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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. Page 2. Are You Already Global?.
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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 Page 2
Are You Already Global? Try the self- assessment quiz on page 5 Page 5
In This Chapter • Global economy, local real estate markets • Global flow of capital and wealth • Real estate as an investment • Trends and indicators Use this information to monitor trends and indicators and synthesize the information into meaningful knowledge for business planning and decisions. Page 8
Global EconomyLocal 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 Page 9
A Shrinking World? • Spread of capitalism • New wealth seeks opportunities and safety in real estate Page 12
Most Stable and Secure Page 13
Best Capital Appreciation Page 13
E.U. NAFTA GAFTA APEC COMESA ASAEN APEC MERCOSUR Page 15
Connectivity Page 16
Round-the-clock financial world Instant access to market signals NikkeiTokyo Dow, S&P500, NASDAQ New York CAC Paris DAX Frankfurt Hang SengHong Kong FTSE 100 London Page 17
Interdependence and Specialization • Advantage: economic efficiencies and benefits • Disadvantage: dependence on other countries • Workers’ remittances = triple official government foreign aid Page 18
Ease of Travel • Affordable airfares • Convenient flights to hub cities & resorts • Immigrants maintain homeland ties • U.S. expatriate retirees Page 19
Capital—What Flows? • Currency • Assets • Capital goods • Debt • Credit • Information • Technology • Innovation Page 19
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 Page 20
Staying In the Know How can you catch the right signals? • Select, monitor, compare key indicators • The Economist, Financial Times, Wall Street Journal • Government Web sites • NAR Economists’ Outlook Page 22
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 Page 23
Key Point Review Page 28