hello pezz, this month's to-date report:
(i) one of my many venezuelan cousins and his partner are in town, visiting hk for the first time in their 40-50 years on this planet. they had never been to anywhere in asia, until now;
they are attending a series of trade shows in hk for one month, checking out nutri-ceuticals, food stuffs, electronics, for going their way, and shark fins, and whatever else that may come this way from their land. their usual business is operating a marketing network in venezuela, columbia, and spanish-speaking usa.
they, frankly, are amazed at what they have seen, heard, and sensed so far. they have a take on hk's localized political liberty, generalized economic freedom, geewhizbangohwhoawee efficiency, simply good order, go-go-go dynamism, and can-do flexibility.
now they are working out of their original plans,busying organizing address-proofs (original utility bills) from their chavez-land, registering trading company domiciled in hk and some island they had heretofor never heard of, using said hk company to sponsor selves for hk residency and work visa, and setting up bomb-proof internet-enabled bank accounts, and, also checking out real estate, so that they too can be fully blessed, to partake in salvation from tin-pot dictator chevaz venezuelan-caracas this and redemption from smiley-face-all-teeth-and-two-forked-tongue obama empire usa-miami beach that.
(ii) have added massively to hk industrial real estate by way of my family and friends real estate club and own account at deep value discount from everything else around the planet and everywhere else hk, much of it structured as sale & leaseback, to assist leverage-challenged entreprenuers with balance sheet recovery. the recent adds, all-in four units, are bought at psft prices ranging from 1/20 to 1/5 of all other possible properties in hk, basically at construction cost, and some at construction cost of 1980, all without attributing to land value, and the sale & lease back rent yields range from 4 to 6.8% on cost.
interesting, we estimate the properties' private enterprise redevelopment buyout value to be between 5-6 fold of our cost, and in the unfortunate but less likely case, the government eminent-domain payout to be 2 to 3x our cost.
even more interesting, after signing the provisional sale & purchase on one of the four units, we had to cold-heartedly turn down a 2x buy offer for the newly contracted-for industrial unit, denying the supplicant a chance at redemption, even before we signed the final sale & purchase agreement on the buy side.
recently in other lands they generally have 'buyer's regret', whereas in hk we more often have seller's remorse :0)
(iii) have committed to phoenix iv real estate club, as my earlier phoenix i (hk and japan) has ripened, and phoenix ii (hk, japan, china) is ripening. phoenix iv will focus on hk land aggregation and kowloon building consolidation plays.
(iv) have also added, even more massively, to hk real estate on own account in neighborhood for an i-must-have-now right-on-the-edge-of-sandy-beach-fron abode at exorbitant cost, potential yield is a mere 2.8%, but the psychological pleasure may be well worth the price. besides, the thing is just a bigger pile of gold that i can see and touch, day in and day out, every time i take an ocean swim. i figure to change my routing to supermarket hence forth, looping around to check on the gold that yields.
now that i have front-ran them, i will sell the goodess to any reasonable mainland chinese seeking localized political freedom and generalized economic liberty, or any sensible american wishing for generalized economic freedom and localized political liberty.
given my dramatically different and new stance, when all contracts are executed in 45 days time in the case of above (ii), i will be at:
7% yieldless cash
33% yieldless metals (50/50 paper/physical, and of the physical, about even split au:pt)
44% yielding real estate
16% equities
... i now will hold for a bit and wait for the opportune time to leverage the metals upto 70%, ad real estate upto 50%, in time for super hyper monetary-turned-price inflation, or, duper intense debt-implosion-turned-price deflation, so that last man standing status is more assured.
bottom line, i am bullish, selectively, on things in general, and things within daily visiting distance, in particular.
and i am convinced that (i) monetary inflation will continue, at ever expanding scope and ever increasing pace, (ii) zero-state-monetary-reset will also be, at the most inconvenient but distant-enough time.
the journey to teotwawki dawn for all of us remains from by way of awful zimbabwe to sorry argentina, via sad japan.
iow, all is as well as expected, so far, and will watch n brief as the ancient, sorry and recurring script plays out, to full and fearless audience participation.
cheers, tj |
