‘in the know’ when it comes to sailing say that people who start out in dinghies make absolutely the best sailors.

The club’s community contributions include links with Sunshine Home in Koh Sirey; the club invites the Sunshine children to learn about sailing and participate in free lessons, racing and family days at the club. It is the club’s aim that these children have the opportunity to participate in Optimist racing events around Thailand – and possibly even further afield.

The club’s history goes back 40 years and it’s recognised as the oldest yacht club in Thailand. It has always been based in Ao Yon and has always concentrated on teaching sailing and water sports to as many as possible from all walks of life.

This year is the club’s 40th birthday and, on Saturday, November 21st from 5.30 pm, Skippers in Royal Phuket Marina will be hosting a celebration of four decades of promoting sailing – a celebration that should appeal to all ages. Children’s entertainment, a buffet dinner, silent auctions, happy hour bar, music and raffle prizes from some of Phuket’s most prominent hotels and businesses – not to mention revelers from every walk of life and every part of the island – should make for a party worthy of the occasion.

Apart from the celebratory nature of the party, the objective is to raise funds to promote junior and youth sailing on Phuket and to continue the work providing sailing opportunities to underprivileged children.

Tickets are at 600 baht for adults and 150 baht for kids. Tickets are available on the day. Just show up and enjoy!

Posted under Lifestyle, Travel & Tourism

Phuket, and its surrounding areas, has become one of Thailand’s best-established markets for hotel, villa, condominium and resort-related businesses. Although demand has slowed over the last 18 months, new developments continue to proliferate across the island. In geographical terms, development zones in Phuket can be broadly divided into five areas – north, west, south, east and inland.

With high concentrations of villa development and a resulting shortage of developable sites in the west, the most recent construction has been concentrated in the north, east and southern areas. The east of the Island provides opportunities for marine-related developments and tourism. Some villa developments there, such as The Cape and The Bay have been effectively marketed internationally. It’s anticipated that this area will begin to see more varied development in the next few years in response to the demand from both clients and investors.

Generally, In terms of unit types in all resort locations, two-bedroom configurations comprise the largest proportion, already constructed or currently being built. This design is well-suited to meet the demand for holiday accommodation. Increasingly, such properties are also being purchased on a ‘buy-to-rent’ basis.

The beauty of the beaches in Thailand and the price of land, which internationally is still perceived as reasonably good value for money, continue to be strong attractions for buyers wishing to invest in a holiday residence or second home.

Tourism related opportunities will, of course, continue to be the mainstay of Phuket’s real estate market, for many years to come. The island is now established as a major international holiday destination.

With a growing number of repeat and new tourist arrivals year-on-year, opportunities will continue to exist for all segments of the hotel industry. In the low-end sector, there will always be student and backpacker tourism, as Phuket is recognised as a base for Andaman Sea island hopping. The midrange market segment will see renewed growth once homeland job security is restored. The top end of the market will continue to experience strong demand attributable to the diversification and greater financial stability of the clientele. There continues to be a need for good branding and service delivery in all sectors. The marina tourism segment in particular will see renewed growth when the global economy stabilises.

According to Thai law, foreigners can purchase up to 49% of the saleable area in any freehold condominium project. Eligible foreigners include:

• those with residence permits
• those granted permission to enter the Kingdom under the Investment Promotion Act as investors in a limited company more than 49% owned by aliens.
• foreign juristic persons with Investment Promotion Certificates
• foreign individuals or juristic persons remitting foreign currency into the Kingdom for the purchase of a condominium unit.

The remaining 51% of the condominium area must be sold either to Thai nationals or Thai corporations. In some cases, foreigners who are shareholders in legally defined Thai companies are able to acquire the Thai ownership quota in condominium projects. To avoid complications with this issue, many projects in Phuket offer condominiums on a long-term lease basis for a period of 30 years, which can thereafter be extended for two additional 30-year lease periods. This amounts to a 90-year lease.

These laws are all well known now and generally accepted in the marketplace. It’s always a good thing for developers to ensure that their sales and purchase agreements are very clear, and are understood by the buyers. The developer’s sales staff should therefore be well-versed in the application of this legislation.

A new breed of developers?

