WINTER2016
Jacki Ueng takes us to Bali / Relive the biggest National Convention yet / Don Choi talks real estate and retirement
Proud supporter of the Asian Real Estate Association of America We can connect you to tools and resources to help grow your business. When we work together, you’ll get market insights, inspiration and support you can use to help build your business. Meet with a mortgage specialist and find out how Bank of America can help make home buying clearer and more straightforward for your clients every step of the way.
Get inspired to grow your business, using market insights including TILA-RESPA Integrated Disclosures information and more on our online Agent Resource Center.
Help clients build financial know-how with our free financial education webinars at bankofamerica.com/webinars, or through engaging, self-paced videos at BetterMoneyHabits.com.
Work with an experienced mortgage specialist who understands your local market and will help your clients every step of the way.
Find out about local down payment and cost savings programs we participate in that can be combined with most home loans to make home buying more affordable for your clients at bankofamerica.com/downpaymentcenter.1
Contact a Bank of America mortgage loan specialist and learn more; visit bankofamerica.com/neighborhoodlending today. 1
Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, or repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Some programs require repayment with interest, and borrowers should become fully informed prior to closing. Not all applicants will qualify. Minimum credit scores may apply. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owner-occupied properties only. Maximum loan amounts may apply. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A., Member FDIC. Equal Housing Lender. Š2015 Bank of America Corporation. ARNRQQPB 12-2015 AD-12-15-0189 THIS INFORMATION IS NOT INTENDED OR AUTHORIZED FOR CONSUMER DISTRIBUTION.
In an increasingly diverse marketplace,
what you don’t know could hurt your bottom line. From cultural faux pas to financing, tax, and visa laws – working with today’s diverse pool of homebuyers requires awareness and education.
NAR’s Global Education can help. At Home With Diversity (one day course) Assess and understand attributes of diversity in your local market to earn the confidence of all buyers and sellers. It is the required course for the At Home With Diversity certification, and counts as an elective toward the CIPS designation. The online AHWD course counts as continuing education credit in most U.S. states.
Certified International Property Specialist Designation (CIPS) The CIPS designation includes five full days of study focusing on international real estate transactions. By earning the designation, you become part of an elite referral network of over 3,000 professionals worldwide.
Visit realtor.org/ahwd to learn more about the At Home With Diversity certification course.
Visit realtor.org/cipscourses to learn more about the CIPS designation.
WINTER 2016 Vo l u m e 7, I s s u e 4 ON THE COVER: Vicky Silvano (Photo: Amy Tolbert) and the Chicago skyline (Photo: Shutterstock/Rudy Balasko)
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F E AT U R E S 28
The Chicago Way: Vicky Silvano Takes Control a | r | e sits down with 2016 National Chairwoman Vicky Silvano to learn more about her background, experiences as a Filipina immigrant, and her vision for AREAA in this important election year. Scott Berman
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Traveling with the Bohemian Vagabond
16
Where in the World is Jacki Ueng now? In this issue Jacki takes us to Bali, Indonesia, to explore the beautiful island paradise.
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National Convention in Pictures Relive AREAA’s biggest and best Con vention to date in this pictorial recap of the 2015 National Convention in San Francisco, CA.
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CONTENTS 12
Tech Talk with Rob Mehta
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It’s 2016, by now most people thought we would have flying cars and robots doing all of our mundane tasks for us. Well, that second part is actually kind of true. Learn how task automation can give you the free time you’ve been desperately seeking.
14
10 Questions with Peter Park One of AREAA’s premiere international agents, and Chair of the Korean Trade Mission, Peter Park sits down with a | r | e to talk life, business, and sword fighting.
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Country Report: Indonesia
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Indonesia has always been consid ered one of the world’s premiere vacation and second home des tinations; but with an exploding population and bullish economy, the primary residential market is also red hot. Cynthia Fauth
34
Looking forward to the 2016 Global + Luxury Summit in Honolulu, Ha waii, we take a look at 8 Things You Should Know about the Aloha State. Scott Berman
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Outside the Box with Don Choi In another new featured article, resi dent policy and financial regulations guru Don Choi discusses ideas and issues dealing with real estate that you may have never even consid ered.
International Real Estate 101 AREAA Seattle’s Mark Kitabayashi knows a thing or two about generating international leads and closing cross-border transactions. In a new 4-part series, he gives you information you can walk out the door and use right away to take your business globally.
8 Things You Should Know
40
In My Neighborhood AREAA Atlanta’s Tim Hur takes us on a tour of Atlanta’s most prestigious neighborhood, Buckhead, and tells us what makes it so desirable.
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D E PA RT M E N T S 8
Non-Profit Spotlight Asian Americans Advancing Justice (AAJC) is one of the nation’s premiere AAPI advocacy groups. Youjing You of AAJC discusses some of the initiatives the nonprofit is currently undertaking.
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ADVERTISERS
Letter from the Director AREAA Executive Director Hope Atuel lays out the Organization’s vision for 2016, including the much anticipated “No Other” campaign.
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45
Taste of Asia Ever wanted to eat like a sumo wrestler? Learn to prepare chanko nabe, a hearty stew commonly eaten by the fearsome fighters to gain weight
AREAA Global
www.areaaglobal.com
Back Cover
AREAA Global + Luxury Summit
www.areaa.org/summit
Page 43
AREAA National Policy Day
www.areaa.org
Page 10
Bank of America
www.bankofamerica.com/neighborhoodlending
Bank of America
www.bankofamerica.com/downpaymentcenter
Page 11
Berkshire Hathaway HomeServices
www.BerkshireHathawayHS.com
Page 7
Gina Duncan, Fine Island Properties
www.YourMauiRealEstate.com
Page 9
National Association of REALTORS® Global
www.realtor.org/cipscourses
Page 1
RISMedia
www.rismediacontentsolutions.com
Page 9
Wells Fargo Home Mortgage
www.wellsfargo.com/mortgage/agents
Page 3
Inside Front Cover
CONTACT PRAVEEN SHARMA TO FIND OUT ABOUT ADVERTISING OPPORTUNITIES: a-r-e@prveen.com | 951-514-1053 WINTER 2016
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WINTER 2016 Vo l u m e 7, I s s u e 4
EDITOR Scott Berman C R E AT I V E D I R E C TO R Praveen Sharma
is a publication of the Asian Real Estate Association of America (AREAA), a national nonprofit trade organization dedicated to increasing sustainable homeownership in the Asian American community. For more information visit: http://areaa.org. Š2016 by the Asian Real Estate Association of America. Reproduction in whole or part without permission is prohibited. Opinions expressed by individual authors are not necessarily the opinions held by AREAA. Interested in advertising or contributing? Contact us: Praveen Sharma ADVERTISING | a-r-e@prveen.com Scott Berman EDITORIAL | sberman@areaa.org Office: Asian Real Estate Association of America 3990 Old Town Avenue C304 San Diego, CA 92110 619-795-7873 Phone Previous issues available online at: http://areaa.org/a-r-e
For additional web-based content, please visit: www.areaa.org.
WINTER 2016
From the
Director 2016 marks the Year of the Monkey and, according to Chinese fortune, a particularly auspicious time for new inventions and business opportunities. For AREAA, this year has certainly started with opportunities indicative of another successful and fulfilling year for the organization.
