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