Risk of failure of banks?

The title is provocative but perhaps not so much.

What would happen to a company if it lost in just a few years even the 80 / 90% of its value?

And what happens if, for example if a company refuses to the vast majority of its clients (80/90%) the sale of its products and services, citing the risks of no-payment of goods or services?

In the first case, anyone who would doubt that the company can survive for long.

In the second case: THE SAME!

Unfortunately, this is what is happening with the banking industry.

Some big banks have lost a good part of their value and are widely exposed with businesses, families, etc.. and are also in a critical position with regard to loans to those countries such as Greece and others, that are quite in similar situations.

Even the use of capital by banks, is now reduced to a flicker, with the refusal to companies and individuals to credit facilities for any use.

How can endure a situation certainly not profitable for the banking system?

And what happens when short, Greece will make probably default?

Where to put the money?

What almost no one speaks and that in any case, begins to grow in the minds of many investors, is the question, if the banks will be solvent for a long time and how these, are able to withstand the current situation?

The current landscape, still sees a lot of credit institutions (smaller ones) that are overvalued compared to the real situation.

For now, we have seen a downgrading of the largest banks.

But when it will involve to also other banks that have still nominally retained their value, it could have major repercussions in every direction.

The credit crisis and the banking system: what will happen?

To date, the injections of liquidity and lowering interest rates by the central authorities, had the effect of aspirin or paracetamol, temporarily lowering the temperature of the sick person, that is, temporarily has calmed the markets and safeguarding the stability of the financial system.

In fact, they have, to a certain point of view, postponed any decision and resolution of critical issues for the future, hoping that something will be resolved in the meantime alone.

In fact, they are solutions that in the medium term, are not enough!

On the horizon, even countries like Greece, Portugal and Ireland, they could get worse and drag down with a domino effect also other nations such as Spain and Italy and this, without counting those Eastern European countries, such as Hungary where major banks are heavily exposed and for which, there are no short shooting conditions.

The limitation of the use of cash, imposes to people and companies to reduce withdrawals from the banks, shielding them from potential risks of assaults to the bank counters, in case of aggravation of the situation following the arrival of the alarming news that could spread after a possible default by Greece or any European bank.

Moreover, the bond that many banks have between them and that was created over the years through mergers, acquisitions, equity holdings between banks and banks, could increase this potential risk.

A resent shortly, for further discussion.

 The escape from Italy and from other nations to live in countries with better taxation, it is very common.

The decision to transfer personal residence in the Principality of Monaco, is also the opportunity to enjoy a range of services and benefits that the Principality of Monaco offers its residents.

Let us now try to understand what are the benefits and how to transfer personal residence in Monaco.

In fact, this small state, offers great opportunities for those who want to live and conduct their business directly from this territory.

As in the previous post dedicated to the Principality of Monaco, we asked an expert consultant to the media, we have with us Mr. Mr. Domizio Cipriani, asset / property management consultant who works in the Principality of Monaco and supports investors in real estate transactions and in providing advice on various types of business related to foreign investment.

What are the problems to get the tax residence in Monaco?

It is a long practice, it must have an apartment, the declaration of a local bank stating that the applicant has the livelihoods, that si, have a job as an employee or independent, then, it must subscribe to the Aire. With regard to the tax residence to countries like Italy, it must to demonstrate to the italian taxation autorithy , as there is the burden of proof from the taxpayer, that the center of interest (family, work and home ) is Monaco and that for over 183 days per year the subject is present at Monaco.

What are the tax advantages of residence in Monaco?

The complete exemption of taxes for individuals and civil society in real estate

Other advantages resulting from the fact of residing in the Principality of Monaco.

The quality of life, safety, health care, climate, the fact of living in a cosmopolitan city, the opportunity to enjoy every day of events.

If a person transfers his residence in Monaco, can he continue its activities as an entrepreneur in Italy or elsewhere?

