International Real Estate

An Economist's Viewpoint

Real Estate Markets & the Need for Housing

Properties are built, bought and sold in a cycle which can be at different times stagnant or vibrant; transparent or murky; beneficial or shoddy and dangerous. The key to the existence and flourishing of the free market is a society in which the rights and titles of private property are respected, defended, and kept secure. Private property thrives in open, ethical markets. Free markets do not mean lack of controls. When there is reason or ethics to contain greed, more members of a society benefit.

CONTINUE READING

Transparency in Mexican Real Estate

Importance of Fair Market Value

Those of us living in Mexico from other parts of North America probably take the concept of fair market value for granted.  We assume that this measure of value is used in other markets and other countries. Actually, it is not common outside of the USA or Canada to have sold market data.  In order to have information about sales prices and to adjust for differences in properties, data must be available.

CONTINUE READING

Mexican Real Estate Terms to Know

What is an Escritura?

Mexican Real Estate Definitions. Ejido:  Farming land owned by a legal entity, or group called the Ejido. Collective land that can now be privatized.  Foreigners cannot acquire rights to Ejido property.  Through a proper process, the Ejido can sell to a Mexican individual. The Mexican can then sell to a foreigner.

CONTINUE READING

Influence of Behavioural Bias

The Irrational and Emotional in Real Estate Markets

Nick Armet writes about investments for a UK firm. He has interesting views on our emotional connection to real estate. Here are some: The asset class of real estate demonstrates a pronounced influence of behavioral bias. Real estate is a highly emotive asset in most cultures. This can help explain phases of ‘irrational exuberance’ in property markets where prices move away from fundamentals.

CONTINUE READING
1 2