Help the Homeless. Buy a 2nd Home in Venezuela
A new proposal to change the constitution in Venezuela would make major changes to the rights of property owners in that country. It would authorize homeless persons to occupy properties designated as 2nd homes. This would include apartments, beach houses, and homes in club communities. It would limit a family to one home per 3 members.
The law would prohibit the use of mini-skirts, string bikinis and stretch pants. Who would want to go to the beach anyway? It would also outlaw Mickey Mouse. These changes are nominally called “socialist reform”. I thought socialism was supposed to improve the lives of the people. With the limits on property rights, entertainment, access to internet and other sources of information, it seems the lot of the people would be reduced to that of domestic animals.
President Chavez has done everything he can to destroy a country that was once a bright spot in Latin America and a cultural example to the world. How far will the Venezuelans allow him to go?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Monday, March 30, 2009
Monday, March 23, 2009
Ecuador from Ecuador
Ecuador from Ecuador
The economist, the 6:00 news and other sources of information would lead one to believe that the Ecuadorian economy is a basket case. I just came from there. Most of the economy that I witnessed is unofficial. The unofficial economy seems to have little relationship to the official economy. In Quito and Guayaquil I was told that the crime rate is high. I was warned about walking around after dark. (I did it anyway). I did see some people that I did not want to have a conversation with. I did not feel fear. I also did not see homeless people.
I did not see dirty people. The streets were reasonably clean in every city I visited. They were very clean in Cuenca and that city seemed relatively crime free. One can by a livable 90 M2 home (1000 sq ft. mol) for $50,000 in a a good neighborhood. One can buy what would cost $1,250,000 in Charlotte in a gated community for $300,000. Food is cheap, booze is cheap, clothes are cheap. I can see Ecuador as an ideal retirement destination for people who are not meeting their expectations in their retirement accounts.
On top of everything else the people are extremely civilized and friendly and family oriented. Many of them do not like their president. Someone must have voted for him.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
The economist, the 6:00 news and other sources of information would lead one to believe that the Ecuadorian economy is a basket case. I just came from there. Most of the economy that I witnessed is unofficial. The unofficial economy seems to have little relationship to the official economy. In Quito and Guayaquil I was told that the crime rate is high. I was warned about walking around after dark. (I did it anyway). I did see some people that I did not want to have a conversation with. I did not feel fear. I also did not see homeless people.
I did not see dirty people. The streets were reasonably clean in every city I visited. They were very clean in Cuenca and that city seemed relatively crime free. One can by a livable 90 M2 home (1000 sq ft. mol) for $50,000 in a a good neighborhood. One can buy what would cost $1,250,000 in Charlotte in a gated community for $300,000. Food is cheap, booze is cheap, clothes are cheap. I can see Ecuador as an ideal retirement destination for people who are not meeting their expectations in their retirement accounts.
On top of everything else the people are extremely civilized and friendly and family oriented. Many of them do not like their president. Someone must have voted for him.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Wednesday, March 4, 2009
The Pain in Spain is Mostly in the Gain
The Pain in Spain is Mostly in the Gain
In a recent article in OPP magazine, I learned that there is a snake hidden in the Spanish succession laws. Most countries charge estate taxes to the estate. Spain (according to the article) charges the inheritor. This means that if you (as a foreigner) inherit a property in Spain you could wind up with double taxation. The article goes on to suggest strategies for avoiding this eventuality. That is way out of the scope of this blog.
The ultimate insult could of course be that the way property trends are going in Spain there may not be any gain anyway. It is always good to get competent advisors who are knowledgeable about the taxes in all of the countries involved in any transaction. Estate planning takes on whole new dimensions when international ownership is involved. Finding a competent advisor could be quite difficult. Not finding one could be even more difficult and costly.
