Title: International Second Homes Market Where the action is and how to make the most of it
1International Second Homes MarketWhere the
action is and how to make the most of it
- Miami International Real Estate Congress
- Jeff Hornberger, International Market Development
Manager, - National Association of REALTORS, Chicago IL
2Why focus on International and Second Homes?
- International real estate business is conducted
by 20 of all NAR members. - Second Homes represented 35 of existing single
family, condo and new home sales (2004), 16
increase from 2003. - 4 million Americans live abroad.
- You sell real estate in Florida
3Major Challenges of this niche market
- Inbound Outbound lack of specific data and
statistics one must rely on leading indicators. - Outbound uneven business practices and
connecting with the right people. - Time commitment and financial commitment are
required.
4NAR Profile of 2nd Home Buyers 2005
- 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.
5NAR Profile of Second Home Buyers key indicators
for intl.
6Intl 2nd Homes Key Indicator?Top Immigration
Destinations
- US Total
- California
- New York
- Texas
- Florida
- Illinois
- New Jersey
- 1.34 million
- 344,000
- 159,000
- 135,000
- 122,000
- 75,000
- 60,000
7Foreign Arrivals to the USA regional breakdown
of totals
8Foreign Direct Investment Position in U.S. Real
Estate by Region
- Top 10 Investing Countries
- Japan
- Canada
- Netherlands
- Germany
- UK/Caribbean
- Switzerland
- Bermuda
- Bahamas
- Panama
- Hong Kong
9Top 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
10Making sense of the data unscientific 2nd home
ownership
- Germany100,000 Germans own 2nd homes in FL,
2,000 properties/yr sold (75 West Coast FL) - UK 50,000 own 2nd homes mainly in Central
Florida. - Brazil 50,000 own property in South FL.
- Mexico 10,000 and growing
- Source Excellent Real Estate Services in
conjunction with a 2003 survey of Germans living
in Florida (Carsten Werner, President and Stefan
Spieske, General Manager). See
www.exellent4you.com for more information.
11Why Latin America 2nd homes in FL?flight
capital, proximity, comfort level
12Putting it all together for FloridaStudy/survey
by Vani Ungapen, FAR Research Director
13Intl 2nd Homes where the action is
14US 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
15Quality of Life 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)
- Cost of living
- Leisure Culture
- Economy
- Environment
- Freedom
- Healthcare
- Infrastructure
- Risk Safety
- Climate
16Global Retirement Index the top ten
- Panama (74)
- France (69)
- Nicaragua (67)
- Croatia (66)
- Romania (66)
- New Zealand (64)
- Mexico (64)
- Malta (63)
- Ecuador (87)
- Slovenia (75)
- Real Estate
- Special Benefits
- Cost of living
- Culture
- Health
- Infrastructure
- Safety/Stability
- Climate
17Where NAR/CIPS members list properties
- Costa Rica
- Honduras
- Fiji
- Belize
- Nicaragua
- El Salvador
- United Arab Emirates
- Dominican Republic
- Panama
- Bahamas
182nd Home Markets in Latin America
- Opportunities
- Geographical proximity and Florida linkages.
- Beachfront property
- Florida homeowners are rich in home equity
- Obstacles
- Uneven business practices
- Lack of market data and information.
19Hot 2nd Home Markets Latin America
- Established
- Mexico
- Costa Rica
- Caribbean Islands (Dominican Republic, Bahamas,
Belize)
- Up and Coming
- Mexico
- Panama
- Nicaragua
202nd Homes Market in Europe
- Obstacles
- Euro-Dollar exchange rate problem for both US
Europe. - Uneven business practices, no culture of
referrals.
- Opportunities
- Quality of life
- Southern Mediterranean markets are the Florida
of Europe
21International 2nd Home Markets for Europeans the
hotspots
- Africa Morocco and Tunisia
- Latin America Dominican Republic and Northeast
Brazil - E Europe Croatia, Malta
22Other 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)
23HOW TO MAKE THE MOST OF IT 6 TIPS
24TIP 1 GET OUT THERE!
25SIMA Madrid, Spain the largest 2nd Homes show
on Earth
- 100,000 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. - Opportunities and visibility for REALTORS.
- Mark your calendar April 4-7, 2006
26(No Transcript)
27NAR Annual Convention and Expo San Francisco
Oct 28-31, 2005
- International seminars and social events a
resort and international track. - Over 1,500 international attendees.
- The International Networking Center is a great
place for business exchange. - Booths 2,800
28NAR Resort Symposium February 4-7, 2006
29Panama Spectacular! March 13-17, 2005
30TIP 2 Utilize intl 2nd homes online resources
31 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!
32Surf international 2nd home websites
33TIP 3 Get educated
34Take 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!
35TIP 4 Join or form a REALTOR International
local Council
36International 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
37TIP 5 Tap into NARs International Presidents
Liaisons or PLs
38NARs 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
39TIP 6 Create a niche
40Creating a niche
- Know the inbound and outbound leading indicators
you will become the expert. - Its a crowded field Set yourself apart.
- Utilize existing FREE resources and
infrastructure at 4 levels local, state,
national, international.
41Thank You Merci Obrigado Danke Gracias Cheers
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