We’ve recently seen an increase in both foreign and domestic developers who have adopted a new strategy of selling to the domestic as well as the foreign market. This is already a feature in other resort destinations like Hua Hin and Pattaya. Projects with prices per square metre ranging from THB 70,000 to THB 85,000 are becoming more popular. They offer the same common facilities as developments that were previously built at a higher cost. If the project has good rental programs and is to be managed by a respected service provider, Thai investors will see it as a good choice. Phuket’s status as a mature tourist market seems assured.

Jones Lang LaSalle

Posted under Lifestyle, Property News

Often when people think about insulation they think of keeping in the heat, of cold countries and thick walls. However even in tropical climates insulation is an important part of construction and now there are new developments which mean that insulation can not only be more environmentally friendly but safer for people as well.

There are many benefits to having good insulation. It reduces heat gain in tropical climates such as Thailand. It also controls condensation which is important in a country where it rains heavily for part of the year and is humid all year round. Water stains or mould on interior lines are the most obvious sign of condensation and this means that the humid air has infiltrated the building structure.

Insulation also reduces noise levels and the strategic use of acoustic insulation is an essential part of any modern construction. For example, even the noise of rain through metal roofing can be significantly reduced by installing good insulation in the roof system.

Insulation should also help you save on energy costs. Because it reduces heat gain houses should be able to save between 30 to 50% on electricity bills.

Factors to take into account when choosing insulation include air temperature, levels of solar radiation, air movement and humidity. Tropical environments such as Thailand generate the most extreme and powerful examples of each of these factors.

Usually conventional polystyrene and polyurethane foam blends are used in insulation because of their excellent capacity to insulate, but they require petroleum for production, contain toxic chemicals and are non-biodegradable. However, more and more ‘green’ insulating products are coming onto the market.

Recycled paper insulation is currently popular in the UK and uses recycled newsprint. Over one million homes in Britain now have this type of insulation.

Hempflax insulation mostly uses hemp fibre with some added polyester fibre for reinforcing. Hemp is naturally resistant to moths and beetles so extra chemical applications are avoided.

Cotton fibres are also a popular option as they also contain no harmful chemicals. Glass fibre insulation uses up to 80% of recycled glass and has proven to be very effective.

The very latest idea is organic insulation which consists of water, flour, minerals and mushroom spores. Scientists are still testing this product but it is possible that this will be the way forward. It is cheap, easy to manufacture and completely safe for the environment and people.

Sustainable practices are the measures that satisfy the needs of people today while enhancing the quality of life for future generations. So make sure you choose insulation which is not only practical and effective, but environmentally friendly and uses up to 80% of recyclable materials in its production. After all, in Thailand everything is recycled, so it can’t be that hard.

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Health, Lifestyle, Property News

The home can be a toxic waste dump and cleaning products are especially responsible for creating air that is often up to ten times less clean than the air outside your front door. Floor and furniture polish contain phenol, diethylene, glycoland and other toxic compounds. Glass cleaners have ammonia, metal cleaners have phosphoric and sulfuric acid and oven cleaners contain lye. Air fresheners also contain phenol, cresol and formaldehyde. The list goes on.

The health risks of using chemically-based products include allergies, cancer, migraines and nausea. Only 7% of the three thousand chemicals produced in amounts of one million pounds a year have been fully tested. Manufacturers of cleaning compounds do not have to disclose what is in them. This means you may want to turn to more environmentally safe cleaning alternatives.

There are natural ingredients that you probably have in your fridge and cupboards which clean just as well as store-bought chemically based cleaners, and are much friendlier to the environment, not to mention your children and pets.

Vinegar, lemon and baking soda are three ingredients which separately or combined will have your house cleaned in a jiffy, smelling wonderful, and are all non-toxic.

Vinegar

This is an all-purpose cleaner. Mix a solution of one part vinegar to one part water to create a natural disinfectant and deodorizer. It is cheap and safe to use on most surfaces, however never use it on marble or on tiling as it eats away at the grout.

In the bathroom you can use it to clean the bathtub, toilet, sink and counter tops. Use pure vinegar in the toilet bowl to get rid of rings. It will remove scum and hard water stains on fixtures as it is naturally acidic.

In the kitchen it can be used on stovetops, appliances, countertops and the floor and in the laundry it is a natural fabric softener. If you add half a cup to the rinse cycle, it has the added benefit of breaking down laundry detergent more effectively.

Lemon Juice

This will dissolve soap scum and hard water deposits. It will also give a wonderful sheen to brass and copper. If you mix it with baking soda and vinegar it creates a general cleaning paste.

