Now You See It, Now You Don’t
I think we all expect to lose a little beachfront and maybe an ice cap or two from climate change. Who would think we can lose a whole country? It might happen in Maldives. The chain of islands (country) is only a few feet above sea level. NPR “Morning Edition” did a feature on it this morning (1/28/08). They say some people have already been moved to other Islands.
During the big Tsunami, there was an instant when the whole country was submerged. Concrete sea walls have been built in some places. They are ugly. Tourism is a major industry in Maldive. Ugly does not draw tourists. In one case they have built an artificial island. This one is a little higher and drier; so it doesn’t need a sea wall.
I found an Island you can buy for only 5,500,000. It is being developed into a resort. Access will be by boat with luxury cabins. The boats will moor in the harbor and serve as a floating hotel. I guess that is fine as long as the beach is above water. Perhaps the boat can just move to another island. Anyone want to put 5,500,000 on the ocean floor?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, January 29, 2008
Sunday, January 27, 2008
International Trade & Wealth (Pt. 6)
International Trade and Wealth (pt. 6)
There has been a lot of whineing lately in the USA about all the jobs that have gone to China and India. Unemployement is the worst in a long time (5%). Many people blame international trade and globalization. These things are here to stay. Blaming them for our ills is like blaming the rain for the effects of a leaky roof.
China is taking manufacturing jobs. Not all but most or them at the lower end of the pay scale. The jobs that are left in that category are the source of much of our illegal immigration problems. The USA is getting an influx of manufacturing jobs from Germany and the UK because wages are so high there.
India is taking IT and customer service jobs. We are losing those jobs as much because of our educational systems here as because of lower costs. Many of these jobs require technical abilities our people don’t have. The people who do have the skills for these jobs are employed at much higher wages than that type of work would pay here. Importing and Outsourcing enable those who do have a job to live better more cheaply. This is really important in a society where 80% of the population is making less than they were 8 years ago.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
There has been a lot of whineing lately in the USA about all the jobs that have gone to China and India. Unemployement is the worst in a long time (5%). Many people blame international trade and globalization. These things are here to stay. Blaming them for our ills is like blaming the rain for the effects of a leaky roof.
China is taking manufacturing jobs. Not all but most or them at the lower end of the pay scale. The jobs that are left in that category are the source of much of our illegal immigration problems. The USA is getting an influx of manufacturing jobs from Germany and the UK because wages are so high there.
India is taking IT and customer service jobs. We are losing those jobs as much because of our educational systems here as because of lower costs. Many of these jobs require technical abilities our people don’t have. The people who do have the skills for these jobs are employed at much higher wages than that type of work would pay here. Importing and Outsourcing enable those who do have a job to live better more cheaply. This is really important in a society where 80% of the population is making less than they were 8 years ago.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, January 24, 2008
The Sub-Prime Crisis and the Rental Home Market
The Sub-prime Crisis and the Rental Home Market
Charlotte does not seem to be affected quite as much as the rest of the country by the current housing slump. We have about 80,000 people a year coming here. I am sure that as the banks start laying people off we will get hit. The rental market has improved dramatically. Our company works the middle of the market, renting mostly to middle class tenants. We have found that our homes rent almost as soon as they are ready for occupancy.
I have a friend who does mostly lower end properties. He says that the rental market for him is the best it has ever been. I have not spoken to anyone in the higher end rentals or anyone who does the executive (fully furnished short term) homes. I don’t know how well that market is doing.
The rental market got really bad at about the same time that credit got really easy. Many people that we had turned down for rental or evicted were able to buy homes with 100% financing plus enough cash to pay off their credit cards so they could qualify for the loans. In the middle of that mess, were opportunist who were buying properties for resale. They would “fix them up” with cheap materials and poor workmanship and find a crooked appraiser and a crooked loan broker. Why do we have a foreclosure crisis?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Charlotte does not seem to be affected quite as much as the rest of the country by the current housing slump. We have about 80,000 people a year coming here. I am sure that as the banks start laying people off we will get hit. The rental market has improved dramatically. Our company works the middle of the market, renting mostly to middle class tenants. We have found that our homes rent almost as soon as they are ready for occupancy.
