Welcome from the CIPS Family

1
Welcomefrom the CIPS Family
Please open your books and read the Course
Overview before class begins
2
EUROPEAnd InternationalReal Estate
3
Those Who Benefit
Experienced International Professionals
European Real Estate
Investors
Considering International Specialization
NAR General Membership
European Real Estate
Financers
4
Getting Started

• Networking is a 1 priority
• Stand up
• Take out business cards
• Circulate for 3 minutes
• Meet as many people as you can
• Exchange cards
• Can you help one another?
• READY?......GO!!!!

5
What 3 events facilitated unification?
6
How many countries in European Union?
25
7
Is Turkey an EU member?
No
8
Turkeys major obstacle to EU
membership?
Cyprus relationship
9
What is the population of Turkey?
66,000,000
10
Who is the Global Real Estate Business
Facilitator?
ICREA
11
What is the Major Fear
of Unification?
Loss of identity
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Class Notes

• Turn off cell phones
• Scheduled breaks
• Lunch break
• Activities
• Task groups
• Final exam
• Lets get started!

15
Globalization
16
Globalization Impact

• Investor movement

17
Globalization Impact

• 60 invest in countries
• outside their own

18
Globalization Impact

• A 12 increase in
• global investment (2004)

19
Globalization Impact

• International investors expect real estate
  professionals to have thorough knowledge
• Markets
• Economies
• Business and social cultures
• How to successfully compete

20
Capital Flow

• Underlying forces
• Supply and demand
• Investment return
• German economy performing poorly
• Investors going outside Germany
• Until German economy improves, German capital
  will continue moving elsewhere

Capital flow impacts international transactions
21
Currency
22
Exchange Rates

• Provide insights
• Country economic performance
• Country financial performance
• Influenced by trade deficits
• Higher deficit negative impact

23
Strong and Weak Currencies
24
Demonstration
As the Euro gets stronger Its exchange rate goes
down It takes LESS euros to buy 1 US
1 euro costs 1.30US
US temperature exchange rate goes UP
1 US 1 euro
1 euro 1 US
Euro temperature exchange rate goes DOWN
As the dollar gets weaker Its exchange rate goes
up It takes MORE US to buy 1 euro.
1 US costs .766 euro
25
Investors

• A WEAK dollar makes US real estate more
  attractive.
• A STRONG dollar makes foreign real estate more
  attractive

26
Market Assessment

• Political stability
• Population equilibrium
• Free market philosophy
• Social harmony
• Democratic institutions
• Adequate infrastructure
• Underlying economic strength

27
Additional Points

• Cultural Influences
• Core cultural values
• Client expectations
• Client needs
• Conducting business
• Experienced banks
• International differences

28
Foreign Currencies and Measures
29
Three Conversion Steps

• Currency
• Area
• Time

30
Reciprocals

• Exchange rates reported in two forms
• Foreign units equaling one domestic unit
• Domestic units equaling one foreign unit
• These numbers are reciprocals
• Reflect both sides of currency value
• Reciprocals are 1 conversion factor
• 
  exchange rate

31
Conversions
If you are converting The exchange rate is
US to euros US1 .81
Euros to US 1 US1.23
If you are converting The reciprocal is
US to euros 1 .81US1.23
Euros to US 1 US1.23 .81
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Conversion 1

• Convert 850 euros to US
• 850 X US1.23 _________

1045.50
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Conversion 2

• Convert US15.30 to euros
• US15.30 X .81 __________

12.39
34
Conversion 3

• Two years ago the exchange rate was
• US1 .924 or 1 US 1.082
• What would a 300,000 house cost in euros?
• US 300,000 X _____ _________
• What would the same house cost in euros today?
• US 300,000 X ________ _________
• How much difference did the exchange rate make?
• ___________ or in US ___________

.924
277,200
.81
243,000
34,200
42,066
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Conversion 4

• Use same conversion rates for a 650,000 office
  building.
• What was the value in US 2 years ago?
• 650,000 X __________ US __________
• What is the value in US today?
• 650,000 X __________ US __________
• How much difference did the conversion rate make
  in these examples?
• US__________

703,300
1.082
799,500
1.23
96,200
36
Converting Square Meters to Square Feet

• The Conversion Factors are
• 1 square meter (m²) 10.7639 square feet
• 1 square foot .0929 square meters
• Converting m² to ft² MORE ft²
• Converting ft² to m² LESS m²

37
Square Meters to Square Feet

• Formula
• Square meters X 10.7639
• Mr. and Mrs. Schmidt want a 250 square meter
  home.
• How many square feet will it be?
• 250 meters X 10.7639 ______ sq. ft.