Mix one cup of olive oil with half a cup of lemon juice and you have a great furniture polish for hardwood furniture. A whole lemon peel in the garbage deposit freshens drains and kitchens.

Baking Soda

This is used to scrub surfaces in the same way as abrasive cleaners and is a natural deodorizer. A box placed in the fridge or freezer will absorb all odors.

In Thailand, there is a tendency to overuse chemically-based products in the home. These can not only affect the environment as a whole, with runoff into drainage systems and air pollution, but create health risks for you and your family. Natural alternatives clean just as well, are cheap, and create a much better living environment. Why not raid your cupboards and give them a try?

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Health, Lifestyle, Property News

We all know the ‘three R’s’ – reduce, re-use and recycle. But how much recycling actually takes place in Thailand? Do you recycle, and if so how do you go about it? Countries such as America, Australia and Denmark have set new standards in recent years for recycling waste products, but Thailand has been slower to jump on the bandwagon and is only now putting some initiatives into place, both formally and informally.

In 2004, the Thai government decided to implement an environmentally friendly waste disposal policy and enhance the waste disposal capacity of local administrative authorities. It also promised to promote the private sector’s role in research and development for recycling of raw material and utilisation of clean technology. The aim is to reduce by 30% the amount of waste generated within 2009.

Of the recyclable materials that are collected, more than 70% is collected informally. The waste collectors or ‘sa leng’ are the most prominent and easily recognised recyclers, as they commonly use tricycles or rickshaws to collect the waste. Municipal garbage collectors sort and collect recyclables for sale on an informal basis, to supplement their income. There are also several thousand waste pickers or scavengers who collect waste from windfall and sell it as a livelihood.

Currently the materials that are regularly collected for recycling include plastic and glass bottles, food tins and cartons, paper and cardboard. Some of these items are sold to recycling factories and some are used directly to make new products.

Education is an important element in encouraging people to recycle. The Green Island Project on Koh Samui was established in June 2007 and aims to encourage more environmental awareness.

On Phuket, schools, hotels and other institutions are also taking the lead by sorting their own garbage and providing education to employees while doing so.

On a day-to-day basis what can you do to help recycle? Here are four simple ways to get started:

• Don’t accept plastic shopping bags when shopping – take your own re-usable bag.
• Use glass drinking water bottles and make sure they’re returned to the company to be used again.
• Separate foodstuffs and try composting with organic waste.
• In Phuket and Koh Samui there are waste sorting plants where you can take your household waste, which operate 24 hours a day. Contact your local town municipality office to find the plant nearest to you.

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Lifestyle

As the world continues its search for viable, affordable and renewable energy sources, one type of alternative energy is of particular interest to those who live on Thai islands or in seaside resorts. Coastal areas in particular are suitable for wind power production and medium scale wind farms have already been established on Phuket and the Thai mainland. Small scale wind turbines are also being used to power everything from household appliances to shop lighting.

The market for renewable energy is growing dramatically and annual investment worldwide now exceeds US$100 billion. This of course includes solar energy, biomass, hybrid energy options and nuclear power as well as wind energy generation. Currently wind produces only one per cent of world-wide electricity, but the figure is rising rapidly. This form of power is a viable alternative to fossil fuels as it’s plentiful, can be widely distributed, and produces no greenhouse gas emissions.

Wind power is the conversion of wind energy into a useful form using wind turbines. Of course, as with any new idea, there are advantages and disadvantages. The construction of large scale wind farms is not universally welcomed due to their negative visual impact and the danger to local birds. Such farms also need a large area of land, which is not always readily available near built-up tourist centres.

However it’s generally recognized that the advantages of wind power outweigh the disadvantages as oil prices soar and coal production decreases.

In some countries, wind generated electricity is used by large companies or factories but in Thailand it’s employed on a smaller scale for homes or shops. The issue here is that the wind is of a constant, low-level nature, rather than the big gales, which are associated with other parts of the world. On Koh Lan, the Thai Windmill Energy Company has a pilot project with 40 wind turbines. It’s the first wind energy plant developed by Thai technologists and is tailored to suit local climate and weather conditions. They’ve developed wind turbines with smaller blades and thinner pillars to suit the particular weather conditions, so now villagers on this island have an alternative to diesel for their electricity consumption.

