International Trade & Wealth (pt. 5)

International Trade & Wealth (Pt. 5)

What is really important to us is “how does international trade affect real estate?”

The most obvious things of course are probably all of the imported items in any buildings that are built. In the USA a large portion of our lumber comes from Canada. Many of our fine wood items come from South America and Asia. The furniture comes from China. The cost of these items is held down by international competition. Some items of course are just things we could not have unless they were imported.

International traders and companies that operate businesses outside of their own countries are major users of real estate. Wherever a country touches the rest of the world is a major development point. Look at the areas around ports and international airports. Huge distribution centers spring up everywhere. There will also be manufacturing facilities that take advantage of the proximity to the transportation hubs. These places create jobs. They also bring in foreign workers who buy or rent homes.

Banking has gotten to be a huge industry largely because of the need to move money across national borders but also because of differences in national tax laws. Banks occupy a lot of office space. Their employees make a lot of money and occupy nice homes.

The travel people engage in for business creates an awareness that the countries outside of their own are not fearful environments. They learn to enjoy other cultures and other places. As their experience level grows so does their comfort level. 2nd homes in other countries becomes more desirable.


David Segrest is a REALTOR in Charlotte NC. His website is http:www.segrestrealty.com .