$100 Million California Tax Credit Will Go Fast...

The $100 million allocated for California's first-time homebuyer tax credits may be depleted in about 10 to 20 days or sooner, according to C.A.R.'s Economics team. California's Franchise Tax Board (FTB) plans to begin accepting applications on May 1, 2010 for tax credits up to $10,000 for first-time homebuyers and for homes that have never been previously occupied. However, the total tax credit allocation for all taxpayers is $100 million for first-time homebuyers and $100 million for new homes, both on a first-come, first-served basis.

C.A.R.'s forecast of 10 to 20 days to deplete the $100 million allocation for first-time home buyers is based on estimated May sales figures and other parameters. It does not take into account the possibility that buyers scheduled to close escrow in April may delay closing until May to take advantage of the tax credit. If a shift in closings from April to May occurs, the first-time homebuyer tax credits may be depleted even more quickly than indicated above.

Applications for the California tax credit must be faxed to the FTB after escrow closes. The FTB will update its website when the 2010 application form and other information become available.

Realtors are reminded not to give their clients any tax or legal advice, such as the availability of funds under the California tax credit program. Agents should encourage their clients to seek specific advice from an accountant, attorney, or other professional as they deem appropriate.

For more information, please refer to

C.A.R.'s Homebuyer Tax Credit Chart 2010

2010 Tax Credit for New Home / First-Time Buyer

FTB Offers Guidance on Home Buyer Tax Credits

Why Buy Shimao?

1. Size. It’s the largest privately owned developer in China. The number 1 and 2 companies are owned by the government. It has been around for 25 years and at the end of 2003, it opened to the US market to establish its international branding.

2. Strength. Shimao is listed on the Hong Kong stock exchange stock #00813, with HK$600 billion in assets, which is its parent company. All financial statements and operations are very transparent. The profit margin is less than 20%, but it’s still higher than all its competitors. It’s also listed on the Shanghai stock exchange as stock #00823; with RMB 200 billion in assets.

3. Hospitality. Shimao is the second largest developer in the hotel business, number 1 is owner of Hotel Shangrila. Shimao has over 30 five-stars hotels being built right now.

4. Luxury. Shimao is famous for building high-end estates. Its founder is from Fukin, and lives at the top of the Peak area in Hong Kong. The estate is one of the most expansive in the city. Bought for HK$ 21 billion, it’s now worth about HK$ 41 billion. Shimao is also developing a very limited number of extreme high-end estates in the Peak area.

5. Integrated Planning. Shimao’s top business focus is always on the residential real estate market. In order to enhance and protect its real estate value, Shimao is building department stores and theaters as part of its developments.

6. Influence. Shimao’s most recent project is the largest real estate project in DaLian— the Carnival project. It will be the largest development invested in by the Shimao group, with total investment estimated to reach RMB 50 billion. The plan includes an outdoor theme park, and an ultra large indoor theme park covering about 17 million square meters.

7. Availability. Shimao has five projects in five different cities projects with units for sale to U.S. buyers.

Shanghai’s One Shimao Riviera Garden— Ranked as China’s highest-altitude residence by the Guinness Book of World Records. Seven super-high buildings were built along the river, surrounded by forests in the back and rivers in the front.

A top-floor unit was selling at around US$ 600,000 few years ago, but now the price point has reached US$ 3.5 million, costing about RMB 10,000 per square meter. Prices are expected to go higher next year as Sun Hung Ki—another Hong Kong developer—is going to finish and begin selling their adjacent development at RMB 20,000 per square meter. By comparison, Shimao Riviera Garden has a much better view and location.

Hangzhou Shimao Riviera Garden— Located in the last residential development that can view the lake. The first phase was sold out at RMB 7,000 per square meter a couple of years ago, while the phase two is selling at an average of RMB 20,000 per square meter, setting the cost of a 250 square meter unit at around US$ 800,000.

Kunshan Shimao Butterfly Bay— This development consists of over 6,000 townhouses, villas and apartments. Kunshan is an industrial city that is situated about a 30 minute drive from Hongqiao Airport in Shanghai. An express train is being built that will take passengers from Shanghai to Kunshan in just 15 minutes. Kunshan’s strategic location and convenient transportation between major cities makes it a prime candidate for strong future growth. Due to its close proximity to Shanghai, Kunshan is often referred to as "The Tenth Town of Shanghai". Kunshan is also sometimes referred to as "Small Taiwan" as over 600,000 Taiwanese citizens reside or work in that city every day. Many of these Taiwan residents are successful business people who own factories and wholesale businesses in Kunshan. This industrial powerhouse city also boasts factories for 100 of the Top 500 businesses in the world.

The community was selling its last phase at RMB 5,000 per square meter, but it’s now rising to RMB 11,000 per square meter. The smallest unit is about 92 meters square (about 990 sq. f.t), costing about US$144,000.

Yantai’s Shimao No.1 the Harbour— Located at the seafront square in the downtown area of Yantai City, Yantai Shimao No.1 The Harbour enjoys an excellent location, standing against the hills and facing the sea. With a land area of 34,700 square meters and an aggregate floor area of 280,000 square meters, the project comprises three 54- to 59-floor towers for businesss and apartments, and a 57-floor, 323-meter tower for integrated use. The project is planned to be the highest landmark seashore architectural development in Yantai and the Jiaozhou Peninsula, consisting of super five star hotels, full sea-view high-end apartments, plus buildings for retail businesses and offices.

