Missed the Mexico Real Estate bus in the year 2009? Year 2010 is approaching fast. After a rollercoaster ride in 2009, what does the year 2010 holds for Mexico Real Estate? One thing is for sure, recession is nearing its end worldwide and the coming year promises to be a lot better year for Mexico Real Estate.
1) Emerging Markets leading the fight against recession: Developing countries with great growth outlook like China , India and Brazil have taken the lead in fighting recession and have seen registered growth in economy even as the developed countries were trying to get out of recession.
Mexico due to it's proximity to United States and low manpower cost is poised to be the next success story.
2) Secure and Stable Economic Environment: If you scratch the surface beneath those exaggerated news reports on crime and H1N1 flu, you will find that a large part of Mexico is peaceful and stable. Mexico is very popular with tourists, retirees, expats and real estate investors and this is a proof that Mexico is a safe & secure investment destination. This makes it very conducive to future economic growth.
3) Upward trend in Mortgage Loans: Mexico mortgage lending is slated to boom next year which means increased liquidity in market leading to increased buying. With market flush with money, the demand will rise and hence, prices will go up. Investors buying early in 2010 stand to gain more due to prospect of increase in Mexico Real estate prices later.
4) Improvement in Infrastructure: Mexico is witnessing government spending in the area of infrastructure development. New airport in Riviera Maya, sea port on the Pacific coast and improvement in highway and road network, all will bring good news in the year 2010.
5) High Quality healthcare: Mexico offers high standards of healthcare services. For this reason, for decades, retirees have been living in Mexico without any concern regarding the quality and price of healthcare.
6) Tropical Climate: The warm, sunny climate in Mexico makes it irresistible to people seeking relief from cold weather in their native counties like Canada.
7) Dollar vs. Peso: The US dollar continues to get stronger and hence living costs in Mexico are cheaper then they were a year back and quality of life in Mexico is just as in US or Canada.
8) Favored destination for celebrities: Mexico is a favorite destination for Hollywood and other celebrities with many owning Real Estate in Mexico . There is a good chance that you may get to see a Hollywood actor/actress in Mexico.
9) World class Real Estate developments: Mexico offers world class and a wide range of real estate projects. From beachfront villas to condos to traditional houses, Mexico has a lot to offer for everyone.
10) Culture and Natural beauty: Mexico is a country blessed with ecological beauty, friendly people and rich culture. Foreigners are welcomed here with a big smile and open arms.
By Tom Budniak
Saturday, December 26, 2009
Thursday, December 17, 2009
Private Investment in Mexico’s Tourism Sector Booming
Exceeding US$11.6 billion, private investment in Mexico’s tourism sector has already surpassed federal goals for the 2001 to 2006 period by 29 percent, reports Sectur in its latest comprehensive study on the subject. Domestic and foreign private investment reached the original US$9 billion goal in June 2005, after increasing at least 12 percent annually since 2002.
The report also shows that interest in Mexico’s famous beaches remains high, with the sun and beach segment outpacing all other tourism products by garnering 48 percent of private investment. Three coastal states also ranked in the top three in amount of private investment received: Guerrero State (US$2.63 billion), Quintana Roo State (US$2.47 billion) and Nayarit State (US$92.5 million) captured almost 52 percent of the total amount invested between 2001 and 2006.
Approximately 89 percent of private investment in Guerrero went to tried-and-true beach resort Acapulco on the Pacific Ocean, whereas 82 percent of the private investment Quintana Roo received was channeled to the Mexican Caribbean hot spots Cancun and Riviera Maya. More than 60 percent of Nayarit’s private investment went to the Pacific resort town of Nuevo Vallarta.
Rounding out the top Mexican five states receiving the highest amount of public investment are border states of Baja California (US$86.3 million) and Sonora (US$78.4 million). Together, the states on the U.S./Mexico border, which also include Chihuahua, Coahuila, Nuevo Leon and Tamaulipas, received 19 percent of private investment in Mexico, ranking the region second overall.
Among the northern region’s major tourism attractions are Copper Canyon in Chihuahua; the La Quemada archaeological sites in Zacatecas; the bustling city of Monterrey in Nuevo Leon and 200,000-acre Cuatro Cienegas Valley in Coahuila. International sources account for 25 percent of all private investment, with the United States as the top foreign investor in Mexico’s tourism infrastructure.
Mexico has long been taking strategic steps to stimulate tourism and attract private investors through its National Trust Fund for Tourism Development, Fonatur. This government agency is responsible for conceiving, planning and building five sea-side tourism destinations – Cancun, Los Cabos, Ixtapa, Loreto and the Bays of Huatulco – since its 1974 inception.
These resorts areas generate 54 percent of foreign revenue entering the country from tourism and benefit from a master plan, urban-resort planning mechanisms, and annual construction programs and enforcement.
Because fomenting international tourism is a national priority for Mexico, the country’s regulatory framework legally protects foreign investors. Mexico allows foreign investors to have ownership in the majority of economic fields and activities, including real estate, allowing 100 percent participation in shared capital. Investors are also offered a profitability guarantee and investment security through Fonatur.
In addition to the ease of investing in Mexico, investors are also attracted by the security of investing in a proven destination: Mexico is the world’s seventh most-visited country and ranks 12th in terms of foreign revenue earnings from tourism; in both categories, it is the leader in Latin America.
Fonatur’s efforts have been recognized by industry organizations such as the Live in Spain association, which honored the agency with its development and promotion of residential tourism award during the 2006 edition of the Madrid Real Estate Exhibition.
About Fonatur
Created in 1974, Mexico’s National Trust Fund for Tourism Development (Fonatur) is the premier developer of integrally-planned tourism destinations in Mexico and has created such world-class resort areas as Cancun, Ixtapa, Loreto, Los Cabos and more recently, Huatulco. To diversify the nation’s tourism industry and give it a more competitive edge, Fonatur builds and promotes new tourist resorts that meet market demand and at the same time spur social change in different parts of the country. Fonatur often serves a joint venture partner for private investors who want to benefit from participation in Mexico’s high-quality tourism development programs. For more information on Fonatur, visit www.fonatur.gob.mx.
About the Mexico Tourism Board
The Mexico Tourism Board (MTB) brings together the resources of federal and state governments, municipalities and private companies to promote Mexico’s tourism attractions and destinations internationally. Created in 1999, the MTB is Mexico’s tourism promotion agency, and its participants include members of both the private and public sectors. The MTB has offices throughout North America, Europe, Asia and Latin America.
Erick Laseca
Mexico Tourism Board
312-228-0517 x14
erick.laseca@bm.com
The report also shows that interest in Mexico’s famous beaches remains high, with the sun and beach segment outpacing all other tourism products by garnering 48 percent of private investment. Three coastal states also ranked in the top three in amount of private investment received: Guerrero State (US$2.63 billion), Quintana Roo State (US$2.47 billion) and Nayarit State (US$92.5 million) captured almost 52 percent of the total amount invested between 2001 and 2006.
Approximately 89 percent of private investment in Guerrero went to tried-and-true beach resort Acapulco on the Pacific Ocean, whereas 82 percent of the private investment Quintana Roo received was channeled to the Mexican Caribbean hot spots Cancun and Riviera Maya. More than 60 percent of Nayarit’s private investment went to the Pacific resort town of Nuevo Vallarta.
Rounding out the top Mexican five states receiving the highest amount of public investment are border states of Baja California (US$86.3 million) and Sonora (US$78.4 million). Together, the states on the U.S./Mexico border, which also include Chihuahua, Coahuila, Nuevo Leon and Tamaulipas, received 19 percent of private investment in Mexico, ranking the region second overall.
Among the northern region’s major tourism attractions are Copper Canyon in Chihuahua; the La Quemada archaeological sites in Zacatecas; the bustling city of Monterrey in Nuevo Leon and 200,000-acre Cuatro Cienegas Valley in Coahuila. International sources account for 25 percent of all private investment, with the United States as the top foreign investor in Mexico’s tourism infrastructure.
Mexico has long been taking strategic steps to stimulate tourism and attract private investors through its National Trust Fund for Tourism Development, Fonatur. This government agency is responsible for conceiving, planning and building five sea-side tourism destinations – Cancun, Los Cabos, Ixtapa, Loreto and the Bays of Huatulco – since its 1974 inception.
These resorts areas generate 54 percent of foreign revenue entering the country from tourism and benefit from a master plan, urban-resort planning mechanisms, and annual construction programs and enforcement.
Because fomenting international tourism is a national priority for Mexico, the country’s regulatory framework legally protects foreign investors. Mexico allows foreign investors to have ownership in the majority of economic fields and activities, including real estate, allowing 100 percent participation in shared capital. Investors are also offered a profitability guarantee and investment security through Fonatur.
In addition to the ease of investing in Mexico, investors are also attracted by the security of investing in a proven destination: Mexico is the world’s seventh most-visited country and ranks 12th in terms of foreign revenue earnings from tourism; in both categories, it is the leader in Latin America.
Fonatur’s efforts have been recognized by industry organizations such as the Live in Spain association, which honored the agency with its development and promotion of residential tourism award during the 2006 edition of the Madrid Real Estate Exhibition.
About Fonatur
Created in 1974, Mexico’s National Trust Fund for Tourism Development (Fonatur) is the premier developer of integrally-planned tourism destinations in Mexico and has created such world-class resort areas as Cancun, Ixtapa, Loreto, Los Cabos and more recently, Huatulco. To diversify the nation’s tourism industry and give it a more competitive edge, Fonatur builds and promotes new tourist resorts that meet market demand and at the same time spur social change in different parts of the country. Fonatur often serves a joint venture partner for private investors who want to benefit from participation in Mexico’s high-quality tourism development programs. For more information on Fonatur, visit www.fonatur.gob.mx.
About the Mexico Tourism Board
The Mexico Tourism Board (MTB) brings together the resources of federal and state governments, municipalities and private companies to promote Mexico’s tourism attractions and destinations internationally. Created in 1999, the MTB is Mexico’s tourism promotion agency, and its participants include members of both the private and public sectors. The MTB has offices throughout North America, Europe, Asia and Latin America.
Erick Laseca
Mexico Tourism Board
312-228-0517 x14
erick.laseca@bm.com
Wednesday, December 9, 2009
Mexico Real Estate – Excellent Retirement Option for Strong Canadian Dollar
by Thomas Lloyd
Canadians who are thinking of retiring anytime in the near future have a unique option in the Mexico Real Estate market. While recent studies have shown that a good retirement can be planned within a very wide range of budgets, the facts that Mexico Real Estate available for excellent prices and that the cost of living in Mexico is relatively low make this point even more true for soon-to-be retired Canadians planning to make their retirement savings go as far as possible. These benefits have also been considerably strengthened recently by the considerable strength the Canadian dollar has gained recently, both against the American dollar and the Mexican peso, and also by a very high point in competition and sales prices in the real estate market in Canada.
Research in Canada has shown that Canadians can afford to retire on a very wide variety of budgets. One story tells how a woman complained that she only had $2 million saved, and it wasn't enough for her retirement; the woman beside her said she already had $200,000 and it was more than enough. The point is that each woman was able to live according her own needs. Whatever budget you're looking at for your retirement, property in Mexico offers a way to make this budget go further.
One of the main reasons why a budget will go further in Mexico now is the strength of the Canadian dollar. First of all, let's consider how the Canadian dollar has behaved recently. Only earlier this decade the dollar was down at a low of about 65 cents US. Little by little this began to rise, with a few ups and downs, and by December 2008, the Canadian dollar was hovering around 80 cents US. Starting around April this year, Canada's dollar jumped to above 90 cents in about to month, and then over the rest of the year it has risen to about 95 cents, as the chart below shows.
What does this mean for Canadians hoping to buy a Mexico property for their retirement? In most of the beachfront destinations, and other attractive retirement locations, properties are sold in American dollars, since they are geared towards the international market. A search in the Mexico MLS listings will show that retirement-friendly properties in international communities near the beachfront, or on a beautiful lake location, can be found for as low as $75,000 US, heading up to about $2,000,000 US.