In some ways, the upcoming year is a new beginning for us as an organization. With substantial input from our key leaders – the Executive Board has adopted a strategic plan that focuses on membership engagement through programs from the national to the local level. This includes a communications strategy that touches members around the world through multiple touchpoints – from the website, to emails and social media, to in-person meetings. The by-product of this plan will allow for AREAA to have multiple media channels for all members especially to those who might not be able to attend our annual events in person, as well as for the membership in general. Later this year, we plan to unveil a refreshed look of our website, and a revamped AREAA Update as well. Through key Board leadership decisions, we are working to strengthen the organization and to position AREAA to expand internationally. This year we are planning three trade missions to Taiwan, Vietnam, and Korea with over 100 members in attendance to these events. Through our
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bilateral agreement with the China Real Estate Association, once again, we are heading to China in June to co-host an international real estate event with an expected attendance of over 1,000 real estate professionals. With the launch of the “No Other” campaign we are aligning our organization with other agencies and organizations to bring support to an administrative change from the US Census Bureau’s Quarterly Housing Report and add Asian Americans to its categories of ethnic groups. By the time this magazine is printed, we will have had our initial call with top leaders from the bureau to affect this change. The campaign will also be a theme for this year’s Hill visit in May with our chapter leaders from across the United States. As you read this issue of a | r | e , we hope that it will energize you for the future as you envision the mission of AREAA in 2016. For those of you who have tirelessly committed time and energy to the success of this organization, I thank you. For the many of you who are new, I welcome you to AREAA and I invite you to be more involved in your local chapter. I look forward to working with all of you again in 2016! Happy Year of the Monkey!
HOPE ATUEL AREAA Executive Director
AREA A BUSINESS NETWORK
HAWAII
S T A Y C U R R E N T on AREAA EVENTS and I N I T I A T I V E S
@areaa
www.areaa.org
/areaa.national
CONTACT US to find out about ADVERTISING OPPORTUNITIES PRAVEEN SHARMA
a-r-e@prveen.com | 951-514-1053
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AREAA
NATIONAL POLICY DAY
SIGN UP TODAY: WWW.AREAA.ORG/POLICY DAY
MAY 3 - 5, 2016 | WASHINGTON DC
Learn about the Down Payment Resource Center A new tool to help you and your clients find programs that may help lower the cost to buy a home. ADVERTISEMENT
By Dottie Sheppick Senior Vice President, Bank of America Home Loans
Almost half of first-time homebuyers cite affordability as one of the key reasons they have delayed the decision to purchase a home. As you may know from your own experience as an AREAA real estate professional, this one factor can be a key barrier that prevents people from becoming homeowners.1
It’s also a good tool for AREAA real estate professionals.
Now you can help overcome that barrier by sharing the Bank of America Down Payment Resource Center with your clients. It’s a web-accessible tool to help homebuyers find down payment and cost savings programs that are offered by state and local housing agencies, nonprofit organizations and employers.2
According to findings from the second annual America at Home Survey commissioned by NeighborWorks America, 70% of U.S. adults are unaware of down payment assistance programs that are available for middle-income homebuyers in their communities.3
Programs on the Down Payment Resource Center may help your clients buy their own homes. The Down Payment Resource Center’s searchable database includes information about more than 1,000 programs that could help your clients get the assistance they need. When your clients visit the Bank of America Down Payment Resource Center, they can: • Use the online form to search for down payment and cost savings programs they may qualify for that are offered by local housing finance agencies, nonprofit organizations and employers • Review a brief description of the program they may qualify for based on the search in the online tool
The Bank of America Down Payment Resource Center gives you the opportunity to share information that was previously hard to find, in an accessible and easy-to-use way.
The Down Payment Resource Center gives you the ability to quickly find out what programs may be available in your area. Your local mortgage specialist has access to a database of each of these programs, with details and contact information. So, if you want to get the most out of this new online tool, make an appointment with a Bank of America mortgage specialist to get a step-by-step demonstration of how it can help you and your clients. Our specialists are also available to meet with your clients, talk about their home buying goals and walk them through this new online tool. Contact a Bank of America mortgage loan specialist and learn more; visit bankofamerica.com/downpaymentcenter.
• Connect with a mortgage specialist to get more information and learn about their next steps Your clients will also find links to Bank of America webinars and other resources to help them become more prepared for home buying and homeownership.
Bank of America is a proud supporter of AREAA and we look forward to connecting you to resources that can help you grow your business. Bank of America First Time Homebuyer Research 2014. Down payment and/or closing cost assistance programs may not be available in your area. Down payment and/or closing cost assistance amount may be due upon sale, refinance, transfer, or repayment of the loan, or if the senior mortgage is assumed during the term of the loan. Some programs require repayment with interest, and borrowers should become fully informed prior to closing. Not all applicants will qualify. Minimum credit scores may apply. Sales price restrictions and income requirements may apply. Homebuyer education may be required. Owneroccupied properties only. Maximum loan amounts may apply. 3 Second annual America at Home Survey commissioned by NeighborWorks America, October 2014. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice. Bank of America, N.A., Member FDIC. Equal Housing Lender. ©2015 Bank of America Corporation. | ARNRQQPB | 12-2015 | AD-12-15-0211 1 2
ROB MEHTA
TALK What does 2016 look like for you? Have you created and reviewed your business plan for next year? With prospecting, sphere marketing, lead conversion and brand-building, we as practitioners wear more hats than ever before - and time is always in short supply! How do we as real estate professionals respond and keep up with the constantly shifting business landscape? Let’s start by implementing some tech tools.
Let's start by mentioning Hootsuite - a platform to combine all of your social media account streams into one handy dashboard to your social media world. Every social media platform relevant to your business is right here in one place. Want to know what's being said about your brand, who’s responding to your posts, tweets, videos, photos and blogs? Want to auto-schedule all your tweets, posts and video on certain days of the week? You can do that all in one place with Hootsuite. Want to build a brand campaign, and want to know how effective it is? Customizable analytics (or preset templates) sent to your email automatically with graphs depicting key metrics like number of clicks per day and geographical information, allow you to measure your social media impact and develop responsive campaigns for your target market - working smart right? By the way, the free version allows you to utilize some of Hootsuite’s basic features, but the Pro version at $10/mo is a steal.
Post updates to multiple Twitter, Facebook, LinkedIn, and Foursquare accounts with Hootsuite
Basic Features
FREE
$10
per month Pro Version
Hootsuite.com 12
WINTER 2016
TECH TALK
with
One of my favorite free web tools is a site called IFTTT. “If This, Then That”, is a “trigger” for literally hundreds of web-based tools to help automate certain actions. When you use an IFTTT “recipe” you automate the sometimes tedious and repetitious tasks we all deal with. All the major social media services work with IFTTT including Facebook, Twitter, Instagram, LinkedIn, YouTube, Pinterest, as well as many other cloud-based tools. So, what Asana allows you to communicate with teammates and manage projects with ease exactly can you do with IFTTT? Want How to automatically save all your Gmail attachments And for those of you who work with a team to a folder in Google Drive? IFTTT can do that. there’s Asana. Asana is a web-based task manWant to take every listing photo you’ve taken on ager at its core, and a super-robust project manyour phone and deliver them to your Dropbox so agement platform if you choose to use its many that you can easily share them with your team advanced features. Asana has an outstanding members without having to email them? IFTTT feature set as a collaborative task management can do that too. The list goes on. There’s a world tool, and its integration with many other tools of IFTTT recipes just waiting to simplify your such as Evernote, Google Calendar and Drive, life and business, and there are new recipes being and Dropbox, makes it indispensable. Asana now released every day. How cool is that? And, a basic also has a Chrome extension you can pop directly IFTTT account is free! on your Chrome browser - allowing you to now take those webpages you need to read or emails you need to respond to and add them directly to your Asana task list for yourself or to assign to teammates later. The mobile app has become my go-to every day, as I typically remember to add tasks while on the go. And like all hyper-helpful IF I post a photo to Instagram tools, it’s cross platform and free for up to 15 peoTHEN save the photo in Dropbox ple on your team.
