Language and Culture
It is amazing how a language defines a society. I have been practicing Portuguese in preparation for the SECOVI conference in Brazil next month. I can taste the Feijawada when I say the words. In other languages it is just black beans and rice with a little pork. In Brazil it is a holy ritual. The “j”’s and “d”’s have extra “seasoning”. The intonation and accents are like the Brazilian music. It is all like the Brazilian people.
One can make a few mistakes speaking Portuguese and not go to hell for it. This is like the Brazilian people too. They are the most diverse people in the world and they accept each other and live together. They are not defined by their race or religion or job. They are “Brazilian” and damned proud of it. The worst mistake you can make with language is to speak Spanish. The Brazilian language and culture are different and distinct from the rest of South America and the rest of the world. Brazil should be treated as the unique culture that it is.
Another prime example of language defining a culture is British English and American English. H.L. Mencken wrote essays comparing the two. When one reads his essays, the differences are “literal”.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Saturday, August 30, 2008
Thursday, August 28, 2008
Conventional Wisdom
Conventional Wisdom
So far this convention season, we’ve heard mostly conventional rhetoric. The democratic convention has mostly addressed domestic issues. I consider these to be very important because the USA economy is extremely important to world economy. Barbara Boxer spoke about the environment. I believe the Democrats are more trustworthy stewards of the environment than the Republicans. I fear that either side will subordinate the ecology to the economy. Short term gain, long term pain.
John McCain spoke to the American Legion convention. He seems to have convinced them that being a veteran is a qualification for being president. I am a veteran. I am not qualified to be president. He accused Barack Obama of linking the problems in Georgia to Iraq. I don’t think Obama did that; but I do think they are linked. I also think the current republican administration’s belligerent attitude has set the tone for other administrations around the world.
Our second rule of international real estate is: “Capital flows to the highest yield with the lowest risk.” Peace and harmony reduce risk. Peace and harmony attract investment.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
So far this convention season, we’ve heard mostly conventional rhetoric. The democratic convention has mostly addressed domestic issues. I consider these to be very important because the USA economy is extremely important to world economy. Barbara Boxer spoke about the environment. I believe the Democrats are more trustworthy stewards of the environment than the Republicans. I fear that either side will subordinate the ecology to the economy. Short term gain, long term pain.
John McCain spoke to the American Legion convention. He seems to have convinced them that being a veteran is a qualification for being president. I am a veteran. I am not qualified to be president. He accused Barack Obama of linking the problems in Georgia to Iraq. I don’t think Obama did that; but I do think they are linked. I also think the current republican administration’s belligerent attitude has set the tone for other administrations around the world.
Our second rule of international real estate is: “Capital flows to the highest yield with the lowest risk.” Peace and harmony reduce risk. Peace and harmony attract investment.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Monday, August 25, 2008
Politics and Real Estate
Politics and Real Estate
I consider politics to be a sordid pastime. I prefer not to be involved. Discussions of politics virtually never makes friends only enemies. Unfortunately, the motto of RPAC has proved to be only too true in the last few years. “If real estate is your profession, politics is your business.” Just look at the way the economy of the United States has been ruined in the last 8 years by bad political and foreign policy decisions.
The second rule of international real estate is “Capital flows to the highest yield with the lowest risk.” Political risk is bad enough by itself. In some countries the ownership, transfer and tax rules can change overnight. Political risk also causes other risks such as danger from terrorism or military action. It is quite bad to lose your property or have it damaged in a way that is usually not covered by insurance. Losing one’s life is the ultimate risk.
I wonder what the effects of the last several weeks have done to property values in S. Ossetia and Georgia. Maybe this is time to buy. The blood is definitely in the streets. How long will it be before the economies of these areas will rebound? How long before these areas are once again fit for human habitation? I personally think that purchases in Tblisi and other Georgian cities could be a good investment. I am 61 years old. I don’t think I have enough time left for an investment in S. Ossetia or N. Ossetia.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
I consider politics to be a sordid pastime. I prefer not to be involved. Discussions of politics virtually never makes friends only enemies. Unfortunately, the motto of RPAC has proved to be only too true in the last few years. “If real estate is your profession, politics is your business.” Just look at the way the economy of the United States has been ruined in the last 8 years by bad political and foreign policy decisions.