The Spanish government is accepting many unsold properties into a government sponsored low-income housing pool. Not to be judgmental; but these people may not make the best neighbors. See what the sales rates are for a project in which you buy. Make sure the properties will hold their value.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
In a recent article in OPP magazine, I learned that there is a snake hidden in the Spanish succession laws. Most countries charge estate taxes to the estate. Spain (according to the article) charges the inheritor. This means that if you (as a foreigner) inherit a property in Spain you could wind up with double taxation. The article goes on to suggest strategies for avoiding this eventuality. That is way out of the scope of this blog.
The ultimate insult could of course be that the way property trends are going in Spain there may not be any gain anyway. It is always good to get competent advisors who are knowledgeable about the taxes in all of the countries involved in any transaction. Estate planning takes on whole new dimensions when international ownership is involved. Finding a competent advisor could be quite difficult. Not finding one could be even more difficult and costly.
The Spanish government is accepting many unsold properties into a government sponsored low-income housing pool. Not to be judgmental; but these people may not make the best neighbors. See what the sales rates are for a project in which you buy. Make sure the properties will hold their value.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, February 26, 2009
Will Globalization be a Victim of the Recession?
Will Globalization be a Victim of the Recession?
Migrant workers are returning home in droves. Even those who are not going home are reducing the remittances they send. Economic immigration is slowing to a trickle. Workers in almost every country blame job losses on “cheap foreign labor”. That includes the providers of “cheap foreign labor”. Luxury 2nd home sales and international tourism have dropped substantially.
Trends are evident in the real estate market. The “bottom fishers” are finally coming out. In most countries the bottom fishers are foreign investors. The middle-eastern investors especially are in a buying mode. In some markets, local investors are buying assets that foreigners cannot afford to keep. Corporate mergers and acquisitions are way up. The economist says they have increased 25% over last year. These are stronger companies taking over weaker companies for the most part. Also they are weaker companies trying to get together to stay afloat.
As the world economy contracts forces will pull in two directions. There will be reduced incentive to export jobs and import goods. There will be an increase in searches for investment opportunities in other markets. Good luck world.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Migrant workers are returning home in droves. Even those who are not going home are reducing the remittances they send. Economic immigration is slowing to a trickle. Workers in almost every country blame job losses on “cheap foreign labor”. That includes the providers of “cheap foreign labor”. Luxury 2nd home sales and international tourism have dropped substantially.
Trends are evident in the real estate market. The “bottom fishers” are finally coming out. In most countries the bottom fishers are foreign investors. The middle-eastern investors especially are in a buying mode. In some markets, local investors are buying assets that foreigners cannot afford to keep. Corporate mergers and acquisitions are way up. The economist says they have increased 25% over last year. These are stronger companies taking over weaker companies for the most part. Also they are weaker companies trying to get together to stay afloat.
As the world economy contracts forces will pull in two directions. There will be reduced incentive to export jobs and import goods. There will be an increase in searches for investment opportunities in other markets. Good luck world.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Tuesday, February 24, 2009
What Now?
What Now?
The economic stimulus bill has passed. Help is on the way. What about the businesses, jobs and homes that are irrevocably lost? Maybe they will come back in some form. The people who held those jobs will probably find somewhere to work even if it is the unofficial economy. The people who lived in those homes will find a place to live and eventually get another home even if they have to rent it. Consumption of housing is as important to our industry as home ownership.
Perhaps the greatest tragedy is the time of people’s lives that is spent in despair and the relationships that are damaged or lost. Most of us in the real estate industry are used to hard times and we may have had a lot of changes in our lives. Someone with a “real job”, who has been employed at the same place most of their lives may feel as if they have had an amputation when that career comes to an end.
The stock market will come back someday as well as everything else. How many people have their retirement funds invested in such a way that they cannot delay cashing in some of their assets? The financial problems of the recession will end. Some of the human wreckage left in the wake will be with us for a generation.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
The economic stimulus bill has passed. Help is on the way. What about the businesses, jobs and homes that are irrevocably lost? Maybe they will come back in some form. The people who held those jobs will probably find somewhere to work even if it is the unofficial economy. The people who lived in those homes will find a place to live and eventually get another home even if they have to rent it. Consumption of housing is as important to our industry as home ownership.
