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Interview with Mr. Shi Shixian, Partner of Peggy Fucci
Question 1: As a director of the US-based real estate service brokerage company, Huanshi International Real Estate, how do you view the Chinese economy, Chinese investors, and overseas real estate markets?
Answer one: First of all, I (Peggy Fucci - chairman) have been in China for more than five years. The first thing that surprised me was the persistence and growth of China's economic development. I feel very deep. In the first five years, China has developed very well. Now it is the second highest in the world. China is likely to surpass the United States in the future and to go first in the world. In my opinion, this is very good for the economic development of the world, because more and more Chinese investors are investing overseas.
Based on this, I always wanted to establish a company in China. This is what I always wanted to do. Now is the time. As the Chinese economy continues to grow, more Chinese investors have many options for return on investment and direction. Over the years, the return on real estate investment in the United States has remained stable, and there is also a relatively double chance of return. I think Chinese investors are aware of this opportunity and are keen and very smart. The American investment markets that investors were more concerned with before, such as: New York, California, especially the more normative markets. However, investors now see that the better market is in Florida, where our headquarters is located. Investors saw the high rate of return and high value of this market investment compared with other Chinese cities' real estate prices and investment returns. For example, the unit price of square meters in Beijing, Shanghai, and other Chinese provinces is very high. Real estate in the United States has a higher price/performance ratio as an investment. The real estate assets of the United States are permanently held; and where people need to live in a house; whether in the short or long term, they can prove the value of their investment and a higher return on investment and its stability.
Question 2: In Florida, what proportion of real estate projects your company represents is for Chinese investors? Although most of the Chinese investors invest in the United States, they still choose to work and live in the country. Does the company have a large-scale professional team for post-investment, post-investment management and property management, or will it entrust other companies to run post-investment management? Where does your company have advantages? If there is a dispute between the investor and the property management party, etc., Does your company have a sound and mature solution?
Answer 2: This is a very good question and one of the reasons why we set up our company in China. First, as a well-known senior real estate company in the United States, our team has brought many valuable resources and integrated management system solutions to Chinese investors, providing investors with more professional value-added services. I have been a real estate agent in Florida for 20 years. In 2008, I set up the company, and it has been ten years since. Secondly, the company has always been an agent developer project. Our advantage is to provide investors with professional advice, precise services, and a variety of system solutions. Our team has professional departments to provide leasing consulting services and provide after-investment. The late-stage management services meet the various needs of investors. As for the question of what percentage of housing is for Chinese investors, we decided that the Chinese company on the ground will represent the Paramount Miami World Center, the second largest high-rise project in the United States. Investors are the third most important target customers for this project. We can represent the second largest high-rise project in the United States based on years of industry credibility and reputation, as well as the accumulation of professional teams and experience. It also stems from the deep cultivation of the Chinese market over the years, and has a good communication with Chinese investors, and now finally has Feedback. If we need to come to China five times a year, then we feel that it is better to establish a company here to provide direct face-to-face services. Investors can go to the company for consultation, colleagues can answer questions and provide more seamless consulting services; there is no other intermediary Investors can intuitively and directly understand the project and let them experience our professional services. They feel very comfortable. At the same time, they can also feel our sincerity and commitment to Chinese investors so that their investment can be maximized. Good returns help them make the best decisions.
Question 3: Will your company currently represent many home purchase projects in Florida? Also, based on China's huge market and investors scattered in different regions, do you have plans to cooperate with Chinese companies or to delegate the project's Chinese agency to China has strong companies? It is understood that other overseas companies have adopted such cooperation.
Answer 3: Real estate investment is a long-term investment. At present, we sell the Paramount Miami World Center project. This residential project is not just suitable for investment in home ownership. For the investment value of long-term residential projects, the general return on investment may reach 11%; and the location of this project is in the center of Miami, where investors can see the development and potential of the entire city, so we have different The advantages of the project will have corresponding strategies. In many cases, our Chinese investors or overseas investors who purchase these assets take into account the possibility of the child’s future, the situation of education in the United States, the security surrounding the project, and the convenience of transportation. There is no need to drive in the city center. The project is close to the subway station and can reach the University of Miami directly. Therefore, this project is easy to sell successfully. Our company also represented other high-quality projects, such as the new YotelPad project, which is characterized by a good average return on investment, which can reach around 8% annually. At present, we will focus on the sales and services of self-constructed teams. We may consider cooperation with powerful Chinese companies in the future.