I have a friend who does mostly lower end properties. He says that the rental market for him is the best it has ever been. I have not spoken to anyone in the higher end rentals or anyone who does the executive (fully furnished short term) homes. I don’t know how well that market is doing.
The rental market got really bad at about the same time that credit got really easy. Many people that we had turned down for rental or evicted were able to buy homes with 100% financing plus enough cash to pay off their credit cards so they could qualify for the loans. In the middle of that mess, were opportunist who were buying properties for resale. They would “fix them up” with cheap materials and poor workmanship and find a crooked appraiser and a crooked loan broker. Why do we have a foreclosure crisis?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Wednesday, January 23, 2008
The Ripple Heard 'Round the World
The Ripple Heard ‘Round the World
I think it is commendable (in most cases) when people see challenges as opportunities. Unfortunately Mr. Bush always sees the economic challenges facing the USA economy as another opportunity to enrich his friends and supporters. His stupid (sorry, that’s the best way to describe it) economic recovery plan has so shocked financial interests around the world as to cause all of the financial markets to shrink in horror.
I hope this does not make me look as horrible as George Bush; but I also see this challenge as an opportunity to enrich my friends. I realize that I am basicly powerless to control macro financial events. I cannot change the wind. I can change the set of my sails. Ever since George Bush came to office we have had one stock market crisis after another. The reduction in yield and increase in price of real estate is a direct result of the fear of loss generated by uncertainty in the stock market. The current stagnation in the housing market in the USA is a by-product of stock market events. Commercial real estate prices seem to be holding up pretty well.
I recommend (in most cases) that any one who owns commercial or international real estate right now should hold it and buy more. The price can only go up as the stock market gets scarier and the world population grows in number and affluence.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
I think it is commendable (in most cases) when people see challenges as opportunities. Unfortunately Mr. Bush always sees the economic challenges facing the USA economy as another opportunity to enrich his friends and supporters. His stupid (sorry, that’s the best way to describe it) economic recovery plan has so shocked financial interests around the world as to cause all of the financial markets to shrink in horror.
I hope this does not make me look as horrible as George Bush; but I also see this challenge as an opportunity to enrich my friends. I realize that I am basicly powerless to control macro financial events. I cannot change the wind. I can change the set of my sails. Ever since George Bush came to office we have had one stock market crisis after another. The reduction in yield and increase in price of real estate is a direct result of the fear of loss generated by uncertainty in the stock market. The current stagnation in the housing market in the USA is a by-product of stock market events. Commercial real estate prices seem to be holding up pretty well.
I recommend (in most cases) that any one who owns commercial or international real estate right now should hold it and buy more. The price can only go up as the stock market gets scarier and the world population grows in number and affluence.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Monday, January 21, 2008
Insurance on Foreign Properties
Insurance on Foreign Properties
In the USA and Western Europe, insurance is pretty much taken for granted. In much of the world property owners are not so fortunate. Even where property insurance is available it often excludes things like flood, wind or earthquake damage. Title insurance is also unavailable or very expensive in some places.
In the USA flood insurance is underwritten by the Federal Government. There are some conditions on a property owner’s eligibility to purchase this insurance and damage from wind may be excluded. Wind is usually covered under the standard fire or homeowner’s insurance. Earthquake insurance has to be purchased separately.
When one goes to a country like Nicaragua or The Virgin Islands, damage is often still evident from events that happened many years previously. This is because there is no insurance to cover the cost of repair and the owner may not have the wherewithal to make these repairs. Always check the availability and cost of insurance and the protection that the particular policy affords before contracting to buy any property.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
In the USA and Western Europe, insurance is pretty much taken for granted. In much of the world property owners are not so fortunate. Even where property insurance is available it often excludes things like flood, wind or earthquake damage. Title insurance is also unavailable or very expensive in some places.
In the USA flood insurance is underwritten by the Federal Government. There are some conditions on a property owner’s eligibility to purchase this insurance and damage from wind may be excluded. Wind is usually covered under the standard fire or homeowner’s insurance. Earthquake insurance has to be purchased separately.