Perhaps the greatest tragedy is the time of people’s lives that is spent in despair and the relationships that are damaged or lost. Most of us in the real estate industry are used to hard times and we may have had a lot of changes in our lives. Someone with a “real job”, who has been employed at the same place most of their lives may feel as if they have had an amputation when that career comes to an end.
The stock market will come back someday as well as everything else. How many people have their retirement funds invested in such a way that they cannot delay cashing in some of their assets? The financial problems of the recession will end. Some of the human wreckage left in the wake will be with us for a generation.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Wednesday, February 18, 2009
Nobody Knows
Nobody Knows
I have found 2 articles lately that propose to tell what the real estate business is going to be like in the coming months. What I learned from both articles is that the author hasn’t a clue. One guy said to be sure to buy “value”. He did not say what he meant by “value”. Last year I would have described “value” as a credit tenant with a long term lease. The question now with that formula is who is a credit tenant?
There are businesses that are doing well. Family Dollar for example is growing their profits. Family dollar stores are normally in ratty neighborhoods. One would probably have to buy a small strip center with mom & pop tenants and the family dollar store to get just the one tenant. Family dollar being the anchor surely has an advantageous lease. The Levines are some of the hardest negotiators on earth. The terms of their lease may not be very good.
Maybe it is best just to keep cash. I can’t help but thinking the economic stimulus package is going to stimulate the printing presses. What will that do to the value of cash?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
I have found 2 articles lately that propose to tell what the real estate business is going to be like in the coming months. What I learned from both articles is that the author hasn’t a clue. One guy said to be sure to buy “value”. He did not say what he meant by “value”. Last year I would have described “value” as a credit tenant with a long term lease. The question now with that formula is who is a credit tenant?
There are businesses that are doing well. Family Dollar for example is growing their profits. Family dollar stores are normally in ratty neighborhoods. One would probably have to buy a small strip center with mom & pop tenants and the family dollar store to get just the one tenant. Family dollar being the anchor surely has an advantageous lease. The Levines are some of the hardest negotiators on earth. The terms of their lease may not be very good.
Maybe it is best just to keep cash. I can’t help but thinking the economic stimulus package is going to stimulate the printing presses. What will that do to the value of cash?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Thursday, February 5, 2009
A Feeling in the Air
A Feeling in the Air
I don’t think the recession is even close to being over. I do think we are very close to the bottom. I am basing this on call volume on listings and rentals. People have been afraid. They have put things off as long as they can in many cases. There are many people who have the ability and the desire to buy. They have not had the confidence. The confidence does not seem to have changed that much. The need has.
There are things that are important. Other things are urgent. Important things can become urgent if they are ignored long enough. That could be what is happening now. The call volume is picking up. The transaction volume hasn’t budged yet. Hopefully one will follow the other. What is happening with your business?
There has not been much optimistic news; but at least the new administration is changing a lot of very negative things. They are making some mistakes as well. At least when Mr. Obaba screws up he admits it. Hopefully the age of “mistakes have been made” is over.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
I don’t think the recession is even close to being over. I do think we are very close to the bottom. I am basing this on call volume on listings and rentals. People have been afraid. They have put things off as long as they can in many cases. There are many people who have the ability and the desire to buy. They have not had the confidence. The confidence does not seem to have changed that much. The need has.
There are things that are important. Other things are urgent. Important things can become urgent if they are ignored long enough. That could be what is happening now. The call volume is picking up. The transaction volume hasn’t budged yet. Hopefully one will follow the other. What is happening with your business?
There has not been much optimistic news; but at least the new administration is changing a lot of very negative things. They are making some mistakes as well. At least when Mr. Obaba screws up he admits it. Hopefully the age of “mistakes have been made” is over.
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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