International Forum…Luke Romero
“True wisdom comes from a fortune cookie”
“Honesty & friendship bring you fortune”
Why (do) international (real estate)?
Great opportunity base
Expanded market base
Constant movement of Capital
Risk appropriate investment Choices
Who is the market?
Business transferees
2nd home buyers
Finding the client…Networks
Great Destinations…Wherever you want to be.
Where to begin
Look around
Secure a certification
Build good relationships
Getting Paid
Establish the contact
Develop relationship
Get it in writing
Verify form of payment
Stay in contact
Currency exchanges
Be Patient
Access the wisdom
David Segrest is a REALTOR in Charlotte NC. His website is http:www.segrestrealty.com .
Tuesday, November 20, 2007
Monday, November 19, 2007
International Forum... Paul McBride
International Forum…Paul McBride
Paul McBride is with Prima Panama. He has a very unique business model which we will discuss in a later blog. This blog will only deal with his presentation at the forum.
Paul’s company wanted to know who there clients were so they sent out a survey by email with 85 questions. They got 600 responses. This is some of what they learned.
Most of the buyers came from referrals either from a friend or someone who had responded to an advertisement.
Most buyers do 3 to 5 years research before they buy. They want lots of information.
The types of purchases they make are: A primary residence or a 2nd home. Many buy for rental now with the idea of a personal use property later. Buyer’s need to know the selling process.
The reasons for purchase are:
Costs of living
Weather (typically warmer)
Proximity to their home market
Taxes
Be around friend & other foreigners
Broker & Attorney very important for foreign buyers, they need to have relationships with others in the transaction.
Transfer Tax vs. Capital Gains
2% transfer tax paid by seller
Corporate transfer no transfer tax
Capital Gain in US less any tax paid in Panama.
David Segrest is a REALTOR in Charlotte NC. His website is http:www.segrestrealty.com .
Paul McBride is with Prima Panama. He has a very unique business model which we will discuss in a later blog. This blog will only deal with his presentation at the forum.
Paul’s company wanted to know who there clients were so they sent out a survey by email with 85 questions. They got 600 responses. This is some of what they learned.
Most of the buyers came from referrals either from a friend or someone who had responded to an advertisement.
Most buyers do 3 to 5 years research before they buy. They want lots of information.
The types of purchases they make are: A primary residence or a 2nd home. Many buy for rental now with the idea of a personal use property later. Buyer’s need to know the selling process.
The reasons for purchase are:
Costs of living
Weather (typically warmer)
Proximity to their home market
Taxes
Be around friend & other foreigners
Broker & Attorney very important for foreign buyers, they need to have relationships with others in the transaction.
Transfer Tax vs. Capital Gains
2% transfer tax paid by seller
Corporate transfer no transfer tax
Capital Gain in US less any tax paid in Panama.
David Segrest is a REALTOR in Charlotte NC. His website is http:www.segrestrealty.com .
Sunday, November 18, 2007
International Forum... Mitch Creekmore
International Forum…Mitch Creekmore
Last week I was in Las Vegas at the NAR Convention. On the 13th I moderated a panel discussion on working with International Buyers. The panelists were Mitch Creekmore, Paul McBride and Luke Romero. The next 3 blogs will be summaries of their presentations.
Mitch Creekmore is with Stewart Title. He is the co-author of 2 books. One about Mexico and the other about Central America. I will simply give my notes from his presentation.
I. According to Article 27 of the Mexican Constitution, everything except the surface rights to all of the land in Mexico belongs to the government. One should understand that they do not own subterranean or mineral rights when they buy property.
II. Mexico has the right to expropriate property. (Eminent Domain)
III Foreigners can buy in the interior of the country.
A. They must register
B. The Calvo Claruse requires owners to consider themselves as Mexican citizens for the purpose of any court actions.
C. In the restricted zone, 100 Kilometers from the borders, 50 Kilometers from the coast and all of Baja peninsula cannot be owned by foreigners. Remember… In 1810 the USA stole ½ of Mexico.
IV. Ejido grants rights to communities to farm land. No title can be obtained on this property.
V. A Fideicomiso (trust) is used to purchase land in the restricted zone.
David Segrest is a REALTOR in Charlotte NC. His website is http:www.segrestrealty.com .
Last week I was in Las Vegas at the NAR Convention. On the 13th I moderated a panel discussion on working with International Buyers. The panelists were Mitch Creekmore, Paul McBride and Luke Romero. The next 3 blogs will be summaries of their presentations.
Mitch Creekmore is with Stewart Title. He is the co-author of 2 books. One about Mexico and the other about Central America. I will simply give my notes from his presentation.
I. According to Article 27 of the Mexican Constitution, everything except the surface rights to all of the land in Mexico belongs to the government. One should understand that they do not own subterranean or mineral rights when they buy property.
II. Mexico has the right to expropriate property. (Eminent Domain)
III Foreigners can buy in the interior of the country.
A. They must register
B. The Calvo Claruse requires owners to consider themselves as Mexican citizens for the purpose of any court actions.
C. In the restricted zone, 100 Kilometers from the borders, 50 Kilometers from the coast and all of Baja peninsula cannot be owned by foreigners. Remember… In 1810 the USA stole ½ of Mexico.