2690
38
Square Feet to Square Meters

• Formula
• Square feet X .0929 (1 10.7639)
• How many meters in 20,000 square feet?
• 20,000 sq. ft. X .0929 __________m²

1858 m²
39
Convert Price Per Unit of Area

• Formula
• Price/Unit of Area X Area Conversion Factor
• Apartment rents for 1000/m²/month
• Calculate rent in square feet
• 1000 X .0929 92.9/sq.ft./mo.
• Price/m² X Meter to Sq.ft. Conversion
  Factor(.0929) Price per sq.ft./mo.

40
Convert the Time Period
Price Per Month X 12 Price Per Year Price Per
Year 12 Price Per Month
41
Putting it Together
Exchange Rates US .81 1 US1.23
Conversion Rates 1 sq. ft. .0929 m² 1 m² 10.7639 sq. ft.

• Currency
  70.83 X 1.23 US87.12/m²/mo.
• Area
  US87.12 10.7639
  US8.09/sq.ft./mo.
• Time
  US8.09/sq.ft./mo X 12
  US97.13/sq.ft./yr.

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Key Point Review

• Economic affects of globalization
• How culture influences transactions
• Expertise in market assessment
• Currency and area conversion skills
• Strengthening and weakening of currencies.

43
The European Union
44
Europe as an Economic Region
45
Europe
46
Maastricht Treaty--1992

• Common foreign and security policy
• Cooperation on immigration and asylum
• European police intelligence agency
• EU citizenship and a central bank
• Development of poorer EU countries
• One currency European market

47
Copenhagen Criteria

• Democracy, rule of law, human rights and
  protection of minorities
• Functioning market economy
• Accept obligations of membership

48
EU Constitution Concerns

• Dwindling national identity
• Rapidly expanding EU
• Integration
• Shrinking economies
• Islamic radicalism
• Distrust of powerful bureaucrats

49
Euro Issue Requirements

• Price stability
• Sustainable government finances
• Stable exchange rate
• Convergence in long term interest rates

50
EURO Coins

• Common side
• National side
• Must have 12 EU stars
• Greek coins may be made outside Greece
• ESpain
• FFrance
• S---Finland

• Germany has five mints
• Mint Codes
• A Berlin
• D Munich
• F Stuttgart
• G Karlsruhe
• J Hamburg

51
European Union Goals

• Support democracy Rule of
  law Human
  rights Individual liberty
  Promote prosperity and social
  progress

1
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European Union Goals

• Safeguard peace
• Promote international security
• Reinforce role of UN

2
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European Union Goals

• Sound world economic policies Sustained growth
  Low inflation
  High employment Equitable
  social conditions Stability

3
54
European Union Goals

• Promote market principles Reject protectionism
  Expand and open multilateral trading system

4
55
European Union Goals

• Help developing countries toward economic reforms

5
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European Union Goals

• Support nations of Eastern and Central Europe
• Encourage participation in international trade
  and finance

6
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Areas of Concern

• Terrorist attacks
• Weakening of Executive Commission
• Admission of former communist countries
• Passage of EU Constitution

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The EU and Eastern Europe

• Established programs to accelerate the reform
  process to EU membership
• These agreements provide
• Preferential trade treatment
• Guidelines for adaptation of local laws to EU
  legislation
• Free movement of capital

60
EU, Mediterranean and Middle East

• Allow one-way duty-free exports of Industrial
  products
• Agricultural concessions
• Grants and loans to EU markets

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Euro-Arab Dialogue

• 20-year economic contact
• Topics under discussion
• Technology transfer
• Investment incentives
• Trade
• Labor problems
• Establishment of free-trade area
• Cultural exchange

62
Cotonou Agreement

• Replaced Lome Convention June 2000
• 20 year agreement with 77 ACP states
• Poverty reduction is principal objective
• Political dialog
• Development aid
• Closer economic and trade cooperation

63
Impact on International Real Estate
Increased use and understanding of International
standards and regulations
New Regulations On International Transactions
Competition Domestic employment Trade
Creation of International Investment Rules
64
Integration Concerns

• Increased worker and industry mobility
• New real estate opportunities due to supply and
  demand
• Increased international investment opportunities
• Decrease of exchange rate fluctuations

65
Country of Origin Principle

• Encourages reciprocity
• Problematic due to
• Some states protect property title, access to and
  work within real estate profession
• Some control only access to profession
• Some regulate access but not practice of real
  estate
• Some member countries control nothing
• National planning and policies unlikely

