Oil, Agriculture and Real Estate
Land, like any other income producing property, is priced according to the income it produces. As the high cost of oil and available tax incentives induce normally reasonable people to do unreasonable things like burning up their food to power their SUVs, the price of agricultural commodities are skyrocketing. This increases farmer’s profits and thus increases the value of the land.
How long will it be before the governments in countries like Venezuela see foreigners taking away their “national heritage” in the form of corn, soybeans and sugar cane. In most of the civilized world, property rights are inviolable. Even in nominally communist countries like China, property rights are being strengthened as the economy grows. Look at the economies of the countries where property rights are protected. Look at Venezuela and Zimbabwe.
Lula, in Brazil, is a socialist; but he realized that in order to boost the well-being of the poorer parts of his society, he would have to boost the economy. He has done this by protecting and enhancing property rights and guarding the security of investments in the country.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, April 29, 2008
Monday, April 28, 2008
Pardon my Soapbox
Pardon my Soapbox
As I prepare for another trip to Romania and Bulgaria, last years nightmare caused by Orbitz and Lot Polish Airlines is still fresh in my mind. I can halfway forgive Lot Polish, my trip home was nice. The little Nazis at their ticket counter in Newark and the errors and inaccessibility of Orbitz still burn.
It cost me an extra $1800 to get to my destination. USAir was 15 minutes late. The Nazis would not let me on the plane, nor would they help me rebook. Try to call Orbitz sometime. They are a cyberspace illusion. After letters to both airlines, Orbitz and the FAA, Lot Polish agreed to give me back $442 for the segment I did not fly. That’s better than a swift kick between the legs. There’s a catch. They sent the money to Orbitz to refund to me.
This was in September, I am still begging them for the money. They acknowledge having it. They just don’t send it to me. Accept this as a fair warning. Any company dealing in millions of dollars of tickets every day that can’t afford to send out $442 may be on the verge of bankruptcy. What will your Orbitz tickets be worth if this happens?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
As I prepare for another trip to Romania and Bulgaria, last years nightmare caused by Orbitz and Lot Polish Airlines is still fresh in my mind. I can halfway forgive Lot Polish, my trip home was nice. The little Nazis at their ticket counter in Newark and the errors and inaccessibility of Orbitz still burn.
It cost me an extra $1800 to get to my destination. USAir was 15 minutes late. The Nazis would not let me on the plane, nor would they help me rebook. Try to call Orbitz sometime. They are a cyberspace illusion. After letters to both airlines, Orbitz and the FAA, Lot Polish agreed to give me back $442 for the segment I did not fly. That’s better than a swift kick between the legs. There’s a catch. They sent the money to Orbitz to refund to me.
This was in September, I am still begging them for the money. They acknowledge having it. They just don’t send it to me. Accept this as a fair warning. Any company dealing in millions of dollars of tickets every day that can’t afford to send out $442 may be on the verge of bankruptcy. What will your Orbitz tickets be worth if this happens?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, April 22, 2008
Bargain Vacation in Europe?
Bargain Vacation in Europe?
That may sound impossible. It is not. Try the Golden Sands Resort in Varna, Bulgaria. You can get an ocean view room for 20 Euros per night. The room is quite nice. The breakfast is to die for. The beach is absolutely beautiful. The restaurants on the beach and in the town are economical. There are a lot of local attractions all around.
The combination of mountain and beach goes together well. When you visit eastern Europe you are going someplace that is different from any place you have ever been. Better hurry though. It will not last. Bulgaria is a country where history stopped for 40 years; but they are catching up fast. There are craft fairs and traditional dancers that dance on fire. The items in the craft fairs are things that you will never see elsewhere.
The only real problem is getting there. The cheapest fare from Charlotte that I have found was about $2500. If you stay a week it is still the cheapest vacation in Europe. Enjoy.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
That may sound impossible. It is not. Try the Golden Sands Resort in Varna, Bulgaria. You can get an ocean view room for 20 Euros per night. The room is quite nice. The breakfast is to die for. The beach is absolutely beautiful. The restaurants on the beach and in the town are economical. There are a lot of local attractions all around.
