Global Real Estate:Transaction Tools

INTRODUCTION2

Course Overview

1.Researching a Market at Home or Abroad

2.The Metric World3.Money Concepts4.Tax Matters5.U.S. Visas6.Value Concepts7.Compiling Transaction Data for Decision

Making

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Exam and Activities

• 30-question exam– Open-book– Multiple-choice

• Activities– Group

assignments– Exercises– Discussions

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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)

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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

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CHAPTER 1: RESEARCHING A MARKET AT HOME OR ABROAD

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In This Chapter

• Research data • Compile a dossier • Evaluate pros and cons• Share decision-making information

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Market Knowledge=Value Proposition

How does your market How does your market compare to others?compare to others?

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Country Assessment Model

• Research, organize, and evaluate market data

• Data available?• How much detail?• Keep data up to date

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Geography

• Context• Natural world shapes commerce• Natural resources create wealth• Favorable characteristics?

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Real Estate

• Volume and variety • Potential commission income• Supply and demand• Regulations• Market support• Investment returns and value appreciation

trends

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Demographics

• Population growth • Labor force size and composition • Young population drives demand for real

estate• Job creation rate • Consumption and savings

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Government

• Attitudes, structures, stability • Trade agreements and alliances• Strong central government—benefit or

obstacle?• Can foreigners own real estate?

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Economy and Business

• Economic philosophy

• Competitive globally

• Low inflation rates

• Mix of advanced manufacturing, agriculture, services, technology

• Imports and exports

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Infrastructure

• Civic institutions • Universities• Medical facilities• Reliable systems• Roads, ports, airports• Transportation for people and goods

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Beyond the Basics

• Ethnicities, languages, religions, traditions• Business and social etiquette• Tolerance• Women’s rights

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Networking

• Business and real estate organizations• Real estate events and expositions• Global organizations • International events

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Assessing Your Hometown Market

• Untapped opportunities?

• What is already happening in the market?

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Skill Practice: Assessing Your Local Market

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Key Point Key Point ReviewReview