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
Thursday, August 21, 2008
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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