The combination of mountain and beach goes together well. When you visit eastern Europe you are going someplace that is different from any place you have ever been. Better hurry though. It will not last. Bulgaria is a country where history stopped for 40 years; but they are catching up fast. There are craft fairs and traditional dancers that dance on fire. The items in the craft fairs are things that you will never see elsewhere.
The only real problem is getting there. The cheapest fare from Charlotte that I have found was about $2500. If you stay a week it is still the cheapest vacation in Europe. Enjoy.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, April 17, 2008
The Flat World & Telephones
The Flat World & Telephones
I know the last blog promised to share what I learned from my Korean students. The class president is sending me the notes that we made in class. I hope they will come soon.
Often we talk about how the new flat world gives the ability to operate a multinational company from wherever we are. That is of course if we are not using Verizon Wireless as our telephone provider. When I changed to Verizon they touted their great international network. When I went to Argentina, I had to rent a special phone. At the last minute when leaving the states I needed to forward my Verizon phone to the special phone. The forwarding did not work, I sat on hold with “customer service” for 40 minutes until the plane took off. At least I could call out from Argentina.
I was assured the telephone I have would work great in Korea. Always in the past I have had to rent a KTF phone at the airport in Seoul and put the chip from my phone into it. My Verizon phone did not work. I went a week with no phone. I have had to sign up for Vonage service so that I will at least have some connection when I travel. The problem with Vonage is it only works through the DSL connection on a laptop computer. That is not always available. Verizon also says that my phone will work in Bulgaria and Romania. I will let you know next month. I do not have much faith left in Verizon; but I do have another year of contract left.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
I know the last blog promised to share what I learned from my Korean students. The class president is sending me the notes that we made in class. I hope they will come soon.
Often we talk about how the new flat world gives the ability to operate a multinational company from wherever we are. That is of course if we are not using Verizon Wireless as our telephone provider. When I changed to Verizon they touted their great international network. When I went to Argentina, I had to rent a special phone. At the last minute when leaving the states I needed to forward my Verizon phone to the special phone. The forwarding did not work, I sat on hold with “customer service” for 40 minutes until the plane took off. At least I could call out from Argentina.
I was assured the telephone I have would work great in Korea. Always in the past I have had to rent a KTF phone at the airport in Seoul and put the chip from my phone into it. My Verizon phone did not work. I went a week with no phone. I have had to sign up for Vonage service so that I will at least have some connection when I travel. The problem with Vonage is it only works through the DSL connection on a laptop computer. That is not always available. Verizon also says that my phone will work in Bulgaria and Romania. I will let you know next month. I do not have much faith left in Verizon; but I do have another year of contract left.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Saturday, April 12, 2008
What I Learned from My Korean Students.
What I Learned from My Korean Students
This is my 6th trip to S. Korea. I get surprised every time. Almost always the class has one or two graduate students. This time they make up almost half. It has been harder than usual to stimulate conversation. The universities here do not encourage student participation in the classes. One question finally got them going.
“How many of you believe the Korean Peninsula will be re-united within your lifetime?” The answer was unanimous. Everyone believes that. “What are the challenges and problems you foresee when this happens?” The answers were a perfect description of the problems and challenges that the Germans faced at their reunification. Today’s class was on Europe and that was the answer I was hoping for.
The point of this is not the answers they gave. It is that this is evidently a frequent topic of thought and discussion here. The S. Koreans are apprehensive about the economic costs and impacts of joining with the North. They are committed to helping their relatives and country men to have a better life. Incidentally no one knows the name of Kim Jong Il’s successor.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
This is my 6th trip to S. Korea. I get surprised every time. Almost always the class has one or two graduate students. This time they make up almost half. It has been harder than usual to stimulate conversation. The universities here do not encourage student participation in the classes. One question finally got them going.