Let's take a lower-middle price of about $400,000. If your budget 1 year ago allowed you to buy a beautiful, beachfront condo for $400,000 US with a pool, and many other luxuries, the strong Canadian dollar would now allow you close to $500,000, opening up many more options, or stepping up the luxury one notch. Or, on the other hand, you could buy that same property, which last year would have cost you $500,000 Canadian (with an 80 cent exchange rate), for about $416,000 Canadian, leaving you almost $85,000 more in savings for your retirement.
Also, let's consider what you'll get for that $400,000. Currently, in Toronto, which is seeing a condo boom, the large number of young buyers – who are still willing to put up with Canadian winters for a while – have pushed the prices up, and average unit runs just under $425,000. We must remember, these are just average prices; while a unit for about this price is definitely pleasant, in a Mexico beachfront location, a condo a this price can get you not only the same or higher level of style and comfort, but also many benefits such as pool, warm weather all year round, and, most importantly, a condo building with a beautiful ocean view, only steps away from soft, white beaches, that stretch out for miles on end, spotted with palm trees. And if you imagine a house for your retirement, large, beautiful homes of a variety of styles are available in key retirement destinations such La Paz, Playa del Carmen, Lake Chapala and many other for this price and less. Again, who can argue with warm weather, an ocean view, and a short walk to the beach? Of course, this $400,000 was an example, and these savings and benefits are true for any budget or lifestyle choice, whether lower or higher.
Remember those $85,000 you saved by buying a Mexico property with the strong Canadian dollar? They will go a long way in a Mexico Retirement. While the Canadian dollar has gained considerable strength on the American dollar, the Mexican peso has hovered just around 13 pesos per US dollar. This means that the Canadian dollar will also go a lot further here to cover day to day expenses and purchases. Large Mexican chains, and international stores such as Walmart offer many of the same products as we can find back home, but at Mexican prices. In general, groceries and many other products are already available at relatively lower prices in Mexico, the current strength of Canada's dollar will make this even more significant; lower cost of living can help to make your retirement budget more realistic.
Canadians who are thinking of retiring anytime in the near future have a unique option in the Mexico Real Estate market. While recent studies have shown that a good retirement can be planned within a very wide range of budgets, the facts that Mexico Real Estate available for excellent prices and that the cost of living in Mexico is relatively low make this point even more true for soon-to-be retired Canadians planning to make their retirement savings go as far as possible. These benefits have also been considerably strengthened recently by the considerable strength the Canadian dollar has gained recently, both against the American dollar and the Mexican peso, and also by a very high point in competition and sales prices in the real estate market in Canada.
Research in Canada has shown that Canadians can afford to retire on a very wide variety of budgets. One story tells how a woman complained that she only had $2 million saved, and it wasn't enough for her retirement; the woman beside her said she already had $200,000 and it was more than enough. The point is that each woman was able to live according her own needs. Whatever budget you're looking at for your retirement, property in Mexico offers a way to make this budget go further.
One of the main reasons why a budget will go further in Mexico now is the strength of the Canadian dollar. First of all, let's consider how the Canadian dollar has behaved recently. Only earlier this decade the dollar was down at a low of about 65 cents US. Little by little this began to rise, with a few ups and downs, and by December 2008, the Canadian dollar was hovering around 80 cents US. Starting around April this year, Canada's dollar jumped to above 90 cents in about to month, and then over the rest of the year it has risen to about 95 cents, as the chart below shows.
What does this mean for Canadians hoping to buy a Mexico property for their retirement? In most of the beachfront destinations, and other attractive retirement locations, properties are sold in American dollars, since they are geared towards the international market. A search in the Mexico MLS listings will show that retirement-friendly properties in international communities near the beachfront, or on a beautiful lake location, can be found for as low as $75,000 US, heading up to about $2,000,000 US.
Let's take a lower-middle price of about $400,000. If your budget 1 year ago allowed you to buy a beautiful, beachfront condo for $400,000 US with a pool, and many other luxuries, the strong Canadian dollar would now allow you close to $500,000, opening up many more options, or stepping up the luxury one notch. Or, on the other hand, you could buy that same property, which last year would have cost you $500,000 Canadian (with an 80 cent exchange rate), for about $416,000 Canadian, leaving you almost $85,000 more in savings for your retirement.
Also, let's consider what you'll get for that $400,000. Currently, in Toronto, which is seeing a condo boom, the large number of young buyers – who are still willing to put up with Canadian winters for a while – have pushed the prices up, and average unit runs just under $425,000. We must remember, these are just average prices; while a unit for about this price is definitely pleasant, in a Mexico beachfront location, a condo a this price can get you not only the same or higher level of style and comfort, but also many benefits such as pool, warm weather all year round, and, most importantly, a condo building with a beautiful ocean view, only steps away from soft, white beaches, that stretch out for miles on end, spotted with palm trees. And if you imagine a house for your retirement, large, beautiful homes of a variety of styles are available in key retirement destinations such La Paz, Playa del Carmen, Lake Chapala and many other for this price and less. Again, who can argue with warm weather, an ocean view, and a short walk to the beach? Of course, this $400,000 was an example, and these savings and benefits are true for any budget or lifestyle choice, whether lower or higher.
Remember those $85,000 you saved by buying a Mexico property with the strong Canadian dollar? They will go a long way in a Mexico Retirement. While the Canadian dollar has gained considerable strength on the American dollar, the Mexican peso has hovered just around 13 pesos per US dollar. This means that the Canadian dollar will also go a lot further here to cover day to day expenses and purchases. Large Mexican chains, and international stores such as Walmart offer many of the same products as we can find back home, but at Mexican prices. In general, groceries and many other products are already available at relatively lower prices in Mexico, the current strength of Canada's dollar will make this even more significant; lower cost of living can help to make your retirement budget more realistic.
U.S. Starts Pulling out of Recession – Ideal Time for Mexico Real Estate Buyers to Make Their Move
by Thomas Lloyd
Estate you will already know that in the third quarter of this year, the U.S. economy appears to be pulling out of the recession, with an annualized growth of 3.5%, and a Gross Domestic Product (GDP) exceeding the expectations of most analysts and showing a growth of 3%. While this is big news in many ways, it is also an important consideration for your Mexico Real Estate purchase.
If you are buying a Mexico property these days, one of the factors you are most certainly considering are the attractive reduction available on that beautiful beachfront condo, perfect for your retirement or as a second home the winter months. These kind of special deals are being offered in many key Mexico Real Estate destinations for many property types. Also, there is large selection created by a lack of buyers over the past two years. Right now many locations offer a true buyer's market. These are certainly attractive motivations to buy.
Now let's consider the current economic situation. The U.S. economy grew at an annualized rate of 3.5% in the third quarter of this year, which is the first positive result in one year, and the biggest growth in two years, as reported by the Commerce Department in the last week of October.
Between June 2008 and June 2009, the economy had contracted 3.8%, the worst performance in seven decades. The long-awaited shift ended four consecutive quarters of economic contraction, the first time this has happened since 1947, when records of these statistics were first made.
The numbers show that the recession has quite probably ended, and the economic situation for buyers is starting to improve. Of course, we have to consider the fact that, as President Obama has pointed out, the economy has pulled out of reverse, but there is still a long way to go for recovery, which has just begun.
As this happens, of course there will still great property options, but just not as many, and without the great price reductions we are seeing now.
As a buyer, where would you rather be – buying your second home now with all the options you could want, and at great prices and with attractive buying incentives, or later when you demand and competition from other buyers begins to remove the advantages you as a buyer have now? If you are thinking about buying your second home on the beachfront, or if you are ready to start planning for your retirement in Mexico, start your property search now so you can take your time in the search, and find that property perfect for you as the buyer, while you still have the many advantages the market offers now. Contact TOPMexicoRealEstate.com, "Your Expert Property-Finders," to find the information and guidance you need.
TOPMexicoRealEstate NETWORK; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely
About the Author:
Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!" Region: Playa del Carmen Real Estate by Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. You can contact him at (512) 879-6546.
Estate you will already know that in the third quarter of this year, the U.S. economy appears to be pulling out of the recession, with an annualized growth of 3.5%, and a Gross Domestic Product (GDP) exceeding the expectations of most analysts and showing a growth of 3%. While this is big news in many ways, it is also an important consideration for your Mexico Real Estate purchase.
If you are buying a Mexico property these days, one of the factors you are most certainly considering are the attractive reduction available on that beautiful beachfront condo, perfect for your retirement or as a second home the winter months. These kind of special deals are being offered in many key Mexico Real Estate destinations for many property types. Also, there is large selection created by a lack of buyers over the past two years. Right now many locations offer a true buyer's market. These are certainly attractive motivations to buy.
Now let's consider the current economic situation. The U.S. economy grew at an annualized rate of 3.5% in the third quarter of this year, which is the first positive result in one year, and the biggest growth in two years, as reported by the Commerce Department in the last week of October.
Between June 2008 and June 2009, the economy had contracted 3.8%, the worst performance in seven decades. The long-awaited shift ended four consecutive quarters of economic contraction, the first time this has happened since 1947, when records of these statistics were first made.
The numbers show that the recession has quite probably ended, and the economic situation for buyers is starting to improve. Of course, we have to consider the fact that, as President Obama has pointed out, the economy has pulled out of reverse, but there is still a long way to go for recovery, which has just begun.
As this happens, of course there will still great property options, but just not as many, and without the great price reductions we are seeing now.
As a buyer, where would you rather be – buying your second home now with all the options you could want, and at great prices and with attractive buying incentives, or later when you demand and competition from other buyers begins to remove the advantages you as a buyer have now? If you are thinking about buying your second home on the beachfront, or if you are ready to start planning for your retirement in Mexico, start your property search now so you can take your time in the search, and find that property perfect for you as the buyer, while you still have the many advantages the market offers now. Contact TOPMexicoRealEstate.com, "Your Expert Property-Finders," to find the information and guidance you need.
TOPMexicoRealEstate NETWORK; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely
About the Author:
Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!" Region: Playa del Carmen Real Estate by Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. You can contact him at (512) 879-6546.
Monday, November 30, 2009
$501 Million Investment In Mexican Real Estate
By: Investment Properties Mexico In a move that will be seen as massive vote of confidence in the Mexico investment and property markets, international financial services giant, Prudential Financial Inc, plans to raise around $501 million to invest in Mexico real estate.
The brokerage division of Mexico’s top bank, BBVA Bancomer, said last week that it was working for Prudential’s real estate investment arm to list an infrastructure trust on the Mexican stock exchange to raise the funds.
The Mexico investment bank said, “Mexico’s industrial [property] market is well positioned to benefit from the coming economic recovery in the medium term.”
The Prumex Industrial III real estate fund will use the money raised from the placing to buy and develop industrial Mexico investment properties.
Paulo Gomez, spokesman for Prudential Real Estate Investors (PREI) Latin America, told Dow Jones newswire that the fund will go to market in the next four months and should be completely invested over a period of five years.
According to a press release from BBVA Bancomer the target internal rate of return is 16% to 22% with a yield of 8% to 12%.
PREI has been investing in Latin America and Mexico real estate since 2000. They manage funds in the industrial, residential, and retail real estate sectors in Mexico and Brazil with gross assets under management in Latin America of over $2.6 billion.
The announcement follows comments from international investors and credit rating agencies that the Mexican government’s new fiscal package will ensure funds continue to flow into Mexico investments.
Article from Investment Properties Mexico, experts in investment real estate in Mexico. For information email info [at] investmentpropertiesmexico.com, call Mexico (984) 802-8336 or USA (561) 459-5448, or visit their website for more on Mexico investment
The brokerage division of Mexico’s top bank, BBVA Bancomer, said last week that it was working for Prudential’s real estate investment arm to list an infrastructure trust on the Mexican stock exchange to raise the funds.
The Mexico investment bank said, “Mexico’s industrial [property] market is well positioned to benefit from the coming economic recovery in the medium term.”
The Prumex Industrial III real estate fund will use the money raised from the placing to buy and develop industrial Mexico investment properties.