ROB MEHTA
ROB MEHTA is Director of Strategic Planning and Business Development for Coldwell Banker Burnet in Minneapolis-St. Paul, is PastPresident of the Minnesota Association of REALTORS®, Past-Treasurer of AREAA, and is the owner of Rob Mehta+Partners, a real estate training and consulting company. robmehtapartners .com
IFTTT Recipe Example
“I choose a lazy person to do a hard job. Because a lazy person will find an
Tweet me your favorite IFTTT recipes: Basic Account
FREE
IFTTT.com
@robmehta
Up to 15 People
FREE
easy way to do it.”
asana.com
– BILL GATES
So for one of your 2016 resolutions, I encourage you to start utilizing some of these tools and gain back some of your precious time while making your life just a little bit easier. Happy Holidays and Best Wishes for a Successful 2016! WINTER 2016
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Questions
with
R E T E P 1. As someone who deals with international buyers and investors a good bit, what is one piece of advice you would give to someone who wants to break into the market? Patience and persistence. It takes a long time to nurture an international relationship. I have a friend who gets most of his business from international clients. It took him several overseas trips every year for about seven years before he could depend on his international business.
2. What’s some great advice you’ve received personally or professionally? To live passionately. It sounds cliché but yes, to live with passion, the drive, to immerse one’s self into what you love doing - having no regrets.
3. As Chair of the Korean Trade Mission (KTM) committee, tell us some of the benefits of going on a trip such as this? Because of the distance and time difference, making that connection with the right people/organization is very hard. Building an international business 14
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K R PA
would be similar to launching your own business and most of us have limited resources. One person alone just can’t do everything that needs to be done for the best result. On top of that, every country is different on how they conduct their business. The Korea Trade Mission committee is working very hard to build a platform where most of the hard work is already done for you. If you’re serious about inbound/outbound business with Korea, I would strongly recommend joining us for the KTM.
4. What is one trend in real estate you think everyone needs to be paying attention to? Evolving technology. There is a saying that every ten years “mountains and rivers” change, but these days it’s more like every 6 months. How technology is shifting wealth and creating new industries is affecting investment trends.
5. Have any hobbies or interests that people may or may not know about? A lot of people know me as the “Karaoke Man” because I had the pleasure of introducing them to “Norebang”/Karaoke rooms in Korea-town.
PETER PARK
Los Angeles, California
My main passion however, is Kumdo, “way of the sword”, a sword fighting martial art that I have been practicing close to 30 years. It’s not an easy thing to do but something I strongly recommend to anybody regardless of age and sex.
Peter's main passion: KUMDO
10 QUESTIONS
with
PETER PARK
Park and the AREAA Trade Mission delegates in Korea, where members met with 500 Korean real estate leaders and 30+ real estate associations. Photo courtesy of Peter Park
6. What’s a memorable moment from your time with AREAA? Upon insistence from Jim Park, I sang “City by the Bay” at the Gala Dinner at the 2011 Conference in San Francisco. I’ve never heard of this song before and never sang solo in front of several hundred people either, it was a nerve wrecking but fun at the same time!
7. During your presidency with AREAA Greater Los Angeles, the chapter became the biggest and most successful chapter yet. How did you get involved with AREAA and what’s the secret ingredient in AREAA GLA’s success? Aaron Yu had introduced me to AREAA around late 2008. I had no idea on what I was getting into except it was a non-profit real estate organization. Soon enough I saw the potential and vision of what AREAA could be. I became a man with a purpose and passion for the organization. That is the main ingredient, “Passion”. With that I was able to recruit other leaders who also became passionate about what AREAA stands for and could become. I’m very fortunate to say that the AREAA GLA board is stronger now than when I left the presidency.
8. As a long time resident of Los Angeles, California, how’s the market there? The rich have become a lot richer. A single acre of vacant lot in Beverly Hills can go for $10 million or more. For most of Los Angeles the price is same or higher than before the crash. There is a lack of inventory for both residential and commercial. A lot of new developments, specifically in downtown Los Angeles, will be completed between now and 2020. With the U.S. being a top safe haven for international investment, and Los Angeles being a main gateway for Asia, the city has been attracting a lot of Asian investment activities.
AREAA Commercial meeting in Los Angeles, 2013. Photo courtesy of Peter Park
9. What is a common obstacle you encountered with an international client, and how do you overcome it? “Out of sight, out of mind.” With all the communication tools available in these days, this simple rule still affects us. There’s nothing better than a face to face meeting, but if that’s not possible I make sure to keep in touch with them by informing of the latest news on a continuous basis. You can always partner up with another Real Estate professional of that country to follow up for you. I wanted to be a bit more aggressive so I have my own “Marketing Director” in Korea following up with all the clients and looking for new business.
10. FAVORITES: Team/Celebrity/Band I’m a Lakers fan by birthright. For me the glory days were with Abdul Jabbar and Magic Johnson, the “Showtime”. U2 is my band and “Air on G string” by Bach is my choice. I still can’t believe we, the Angelinos, still don’t have a NFL team… Editor’s Note: As a San Diegan, I take that last sentence with a grain of salt!
Park took the stage for a memorable karaoke performance during the 2011 AREAA National Convention in San Francisco
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Traveling with the Bohemian Vagabond
ISLAND of the GODS
SUN, SURF, RICE-PADDIES, MOUNTAINS, VOLCANIC HILLSIDES, YOGA & SPIRITUALITY By JACKI UENG
IT IS NO HIDDEN SECRET THAT BALI, INDONESIA IS A FAVORITE DESTINATION AMONG TRAVELERS. Some have been and have nothing but sweet memories,
while many others have it on their immediate Must-Travel List. It certainly doesn’t hurt that some studies have shown Indonesians to be among the happiest people in the world. Everything you hear about Bali is true and then some. Despite its heavy exposure to tourism, the essence of Bali has not been interrupted. While there are some streets filled with international brand name stores, populated with Western/Asian tourists and Australian Backpackers, the spirit of the Balinese still remains as authentic as ever. 16
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Shutterstock / Chris Howey
Traveling with the Bohemian Vagabond OUTDOOR ACTIVITIES
MUSIC
Surf, Bali Eco-Cycling, Diving, Yoga, River Rafting through the Jungle, Midnight trek to Mount Batur, Tegalalung Rice Terrace, River Rafting & Tubing, Tegenungan Waterfall
Ubud Kelod – You can find a play every night in town by the Javalan Musical & Performers. Tickets are sold outside or have your hotel arrange it.
RESTAURANT / NIGHTLIFE KU DE TA: Go at Sunset, the most beautiful restaurant in Seminyak, Bali… overlooking the ocean
Indonesia is the largest island country in the world
OPPOSITE: Shutterstock / Anton Akhmatov RIGHT (woman praying): Shutterstock / Lucky Business RIGHT (market): Jacki Ueng
with over 14,000 islands, 255 million people, consisted of the most Muslim-Majority country. Bali is a province in Indonesia with a population of 4 million and consists of 83% Hindus, 13% Muslims, a small percentage of Christians & Buddhists. It is very possible this large Hindu population (Indonesia’s largest) is why Bali comes off the most liberal and free-spirited island while still rich in spirituality. As a female traveler, I felt extremely safe, even walking around late at night. BALI is
“As a female traveler, I felt extremely safe, even walking around late at night. ”
CAFÉ HAVANA Cuban style restaurant/Bar NAPI ORTI BAR Get your Reggae on at this Rastafarian style bar with live music TAKE A COOKING CLASS!