It’s not a good idea to continue the activity in Italy, the directors must delegate who will work in place, remaining only in fact the owner. AND OTHERWISE ‘Council is the GENERAL SOCIETY OF OWN’ IN MONACO, AS ‘TO CHECK THE WORK OF CONTROLLED AND REDUCED tax benefit INTERNATIONALISATION ESPECIALLY THROUGH THE HELP OF A STATE AGENCY “CHAMBER OF ECONOMIC DEVELOPMENT” TO ORGANIZE MISSIONS AND MEETINGS IN THE WORLD EVEN TAILORED TO AFFILIATES WITH A COST OF ANNUAL MEMBERSHIP OF 500 €!

For this interview, we salute our consultant and we give you the appointment with the next post.

Some data of our consultants:

Domizio Cipriani, asset / property management consultant in Monaco.

Contact: 0037787065312, mobile 00377607934456.

We continue from the first part where we spoke of the risk of a housing bubble for the Italian market due to a number of critical issues that are expanding and with the adding to other problems that they can cause in the future, problematic situations for the market of the brick.

Housing bubble in Italy? The risk factors.

The reduction of the required of properties to purchase and consequently, a drastic reduction of the value of property in Italy, could be caused by the summation of several factors, including:

Less avaible income

One of the biggest problems in Italy, is the lower earning power and of spending by millions of individuals and families that affects the possibility of savings and to make investments, including real estate and to support mortgage loans in the future.

Credit Crunch.

The credit crunch that is much stronger now, no longer allows to a large part of households and businesses to access loans for the purchase of property.

Keep in mind that a good part of the property for industrial use as well as residential and commercial, are generally purchased with the help of bank loans and without this credit tool, most of the real estate purchases are postponed or canceled.

An increase housing supply over the demand.

An increase of the supply of real estate resulting from a greater number of properties sold on the market for following motivations:

Growth of taxes on real estate since 2012 and therefore, the properties will be less attractive as investment and more expensive to manage, with the consequence of causing the reduction of demand for real estate and also, find on the market many properties that are been put up for sale because of the difficulty to cope with new taxes by the owners.

In addition, there is always a risk of a further capital tax additional at the end of 2012 or 2013 that could be introduced to cope with budget problems of the country.

The increasing difficulty on the part of Italian families to pay the service charges (more than 20% is delayed or defaulted in payment) and therefore is increasing the risk of having to sell the property owned to meet these expenses.

Defaults in the payment of loans

The crisis and the difficulties that families and businesses can be found at this time, has increased the number of defaults in the payment of mortgages.

There are now hundreds of thousands the risky lending in the real estate sector.

In the event of insolvency, hundreds of thousands of properties, should be sold by banks, thus causing a further oversupply.

Debts of individuals and businesses.

At this time, there are millions of the tax debts in Italy and a large part of those, are relates to mortgages on properties and many of these debts, have high interest rates and growing and can not be honored and thus, will force property owners to put in sell the properties to cover debts.

Otherwise, the property will be seized and offered for sale by creditors in any case.

We continue this analysis in the next episode with the verification of other critical issues that affect the Italian property market.

Continue.

The Principality of Monaco is a tiny state located on the Riviera between Nice and Menton near the Italian border.

The limited availability of physical space compared to the high demand for real estate, has made this area very expensive in terms of real estate.

Investing in real estate market of the Principality of Monaco has for decades considered to be an attractive use of capital, both as an investment and as a general use of real property for use by residence or second home.

Investing in real estate in the Principality of Monaco

To understand the opportunities present in the Principality of Monaco, we have with us Mr. Domizio Cipriani, asset / property management consultant who works in the Principality of Monaco and supports investors in real estate transactions and providing advice on various types of business related to foreign investment.

Investing in real estate in the Principality of Monaco, which types of real estate for investment can be found?

Any, from the attic to the studio, from the shop to the showroom, hotel, buildings to be rebuilt up to the offices and laboratories.

 What kind of price according to the type of product you can find?

Prices vary greatly from area to area and from palace to palace, prices start from € 15000 per square meter for old buildings in poor conditions without exceptional views to 150,000 € per square meter for exclusive apartments, however, average prices are around € 30,000 to mq.