Paulo Gomez, spokesman for Prudential Real Estate Investors (PREI) Latin America, told Dow Jones newswire that the fund will go to market in the next four months and should be completely invested over a period of five years.
According to a press release from BBVA Bancomer the target internal rate of return is 16% to 22% with a yield of 8% to 12%.
PREI has been investing in Latin America and Mexico real estate since 2000. They manage funds in the industrial, residential, and retail real estate sectors in Mexico and Brazil with gross assets under management in Latin America of over $2.6 billion.
The announcement follows comments from international investors and credit rating agencies that the Mexican government’s new fiscal package will ensure funds continue to flow into Mexico investments.
Article from Investment Properties Mexico, experts in investment real estate in Mexico. For information email info [at] investmentpropertiesmexico.com, call Mexico (984) 802-8336 or USA (561) 459-5448, or visit their website for more on Mexico investment
Tuesday, October 27, 2009
Medical Tourism And JCI Accreditation
By: Khaki Scott
Joint Commission International is a non-governmental organization whose mission it is to “continuously improve health care for the public, in collaboration with other stakeholders, by evaluating health care organizations and inspiring them to excel in providing safe and effective care of the highest quality and value.” Their efforts stem from a long history of professional health care providers who saw the need for standardization and improvement of care as early as 1910. As the world has grown smaller, Joint Commission International has broadened its reach to include every health care specialty, as well as to include hospitals and health care facilities around the world.
When Mexico Real Estate Investment ran our first story on Joint Commission International accredited medical facilities in Mexico, there were only two and they were both in Monterrey, Nuevo Leon. Today, in September 2009, there are a total of eight JCI accredited medical facilities in Mexico and more on the way. These internationally accredited medical facilities include:
In Mexico City: Both of the ABC Hospitals are accredited by Joint Commission and are a part of the Methodist International Hospital Network.
American British Cowdray Medical Center IAP – Observatorio Campus, The
Mexico City, Mexico
Program: Hospital
First Accredited: Dec. 6, 2008
American British Cowdray Medical Center IAP – Santa Fe Campus, The
Mexico City, Mexico
Program: Hospital
First Accredited: Dec. 12, 2008
The CHRISTUS hospitals are a chain that is owned and operated by the CHRISTUS Foundation, a Catholic non-profit organization. They now have 7 hospitals, 27 Clinics, a very modern ambulance service, 2 Rehabilitation and Physical Therapy Centers, and 7 Social Assistance Clinics in Mexico, as well as hospitals throughout Texas, Louisiana, Arkansas, and Mississippi.
Christus Muguerza Alta Especialidad
Monterrey, Mexico
Program: Hospital
First Accredited: July 22, 2007
Hospital CIMA Monterrey
San Pedro Garza Garza, Nuevo Leon
Program: Hospital
First Accredited: Dec. 19, 2008
Hospital CIMA Hermosillo
Hermosillo, Sonora
Program: Hospital
First Accredited: Dec. 11, 2008
Hospital San Jose Tec de Monterrey
Monterrey, Nuevo Leon
Program: Hospital
First Accredited: Dec. 25, 2007
Hospital Y Clinica OCA, S.A. de C.V.
Monterrey, Nuevo Leon
Program: Hospital
First Accredited: Sept. 27, 2008
Clinica Cumbres Chihuahua
Chihuahua, Mexico
Program: Ambulatory Care
First Accredited: April 23, 2008
These are, by no means, the only good hospitals in Mexico. There are thousands of excellent hospitals throughout the nation, as well as internationally recognized university teaching hospitals. As one would do in one’s home country, before choosing a hospital in Mexico, please do as much of an investigation of their reputation within the hospital and expat communities as possible. With that one caution, there is no reason not to choose Mexico for elective medical services and certainly no reason to fear them in case of emergency.
(source: Joint Commission International)
Joint Commission International is a non-governmental organization whose mission it is to “continuously improve health care for the public, in collaboration with other stakeholders, by evaluating health care organizations and inspiring them to excel in providing safe and effective care of the highest quality and value.” Their efforts stem from a long history of professional health care providers who saw the need for standardization and improvement of care as early as 1910. As the world has grown smaller, Joint Commission International has broadened its reach to include every health care specialty, as well as to include hospitals and health care facilities around the world.
When Mexico Real Estate Investment ran our first story on Joint Commission International accredited medical facilities in Mexico, there were only two and they were both in Monterrey, Nuevo Leon. Today, in September 2009, there are a total of eight JCI accredited medical facilities in Mexico and more on the way. These internationally accredited medical facilities include:
In Mexico City: Both of the ABC Hospitals are accredited by Joint Commission and are a part of the Methodist International Hospital Network.
American British Cowdray Medical Center IAP – Observatorio Campus, The
Mexico City, Mexico
Program: Hospital
First Accredited: Dec. 6, 2008
American British Cowdray Medical Center IAP – Santa Fe Campus, The
Mexico City, Mexico
Program: Hospital
First Accredited: Dec. 12, 2008
The CHRISTUS hospitals are a chain that is owned and operated by the CHRISTUS Foundation, a Catholic non-profit organization. They now have 7 hospitals, 27 Clinics, a very modern ambulance service, 2 Rehabilitation and Physical Therapy Centers, and 7 Social Assistance Clinics in Mexico, as well as hospitals throughout Texas, Louisiana, Arkansas, and Mississippi.
Christus Muguerza Alta Especialidad
Monterrey, Mexico
Program: Hospital
First Accredited: July 22, 2007
Hospital CIMA Monterrey
San Pedro Garza Garza, Nuevo Leon
Program: Hospital
First Accredited: Dec. 19, 2008
Hospital CIMA Hermosillo
Hermosillo, Sonora
Program: Hospital
First Accredited: Dec. 11, 2008
Hospital San Jose Tec de Monterrey
Monterrey, Nuevo Leon
Program: Hospital
First Accredited: Dec. 25, 2007
Hospital Y Clinica OCA, S.A. de C.V.
Monterrey, Nuevo Leon
Program: Hospital
First Accredited: Sept. 27, 2008
Clinica Cumbres Chihuahua
Chihuahua, Mexico
Program: Ambulatory Care
First Accredited: April 23, 2008
These are, by no means, the only good hospitals in Mexico. There are thousands of excellent hospitals throughout the nation, as well as internationally recognized university teaching hospitals. As one would do in one’s home country, before choosing a hospital in Mexico, please do as much of an investigation of their reputation within the hospital and expat communities as possible. With that one caution, there is no reason not to choose Mexico for elective medical services and certainly no reason to fear them in case of emergency.
(source: Joint Commission International)
Saturday, October 24, 2009
Medicare Savings: Is the Answer in Mexico?
The words Medicare savings are a red flag to some and a carrot to others; depending on where you stand on the issue of health-care reform, the label is code for cuts or a promise to root out fraud and save billions. But far away from the debates in Washington, a group of expatriate baby boomers point to one place they believe real Medicare savings could be realized: Mexico.
Police Reform Part of Mexico’s Drug War
Calls to Shut U.S.-Mexico Border Grow in Flu Scare
On Obama’s Mexico Agenda: Stopping the Guns from El Norte
Paul Crist, the owner of a Puerto Vallarta resort who once worked as an aide to former U.S. Senator Paul Sarbanes, says that paying for medical treatment in Mexico could save Medicare almost a quarter of the average cost for most procedures. "My research, as well as the research of others, shows that health care in Mexico costs less than a third of that in the U.S.," Crist says.
(See a guide to what health-care reform really means.)
A doctor's office visit or house call (still a common practice in Mexico) costs only $25 to $40, according to a 2007 study by the University of Texas LBJ School of Public Affairs. The same study presented information on comparative costs for common procedures: a hip replacement costs between $43,000 and $63,000 in the U.S., compared to $12,000 in Mexico, according to Texas-based hospital chain Christus Muguerza, which also operates in Mexico; a coronary bypass in Mexico costs an average of $21,000 compared to $149,000 in the U.S. Citing statistics from the U.S. census and State Department, Crist estimates approximately 200,000 of the 1 million U.S. citizens living south of the border are Medicare-eligible.
(See what health care is like around the world.)
However, Crist says many Medicare-eligible expats living south of the border are forced to fly back to the U.S. for medical treatment because Medicare will not pay for most coverage outside the U.S., even though they have paid into the system during their working lives. Medicare will cover only emergency care if it occurs within 60 days of leaving the country. To utilize their benefits, Medicare-eligible American citizens in Mexico have to opt for periodic flights home or else choose to pay out-of-pocket medical expenses. And because expatriates have diverse geographic origins in the U.S., there are no specific congressional districts they can pressure to legislate change in the Medicare rules on their behalf.
Crist took matters into his own hands. Touting the potential savings to Medicare, he founded Americans for Medicare in Mexico and began campaigning for reform. He travelled to Washington earlier this year to lobby Congress for expansion of Medicare to expats in Mexico. He visited about 85 congressional offices and says many members were open to the idea. Other expat groups like the Association of American Residents Overseas (AARO) joined in a letter-writing campaign. But as the health-care-reform battle grew larger and the bills more complex, Crist says supportive members of Congress told him 2009 was not going to be the year the change could be made.
Resistance to the expansion of Medicare to Mexico is coming from some health-care industry groups like the American Medical Association and the American Hospital Association, according to David C. Warner, who teaches public affairs at the University of Texas LBJ School. Warner says these groups see it as the beginning of a slippery slope that will lead to expansion of Medicare coverage to places like China and Eastern Europe where health-care costs are rock bottom.
(See a video of Ze Frank explaining health-care reform.)
Warner adds that the issue also has been raised at the highest levels by Mexican President Felipe Calderón in a meeting earlier this year with President Barack Obama. But any pressure from Mexican interests could be politically tricky, Crist says: "It would not necessarily be helpful to have Mexican firms pressuring Congress on an issue that will benefit this industry and the Mexican economy generally. This could create a backlash among some [U.S.] political groups."
However, there are several forces set to join the battle that could change the power balance. Not only are more expats finding Mexico's climate and low costs welcoming, but investors are flocking to Mexico as a growth market for health care and senior living. "Many in the baby-boomer generation have seen their retirement savings disappear and it is not likely those funds will be built back up quickly," Crist says, explaining why Mexico, with its low costs, has become attractive. Seeing potential profits, he adds, "the developers and operators of senior housing, which runs the spectrum from independent-living communities through nursing-care facilities, are certainly betting on a substantial influx in the coming years." Developments aimed at attracting seniors have been built near Puerto Vallarta and in the northern Baja peninsula, and independent-living projects are planned for San Miguel de Allende, already a popular expat center north of Mexico City, Warner notes.
(See the top 10 health-care-reform players.)
"Some of the developers in Mexico are affiliated with firms in the U.S., so there will certainly be support in Washington from those firms," Crist says. "Both the senior-housing industry and the health-care industry are internationalizing, and the U.S. players in these industries will be big winners. They have the capital, and the experience to dominate this industry in Mexico and elsewhere, because the senior-housing industry, in particular, is so new in many countries."
Crist plans to hold town-hall meetings in 15 Mexican cities beginning January to pull the expat community together and launch a massive letter-writing campaign. He and other proponents are also hoping to engage another key group in the fight, the so-called returnees — Mexican dual citizens, or Mexican-born citizens with legal status in the U.S. who are Medicare-eligible after a lifetime of payroll contributions. In the U.S., proponents will focus on gaining the support of a key member of Congress to carry the banner. Warner says two from Texas are likely targets: Democratic U.S. Representative Eddie Bernice Johnson and Republican U.S. Representative Pete Sessions, whose districts include concentrated returnee populations, multigenerational families with roots in the state of Guanajuato, Mexico, the cradle of Mexican independence and a favorite spot for expat retirees.
"The opportunity to provide services to Americans at much lower cost outside the U.S. border is enormous," Crist says. "This is pushing even private insurers to explore coverage options outside of the U.S., and Medicare will certainly be a part of this globalization, sooner or later. My preference is for sooner."