The second rule of international real estate is “Capital flows to the highest yield with the lowest risk.” Political risk is bad enough by itself. In some countries the ownership, transfer and tax rules can change overnight. Political risk also causes other risks such as danger from terrorism or military action. It is quite bad to lose your property or have it damaged in a way that is usually not covered by insurance. Losing one’s life is the ultimate risk.
I wonder what the effects of the last several weeks have done to property values in S. Ossetia and Georgia. Maybe this is time to buy. The blood is definitely in the streets. How long will it be before the economies of these areas will rebound? How long before these areas are once again fit for human habitation? I personally think that purchases in Tblisi and other Georgian cities could be a good investment. I am 61 years old. I don’t think I have enough time left for an investment in S. Ossetia or N. Ossetia.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Friday, August 22, 2008
The New Cold War
The New Cold War
What will the “new cold war” mean for the “new world order”. The world’s hopes for peace were pretty much dashed when George Bush moved into the Whitehouse. Bill Clinton had spent 8 years making friends around the world, wiping out the budget deficit and spreading peace and good will. George Bush has spent his 8 years making enemies, blowing the budget and spreading war, jealousy and hatred.
There was no reason to be so insensitive to Russian national pride. Russia was trying to be a good or at least a better world citizen. The USA superior attitude destroyed all of that. There was and is no need for a missile defense system that does not work anyway. Until now there has been no need to expand NATO into the former Warsaw Pact. Now we need it in Georgia bad. The real competition is no longer missiles and warfare abilities. The new competition is energy. We are driving Russia from the Western camp to the Chinese camp. It may be a cold winter in Europe. If not this year, next year for sure.
I just hope the next “leader of the free world” will be less arrogant and more charismatic.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
What will the “new cold war” mean for the “new world order”. The world’s hopes for peace were pretty much dashed when George Bush moved into the Whitehouse. Bill Clinton had spent 8 years making friends around the world, wiping out the budget deficit and spreading peace and good will. George Bush has spent his 8 years making enemies, blowing the budget and spreading war, jealousy and hatred.
There was no reason to be so insensitive to Russian national pride. Russia was trying to be a good or at least a better world citizen. The USA superior attitude destroyed all of that. There was and is no need for a missile defense system that does not work anyway. Until now there has been no need to expand NATO into the former Warsaw Pact. Now we need it in Georgia bad. The real competition is no longer missiles and warfare abilities. The new competition is energy. We are driving Russia from the Western camp to the Chinese camp. It may be a cold winter in Europe. If not this year, next year for sure.
I just hope the next “leader of the free world” will be less arrogant and more charismatic.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, August 21, 2008
South American Spring
South American Spring
One of the things I really love about South America is the ability to enjoy Spring and Fall twice. CIA (Camara Inmobiliaria Argentina) and SECOVI (The Sao Paulo real estate professionals) are both having conferences in September. I will be enjoying Spring in both of them. Another Brazilian group Conaci is having a conference in Fortaleza. Fortaleza is pretty close to the equator. You can’t really call the season there Spring. All you can call it is hot.
SECOVI really knows how to put on a conference. The day before the conference begins they have the Premio Master Imobliaria, which the 1st stage for the FIABCI Prix de Exellence. This real estate award ceremony is held in the old railway station in Sao Paulo, which has been completely refurbished to a very high standard of excellence. The speakers at this conference are always fantastic. One year they had President Cardoso. They also have a Chef who could cook at any 5 star restaurant anywhere in the world. More info at http://www.convencaosecovi.com.br
The Argentines are having their conference at the Hilton in Puerto Madero, Buenos Aires. The conference is called Mundo Inmobiliario 2008. Information can be accessed at http://www.mundoinmobiliario.com.ar There is an all star, action packed two days of intense education. Plan to stay an extra day or two to really enjoy Buenos Aires.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
One of the things I really love about South America is the ability to enjoy Spring and Fall twice. CIA (Camara Inmobiliaria Argentina) and SECOVI (The Sao Paulo real estate professionals) are both having conferences in September. I will be enjoying Spring in both of them. Another Brazilian group Conaci is having a conference in Fortaleza. Fortaleza is pretty close to the equator. You can’t really call the season there Spring. All you can call it is hot.
