Europa!

It may be a little different for each of you, but we all know that it's been a tough market for the last year. Well, here's what's going on in some European countries. Should you have some buyers looking to invest abroad, the good news for them is in France.

England
England experienced a "mini boom" in house prices between April and September; however, estate agents have said that the strong performance is confined to London and the South East and to prime country houses. Of note in England, as has been the case in the U.S., is that there has been a steady increase in first-time home buyers due to low prices and low interest rates.

Germany
All property markets in Germany are experiencing renewed confidence as a positive investment climate exists. The office real estate sector is performing best, registering the highest increase in confidence for a third month in a row, The residential sector is also continuing to push upwards with confidence increasing beyond 100 points at 116.2. The majority of real estate agents are now describing the current situation and the outlook for the housing market as positive. With that said, Germany's real estate economy still has to wait to see a sustainable shift in trend due to a lack of financing.

Ireland
It is estimated that property prices in Ireland could fall as much as 45 percent from the peak of the market in late 2006 due the economic downturn and increased costs of funding the banks. Fitch Ratings warns that despite almost three years of house price declines, prices have yet to reach a sustainable level of affordability. Rising unemployment is a particular concern. Unemployment is predicted to reach 12.5 percent by the end of 2009 and rise to 15 percent in 2011.

Italy
Italy's housing market remained strong over the past two years due to prudent loan practices. Italian house prices rose by an average of 4.1 percent from 2003 to 2006 then 2 percent from 2007 to 2008. However, this is expected to change as Italy is anticipating going through its worst recession since WWII. Italy's GDP is expected to contract by 5.5 percent and unemployment is anticipated to rise to 10.7 percent by the end of 2010, up from 6.8 percent in 2008.

France
For some better news, analysts believe that the real estate recovery is now underway as the figures from the Fédération Nationale de l'Immobilier (FNAIM) show that although prices fell overall by 1 percent in the third quarter, they rose in September and for the last 6 months they are now up by 2.8 percent.

A healthy lending environment is also expected to aid the property recovery. Unlike the UK, a history of prudent lending in France where lenders do not allow borrowers' total outgoings on finance payments to exceed one-third of their total gross monthly income, has meant mortgage finance is still readily available. The French banks continue to lend to borrowers with smaller deposits, even up to 100% LTV.

For your clients, this level of LTV is also available to foreign buyers both for second homes and investment properties.

Sources: The England Times, NuWire Investor, Property Wire

Globally Correct

• Tipping Etiquette 101 – Americans are notorious over-tippers in foreign markets, which may make us popular with service providers, but may also demonstrate our cultural ignorance to local business partners. In many places, a service charge is already included in the bill, or local customs dictate a percentage below the standard 15 percent - 20 percent in the U.S. Be knowledgeable about local tipping customs with Condé Nast Traveler's Tipping Guide.
  
  
• World Citizen Guide – If the world were a village of 100 people, where would you fit in? As we tend to group with others like ourselves, it's easy to feel very centric. REALTORS® doing business with global clients and customers will be well served to remember that most of us are a minority in the global view, regardless of our faith, country of origin, and other variables. See where you fit in if the world was a village of 100 people. Report compiled by NAR International Operations.
  
  
• Communicate Globally with the Google Web Translator Tool – NAR has put into place the Google translation widget at the launch page for International REALTOR® Members. This free widget translates not only the initial web page on which it sits into 30+ languages, but also translates linked pages and subsequent linked pages and so on down the line (sort of 6th degree of separation concept). While electronic translation isn't a perfect science, it's improving all the time and most find the Google tool to be more than sufficient in terms of web site communications. Check it out. Download the Google translation widget for use at firm and agent websites to add an international element to online presence.
  

• International Real Estate Research – NAR's complete list of international research topics.
  
  
• State-by-State International Business Reports – NAR precents economic and demographic data related to international business activity directly associated with each of the states. There are 51 reports—one per state and for the District of Columbia. State specific demographic and economic data are available in each state report on a variety of topics.
  
  
• Minnesota International Hosting Opportunities – The Minnesota International Center, of which MAAR is a member, has opened their international hosting opportunities to our association members. There are a number of interesting options available each month. To volunteer or for more information, please contact Hayley at mhkanlyn@umn.edu or 612.625.6159.
  
  
• Cross-cultural differences can make or break a business deal. Before you begin working with a client or customer from outside the U.S. (or a U.S. resident with strong ethnic ties), take a few minutes to review the Etiquette and Customs and the Business Etiquette sections of the Kwintessentials Cross Cultural Solutions country profiles. Each country profile also offers a few facts and statistics about the country, a list of related links, and a map of the country. Available for 65 countries.
  

International Tools

WorldProperties.com is backed by the International Consortium of Real Estate Associations (ICREA), which is comprised of 30+ leading national real estate organizations representing 2 million brokers/agents worldwide, each of whom adhere to a code of conduct. WorldProperties.com provides benefits to broker/agent members by assisting them in marketing and facilitating business in the global marketplace. WorldProperties.com assists consumers in locating properties outside their country and in finding a qualified real estate professional.

For more information on anything related to our international programs, contact Linda Stoeckicht at lindas@mplsrealtor.com.