Buying a property in Monaco to put him to rent. What is recommended?

It is interesting from the standpoint of security of payment. If the tenant fails to pay in a month, he is sent away.

It is also interesting because the rent received is not taxed, nor the property.

The rent received is low (about 2% of property value)

Which and how many are the property taxes in Monaco?

None, only the registration fee at the time of the purchase and has been lowered to about 5%, you can also do the merchant des biens, buy properties to sell with a registration fee of 2% facilitated at the time of purchase and the balance to be paid when it is sold, including the application of VAT on net capital gain made.

What are the costs and problems that must be sustained in the acquisition of a property.

Nothing special, it can also constitute a civil real estate society with 250 €, on wich put the properties.

What are the types of properties that have been reassessed in recent years and more which are more readily marketable?

Surely, apartments with view in luxury condos in Carrè Area D’or and beach.

Other considerations on investment in the Principality of Monaco

It is very safe investments, and especially protected.

It is a very safe investments and especially, protected.

Other types of investment potential in the Principality of Monaco.

In Monaco, it is also possible to invest in commercial activities.

We thank thank Mr. Domizio Cipriani for the support provided and we give you appointment for the next episode, dedicated to the opportunity to transfer the residence in Monaco.

 Some data of our consultant:

Domizio Cipriani, asset / property management consultant and works in Monaco.

Contact: 0037787065312, mobile 00377607934456.

In the selling of a business, the best business are made when the sale of an asset is carried at certain times, that is, when the business is sold to its maximal value reached.

It is not always easy to pinpoint the right time to sell an asset for a wide variety of reasons but it is important to understand when it is approaching the maximum value that the business can acquire.

If our intention is still to sell the asset after a certain stage of management, then, is important to understand the best time to sell and not lose a good opportunity: that is, when it can get the highest price of for sale.

Selling a business: because the activities are often sold at prices unsatisfactory?

In many cases, it comes to the sale of its business when profits plummeted and the core business, is no longer able to sustain the activity.

The tendency of many entrepreneurs when they are in trouble, is to ‘sit tight’ and hope for ‘better times’ and this results in a further deterioration of the potential of its business, leading to reduced internal resources and increasing the capacity of the firm to stand on its market.

This brings us to the point where the activity is no longer competitive or in any case, has become less profitable and therefore, the entrepreneur goes in search of a potential buyer.
When it’s time to sell or buy a business.

We can say that an activity or even a professional, are in full lowering when going through a phase of crisis, both in terms of its turnover in terms of numbers and also its chance to be competitive on the market profitably, looking obviously things in a future perspective.

And for this, that it become so fundamental the vision and the ability of the entrepreneur to make the right choice at the right time without being involved with the emotional aspects and pressures of various kinds that can compromise the success of a deal.

If we look at the opportunity to purchase an asset from two points of view, namely from the buyer and from the seller and their interest to turn a good deal, we’d have these two distinct situations:

For the seller:

Is more advantageous to sell when the asset has reached its maximum value, ie, just before it starts to lose sales and its competitiveness.

But above all, the sale must be made when the asset is considered by all businesses : ‘a profitable and interesting business in wich to invest’.

In fact, there are many activities that are little known but highly profitable and that although others that are less profitable but are more requests for the purchase only because they are more known and more visible.

The visibility and other factors, significantly affect the determination of market value and the opportunity to make a good sale.

For the buyer:

In contrast with the seller, for the buyer, the best opportunity to buy a business or professional office space for sale occurs when the growth of that particular business is still great and allows for an even longer period of time, to manage with profit that particular activity.

Find an activity to buy: which business to buy.

In the next post, we will write about the perspective from the purchaser, namely: how, where and what business to buy to do a good deal.

Continue.

Undoubtedly, the increase in taxes on houses and the general difficulties which affect the Country, seriously will affect the value of the brick in the future.

Moreover, from some time, the Italian real estate market, suffers from several problems.