SECOVI really knows how to put on a conference. The day before the conference begins they have the Premio Master Imobliaria, which the 1st stage for the FIABCI Prix de Exellence. This real estate award ceremony is held in the old railway station in Sao Paulo, which has been completely refurbished to a very high standard of excellence. The speakers at this conference are always fantastic. One year they had President Cardoso. They also have a Chef who could cook at any 5 star restaurant anywhere in the world. More info at http://www.convencaosecovi.com.br
The Argentines are having their conference at the Hilton in Puerto Madero, Buenos Aires. The conference is called Mundo Inmobiliario 2008. Information can be accessed at http://www.mundoinmobiliario.com.ar There is an all star, action packed two days of intense education. Plan to stay an extra day or two to really enjoy Buenos Aires.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, August 19, 2008
Changes to Spanish Real Estate Law
Changes to Spanish Real Estate Law
In an attempt to slow down real estate speculation and to provide more affordable housing, Spain has changed their basic real estate law which is the Spanish Land Act. The changes to the law are in 3 main areas: valuation, protected status, and Infrastructure.
The valuation change is that property must now be appraised based on its current classification, rather than its potential use. The classifications are rural protected or non-protected or urban. Urban is classified in categories of : “supported by infrastructure” or “consolidated urban land”. Consolidated urban land has infrastructure that is legally integrated into the local system.
Protected housing must constitute 30% of all new development. This property Is what we would probably call “rent controlled” or “price controlled”. The right to develop infrastructure was formerly a private property right belonging to the owner. This right now will be subject to public administration and supervision.David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
In an attempt to slow down real estate speculation and to provide more affordable housing, Spain has changed their basic real estate law which is the Spanish Land Act. The changes to the law are in 3 main areas: valuation, protected status, and Infrastructure.
The valuation change is that property must now be appraised based on its current classification, rather than its potential use. The classifications are rural protected or non-protected or urban. Urban is classified in categories of : “supported by infrastructure” or “consolidated urban land”. Consolidated urban land has infrastructure that is legally integrated into the local system.
Protected housing must constitute 30% of all new development. This property Is what we would probably call “rent controlled” or “price controlled”. The right to develop infrastructure was formerly a private property right belonging to the owner. This right now will be subject to public administration and supervision.David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Monday, August 18, 2008
Let’s Go To Nicaragua
Let’s Go To Nicaragua
Beginning October 6th we will be doing a CIPS institute in Nicaragua. It is sponsored by Del Pacifica. It is going to be a lot of fun and a lot of good networking. Anyone who has any interest at all in the 2nd Home market or the Caribbean area and who does not yet have their CIPS designation should be there.
The prices will be at a slight discount. Taken individually the theatre classes will be $225 and Finance will be $295. The whole institute is only $800. The classes will be at an all-inclusive resort. We have one day to play at Del Pacifica, compliments of the developer. I can’t wait. I might even buy a green speedo just for the occasion. Don’t get too grossed out. If I buy a speedo it will be the goggles, not the bathing suit.
This may be a way to get your CIPS designation with a net cost of $0. You may get so excited about Del Pacifica that you tell a friend and sell a unit. Your commission will pay you for the class and your travel. Contact Lucia Sacasa luciasacasa@portonica.com to sign up today. We are filling up fast.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Beginning October 6th we will be doing a CIPS institute in Nicaragua. It is sponsored by Del Pacifica. It is going to be a lot of fun and a lot of good networking. Anyone who has any interest at all in the 2nd Home market or the Caribbean area and who does not yet have their CIPS designation should be there.
