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People of Bangkok will be happy to know that there has been progress on the revision of  Bangkok’s Outline City Planning, which will be announced at the end of 2021. In addition to the plan’s primary objective, increasing the efficiency of land’s usage in the city area according to our previous article https://bit.ly/365hl2M, today Invest:MaN will update our readers more information regarding the topic provided by the city’s authority. The next step of becoming an ASEAN metropolis. Major plan to move the current electrical cable system underground.         The wait is over. For the first time, Bangkok has a plan to bring the power cable down underground, in order to enhance the city’s beauty and landscape. Bangkok Metropolitan Planning and Development Office revealed that this public utility project is part of the latest urban outline planning. At the moment, lists of roads mentioned to get a facelift can be found below. Chaengwattana Rd., Klong Prapa – Khlong Bang Khen, Ratchayothin Intersection – Ngamwongwan Road, Lat Phrao Intersection – Ratchayothin Intersection, Lat Phrao Intersection – Ratchadapisek Road Rama VII Bridge – Tha Phra Intersection, Ratchadapisek Road – Srinakarin Road, Pracharat Road 1 to Techawanit Road, Pracharat Road 2 to Thanat Road, Samsen Road – Rama V Road Rama 6 Road, Samsen Road Project, starting from Ta-Harn Road until converging with Khor Chai Si Road, Samsen Road Project starting from Nakhon Chai Si Road until it converges with Luk Luang Road.  Area around the Chitralada Palace, starting from Ratchawithi Road, Sawankhalok Road, Sri Ayudhya Road, until it meets Rama V Road. Din Daeng Road – Vibhavadi Rangsit Road, Charansanitwong Road – Arun Amarin Road, Rama 8 Bridge to Prajadhipok Road, Lat Phrao Road – Ramkhamhaeng Road, Vibhavadi Rangsit Road To Khlong Samsen And Victory Monument To Dindaeng Triangle – Vibhavadi Rangsit Road, Phetchaburi Road – Srinakarin Road, Sri Ayutthaya Road – Din Daeng Triangle, Prannok Rd., Phetchaburi Road, Chidlom Road, Petchaburi – Ploenchit, Angri Dunant Rd. Ploenchit – Sarasin Soi Sukhumvit 63 – Ramkhamhaeng Rd., Wireless Road, Ploenchit – Rama 4, Prajadhipok Rd., Phra Pok Klao Bridge – Wongwian Yai, Sarasin Ratchadamri-Witthayu Rd., Rama IV Rd. Rama 4, Somdej Phra Chao Taksin Road Wongwian Yai – Ratchadaphisek and Charoen Rat Rd.         The purpose of this project is to improve the landscape in the urban area, which serves as the center of the city’s economy and tourist attractions of Bangkok. Enhancing the clean look of the city without the existing electric wires and poles along the streets and roads, to raise the level of being a livable metropolis, also more appealing for visitors.  For example, look no further than our fellow neighbors in ASEAN, Singapore, a country which is well ahead and developed in this area. Apart from improving the overall appearance, the plan also increases the safety of people. We have witnessed numerous accounts of accidents caused by having electric cable systems on the ground. Credit: Prachachat

  This is a great opportunity for investors who are looking to convert cash into return for investment rather than saving money in the bank for small gain. The COVID-19 pandemic has significantly impacted the tourism industry in Thailand since the breakout and are expected to remain until the foreseeable future. Look no further than hotel & resort and apartment & condominium projects as businesses which were most heavily affected in the tourism sector.              According to a survey by Invest:MaN, many parties in the hospitality industry have already looked to sell their businesses officially. Some are weighing their options between selling or waiting for any potential stimulus package from the government. As a result, thousands of businesses are available all over the country, presenting a golden opportunity for the investors looking to invest in the hospitality sector.             However, instead of an investment for the total takeover of one business, Invest:MaN would like to deviate investors’ attention to supportive & sustainable investments for these hotel businesses that desperately needed funds to survive this crisis. By investing for a small share of businesses, making sure that businesses are able to continue, not only investors will receive profitable returns but also a feel-good factor playing a part in helping others during the time of hardship. We would like to call this, “charitable yet profitable investment”.             Invest:MaN proposes an investment model similarly to accepting mortgages for sale, with rental period up until 3-5 years. However, investors must also consider the future business plans proposed by the business owner to ensure that the investment will guarantee profit from the increase in business’s value. Alternatively, the riskier option could be injecting a lump sum of money for the owner to manage, without any guarantee payout for the investment, considering it as a soft loan when compared to the risk free rate of 3-5 year government bond with interest rate of +2%. Tips for investment in hotel & hospitality business to consider when opportunity presents itself. General location is the first factor to be considered. It is very important when looking at investment on a big picture. Location of hotels include, a primary or secondary city, tourists attraction spot and how they are appealed to visitors; historical value or scenery nature for example.  