10/7/12: The Global Perspective – Where Investors Are Going and Why

Money is flowing around the globe, seeking opportunity and avoiding risk.  But where is it going and why?

We’re always fascinated by trying to figure out where the puck is going (a hockey quote by Wayne Gretsky) .  And (to horribly mix metaphors), sometimes you need to get a bird’s eye view to see the whole field.  But (to worsen the metaphoric catastrophe), if you want to ride the wave of capital flowing around the globe, you have to take time to study the trends.

Does all that sound like hard work?  It is!  But we’re here to help.

So for this episode of The Real Estate Guys™ radio show, host Robert Helms ditches co-host Russell Gray and flies solo to Orlando, Florida to attend the RE/MAX Encounter the Americas conference.  While there, he captures interesting interviews with three gentleman who are in great positions to offer valuable perspectives on the trends in global real estate.

Behind the microphones, but ahead of the puck, for this episode:

  • Your think globally, but drink locally (brewed beer, that is) host, Robert Helms
  • RE/MAX VP of International Business Development, Larry Oberly
  • RE/MAX VP of Latin America, Ricardo Cardenas

The RE/MAX Encounter the Americas conference brings together company leaders and agents from all over the world, with an emphasis on Latin America and the Caribbean.

And because RE/MAX is one of the biggest players in real estate brokerage, they have lots of data, both statistical and anecdotal.  So we’re excited to bring you the Cliff’s Notes from these high level execs.

 

Larry Oberly‘s job is to expand the RE/MAX network around the globe.  To decide where and how to get into various markets, he gathers data from professional associations, local agents and search patterns on RE/MAX websites.

Think about that.  Before people move or invest in a market, they start doing research.  And when they get serious, they start honing in on neighborhoods, properties and price points.  These days, almost all of that happens on the internet, providing valuable insight to a guy like Larry.

Now even though this conference is about the Americas, Larry has some very interesting comments about China.  It’s no secret that China has tons of money.  And some of that money is making its way into real estate in the Western Hemisphere.  What’s even more interesting is why.  But you’ll have to listen to Larry to get the answer. 😉

Next up is Ricardo Cardenas.  This interview is worth listening to just because Ricardo has the coolest Latin accent.  But of course, the big bonus is the insights Ricardo has to share about what’s happening in his part of the world.

Even though Brazil is part of the group of emerging growth economies known as the BRICs (Brazil, Russia, India, China), it isn’t the only strong economy in the south of the Western Hemisphere.  And as these nations make more money, more real estate business is being transacted with both domestic and foreign buyers.  In other words, people want to buy property there.

Ricardo shares some of the work being done to improve business systems, professional cooperation and standards of real estate brokerage practice.  Just as standardized hardware and software protocols have made computers more friendly and accessible to more people, so will increasingly standardized real estate practices attract more buyers and their money to these markets.

It’s all part of the critical infrastructure which facilitates the flow of capital to and from real estate markets along the international financial highway.  We watch it because it helps us anticipate where and how fast money will flow into a market.

Last, but certainly not least, Robert reconnects with John Turley, our good friend, 2013 Investor Summit at Sea™ faculty member, and top real estate broker in the country of Belize.  If you’ve been listening to the show for awhile, you know we’ve had John on before – and that The Real Estate Guys™ LOVE Belize.  In fact, John is a featured speaker on our Belize field trips.

Now John’s perspective on international real estate is a little different than Larry’s or Ricardo’s because John is focused on Belize.  And rather than a top down view, John is in the streets every day talking with real life home buyers, investors and developers about where they come from and why they’re interested in a place like Belize.  That’s how we got to know him.

As an American ex-pat who brought his family to Belize and set up shop in 2005, John has his personal perspectives to share.  But what’s really interesting is what he’s observed about what’s going on around him in his seven years and living working in Belize

For a market place that owes a big part of its revenue to tourism, you’d think the dour U.S. and European economies would have taken its toll on Belize real estate.  Not so.  We’re pleasantly surprised to find that values in the Belize real estate market never really tanked like they did in so many over-leveraged and over-built markets.

And as for tourism in Belize, John tells us that 2011 was a record year and that 2012 is outpacing 2011 by double digits. More, tourism to Belize is above the peaks of 2005 before the recession ever hit.  Very impressive – and consistent with the feedback we got from the Shared Ownership Conference interviews previously broadcast (Look for Getting a Slice of the Pie on our Listen page)

So big lesson:  be careful not to look at the world only through the filters of your own perspectives and paradigms.  How it is for you and where you are may not be indicative of what’s happening in other places.  That’s why we make it our mission to get around to these other places and learn how other people are seeing things.

But we know it’s hard for you to fly all over the place like we do, but no worries.  That’s why you have us.  Enjoy!

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