The World is Getting Flatter

Volume 5 Number 15 May 12, 2007
The World is getting Flatter

The world used to be a very bumpy place; and it is was huge. There were thousands of languages and hundreds of countries; there were mountains to cross; rivers to forge; oceans to sail; and deserts to traverse. These were all barriers to communications and travel.
But now I can bridge the gap between here and any other part of the world in seconds. I can pick up the phone, sign onto the internet, watch live action in Iraq on TV, and I am instantly “transported” to anywhere in the world. In fact , I can go to a restaurant in Milan, Italy and have the same Big Mac and shake that I might have had one day earlier on route 41 on the way to the airport in Fort Myers. The world indeed is flat and easy to “navigate”.
Now my neighbor that lives less than a hundred feet from me was born in country thousand of miles away. Fully 15% of all second homes purchased in Florida were sold to someone that lives in one of 100 other countries. Some peg this number as high as 23%. There is a study done in 2005 by The Florida Association of Realtors that can be viewed HERE. I believe that since the exchange rate with the Euro is much better today that the percentage of second homes sold to foreigners today is above 20%.
I am missing something here, however: In my agency we have sold NO property to foreigners. Yet I have traveled the world in my business for over twenty years. I have friends and contacts from Brazil to Belgium, business associates in Japan, Korea, South Africa, and heck; I can order a beer in at least seven languages. I have look at property in Prague; Quebec; Blenchingly, England; and around the Bodensee in Austria.
Those of you that know me know I don’t bring things up without forethought or some plan (or because it’s been bugging me for awhile). I have been working on a plan to capture (our share) of this market ever since we first took over The Rivers Four at Parkside. A few months ago I sat in an ideation session at Burnt Store Marina to try to figure out why Grand Isle condos were not getting the traffic we needed to sell more condos. “Bring us European buyers”, was the plea. But the budget to do so was too small. This seemed the job of local tourism bureau, not a small community on the water.
Well folks, this is just a teaser because I am not ready to announce the plan yet, but what I am doing is reaching out for residential real estate agents that want to capture this foreign market; I am looking for forward thinking agents that know that the world is “getting flatter” and easier to travel and that may speak a few more languages that the average Floridian. I need more agents that can help me “flatten this world” a bit more. Drop me an email if you are interested in making a move. You may be impressed.
I will be announcing with in the next two weeks a major change in marketing strategy and a Global presence that is not only needed in our market place, but is long overdue.
Furthermore, if you are looking to sell your home into this market, also drop me a line. (Gregg@ma-realty.com). I will be building a short “bridge” to other markets, and you will not be disappointed. Stay tuned.
In the past we just burned our tourists; Now we smoke them.
When I got home from picking up my grandson Adi from school yesterday we stepped out the back door. Our normally unobstructed view across the river was blocked by smoke. It was so thick I could not see Cape Coral OR the bridge. Adi and I could both taste the smoke it was so thick.
If you have not been watching Florida news lately you may not know that we have over 250 brush fires in the state. All day Friday, in fact, the sun was blocked by a slight smoky haze. We are told that this smoke actually is coming in from the Gulf of Mexico, having been blown out there from a rather large conflagration on the Florida-Georgia border. The thick smoke lasted an hour or so and then seemed to rise off. I don’t think it has actually been very disruptive for the tourists. Locally we have had some fires but all have been controlled after a short time. The weather has been wonderful.
Cheap Money
I made a few inquires on loans lately. Money is still very cheap. I can get a home equity loan at less that prime (amazing). And first mortgage rates are still very low. (MBA SITE HERE).
By special arrangement with a few select lenders and the developer, Market America Realty and Investments is offering special incentive packages for condos purchased and closed before the end of July at Parkside at Rivers IV. Select buyers can get six months of payments made by the developer. This will enable buyers to lock in interest rates now. This is a very attractive deal for those of you that may be sitting on the fence and worried about what interest rates are doing. Contact Deb@ma-realty.com to schedule an appointment or visit the sales center on site every day from noon to five.
Motivation
General consensus is that buyers of second homes will not get aggressive until they feel a sense of urgency. This sense of urgency will come from a diminishing inventory, a forecast of more expensive money, or the threat of increasing prices. Inventory is now shrinking, and while money does not look like it will get much more expensive for a while, it does look like credit will get tighter and money certainly is low cost now. Lenders are very aggressively pursuing quality borrowers. Be sure the incentive offers from developers will soon dry up.
While I do not think you will soon see rapid price increases, I have talked to some of the other developers and we certainly agree that we have hit bottom on prices for new product. I have said this before but it bears repeating: Replacement costs are very high. For the new product that is on the market now, the prices will never be lower. This is the time to buy.
By the way - I am looking for at least one North Carolina specialist to join our Mountain Property team. If you know of someone licensed there that may be interested please get them in touch with me.
Until next week,
If you have missed past emails you can search here: ARCHIVES
Gregg Fous
Gregg@ma-realty.com
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