|
|
|
| |
- Attracting Investors in U.S. Real Estate Increasingly Difficult
- Who Financed Your Mortgage?
- European Investor Eyes on Paris
- Politeness the Rule with Japanese
- "Truth in Advertising" Goes Hand-in-Hand with "Honesty is the Best Policy"
- Panama #1 Retirement Haven
- International Accounting Standards Boost Value of Swedish Holdings
- Spam or Business Inquiry? Let the Internet Help!
- New Diversity Resource from NAR
| |
|
|
As the "degree of difficulty" in finding attractive real estate investment opportunities increases, foreign investors are losing their appetite for U.S. real estate. According to the results of a survey of members of the Association of Foreign Investors in Real Estate (AFIRE) while overall spending will increase both globally and in the US, they will reduce the U.S. percentage of their total global real estate acquisitions from 71 percent in 2004, to 55 percent in 2005, and invest a greater percentage of their portfolios in an ever-widening global arena that includes Japan, Eastern Europe, and Australia. The 13th annual survey was conducted by Kingsley Associates among AFIRE members who collectively have nearly $300 billion invested globally. Read the full press release from AFIRE on the reduction of U.S. foreign investment:
| |
|
Is the growing influx of foreign money into the mortgage-backed securities market good or bad for America? Some experts say good; others say bad. China's central bank has led the recent surge in demand from Asia of investors buying packages of mortgages from U.S. financial institutions, which add to the pool of capital available for Americans to finance their homes. The non-U.S. investor in the mortgage market has helped keep mortgage rates lower than they would be without their presence. It means that American homeowners end up paying a little less to own a home. The flip side, say some economists, as reported in a February 25 article in the Washington Post, is that foreign investors are financing "consumption," rather than investment in such things as plants and equipment, which generates the production of goods for export needed to help shrink the trade gap. Read both perspectives (requires free registration/log-on to WashingtonPost.com).
| |
|
A survey from the Urban Land Institute and Pricewaterhouse Coopers found Paris to be the top European property investment market to watch in 2005. The survey of 270 real estate industry players also found that 87 percent believe that property will outperform other investment markets this year, including equities and bonds. Paris was declared the most attractive market because of its diversity, low vacancy rates, and rising office occupancy rates. Milan was ranked second, followed by London, Lyon, and Brussels. The survey found that Athens and Dublin were the top markets to sell, and Helsinki, Warsaw, and Budapest were listed as attractive buys. High-risk investors listed Istanbul and Moscow as their top choices for property investment. Shopping centers are expected to bring the best returns in 2005, followed by retail parks, warehouses, and residential properties. Read the full story.
|
|
|
|
"Amae," which means respect, indulgence, and concern for another is the basis for relationships in Japan. The Japanese take great pains to appear polite and to spare others any pain. This can create confusion when doing business with foreigners, however. Rather than a clear "no" to an offer or proposal, Japanese may respond with "We'll think it over." Similarly, they may not ask follow up questions if information presented was not clear, as this considered rude behavior. Instead a smile may indicate a lack of understanding. When doing business with Japanese, keep in mind that surface politeness pertains to maintaining harmony and is not necessarily an indication of willingness to do business. Source: CIPS: Asia and Pacific Real Estate Course.
| |
|
A Norwegian professional real estate investor who grew tired of overly optimistic property advertisements opted for blunt honesty when he offered an apartment for sale on a Norwegian advertising website Norwegian advertising website in February. "Gruesome two-bedroom apartment with balcony," the ad read. "A very worn-out apartment." Arne Leo Soerlie said he had wasted so much time because of advertisements that focused only on the positive aspects of a property that he wanted to be truthful and spare potential buyers the same irritation. The advertisement worked; Soerlie reports he received offers on the property. Source: The Associated Press
|
|
|
|
For the fourth year running, Panama was named the top retirement destination for U.S. citizens by International Living. U.S. expats list the close proximity to the U.S., low cost of living, real estate bargains, friendly locals, and the country's beautiful and temperate climate among the reasons for its top ranking. Panama was followed by France in second place and Nicaragua coming in third. According to International Living, a luxury three-bedroom apartment in downtown cosmopolitan Panama City (with parking, a pool and an ocean view) can be found for $100,000. Real estate accounts for 15 percent of the weighting of International Living's annual survey (culture, safety/stability, climate, and infrastructure are among the other weighted categories. Countries with higher real estate rankings (but lower overall scores) included Nicaragua, Romania, New Zealand, Mexico, Ecuador, Malaysia, Poland, Uruguay, and South Africa.
| |
|
Sweden's real estate market is off to a strong start in 2005. Danish investment firm Keops AS acquired a 30,000 square meter shopping center outside the city of Malmo for US$90 million in January, while Swedish firm Akelius Fastigheter AB bought residential properties in Vasteras and Goteborg for a total of US$71.6 million. The switch to international accounting standards across Europe may also prompt a wave of property sales across the country, as owners seek to capitalize on real estate book values shooting up to match market values. As of January 1, 2005 publicly traded companies throughout Europe must offer a fair valuation of property assets on their balance sheets, instead of relying on outdated book values. Real estate companies with large holdings are expected to sell their assets to generate cash flow, taking advantage of the new standards, according to Mats Crowe of Aberdeen Property Investors in Stockholm. The switch to the new accounting standards will be a driver in Sweden's market for the next two to three years, said Magnus Lange of Cushman & Wakefield Baker & Healey. Information about the International Accounting Standards is available at IAS Plus.
|
|
|
|
|
|
If you receive an e-mail written in a foreign language, don't automatically assume it's spam. NAR's affiliation with the International Consortium of Real Estate Associations (ICREA) means that the e-mail address you provide to NAR may also be accessible to brokers at ICREA's website, www.WorldProperties.com (broker contact information is available in a searchable database at the "member's only" portion of the site). If no one in your office reads the e-mail language, try dropping some or all of the message into an online translator. While not perfect (and not suitable for serious business communication), it may give you some idea of the e-mail content so you can decide whether to pursue having it formally translated. One such online translation source is AltaVista's Babel Fish.
| |
|
NAR's Information Central has just received a new resource for REALTORS® looking to enhance their opportunity for career success by understanding the fundamentals of working in a diverse marketplace. "Embracing Diversity" by Beverly Rokes covers such topics as cultural roadblocks and conflicts, communicating around the world, and legal/ethical issues, A reference tool for the experienced professional, those re-entering the workforce and those beginning their careers. Request this book from NAR's Information Central.
|
Report compiled by NAR International Operations, narglobe@realtors.org.
To unsubscribe, click the link below. |
| | |
| |
|
| |
|
|