COFFEE Kopi Asli Indonesian Coffee
SLEEP
SRI BUNGALOWS BALI – Gorgeous midrange resort situated on Monkey Forest Road, with Bungalows scattered throughout the rice patties. Beautiful view to wake up to, and to gaze at stars at night.
83% HINDU
I had always thought of Bali as purely a beach destination, as it boasts some of the most beautiful islands in the world (Gili!), but what I fell in deeper love with was Ubud, the central mountain range and “Cultural Heart” of Bali, a spiritual, cozy, jungly, artsy, hippie-destination filled with boutique shops, trendy yet authentic Indonesian cuisine, and yoga studios (more like treehouses) as your ultimate relaxation destination. Ubud is also well known for its Art and Music scene. On any given night you can find a musical play in town playing traditional Balinese Dance.
In the hub of Ubud and Bali, the standard cost of traveling is a bit higher than the neighboring southeast Asian countries, but still relatively cheap compared to the rest of the world. But you can certainly still find some off the beaten path guesthouses and restaurants for very cheap. Ubud is most known for the Sacred Monkey Forest Sanctuary, where the “Macaques,” Balinese’ longtailed monkeys, rule in this nature reserve of 26 acres with approximately 115 different species of trees. Over 10,000 visitors pay homage to this adorable forest each year. Born comedians, these rascal monkeys are driven to have their new Homo Sapien friends leave with a belly full of laughter and possibly stolen sunglasses – so don’t forget to guard your belongings! Option to buy a small batch of mini bananas to feed the naughty monkeys, it’s well worth it. For more information about traveling in Bali, follow these links! bali.com
JACKI UENG is the Bohemian Vagabond, a travel blogger who inspires others to travel and experience the customs, cultures and foods of destinations across the world. Follow Jacki's travels at:
JackiUeng.com
indonesia.travel/en/destination/73/bali tripadvisor.com/Tourism-g294226-BaliVacations.html Agoda.com is the Hotels.com of Asia. Best place to look at ranking and book hotels.
WINTER 2016
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INDONESIA BY THE NUMBERS
Country Report: Indonesia
POPULATION million
250
EXPECTED POPULATION GROWTH BY 2050
321
By Cynthia Fauth
million
The Indonesian archipelago is synonymous worldwide with stunning beaches and raw natural beauty. Tourists flock there from all over the globe for its breathtaking sights from mountains rising above the landscape, to the spectacular wonders that lie below the sea. Indonesia’s unique landscape extends beyond the majestic scenery. Its economy and real estate markets have their own uniquely complex features. Southeast Asia’s largest economy has fluctuated in recent years, expanding rapidly in 2012 and early 2013. The rapid growth included a nearly 30 percent price increase for residential properties and a historically low Bank Indonesia benchmark interest rate. Concerns about a property bubble caused Bank Indonesia to tighten its policies. It raised the minimum down payment requirement for property purchases and curbed mortgages for second homes in an effort to prevent build-up of housing debt. In addition, it hiked interest rates from 5.75 to 7.5 percent. These components, along with political (and therefore economic) uncertainty The weakening in the 2014 election year, Indonesian Rupiah resulted in a cool-down against the U.S. Dollar of Indonesia’s property creates investment market. opportunities By late 2014, residential property sales and prices had significantly dipped. Bank Indonesia’s
1 USD = IDR 14,000
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Residential Property Price Index declined by 6.3 percent, down from an annual growth rate of 11.5 percent one year earlier, and inflation outpaced property price growth. Sales in the first quarter of 2015 were down 13.5 percent from the quarter before. In all, Indonesia’s economic growth sank to a six-year low in the first quarter of 2015.
Improving the Property Market: Encouraging International Investment It’s a common theme in countries around the world – a rapidly growing property market incites fears of a bubble, so cooling measures are implemented. Cooling measures result in a stifled property market, causing governments to relax the requirements and regulations for property ownership. Indonesia is no exception. Since the cooling measures were applied, the government has since loosened regulations in hopes of boosting economic growth. To that end, Bank Indonesia has again raised the loan-tovalue (LTV ratio) by 10 percent, bringing it up to 80 percent
POPULATION UNDER 30 YEARS of AGE
50
%
READ:
first-time homebuyers!
8
million Indonesians live overseas, primarily in Malaysia, UAE, South Korea, Japan, Singapore, Netherlands, United States, and Australia
for first homes (above 70 square meters), 70 percent for second homes, and 60 percent to INDONESIANS IN THE U.S. third homes. Furthermore, international investment Most Indonesians in the United States are students and has become a priority for the Indonesian professionals, many of them settling in to the U.S. as government. In an effort to boost tax engineers in the high-tech industry. revenues and encourage investor interest, the government has signed regulation to loosen Currently, Indonesia ranks in the property ownership stipulations for foreigners. The regulation, signed by President Joko Widodo in December, includes plans to give non-Indonesians the right to own leading countries of property under the Right to Use provision. origin for students In the past, foreigners were barred from coming to the purchasing property directly. Some were able United States. to circumvent this barrier through the use of proxies or creative structuring of a lease (such as a long-term lease of up to 100 years). Now, foreigners are permitted to own a house or apartment for a period of 30 years, which can be extended for another 20 years. The law mentions the right to renew after extension Students from Indonesia were for a maximum period of 30 years. This all falls studying in the U.S. in the under the government’s “right of use” category, 2014/2015 academic year... which differs from “right of ownership” – a category available to Indonesians only. By relaxing the regulations, the government On the east is hoping to see a positive impact on the coast, Boston Indonesian economy from an uptick in University luxury tax revenues and local spending. They and Harvard are hoping to draw interest from regional University powerhouses like China and Singapore. are popular Sofyan Djalil, Indonesia’s coordinating choices for minister for economic affairs, spoke to local Indonesian press on the heels of the announcement, students. saying, “If people from developed nations want to retire here or spend their winters here, then that will create jobs and boost spending power.” in Southeast Asia, and demand will persist Tony Eddy, President of Keller Williams Indonesia, because of the large number of first time has noticed an uptick. “Several big foreign developers homebuyers coming in to the market. from Japan and South Korea are now actively involved in Eddy points out that the new government administration supplying housing demand by building landed and vertical is more transparent and the new regulations offer less housing projects in surrounding Jakarta areas,” he said. “For red tape for foreign investors. commercial properties, most investors are looking at office “Though the new law is not yet in If people from developed nations space and shopping malls in Jakarta. Meanwhile, Bali is the effect, foreigners can still invest want to retire here or spend their still first choice for tourism related property investment.” in Indonesia’s real estate market winters here, then that will create He also notes that the weakening local currency as either a corporate or personal jobs and boost spending power. against the U.S. dollar (1 USD is equal to IDR 14,000) investment,” he says. “Indonesia’s – SOFYAN DJALIL makes Indonesia’s real estate market a solid investment property ownership system is Indonesia's Coordinating opportunity. slightly different from that of the Minister for Economic Affairs U.S., so it is recommended to have prudent advice from credible agents in the country before disbursing any payments. But with the right advice, the investment is indeed still safe and secure.” Paired with the expected interest of foreign buyers, Though interest rates will likely remain high and a Indonesia’s property market is promising. After all, who quick rebound is unlikely, the Indonesian property market wouldn’t be attracted to a second home (or primary is well positioned for recovery. It will take a bit of time to residence, for that matter) in this picturesque island nation? feel the impact of the lower down payment/higher LTV requirements. Property prices are still among the lowest
8,188
3.4
%
OPPOSITE BELOW: Shutterstock / Ashwin OPPOSITE ABOVE: Shutterstock / Zephyr_p
increase from last year
Poised for Recovery
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In Review
THE 2015 AREAA NATIONAL CONVENTION OCTOBER 22-24, 2015 / SAN FRANCISCO, CALIFORNIA / PHOTOS BY AMY TOLBERT The 2015 AREAA National Convention was held at the Hyatt Regency in beautiful San Francisco. This was AREAA’s largest Convention to date, attracting over 1,200 attendees from around the world. The Convention coincided with the city’s celebration of the 150th anniversary of the use of Chinese labor in the construction of the First Transcontinental Railroad, which connected the coasts of the U.S. and helped mend a nation devastated by civil war. The Convention provided attendees an opportunity to hear some of the brightest and most well known names in the real estate industry speak on a variety of topics from global economic trends, to how best to utilize social media in establishing your brand as an agent. A | R | E takes a look back at some of the most memorable and exciting moments of the 2016 National Convention.