On what properties to invest in the next two years in Italy?

If the total market is reduced in value, it becomes even more important to identify the market shares that will remain profitable and then define, on which market segments will be profitable to invest than others.

Taking some analysis that we have already highlighted in the past, the gap more and more evident in the availability of income among people and thus, also in spending power and investment among the major Italian social classes, is increasingly transforming italian society in the direction of : a segment of rich, super rich and affluent and the other, by contrast, a composite group made up of many millions of people who switched from the old ‘middle class’ to new conditions of income than in the past and currently, can not access certain purchases and to some investments like the one on the house.

If until 2007, with easy access to credit for almost everyone, it was possible to buy a property also in the presence of low or modest incomes, now, things have changed completely.

Based on these changes, it needs to review the investment in properties in Italy for years to come.

Why the investment property in Italy will be still interesting for the future?

Despite the increase in tax and maintenance costs that will pour on the property as early as 2012, the investment in bricks and mortar, it will maintain its profitability in the future, provided to identify segments and targeted housing solutions that can easily be put-income .

In the future, fewer and fewer people can afford to purchase a property, and consequently, the demand for leased properties will grow compared to real estate for sale, by implementing a turnaround after several years.

In fact, for decades the Italians have increasingly pointed to the purchase of properties, also concluding ‘preposterous’ mortgages, who are now creating many hardships to their subscribers.

In addition, the Italian population is not set to decline, except in certain geographic areas of the country, where it is necessary to reconsider the investment in bricks and mortar because of greater demand and a collapse of their value for those properties considered to be of quality less and less attractive from investors.

How the housing market, will orient the future?

As in every crisis that respects, there will be a sort of ‘clean’ and evolution towards higher quality real estate products and housing solutions compatible with the new families and new needs of the market that from some years are present but are not always taken into account by builders and investors.

The buildings in which to invest in the future that will maintain an appropriate request, or even, be able to receive an increase in demand, are:

Buildings with disabled access.

All these properties (houses, apartments, commercial properties, etc..) that are compatible and accessible for people equipped with motor disabilities (that are over 10% of the population) and that at the time, these solutions are on the real estate market in an entirely inadequate compared to the current and future demand.

Small apartments.

Properties of small size and low costs (low cost condominium , equipped with indipendent heating, etc..) and for persons and households with low or limited incomes.

The problem of disposable income for millions of Italians, is the element that most will influence the future choices and thus, also the property market itself.

In the second part, we will consider other segments of the real estate market that will govern the crisis better than the brick and will can guarantee investors better in the future.

Continue

We continue from the first part, where we considered the elements that influence the value of a ‘customer base’ held by a company.

We have seen that it is not easy to determine the real value of a customer portfolio held by a business firm or professional study.

They are in fact many variables that influence the customer value of an asset.

Some of these variables are more easily identifiable while others require a more thorough and careful analysis.

How much is a customer package: the overvaluation risk.

Even if you are evaluating the value of customers in a professional study or a in company that has a customer base verifiable, often, you may run into misjudgments when:

there are ‘old customers’ who are no longer strategic for the enterprise;

there are customers are receiving a too much favorable treatment and from the old owner and so, it is absolutely not profitable for the company and consequently, the margins offered by this group of customers are very low;

the customers are not loyal and so, soon, they could leave the company for other competitors;

in the event that the client base and has long been progressively declining and in the future, is expected that will continue the reducing of their number;

customers are mainly related to the person of the old employer and therefore, not loyal to the activity itself, with the risk that they may go away when the old management will over;

they are customers ‘temporary’, that is, they will will remain linked to the firm for a limited time until they reach certain goals and tasks, then, they will leave today’s supplier;

within the group, there are customers that for the type of processing and manufacturing sector, are in great difficulty and is expected in the future, a decline of ‘performance’ by these entrepreneurs;

they are customers ‘ripe’ that they will not grow in terms of turnover in the future. In practice, they are not able to develop new projects and orders from the current level.