IV. Ejido grants rights to communities to farm land. No title can be obtained on this property.
V. A Fideicomiso (trust) is used to purchase land in the restricted zone.
David Segrest is a REALTOR in Charlotte NC. His website is http:www.segrestrealty.com .
Thursday, November 8, 2007
Choosing a Location for a Vacation Home
Choosing a Location for a Vacation Home
There are so many factors involved in choosing a location or even a country for a vacation home. How does one make that decision? There is bound to be an intelligent way to choose; but this is an emotion based decision. Does intelligence matter? I think it does. The heart has to have veto power though.
The activities desired has to be the first qualifier. Make a list of things to do on vacation. Make a list of places to choose from. Match up the two lists. Hopefully this will narrow the choices down some. Costs may or may not be a big factor. Check the airfare from home to the vacation home. Some places are accessible by car. What is the expected mode of travel. Golf clubs are not too bad on an airplane. Surfboards are tough. Windsurfers, kayaks and canoes are probably impossible. Can they be rented at the location; or can you store one at the vacation home.
If the vacation home is to be rented when not in use a financial analysis is a good idea. If it is not to be rented, how will the property be secured when it is not in use. In many places leaving a property vacant is like putting up a “move in free” sign. Getting a property back after someone moves in is nearly impossible. Possession is so hard to get on an occupied property that some places even offer “tenant insurance” to cover the rent and costs if a tenant quits paying and refuses to move.
What about security? Capital flows to the highest yield with the lowest risk. A person willing to acquire a property in a less secure environment can expect to pay less for an equivalent property. What type of risk are you willing to take? Nicaragua is a bargain if you are not afraid of Daniel Ortega. I personally do not think he will kill the goose that laid the golden egg. He may even make thing better.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
There are so many factors involved in choosing a location or even a country for a vacation home. How does one make that decision? There is bound to be an intelligent way to choose; but this is an emotion based decision. Does intelligence matter? I think it does. The heart has to have veto power though.
The activities desired has to be the first qualifier. Make a list of things to do on vacation. Make a list of places to choose from. Match up the two lists. Hopefully this will narrow the choices down some. Costs may or may not be a big factor. Check the airfare from home to the vacation home. Some places are accessible by car. What is the expected mode of travel. Golf clubs are not too bad on an airplane. Surfboards are tough. Windsurfers, kayaks and canoes are probably impossible. Can they be rented at the location; or can you store one at the vacation home.
If the vacation home is to be rented when not in use a financial analysis is a good idea. If it is not to be rented, how will the property be secured when it is not in use. In many places leaving a property vacant is like putting up a “move in free” sign. Getting a property back after someone moves in is nearly impossible. Possession is so hard to get on an occupied property that some places even offer “tenant insurance” to cover the rent and costs if a tenant quits paying and refuses to move.
What about security? Capital flows to the highest yield with the lowest risk. A person willing to acquire a property in a less secure environment can expect to pay less for an equivalent property. What type of risk are you willing to take? Nicaragua is a bargain if you are not afraid of Daniel Ortega. I personally do not think he will kill the goose that laid the golden egg. He may even make thing better.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
Tuesday, November 6, 2007
Coastal Properties
Coastal Properties
Because I’m in Brunswick County, NC right now the focus today is coastal properties. Even the properties that are not on water here are very expensive. Several years ago when I was here everything was really cheap. I have asked the local REALTORS why.
It seems that this area was “discovered” when I-40 came through. That was immediately followed by a sewer line along highway 11. This caused a proliferation of huge golf course communities with million dollar homes. Progress is not cheap though.
The area is quite low and marshy and wetlands must be preserved. The abundant wildlife is what gives the area its allure. They don’t want to kill the goose that lays the golden egg. The sewer system was very expensing. The county bought all of the existing sewer plants within its borders and connected everything else. There are places that are flatter than Brunswick county but not many. I can just imagine how much pumping is required for the sewage. Most places it moves by gravity. The tap fee is $10,000.
One thing that really amazes me is that the foreign developers have not discovered this place. There are challenges to development here; but they cannot compare with the challenges faced in Europe. The wetlands and the high water table and the scarcity of the building materials are the biggest challenges. A few of the smaller municipalities have anti-growth policies. Most of the county is waiting with open arms. Do you need to meet some Brunswick County REALTORS? Send me an email.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com . His email is david@segrestrealty.com
Because I’m in Brunswick County, NC right now the focus today is coastal properties. Even the properties that are not on water here are very expensive. Several years ago when I was here everything was really cheap. I have asked the local REALTORS why.
It seems that this area was “discovered” when I-40 came through. That was immediately followed by a sewer line along highway 11. This caused a proliferation of huge golf course communities with million dollar homes. Progress is not cheap though.
The area is quite low and marshy and wetlands must be preserved. The abundant wildlife is what gives the area its allure. They don’t want to kill the goose that lays the golden egg. The sewer system was very expensing. The county bought all of the existing sewer plants within its borders and connected everything else. There are places that are flatter than Brunswick county but not many. I can just imagine how much pumping is required for the sewage. Most places it moves by gravity. The tap fee is $10,000.
