1. GLOBAL REAL ESTATE
Local Markets

2. 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
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3. Try the self- assessment quiz on page 5
Are You Already Global?
Try the self- assessment quiz on page 5
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4. 1. How the Global Economy Shapes Your Market
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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.
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6. 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
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7. Page 10-11

8. New wealth seeks opportunities and safety in real estate
A Shrinking World?
Spread of capitalism
New wealth seeks opportunities and safety in real estate
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9. Most Stable and Secure
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10. Best Capital Appreciation
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11. NAFTA
MERCOSUR
APEC
ASAEN
GAFTA
COMESA
E.U.
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12. Connectivity
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13. Round-the-clock financial world Instant access to market signals
Nikkei Tokyo
Dow, S&P500, NASDAQ
New York
CAC
Paris
Round-the-clock financial world Instant access to market signals
DAX Frankfurt
Hang Seng Hong Kong
FTSE 100 London
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14. Interdependence and Specialization
Advantage: economic efficiencies and benefits
Disadvantage: dependence on other countries
Workers’ remittances = triple official government foreign aid
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15. Ease of Travel Affordable airfares
Convenient flights to hub cities & resorts
Immigrants maintain homeland ties
U.S. expatriate retirees
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16. Capital—What Flows? Currency Credit Assets Information Capital goods
Technology
Debt
Innovation
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17. Capital Flees: Capital Seeks: Falling returns and values
Acceptable risk/return
Favorable ROI
Quality properties
Affordable and available credit
Orderly, transparent markets
Capital Flees:
Falling returns and values
Ownership restrictions
Movement restrictions
Tight, expensive credit
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18. Capital Flow Theories Bargain Rate Theory Loss Avoidance Theory
Capital flows to the point of relative weakness. Where prices are at bargain rates and other currencies have more buying power.
Loss Avoidance Theory
When values decline foreign investors avoid assets which may lose value and any advantage gained from exchange rates.
Market Linkage Theory
A single global system interlinks the world’s economies which rise and fall together.
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19. How can you catch the right signals?
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
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20. Indicators GDP Flow of Funds Employment Mortgage Rates
Consumer Price Index
Imports, Exports and Trade Balance
Labor Productivity
Direct Investment Abroad
Retail Sales
Foreign Direct Investment
Exchange Rates
Interest Rates
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21. Key Point Review
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