Faced with these objections and potential problems, it is essential to handle a possible transition of management that is able to ensure also that the simultaneous transfer of the customer base in its entirety without loss.

The presence and support of the old entrepreneur who sells the customer base, it becomes crucial to monitor this delicate phase of transition.

In the third part, we will hear the testimony from a couple of entrepreneurs who bought the assets and of course, its client base.

From the evaluations of the protagonists themselves, we can compare two different versions and evaluations that are useful to successfully deal with this issue.

Continue.

In the first part, we presented an overview of the requirements that companies and people, when they decide or are considering moving to others countries with ‘lower taxation’ or those areas known as ‘tax free’.

In this second part, we analyze some of those countries that offer advantages to companies and individuals who decide to transfer their residence in those areas.

Transfer the tax  residence: what are the countries where they pay less taxes?

Starting from Switzerland, we remember a resume of affaripropri.com of several months ago, when we analyzed about the opening a business in Switzerland.

http://affaripropri.com/2010/12/delocalizzare-in-svizzera-aprire-unattivita-nei-cantoni-svizzeri-prima-parte/

http://affaripropri.com/2010/12/delocalizzare-in-svizzera-aprire-unattivita-nei-cantoni-svizzeri-seconda-parte/

http://affaripropri.com/2010/12/delocalizzare-in-svizzera-aprire-unattivita-nei-cantoni-svizzeri-terza-parte/

The average level of taxation in Switzerland is around 25% and varies from canton to canton.

The taxation can also lower of respect to this figure if you start a company with staff recruitment in some smaller cantons.

In the three posts that we have linked, you will find much information about.

Transfer the residence in the Principality of Monaco.

In Monaco, there is not any kind of direct taxes.

So, for example, residents do not pay income tax on income and on other rewards that come from abroad.

Therefore, if an entrepreneur sets up residence in Monaco and works with a company in Luxembourg or Ireland for example, will only pay taxes in the states of production (that is, where its activities are located) and NOTHING, will have to pay to the Principality of Monaco.

It is clear that is possible work and live from Monaco and managing a variety of many business that have their headquarters in other countries.

The presence of a set of services (banking, communications, etc..), allows to many businessmen to choose the Principality as a personal residence for live.

Transfer the activities in Moldova, Serbia, Hungary or Bulgaria.

Open a company in one of these countries, it costs a few thousand dollars in addition to which, it must take into account a cost of management accounting.

Furthermore, Serbia and Moldova, as other countries, offer very attractive tax breaks for those who hire workers and ensure an important turnover in its territory.

Serbia, for example, has a tax on the profits of corporations by 10% and the same percentage, is also provided in personal income. Surely, an example of a very attractive proposal.

To this, add a number of other advantages for those invest and create jobs in the area. In fact, there are additional deductions that allow you to extend the exemptions and tax base.

Moldova, for example, provides for a tax on gains around 15%, along with a number of additional exemptions and reductions for companies that develop a turnover above a certain amount.

Bulgaria also has reduced the tax on the profits of capital companies to 10%, calling on its territory even many Greek companies on the run after the economic collapse of the Hellenic Republic.

In Hungary, the same tax is fixed at 12% to allow foreign companies to look with interest to the Hungarian market badly hit by the crisis.

In this first and quick list of countries, we wanted to present an initial overview of the opportunities offered by different realities for its history, size, economy, place both inside and outside the EU.

In the next installment, we will turn our gaze to a series of European and other countries located in other continents in order to continue to compare the proposals that are currently present for solutions of this kind.

Continue.

We spoke again of the value of a business due to its customer base.

The value of a company/business on sale, is often connected to its ‘customer base’ and in the case of a traditional store or a store, it becomes the turn of the regular customers who attend that particular activity.

Calculate the customer value of a business.

Is it possible to determine the total sales activity or other parameters, the value of a customer portfolio?

It is not always feasible, however, it need to investigate the knowledge of several other factors that influence the calculation.

Making the distinction between occasional customers and fixed for a business, it is easier if we take into consideration the analysis of a professional firm, or company that works with industrial orders related to a certain circle of customers who are quite stable .