INTERNATIONAL WELCOME RECEPTION Tina Balch of AREAA San Diego, Stephany Oliveros of AREAA Greater Chicago, and Dionne Cuello of AREAA Dallas/Ft. Worth at the International Welcome Reception, which allows international attendees to mingle with AREAA members. 20
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Attendees were encouraged to wear the traditional ethnic attire of their heritage at the reception.
AREAA Phoenix chapter pres ident Kurt Nishimura shakes hands with a fellow attendee.
2015 AREAA National Convention
OPPOSITE: AREAA Greater Chicago’s Vicky Silvano is called to the stage to be sworn in as the next National Chair woman by her daughter, Camille TOP: Acapella group sensation The Filharmonics, a Filipino music troupe, helps set the tone for the night with a special performance for Convention attendees. This was quite a popular segment for some of the ladies in the crowd! MIDDLE LEFT: Members dress in their ethnic attire for the International Welcome Reception. The reception gives the inter national attendees a chance to network and create lasting business relationships that have proven invaluable over the years for AREAA members. MIDDLE RIGHT: 2016 NAR President-elect Bill Brown addresses the crowd before the Installation Ceremony. LEFT: A traditional Korean Drum group performs before the Fashion Show.
CONTINUED
AREAA members smiling for the camera at the Opening General Session.
HSBC’s Jeff Needham waves to the crowd before the Installa tion Ceremony.
2016 SF Peninsula Chapter President Folger Emerson and Immediate Past-President Debbie Wong pose for a quick snapshot.
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2015 AREAA National Convention 2
The AREAA Parade of Chapters kicked things off on the first full day of the Convention. Chapters dressed up and brought props to show off their Chapter Spirit and represent the city or area where they are based.
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1. AREAA Toronto showing their Blue Jay Pride; 2. It’s Sand, Sun, and Surf for AREAA South Bay; 3. AREAA Silicon Valley boasting just a few of the businesses that call the area home; 4. Glitz and Glamor for AREAA Greater Los Angeles; 5. Some past and present Executive Board members take a moment onstage to take a picture;
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6. The “animals” from the AREAA San Diego zoo received a big laugh with their catwalk!
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2015 AREAA National Convention 7
8 7. AREAA Dallas/Ft. Worth’s Dionne Cuello shows off some of her rap skills in AREAA’s Got Talent; 8. AREAA Chairman Emeritus Jim Park (who does a mean whip and nae nae!) discusses the rise of anti-immigrant sentiment and announces the ambitious No Other campaign (visit areaa.org/no-other for more information); 9. AREAA Dallas/Ft. Worth put on quite a spectacle at the talent show;
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10. Better Homes & Gardens Real Estate CEO Sherry Chris (right) interviews feng shui ex pert Anjie Cho (left) and AREAA Boston and new International Committee Chair Jessica Ye (middle) about a new joint-sur vey conducted by BH&G Real Estate and AREAA; 11. AREAA Austin Founding President Jenny Cui square dances with her fellow Texans; 12. The one and only Randy Char (AREAA Las Vegas) gives a taste of his impressive dance moves.
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ANNUAL
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FASHION SHOW WINTER 2016
2015 AREAA National Convention
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1. AREAA Chicago President Ann Trandai and Twin Cities President Long Doan don traditional Vietnamese attire for the Fashion Show; 2. Mony Nop and Josephine Phan bow to one another in Laotian dress; 3. AREAA Silicon Valley’s Atsuko Yube and Phoenix Chapter President Kurt Nishimura hit the cat walk in traditional Japanese clothing; 4. 2015 Luxury Chair Randy Char and Greater Toronto President Cynthia Lai show off traditional Chinese attire; 5. The fashion show highlighted the works of several prominent Asian designers; 6. NBC’s Richard Lui emceed the show, and even found the time to help clean up a little bit!; 7. These ladies in the front row were having quite a good time; 8. Bob Henry and Cherry Tamaru showcase traditional Malaysian fashion; 9. AREAA SF Peninsula President Debbie Wong leads the final walk through of all the models. WINTER 2016
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INSTALLATION GALA 26
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2015 AREAA National Convention
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1. Convention goers were treated to a wonderful rendition of the National Anthem before the Installation Gala; 2. Iron Chef America host and international film star Mark Dacascos emceed the Installation Gala and gave the crowd a taste of some of his moves; 3. Newly elected National Chairwoman Vicky Silvano sings a duet with one of the members of the band The Filharmonics; 4. NAR’s Jason Marquis, Winnie Chow-Davis, and AREAA Seattle’s Mark Kitabayashi pose for a quick photo before the Installation Gala 5. Outgoing National Chairwoman Carmen Chong gets the crowd on their feet to start the day; 6. Allen Chiang, middle, accepts the AREAA Person of the Year Award from (left to right) Jim Park, John Wong, his beautiful wife Sophie, and Allen Okamoto; 7. National Convention Co-Chair Amy Kong addresses Convention attendees; 8. John Wong swears in Vicky Silvano and her board WINTER 2016
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2015 AREAA National Convention Amy Tan, international best-selling author of The Joy Luck Club, signs books and chats a little with attendees Richard Lui speaks about the importance of civic engagement
the AREAA Education Foundation’s Welcome Home for Heroes Housing Assistance Program awards another $10,000 grant to a Veteran in need
Lorna Randlett of the White House Initiative on Asian Americans and Pacific Islanders (WHIAAPI) and Brad Blackwell of Wells Fargo discuss the current state of housing for the AAPI population Carmen Chong poses with Maggi Thornhill, AREAA’s Top A-Lister having sold over $180,000,000 in real estate for the year, and Bank of America's Glenda Gabriel
EDUCATION SESSIONS Marion Napoleon leads a class for attendees about working with Veterans
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Fanny Chu teaches the CIPS certification course
Mike Franklin and Loida Gue vara of AREAA San Diego have a little fun scanning attendees coming into a session
2015 AREAA National Convention
Amy Kong and Gary Kawano accept golden spikes from Carmen Chong and Vicky Silvano for their hard work as Convention Co-Chairs. The spikes were symbolic of the work of the Chinese immigrants in the construction of the First Transcontinental Railroad.
