Our discussion began shortly after I strolled in late from taking my Lease Analysis midterm that I missed last week...Ouch!
The topics for today were particularly interesting due to their broad nature and indirect connection to real estate. Below are some of the synopsis' from articles we went over through the discussion.
“Travel trends & predictions” Article
-Potential move away from air travel due to the rise in energy prices, directly implemented to the price per ticket…local travel and regional travel through driving and train can take advantage of this and attempt to modify peoples behavior if these options are made more attractive (beyond reduced cost)
- Why do people have a negative stigma about riding public bus systems, and what can be done to activate more interest in doing so?
- On the Australia Winter Study Tour, Dr. Forgey found the railroad system connecting the Sydney CBD and their Airport. Upon revealing the plans, a private group of investor/developers bought a large tract right in the way of the line’s proposed crossing. They developed the mixed-use project/train station on top of dirt-cheap brown field land that had no worth before this project’s announcing. Point in case, a system like this can revitalize areas of a city that are dilapidated and can create opportunity for a public/private partnership, or symbiotic relationship.
-“China’s housing market: Boom or bubble?”
-As land values are increasing, they are driving the overall value of improved properties (where construction costs are usually not as volatile)
-5% of residential values are created by debt mortgages…a very interesting point when looking at the culture of the Chinese, and many Asian countries. Debt is existent and creates increased growth and activity amongst more and more participants, but it is NOT relied upon nearly as close to the use of SAVINGS and equity. Owing money has a more negative aura about it there than in the USA, and therefore safeguards them from the volatility of the credit markets.
-“Real Estate Transparency: Latin America Weak”
-Jones Lang LaSalle has ranked the growing property markets in Latin America as being weak with transparency and transactional information. A large part of the issue stems from a lack clarity from the regulatory arms of these countries. Australia ranked #1, with the USA coming in at #6.
-“Economic stirrings in Iraq w/ new multi-million dollar building scheme”
-Private Jordanian & Iraqi developers are building a massive 3500 acre mixed us development worth upwards of $300 million in which up until recent times, was one of the most dangerous areas within the war zone. Personally, as much of an opportunity this under served market may have, the stigma that goes along with building in what is the center of a CURRENT war is just enormously negative. Maybe I'm just the odd ball out and I missed something along the line here?
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