In fact, through the analysis of invoices addressed to various customers, it is possible to identify the turnover linked to individual customers and then, reconstruct the potentiality that a single customer is able to express in terms of turnover and works contracts awarded to the company.

Rather more difficult becomes the task when we want to understand the value of a business based estimated on customer portfolio for many other types of businesses such as a restaurant or a florist, for example.

In these cases, turnover is often influenced by many customers and even occasional or passing by a whole series of other dynamics that are not always predictable and verifiable.

If it analyze the value of a seasonal business, it changes into an even more decisive.

How much is the value of a business : the evolution and composition of the package customers.

The dynamics that allow the formation and growth of a customer package for a company are important because they allow us to understand how the company has created its customer portfolio over the years and how this important heritage is loyal and stable over time .

Often, the company or professional firm has acquired clients through:

purchase of packages and groups of customers to other companies incorporated / absorbed over time;

with steady growth over time and in a natural manner through the promotion of the business over timethat has allowed the business to grow and be appreciated by a wide audience of customers;

with promotions priced ‘bargain’ and forms’ of aggressive advertising;

other;

It is clear that the way in which a company acquires, manages its customer base, is different and all this, affects the stability and the value itself of its client base, looking to the future.

It is certainly not easy for the buyer to be able to extricate activity throughout this series of evaluations. Some of these, in fact, require a lot of time and the ability to carry out checks and controls that are not always possible in a short time and with the available knowledge.

In the second part, we continue with the analysis of critical issues that can affect the transition and the conducting phase of a business and all those aspects that we have begun to list in this first episode, and therefore, we will continue to analyze more carefully.

Continue.

Taking up a theme that we have dedicated ample space in the past: the investment in agricultural land.

This type of investment, generally has two purposes:

the immediate use of the land through the exercise of an agricultural and / or the combining with other associated activities : management of agritourism, the production of energy from renewable sources (solar, biomass, etc.).

make a long-term investment, with the goal of seeing growth capital value (land) over time;

Why invest in farmland?

In other our post, we highlighted an issue that unfortunately is not now properly highlighted in the media, too busy to present the results of daily spreads and stock prices, that is, how the management of a territory, the protection of its land and of the natural resources, affect the value and stability of a country and the wealth of the same.

In essence, the less availability of good agricultural land and therefore, even productive, is becoming a problem for many economies of several countries, both those of old industrialization than in greater extent for those nations belonging to the ranks of those economies at this time, are experiencing a high growth phase.

Let us now see what are the elements that will push up the growth of the value of agricultural land and consequently, their demand.

Among the factors that affect growth in the value of land at the global level:

the increase in world population;

the improvement of living conditions and individual income for billions of people and consequently, the increase in the consumption of food;

the reduction of space devoted to crops and agricultural practices because of the additional areas affected by overbuilding and pollution / contamination that increasingly affecting those countries that are experiencing strong economic growth (India, China, etc.).

increased consumption of meat, milk and products from factory farming. This, perhaps very little stressed, is affecting a greater extent those countries and cultures (eg China) that until a few years ago, were strangers to certain types of diets.

The intensive farming requires huge amounts of agricultural land available to be used for production of cereals;

the production of biofuels. Of these aspects, we have already spoken several times in our posts.

The demand for fuels and energy in general, tends to grow worldwide and the costs of extraction of oil and gas, as well as the increasing difficulty of these operations, are pushing many governments towards the production of biofuels to meet these needs.

Investing in the land: what kind of investment is it?

This type of investment, is configured as a long-term investment and should be encouraged in particular those areas with good water resources and of course, highly productive, ie, all those agricultural lands that are fertile and easily cultivated with the use of machinery.

The attention that the media today devote to other topics of economic matters, it often do not allows to focus on one aspect such as the value of land and food production in the future, as unfortunately has happened before, will become the object of attention of the markets because of the increasing difficulty of finding them and their costs that will be increasing.

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