International Second Homes Market Where the action is at What it means for you REALTOR resources to

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International Second Homes MarketWhere the
action is atWhat it means for you REALTOR
resources to help you

• International Real Estate Expo and Conference
• Las Vegas November 19, 2005
• Jeff Hornberger,
• International Market Development Manager,
• National Association of REALTORS, Chicago IL

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Why focus on International and Second Homes?

• 20 of NAR members conduct some International
• 2nd homes represents 35 of real estate sales
  16 increase in one year.
• 4 million Americans live abroad.
• You sell real estate in Las Vegas

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Major Challenges of this niche market

• Inbound Outbound
• lack of market data.
• Outbound
• uneven business practices
• connecting with the right people.
• Time and financial commitment are required.

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NAR Profile of 2nd Home Buyers

• 2nd homes are 35 of existing single-family,
  condo and new home sales in 2004, an increase of
  16 over 2003.
• Methodology of survey 100,000 home buyers
  through Experian (via county records), 8.2
  response rate.

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NAR Profile of 2nd Home Buyers international
data?
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Immigration destinationsNote 2004 data

• US Total 1,221,013
• California 273,665
• New York 129,260
• Texas 127,956
• Florida 101,894
• Illinois 63,662
• New Jersey 56,265

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Foreign Visitors to the USA regional breakdown
of totals
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Foreign Direct Investment in U.S. Real Estate
In Millions
Source Bureau of Economic Analysis, NAR Estimates
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Foreign Direct Investment Position in U.S. (by
region)

• Top 10 Investing Countries
• United Kingdom
• Japan
• Germany
• Netherlands
• France
• Switzerland
• Canada
• Luxembourg
• UK Islands/Caribbean
• Ireland

Source Bureau of Economic Analysis, 2004 data
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Foreign Direct Investment Position in U.S. Real
Estate (by region)

• Top 10 Investing Countries
• Japan
• United Kingdom
• Germany
• Canada
• Netherlands
• UK Islands/Caribbean
• Australia
• Netherlands Antilles
• Singapore
• Bermuda
• Panama

Source Bureau of Economic Analysis, 2004 data
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Top Global Cities for Real Estate Investment

• Global
• Washington, DC
• London
• Tokyo
• New York City
• Paris

• US
• Washington, DC
• New York City
• Los Angeles
• San Francisco
• Miami/Fort Lauderdale/West Palm Beach
• Chicago

Source Survey conducted by Association of
Foreign Investors in Real Estate, 2004
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Source of Foreign Holdings of U.S. Commercial
Properties
Source Bureau of Economic Analysis
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International Home Buyers in FloridaNAR and FAR
study results (view full results at
www.realtor.org/research)
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International Buyers in FL key findings

• Overall home sales 15.
• Country of origin 60 Europe / 30 Lat Am
• Financing 36 cash (vs 8 for US buyers).
• Reasons for buying 40 investment, 40 vacation,
  20 work (1/2 stay less than 2 months per year)
• Price Spent 100,000 more than US buyer
• Other markets Canada, Venezuela, Germany (7
  each)

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FAR study what it means for Las Vegas

• Foreign visits to Nevada 1.37 million 8 of all
  US travelers (5th most popular destination in
  USA).
• Top countries Canada, UK, Mexico, Japan are top
  visitor markets.
• Key markets
• UK (top Europe market)
• Mexico (ex, Icon 12 overall sales to Mexicans)
• Asia? (China/Macao Cotai strip, Japan?)

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Why do Latin Americans buy 2nd homes in
Florida?flight capital, proximity, comfort level
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The International 2nd Home Market Abroad
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Why should you care?

• Competing markets.
• Think about these markets as you create
  international marketing plans.
• Second home purchases are pouring to these areas.
• Offer options to your clients earn referral fees
  abroad.

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US citizens living abroad

• Mexico 1,036,300
• Canada 687,000
• UK 224,000
• Germany 210,000
• Italy 168,000
• Philippines 105,000
• Australia 102,000
• France 101,000
• Spain 94,000
• Israel 94,000
• All other countries 1,247,705

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Quality of Life best countries

• Variables used in scoring
• Leisure Culture
• Economy
• Environment
• Freedom
• Healthcare
• Infrastructure
• Risk Safety
• Climate
• Real Estate

• The Top Ten
• United States (86)
• France (85)
• Australia (84)
• Switzerland (84)
• New Zealand (82)
• Austria (81)
• Canada (80)
• Belgium (78)
• Denmark (77)
• Finland (76)

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Global Retirement Index the best countries