66
Ownership Attitudes
Common Law Civil Law
Nature of Commercial Leases
Ownership Motivation
67
Land Registration

• Comprehensive title registration is rare
• Some countries have full cadastral system
• Land registry in others is proof of title
• Former Communist countries claims are problematic

68
VAT Taxes

• VAT reductions and low interest rates have kept
  European housing market robust

69
Financing

• Integration is
• Liberalizing capital movement and financial
  services
• Should increase money supply for property
• Sources are varied
• Some builders provide own funding
• Equity financing common in UK
• Debt financing common on continent

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International Professional Networks
CEEC
ECPA
RICS
TEGOVFA
FIABCI-CE
CEAB
71
Key Point Review

• Four significant European developments
• Present state of unification
• Understanding the European market
• Challenges ahead for EU

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A. United Kingdom
B. June 23, 2000
C. Twenty-five
D. Registration considered proof of ownership
E. Laid groundwork for single EU currency
F. Encourages real estate reciprocity among EU countries.
G. Ability to understand and apply
H. Value-Added-Tax
I. Germany
Exercise 1
1. Transparency
2. Land Registry System
3. VAT
4. Balloon Mortgages
5. Contonou Agreement
6. Zero Coupon Bonds
7. Country of Origin
8. Countries in EU
9. Maastricht Treaty
73
Exercise 2
C
B
B
C
B
C
B
C
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Economic and Real Estate Trends
75
Objectives
Analyze European real estate trends
Discuss FDI investment by European
countries
Review status of REITs
in Germany
Assess economic trends and markets in Eastern
European countries
76
Germany
2002 2003 2005
Population 83.3 82.42 82.43
GDP billion 2,174.0 2,271.0 2,446.0
GDP/Capita 26,200.0 27,600 29,700
GDP Growth .06 -0.10 .80
Inflation 2.40 1.10 2.0
Unemployment 9.40 10.5 11.6
77
Germany

• Europes largest, most populous economy
• Slow growth expected through 2006
• Budget deficit above 3 EU Stability Pact limit
• 4th consecutive year
• Inflation around 2

78
France

• Third quarter 2004
• GDP fell
• End user consumption fell
• Investment fell
• Modest growth of 1.75 expected in 2005
• Inflation above 2
• Budget deficit around 3 for 2005-2006

79
United Kingdom

• Slower consumer spending in 2004
• UK reduced growth to 3.1
• Expected to continue through 2005-1006
• Inflation expected to rise to 2
• Interest rates should be at their peak
• Tax increase may be necessary

80
Italy

• Slow, steady growth in 2004
• Projected increases in 2005 and 2006
• Growth aided by low inflation/interest rates
• Exports expected to improve
• Provided no further appreciation of the euro
  against the dollar

81
Spain

• Best performer of larger Euroland economies
• Growth of 2.75 in 2005-2006
• Steady consumer spending
• Increased investment
• Increased exports
• Inflation above average
• Strong euro hurts their competitive position

82
Netherlands

• Slow growth due to
• Strong euro
• Weakening external demand for goods
• Tighter fiscal policy
• Expected increase in 2006 to 2.25

83
Sweden

• Strong investment is growing the GDP
• Growth to 3 in 2005 and 2.75 in 2006
• Increased consumer spending good sign
• Labor market improvements aid growth
• Low inflation helps maintain low interest rates

84
Switzerland

• Hard hit by
• Decline in world trade
• Turmoil in financial services sector
• Decline reflected in low GDP growth
• .2 2002
• 1.8 2004
• 1.75 in 2005 and 2006 expected

85
Belgium

• Slow domestic demand kept inflation low
• Increased exports
• Improved competitive position
• Concerns
• Weakness in trading partners
• Large appreciation of the euro
• GDP for 2005-2006 expected at 2.5

86
Austria

• Strong economy during 2004
• Robust export growth
• Domestic demand remained weak
• GDP for 2005 expected to be 2.25
• GDP for 2006 expected to be 2.5
• Investment expected to increase as exports
  moderate

87
Ireland

• 5 GDP expected for 2005
• 4.75 GDP in 2006
• Irish economy exposed to any renewed downturn in
  international economic activity

88
Greece

• Economy expected to grow to 2.75 in 2005
• 2006 growth expected at 3
• Strength of economy could bring inflationary
  pressures