“How many of you believe the Korean Peninsula will be re-united within your lifetime?” The answer was unanimous. Everyone believes that. “What are the challenges and problems you foresee when this happens?” The answers were a perfect description of the problems and challenges that the Germans faced at their reunification. Today’s class was on Europe and that was the answer I was hoping for.
The point of this is not the answers they gave. It is that this is evidently a frequent topic of thought and discussion here. The S. Koreans are apprehensive about the economic costs and impacts of joining with the North. They are committed to helping their relatives and country men to have a better life. Incidentally no one knows the name of Kim Jong Il’s successor.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Friday, April 11, 2008
A Market Landmark in the Real Estate Industry
A Market Landmark in the Real Estate Industry
Today in Seoul, I taught the Americas. I think I have recognized a sea change in the real estate industry. This change has been noticeable in the emerging markets where the classes are offered. S. Korea is not an emerging market.
At least 1/3 and probably half of the students in this class are university students. They are not undergraduates. They are graduate students. They are the best and the brightest. Real estate is their 1st career. Most of us in this industry have come to real estate as a second (or third or fourth) career. We either fail at other things first or are successful enough that we can really do what we want.
I don’t know that this change in the industry will mean an opportunity for some type of investment. I do believe it will change our industry irrevocably. For one thing most of us who grew up in other industries made our worst mistakes there. We brought general business experience to our new endeavors. The flip side of that is that we brought our hardened attitudes and ideas. I have some ideas about what will happen next. Tomorrow, I will spend another day with my students and see what I can learn before I “expound my great wisdom and experience.”
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Today in Seoul, I taught the Americas. I think I have recognized a sea change in the real estate industry. This change has been noticeable in the emerging markets where the classes are offered. S. Korea is not an emerging market.
At least 1/3 and probably half of the students in this class are university students. They are not undergraduates. They are graduate students. They are the best and the brightest. Real estate is their 1st career. Most of us in this industry have come to real estate as a second (or third or fourth) career. We either fail at other things first or are successful enough that we can really do what we want.
I don’t know that this change in the industry will mean an opportunity for some type of investment. I do believe it will change our industry irrevocably. For one thing most of us who grew up in other industries made our worst mistakes there. We brought general business experience to our new endeavors. The flip side of that is that we brought our hardened attitudes and ideas. I have some ideas about what will happen next. Tomorrow, I will spend another day with my students and see what I can learn before I “expound my great wisdom and experience.”
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, April 10, 2008
Whence Comes Value
Whence Comes Value?
Riding from Incheon Airport to my hotel in Seoul last night, I was impressed with the sheer concentration of humanity. There are 11,000,000 + or – in Seoul and 9,000,000 + or – in the surrounding area. Property values are extreme. Manufacturing and warehousing is not allowed in the city. Every pyong (3.3 sq. meters) is subject to maximum use.
Out the window of my hotel is a school with a huge athletic field. My first thought was, How can anyone possibly afford to use that much land for a school soccer field in a city this expensive? My second thought and the answer to the first is that, these uses are what gives the surrounding area its tremendous value. A city with it’s jobs and night life are a natural attraction for young people. But a larger quality of life is required in a flat world where companies and people can choose their home.
The Koreans are a unique people with many endearing and a few not so endearing traits. One of the things I admire most about them is their dedication to family. I can see that this school is probably one of the things that makes 20,000,000 people (almost half of the Korean population) want to live in Seoul.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Riding from Incheon Airport to my hotel in Seoul last night, I was impressed with the sheer concentration of humanity. There are 11,000,000 + or – in Seoul and 9,000,000 + or – in the surrounding area. Property values are extreme. Manufacturing and warehousing is not allowed in the city. Every pyong (3.3 sq. meters) is subject to maximum use.