Story boards set up in the Convention lobby chronicling the construction of the First Transcontinental Railroad Russell Low, a descendant of a Chinese railroad worker, gives a fascinating and heartwrenching account of what life was like for the immigrant workers
Standing room only in one of the almost two dozen education sessions that took place
Just some of the bright and shining faces that make up AREAA’s membership
Dionne Cuello always knows how to light up a room with a smile
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Thanks for sitting down with me today Vicky, and congratulations on your new position. Strangely, I seem to know very little about your background, so I’d like to start there. I come from a family of 6 kids where I’m the middle child. As you know about middle kids, they are almost always given the least attention and so, these kids tend to be successful and driven growing up. However, I think I was a bit of a late bloomer. I was good in class but quiet and reserved. I looked up to my eldest sister who was always at the top of her class and popular. I guess, when it came time for me, I felt overshadowed. Outside of class, I was more outgoing and vibrant. I played volleyball in high school and basketball in college.
I played a bit of basketball myself, maybe we can have a game of HORSE sometime. So what drove you to leave your home in the Philippines to make a name for yourself in America? What was that transition like? Moving to America was a very hard choice for me. I had a marketing job at Procter and Gamble which was hard to leave because I thought I was going to make a career out of it. But my husband, Carmelo, had come to the ahead of me three years prior. He earned his Master’s degree in Chicago and that three year separation became a strong test of our relationship. My enculturation into the US required a great deal of determination and effort on my part. Being in Chicago, I also had to get used to the weather, which changes every quarter. I have to contend with my new environment, new people to interact with, a new language to learn (although Filipinos speak English, I still need to learn idiomatic expressions and its common meaning), etc. Looking back, it was good that Carmelo had come ahead of me because he became my mentor and guide during my early years in Chicago.
VICKY SILVANO Takes Control
I can only imagine how great it must have been to have your husband around to help you acclimate to a new culture. You mentioned earlier that you had a great job at Procter & Gamble before immigrating to America; was it easy for you to find decent work once you got here? How did you get into real estate?
In the beginning, I took odd jobs which felt ‘demeaning’ and out of character. After working at a dry cleaners for about six months (my first job), I took a job at University as an administrative assistant. The four
Winnie Chow-Davis, Silvano and Nancy Suvarnamani at the AREAA Global + Luxury Summit in Honolulu Silvano and daughter Camille at the 2015 AREAA National Convention
years I was there taught me how to interact in an office environment with different ethnic groups because you guessed it – I was the only Asian American in the office. Over my last few months, I felt I was being given trivial tasks that didn’t matter, and that I had maybe reached my ceiling at that particular job. That was the first time I felt truly disadvantaged, and I decided I was going to do something about it.
I was looking for other jobs when I came across a newspaper ad that read, “Join Our Career Night!” So Carmelo and I went to this meeting and lo and behold, it was a recruiting presentation for Century 21!
David Murphey
So what did you do?
I had always had an entrepreneurial spirit in my early age, which now gave me an edge when I decided to make real estate my career. For several years I worked for different offices, I then owned my own Century21 office, but ultimately decided I wanted to be back in simply sales, instead of brokerage ownership. I now lead a team dedicated to handling a volume of distressed properties and traditional deals that are now so prevalent in the Chicago market. Today, Carmelo and I have two beautiful girls – Camille and Carla. Camille just graduated from the University of Illinois, and Carla is a senior at Purdue University.
Working at Century21 S.G.R. with Nancy Suvarnamani, a successful broker/owner, opened a new door for me - the door to AREAA and to my way of giving back to the community. I learned about AREAA through Nancy as she was one of the first Board of Directors when AREAA was in its early stage and is the Founding President of the Greater Chicago chapter. 32
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Amy Tolbert
So now you’re settled down in a new career as an agent with Century 21, when did AREAA come into the picture?
Silvano, daughter Carla, husband Carmelo and daughter Camille
What do you think are the biggest barriers AAPI homeownership today?
Courtesy of Vicky Silvano
After the recent real estate crisis, tight credit underwriting guidelines scaled down home purchases tremendously. As representatives of such a diverse community, where nearly 1 in 10 AAPI is a small business owner, and many more come from cultures that do not value taking on traditional Western debt, the need for new scoring models would expand and increase homeownership. I was a new homeowner once, and I experienced how hard it is to get a mortgage when you are a business owner, and I carry this to heart.
Being part of her office and being an Asian American, it was an easy ‘marriage’ for me with Nancy and AREAA. As the second Greater Chicago chapter president, I led the group and grew its membership quickly. I led the first Philippine Trade Mission with about 20 members, including Nancy, Kathy Tsao and Jim Park. Being an AREAA leader, it felt like I found my other calling –to volunteer and serve the community I belong to, where real estate is its core adage and its mission of homeownership sustainability and preventing barriers to homeownership amongst the AAPI community. I felt that this is “HOME” and part of my ‘FIGHT’.
What will be your focus as National Chairwoman? Community outreach, education, membership growth, and advocating for policies that help increase homeownership in the AAPI community. I think it’s important, especially in an election year, to really engage and inspire our members to be more involved politically and in their communities. Through AREAA, I would like to maintain and continue advocating policy changes that protect and uphold the property rights of the AAPI community. If we continue to be ‘silent’ and under-represented, we will never be able to make these policy makers hear our woes and challenges. It is time to rise up and be heard! Enough of the model minority myth! We need to let the government know that the AAPI community is strong in these respects – Education, Income and Economic Impact. Even if AAPI only represent about 6% of the US population, our growth and economic impact is too big to ignore. As the largest Asian trade organization in the country with over 15,000 members, I think together we can make a huge difference and affect a positive outcome.
Thank you for your time today, Vicky. To wrap this up, a year from now, when your term is over, what would you like to look back and say that you’ve accomplished? Membership retention and increase will always be among the top goals for any Chair of a member-driven organization, and I’m no different. I would like to see at least a 20% increase in membership by the time my term is over. More importantly, I would like to see all our chapters and members incorporate more community service events as part of their yearly activities. It would ingrain in our minds what our real focus and mission is -- servicing and representing the AAPI community how we can, when we can, and where we can. My final hope would be that members think of me as a grass roots kind of leader, one that speaks for the general member and community at large. I consider myself a very down to earth person. I am humbled to be given the opportunity to represent so many hardworking people who believe in our organization’s cause. I hope that people feel they can reach out to me if they have something to say, and know that I will listen. To me, that’s the mark of a good leader.
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International Real Estate 101 with Mark Kitabayashi
W
hen I talk about international real estate to real estate agents, I ask this question: “How many of you have done an inter national transaction?” A few hands go up…Next, “How many of you have done a transaction with a client that English is their second language?” Most, if not all, hands go up. My first transaction as an agent was an international one. One of my title company reps referred me to a Vietnamese lady who owned the nail salon that she goes to (At that time she did not know the difference in ethnicity). I am not Vietnamese, nor do I speak Vietnamese. (FYI-I am Fluent in Japanese). The only Vietnamese I knew was what was on menu at the local Vietnamese restaurant. I was able to help her
family buy their first home, and was able to build a trusting relationship. Next came their family and friends who live locally, and now that has grown to investment buyers from Vietnam. I have more Viet I am not Vietnamese, nor do namese clients than I speak Vietnamese. The only Japanese clients.
Vietnamese I knew was what
So, the first step was on menu at the local for you to establish Vietnamese restaurant. your international business is to start local. Tap in to your own community and your own database. Language might not be your biggest obstacle.