89
Future Growth of EU

• Depends upon
• Stability of global economies
• Controlling inflation
• Restructuring market and welfare programs
• Consumer spending
• Demand from the USA and Asia
• Strong euro
• Buy foreign goods for less
• Make euro-based exports cost more

90
Changes in Real Estate Markets

• Global debt crash in 1998
• Global credit crunch in early 1900s
• Introduction of euro and its strength
• Radical changes in currency exchange rates
• New national tax laws
• Global reforms in private property rights

91
Europe as Attractive Investment Market

• Huge market with potentially high yields
• Broad range of investment opportunities
• Diverse range of categories
• Governments privatizing municipal facilities
• Easing tax barriers encourage foreign investment

92
2005 European Housing Market Reviews
93
Austria

• Static 2003-2004
• Renewed activity expected for 2005
• High owner occupied rate 50
• Low taxes
• Capital gains exempt after 3 years

94
Belgium

• Housing boom continues
• 80 higher than 8 years ago
• Low interest rates
• Favorable tax system
• High exchange costs
• Mortgage interest relief on taxes
• Commercial lease terms 3, 6, 9 years

95
Denmark

• Optimistic housing market
• Price increases of 14.8
• Low interest rates
• Building incentives
• 4.9 growth in residential investment
• Owner-occupied mortgage interest relief
• 25 year loan terms

96
Finland

• Favorable mortgage rates
• Tax deductible mortgage interest
• Capital gains tax free after 2 years as principal
  residence
• Loan periods 17-18 years
• 7.6 housing growth expected in 2004
• Housing prices decreasing

97
France

• Housing boom strengthened in 2004
• Prices up 16 for existing and 10 new
  construction
• Housing price bubble of concern to lenders
• Low interest rates
• Market shifting to ownership
• No mortgage interest tax relief
• Capital gains exempt

98
Germany

• Housing market flat in 2004
• East Germany has an oversupply
• Prices falling for a decade
• Low level of ownership 40
• No mortgage interest tax relief
• Israel and USA strong commercial investors
• Germans may now invest more outside EU

99
Greece

• Housing prices remain low
• New housing investment remains strong
• Low interest rates
• Strong economy
• High ownership rate 74
• 1.75 million second homes highest in Europe
• Heavy migration from rural to urban living

100
Hungary

• Highest home ownership in Europe 90
• Average dwelling size 75m²
• Quality housing is hard to find
• Only 71 meet official comfort standards
• Maintenance is a major issue
• High interest rates
• No more state subsidy

101
Ireland

• Rise in housing prices is subsiding
• High level of investing in rental property
• Housing prices near peak
• Mortgage interest tax relief with caps
• New housing units down from 2004
• New construction tripled in 10 years from
  1994-2004

102
Italy

• Smallest EU housing stock at 30
• Financial and economic conditions shifted to
  ownership
• Tax breaks favor ownership
• New rental laws make private renting a poor
  investment
• Low interest rates
• Mortgage interest tax relief

103
Netherlands

• Economy at a standstill
• Low interest rate sustains high demand
• Long-term, fixed rate mortgages
• Housing supply is tight
• Home ownership at 54
• Income tax deducible mortgage interest
• No capital gains tax, high transaction costs

104
Poland

• Private ownership at 55
• 1.5 million unit housing shortage
• Average floor area 67m²
• Poor building quality
• 7.5 million homes need extensive repairs
• Interest rate caps imposed in 2002
• Mortgage market is small

105
Portugal

• Low interest rates
• Growing consumer confidence
• Property tax of 0-6
• Average size of new dwelling is 83m²
• Mortgage interest tax relief is small
• No capital gains exemption

106
Spain

• Housing boom beginning to slow
• Price growth 15.7 from 17.1
• 100,000 mortgage transactions/month
• Easy borrowing, low interest rates
• Loan terms 25-30 years
• Mortgage interest tax relief with exceptions
• Capital gains exemption

107
Sweden

• Strong economy
• Low interest rates
• Affordability becoming a problem
• Huge decline in housing subsidies
• Land supply at a premium
• 30 mortgage interest tax relief
• 15 capital gains tax
• 25 VAT tax on new housing

108
Switzerland

• Interest rate increases expected
• Home ownership as increased to 35
• Few owner benefits
• Fixed mortgage rates fixed for 5 years or less
• Possible loss of mortgage interest deductibility
  by 2008
• Partial capital gains exemption

109
United Kingdom

• Interest rate hikes have slowed market
• House purchase takes 3-6 months
• Variable rate mortgages have no cap on rate
• Interest rate changes can be made at any time
• Housing quality is high, supply is low
• 69 of Britons are homeowners

110
Proposed REIT Regimes

• Germany
• Expected January 2006
• REIT would be fully tax exempt
• Individual investors taxed at individual rates
• Non-resident investors subject to German
  withholding tax of 25 on dividends
• Issues remaining unclear
• Publicly traded corporate REITs and private?
• Included in investment tax law of 2003?
• German corporate tax law or specific REIT tax law?