The prices will be at a slight discount. Taken individually the theatre classes will be $225 and Finance will be $295. The whole institute is only $800. The classes will be at an all-inclusive resort. We have one day to play at Del Pacifica, compliments of the developer. I can’t wait. I might even buy a green speedo just for the occasion. Don’t get too grossed out. If I buy a speedo it will be the goggles, not the bathing suit.
This may be a way to get your CIPS designation with a net cost of $0. You may get so excited about Del Pacifica that you tell a friend and sell a unit. Your commission will pay you for the class and your travel. Contact Lucia Sacasa luciasacasa@portonica.com to sign up today. We are filling up fast.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Friday, August 15, 2008
Knoxville, TN
Knoxville, TN.
It is really nice to find a spot where people are upbeat about their market and excited about the prospects of the real estate business there. A huge new research complex is being built near Oakridge. Oakridge is the most international city in the USA per capita, according to one of my students. I have not verified this; but I believe it.
A new Volkswagon plant is coming to the Chatanooga area. This will bring jobs and business that will affect not only Chatanooga; but all of East Tennessee and the mountains of NC, and Georgia. This plant does not bring just jobs. It brings a lot of increased demand for infrastructure that will benefit everyone. I am sure there are a lot of people in my home state of NC, who are bitter at not getting the plant. Perhaps they should go to Tennessee and see the roads and talk to the residents about their schools.
If Volkswagon or any other company just wants cheap labor, they will not be locating in the USA. They are looking for total quality of life and operating conditions. The roads in NC are so bad that the ideal target industry for us would be dentists. They can make a fortune replacing people’s fillings.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
It is really nice to find a spot where people are upbeat about their market and excited about the prospects of the real estate business there. A huge new research complex is being built near Oakridge. Oakridge is the most international city in the USA per capita, according to one of my students. I have not verified this; but I believe it.
A new Volkswagon plant is coming to the Chatanooga area. This will bring jobs and business that will affect not only Chatanooga; but all of East Tennessee and the mountains of NC, and Georgia. This plant does not bring just jobs. It brings a lot of increased demand for infrastructure that will benefit everyone. I am sure there are a lot of people in my home state of NC, who are bitter at not getting the plant. Perhaps they should go to Tennessee and see the roads and talk to the residents about their schools.
If Volkswagon or any other company just wants cheap labor, they will not be locating in the USA. They are looking for total quality of life and operating conditions. The roads in NC are so bad that the ideal target industry for us would be dentists. They can make a fortune replacing people’s fillings.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Wednesday, August 6, 2008
Emerging Markets Power the World
Emerging Markets Power the World
We talked about the world economy as a 747 with 4 engines. The European engine is sputtering. George Bush is choking the fuel to the USA engine. The commodities engine is going so fast it makes the plane lopsided. The emerging markets engine is really the only one operating well. For years the USA powered the plane with our internal economy (consumers). Our credit cards are all maxed out and our housing markets are drunk on Champagne music. (All those bursting bubbles)
The only thing keeping the world economy in the air is the internal growth in the emerging economies. These economies are growing because of consumer demand within their countries. In the USA, the war in Iraq is driving our economy. Driving it down that is. The soldiers are spending their money in Iraq. The military machine is sucking up fuel like moonshine. We will never cut demand for fossil fuels as long as we have over a million people driving around in Humvees and flying all over the world in airplanes with their only purpose being to drive around in Humvees.
Well, the economy is like the weather. We can complain about it. As individuals there is not much we can do to change it. We can take steps to make our own businesses better. What are you doing? Please share your good ideas.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
We talked about the world economy as a 747 with 4 engines. The European engine is sputtering. George Bush is choking the fuel to the USA engine. The commodities engine is going so fast it makes the plane lopsided. The emerging markets engine is really the only one operating well. For years the USA powered the plane with our internal economy (consumers). Our credit cards are all maxed out and our housing markets are drunk on Champagne music. (All those bursting bubbles)
The only thing keeping the world economy in the air is the internal growth in the emerging economies. These economies are growing because of consumer demand within their countries. In the USA, the war in Iraq is driving our economy. Driving it down that is. The soldiers are spending their money in Iraq. The military machine is sucking up fuel like moonshine. We will never cut demand for fossil fuels as long as we have over a million people driving around in Humvees and flying all over the world in airplanes with their only purpose being to drive around in Humvees.