By Hilary Hylton
Police Reform Part of Mexico’s Drug War
Calls to Shut U.S.-Mexico Border Grow in Flu Scare
On Obama’s Mexico Agenda: Stopping the Guns from El Norte
Paul Crist, the owner of a Puerto Vallarta resort who once worked as an aide to former U.S. Senator Paul Sarbanes, says that paying for medical treatment in Mexico could save Medicare almost a quarter of the average cost for most procedures. "My research, as well as the research of others, shows that health care in Mexico costs less than a third of that in the U.S.," Crist says.
(See a guide to what health-care reform really means.)
A doctor's office visit or house call (still a common practice in Mexico) costs only $25 to $40, according to a 2007 study by the University of Texas LBJ School of Public Affairs. The same study presented information on comparative costs for common procedures: a hip replacement costs between $43,000 and $63,000 in the U.S., compared to $12,000 in Mexico, according to Texas-based hospital chain Christus Muguerza, which also operates in Mexico; a coronary bypass in Mexico costs an average of $21,000 compared to $149,000 in the U.S. Citing statistics from the U.S. census and State Department, Crist estimates approximately 200,000 of the 1 million U.S. citizens living south of the border are Medicare-eligible.
(See what health care is like around the world.)
However, Crist says many Medicare-eligible expats living south of the border are forced to fly back to the U.S. for medical treatment because Medicare will not pay for most coverage outside the U.S., even though they have paid into the system during their working lives. Medicare will cover only emergency care if it occurs within 60 days of leaving the country. To utilize their benefits, Medicare-eligible American citizens in Mexico have to opt for periodic flights home or else choose to pay out-of-pocket medical expenses. And because expatriates have diverse geographic origins in the U.S., there are no specific congressional districts they can pressure to legislate change in the Medicare rules on their behalf.
Crist took matters into his own hands. Touting the potential savings to Medicare, he founded Americans for Medicare in Mexico and began campaigning for reform. He travelled to Washington earlier this year to lobby Congress for expansion of Medicare to expats in Mexico. He visited about 85 congressional offices and says many members were open to the idea. Other expat groups like the Association of American Residents Overseas (AARO) joined in a letter-writing campaign. But as the health-care-reform battle grew larger and the bills more complex, Crist says supportive members of Congress told him 2009 was not going to be the year the change could be made.
Resistance to the expansion of Medicare to Mexico is coming from some health-care industry groups like the American Medical Association and the American Hospital Association, according to David C. Warner, who teaches public affairs at the University of Texas LBJ School. Warner says these groups see it as the beginning of a slippery slope that will lead to expansion of Medicare coverage to places like China and Eastern Europe where health-care costs are rock bottom.
(See a video of Ze Frank explaining health-care reform.)
Warner adds that the issue also has been raised at the highest levels by Mexican President Felipe Calderón in a meeting earlier this year with President Barack Obama. But any pressure from Mexican interests could be politically tricky, Crist says: "It would not necessarily be helpful to have Mexican firms pressuring Congress on an issue that will benefit this industry and the Mexican economy generally. This could create a backlash among some [U.S.] political groups."
However, there are several forces set to join the battle that could change the power balance. Not only are more expats finding Mexico's climate and low costs welcoming, but investors are flocking to Mexico as a growth market for health care and senior living. "Many in the baby-boomer generation have seen their retirement savings disappear and it is not likely those funds will be built back up quickly," Crist says, explaining why Mexico, with its low costs, has become attractive. Seeing potential profits, he adds, "the developers and operators of senior housing, which runs the spectrum from independent-living communities through nursing-care facilities, are certainly betting on a substantial influx in the coming years." Developments aimed at attracting seniors have been built near Puerto Vallarta and in the northern Baja peninsula, and independent-living projects are planned for San Miguel de Allende, already a popular expat center north of Mexico City, Warner notes.
(See the top 10 health-care-reform players.)
"Some of the developers in Mexico are affiliated with firms in the U.S., so there will certainly be support in Washington from those firms," Crist says. "Both the senior-housing industry and the health-care industry are internationalizing, and the U.S. players in these industries will be big winners. They have the capital, and the experience to dominate this industry in Mexico and elsewhere, because the senior-housing industry, in particular, is so new in many countries."
Crist plans to hold town-hall meetings in 15 Mexican cities beginning January to pull the expat community together and launch a massive letter-writing campaign. He and other proponents are also hoping to engage another key group in the fight, the so-called returnees — Mexican dual citizens, or Mexican-born citizens with legal status in the U.S. who are Medicare-eligible after a lifetime of payroll contributions. In the U.S., proponents will focus on gaining the support of a key member of Congress to carry the banner. Warner says two from Texas are likely targets: Democratic U.S. Representative Eddie Bernice Johnson and Republican U.S. Representative Pete Sessions, whose districts include concentrated returnee populations, multigenerational families with roots in the state of Guanajuato, Mexico, the cradle of Mexican independence and a favorite spot for expat retirees.
"The opportunity to provide services to Americans at much lower cost outside the U.S. border is enormous," Crist says. "This is pushing even private insurers to explore coverage options outside of the U.S., and Medicare will certainly be a part of this globalization, sooner or later. My preference is for sooner."
By Hilary Hylton
Monday, October 12, 2009
Attention Canadians: The Time is Now and The Place is Mexico!
By: Jim Scherrer
For more than 50 years, the de facto world currency has been the US dollar with many of the world currencies being pegged against it (some countries have even eliminated their own currencies in favor of the US dollar). As an example, Canadians feel a sense of wealth when the Canadian dollar is on par with the US dollar; the opposite when the Canadian dollar devalues to .70 US dollar, i.e., when the Canadian dollar will purchase only 70 cents worth of US goods and services. The following graph shows how the Canadian dollar has strengthened from $.77 US to $.96 US or by 25% during just the past seven months.
Currently, the global economy is changing and as the US dollar continues to erode, many foreign currencies have strengthened significantly relative to the green back. Consequently, savvy Canadians should now be looking at currencies outside of the US and evaluating their own newfound purchasing power in those foreign countries. For instance, the Canadian dollar has virtually exploded in value recently relative to the Mexican peso. The graph below depicts how the Canadian dollar has risen in value from an equivalent of 7.1 Mexican pesos in 2003 to 12.6 pesos today in 2009.
Now, let's compare this increase in the purchasing power of the Canadian dollar to the increase in purchasing power of the US dollar, both relative to the Mexican peso. The graph below clearly shows that during this 6 ½ year time frame the US dollar increased in value by a bit more than 20% relative to the Mexican peso whereas the Canadian dollar increased by a whopping 75%!
It's quite understandable, that toward the end of 2007 when the Canadian dollar reached par with the US dollar, the Canadians were major buyers of real estate in Mexico. However, by March of 2009, the Canadian dollar had slipped to a low of $.77 US and Canadian buyers were virtually eliminated from the Mexican real estate market.
Next, let's closely review the Canadian and US dollars relative to the Mexican peso during the past year. Because the recent strengthening of the Canadian dollar has far outpaced the US dollar relative to the Mexican peso, you'll see that during the past year, the US dollar has barely appreciated in value over the Mexican peso while the Canadian dollar has exploded in value by nearly 25%. (please see graph) The ramifications that this phenomenon has had on the Canadian purchasing power in Mexico are addressed below.
During the past decade many tourist zones and retirement havens in the resort areas of Mexico experienced exponential growth. Along with this growth came significant real estate price appreciation; so much so that real estate prices in many Mexican resort cities were no longer within reach of many Canadian retirees, especially when the Canadian dollar plummeted in value in 2008. Well, we have good news for you fortunate Canadians holding those wonderfully strong Loonies; that's no longer the case!
In Puerto Vallarta, real estate prices of recently built condos have dropped by anywhere from 20-35% during the past year alone. This reduction in value was caused mainly by the global recession, however the swine flu scare and the media hype over the border town drug war (1,200 miles away!) were also contributing factors. With the tremendous glut of unsold new condos recently introduced to the market by developers combined with the many condos that were purchased at pre-construction prices by speculators now just trying to recover their investment, PV is a true buyer's market.
Last year you could buy a $400,000 condo with all the amenities and breathtaking views for 10% off list price or for $360,000. Today, you'll have no problem finding that same condo offered at $300,000. Okay, that seems like a pretty nice savings of nearly 17% but remember, these Mexican condos are all priced in US dollars; Canadians must now evaluate these costs in terms of Canadian dollars! A year ago when the Canadian dollar was worth $.77 US, $360,000 US dollars was equivalent to $468,000 Canadian dollars. Today, with the same condo selling for $300,000 and the Canadian dollar worth $.96 US, it will cost only $315,000 Canadian dollars. That's a savings of $153,000 Canadian or 32.7% (as opposed to the apparent 17%) in just one year!
Until as recently as 4 years ago there were no mortgages available to any North Americans buying resort property in Mexico. At that time, a number of US based mortgage companies introduced mortgages to US citizens buying property in Mexico but not to Canadians. That all changed a couple of years ago when the major mortgage companies finally made the same mortgages available to Canadians. These fixed and variable rate mortgages require at least 20% down and can have terms for as long as 30 years at rates generally about two points above those in the States or at approximately 7% at this time.
It is the opinion of many that the Canadian dollar will continue to strengthen. After all, the Canadian banks didn't make all the foolish sub-prime no-doc loans that were made in the US, the Canadian unemployment rate is somewhat less than in the US, and Canada is rich with natural resources with worldwide demand. Knowing this, it seems only logical that having a mortgage in Mexico based on US dollars would be a very wise investment; it would be paid off with ever strengthening Canadian dollars.
Let's assume we bought that condo for $300,000 US ($315,000 Canadian) and made a down payment of $100,000 US ($105,000 Canadian). A 30 year fixed rate 8% mortgage of $200,000US would result in payments of $1,467/month US ($1,528 Canadian). Of course, if and when the Canadian dollar again reaches par with the US dollar, your payments will be reduced from $1,528 to $1,467 Canadian. Now, let's get a little aggressive and assume the Canadian dollar will reach $1.05US. At that exchange rate, your monthly mortgage payments would drop to $1,397 Canadian. It's not too far a stretch to predict an annual savings of $2,000 Canadian or more based solely on the exchange rate differential. Of course, if the Canadian dollar were to plummet for some unforeseeable reason, these mortgages can be paid off after 2-5 years (depending upon the loan) with no pre-payment penalty.
Finally, let's evaluate the cost of living in Mexico. For starters, let's assume that a year ago we were considering a lifestyle in Vallarta based on a budget of $10,000 pesos per month. With the annual inflation rate in Mexico of 5%, the same goods and services in Mexico will be $10,500 pesos this year. A little more than a year ago, when the Canadian dollar would purchase 9.5 pesos, $10,000 pesos was equivalent to $1,052 Canadian. Today, with the favorable exchange rate of 12.7 pesos per Canadian dollar, the $10,500 peso budget will cost a mere $827 Canadian, i.e., a savings of $225/mo or a 22% reduction in the cost of living in just one year!
In summarizing, it's obvious that the time has never been better for Canadians to explore the opportunities that exist in Mexico today. International monetary circumstances are ideal for Canadians concurrently with the condo supply and demand equation in Mexico heavily tilted in favor of the buyer. In terms of Canadian dollars, you can expect to find incredible condos at 30-35% lower prices than just a year ago and your cost of living will be 20-25% less than it was a year ago.
Of the nearly 50,000 expats living in Vallarta, we estimate that close to 30% of them are Canadians. Needless to say, the winter weather in Puerto Vallarta is more conducive to most outdoor activities (excluding snow boarding and ice hockey!) than anywhere in Canada. So, why hesitate? Come on down this winter and have some fun in the sun with your fellow countrymen and while doing so, save a significant portion of your nest egg on your retirement residence in Paradise. It's now certainly well within your financial reach and as they say, "if you snooze, you lose"; you'll never find a better time or place to invest those Loonies than now in Mexico!
Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of nearly 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.