Occupancy rate is an information that investors do their own research on the tourism website. One which implies how well the business is currently doing. Hence, the numbers can be studied and compared with one another when weighing investment options. Specific location is a factor that must be considered in terms of location according to the terrain, public facilities, vicinity, magnetism elements, special features such as the sea, mountains and etc which draw in visitors.  Type of hotel license should be checked. Licenses are usually categorized into four categories: Type 1 hotels mean hotels that provide rooms only; Type 2 hotels refer to hotels that provide rooms and restaurants; Type 3 and 4  hotels refers to hotels providing rooms, restaurants and facilities such as auditorium and meeting rooms to accommodate special events along with the catering service such as according to hotel regulations. Investors should be aware of the type of business according to their licenses. Changes and retention of license in order to maintain a continuous operation must not be overlooked by investors. Physical age of hotels tells investors how much capital is needed as part of  improvement, renovation and rebranding costs. Land Per Key is a variable used in determining the use of land per room. The ratio suggests how dense the use of the space is congested and if there is any space left to expand the hotel services. Hotels located in city areas normally have high density, while resort-style hotels in the provincial and tourist areas are likely to have more space. Price Per Key is the quoted price per room. The number is calculated by dividing the total selling price by the number of rooms available in a hotel. Initial rate of return (Yield) can be computed after price per key and the occupancy rate based on the market criteria are identified. Investors can estimate the initial rate of return based on three scenarios; best, fair, and worst. Investors will understand the appropriate yield to anticipate which will lead to a final investment decision. The appropriate nature of hotel investment may vary according to personal preferences of each investor which can be summarized as a guideline as follows. Stock investment involves total purchase and selling for profit gain after a short holding period. Occasionally, distress hotels become available for grab at bargain prices through auctions held by the Legal Execution Department. Nevertheless, investors must have an understanding on how to take advantage of the situation. These types of acquisition does not consider the factor of ongoing concern, therefore, certain expenses incurred from taking over the business which are excluded from final price as obtained from auction. Depository investment works similarly to a general lending scheme with collateral as an insurance for investors, to avoid pursuing litigation on mortgage if the debtor fails to pay installments. Investors obtain the right of ownership when in default of payment in certain. However, this investment method comes with a higher cost of borrowing than mortgage trading, therefore, a full ownership transfer fee has to be paid. Business owners, in this case, the debtors, will have a heavy financial burden due to a high borrowing cost, less the actual fund for businesses. Charitable yet profitable investment is the new investment approach Invest:MaN suggests. Investors will be rewarded financially as well as good peace of mind. Playing part in helping those struggling business owners carrying on their lifetime work restores investors’ consciousness which is usually financially driven.           -The investment which would serve best to business owners’ gain aree one which low borrowing costs, to maximize actual funding to genuinely stimulate businesses.           -Including additional terms related to business plans in which business owners and investors have

 We have seen the issue of flooding becoming a hot topic again. Hence, Invest:MaN would like to discuss more about the flooding, same old problem in Bangkok. It feels like Bangkokers has been dealing with this forever. One is fair to say that whenever there’s rain, there’s flood, the only question is how bad. Therefore, before buying real estate; houses, condominiums, and etc, buyers should first know which area in Bangkok is prone to flooding. It helps the decision to buy a home for living or an investment property, such as vacant land, provide peace of mind for residents or investors, who may experience a loss when property prices fall due to water problems.   Ever wondered why the flood problem in Bangkok persists?         According to a source from TQM, Dr. Sirilak Chomchuen, Chairman of the Sub-Committee of Water Resources Engineering Institute of Thailand (EIT) stated 3 factors that caused the Bangkok floods. The excess water mass from the northern region, caused by rainfalls which flows into Bangkok as a passage before draining into the sea. The rise of sea level which forces a fair amount of water to flow back into the drainage pipes combined with the city’s lack of water catchment / receiving areas which could help relieve flooding. Many areas in Bangkok are lowlands, therefore, only slightly above the sea level. Moreover, these areas usually look like a basin in nature whereby rainwater is easily trapped on the roads.         