Currently the company is selling the high rise condos with the best views, sized from 76 to 280 meters square, at US$ 140,000 to US$ 550,000.

There is also a limited amount of commercial space ranging from 16 to 98 square meters, priced from US$ 68,000 to US$ 358,000. Commercial spaces are all located inside of Shimao Shopping Mall, to be rented out by the landlord with an average return of 8% per year for the next 10 years.

Xiamen’s Shimao Lakeside Garden— Xiamen is a clean and beautiful island, just a ferry ride away from Taiwan. Visiting Xiamen for the first time a few weeks ago, it reminded me of a very quiet island in Hawaii. And with amazingly tasty seafood!

The new Shimao construction will finish at the end of 2012, with the average price from RMB 20,000 to RMB 40,000 per square meter. The site is on the east side of a very large preserved lake, with enough clear, drinkable water to supply the whole island for one month. As it’s a preserved lake, it’s closed to in-water recreational use, and its shores are lushly landscaped. A jogging trail is to be built surrounding the lake, and markets, restaurants and bars will be setting up between the Shimao lakeside garden and the trail. There will 6 villa buildings and 13 high rises, all with different heights and elevations to maximize the view from each unit.

Shimao has always chosen units with the best view and best location to be sold in the U.S.. This time there will only be 15 units available for sale on May 15-16 in LA, sized from 147 to 245 square meters, costing from US$ 440,000 to US$ 800,000. . . . . . .

If these descriptions have piqued your interest and you’d like more information, check out www.shimaousa.com ... Or contact me at 1-310-259-1525.

I will be at the Shimao Sales Convention on May 15-16, from 10am-5pm, at the Hilton Pasadena Hotel, Pasadena, CA.

See you there!

—Clara

Hong Kong and China Real Estate

It’s always great to go back to one of my homeland, Hong Kong. The city is always buzzing, people are quite happy these days with their highly appreciated value of real estate. People always compare the high real estate price of Hong Kong and Manhattan and I think Hong Kong has been surpassing many metropolitan cities regarding annual real estate appreciation.

As we know Hong Kong is an island with almost 7 million people and always crowded with tourist/visitors especially from Mainland china. Average prices of real estate has risen at least 30% since a year ago and average price ranges from US $1000 to$1800 per square feet. These are the prices for high rise condominiums which aren’t even brand new. For the really high end estate, prices range from $3000 to $5000 per square feet. Hong Kong luxury home prices jumped 45% last year.

You might be wondering: who are the super rich buying up and supporting such a crazy market? In recent years, many multi millionaires are created in Mainland China and they can travel to Hong Kong freely to purchase properties and gain citizenship in Hong Kong. The Mainlanders has been the reason in supporting booming real estates in Hong Kong and all major metropolitan cities within Mainland itself. They either bought up all these units as their second home or just plainly kept it for future appreciation. Many buyers form groups to visit Hong Kong to purchase new construction and they each purchase 3-5 units at a time in one day.

Booming Market in China and Shimao

Mainland China‘s real estate has been rising at 11.7% for its major 70 cities since last year. China’s government unleashed a $1.4 trillion lending boom last year to stimulate the economy and is now trying to slow the surge in property prices. Hainan is top on the list with price rising over 50% in one year. The growth rate is sliding, but prices may continue to rise until the demand supply imbalance improves.

Developers had deferred construction of new projects till the fourth quarter of last year due to the global financial crisis. But with the quick financial recovery and the realty market sizzling, it led to a demand-supply imbalance and resulted in sharp price hikes. In order to curb excessive property price growth in some cities, government has launched new rules that investors have to put down extra 10-20% as down payment when they are purchasing their second or third properties. It did cause 10% cancellation in existing contracts, prices are not rising sharply and not falling either. It is expected to correct 10-15% in short term, making this a great buying opportunity.

I have the honor to be invited by Shimao (top #3 as Chinese Real Estate Luxury home developer) to be one of their agents to represent some of the best investments in China.



Since 2003, they had the vision to establish their international branding and they started team up with agents all over the world to sell the highest demanded unit in their selected projects. They are famous for building high end properties along the ocean, lake or water reservoir. They reserved the best viewed units to our U.S. market regardless local Mainlander line up to purchase these new constructions in China. The U.S. buyers really love the fact that there is no property tax in China and also the Homeowner’s monthly maintenance dues is very inexpensive even for brand new full service buildings.

Why invest in China?

1. 13 billions of population, with GPA rising in 8% per year. - If China creates one million per 0.001%, how much more buying power per year? Amazingly high. No more land to be purchased to build new development. There are lots of land in china, but most has to be kept as farmland to produce rice for local Chinese. In auction for land, government is listing land in the price based on rising home price 10-15% per year, money has to all paid off within one year and building has to start within 2 years.

2. Rising RMB - most probably will happen this June

3. Government is trying to control rising real estate prices. - Everytime they did, for the last three times, prices gone up more than before within a year.