global real estate local markets
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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?. - PowerPoint PPT PresentationTRANSCRIPT
Slide 1-1
GLOBAL REAL ESTATE
Local Markets
Slide 1-2
Course Overview
1.How the Global Economy Shapes Your Market
2.Your Hometown Global Market
3.Cultural Literacy for Business
4.Serving the Global Market
5.Networking Power
6.Planning>Action>Results
Page 2
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Try the self- assessment
quiz on page 5
Are You Already Global?
Page 5
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1. How the Global Economy Shapes Your Market
Page 8
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Global economy, local real estate markets
Global flow of capital and wealth
Real estate as an investment
Trends and indicators
In This Chapter
Use this information to monitor trends and indicators and synthesize the information into meaningful knowledge for business planning and decisions.
Page 8
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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
Slide 1-7Page 10-11
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A Shrinking World?
Spread of capitalism New wealth seeks
opportunities and safety in real estate
Page 12
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Most Stable and Secure
0%
10%
20%
30%
40%
50%United States
Germany
Canada
FranceAustralia U.K.
Page 13
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Best Capital Appreciation
0%
10%
20%
30%
40%
50%United States
U.K.
China
Brazil Germany Canada
Page 13
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NAFTA
MER
COSU
R
APEC
APEC
ASAEN
GAFTA
COMESA
E.U.
Page 15
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Connectivity
Asia, 42%
Europe, 24%
North Amer-
ica, 14%
Latin Amer-
ica; 10%
Africa; 3%Middle East; 3%
Oceania; 1%
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Round-the-clock financial worldInstant access to market signals
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FTSE 100 London
Hang SengHong Kong
DAX Frankfurt
CACParis
NikkeiTokyo
Dow, S&P500, NASDAQNew York
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Interdependence and Specialization
Advantage: economic efficiencies and benefits
Disadvantage: dependence on other countries
Workers’ remittances = triple official government foreign aid
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Affordable airfares Convenient flights to
hub cities & resorts Immigrants maintain
homeland ties U.S. expatriate
retirees
Ease of Travel
Page 19
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Capital—What Flows?
Currency
Assets
Capital goods
Debt
Credit
Information
Technology
Innovation
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Capital Seeks:Acceptable risk/returnFavorable ROIQuality propertiesAffordable and available creditOrderly, transparent markets
Capital Flees:Falling returns and values
Ownership restrictions Movement restrictions Tight, expensive credit
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Capital Flow Theories
Bargain Rate 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.
Page 21
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Select, monitor, compare key indicators
The Economist, Financial Times, Wall Street Journal
Government Web sites
NAR Economists’ Outlook
Staying In the Know
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How can you catch
the right signals?
Slide 1-20
IndicatorsGDP
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
Slide 1-21
Key Point Review
Page 28