The cost of the new Thai turbines is also considerably less than normal turbines. The Thai Windmill Energy Company sells each turbine for US$10,000 compared to the usual cost of US$66,000 in America and Europe. Although wind power will never provide for all the electricity needs in Thailand, it has great possibilities for coastal regions and with Thai companies working on producing smaller wind turbines suited to the local climate, you might soon find yourself purchasing a turbine to power your own electricity needs at home. Used in conjunction with, for example, solar energy panels, this renewable resource could change the way we live and provide a cleaner environment for future generations.

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Lifestyle, Property News

EM naturally attach themselves to harmful micro-organisms, neutralizing odours and cleaning stagnant water.

On resort islands like Phuket, water contamination presents a serious challenge, both for residents and those working within the hospitality industry. Widespread construction and development can disturb the natural balance and the water is one of the first resources affected. A constantly growing transient population, combined with high volumes of human and residual waste mean that if solutions can’t be found, pollution quickly takes hold. EM, or Effective Micro-organisms, offer an effective, natural answer to the problem of wastewater treatment and many residents and businesses around the island are already using EM products to clean and protect their natural surroundings.

Effective Micro-organisms were first developed by Professor Teruo Higa at the University of Ryukyus in Okinawa, Japan. Concerned by the damaging effects of agrochemicals, he focussed his attentions on developing natural alternatives, and through his research discovered that micro-organisms could be divided into three distinct categories: harmful, beneficial, and opportunistic. EM naturally attach themselves to harmful micro-organisms, neutralizing odours and cleaning stagnant water. In most cases for cleaning water ecosystems, EM outcompete other harmful micro-organisms causing them to die out due to lack of a food source. This is why they have to be continually added.

Although Dr. Higa’s research is not new, the word EM only recently became well known around the globe. EM products are now used in households and businesses throughout Asia, South and North America, Europe and Africa, both for cleaning and as natural fertilizers. An annual international conference on EM moves around the globe, while in Asia, Thailand has become the EM information centre, with partial funding from its Japanese counterpart.

Here on Phuket, Environmental Solutions and Protection Ltd (ESP) is one company that supplies EM products and also conducts regular home and hotel visits to clean out decorative ponds and septic tanks using the solution. “EM can be used in many types of water treatment,” explained the company’s founder, Brad Kenny. “It literally eats waste. Everything from leftover foods to pond sludge and even bad smells.” In fact, a number of home and villa owners on Phuket already apply Extended EM in and around their properties and several resorts also use EM in various ways, particularly to treat their decorative ponds, waste water and prevent unpleasant smells. Phuket Villas and Homes, a leading villa rental agency, is currently in the process of applying EM throughout the company’s portfolio of managed properties.

Introducing EM to your home or business is quite straightforward. Just 10CC of EM solution is enough to produce a full litre of “Extended EM”, which you can apply in a variety of ways. The concentrate ESP uses is mixed with the source water and aerated, either by hand agitation or mechanical means. Before applying the Extended EM, let it stand for 10 to 15 minutes in a sealed container. The lid should be loosened occasionally to release pressure from the fermentation process, after that, it’s ready to be applied. One litre of EM concentrate costs around 100 baht and stretches a long way. Small amounts can be poured down the wash basin or into the toilet to reach septic tanks, even the spill-off from cleaning the house with water mixed with EM solution will flow into the ground and help remove harmful micro-organisms.

To buy EM products or schedule a cleaning visit on Phuket, call Brad Kenny on 08 1633 4279. You can also buy EM solution at the “Kachonjit Shop” in Kamala, near the Thai Military Bank, also in Rawai. Call 08 1891 4793 (Thai language) for more details.

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Lifestyle

More than 30 percent of world resources on construction!

Building a green house
According to international statistics, construction uses up more than 30% of the world’s resources, the building industry consumes 12% of fresh water in OECD countries and property development accounts for up to 40% of total energy consumption. As a result of this environmental impact, an international challenge has now been set for the property industry to consider how buildings can be made carbon neutral by 2020. There are already a number of projects in Thailand working to achieve this.
Below are some of the most effective approaches to eco-friendly building.

Passive designs
This refers to the use of simple design techniques that assist in controlling the ventilation and average temperatures within a building without the use of any mechanical systems. On Koh Samui, the Aqualina project by Exclusive Developments utilises passive cooling techniques and also features a series of planter beds on villa roofs that absorb heat, thus helping keep the building cool. In addition, external retaining walls contain compacted soil to insulate the building and keep its ambient temperature cooler than conventional structures.

