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feature se r v ic i ng Or ig i nat ion SECONDARY MARKET At the very basic commonsense level, people will always need a place to live and dwell, and the year of 2013 sees the most profitable real estate opportunities undoubtedly existing overseas. A Nod to Our Northern Neighbor s e c on da r y m a r k e t a na ly t ic s T hus seen, emerging markets are out there waiting for the United States to emulate. For instance, domestic investors could take a cue from Canada, as it has shown strength and garnered success through stability. In fact, experts agree that in an industry struggling against astronomical debt and increasingly volatile economics, the even-keeled Canadian real estate realm deserves at least a look. With its low interest rates and wealth of resources, this country's commodity-based economy provides fertile ground for a more solid and "safe" real estate scene. Many U.S. retailers are beginning to see this stability and are reaching out to expand their brands' holdings into Canada's less risky market. An industry insider comments on Canada's outlook for 2013, quipping that, "Compared to everyone else, we will do very well, but growth trends will be pretty mediocre." The source goes on to say that although this may sound pessimistic, in light of the dubious market dives of 2012, "mediocre" just might be "the new 'good,'" as domestic investors and mortgage managers would be wise to "scale back expectations." Equilibrium maintenance, then, seems to be the golden key to Canada's apparent longevity in an otherwise lagging market. Its steadily low vacancy rates leave no room for doubt when 90 | The M Report it comes to seeing that across the board, Canada shines when it comes to filling all property types and keeping them full, allowing landlords and management firms the chance to increase rents and obtain a rare and welcome return on investment, as well as enjoy ongoing appreciation. Add to this low vacancy rate the fact that Canada's interest rates are holding at all-time lows, and a continued growth forecast for this country seems certain in 2013. "Real estate concerns here are reducing, even with global economic uncertainty," an investor asserts. The source goes on to declare that investors interested in the international market should "allocate this capital and, instead of keeping cash, should look for great assets such as real estate." Lessons from Latin America L atin America has also launched itself into the spotlight as a leader in today's industry. A surprising success story of 2012 in particular was Brazil, breaking on the scene with a dramatic surge in house prices directly following its government-extended tax breaks, which brought new life and reprieve into the hitherto weakened economy. Also creating a rise in real estate interest and sales, specifically in Brazil's Sao Paulo, are the highly anticipated 2014 Soccer World Cup and the Olympics of 2016. Following closely behind Brazil's optimistic outlook are Mexico, Colombia, Peru, and Chile, each opening wide their doors—ripe for real estate developers and investors to yield profits, assuming they can familiarize quickly to navigate the already existing markets, as well as partner up early in the game with local networks. Global Goodness W e've explored a few realestate-ready markets, but the question still remains: Why is investing abroad such a wise move? Simply put, where real estate is concerned, an investor can put forth a relatively insignificant amount of funds and be able to then have complete control of a sizeable asset. Real estate will always have intrinsic value, even as the market prices ebb and flow. At the very basic commonsense level, people will always need a place to live and dwell, and the year of 2013 sees the most profitable real estate opportunities undoubtedly existing overseas. Just one example of this opportunity for affluence from acquisitions abroad, in Latin America especially, is the condo development industry that has seen staggering increases of up to 60 percent in just a two-year window. Reasons for this upturn include residents' newfound ability to afford the rent of such spaces, as Brazil has just recently ushered itself into the ranks of the middle-class category. Jobs are being created, and now employed workers are beginning to gain confidence that it is safe to spend. Yet another positive outcome of overseas investment is the control factor. Being able to take your real estate collateral and, based on your personal schedule and long-term financial goals, determine to buy, sell, rent, or develop on your own terms and timetable, fosters an ideal forum for savvy business. Add to this freedom factor the bonus of building up a cash flow consisting of another country's currency, and diversity of your real estate portfolio automatically becomes dynamic . . . not to mention the overseas properties themselves becoming intrinsically valuable assets in their own rights. Experts also point out to investors the importance of thinking out of the box when it comes to buying abroad. For instance, real estate purchased has infinite possibilities when one looks at it with an entrepreneurial eye. Land purchased overseas can be used not only for building condo and rental properties, but also for agriculture or forestry purposes. In fact, many developers have ingeniously taken to the practice of purchasing land in up-and-coming foreign countries and, using the rich soil of the land, turning profits as they wait for the tourist industry to pick up steam. The investors are then able to turn the properties into moneymaking hotels and vacation rentals. And if all other reasons fail to tempt one to give the international market at go, the simple challenge alone should be a surefire way to attract those looking for a new way to try their hand at a new business venture, or even a smart, secondhome site option. Leading the way in investing overseas are such firms as Colliers International, Harbor Group International, and Christie's International, among others. With such good company, one has little reason not to jump aboard the international acquisitions boat and sail toward global real estate wealth.