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International 2nd Homes Market: US and Foreign Buyers

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International 2nd Homes Market: US and Foreign Buyers Congreso CANIBIR - Nicaragua Jeff Hornberger, International Market Development Manager, – PowerPoint PPT presentation

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Title: International 2nd Homes Market: US and Foreign Buyers


1
International 2nd Homes Market US and Foreign
Buyers
 Guatemala  
 Guatemala  
 Guatemala  
 Guatemala  
 Guatemala  
 Guatemala  
 El Salvador  
 El Salvador  
 El Salvador  
 El Salvador  
 El Salvador  
 El Salvador  
 
 
 
 
 
 
 
 
 Honduras  
 Honduras  
 Honduras  
 Honduras  
 Honduras  
 Honduras  
 Nicaragua  
 Nicaragua  
 Nicaragua  
 Nicaragua  
 Nicaragua  
 Nicaragua  
 Costa Rica  
 Costa Rica  
 Costa Rica  
 Costa Rica  
 Costa Rica  
 Costa Rica  
 Panama  
 Panama  
 Panama  
 Panama  
 Panama  
 Panama  
 Dominican Republic  
 Dominican Republic  
 Dominican Republic  
 Dominican Republic  
 Dominican Republic  
 Dominican Republic  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  • Congreso CANIBIR - Nicaragua
  • Jeff Hornberger,
  • International Market Development Manager,
  • National Association of REALTORS, Chicago IL
  • jhornberger_at_realtors.org

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




      
      
2
International 2nd Homes Making Dreams Come True!
 Guatemala  
 Guatemala  
 Guatemala  
 El Salvador  
 El Salvador  
 El Salvador  
 
 
 
 
 Honduras  
 Honduras  
 Honduras  
 Nicaragua  
 Nicaragua  
 Nicaragua  
 Costa Rica  
 Costa Rica  
 Costa Rica  
 Panama  
 Panama  
 Panama  
 Dominican Republic  
 Dominican Republic  
 Dominican Republic  
 
 
 
 
 
 
 
 
 
 



          
 
 
 
 
 
 
 
 
 
 


      
3
A World of Opportunity international 2nd homes
market
  • Understand your competing markets.
  • New opportunities for your investors.
  • Earn international referral fees abroad.
  • The industry is new, innovative, and cutting
    edge.
  • Have fun

4
Challenges of this niche market for REALTORS
 Guatemala  
 Guatemala  
 Guatemala  
 El Salvador  
 El Salvador  
 El Salvador  
 
 
 
 
 Honduras  
 Honduras  
 Honduras  
 Nicaragua  
 Nicaragua  
 Nicaragua  
 Costa Rica  
 Costa Rica  
 Costa Rica  
 Panama  
 Panama  
 Panama  
 Dominican Republic  
 Dominican Republic  
 Dominican Republic  
 
 
 
 
 
 
 
 
 
  • Inbound Outbound
  • lack of market data.
  • Outbound
  • uneven business practices
  • connecting with the right people.
  • Time and financial commitment are required.

 
 
 
 
 
 
 
 
 
 
 


      
5
NAR Profile of 2nd Home Buyers
2003 2004 2005
2nd Homes 2.4 million 2.8 million 3.34 million
Vacation 850,000 1 million (36) 1.02 million
Investment 1.5 million 1.8 million (64) 2.32 million
  • 2nd homes are 39 of existing single-family,
    condo and new home sales in 2005, an increase
    from 32 in 2004.
  • Methodology of survey 100,000 home buyers
    through Experian (via county records), 8.2
    response rate.

6
NAR Profile of 2nd Home Buyers international
data?
Vacation Investment
Typical Age 55 47
No children 71 59
Median price 190,000 (1290 sq ft) 148,000
Distance from primary residence 49 miles 18 miles
Travel by automobile 88 86
Bought 2nd home to diversify investments ------------- Spend no time at 2nd home 13 ------- 35 36 -------- 51
very likely to buy additional 2nd home in 2yrs 16 47
7
International Home Buyers in FloridaNAR and FAR
study results (view full results at
www.realtor.org/research)
8
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)

9
The International 2nd Home Market Abroad
Holiday Homes Residential Tourism
Overseas Property
10
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

11
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)

12
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

13
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.

14
Hot 2nd Home Markets Latin America
  • Established
  • Mexico Cancun, Cabos, Puerto Vallarta
  • Costa Rica
  • Caribbean Bahamas, Cayman Islands
  • Up and Coming
  • Mexico Rivera and Costa Maya, Escalera Nautica,
    Nuevo Vallarta
  • Costa Ricas neighbors Nicaragua and Panama.
  • Caribbean Roatan, Dominican Republic

15
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.

16
International 2nd Home Markets for Europeans the
hotspots
  • Middle East and Africa Morocco, Tunisia
  • Latin America Dominican Republic and Northeast
    Brazil
  • E Europe Croatia, Bulgaria

17
Panama 2nd Home flight capital hub for Latin
America
18
Dubai 2nd Home flight capital hub in the
Middle East
                                           
19
Creating an action plan to profit from the
international 2nd homes marketTips and REALTOR
resources for you
20
TIP 1 GET OUT THERE!
21
SIMA Madrid, Spain the largest 2nd Homes show
on Earth
  • 150,000 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, Germany are key
    markets.
  • Opportunities and visibility for REALTORS.
  • Visit www.SIMAExpo.com

22
NAR November 7-10, 2008
23
Outbound 2nd Home MarketPanama Spectacular!
Annually in March
24
TIP 2 Utilize international 2nd homes online
resources
25
Register today on 2 websites REALTOR.org and
WorldProperties.com
  • Identify yourself as a resort and international
    REALTOR and get in the loop.
  • WorldProperties get started today by
    registering! Link to your site!

26
Surf international 2nd home websites

                                     
27
TIP 3 Get educated
28
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!

29
CIPS What are you waiting for?Just Do It!
30
TIP 4 Join NAR for US50!
31
TIP 5 Tap into NARs International Presidents
Liaisons or PLs
32
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.
  • CIPS designees and NAR volunteers appointed by
    NAR President

33
TIP 6 Create a niche
34
Creating 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.

35
THANK YOU!Obrigado Danke Gracias
Cheers Merci Grazie MahaloSukranXieXie
TodaArigato Spasiba dank U wel
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