World on FIREWorld on FIRE

Real Estate Markets and Sustainable Development: Real Estate Markets and Sustainable Development: Property Rights and Access to Credit Around the WorldProperty Rights and Access to Credit Around the World

April 29, 2008April 29, 2008Washington, DCWashington, DC

MissionMission

…………create viable, private real estate create viable, private real estate markets worldwide which are markets worldwide which are essential for strong democracies and essential for strong democracies and developing economies. developing economies.

Improved Standards of LivingImproved Standards of Living Improved DomicilesImproved Domiciles Opportunities for Wealth Creation Opportunities for Wealth Creation

Through Private Property OwnershipThrough Private Property Ownership

Property Rights & Property Rights & Access to Credit for the PoorAccess to Credit for the Poor

Formation of civil society Formation of civil society organizations, i.e. associationsorganizations, i.e. associations

Establishment of appraisal programs Establishment of appraisal programs create standards for real property create standards for real property valuesvalues

Partnerships with government Partnerships with government professionalize the real estate professionalize the real estate industryindustry

U.S. Real Estate Success U.S. Real Estate Success Shared with Emerging MarketsShared with Emerging Markets

Though 2007 was a challenging year for Though 2007 was a challenging year for housing with activity far below normal, housing with activity far below normal, historically on average, one can anticipate historically on average, one can anticipate the contributions housing has to the GDP the contributions housing has to the GDP in the USA.in the USA.• 20% of GDP are accounted for by housing20% of GDP are accounted for by housing• 1.5 million housing starts per year1.5 million housing starts per year• 5.3 million Existing Home Sales per year5.3 million Existing Home Sales per year• 900,000 New Home Sales per year900,000 New Home Sales per year• 68% homeownership rate68% homeownership rate• Home equity is the largest source of wealth for Home equity is the largest source of wealth for

most Americansmost Americans

U.S. Example – Real Estate’s U.S. Example – Real Estate’s Affect on the EconomyAffect on the Economy

Improving and facilitating the process and arrangements by Improving and facilitating the process and arrangements by which real estate is owned, bought, leased, developed, which real estate is owned, bought, leased, developed, financed and transferred, encourages private investment, financed and transferred, encourages private investment, generates jobs and economic growth and raises the generates jobs and economic growth and raises the standard of living. US data follow:standard of living. US data follow:

Job creation - U.S. ExperienceJob creation - U.S. Experience• 1,000 homes 1,000 homes • 2,448 jobs 2,448 jobs • $79.4 million wages$79.4 million wages• Existing sales - $132.5 BillionExisting sales - $132.5 Billion• Repairs - $34.5 BillionRepairs - $34.5 Billion

Tax base creationTax base creation• 70% of local taxes from Real Property70% of local taxes from Real Property• Income taxes - state and localIncome taxes - state and local• Sales tax on goods and servicesSales tax on goods and services

Critical ElementsCritical Elements

LawsLaws SystemsSystems Standards of PracticeStandards of Practice

Know HowKnow How

Conflict ResolutionConflict Resolution InformationInformation TransparencyTransparency Market PlaceMarket Place

Outcomes of IRPF ProgramsOutcomes of IRPF Programs

Professional AssociationsProfessional Associations Professional StandardsProfessional Standards

Brokers, Appraisers, Property Brokers, Appraisers, Property Managers, Executive OfficersManagers, Executive Officers

Lobbying, Libraries, LicensingLobbying, Libraries, Licensing CoursesCourses

Brokerage Management, Association Development, Brokerage Management, Association Development, Executive Officer Training, Appraisal, Property Executive Officer Training, Appraisal, Property Management, Marketing, MLS’s, Lobbying, Strategic Management, Marketing, MLS’s, Lobbying, Strategic Planning, Investment Real Estate, etc. Attendees include Planning, Investment Real Estate, etc. Attendees include private and public sector players.private and public sector players.

Outcomes of IRPF ProgramsOutcomes of IRPF Programs

75 Trade Associations75 Trade Associations

20+ Countries20+ Countries

150,000+ Real Estate Professionals150,000+ Real Estate Professionals

Partnership with USAID Partnership with USAID

CrossroadsCrossroads

Body of Knowledge TransferableBody of Knowledge Transferable

Emerging Market Needs UniversalEmerging Market Needs Universal

Needs Remain particularly in AfricaNeeds Remain particularly in Africa

USAID EncouragementUSAID Encouragement

A Redefined ScopeA Redefined Scope International Versus Central EuropeInternational Versus Central Europe

Eastern European Real Property Foundation becomesEastern European Real Property Foundation becomes

International Real Property AssociationInternational Real Property Association

All Impediments to Sound MarketsAll Impediments to Sound Markets

Integrated SolutionsIntegrated Solutions

USAID Market AssessmentsUSAID Market Assessments

Strategic RelationshipsStrategic Relationships

Strategic RelationshipsStrategic Relationships Solution FocusedSolution Focused Related Industry Groups and Dedicated Related Industry Groups and Dedicated

Problem SolversProblem Solvers Recent Examples:Recent Examples:

Services Sector Education and Training Authority – South AfricaServices Sector Education and Training Authority – South AfricaNational Housing Bank - IndiaNational Housing Bank - IndiaPragma – UkrainePragma – UkraineShore Bank - AzerbaijanShore Bank - AzerbaijanAppraisal InstituteAppraisal InstituteUrban Land Institute (ULI)Urban Land Institute (ULI)Association of Real Estate License Laws Officials (ARELLO)Association of Real Estate License Laws Officials (ARELLO)REALTOR Institutes, Societies and Councils: CCIM, IREM, CRB, CRSREALTOR Institutes, Societies and Councils: CCIM, IREM, CRB, CRS

IRPF’s Activities in South AfricaIRPF’s Activities in South Africa Partnership with Services SETA, government of Partnership with Services SETA, government of

Republic of So. AfricaRepublic of So. Africa

Tremendous Need for training programs for Tremendous Need for training programs for Previously Disadvantaged Individuals (PDI’s)Previously Disadvantaged Individuals (PDI’s)• CRB, CRS, IREMCRB, CRS, IREM• Lobbying and AdvocacyLobbying and Advocacy• Train the TrainerTrain the Trainer

Strengthening of Institute of Estate Agents of Strengthening of Institute of Estate Agents of South AfricaSouth Africa

IRPF’s Activities in UkraineIRPF’s Activities in Ukraine

Successful Brokerage Training; Successful Brokerage Training; LicensingLicensing

Assistance with credit access leads Assistance with credit access leads to additional mortgagesto additional mortgages

Progress in strengthening real Progress in strengthening real property association institutional property association institutional capacity and cooperationcapacity and cooperation

IRPF’s Activities in AzerbaijanIRPF’s Activities in Azerbaijan

Brokerage Office Management and Brokerage Office Management and Sales Training Sales Training

Increase in number of mortgages Increase in number of mortgages through development of Mortgage through development of Mortgage Toolkits.Toolkits.

Questions? Questions?

Norman Flynn, President and CEONorman Flynn, President and CEOIRPFIRPF

430 N. Michigan Ave.430 N. Michigan Ave.Chicago, IL USAChicago, IL USA(312) 329-8692(312) 329-8692

nflynn@norm-flynn.comnflynn@norm-flynn.com