For more than 50 years, the de facto world currency has been the US dollar with many of the world currencies being pegged against it (some countries have even eliminated their own currencies in favor of the US dollar). As an example, Canadians feel a sense of wealth when the Canadian dollar is on par with the US dollar; the opposite when the Canadian dollar devalues to .70 US dollar, i.e., when the Canadian dollar will purchase only 70 cents worth of US goods and services. The following graph shows how the Canadian dollar has strengthened from $.77 US to $.96 US or by 25% during just the past seven months.
Currently, the global economy is changing and as the US dollar continues to erode, many foreign currencies have strengthened significantly relative to the green back. Consequently, savvy Canadians should now be looking at currencies outside of the US and evaluating their own newfound purchasing power in those foreign countries. For instance, the Canadian dollar has virtually exploded in value recently relative to the Mexican peso. The graph below depicts how the Canadian dollar has risen in value from an equivalent of 7.1 Mexican pesos in 2003 to 12.6 pesos today in 2009.
Now, let's compare this increase in the purchasing power of the Canadian dollar to the increase in purchasing power of the US dollar, both relative to the Mexican peso. The graph below clearly shows that during this 6 ½ year time frame the US dollar increased in value by a bit more than 20% relative to the Mexican peso whereas the Canadian dollar increased by a whopping 75%!
It's quite understandable, that toward the end of 2007 when the Canadian dollar reached par with the US dollar, the Canadians were major buyers of real estate in Mexico. However, by March of 2009, the Canadian dollar had slipped to a low of $.77 US and Canadian buyers were virtually eliminated from the Mexican real estate market.
Next, let's closely review the Canadian and US dollars relative to the Mexican peso during the past year. Because the recent strengthening of the Canadian dollar has far outpaced the US dollar relative to the Mexican peso, you'll see that during the past year, the US dollar has barely appreciated in value over the Mexican peso while the Canadian dollar has exploded in value by nearly 25%. (please see graph) The ramifications that this phenomenon has had on the Canadian purchasing power in Mexico are addressed below.
During the past decade many tourist zones and retirement havens in the resort areas of Mexico experienced exponential growth. Along with this growth came significant real estate price appreciation; so much so that real estate prices in many Mexican resort cities were no longer within reach of many Canadian retirees, especially when the Canadian dollar plummeted in value in 2008. Well, we have good news for you fortunate Canadians holding those wonderfully strong Loonies; that's no longer the case!
In Puerto Vallarta, real estate prices of recently built condos have dropped by anywhere from 20-35% during the past year alone. This reduction in value was caused mainly by the global recession, however the swine flu scare and the media hype over the border town drug war (1,200 miles away!) were also contributing factors. With the tremendous glut of unsold new condos recently introduced to the market by developers combined with the many condos that were purchased at pre-construction prices by speculators now just trying to recover their investment, PV is a true buyer's market.
Last year you could buy a $400,000 condo with all the amenities and breathtaking views for 10% off list price or for $360,000. Today, you'll have no problem finding that same condo offered at $300,000. Okay, that seems like a pretty nice savings of nearly 17% but remember, these Mexican condos are all priced in US dollars; Canadians must now evaluate these costs in terms of Canadian dollars! A year ago when the Canadian dollar was worth $.77 US, $360,000 US dollars was equivalent to $468,000 Canadian dollars. Today, with the same condo selling for $300,000 and the Canadian dollar worth $.96 US, it will cost only $315,000 Canadian dollars. That's a savings of $153,000 Canadian or 32.7% (as opposed to the apparent 17%) in just one year!
Until as recently as 4 years ago there were no mortgages available to any North Americans buying resort property in Mexico. At that time, a number of US based mortgage companies introduced mortgages to US citizens buying property in Mexico but not to Canadians. That all changed a couple of years ago when the major mortgage companies finally made the same mortgages available to Canadians. These fixed and variable rate mortgages require at least 20% down and can have terms for as long as 30 years at rates generally about two points above those in the States or at approximately 7% at this time.
It is the opinion of many that the Canadian dollar will continue to strengthen. After all, the Canadian banks didn't make all the foolish sub-prime no-doc loans that were made in the US, the Canadian unemployment rate is somewhat less than in the US, and Canada is rich with natural resources with worldwide demand. Knowing this, it seems only logical that having a mortgage in Mexico based on US dollars would be a very wise investment; it would be paid off with ever strengthening Canadian dollars.
Let's assume we bought that condo for $300,000 US ($315,000 Canadian) and made a down payment of $100,000 US ($105,000 Canadian). A 30 year fixed rate 8% mortgage of $200,000US would result in payments of $1,467/month US ($1,528 Canadian). Of course, if and when the Canadian dollar again reaches par with the US dollar, your payments will be reduced from $1,528 to $1,467 Canadian. Now, let's get a little aggressive and assume the Canadian dollar will reach $1.05US. At that exchange rate, your monthly mortgage payments would drop to $1,397 Canadian. It's not too far a stretch to predict an annual savings of $2,000 Canadian or more based solely on the exchange rate differential. Of course, if the Canadian dollar were to plummet for some unforeseeable reason, these mortgages can be paid off after 2-5 years (depending upon the loan) with no pre-payment penalty.
Finally, let's evaluate the cost of living in Mexico. For starters, let's assume that a year ago we were considering a lifestyle in Vallarta based on a budget of $10,000 pesos per month. With the annual inflation rate in Mexico of 5%, the same goods and services in Mexico will be $10,500 pesos this year. A little more than a year ago, when the Canadian dollar would purchase 9.5 pesos, $10,000 pesos was equivalent to $1,052 Canadian. Today, with the favorable exchange rate of 12.7 pesos per Canadian dollar, the $10,500 peso budget will cost a mere $827 Canadian, i.e., a savings of $225/mo or a 22% reduction in the cost of living in just one year!
In summarizing, it's obvious that the time has never been better for Canadians to explore the opportunities that exist in Mexico today. International monetary circumstances are ideal for Canadians concurrently with the condo supply and demand equation in Mexico heavily tilted in favor of the buyer. In terms of Canadian dollars, you can expect to find incredible condos at 30-35% lower prices than just a year ago and your cost of living will be 20-25% less than it was a year ago.
Of the nearly 50,000 expats living in Vallarta, we estimate that close to 30% of them are Canadians. Needless to say, the winter weather in Puerto Vallarta is more conducive to most outdoor activities (excluding snow boarding and ice hockey!) than anywhere in Canada. So, why hesitate? Come on down this winter and have some fun in the sun with your fellow countrymen and while doing so, save a significant portion of your nest egg on your retirement residence in Paradise. It's now certainly well within your financial reach and as they say, "if you snooze, you lose"; you'll never find a better time or place to invest those Loonies than now in Mexico!
Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of nearly 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.
Tuesday, September 29, 2009
Wednesday, September 23, 2009
MEXICO: Hopes for Medicare coverage in Mexico
Medicare is a key area within US health reform. Medicare does not pay for treatment overseas. Medicare has very strict guidelines on what hospitals it uses and how it pays them, so any country hoping for a Medicare paid medical tourism boom is going to be disappointed.
Of the 800,000 American citizens living in Mexico, 200,000 are over 60 years old and at or near eligibility for Medicare benefits. Last year, Paul Crist founded Americans for Medicare for Mexico (AMMAC), a non-profit organization dedicated to bringing Medicare coverage to seniors living in Mexico. Crist has lobbied 85 members of the U.S. Congress and prepared a 34-page proposal in which he outlines the pros of extending Medicare to Mexico, “Medicare is now spending $6700 per year per beneficiary in the United States. For the same care in Mexico, my estimate is that it will spend only $3400 dollars, which translates to a very substantial saving.” His argument is that if Medicare is extended to Mexico, the programme would only work with hospitals approved by JCI.This is one reason why there are now 10 JCI hospitals in Mexico, over 20 in the pipeline, and most new ones are built to JCI standards. Crist argues that if Medicare is accepted in Mexico, the 64 percent of American retirees currently flying back to the United States for expensive care would opt for treatment nearer their homes, cutting Medicare overall costs by a minimum of 22 percent.
Although the health sector is regulated and certified by the Mexican General Health Commission, the task of getting JCI certification for private hospitals is of prime importance. One of the main reasons for pushing for certification is that the North American Free Trade Agreement obligates the Mexican medical system to be on a par with the United States and Canada, allowing for the free flow of patients from border to border and for fair trade. The logic is that as long as hospitals are prepared to accept the delays and detail of the Medicare system, it makes sense for Medicare to accept JCI hospitals in Mexico. Crist argues that Mexican hospital standards are similar so Medicare should accept all hospitals. That argument falls on the basis that if the standards are similar, why are Mexican hospitals keen to spend substantial sums of money in getting JCI accreditation?
Whether Mexican heath care meets Medicare’s quality standards and payment system is debatable. The US government is concerned that creating a Mexican medical exemption might be too complicated and costly to implement and would open the door for Americans in other countries.
The approval of Medicare would greatly benefit hospitals such as Christus Muguerza, a Texas chain that now has seven hospitals under construction across Mexico. Even without a Medicare deal, most Americans seeking overseas treatment seem much happier travelling the short distance to Mexico than hopping on a plane to Asia .It is easy to forget that in the US, Hispanics are now the largest racial group.
Medical tourism news22 September 2009
Of the 800,000 American citizens living in Mexico, 200,000 are over 60 years old and at or near eligibility for Medicare benefits. Last year, Paul Crist founded Americans for Medicare for Mexico (AMMAC), a non-profit organization dedicated to bringing Medicare coverage to seniors living in Mexico. Crist has lobbied 85 members of the U.S. Congress and prepared a 34-page proposal in which he outlines the pros of extending Medicare to Mexico, “Medicare is now spending $6700 per year per beneficiary in the United States. For the same care in Mexico, my estimate is that it will spend only $3400 dollars, which translates to a very substantial saving.” His argument is that if Medicare is extended to Mexico, the programme would only work with hospitals approved by JCI.This is one reason why there are now 10 JCI hospitals in Mexico, over 20 in the pipeline, and most new ones are built to JCI standards. Crist argues that if Medicare is accepted in Mexico, the 64 percent of American retirees currently flying back to the United States for expensive care would opt for treatment nearer their homes, cutting Medicare overall costs by a minimum of 22 percent.
Although the health sector is regulated and certified by the Mexican General Health Commission, the task of getting JCI certification for private hospitals is of prime importance. One of the main reasons for pushing for certification is that the North American Free Trade Agreement obligates the Mexican medical system to be on a par with the United States and Canada, allowing for the free flow of patients from border to border and for fair trade. The logic is that as long as hospitals are prepared to accept the delays and detail of the Medicare system, it makes sense for Medicare to accept JCI hospitals in Mexico. Crist argues that Mexican hospital standards are similar so Medicare should accept all hospitals. That argument falls on the basis that if the standards are similar, why are Mexican hospitals keen to spend substantial sums of money in getting JCI accreditation?
Whether Mexican heath care meets Medicare’s quality standards and payment system is debatable. The US government is concerned that creating a Mexican medical exemption might be too complicated and costly to implement and would open the door for Americans in other countries.
The approval of Medicare would greatly benefit hospitals such as Christus Muguerza, a Texas chain that now has seven hospitals under construction across Mexico. Even without a Medicare deal, most Americans seeking overseas treatment seem much happier travelling the short distance to Mexico than hopping on a plane to Asia .It is easy to forget that in the US, Hispanics are now the largest racial group.
Medical tourism news22 September 2009
Saturday, September 19, 2009
Mexican Corporations- An Option for Holding Mexico Real Estate
Mexican Corporations- An Option for Holding Mexico Real Estate
The Sociedad Anonima de Capital Variable, translated literally is an anonymous society of variable capital. This is equivalent to the U.S. corporation in which there are stockholders. In Mexico it is governed by the Law of Mercantile Societies. More and more, foreigners are forming Mexican mercantile corporations which end with the initials, “S.A. de C.V.”, to do business, to achieve their financial goals and to purchase Real Estate in Mexico. The SA de CV is similar to the “Inc.” of the United States and Canada.