Alternative energy
On-site energy generation from renewable sources such as the sun, the wind, the tide, the waves or even the crops that we grow, can take two forms: building-integrated renewable energy generation or stand-alone generation. Integrated ideas include solar powered hot water systems, which can be mounted on the north-facing roof. Meanwhile, with access to the right kind of wind, there is also the potential to build a medium scale wind turbine that feeds the buildings directly adjacent to it with electricity via its own power cable.

Water saving
Water is also a major consideration when building, both during the construction process and once the development is occupied. Ocean’s Edge Condominium project in Pattaya features purified drinking water, pumped from two on-site wells to every faucet in the development. In addition, the buildings include black and grey water storage, with treatment and recycling, as well as rainwater collection for use on the gardens. The construction itself also features ‘superblock’ a modern, aerated, lightweight brick and UPVC exterior doors and windows with three layers of glass to maintain internal temperatures.
Here on Phuket at Mai Khao Beach, the West Sands development is setting a similar example with green building techniques that include energy efficient hydrothermic air conditioning and hot water systems, water conservation practices, biodegradable refuse plants, solar energy, double-glazing, and superior insulation. Barry King is Director of Sales & Marketing for Central and City Developments, the company behind West Sands. He says that by choosing an outstanding natural location for the project, the idea was to offer an unrivaled lifestyle to residents and guests while at the same time striving to create the smallest environmental footprint possible.
Dollars and Sense of Green Building is an online report that outlines how the understanding of ‘green’ has evolved. The report reviews what has been learned from case studies, improvements in rating tools and industry practices. For more information visit www.gbca.org.au/dollars-sense08

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Lifestyle

It’s something you’ve been meaning to do for a while - start a compost heap, buy recycled paper, trade in that gas guzzler for a fuel-efficient vehicle - but you never get round to it. Now could be the time to turn your green ideas into reality before its too late. Below are 7 easy steps to you get started.

1. Cut down your driving miles

Every gallon of fuel in your car releases about 24 pounds of carbon dioxide. Reducing your driving by a few miles a day will help prevent tons of carbon dioxide entering the air. Push for traffic-calming techniques like speed bumps in your community. More pedestrian and bike-friendly areas mean less congestion, less energy consumption, less pollution.

2. Buy energy-efficient products

This is the first marina project in Krabi, on land of almost 60 rai in area, with superb facilities and one of the most luxurious resort settings. With beautiful residences, condominiums and a premium clubhouse with yacht marina moorings and berths, Krabi Marina is set to become the most desirable location in the area.

3. Switch to compact fluorescent lamps

Change the three lamps you use most in your house to compact fluorescents. Again, compact fluorescents are initially more expensive than incandescent lamps, but they last ten times as long and can save a lot of money on electricity bills. You should also turn off lights and other electrical appliances such as televisions and radios when you’re not using them.

4. Participate fully in recycling

On Phuket, you can drop your waste at the sorting plant located behind the Phuket Town Municipal Incinerator, on Rattanakosin Road in Phuket Town. Before being separated, waste products must first be weighed. The charge is 200 baht a ton. If the waste weighs less than a ton, you will be charged less. You can leave your waste at the plant, and the officers will sort it for you. This service is open to everyone, 24 hours a day.

5. Start Composting

This reduces the burden on landfill sites and also produces a great natural fertilizer for plants and gardens. Buy a composting bin at a garden supplier or make your own from an old bucket or bin. Start with lawn trimmings, fruit and vegetable scraps, and coffee grounds. You can add EM solution to prevent smells.

6. Take smarter showers

Washing our bodies can account for up to 16.8 percent of home water use. Installing a low-flow shower head saves two gallons for every minute of showering. A typical shower lasts about eight minutes and uses about 17 gallons, while an efficient shower lasts three or four minutes and uses 7.5 gallons.

7. Repair leaks

Fix leaking and dripping taps to save water and lower your water bill. A dripping tap can waste up to 20 gallons of water per day. A leaking toilet can waste up to 200 gallons every day. Not all leaks are visible but you can diagnose leaks in your toilet by placing some food coloring in the tank, waiting 30 minutes, and then checking if it appears in the bowl. If it does, you’ve got a leak.

This article is provided courtesy of Phuket Villas & Homes as part of the company’s corporate responsibility programme.

Posted under Health, Lifestyle