Out the window of my hotel is a school with a huge athletic field. My first thought was, How can anyone possibly afford to use that much land for a school soccer field in a city this expensive? My second thought and the answer to the first is that, these uses are what gives the surrounding area its tremendous value. A city with it’s jobs and night life are a natural attraction for young people. But a larger quality of life is required in a flat world where companies and people can choose their home.
The Koreans are a unique people with many endearing and a few not so endearing traits. One of the things I admire most about them is their dedication to family. I can see that this school is probably one of the things that makes 20,000,000 people (almost half of the Korean population) want to live in Seoul.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Wednesday, April 2, 2008
1031 Exchanges International
1031 Exchanges International
Often the question is asked, “Can I do an exchange on international property”. The answer is like John McCain’s underwear. It depends. The 1031 exchange (named after section 1031 of the revenue code) is also called a “like kind exchange”. Real estate has a very special place in this code because all domestic real estate is considered like kind. You can trade a farm for an apartment building. You can even trade for a leasehold interest.
Someone trading livestock or equipment is held to much closer standards. You cannot trade a bull for a cow or even a beef bull for a dairy bull. You cannot trade a tractor for a printing press. I apologize for diverting so far off course before answering the original question.
You can trade any domestic business use real estate for any other domestic business use real estate. This would exclude a property used as a personal residence. You may trade any foreign business use real estate for any other foreign business use real estate; but you cannot change domestic for foreign or vice-a-versa.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Often the question is asked, “Can I do an exchange on international property”. The answer is like John McCain’s underwear. It depends. The 1031 exchange (named after section 1031 of the revenue code) is also called a “like kind exchange”. Real estate has a very special place in this code because all domestic real estate is considered like kind. You can trade a farm for an apartment building. You can even trade for a leasehold interest.
Someone trading livestock or equipment is held to much closer standards. You cannot trade a bull for a cow or even a beef bull for a dairy bull. You cannot trade a tractor for a printing press. I apologize for diverting so far off course before answering the original question.
You can trade any domestic business use real estate for any other domestic business use real estate. This would exclude a property used as a personal residence. You may trade any foreign business use real estate for any other foreign business use real estate; but you cannot change domestic for foreign or vice-a-versa.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, April 1, 2008
You are Everywhere or Anywhere
You are Everywhere or Anywhere
In preparation for some upcoming trips, I have been looking at communication options. My cellphone, of course, will work almost anywhere. There is even a better cheaper way to communicate over long distances. It is VOIP. From Skype or other services one can make or receive calls through the computer anywhere that there is high speed internet access.
It goes beyond just phone calls though. The most expensive rate I found was about $.13 per minute. My cellphone is from $1.50 to $3.00 per minute. If the call is Skype to Skype it is free. You can do video conferencing as well if a web cam is available. A portable person with a portable office can take their “huge” multinational corporation anywhere in this flat world.
The biggest challenge we face is not becoming obsolete. The good news is that technology is getting simpler and cheaper. If we get a little behind on the new stuff, it is not necessary to learn every thing that happened between our outdated knowledge and the new stuff. We just jump right into the new stuff. Where do you want to be?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
In preparation for some upcoming trips, I have been looking at communication options. My cellphone, of course, will work almost anywhere. There is even a better cheaper way to communicate over long distances. It is VOIP. From Skype or other services one can make or receive calls through the computer anywhere that there is high speed internet access.
It goes beyond just phone calls though. The most expensive rate I found was about $.13 per minute. My cellphone is from $1.50 to $3.00 per minute. If the call is Skype to Skype it is free. You can do video conferencing as well if a web cam is available. A portable person with a portable office can take their “huge” multinational corporation anywhere in this flat world.
The biggest challenge we face is not becoming obsolete. The good news is that technology is getting simpler and cheaper. If we get a little behind on the new stuff, it is not necessary to learn every thing that happened between our outdated knowledge and the new stuff. We just jump right into the new stuff. Where do you want to be?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Subscribe to:
Posts (Atom)