Another version of a corporate entity is the Limited Liability Company which has become more common in recent years. The Mexican counterpart is the SRL de CV, the Limited Responsibility company with variable capital. While there are differences between the S. A. de C. V. and the S.R.L. de C.V., for our purposes here, both are included under the term “corporation” in this article.
As of December1993, the corporation formed in Mexico is considered as “Mexican” even though all shareholders may be foreign persons.
When should a corporation be formed? It will make sense if the shareholders wish to perform services or sell goods for profit, build a hotel, or if they wish to develop a property for resale in lots or condominiums. These are all common options seen in my region, the La Paz real estate market. The corporate entity permits the principals to obtain working papers and to obtain working papers for other foreigners who provide services not easily obtained in the local job market. Care must be taken, however to set up the financial reporting system, to obtain invoices for all pre-operating expenses and to have an accountant who is knowledgeable to make the required declarations in Hacienda, Mexico’s version of Uncle Sam or Revenue Canada.
The minimum capital investment in a Mexican corporation is $50,000.00 Mexican pesos. Evidence of this capital contribution must be in cash or in assets which equal the total amount of the start up capital. It is important to make the declaration of all assets which are to be included from the start up of the corporation. Do not select the minimum amount just because it is the minimum. If you do it may later be difficult to establish the true amount of initial capital invested. Once the initial capital is established, additional investment may be added by making a declaration before a Notary Public, without requesting permission to do so from the government. This is the Variable Capital portion of the equation.
A minimum of two shareholders is required to form a corporation. These shareholders will be required to sign the corporate charter before a Mexican Notary Public. If they come into Mexico as tourists to sign the documents they should obtain an FM-3 or FMN document at their local Mexican Consulate prior to coming so they may perform a business activity (signing the document) in a legal manner. Once the corporation has been formed it is necessary to obtain a federal tax registration number for the corporation and the administrator or board of directors must obtain the FM-3 permit to work in the activities of the corporation.
If the corporation includes or is composed of foreign stockholders it will include a clause in which the foreigners promise to be considered as Mexicans in the eyes of the law and not to invoke the aid of their government in the event of a dispute.
Administration of matters of the corporation may be either through a sole administrator (administrador unico) or through a board of directors. A Comisario must be appointed. This is the person responsible for the accounts and tax payments and should be a Mexican accountant. The comisario does not need to be a shareholder. The duties of the administrators, whether sole administrator or board of directors need to be clearly defined. Will they be able to enter into lawsuits? Obligate the corporation for loans? Hire and fire personnel?
Generally it is wise to provide a list of five names, in order of preference, for the corporation for submission for the permit for incorporation. The first name which has not been used previously by another company will be designated. Upon confirmation of the name, the corporate documents must be prepared and signed before a Notary Public within ninety days or the authorized name will become invalid and the process must be begun again. Together with the name request, permission to incorporate, where foreigners are involved, must be obtained from SECOFI, the Secretary of Industry and Commerce.
Upon completion of the corporate document, it must be recorded in the local registry of Business and Commerce, the National Foreign Investment Registry and the business enrolled in the local Chamber of Commerce or Industry Chamber. Monthly declarations must be filed with tax authorities. Additionally, the corporate account must file an annual statement with the National Foreign Investment Registry regarding the business activity for the previous year. If the corporation is used for property development or is not active, the Mexican accountant will probably charge about $600 Dlls. per year to do the required filings. If the corporation is active the accounting charge may be $300. to $500 Dlls. per month, or more.
Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546
The Sociedad Anonima de Capital Variable, translated literally is an anonymous society of variable capital. This is equivalent to the U.S. corporation in which there are stockholders. In Mexico it is governed by the Law of Mercantile Societies. More and more, foreigners are forming Mexican mercantile corporations which end with the initials, “S.A. de C.V.”, to do business, to achieve their financial goals and to purchase Real Estate in Mexico. The SA de CV is similar to the “Inc.” of the United States and Canada.
Another version of a corporate entity is the Limited Liability Company which has become more common in recent years. The Mexican counterpart is the SRL de CV, the Limited Responsibility company with variable capital. While there are differences between the S. A. de C. V. and the S.R.L. de C.V., for our purposes here, both are included under the term “corporation” in this article.
As of December1993, the corporation formed in Mexico is considered as “Mexican” even though all shareholders may be foreign persons.
When should a corporation be formed? It will make sense if the shareholders wish to perform services or sell goods for profit, build a hotel, or if they wish to develop a property for resale in lots or condominiums. These are all common options seen in my region, the La Paz real estate market. The corporate entity permits the principals to obtain working papers and to obtain working papers for other foreigners who provide services not easily obtained in the local job market. Care must be taken, however to set up the financial reporting system, to obtain invoices for all pre-operating expenses and to have an accountant who is knowledgeable to make the required declarations in Hacienda, Mexico’s version of Uncle Sam or Revenue Canada.
The minimum capital investment in a Mexican corporation is $50,000.00 Mexican pesos. Evidence of this capital contribution must be in cash or in assets which equal the total amount of the start up capital. It is important to make the declaration of all assets which are to be included from the start up of the corporation. Do not select the minimum amount just because it is the minimum. If you do it may later be difficult to establish the true amount of initial capital invested. Once the initial capital is established, additional investment may be added by making a declaration before a Notary Public, without requesting permission to do so from the government. This is the Variable Capital portion of the equation.
A minimum of two shareholders is required to form a corporation. These shareholders will be required to sign the corporate charter before a Mexican Notary Public. If they come into Mexico as tourists to sign the documents they should obtain an FM-3 or FMN document at their local Mexican Consulate prior to coming so they may perform a business activity (signing the document) in a legal manner. Once the corporation has been formed it is necessary to obtain a federal tax registration number for the corporation and the administrator or board of directors must obtain the FM-3 permit to work in the activities of the corporation.
If the corporation includes or is composed of foreign stockholders it will include a clause in which the foreigners promise to be considered as Mexicans in the eyes of the law and not to invoke the aid of their government in the event of a dispute.
Administration of matters of the corporation may be either through a sole administrator (administrador unico) or through a board of directors. A Comisario must be appointed. This is the person responsible for the accounts and tax payments and should be a Mexican accountant. The comisario does not need to be a shareholder. The duties of the administrators, whether sole administrator or board of directors need to be clearly defined. Will they be able to enter into lawsuits? Obligate the corporation for loans? Hire and fire personnel?
Generally it is wise to provide a list of five names, in order of preference, for the corporation for submission for the permit for incorporation. The first name which has not been used previously by another company will be designated. Upon confirmation of the name, the corporate documents must be prepared and signed before a Notary Public within ninety days or the authorized name will become invalid and the process must be begun again. Together with the name request, permission to incorporate, where foreigners are involved, must be obtained from SECOFI, the Secretary of Industry and Commerce.
Upon completion of the corporate document, it must be recorded in the local registry of Business and Commerce, the National Foreign Investment Registry and the business enrolled in the local Chamber of Commerce or Industry Chamber. Monthly declarations must be filed with tax authorities. Additionally, the corporate account must file an annual statement with the National Foreign Investment Registry regarding the business activity for the previous year. If the corporation is used for property development or is not active, the Mexican accountant will probably charge about $600 Dlls. per year to do the required filings. If the corporation is active the accounting charge may be $300. to $500 Dlls. per month, or more.
Author Linda Neil has over 35 years of hands on experience in all aspects of Mexican real estate. She holds membership in AMPI, NAR, and FIABCI and PROFECO Certificate 00063/96. Current member of the national advisory board of AMPI she is the owner broker of LINDA NEIL PROPERTIES for more information (512)-879-6546
Tuesday, September 15, 2009
Mexico Investment: The New Vogue
What with flu bugs and sensationalized press headlines about the drug war along the U.S. border, Mexico was in danger of slipping out of investment fashion.
But as we move out of the summer season and start looking at what’s new for this fall, it’s clear that Mexico investment is becoming the new vogue.
The beginning of August saw the press full of reports about big international companies making equally big investments in Mexico and others strengthening their business commitments.
Banks and financial service providers, such as Fitch and Morgan Stanley, have also given their thumbs up for a wide range of Mexico investment opportunities.
For the savvy emerging market investor, none of this should be such a surprise.
The global economy is showing signs of improvement, so this is exactly when you’d expect to see foreign cash starting to look for investment opportunities with higher returns.
So when wise market players, JP Morgan, decided to rate Mexico as their top pick for Latin American equities last month, eyes started to train themselves south of the border, seeking out the autumn season’s stylish new offering in Mexico investment.
Others that like what they see on the Mexico investment catwalk include Coca-Cola — who announced a $5 billion investment in Mexico over the next 5 years — and Spanish banking giant, Santander, who has invested $190 million in a new customer contact and service center in Queretaro, Mexico.
Other fashion-junkies joining the trend include General Motors — completing a Mexico investment of more than $1 million in a new customer service center — and British bank, HSBC — raising its recommendation for Mexican shares to “increase portfolio”.
The modish trend looks set to continue and expect more big names to jump into Mexico investment opportunities as the fall season moves into winter. Whether investing in Mexico businesses or real estate , this may be one hip new emerging market show that you don’t want to miss.
Article by Investment Properties Mexico, experts in Mexico investment.
http://www.investmentpropertiesmexico.com/
But as we move out of the summer season and start looking at what’s new for this fall, it’s clear that Mexico investment is becoming the new vogue.
The beginning of August saw the press full of reports about big international companies making equally big investments in Mexico and others strengthening their business commitments.
Banks and financial service providers, such as Fitch and Morgan Stanley, have also given their thumbs up for a wide range of Mexico investment opportunities.
For the savvy emerging market investor, none of this should be such a surprise.
The global economy is showing signs of improvement, so this is exactly when you’d expect to see foreign cash starting to look for investment opportunities with higher returns.
So when wise market players, JP Morgan, decided to rate Mexico as their top pick for Latin American equities last month, eyes started to train themselves south of the border, seeking out the autumn season’s stylish new offering in Mexico investment.
Others that like what they see on the Mexico investment catwalk include Coca-Cola — who announced a $5 billion investment in Mexico over the next 5 years — and Spanish banking giant, Santander, who has invested $190 million in a new customer contact and service center in Queretaro, Mexico.
Other fashion-junkies joining the trend include General Motors — completing a Mexico investment of more than $1 million in a new customer service center — and British bank, HSBC — raising its recommendation for Mexican shares to “increase portfolio”.
The modish trend looks set to continue and expect more big names to jump into Mexico investment opportunities as the fall season moves into winter. Whether investing in Mexico businesses or real estate , this may be one hip new emerging market show that you don’t want to miss.
Article by Investment Properties Mexico, experts in Mexico investment.
http://www.investmentpropertiesmexico.com/
Friday, September 11, 2009
BoomersAbroad.com Launches New online Mortgage Center for Mexico
BoomersAbroad.com, Online Community & Social Network was born in direct response to hundreds of conversations with retiring baby boomers who were seeking out a new life, exciting destinations, a better weather and a dream home. At Boomer Abroad Online Community we strive to fill the information gap and educate and update Baby Boomers on the news, trends and opportunities in Latin America. Our new Mortgage Center enables potential home buyers to search for loans, compare lenders, find the right mortgage product and interest rate, and begin the application process with a few clicks of the mouse.
Puerto Vallarta, Jalisco, Mexico – July 30, 2009.
Searching for Mexico mortgages in the past has been a frustrating process with continually changing guidelines by lenders and trying to find the right type of mortgage product. Also, finding an experienced mortgage broker to ensure a smooth closing and loan funding process has been a challenge due to the ever changing landscape!
BoomersAbroad.com Online Community had introduced a solution with its Mortgage Center, from MexicoMortgageFinder.com, which provides BoomersAbroad.com Online Community members, users and visitors with real time mortgage rates and monthly payment information.
The BoomersAbroad.com Mortgage Finder empowers those who are looking for mortgage products in Mexico, to immediately search a database of all available mortgages offered in the marketplace…property and credit profile specific. Once the perfect loan (purchase, cash out, construction) is found, immediate contact with the lender is made to begin the approval process. Or, if the consumer is still “house hunting”, they may save the loan details to his/her profile (on one or multiple properties)and return to the oomersAbroad.com web site to retrieve the saved loan details at a later date as the home buying process nears closing.
