World on FIRE Real Estate Markets and Sustainable Development: Property Rights and Access to Credit Around the World April 29, 2008 Washington, DC

Mission ……create viable, private real estate markets worldwide which are essential for strong democracies and developing economies. Improved Standards of Living Improved Standards of Living Improved Domiciles Improved Domiciles Opportunities for Wealth Creation Through Private Property Ownership Opportunities for Wealth Creation Through Private Property Ownership

Property Rights & Access to Credit for the Poor Formation of civil society organizations, i.e. associations Formation of civil society organizations, i.e. associations Establishment of appraisal programs create standards for real property values Establishment of appraisal programs create standards for real property values Partnerships with government professionalize the real estate industry Partnerships with government professionalize the real estate industry

U.S. Real Estate Success Shared with Emerging Markets Though 2007 was a challenging year for housing with activity far below normal, historically on average, one can anticipate the contributions housing has to the GDP in the USA. Though 2007 was a challenging year for housing with activity far below normal, historically on average, one can anticipate the contributions housing has to the GDP 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 most AmericansHome equity is the largest source of wealth for most Americans

U.S. Example – Real Estate’s Affect on the Economy Improving and facilitating the process and arrangements by which real estate is owned, bought, leased, developed, financed and transferred, encourages private investment, generates jobs and economic growth and raises the standard of living. US data follow: Job creation - U.S. Experience Job creation - U.S. Experience 1,000 homes1,000 homes 2,448 jobs2,448 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 creation Tax 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 Elements Laws Laws Systems Systems Standards of Practice Standards of Practice Know How Conflict Resolution Information Information Transparency Transparency Market Place Market Place

Outcomes of IRPF Programs Professional Associations Professional Associations Professional Standards Professional Standards Brokers, Appraisers, Property Managers, Executive Officers Lobbying, Libraries, Licensing Lobbying, Libraries, Licensing Courses Courses Brokerage Management, Association Development, Executive Officer Training, Appraisal, Property Management, Marketing, MLS’s, Lobbying, Strategic Planning, Investment Real Estate, etc. Attendees include private and public sector players.

Outcomes of IRPF Programs 75 Trade Associations 75 Trade Associations 20+ Countries 20+ Countries 150,000+ Real Estate Professionals 150,000+ Real Estate Professionals Partnership with USAID Partnership with USAID

Crossroads Body of Knowledge Transferable Body of Knowledge Transferable Emerging Market Needs Universal Emerging Market Needs Universal Needs Remain particularly in Africa Needs Remain particularly in Africa USAID Encouragement USAID Encouragement

A Redefined Scope International Versus Central Europe International Versus Central Europe Eastern European Real Property Foundation becomes International Real Property Association All Impediments to Sound Markets All Impediments to Sound Markets Integrated Solutions Integrated Solutions USAID Market Assessments USAID Market Assessments Strategic Relationships Strategic Relationships

Strategic Relationships Solution Focused Solution Focused Related Industry Groups and Dedicated Problem Solvers Related Industry Groups and Dedicated Problem Solvers Recent Examples: Recent Examples: Services Sector Education and Training Authority – South Africa National Housing Bank - India Pragma – Ukraine Shore Bank - Azerbaijan Appraisal Institute Urban Land Institute (ULI) Association of Real Estate License Laws Officials (ARELLO) REALTOR Institutes, Societies and Councils: CCIM, IREM, CRB, CRS

IRPF’s Activities in South Africa Partnership with Services SETA, government of Republic of So. Africa Partnership with Services SETA, government of Republic of So. Africa Tremendous Need for training programs for Previously Disadvantaged Individuals (PDI’s) Tremendous Need for training programs for 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 South Africa Strengthening of Institute of Estate Agents of South Africa

IRPF’s Activities in Ukraine Successful Brokerage Training; Licensing Successful Brokerage Training; Licensing Assistance with credit access leads to additional mortgages Assistance with credit access leads to additional mortgages Progress in strengthening real property association institutional capacity and cooperation Progress in strengthening real property association institutional capacity and cooperation

IRPF’s Activities in Azerbaijan Brokerage Office Management and Sales Training Brokerage Office Management and Sales Training Increase in number of mortgages through development of Mortgage Toolkits. Increase in number of mortgages through development of Mortgage Toolkits.

Questions? Norman Flynn, President and CEO IRPF 430 N. Michigan Ave. Chicago, IL USA (312)