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Global Real Estate: Local Markets. introduction. Course Overview. How the Global Economy Shapes Your Market Your Hometown Global Market Cultural Literacy for Business Serving the Global Market Networking Power Planning>Action>Results. Exam and Activities. 30-question exam Open-book
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Global Real Estate: Local Markets
Course Overview • How the Global Economy Shapes Your Market • Your Hometown Global Market • Cultural Literacy for Business • Serving the Global Market • Networking Power • Planning>Action>Results
Exam and Activities • 30-question exam • Open-book • Multiple-choice • Activities • Group assignments • Exercises • Discussions
Earning the CIPS Designation • Global Real Estate: Local Markets (all students) • Global Real Estate: Transaction Tools (U.S. students) • The Business of U.S. Real Estate (Non U.S. students) • Three elective courses: • Europe and International Real Estate • Asia/Pacific and International Real Estate • The Americas and International Real Estate • At Home with Diversity (U.S. students)
Earning the CIPS Designation • One of the following courses can count as one elective option: • CRS 200 – Business Planning and Marketing for the Residential Specialist • CRS 204 – Creating Wealth through Residential Real Estate Investments • CCIM - Residential Real Estate Financial Analysis • One Real Estate Advanced Practices (REAP) module from the Council of Residential Specialists (CRS) (Non U.S. students) • International real estate experience- • 100 Points
In This Chapter • Global economy, local real estate markets • Global flow of capital and wealth • Real estate as an investment • Trends and indicators
Global Economy, Local Markets • Global economic forces impact your business • Real estate is a storehouse of wealth • Which indicators and trends should you monitor? • Design a personal data plan
A Shrinking World? • Spread of capitalism • New wealth seeks opportunities and safety in real estate
Most Stable and Secure Source: Association for Foreign Investors in Real Estate
Best Capital Appreciation Source: Association for Foreign Investors in Real Estate
Alliances APEC E.U. NAFTA GAFTA COMESA APEC ASAEN MERCOSUR
Connectivity—Internet Source: Internet World Stats
Connectivity—Facebook Source: Internet World Stats
Round-the-Clock Financial Markets NikkeiTokyo CAC Paris Dow, S&P500, NASDAQ New York DAX Frankfurt FTSE 100 London Hang SengHong Kong
Interdependence and Specialization • Advantage: economic efficiencies and benefits • Disadvantage: dependence on other countries • Workers’ remittances = 3x official government foreign aid
Ease of Travel • Affordable airfares • Convenient flights to hub cities and resorts • Immigrants maintain homeland ties • U.S. expatriate retirees
Twenty-first Century Workforce • Global businesses and their workers enter new markets • Remote workers choose to live and work apart from company offices • Entrepreneurs start businesses from anywhere in the world
Capital—What Flows? • Currency • Assets • Capital goods • Debt • Credit • Information • Technology • Innovation
Capital Flees: • Falling returns and values • Ownership restrictions • Movement restrictions • Tight, expensive credit • Capital Seeks: • Acceptable risk/return • Favorable ROI • Quality properties • Affordable and available credit • Orderly, transparent markets
Capital Flow Theories • Bargain Rate Theory • Loss Avoidance Theory • Market Linkage Theory
Staying in the Know • Select, monitor, compare key indicators • The Economist, Financial Times, Wall Street Journal • Government Web sites • NAR Economists’ Outlook
Indicators • GDP • Employment • Consumer Price Index • Labor Productivity • Retail Sales • Exchange Rates • Interest Rates • Flow of Funds • Mortgage Rates • Imports, Exports, and Trade Balance • Direct Investment Abroad • Foreign Direct Investment