“We are truly excited to partner with BoomersAbroad.com as we feel they offer an incredible site which empowers ex-pats to be better informed when considering…and actually…moving abroad. Our technology enables BoomersAbroad.com Online Community members, users and visititors to see real time mortgage product and rate information and eliminate the confusion associated with finding the right mortgage option in Mexico,” says Jeff Davis, Director General of the Mexico Mortgage Marketplace.
“We have always been on the cutting edge of technology and the MexicoMortgageFinder.com program is a great addition to our website. Clients want to be able to get information immediately at any hour of the day in the comfort of their own home – that is possible with this technology. The added benefit is that MexicoMortgageFinder.com also works togther with loan brokers, so clients can still have a loan broker working for them as well if they wish. Loans are readily available in Mexico and this technology provides the opportunity for so many more buyers to purchase their dream home in Mexico”, says Luis Miranda, President of BoomersAbroad.com Online Community.
Membership for home buyers, realtors and developers in the BoomersAbroad,com Mortgage Marketplace is fast, free and easy. And it provides access to the entire database of Mexico Mortgage options. For more information on the BoomersAbroad.com Mortgage Marketplace, to search for the perfect loan for your dream home purchase, visit http://www.boomersabroad.com/
For more information about the BoomersAbroad.com Online Community and BoomersAbroad.com Mortgage Marketplace, please contact Luis Miranda at lmiranda@boomersabroad.com
About BoomersAbroad.com
BoomersAbroad.com is an Online Community & Social Network and was born in direct response to hundreds of conversations with retiring baby boomers who were seeking out a new life, exciting destinations, a better weather and a dream home. At Boomer Abroad Online Community we strive to fill the information gap and educate and update Baby Boomers on the news, trends and opportunities in Latin America”.
Using the online community model, our goal is to provide the necessary information, education, guidance, resources, tools and alternatives to start boomers down the path of discovering and understanding all that living, retiring and investing abroad has to offer. Everybody learns from everybody. We understand the proven power of collaboration. It is collective wisdom.
About the México Mortgage Marketplace.
Mexico Mortgage Marketplace, is a privately held Limited Liability Corporation located on Mexico’s Pacific coast city of Puerto Vallarta. The Company develops web-based technology which is used to automate processes for the banking, mortgage and real estate industries. In addition to technology development for its partners, the Company also owns and operates several web sites which are designed to streamline mortgage and real estate processes throughout Latin America and the Caribbean.
Puerto Vallarta, Jalisco, Mexico – July 30, 2009.
Searching for Mexico mortgages in the past has been a frustrating process with continually changing guidelines by lenders and trying to find the right type of mortgage product. Also, finding an experienced mortgage broker to ensure a smooth closing and loan funding process has been a challenge due to the ever changing landscape!
BoomersAbroad.com Online Community had introduced a solution with its Mortgage Center, from MexicoMortgageFinder.com, which provides BoomersAbroad.com Online Community members, users and visitors with real time mortgage rates and monthly payment information.
The BoomersAbroad.com Mortgage Finder empowers those who are looking for mortgage products in Mexico, to immediately search a database of all available mortgages offered in the marketplace…property and credit profile specific. Once the perfect loan (purchase, cash out, construction) is found, immediate contact with the lender is made to begin the approval process. Or, if the consumer is still “house hunting”, they may save the loan details to his/her profile (on one or multiple properties)and return to the oomersAbroad.com web site to retrieve the saved loan details at a later date as the home buying process nears closing.
“We are truly excited to partner with BoomersAbroad.com as we feel they offer an incredible site which empowers ex-pats to be better informed when considering…and actually…moving abroad. Our technology enables BoomersAbroad.com Online Community members, users and visititors to see real time mortgage product and rate information and eliminate the confusion associated with finding the right mortgage option in Mexico,” says Jeff Davis, Director General of the Mexico Mortgage Marketplace.
“We have always been on the cutting edge of technology and the MexicoMortgageFinder.com program is a great addition to our website. Clients want to be able to get information immediately at any hour of the day in the comfort of their own home – that is possible with this technology. The added benefit is that MexicoMortgageFinder.com also works togther with loan brokers, so clients can still have a loan broker working for them as well if they wish. Loans are readily available in Mexico and this technology provides the opportunity for so many more buyers to purchase their dream home in Mexico”, says Luis Miranda, President of BoomersAbroad.com Online Community.
Membership for home buyers, realtors and developers in the BoomersAbroad,com Mortgage Marketplace is fast, free and easy. And it provides access to the entire database of Mexico Mortgage options. For more information on the BoomersAbroad.com Mortgage Marketplace, to search for the perfect loan for your dream home purchase, visit http://www.boomersabroad.com/
For more information about the BoomersAbroad.com Online Community and BoomersAbroad.com Mortgage Marketplace, please contact Luis Miranda at lmiranda@boomersabroad.com
About BoomersAbroad.com
BoomersAbroad.com is an Online Community & Social Network and was born in direct response to hundreds of conversations with retiring baby boomers who were seeking out a new life, exciting destinations, a better weather and a dream home. At Boomer Abroad Online Community we strive to fill the information gap and educate and update Baby Boomers on the news, trends and opportunities in Latin America”.
Using the online community model, our goal is to provide the necessary information, education, guidance, resources, tools and alternatives to start boomers down the path of discovering and understanding all that living, retiring and investing abroad has to offer. Everybody learns from everybody. We understand the proven power of collaboration. It is collective wisdom.
About the México Mortgage Marketplace.
Mexico Mortgage Marketplace, is a privately held Limited Liability Corporation located on Mexico’s Pacific coast city of Puerto Vallarta. The Company develops web-based technology which is used to automate processes for the banking, mortgage and real estate industries. In addition to technology development for its partners, the Company also owns and operates several web sites which are designed to streamline mortgage and real estate processes throughout Latin America and the Caribbean.
Do “In Demand” U.S. Jobs = Expat Jobs in Mexico?
By: Khaki Scott
Simply finding a job in Mexico is not a career destination. Finding a job in Mexico that pays enough to leave plenty left over for investing in Mexican real estate is the next best thing to finding Nirvana. The three most active job markets in the U.S. today are Health Care, Information Technology, and the catch-all phrase of Professional Services. In order to immigrate to Mexico, foreigners must prove that they have an income of approximately $1,500 USD per month, depending on the current exchange rate. In addition, Mexico does not hire foreigners unless it is for a position for which no Mexican worker can be found. This investigation will look at the most sought after skills north of the border and give Americans and Canadians an idea of whether or not training in these areas will win them a successful career in Mexico.
There is a great need for Home Health Aides in the U.S. and the pay is low but rising because it is cheaper to hire home health aides than to support people in nursing homes. This job does not translate well to a job in Mexico because the Mexican culture, as a whole, produces service-oriented citizens and English is now required in schools. This means these jobs all go to Mexican citizens at Mexican rates of pay. American Home Health Aides, if they can find a job, will be paid Mexican wages and will not earn enough to even meet immigration income requirements, much less be able to invest in real estate.
Medical Assistants, such as Nurse Practitioners and Physician Assistants, are in a great position in the U.S., in Canada and in Mexico. The key here is learning Spanish and then hiring out to a Spanish-speaking specialist in Mexico as a liason to English-speaking patients. Medical tourism, plus an exploding population of resident expats, is making this a great job for Americans who opt to live south of the border. School is no cake-walk, but the option to live and invest where one chooses is the prize for finishing – and what a prize it is!
Mental Health Counselors and Social Workers are also in a good position both north and south of the border. The demand for psychologists is growing, especially as baby-boomers age. With the proper documentation, psychologists can develop quite nice practices in areas in Mexico that have a large expat community. Social workers would do well to get nursing home experience north of the border and then look for those same positions in the growing American assisted living and nursing home community in Mexico. These careers also require a degree and speaking Spanish would be a huge plus here as well. Medicare will soon be coming to Mexico, so keep these career areas in mind.
Information Technology does not translate well to finding a job in Mexico because Mexico is the Godzilla of Information Technology in the 21st century. However, this does not mean that there are no jobs for Americans in this area in Mexico. One could, given time and financial backing, build quite a nice web design practice. It would be tough going and many fall by the wayside, but it can be done. The best IT jobs are the remote positions in which Network Systems and Data Analysts work for American companies online, get paid in dollars, and are allowed to live anywhere in the world they want to live. This is a highly competitive job market and a degree in Information Technology or Computer Programming is a must.
Professional Services included careers such as: paralegals, financial services, accountants and auditors. Many Americans think there would be opportunities for them as paralegals in Mexico. This is probably not the case because a rapidly growing segment of the Mexican legal community is bilingual. Financial services does offer an open career path but, like Web Design, would take a good deal of financial backing, time and proximity to large expat communities to build a successful practice. Accounting, on the other hand, coupled with a little financial services background, is a real winner for the potential expat. American and Canadian expats both need tax experts with whom they feel comfortable. If that tax person just so happens to know their way around Social Security rules and how to use IRA money to purchase investment property, then so much the better! This is a wide-open field that is just coming into its own for American and Canadian accountants who want to live in Mexico. All of the professional services careers require a degree and, if the career seeker is planning on moving to Mexico, the ability to speak Spanish is strongly recommended.
The best future opportunity for gringos in Mexico is the one that is now expected to become the fastest growing segment of the professional and business services sector: Employment Services. A degree in Human Resource Management and the ability to speak Spanish translates here to having one’s finger on the pulse of every expat job market in Mexico. Here too there are online jobs with some of the largest employment companies in the world. They need recruiters and placement specialists who will be paid in U.S. dollars and are allowed to live anywhere they want to live. Although this too is a competitive environment, its rewards make it well worth investigating.
Understanding the Mexican culture, the south of the border job market and its rules, and what Americans are and are not allowed to do in Mexico will make it easier than ever before for younger Americans and Canadians to make the leap into a new life in Mexico, where investing in a secure future is still a reality and where the quality of life is better than ever.
Resource: Ten Careers That Make Employers Look for You
Simply finding a job in Mexico is not a career destination. Finding a job in Mexico that pays enough to leave plenty left over for investing in Mexican real estate is the next best thing to finding Nirvana. The three most active job markets in the U.S. today are Health Care, Information Technology, and the catch-all phrase of Professional Services. In order to immigrate to Mexico, foreigners must prove that they have an income of approximately $1,500 USD per month, depending on the current exchange rate. In addition, Mexico does not hire foreigners unless it is for a position for which no Mexican worker can be found. This investigation will look at the most sought after skills north of the border and give Americans and Canadians an idea of whether or not training in these areas will win them a successful career in Mexico.
There is a great need for Home Health Aides in the U.S. and the pay is low but rising because it is cheaper to hire home health aides than to support people in nursing homes. This job does not translate well to a job in Mexico because the Mexican culture, as a whole, produces service-oriented citizens and English is now required in schools. This means these jobs all go to Mexican citizens at Mexican rates of pay. American Home Health Aides, if they can find a job, will be paid Mexican wages and will not earn enough to even meet immigration income requirements, much less be able to invest in real estate.
Medical Assistants, such as Nurse Practitioners and Physician Assistants, are in a great position in the U.S., in Canada and in Mexico. The key here is learning Spanish and then hiring out to a Spanish-speaking specialist in Mexico as a liason to English-speaking patients. Medical tourism, plus an exploding population of resident expats, is making this a great job for Americans who opt to live south of the border. School is no cake-walk, but the option to live and invest where one chooses is the prize for finishing – and what a prize it is!
Mental Health Counselors and Social Workers are also in a good position both north and south of the border. The demand for psychologists is growing, especially as baby-boomers age. With the proper documentation, psychologists can develop quite nice practices in areas in Mexico that have a large expat community. Social workers would do well to get nursing home experience north of the border and then look for those same positions in the growing American assisted living and nursing home community in Mexico. These careers also require a degree and speaking Spanish would be a huge plus here as well. Medicare will soon be coming to Mexico, so keep these career areas in mind.