MARK KITABAYASHI is long time member of AREAA and CIPS instructor for NAR. He lives and works in the Seattle, Washington area for Windermere Real Estate. You can reach Mark at 360-888-2210 or Mark@windermere.com. 34
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19.4 MILLION
Population and Rapidly Growing
$600 BILLION
Loan Volume over Past 5 Years
$1 TRILLION
Purchasing Power by 2017 Yet the US Census Bureau Doesn’t Count Our Quarterly Homeownership Numbers Instead, AAPI are Lumped into the “Other” Race Category
JOIN THE MOVEMENT TO BE HEARD
For More Information Visit
WWW.AREAA.ORG/NO-OTHER
8 D L U O H S U O Y S TH I N G W A B O U T. . . KN O
i ' i a w Ha
In anticipation of the 2016 Global and Luxury Summit in Honolulu, Hawaii, a | r | e takes a look at 8 Things You Should Know about the Aloha State.
Hawaiian sunset Shutterstock / Pierre Leclerc
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What’s in a Name?
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Young at Heart
The state of Hawaii derives its name from its largest island, Hawai’i. It is said that the name refers to the legendary historical figure Hawaiiloa, who first settled the islands.
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Location, Location, Location Hawaii is the southernmost state in the nation, the second westernmost (after Alaska), and is the only island state. It is the only state not located in North America and is the only state where coffee is cultivable.
Hawaii is the youngest state in the Union, both in terms of when it was annexed (August 21, 1959), and geologically.
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Est. 1959
It’s Getting Hot in Here
Hawaii is the most volcanically active state in the nation, and one of the most active in the world. The islands are still being formed today by the “Hawaiian Hotspot”, the name of the magma hotspot that created the islands.
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Hawaii Volcanoes National Park Shutterstock / George Burba
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Ain’t No Mountain High Enough If measured from its base on the floor of the Pacific Ocean, Hawaii’s Mauna Kea is the largest mountain on earth at 33,500 feet. Measured from sea-level, it’s still quite the mammoth at 13,796 feet.
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One of a Kind
ASIANS in HAWAI'I
38.6%
Hawaii is the only state that has an Asian plurality, with 38.6% of the population being of Asian descent. Filipino Americans make up a majority of the Asian population of the state, followed by Japanese Americans, Chinese Americans, and Korean Americans.
Island Kingdom The Kingdom of Hawaii was established when King Kamehameha the Great successfully conquered all of the islands by 1795. From 1810 to 1893, Hawaii was a recognized sovereign nation (one of four US states to hold this distinction: California, Texas, and Vermont being the others). However, in 1893 American and European capitalists overthrew the monarchy and ended the great line of indigenous, hereditary monarchs of the island nation.
Sunset at the summit of Mauna Kea Shutterstock / Alexey Kamenskiy
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Strange but True It is illegal to own a pet hamster in Hawaii, as the state’s climate is similar to the natural habitat of the popular schoolroom pet (yes, hamsters do exist in the wild). Officials banned the cute furballs after raising concerns that escaped or released hamsters would establish wild colonies and destroy native plants and damage crops. WINTER 2016
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Outside the Box with Don Choi
WHEN DO RENTAL INCOME & SOCIAL SECURITY INCOME MAKE SENSE? In my 20 years of financial services experience, I've never realized until recently how Social Security is arguably the most complex government entitlement program; especially because of its hundreds of different filing methods, and 3,000 plus laws. The fact is that many Americans don’t understand how to maximize their wealth while maximizing their retirement benefits from Social Security. In 2010, Pew Research conducted a study that shows 10,000 baby-boomers will turn 65 every day until an estimated 2029. Think about that: 10,000 a day, turning 65 , every day, until 2029. What does this mean for all the retirees? Make sure you know when and how to collect your retirement benefits, especially if you plan on keeping real estate income as part of your retirement income strategy (assuming you're not a real estate dealer). Today I’m going to cover some basic nomenclature that all pre-retirees needs to know when it comes to Social Security and I'll explain when Real Estate Rental Income may make sense in a situation where a retiree chooses to collect their benefits before their full retirement age. Let's review the following terms: Full Retirement Age (FRA), Primary Insurance Amount (PIA) and Earnings Test. 38
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Outside the Box with Don Choi
Full Retirement Primary Insurance Age Amount First is your Full Retirement Age, or "FRA". FRA is the age at which a person becomes entitled to their "full" or unreduced retirement benefits.
The second term you need to understand is Primary Insurance Amount, otherwise known as "PIA". PIA is the benefit amount a person would re ceive at their full retirement age.
The ages for FRA vary from 65 to 67, depending upon the specific year of birth. For example, people who are born before 1935 would have a full retire ment age of 65 where as people born after 1960 would have a full retirement age of 67. It is import ant to note that retirees can collect their benefits as early as age 62, which is before their FRA (and later described in Primary Insurance Amount).
So this is where it begins to get a little tricky for people who own real estate and are trying to figure out when to collect or how to maximize their social security benefits. The most basic concept to remember with social security is "the longer you wait, the higher your PIA". This holds especially true if you file and suspend your benefits at Full Retirement Age, where your PIA will grow at 8% until age 70, which can increase your PIA to 132%. People who choose to collect benefits as early as 62 or before their FRA would receive less than their PIA.
YEAR of BIRTH
19431954
FULL RETIREMENT 66 AGE
1955
1956
1957
1958
1959
1960 & LATER
66 and
66 and
66 and
66 and
66 and
67
2 months
4 months
6 months
8 months
10 months
Source: Social Security Administration, 2015
Earnings Test Assuming a retiree has opted to collect their Social Security Retirement Benefits at age 62, their benefits would be subject to an earnings test. Wages, bonuses, and fees could all affect an earnings test, therefore further reducing the already reduced Social Security Retirement Benefits. However, there are sources of income that are NOT included in the earnings test. Some of them include pensions, retirement pay, Veterans Administration benefits, investment income, annuity income, and…wait for it… RENTAL INCOME.*
If your FRA age is 66, the reduction for starting your retirement benefits at age:
If your FRA age is 67, the reduction for starting your retirement benefits at age:
62 is about 25%
62 is about 30%
See the chart at right.
63 is about 20%
63 is about 25%
Please note that the reduced amounts are deferred until the retiree reaches full retirement age.
64 is about 13.3%
64 is about 20%
In summary, it really all depends on a variety of factors such as a retiree's balance sheet, cash flow needs, their bill of good health and other factors. The more pre-retirees understand the different social security filing strategies and the real estate market, the more they can plan for a cash flow consistent model with less volatility during their retirement.
65 is about 6.7%
65 is about 13.3% 66 is about 6.7%
*Rental Income is excluded from earnings unless you are a "real estate dealer" WINTER 2016
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Shutterstock / f11photo
In My Neighborhood with Tim Hur
Courtesy of Buckhead Life Restaurant Group
ATLANTA, GEORGIA
Brunch at Corner Cafe is a must!
Housing Market in Buckhead Source: Realtor.com®
$675k $390k Median List Price 40
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Median Closing Price
$317 Price per Square Foot
What attracted you to this part of town? The great restaurants, accessibility to all the major highways and the affordable high rise condo living attracted me to this area and I have spent over seven years of my life here. It doesn't hurt that all the shopping is around this area as well! The beauty of Buckhead is that you go down the street and find all the multi-million dollar homes tucked away.