One thing that really amazes me is that the foreign developers have not discovered this place. There are challenges to development here; but they cannot compare with the challenges faced in Europe. The wetlands and the high water table and the scarcity of the building materials are the biggest challenges. A few of the smaller municipalities have anti-growth policies. Most of the county is waiting with open arms. Do you need to meet some Brunswick County REALTORS? Send me an email.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com . His email is david@segrestrealty.com
Saturday, November 3, 2007
The Lure of Water
The Lure of Water
It amazes me just how much the view of or access to water enhances the value of a property. People are willing to pay more, face hurricanes and typhoons and pay exorbitant prices for insurance just to be near water. What is it about the water?
Could it be the connection to the greater world? That could be the case on a navigable river or the ocean or inland waterway. What about these little mud-puddles in the middle of cities that are called ponds or lakes? Many of them are only breeding traps for mosquitoes. Could it be the energy that seems to come from the water? Could it be the restful feeling from watching the water or listening to the waves at night?
Whatever the reason, water adds value to property. It probably adds more than a garage or a deck and it requires no maintenance. Access to water is one of the things that is fueling today’s international second-home boom. Mexico, Central America and The Caribbean area are all benefiting. In Dubai the new developments involve building islands and increasing coastline. Developers in many areas are building lakes in their subdivisions and charging premiums for lake front and lake view lots. That is real value added.
How will climate change effect the water factor? Will previously water-front properties be dry or so dangerous that no one wants to live there? Will previously dry properties be water-front (or sea bottom)?
Do you want a property looking at or adjoining water? What is your motivation?
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
It amazes me just how much the view of or access to water enhances the value of a property. People are willing to pay more, face hurricanes and typhoons and pay exorbitant prices for insurance just to be near water. What is it about the water?
Could it be the connection to the greater world? That could be the case on a navigable river or the ocean or inland waterway. What about these little mud-puddles in the middle of cities that are called ponds or lakes? Many of them are only breeding traps for mosquitoes. Could it be the energy that seems to come from the water? Could it be the restful feeling from watching the water or listening to the waves at night?
Whatever the reason, water adds value to property. It probably adds more than a garage or a deck and it requires no maintenance. Access to water is one of the things that is fueling today’s international second-home boom. Mexico, Central America and The Caribbean area are all benefiting. In Dubai the new developments involve building islands and increasing coastline. Developers in many areas are building lakes in their subdivisions and charging premiums for lake front and lake view lots. That is real value added.
How will climate change effect the water factor? Will previously water-front properties be dry or so dangerous that no one wants to live there? Will previously dry properties be water-front (or sea bottom)?
Do you want a property looking at or adjoining water? What is your motivation?
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
Thursday, November 1, 2007
Buying Large Tracts of Land as an Investment Pt. 2
Pt. 2 Buying Large Tracts of Land as an Investment
There is a good strategy for buying land as an investment in South America. I would probably exclude the countries of Venezuela, Ecuador and Bolivia for now. In many countries of the region large working farms, hunting preserves and timber areas can be purchased.
Campesinos Sin Tierra and The Mayennes are still a concern; but by operating the property as an ongoing business with onsite staff reduces the odds of encroachment. This also precludes nationalization for the reason of “underutilization”. Hugo Chavez and the other leaders who view him as a role model are exceptions to this possibility. The problem is not that they are socialist or leftist but that they are unpredictable.
In Brazil, Argentina, Uruguay and Chile the property systems are well developed enough that good title is probable. Title insurance is available in these countries. Title insurance is an absolute must. In Peru and Colombia there are also many good opportunities. Colombia offers rather severe security risks in some areas. The second rule of international real estate is “Capital flows to the highest yield with the lowest risk”. A natural corollary to this rule is that the higher the risk the higher the yield. Some chances are worth taking.
My pick of countries for large land purchase are Argentina and Uruguay. If you have an interest in land anywhere in South America, I can help you.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
There is a good strategy for buying land as an investment in South America. I would probably exclude the countries of Venezuela, Ecuador and Bolivia for now. In many countries of the region large working farms, hunting preserves and timber areas can be purchased.
Campesinos Sin Tierra and The Mayennes are still a concern; but by operating the property as an ongoing business with onsite staff reduces the odds of encroachment. This also precludes nationalization for the reason of “underutilization”. Hugo Chavez and the other leaders who view him as a role model are exceptions to this possibility. The problem is not that they are socialist or leftist but that they are unpredictable.
In Brazil, Argentina, Uruguay and Chile the property systems are well developed enough that good title is probable. Title insurance is available in these countries. Title insurance is an absolute must. In Peru and Colombia there are also many good opportunities. Colombia offers rather severe security risks in some areas. The second rule of international real estate is “Capital flows to the highest yield with the lowest risk”. A natural corollary to this rule is that the higher the risk the higher the yield. Some chances are worth taking.
My pick of countries for large land purchase are Argentina and Uruguay. If you have an interest in land anywhere in South America, I can help you.
David Segrest is a REALTOR with Segrest International REALTORS. His webpage is http://www.segrestrealty.com
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