The above problems are only made worse by the persistent problem of public littering. Streetwalkers, households, shops and restaurants tend to dispose of garbage and food debris on the street or roadside. These waste are washed aways when rain comes down and ends up clogging up the drain pipes which are relatively small, not designed to handle the long-period of heavy rain Bangkok usually experiences today. Let’s take a look at which parts of Bangkok are prone to flooding         12 districts to avoid due to the past record of being flooded repeatedly, including:  Taling Chan   Thaweewattana  Bang Phlat   Bang Khae  Phasicharoen   Nong Khaem  Don Mueang   Bang Khen  Sai Mai   Laksi  Chatuchak   Khlong Sam Wa Bangkok Drainage Office also identify 14 roads that often encounter repeated floods, including: Chaengwattana Road, from Khlong Prapa to Khlong Prem Prachakorn Ratchadaphisek Road, in front of Bangkok Bank Phaholyothin Road, in front of Amon Phan Market and Kaset Intersection Pracharat 2 Road, Tao Poon Intersection Area Rajavithi Road, in front of Suan Dusit Rajabhat University and the foot of Krungthon Bridge Phaya Thai Road, in front of the Department of Livestock Development Sri Ayutthaya Road, in front of Phayathai Police Station Chan Road, from Soi Bamphen Kuson to Yan Nawa Post Office. Suan Phlu Road, from South Sathorn Road to Nang Linchi Road Sathu Pradit Road, at Chan Road Intersection Suwinthawong Road, from Khlong Sam Wa to Khlong Saen Saeb Phetkasem Road, from Thawi Watthana Canal to Ratchamontri Canal Soi Village Setthakit, from Petchkasem Road to Kanchanaphisek Roundabout Bang Khun Thian-Chai Tha-le Road, from Rama 2 Road to Sakae Ngam Canal     12 districts that are relatively safe from flooding, suitable for living and investing, including: Thung Khru   Raj Burana  Khlong San   Pom Prap Sattru Phai  Ratchathewi   Wang Thonglang   Phayathai   Watthana  Sathorn   Suan Luang  Pathumwan   Bangna Thank you for the map data from GISTDA and the Bangkok Drainage Bureau for the illustration of map datas. Credit  : TQM

Contractors leaving or abandoning jobs seem to be cliche stories today. Customers are left hanging as contractors run off immediately after the constructions complete or not even so. Nevertheless, one cannot simply avoid hiring contractors for construction services as it is a specialized job in which expertise is required. We ourselves do not have any knowledge of construction. The contract agreement proposed by contractors usually includes the term of annuity payment schedule. In other words, up front payment before work is done, one of the main causes leading to them abandoning jobs. Today Invest:MaN recommends some quick considerations in building your own home or property. Step 1: Before construction begins Review the plan thoroughly. Pay close attention to the BOQ which will include a list of materials stating the amount of material, unit price. Separate the cost of goods from the labor cost if its match with the construction contract price as specified in the contract. Any changes regarding the details of the job should be agreed in writing and updating in the contract as a safeguard. This will come in handy when clients wish to adhere to the additional costs reduced by the BOQ. In the case of using bank loans, payment installments should be made according to loan payment schedule. Do not allow the contractor to take over the management of financing of the job. Step 2: During construction Clients without any knowledge of construction should procure someone with appropriate knowledge as consultant or even acting on one’s behalf to oversee the entire length of the construction operations. Part of the required construction materials clients wish to procure themselves should be agreed in the BOQ attached to the contract. However, keep in mind that part of the contractor’s expense also incurred from coordination with their vendors or sub-contractors, hence, it is only fair to have sympathy for them and be reasonable when attempting to cut cost through self effort on finding supplies. There is no perfect way of defining the disbursement of the job. Usually, it can be determined by measuring the amount of work in %, which requires specialized skill as a person with direct construction experience. Therefore, having a specified consultant to help take care of is advised. Step 3: After construction finishes. In an event where contractors abandon the jobs or refuse to put in extra effort as according to the client’s wish as the construction is completed, steps must be prepared to bring the matter to court’s attention. According to the Invest:MaN’s experience in such circumstances, the clients will be asked to prepare appraisal reports to be used as a written reference from certified public appraisers. The report must state the price estimation of the job which will then be used in the litigation decisions. Appraisal price according to the time of construction halt and the % completion of the job. Therefore, in an event like this, the smart move would be to appraise the job value to-date before hiring another contractor to finish the remaining job right away. The appraisal will become much more difficult when separating the works done of 2 contractors. The process of investigating witnesses is complex and will consume more time. Invest:MaN hopes this will be helpful for people who are looking to hire contractors for their constructions.