OH! OH! Mexico
It is 20 degrees Fahrenheit in Charlotte NC this morning. It is 93 degrees in Cabo San Lucas. I know where I would rather be. Where would your clients rather be. A lot of people are going to be retiring early due to the financial crisis. If they have not met their financial goals yet, they may be interested in going someplace where their fixed income dollars will give them a nicer lifestyle.
Mexico, Central America, South America, Central and Eastern Europe are all really great retirement options. There are real estate agents and developers in those areas who will be more than happy to share commissions with other brokers. This is an easy way to make a few extra commission checks in a year when many of us are expecting our normal business to slow down. Anyone who has the CIPS (Certified International Property Specialist) designation knows how to take advantage of this situation.
Of course, we probably would not want to sell a property in a resort without visiting first to make sure the product is of the highest quality. These visits are often subsidized by the developers and the part that we do pay is tax deductible. That means Uncle Sam pays one third of your expenses and if you live in NC the state will pay 6% or 7%, depending on your tax situation. Want to meet brokers and developers in these countries? Check out NAR International or call me.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts
Wednesday, November 19, 2008
Thursday, September 11, 2008
Ebb & Flow in Europe
Ebb & Flow in Europe
The western European Countries seem to be catching the cold from the USA. Germany may even be heading for recession. Eastern countries are still rocking and rolling for the most part. They are growing based on internal demand. This is caused by rising wages. The rising wages are causing inflation. The inflation may kill the goose that laid the golden egg.
There is still a lot of unsatisfied demand for real estate by users in Romania and Bulgaria. The slump in western markets is driving investors and developers east. Investment and development are normally good things for a real estate market. Too much development leads to oversupply and eventually causes a “market correction”. Over enthusiastic investment becomes speculation and eventually causes a “bubble”.
Signs to watch: For oversupply compare absorption rates with permitted projects. Look at vacancy rates. Industrial space is the steadiest market. This brings core jobs and growth. The office market is usually the first to falter and the last to recover. Retail follows closely behind. Looking at a country as a whole will give an imperfect picture, look first at the smallest submarkets. The small submarkets around them will give an indication of market direction. For oversupply and speculation awareness one always should ask. Who will use this property and how rather than who will buy this property.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
The western European Countries seem to be catching the cold from the USA. Germany may even be heading for recession. Eastern countries are still rocking and rolling for the most part. They are growing based on internal demand. This is caused by rising wages. The rising wages are causing inflation. The inflation may kill the goose that laid the golden egg.
There is still a lot of unsatisfied demand for real estate by users in Romania and Bulgaria. The slump in western markets is driving investors and developers east. Investment and development are normally good things for a real estate market. Too much development leads to oversupply and eventually causes a “market correction”. Over enthusiastic investment becomes speculation and eventually causes a “bubble”.
Signs to watch: For oversupply compare absorption rates with permitted projects. Look at vacancy rates. Industrial space is the steadiest market. This brings core jobs and growth. The office market is usually the first to falter and the last to recover. Retail follows closely behind. Looking at a country as a whole will give an imperfect picture, look first at the smallest submarkets. The small submarkets around them will give an indication of market direction. For oversupply and speculation awareness one always should ask. Who will use this property and how rather than who will buy this property.
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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