Question 4: May I ask about the current Paramount Miami World Center project that is expected to take three years to develop, if it is to be promoted to investors, what price will be set, and the return on investment in the United States will be higher? What are the advantages compared to other Miami projects?
Answer 4: I (Mr. Shi Yaoxian - Partner) supplemented by Ms. Peggy's reply, I think Chinese investors purchase US property for many reasons: First, investors want to settle or invest, investors are very clear about their purpose and clearly Know how they choose to invest. In particular, the first-tier cities in the traditional investment market, such as Manhattan, New York, Los Angeles, or California; Florida is the second most populous state in the United States with a very livable climate and environment, except for Chinese investors and Americans. There are many other national investors in addition to the purchase of real estate. Chinese investors are also very clear that this will be a good investment opportunity, so Chinese investors have so much investment demand.
To answer your other question, I think from the macro perspective, we will provide strategic, multi-element, and all-round strategic investment options for Chinese investors or any national investors or developers. The project selected by us will be more in line with the needs and requirements of Chinese investors. I think we have provided good investment opportunities as well as professional investment assistance and good team services.
Question 5: I would like to ask that China is very strict about foreign exchange control. It is difficult for investors' RMB funds to be paid abroad. On the one hand, investors will consider the rate of return on investment and the total amount of investment in investment projects, and there is also an important one. The factor is how to achieve compliance and convenient overseas investment. For this, is your company having a good solution?
Answer 5: I think many investors are very concerned about this issue. First of all, we must abide by the laws of the country. Our main target group of customers are some Chinese investors who already have funds overseas and they are also looking for such real estate investment projects that we represent. The company will not spend a lot of time or effort. Assisting Chinese investors in resolving the issue of exchange swaps. However, we can provide Chinese investors with overseas loan services for the acquisition of real estate. This is relatively convenient and a way to solve the problem of foreign exchange, so your RMB funds will remain in China. Hope this answers your question. In addition, from the perspective of developers, it is very easy to pay deposits. Our company does not participate in the payment of these deposits. Everyone has their own different financial systems. However, if investors have needs, we will provide consulting services.
Question 6: How many Chinese people currently live in Florida?
Answer 6: I (Peggy Fucci - Chairman) estimate that there are about 100,000 Chinese now living and working in Florida, but some of them live in Brazil, which can reach 500,000 people. They do business in Florida, stay here temporarily, and children study here, so they choose to buy their own property here, but they are not often inhabited. This is also a good direction, especially since we are now setting up a company in China. It is said that there will be direct flights to Florida recently, which will also attract more Chinese people to understand the market here. Investment in real estate is now not only the market for traditional investment. The city where our project is located is equivalent to Hong Kong in the West. Its geographical location is superior to that of the school. This is a very attractive investment for Chinese investors. They are not only investing in the United States, but they can also live and live, and the budget for home ownership can also meet the budget of Chinese investors. As a connecting bridge, our company has a complete service system that can meet the needs of Chinese investors.
Question 7: Will the YotelPad agent of your company represent this project, which types of rooms will be introduced at present? How much will the pricing be?
Answer 7: This is a high-quality investment project. Our Shanghai office already has a real estate model for this project. We have not yet officially promoted in the U.S. market, but we have chosen to give priority to the launch of this project in China and recommend to VIP customers and some partners of Chinese investors. The YotelPad project has world-class brands and has development projects in many countries including New York, San Francisco, France, the United Kingdom, Dubai, and Singapore. Now that this project is sited and developed in Miami, tenants can choose from multiple accommodation options that investors can rent out. The apartment unit of this project is relatively small, the total purchase price is relatively low, the location is good, and the living is convenient. There are only three intersections from the city center. In addition, the Paramount Miami World Center project has an average unit price of 1.2 million U.S. dollars, while the YotelPad project has a total unit price of 250,000 to 500,000 U.S. dollars. The room type ratio is small, ranging from about 45 to 65 square meters.