Whats going on in leading countries

November 12th, 2015

Written by Valeria Kelly -Broker Associate. 

2015-11-12_13-17-25

I attended the Real Estate Congress in Miami at the Biltmore Hotel this morning and learned a lot about some of the leading countries in the world. All are suffering from some sort of recession and recuperating from the “bubble” and what used to be our top foreign buyers are now looking in their own backyard for some good opportunities.

I’ll start with Brazil which helped our Broker’s portfolio of clients grow incredibly in the last few years; things have changed. Why is Brazil suffering today: suffering a recession political instability 1 million jobs lost per year/major unemployment.

Interesting facts about Brazil;

  • 83% of the population owns, very little rent
  • First time home buyers in their 20s-30s are buying at an early age
  • Prices are 33% less than in the USA
  • Facebook named Brazil as #2 in the world for social media interaction

FRANCE

The representative spoke about Paris as a unit and Marseille, as another great investment. I will focus on Paris as I know it well and our affiliate offices have their main office in Central Paris. Paris is quite a unique market.

Interesting facts about Paris;

  • New construction is up since 2012 in the outer ares of Paris
  • In 2011 France added a new taxation on real estate prices
  • There is very little new construction (especially in the heart of Paris)
  • In the best areas of Paris, prices can be as high as 8,100 per square meter in Paris.
  • USA is #2 in investors in Paris

COSTA RICA

Costa Rica is the stablest of the countries who attended today and the closest to the US.

Interesting facts about Costa Rica;

  • 50% of investors are from USA and Canada
  • all the properties are listed on a national database and there is no real estate laws anyone can sell a property as long as they are citizens or legal resident
  • a direct oceanfront home is $250,000 and taxes are $375.00 per year!!
  • The sales tax on commissions is 13%
  • Easy sales transaction

SPAIN

  • growth is happening in prime areas
  • more than 50% are buying near capital
  • 30% of people buying are foreigners
  • 1/3of the sales are being done by investment funds (economic reasons)
  • 1/3 of the sales are American funds : big companies such as Starwood, blackstone and goldman sachs

WHY SPAIN?

  • depreciation of the Euro
  • Golden Visa- when you buy a property 500,000 or more
  • Safety
  • Usually was not a rental market and is now a rental market great for investors
  • Taxes on new construtoin are 10% (high) and resales 8%
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