111
Rental Rates

• High front-end expense
• VAT taxes
• Government taxes on every level
• Keymoney may be significant
• Past 5 years increases in rents and values
• Increases mark gains from unification
• Strict planning and regulation of new construction

112
Housing Costs

• European home ownership very expensive
• Modest 4 or 5 room single-family home in Europe
  exceeds 345,000
• Average home price in US 218,000
• Apartments expensive at 300 per sq. ft.
• Modest 2 bedroom unit would cost 300,000
• Prices are increasing at slower pace
• Investors should consider cross-border taxes and
  interest deductibility, not just mortgage rate

113
Space Availability

• Major market space hard to find
• New space virtually impossible
• High concern for tradition, environment and
  preservation
• Users locating in outer business parks and
  non-center high-rises
• As prices rise, marginal users moving voluntarily

114
Use of Agents

• Northern Europeans use agents more
• Southern Europeans use agents less
• UK, Ireland, Scandanavia agent-assisted
  transactions
• More mobile economies use agent services
• As economies modernize, demand will increase

115
Eastern European Economies

• Goals since fall of the Berlin Wall
• Decentralize and privatize industry and
  agriculture
• Move from heavy industry to other productive
  sectors
• Repair the environment
• Re-capitalize and modernize factories and
  infrastructure
• Introduce free market supply and demand
• Restore individual freedoms

116
Eastern EuropeReal Estate Markets

• Regional developments
• Democracy and free-market economics
• Renewed awareness of land value
• Struggle for identity and power
• Guidelines for competition
• Need for retail space
• Continued growth and expansion of free market
  economies

117
Globalization of Real Estate Trade Organizations

• International Real Property Foundation
• NAR and US Agency for International Development
• Conduct training
• Help create real estate professional associations
• NAR Cooperating Agreements
• 50 nations
• www.realtor.org/international
• Listed in Appendix

118
Key Point Review

• Europe major source of international real estate
  investment
• Most economies have increase in value and sales
• European economy affects FDI in other countries
• Eastern Europe great opportunities and high risk
• Trend to increased trade group interaction

119
Discussion Questions
120
How To Look At a Country
121
Objectives

• Identify social, economic and political
  characteristics of a country that shape its
  potential for investment
• Discuss business culture characteristics
• Analyze a sample country

122
International Market

• Market knowledge helps get the listing or buyer
• International transactions yield long-term
  business
• Travel and exposure to different cultures

• Knowledge necessary to
• Advise outbound investors
• Advise outbound users
• Work with inbound foreign investors
• Network effectively

123
In-Depth Information

• Sources of capital
• Government structure and attitudes
• The economy
• Market landmarks
• Local business and social culture

124
Do Your Homework!

• Learn necessary data
• Each culture different
• Business
• Social
• Dont try to transplant current business model to
  international
• History, economy, customs

125
Business Culture Overviews
126
Austria

• Punctual
• Great sense of humor
• Direct approach to negotiations
• Slow decision-making
• Classical music, opera, art and winter sport good
  conversation topics
• Avoid money, religion, anti-Semitism, WWII

127
Belgium

• Want to know you first
• Appreciate hard facts
• Business cards
• One side English
• Other side French or Dutch
• Assure client you will meet deadlines
• Safe topics cycling, soccer, food, beer, art
• Avoid Belgium history, politics, Germans

128
Czech Republic

• Dont use first names
• Maintain eye contact
• Speaking loudly considered impolite
• Remove shoes entering a home
• Joined NATO in 1999 and EU in 2004
• 2.7 million internet users in 2003

129
Denmark

• Punctuality extremely important
• Write day, month, year 27.05.05
• Freely express opinions, very tolerant and pro
  environment
• Consider compliments inappropriate
• Business stability important
• July/August vacation months

130
Finland

• 76 of Finland is forests and woodlands
• Population is 93.4 Finns
• Excel in high tech exports
• Dont talk with hands in pockets
• Punctuality important
• Less than 60 own primary residence