What’s the number one selling point that resident and new buyers rave about? All the beautiful homes. The Real Housewives of Atlanta don't live here for nothing! This is where all the elite people live, whether it be for the beautiful estates or the amazing penthouse living.
What’s a common misconception about the neighborhood you would like to clear up? That it's only for the rich and famous. While
TIM'S BEST
In My Neighborhood with Tim Hur
Best place for a date night?
Best place to have a beer/cocktail? Fadó Irish Pub or if you have the secret phone number - Prohibition! You go to a phone booth and dial the number - if you don't have the right number, you can't get in! But if you do - the false back opens up to a huge cigar bar. You never know who you'll run into there. Any good shopping areas or stores? Streets of Buckhead - I can't afford it, but it's great window shop ping. Hermes, Tom Ford (coming soon), Helmut Lang, Theory, Montclair, and other high end bou tiques all call this place home. Best brunch/coffee spot? Brunch - Corner Cafe off Pharr Road. Coffee spot - The Cookie Studio where you can enjoy a cookie while you're at it!
Buckhead is known for all the mega-mansions and the beautiful homes, there is plenty of affordable housing in the area. While you probably won't be able to find townhouses and single family homes that may fit your budget, there are plenty of studios, lofts, and condos that can be extremely affordable plus, some high rises come with fantastic views worth millions! Not to mention there are a lot of new luxury apartments that are being built.
great way to listen to great music, relax - and it's down the street!
What is your favorite restaurant in the neighborhood? Tell us a little about it. It's hard to pick just one! My favorite restaurants are Taka (the best sushi and run by real Japanese people!), Holeman and Finch (a great gastropub), King and Duke (they still cook everything like it's the olden days by fire!) and for Sunday brunch - Corner Cafe. Yum!
While Buckhead is known for all the megamansions and the beautiful homes, there is plenty of affordable housing in the area.
Can you share one of the neighborhood’s best kept secrets? While I've never been, I've been told to go check out 1Kept. Apparently 1Kept is only accessible via the back alley of Tantra and Peachtree Walk, and I’ve been told that they've make the cocktails so good, there's no shot you'll be able to remember just how you found it the first time. Let's go check it out!
What types of activities/events does your neighborhood offer?
Enjoy a nice evening at Chops Lobster Bar
Courtesy of Buckhead Life Restaurant Group
If you did something wrong and you need to beg for forgiveness, try one of the swanky highend restaurants, wear a button down and dress pants, and go to Chops Lobster Bar. I've been kicked out for wearing an entire suit... with my Chucks on. Chops Lobster Bar is a fantastic restaurant if you like red meats or items from the sea.
Delta Classic Chastain Park Amphitheater
Eating. Concerts. Shopping. Sports. What don't we offer?
What is your favorite way to spend an afternoon with friends or family here?
TIM HUR is Managing Broker/ Owner of Point Honors and Associates Realtors in Atlanta, Georgia
Chastain Park is not only the largest park in Atlanta, they host amazing concerts at the Amphitheatre. It's a Courtesy of Delta Classic Chastain Park Amphitheater
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Advocating for voters' rights Photos courtesy of Asian Americans Advancing Justice | AAJC
Non-Profit Spotlight
Asian Americans Advancing Justice | AAJC By Youjing You
Asian Americans Advancing Justice | AAJC is a national nonprofit based in Washington, D.C. The organization, founded in 1991, fights for civil and human rights for all Americans and empowers Asians Americans to participate in our democracy. Through advocacy and policy, capacity building and public education, and litigation, Advancing Justice | AAJC advocates for an America in which all Americans are able to equally benefit from, and contribute to, the American Dream. The organization is led by President and Executive Director Mee Moua. In addition to working as the premiere advocate for Asian Americans in Washington, Advancing Justice | AAJC builds partnerships with local and state-based Asian American and Pacific Islander organizations nationwide. This year, Advancing Justice | AAJC continued its strong litigation program by filing 18 briefs in federal court in cases involving health care, education, reproductive rights, immigrant rights, criminal justice and racial justice. Expanding immigration policy to promote family unification, integration and naturalization remains a key priority for Advancing Justice | AAJC. Recently, Advancing Justice | AAJC called on the president to improve our immigration system by easing the visa backlog that keeps families apart for decades, and provide deportation relief to undocumented immigrants, including 1.3 million undocumented Asian immigrants living in the United States. After President Obama responded and took executive action to prevent deportation of up to half a million Asian immigrants, Advancing Justice | AAJC worked with community leaders and ethnic media to help educate about the president’s immigration relief 42
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programs, share undocumented immigrant stories to combat the stigma in our communities associated with being undocumented and encourage undocumented immigrants who could benefit from the president’s relief programs to come forward and apply. Our organization also supported families by successfully advocating and achieving work visas for spouses of high-tech workers, and increasing access to education and employment opportunities for immigrant children and their parents. Advancing Justice | AAJC also works to build Asian American political power by removing barriers to voting and ensuring an accurate reflection of Asian Americans in the U.S. Census. Advancing Justice | AAJC educates about rights at the polls through its reports, and advocates for Congress to restore voting rights protections that were lost after the U.S. Supreme Court’s 2013 decision, Shelby County v. Holder. On Election Day, Advancing Justice | AAJC runs an Asian language election protection hotline (1-888-API-VOTE), providing assistance to callers in Bengali/ Bangla, Cantonese, Korean, Mandarin, Tagalog and Vietnamese. Just as important as the right to vote is our community’s need to be counted in the U.S. Census. President and Executive Director Moua currently advises the U.S. Census Bureau as a member of the National Advisory Committee on Racial, Ethnic and Other Populations, as it prepares for the 2020 Census.
Mee Moua, Senator Mazie Hirono & Attorney General Holder
Asian Americans Advancing Justice | AAJC youth
Advocating for voters' rights
Youjing You is a recent broadcast journalism graduate from Kent State University and began working at Advancing Justice | AAJC in August 2015
advancingjustice-aajc.org
REGISTER NOW AT AREAA.ORG/SUMMIT
APRIL 3RD - 5TH , 2016
rates begin at $200/issue email a-r-e@prveen.com for details
++ Shitakke
mushrooms ++ Baby bok choy ++ Cabbage ++ Bean sprouts ++ Carrots ++ Green onions ++ Onion ++ Ginger ++ Rice ++ Ground chicken, lean pork ++ Low sodium chicken broth ++ Garlic cloves ++ Turmeric ++ Garlic powder ++ Paprika ++ Egg or milk (optional) *Portion sizes and specific varieties of ingredients left out since this is really a fast and loose kind of recipe, experiment!
DIRECTIONS
crockpot INGREDIENTS
CHANKO NABE Veggies
A common dish eaten by sumo wrestlers to gain weight. However, it is a very healthy and hearty meal for the average person too! Note that you can find a million different recipes for chanko nabe, but the common threads are: cabbage, onions, mushrooms, bok choy, and protein. Rice is typically served on the side or even in the stew (I like it in!).
Meat 1. Mix together ground chicken and lean pork 2. Season with turmeric, garlic powder and paprika (or your favorite blend of spices) 3. Mix in your choice of an egg or milk (or nothing at all) 4. Shape into golf ball-sized portions 5. Set in oven at 425Ëš for 15 minutes
1. Chop all the veggies 2. Place in crockpot and fill with chicken broth until covered 3. Set to cook for 6-8 hours
To serve,
toss a couple of meat balls in a bowl, spoon out some veggies and broth, add a scoop of rice, garnish with green onion. WINTER 2016
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