Politics and Real Estate

Politics & Real Estate
Just how much influence does the political situation in a country have to do with the value and desirability of the real estate? The answer is like John McCain’s underwear. It depends. It is hard to think about politics when walking on a pristine beach or soaking in a hot spring or playing a few rounds on a gorgeous golf course. The problem comes from the appearance to outside investors.
People don’t really mind paying property taxes, they want to know how much they will be from year to year. Stability is the most important thing any government can do for its real estate industry. The left leaning governments in Latin America have not frightened investors much except for Hugo Chavez. The problem there is the possibility of expropriation by the government. The political leaning is not as much a factor as the lack of stability.
Opportunities for profit abound wherever the outside perceives the political or safety situation to be worse than it actually is. Colombia is a great example of this. Crime is much higher in several countries. The chance of being kidnapped is greater in many countries. The way to assess a market is with your feet. Put them on the ground. Go to some coffee shops and bars. Listen to what people are saying. Identify Market Landmarks.



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