• The Top Ten
• Panama (81)
• France (80)
• Malta (78)
• Mexico (76)
• Romania (75)
• Italy (73)
• Cyprus (72)
• Nicaragua (71)
• Uruguay (70)
• 28 USA 54

• Variables used in scoring
• Real Estate
• Special Benefits
• Cost of living
• Culture
• Health
• Infrastructure
• Safety/Stability
• Climate

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Where NAR/CIPS members list properties

• Costa Rica
• Honduras
• Fiji
• Belize
• Nicaragua
• El Salvador
• UAE (Dubai)
• Dominican Republic
• Panama
• Bahamas

 
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2nd Home Markets in Latin America

• Opportunities
• Geographical proximity and US linkages.
• Low cost beachfront property
• US homeowners are rich in home equity

• Obstacles
• Uneven business practices
• Lack of market data and information.

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Hot 2nd Home Markets Latin America

• Established
• Mexico Cancun, Cabos
• Costa Rica
• Caribbean Islands (Dominican Republic, Bahamas,
  Belize)

• Up and Coming
• Mexico Rivera Maya, Escalera Nautica
• Panama
• Nicaraguan Riviera?

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2nd Homes Market in Europe

• Obstacles
• Euro-Dollar exchange rate problem for both US
  Europe.
• Uneven business practices
• Referrals not as common as USA.

• Opportunities
• Quality of life
• Southern Mediterranean markets are the Florida
  of Europe
• Same investor base.

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International 2nd Home Markets for Europeans the
hotspots

• Africa Morocco and Tunisia
• Latin America Dominican Republic and Northeast
  Brazil
• E Europe Croatia, Malta

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Other International 2nd homes hotspots flight
capital hubs

• Panama good alternative to Miami, no Visas! (ex,
  Colombia, Peru, Venezuela)
• Dubai Palms (2nd homes haven of Arab world)
• South Africa (oasis on troubled continent)

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Creating an action plan to profit from the
international 2nd homes marketTips and REALTOR
resources for you
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TIP 1 GET OUT THERE!
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SIMA Madrid, Spain the largest 2nd Homes show
on Earth

• 140,000 visitors, 10,000 real estate
  professionals, 1,000 intl real estate
  professionals from 45 countries (and 200
  REALTORS!).
• Spain is the Florida of Europe where 100,000
  2nd homes are sold annually UK key market.
• Opportunities and visibility for REALTORS.
• Mark your calendar April 5-7, 2006
• Visit WWW.SIMA2006.ORG

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Other Expo/Conference opportunities

• UK over 35 international holiday homes expos
  open to the public.
• Mexico Tradex (?)
• Florida Miami International Real Estate
  Congress (June 15, 2006)
• International NAR Convention and Expo (early
  November 2006).
• 2nd Homes NAR Resort Symposium (February 4-7,
  2006).

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Outbound 2nd Home MarketPanama Spectacular!
March 13-17, 2006
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TIP 2 Utilize international 2nd homes online
resources
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Register today on 2 websites REALTOR.org and
World Properties.com

• Identify yourself as a resort and international
  REALTOR and get in the loop.
• World Properties get started today by
  registering! Link to your site!

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Surf international 2nd home websites
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TIP 3 Get educated
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Take the TRC today at www.realtor.org/internationa
l

• Take course online
• One time fee of 99.
• Time commitment 6 hours maximum
• Benefits learn to do intl referrals, your info
  on online database
• Multiple languages
• Set yourself apart from the crowd before its too
  late!

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TIP 4 Join or form a REALTOR International
local Council
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International REALTOR Councils

• Tools to help you find out about how
  international works locally ex, alliances with
  chambers of commerce, local international
  organizations.
• Networking events.
• Trade missions.
• Your first point of contact.
• There are 15 local councils in Florida GLVAR has
  one.
• Miami leading international council in the USA.

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TIP 5 Tap into NARs International Presidents
Liaisons or PLs
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NARs PL Corps your intl mentors and guides

• Knowledge of international market, local
  contacts, and organized real estate at your
  disposal for advice and mentoring.
• Required to travel in their country once a year.
• They can help you navigate the waters.
• Appointed by NAR President

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TIP 6 Create a niche
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Creating a niche

• Know the inbound and outbound leading indicators
  you will become the expert (Las Vegas focus on
  UK and Mexico. Asia?)
• Its a crowded field Set yourself apart.
• Utilize existing FREE resources and
  infrastructure at 4 levels local, state,
  national, international.

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THANK YOU!Obrigado Danke Gracias
Cheers Merci Grazie MahaloSukranXieXie
TodaArigato Spasiba dank U wel
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U.S. Direct Investment Abroad by Region, 2004
Source Bureau of Economic Analysis