Global Real Estate:Local Markets
INTRODUCTION2
Course Overview
1.How the Global Economy Shapes Your Market
2.Your Hometown Global Market
3.Cultural Literacy for Business
4.Serving the Global Market
5.Networking Power
6.Planning>Action>Results3
Exam and Activities
• 30-question exam– Open-book– Multiple-choice
• Activities– Group
assignments– Exercises– Discussions
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Earning the CIPS Designation
• Global Real Estate: Local Markets (all students)• Global Real Estate: Transaction Tools (U.S. students)• The Business of U.S. Real Estate (Non U.S. students)• Three elective courses:
– Europe and International Real Estate– Asia/Pacific and International Real Estate– The Americas and International Real Estate– At Home with Diversity (U.S. students)
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Earning the CIPS Designation
• One of the following courses can count as one elective option:– CRS 200 – Business Planning and Marketing for the
Residential Specialist– CRS 204 – Creating Wealth through Residential Real
Estate Investments– CCIM - Residential Real Estate Financial Analysis– One Real Estate Advanced Practices (REAP) module
from the Council of Residential Specialists (CRS) (Non U.S. students)
• International real estate experience- – 100 Points
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Self-Assessment: Are You Already Global?
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CHAPTER 1: HOW THE GLOBAL ECONOMY SHAPES YOUR MARKET
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In This Chapter
• Global economy, local real estate markets• Global flow of capital and wealth• Real estate as an investment• Trends and indicators
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Global Economy, Local Markets
• Global economic forces impact your business
• Real estate is a storehouse of wealth• Which indicators and trends should you
monitor?• Design a personal data plan
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A Shrinking World?
• Spread of capitalism • New wealth seeks
opportunities and safety in real estate
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Most Stable and Secure
13Source: Association for Foreign Investors in Real Estate
Best Capital Appreciation
14Source: Association for Foreign Investors in Real Estate
Alliances
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NAFTA
MER
COS
UR
APEC
APEC
ASAEN
GAFTACOMESA
E.U.
Connectivity—Internet
16Source: Internet World Stats
Connectivity—Facebook
17Source: Internet World Stats
Round-the-Clock Financial Markets
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FTSE 100 London
Hang SengHong Kong
DAX Frankfurt
CACParis
NikkeiTokyo
Dow, S&P500, NASDAQNew York
Interdependence and Specialization
• Advantage: economic efficiencies and benefits
• Disadvantage: dependence on other countries
• Workers’ remittances = 3x official government foreign aid
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Ease of Travel
• Affordable airfares • Convenient flights to hub
cities and resorts• Immigrants maintain
homeland ties• U.S. expatriate retirees
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Twenty-first Century Workforce
• Global businesses and their workers enter new markets
• Remote workers choose to live and work apart from company offices
• Entrepreneurs start businesses from anywhere in the world
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Capital—What Flows?
• Currency• Assets• Capital goods• Debt
• Credit• Information• Technology• Innovation
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Capital Seeks:Acceptable risk/returnFavorable ROIQuality propertiesAffordable and available creditOrderly, transparent markets
Capital Flees:Falling returns and values
Ownership restrictions Movement restrictions Tight, expensive credit
Capital Flow Theories
• Bargain Rate Theory• Loss Avoidance Theory• Market Linkage Theory
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Staying in the Know
• Select, monitor, compare key indicators
• The Economist, Financial Times, Wall Street Journal
• Government Web sites• NAR Economists’
Outlook
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Indicators
• GDP• Employment• Consumer Price Index • Labor Productivity • Retail Sales • Exchange Rates • Interest Rates
• Flow of Funds• Mortgage Rates • Imports, Exports, and
Trade Balance• Direct Investment
Abroad• Foreign Direct
Investment
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Key Point Key Point ReviewReview
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