When one goes to a country like Nicaragua or The Virgin Islands, damage is often still evident from events that happened many years previously. This is because there is no insurance to cover the cost of repair and the owner may not have the wherewithal to make these repairs. Always check the availability and cost of insurance and the protection that the particular policy affords before contracting to buy any property.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Sunday, January 13, 2008
Economic Indicators
Economic Indicators
A presentation on the USA economy by Wachovia Corportation In Jacksonville Fl, recently predicted that we would avoid a recession. They said that if the housing market were not included growth this year would be 2.5 %. The article I read went on to state that there is a little more than 50% chance that the USA economy would avoid recession. That means there is almost a 50% chance that we will have a recession.
George Bush submitted a budget to congress a couple of years ago that did not include spending for Iraq. Consumer prices have not risen much if you don’t count energy or food. How much of those are you willing to do without? The only thing that an economic survey that leaves out crucial sectors is good for is a laugh. I could say that I have always been completely faithful to my wife if you don’t count my three mistresses and my boyfriend.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
A presentation on the USA economy by Wachovia Corportation In Jacksonville Fl, recently predicted that we would avoid a recession. They said that if the housing market were not included growth this year would be 2.5 %. The article I read went on to state that there is a little more than 50% chance that the USA economy would avoid recession. That means there is almost a 50% chance that we will have a recession.
George Bush submitted a budget to congress a couple of years ago that did not include spending for Iraq. Consumer prices have not risen much if you don’t count energy or food. How much of those are you willing to do without? The only thing that an economic survey that leaves out crucial sectors is good for is a laugh. I could say that I have always been completely faithful to my wife if you don’t count my three mistresses and my boyfriend.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, January 10, 2008
FITA A Great Place for Information
FITA A Great Place for Information
Looking for tax information on another country? How about a job in international business? Would you be interested in detailed information on how business is done in some other country? What you need is just a mouse-click away at http://fita.org/. You can subscribe to their email newsletter and get any new information sent to you every week or so. You can go to their web page and find almost any thing that sparks your interest.
The most recent newsletter was on Japan. It had links to the most up to date information on that country, complete with an assessment of the economy and a concise historical background on the countries condition. The newsletter also has a lot of other really great links to provide a starting place for any research you may be doing.
I received an email from someone who read this blog. It was really gratifying to know that someone actually does. They have what sounds like a really great property for sale in Kissimee Fl., that may have international appeal. I will be happy to share the information with anyone who is interested.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Looking for tax information on another country? How about a job in international business? Would you be interested in detailed information on how business is done in some other country? What you need is just a mouse-click away at http://fita.org/. You can subscribe to their email newsletter and get any new information sent to you every week or so. You can go to their web page and find almost any thing that sparks your interest.
The most recent newsletter was on Japan. It had links to the most up to date information on that country, complete with an assessment of the economy and a concise historical background on the countries condition. The newsletter also has a lot of other really great links to provide a starting place for any research you may be doing.
I received an email from someone who read this blog. It was really gratifying to know that someone actually does. They have what sounds like a really great property for sale in Kissimee Fl., that may have international appeal. I will be happy to share the information with anyone who is interested.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, January 8, 2008
Good News from Panama
Good News From Panama
I have to thank my good friend Manfred Chemek from Manhelm International http://www.manhelm.com for this information.
One of the big benefits for people buying in Panama has been the 20 year tax holiday for people buying new homes. There was also a 30 year property tax holiday for people buying properties in the “Re-Constituted Areas”. These are the lands that the USA government had been leasing during their operation of the Panama Canal. The 30 year holiday expired some years ago. The 20 year holiday did not expire until August of 2007.
Manfred has informed me that this 20 year tax holiday was renewed to include homes built before December 31, 2009. Panama has many other tax benefits and has been one of the least corrupt and most transparent governments in the world for some time. Panama City is a gleaming modern city, surrounded by beautiful natural areas. Panama has to preserve it’s forests because they provide the watershed for the canal. Most of the country provides this watershed and is environmentally protected.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
I have to thank my good friend Manfred Chemek from Manhelm International http://www.manhelm.com for this information.