Well, the economy is like the weather. We can complain about it. As individuals there is not much we can do to change it. We can take steps to make our own businesses better. What are you doing? Please share your good ideas.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Monday, August 4, 2008
Usufruct
Usufruct
We have referred to the situation before, mostly in communist or former communist countries, where the buyer of a property does not get title to the land. They merely get the right to develop or use the land. Normally this is done with state-owned or communally owned properties. There will normally be a lease on the land for an indefinite period or somewhere between 40 and 99 years. The process is called “Usufruct”. It means loosely “to use the fruit”.
While westerners seem to think this is unusual or a less than ideal situation, the same thing is done in capitalist countries. Almost all of the land in Israel is owned by the “Israeli Land Authority”. Many service stations, branch banks, fast food restaurants and shopping centers are built on long term leased land. Beach front land in Hawaii is rarely sold. The USA tax code recognizes only depreciation on the improvements on a property. If the land is leased, the lease has a definite life and the rent on the land is deductible as a business expense. There are advantages to this form of ownership for both the land owner and for the owner/developer of the improvements.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
We have referred to the situation before, mostly in communist or former communist countries, where the buyer of a property does not get title to the land. They merely get the right to develop or use the land. Normally this is done with state-owned or communally owned properties. There will normally be a lease on the land for an indefinite period or somewhere between 40 and 99 years. The process is called “Usufruct”. It means loosely “to use the fruit”.
While westerners seem to think this is unusual or a less than ideal situation, the same thing is done in capitalist countries. Almost all of the land in Israel is owned by the “Israeli Land Authority”. Many service stations, branch banks, fast food restaurants and shopping centers are built on long term leased land. Beach front land in Hawaii is rarely sold. The USA tax code recognizes only depreciation on the improvements on a property. If the land is leased, the lease has a definite life and the rent on the land is deductible as a business expense. There are advantages to this form of ownership for both the land owner and for the owner/developer of the improvements.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Sunday, August 3, 2008
How They Survived Hard Times in Brazil
How They Survived Hard Times in Brazil
My first trip to Sao Paulo was right after the devaluation of the Real. Everything I had read in the economist and elsewhere had prepared me to see and economic wasteland. Instead I saw building cranes everywhere. The demand was there the creative brokers and developers adapted to meet the demand.
What they did was this. As soon as the project was conceived a billboard and a trailer were erected on the site with pictures, models, sales agents and brochures. Every street corner for miles around was adorned with a beautiful Brazilian lady passing out brochures. The Brazilian ladies are all gorgeous. The Brazilian men are all macho. This is a perfect combination. The financing is what is really creative though.
The buyer picks out their unit and puts a sizeable deposit. They begin making monthly payments. Interest rates are high in Brazil; so the money accrues quickly. By the time the project is finished in about 3 years, the unit is paid for. The people move into a paid for home. The money deposit is guaranteed by a builder’s association. This solves another problem too. Many people were building without permits. The deposits are only insured for permitted projects.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
My first trip to Sao Paulo was right after the devaluation of the Real. Everything I had read in the economist and elsewhere had prepared me to see and economic wasteland. Instead I saw building cranes everywhere. The demand was there the creative brokers and developers adapted to meet the demand.
What they did was this. As soon as the project was conceived a billboard and a trailer were erected on the site with pictures, models, sales agents and brochures. Every street corner for miles around was adorned with a beautiful Brazilian lady passing out brochures. The Brazilian ladies are all gorgeous. The Brazilian men are all macho. This is a perfect combination. The financing is what is really creative though.
The buyer picks out their unit and puts a sizeable deposit. They begin making monthly payments. Interest rates are high in Brazil; so the money accrues quickly. By the time the project is finished in about 3 years, the unit is paid for. The people move into a paid for home. The money deposit is guaranteed by a builder’s association. This solves another problem too. Many people were building without permits. The deposits are only insured for permitted projects.
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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