131
France

• Make appointments
• Spirited debates common
• Avoid politics or personal inquiries
• Learn basic French phrases
• Want firm personal relationship
• Logical, analytical, dont like hard sell
• Will examine every detail
• Reluctant to take risks

132
Germany

• Make appointments and be punctual
• Informal dress unless in banking
• Avoid conspicuous wealth
• Compliments not used
• Avoid personal questions
• Avoid WWII
• Good Soccer, travel, beer

133
Greece

• Often expressive in greetings
• Indicate no by tilting head backward or side to
  side

• Indicate yes by nodding head forward slightly
• Impolite to leave table before everyone is
  finished
• Capitalistic economy
• Tourism provides 15 of GDP

134
Hungary

• Greet with firm handshake
• Woman extends her hand first
• Hands kept above table when eating
• Impolite to leave food on plate

135
Ireland

• Family top priority
• Casual attitude about time
• Prefer direct eye contact
• Proud of their history
• Like to haggle/negotiate
• Transactions move slowly
• Avoid Catholic church

136
Italy

• Need well-connected contact for introductions
• Punctuality not high priority
• May need translator, translate business card
• Use titles and degrees, slow decision-making

137
Netherlands

• Punctuality essential
• Value efficiency
• Contacts vital
• Avoid boasting

• No need to translate business card
• Like concrete facts, statistics, hard data
• Respect honesty and straightforwardness

138
Norway

• Joined NATO in 1949
• Rejected joining EU in 1972 and 1994
• 0 external debt

• Water pollution/acid rain damaging forests and
  lakes
• Oil and gas production account for 1/3 of exports
• Government is privatizing

139
Poland

• Proud home of John Paul II and Lech Walesa
• Very rich culture and history
• Member of NATO and EU
• Democratic, fast developing
• Population 96.7 Polish
• 8.9 million internet users in 2003
• Punctuality important
• Be patient. Decision making is slow

140
Portugal

• Lunch is key business activity
• Punctuality not high priority
• Do no like confrontation
• Good home, family, soccer
• Avoid religion, money
• Short term outcome more important than long term
  benefits

• No respect for deadlines
• Signed document 1st step in negotiation
• Dont put all cards on table
• Truthfulness flexible in negotiations

141
Russia

• Appointments hard to get
• Be punctual
• Client may be late
• Affection for children
• Titles are important
• Translate business card
• Do not use plastic cups

142
Slovakia

• Joined NATO and EU in 2004
• Air pollution presents human health risks
• Acid rain is damaging forests
• Landlocked country
• Population is 85.8 Slovak
• Business-friendly 19 flat tax
• Privatization nearly complete
• Internet users in 2003 were 1,375,800

143
Spain

• One of least punctual countries in Europe
• Modesty valued above assertiveness
• Good travel, Spanish wines, traditions
• Avoid Franco, religion, Gibraltar, WWII
• Business cards English/Spanish
• Personal contacts important
• Be patient/decision-making slow
• Feelings more important than
  objective facts

144
Sweden

• Never be late
• Observe vacation times
• Accept silence with ease
• Signed contract, thats it

• Avoid compliments, high cost of living
• Good travel, hockey and nature
• Do not send mums, white lilies, red roses,
  orchids
• No need to translate business card
• Short, concise, easy to understand information

145
Switzerland

• Meetings by appointment
• No pretentious displays
• Polite conversationalists
• Good world affairs and winter sports
• Avoid neutrality, money, banks, WWI, WWII
• Business serious, no humor

• Extremely punctual
• Very private
• Good listeners
• Be clear and concise
• Keep accurate records for negotiating they will!

146
United Kingdom

• Common law legal system
• Punctuality appreciated
• Quality, conservative dress
• Tolerant, open-minded, reserved
• Multi-cultural, multi-racial society
• Avoid Northern Ireland, monarch, EU, euro.
  Middle East, personal questions
• Blunt/direct, masters of understatement

147
Country Assessment Model
Real Estate
Model Components
148
Sample Analysisof a Country Profile

• Netherlands

149
Group Exercise
150
Conversion Exercise
4-39

• Convert 150 m² to square feet
• 150 X __________ __________

10.7639
1614.59
151
Conversion Exercises
4-39

• Convert euros to US
• Conversion factor 1 1.19 US
• 14 X __________ __________ US
• 14.5 X __________ __________ US
• 16.5 X __________ __________ US
• 13 X __________ __________ US
• 25 X __________ __________ US
• 100 X __________ __________ US

1.19
16.66
1.19
17.26
1.19
19.64
1.19
15.47
1.19
29.75
1.19
119.00