1. Global Real Estate: Local Markets

2. INTRODUCTION 2

3. Course Overview 1.How the Global Economy Shapes Your Market 2.Your Hometown Global Market 3.Cultural Literacy for Business 4.Serving the Global Market 5.Networking Power 6.Planning>Action>Results 3

4. Exam and Activities 30-question exam – Open-book – Multiple-choice Activities – Group assignments – Exercises – Discussions 4

5. Earning the CIPS Designation Global Real Estate: Local Markets (all students) Global Real Estate: Transaction Tools (U.S. students) The Business of U.S. Real Estate (Non U.S. students) Three elective courses: – Europe and International Real Estate – Asia/Pacific and International Real Estate – The Americas and International Real Estate – At Home with Diversity (U.S. students) 5

6. Earning the CIPS Designation One of the following courses can count as one elective option: – CRS 200 – Business Planning and Marketing for the Residential Specialist – CRS 204 – Creating Wealth through Residential Real Estate Investments – CCIM - Residential Real Estate Financial Analysis – One Real Estate Advanced Practices (REAP) module from the Council of Residential Specialists (CRS) (Non U.S. students) International real estate experience- – 100 Points 6

7. Self-Assessment: Are You Already Global? 7

8. CHAPTER 1: HOW THE GLOBAL ECONOMY SHAPES YOUR MARKET 8

9. In This Chapter Global economy, local real estate markets Global flow of capital and wealth Real estate as an investment Trends and indicators 9

10. Global Economy, Local Markets Global economic forces impact your business Real estate is a storehouse of wealth Which indicators and trends should you monitor? Design a personal data plan 10

11. Viewpoints 11

12. A Shrinking World? Spread of capitalism New wealth seeks opportunities and safety in real estate 12

13. Most Stable and Secure 13 Source: Association for Foreign Investors in Real Estate

14. Best Capital Appreciation 14 Source: Association for Foreign Investors in Real Estate

15. Alliances 15 NAFTA MERCOS UR APEC ASAEN GAFTA COMESA E.U.

16. Connectivity—Internet 16 Source: Internet World Stats

17. Connectivity—Facebook 17 Source: Internet World Stats

18. Round-the-Clock Financial Markets 18 FTSE 100 London Hang Seng Hong Kong DAX Frankfurt CAC Paris Nikkei Tokyo Dow, S&P500, NASDAQ New York

19. Interdependence and Specialization Advantage: economic efficiencies and benefits Disadvantage: dependence on other countries Workers’ remittances = 3x official government foreign aid 19

20. Ease of Travel Affordable airfares Convenient flights to hub cities and resorts Immigrants maintain homeland ties U.S. expatriate retirees 20

21. Twenty-first Century Workforce Global businesses and their workers enter new markets Remote workers choose to live and work apart from company offices Entrepreneurs start businesses from anywhere in the world 21

22. Capital—What Flows? Currency Assets Capital goods Debt Credit Information Technology Innovation 22

23. 23 Capital Seeks:  Acceptable risk/return  Favorable ROI  Quality properties  Affordable and available credit  Orderly, transparent markets Capital Flees:  Falling returns and values  Ownership restrictions  Movement restrictions  Tight, expensive credit

24. Capital Flow Theories Bargain Rate Theory Loss Avoidance Theory Market Linkage Theory 24

25. Staying in the Know Select, monitor, compare key indicators The Economist, Financial Times, Wall Street Journal Government Web sites NAR Economists’ Outlook 25

26. Indicators GDP Employment Consumer Price Index Labor Productivity Retail Sales Exchange Rates Interest Rates Flow of Funds Mortgage Rates Imports, Exports, and Trade Balance Direct Investment Abroad Foreign Direct Investment 26

27. 27 Key Point Review