One of the big benefits for people buying in Panama has been the 20 year tax holiday for people buying new homes. There was also a 30 year property tax holiday for people buying properties in the “Re-Constituted Areas”. These are the lands that the USA government had been leasing during their operation of the Panama Canal. The 30 year holiday expired some years ago. The 20 year holiday did not expire until August of 2007.
Manfred has informed me that this 20 year tax holiday was renewed to include homes built before December 31, 2009. Panama has many other tax benefits and has been one of the least corrupt and most transparent governments in the world for some time. Panama City is a gleaming modern city, surrounded by beautiful natural areas. Panama has to preserve it’s forests because they provide the watershed for the canal. Most of the country provides this watershed and is environmentally protected.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Sunday, January 6, 2008
The Time to Buy
The Time to Buy
An old real estate saying is: “The time to buy is when the blood is in the streets.” I pulled up some real estate listings in Baghdad, Iraq just to see what you can get for your money when “the blood is in the streets”.
I found a building near the Hanging Bridge with 17 flats and 5 shops that sells for $550,000 US. I don’t have a point of reference to judge the price; but it seems cheap. It is also a “for sale by owner”. This tells me the price probably has significant room for negotiation. The second rule of international business is “Capital flows to the highest yield with the lowest risk”. What kind of yield would someone expect in a place like Baghdad?
Baghdad is one of the worlds major cities. How far fetched is it to assume that one day real estate prices will match those in other major cities? What will one have to endure in the meantime? Is property there something you can just buy and turn over to local management and just not worry about it for a few years? What will be the market landmark that indicates a turnaround in the situation in that country? What other places may offer similar opportunities?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
An old real estate saying is: “The time to buy is when the blood is in the streets.” I pulled up some real estate listings in Baghdad, Iraq just to see what you can get for your money when “the blood is in the streets”.
I found a building near the Hanging Bridge with 17 flats and 5 shops that sells for $550,000 US. I don’t have a point of reference to judge the price; but it seems cheap. It is also a “for sale by owner”. This tells me the price probably has significant room for negotiation. The second rule of international business is “Capital flows to the highest yield with the lowest risk”. What kind of yield would someone expect in a place like Baghdad?
Baghdad is one of the worlds major cities. How far fetched is it to assume that one day real estate prices will match those in other major cities? What will one have to endure in the meantime? Is property there something you can just buy and turn over to local management and just not worry about it for a few years? What will be the market landmark that indicates a turnaround in the situation in that country? What other places may offer similar opportunities?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, January 3, 2008
Happy New Year
Happy New Year
Winter has finally come to North Carolina. I am not worried about global warming today. Last night the temperature dropped to 19 degrees fahrenheit. Tonight it is supposed to go to 17. I am thinking about warmer climates. The rollover of the year pins me to my desk doing paperwork for property management. My heart has already moved south.
I imagine a lot of people are feeling the same way right now. There are a lot of sunny beaches that stay that way year round in Central America and the Carribean. In South America it is summertime. The first time I went to Chile, it was September. I was really excited to see the spring flowers blooming. I walked around Santiago in my shirt sleeves. We visited a ski resort in the mountains and almost go snowed in.
Are you thinking about warmer climates? I can help.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Winter has finally come to North Carolina. I am not worried about global warming today. Last night the temperature dropped to 19 degrees fahrenheit. Tonight it is supposed to go to 17. I am thinking about warmer climates. The rollover of the year pins me to my desk doing paperwork for property management. My heart has already moved south.
I imagine a lot of people are feeling the same way right now. There are a lot of sunny beaches that stay that way year round in Central America and the Carribean. In South America it is summertime. The first time I went to Chile, it was September. I was really excited to see the spring flowers blooming. I walked around Santiago in my shirt sleeves. We visited a ski resort in the mountains and almost go snowed in.
Are you thinking about warmer climates? I can help.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
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