Project #2: Real Estate Country Overview REE 6935 – Fall 2020 – Dr. Beracha This project is a real estate country overview on a country of your choice. Your report should generally touch on the...

this is a group project, and my portion of responsibility is highlighted, in the last section of the project guidelines.


Project #2: Real Estate Country Overview REE 6935 – Fall 2020 – Dr. Beracha This project is a real estate country overview on a country of your choice. Your report should generally touch on the outlined topics below, but not necessarily all of them. The idea for this project is for you to make yourself aware of the real estate systems within your country of choice. You will be working on this assignment in a group of 4-6 students. A project submitted by a group that doesn’t include 4-6 students will incur a grade penalty of 10%. The assignment is due on or before December 17th at 5:30 p.m. EST. By that time you should submit an electronic copy (via Canvas, not via email) of your assignment. Additionally, you will present your results in class (in person or via Zoom) on December 17th. If you turn your assignment late, 10% will be deducted from your grade for every calendar-day delay. Before you begin working on this project, one representative from each group must email me with the names of the group members and a choice of three countries (in order of preference) and I will assign you the county for your overview. Your complete assignment should read and look like a professional report and include the following sections: • Demographics and statistics - Population, GDP growth, language, unemployment (only include the basic, and the most important demographics and stats – don’t spend too much time on that portion of the project) - Real Estate market conditions (supply and demand, appreciation/depreciation of prices, availability of properties, etc…) NO MORE THAN 15% OF THE PROJECT SHOULD BE DEDICATED TO COUNTRY DEMOGRAPHICS, HISTORY OR GENERAL INFORMATION. • Private or Public restrictions on ownership - Power of taxation: Ad valorem tax? - Steps involved in taxing a property (based on purchase price/appraised value, annual or other) - Do the government or the state/different regions collect property taxes? - Capital gains taxes • Government Powers - Corporate and investor governance - Police powers - Is there an eminent domain? - Zoning and planning - Code enforcement - Who enforces the ordinances? - Who controls and permits any changes to the property (new fixtures, beautification – sort of like Homeowner’s Association in USA) • Financing Residential Property - Currency and interest rates - Country mortgage practice: Promissory note? Provisions? - Qualifications to get a mortgage: Domestic vs. Foreign investors - Mortgage Rates - Structure of the housing finance system: Primary vs. Secondary market - Does a secondary mortgage market exist? - Who are the mortgage originators & investors? Where do they get their capital? • Deeds/Title - Do they have this document or equivalent? - Does grantor give it? - Elements necessary for a deed to be valid - How many people sign a deed (U.S.: only one-the grantor) - Transfer of title - Type of ownership • Insurance - Title Insurance etc. - Homeowner’s insurance requirements • Contracts - Necessary elements of a valid contract - Sales contracts: Which elements should include? Drafted by whom? - Breach of contract - Do they have abstracts or an equivalent? - Do they have an equivalent of a REIT? • Property and/or Agent Disclosure requirements • Leases - Elements it contains/Requirements - Landlord & tenant’s responsibilities - The eviction processes - Rent control • The Real Estate Sales Process - Listing the property - MLS system or equivalent? Is it a proprietary database? - What level of data is available to the open public? - Marketing the property - Presentation and negotiations - Closing process: buyer and sellers’ responsibilities • Licensing requirements and process - Which government body oversees the licensing? - Training requirements • Responsibilities of salesperson & broker - Their Role - Broker & salesperson compensation - Broker’s representation (who does the broker represent?) • Foreclosures • Property management • Securitized Real Estate (i.e., REIT like) • Construction of new property - Building permits - Cost of new construction - Government restrictions Deliverables: - ONE PDF file including text and any related charts or tables. The PDF file should be organized as a complete and well flowing report. The total length of the report must not exceed 9 pages (single space, font size 12 and default size margins). This 9-page limit should include your title, table of contents and all references. - ONE PowerPoint file including your presentation slides. Your assignment files should be named: “SENDER’S NAME – REE6935_Proj2_PDF” “SENDER’S NAME – REE6935_Proj2_PP”