Information Technology does not translate well to finding a job in Mexico because Mexico is the Godzilla of Information Technology in the 21st century. However, this does not mean that there are no jobs for Americans in this area in Mexico. One could, given time and financial backing, build quite a nice web design practice. It would be tough going and many fall by the wayside, but it can be done. The best IT jobs are the remote positions in which Network Systems and Data Analysts work for American companies online, get paid in dollars, and are allowed to live anywhere in the world they want to live. This is a highly competitive job market and a degree in Information Technology or Computer Programming is a must.
Professional Services included careers such as: paralegals, financial services, accountants and auditors. Many Americans think there would be opportunities for them as paralegals in Mexico. This is probably not the case because a rapidly growing segment of the Mexican legal community is bilingual. Financial services does offer an open career path but, like Web Design, would take a good deal of financial backing, time and proximity to large expat communities to build a successful practice. Accounting, on the other hand, coupled with a little financial services background, is a real winner for the potential expat. American and Canadian expats both need tax experts with whom they feel comfortable. If that tax person just so happens to know their way around Social Security rules and how to use IRA money to purchase investment property, then so much the better! This is a wide-open field that is just coming into its own for American and Canadian accountants who want to live in Mexico. All of the professional services careers require a degree and, if the career seeker is planning on moving to Mexico, the ability to speak Spanish is strongly recommended.
The best future opportunity for gringos in Mexico is the one that is now expected to become the fastest growing segment of the professional and business services sector: Employment Services. A degree in Human Resource Management and the ability to speak Spanish translates here to having one’s finger on the pulse of every expat job market in Mexico. Here too there are online jobs with some of the largest employment companies in the world. They need recruiters and placement specialists who will be paid in U.S. dollars and are allowed to live anywhere they want to live. Although this too is a competitive environment, its rewards make it well worth investigating.
Understanding the Mexican culture, the south of the border job market and its rules, and what Americans are and are not allowed to do in Mexico will make it easier than ever before for younger Americans and Canadians to make the leap into a new life in Mexico, where investing in a secure future is still a reality and where the quality of life is better than ever.
Resource: Ten Careers That Make Employers Look for You
Medicare In Mexico
By Richard C. Morais, Forbes.com
American retirees push Congress to allow Medicare benefits in Mexico
WASHINGTON -- The U.S. government should pick up the cost of health care for the elderly Americans living in Mexico. That's the gist of a new lobbying effort aimed at pushing Washington into covering foreign medical expenses for the first time via its sprawling Medicare programs. There are over 1 million U.S. citizens living south of the border, many of them retirees.
The government's current position is that retired citizens cannot claim benefits for medical treatments received overseas, even if they paid into the Medicare system during their working lives.
The U.S. government is worried that creating a Mexican Medicare exemption might be too complicated and costly to implement and would open the door for Americans in countries as far afield as Poland and Thailand to press for similar benefits, according to David Warner, a professor of health care policy at the University of Texas at Austin and a specialist on Medicare in Mexico.
Paul Crist, a former aid to Sen. Paul Sarbanes, D-Md., now running a hotel in Puerto Vallarta, Mexico, isn't buying it. Last March, Crist founded the non-profit Americans For Medicare In Mexico. The American businessman has since lobbied 85 members in the U.S. Congress to get Medicare accepted south of the border.
It is Mexico's unique proximity to America that makes the whole process economically viable, he says. The current inflexible Medicare benefits system is the reason why 64% of retired Americans in Mexico currently return to the U.S. for medical treatment; the remaining U.S. retirees are getting treated in Mexico but picking up the costs themselves.
They can pay out-of-pocket because "health care is extremely affordable in Mexico with or without health insurance," as are "comprehensive private insurance policies," according to MedToGo.com, a Web site owned and operated by U.S. physicians.
Comment On This Story
An office visit to a doctor in a Mexican city typically runs between $30 and $40, according to MedToGo, while a hospital room costs $90 to $100 a night. Besides private health care insurance, the Mexican Institute of Social Security (which goes by the Spanish initials IMSS) provides affordable, if basic, health insurance for all Mexican residents, regardless of nationality. Studies suggest that health care services are 70% less expensive in Mexico than in the U.S.
If Medicare were accepted in Mexico, the 64% of American retirees currently flying back to the U.S. for expensive care would instead opt for treatment nearer their homes, cutting Medicare's overall costs by a minimum of 22% net, Crist figures. The Mexican government, hoping to lure more retirees from the U.S., including those born in Mexico, is largely open to accepting Medicare, says Professor Warner.
So is the U.S. Congress, claims Crist. "Response has been quite positive, especially on the House side," he says.
But the offices of Reps. Jim McDermott, D-Wash., Carolyn Maloney, D-N.Y., and other sympathetic legislators have also told Crist that this year they have too much on their plate, and that it would be politically wiser to introduce a stand-alone Mexico-Medicare bill next year, separate from the complex health care reform package currently working its way through Capitol Hill.
Professor Warner, who also supports the granting of Medicare coverage in Mexico, says an in-depth three-year Mexico-Medicare pilot project is needed to better understand the economics, determine whether Mexican health care meets Medicare's quality standards and determine if the payment system is sufficiently free of fraud.
"I don't think it need be a big deal," he adds. "The Center for Medicare & Medicaid Services ... is taking the position that Congress has to give it [a special] waiver to pay overseas. But this does not require a large appropriation of money. If any."
While AARP, the retiree interest group, has yet to take a position and did not respond to Forbes' request for comment, Crist's lobbying efforts appear to be picking up support, including from real estate developers hoping to build assisted-living villages for American retirees in Mexico and influential lobbying groups, including the Association of Americans Resident Overseas.
The association and others are instructing members to send letters to their congressional representatives, urging that at minimum a demonstration project be undertaken to study the consequences of accepting Medicare benefits in Mexico.
"As an American who has worked outside the USA, I will be eligible for Medicare benefits, having paid for them during my working life. Because I live outside the USA, however, I will not be able to receive these benefits in the country where I live," one letter from the AARO states.
In a year when U.S. politicians have been battered by constituents' claims that the U.S. government is trying to take away their medical choices, a potentially cost-saving pilot allowing for more choice in Medicare seems, on the surface, a political slam-dunk.
It would also help ease immigration pressure: Long-term U.S. residents who were born in Mexico, and are interested in returning when they retire, would no longer be reluctant to do so for fear of losing their Medicare benefits.
American retirees push Congress to allow Medicare benefits in Mexico
WASHINGTON -- The U.S. government should pick up the cost of health care for the elderly Americans living in Mexico. That's the gist of a new lobbying effort aimed at pushing Washington into covering foreign medical expenses for the first time via its sprawling Medicare programs. There are over 1 million U.S. citizens living south of the border, many of them retirees.
The government's current position is that retired citizens cannot claim benefits for medical treatments received overseas, even if they paid into the Medicare system during their working lives.
The U.S. government is worried that creating a Mexican Medicare exemption might be too complicated and costly to implement and would open the door for Americans in countries as far afield as Poland and Thailand to press for similar benefits, according to David Warner, a professor of health care policy at the University of Texas at Austin and a specialist on Medicare in Mexico.
Paul Crist, a former aid to Sen. Paul Sarbanes, D-Md., now running a hotel in Puerto Vallarta, Mexico, isn't buying it. Last March, Crist founded the non-profit Americans For Medicare In Mexico. The American businessman has since lobbied 85 members in the U.S. Congress to get Medicare accepted south of the border.
It is Mexico's unique proximity to America that makes the whole process economically viable, he says. The current inflexible Medicare benefits system is the reason why 64% of retired Americans in Mexico currently return to the U.S. for medical treatment; the remaining U.S. retirees are getting treated in Mexico but picking up the costs themselves.
They can pay out-of-pocket because "health care is extremely affordable in Mexico with or without health insurance," as are "comprehensive private insurance policies," according to MedToGo.com, a Web site owned and operated by U.S. physicians.
Comment On This Story
An office visit to a doctor in a Mexican city typically runs between $30 and $40, according to MedToGo, while a hospital room costs $90 to $100 a night. Besides private health care insurance, the Mexican Institute of Social Security (which goes by the Spanish initials IMSS) provides affordable, if basic, health insurance for all Mexican residents, regardless of nationality. Studies suggest that health care services are 70% less expensive in Mexico than in the U.S.
If Medicare were accepted in Mexico, the 64% of American retirees currently flying back to the U.S. for expensive care would instead opt for treatment nearer their homes, cutting Medicare's overall costs by a minimum of 22% net, Crist figures. The Mexican government, hoping to lure more retirees from the U.S., including those born in Mexico, is largely open to accepting Medicare, says Professor Warner.
So is the U.S. Congress, claims Crist. "Response has been quite positive, especially on the House side," he says.
But the offices of Reps. Jim McDermott, D-Wash., Carolyn Maloney, D-N.Y., and other sympathetic legislators have also told Crist that this year they have too much on their plate, and that it would be politically wiser to introduce a stand-alone Mexico-Medicare bill next year, separate from the complex health care reform package currently working its way through Capitol Hill.
Professor Warner, who also supports the granting of Medicare coverage in Mexico, says an in-depth three-year Mexico-Medicare pilot project is needed to better understand the economics, determine whether Mexican health care meets Medicare's quality standards and determine if the payment system is sufficiently free of fraud.
"I don't think it need be a big deal," he adds. "The Center for Medicare & Medicaid Services ... is taking the position that Congress has to give it [a special] waiver to pay overseas. But this does not require a large appropriation of money. If any."
While AARP, the retiree interest group, has yet to take a position and did not respond to Forbes' request for comment, Crist's lobbying efforts appear to be picking up support, including from real estate developers hoping to build assisted-living villages for American retirees in Mexico and influential lobbying groups, including the Association of Americans Resident Overseas.
The association and others are instructing members to send letters to their congressional representatives, urging that at minimum a demonstration project be undertaken to study the consequences of accepting Medicare benefits in Mexico.
"As an American who has worked outside the USA, I will be eligible for Medicare benefits, having paid for them during my working life. Because I live outside the USA, however, I will not be able to receive these benefits in the country where I live," one letter from the AARO states.
In a year when U.S. politicians have been battered by constituents' claims that the U.S. government is trying to take away their medical choices, a potentially cost-saving pilot allowing for more choice in Medicare seems, on the surface, a political slam-dunk.
It would also help ease immigration pressure: Long-term U.S. residents who were born in Mexico, and are interested in returning when they retire, would no longer be reluctant to do so for fear of losing their Medicare benefits.
Saturday, September 5, 2009
Baby Boomers Will Drive Real Estate Growth
Baby boomers have been a driving force in many areas of the economy, culture and consumer attitudes for several decades. As the oldest boomers approach retirement in the next few years they will begin contemplating not just whether to retire, but also where they want to live in the next stage of their life. One big component of this decision is the housing choices that boomers will make as they decide whether to sell a home, relocate or invest in real estate.
As a group, baby boomers comprise the largest population cohort in the history of the United States & Canada. The size of the group gives it vast influence over North American politics, popular cultural, and of course, real estate & interantional real estate.
To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow.
Even that the study is from 2006, and that we have lived tremendous times lately, that is exactly why the name of the study was "Baby Boomers and Real Estate: Today and Tomorrow". Demographics are demographics, and Baby Boomers are Baby Boomers. "Baby Boomers are the most powerful consumers in the marketplace today and will continue to be, regradless of the economic climate, for many years to come." - say David Weigelt & Jonathan Boehman in their great Book "Dot Boom."
Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow
As a group, baby boomers comprise the largest population cohort in the history of the United States & Canada. The size of the group gives it vast influence over North American politics, popular cultural, and of course, real estate & interantional real estate.
To evaluate the influence of the baby boomers on the future of real estate, the National Association of Realtors (NAR) conducted a study in 2006. The findings of the research were published in report entitled Baby Boomers and Real Estate: Today and Tomorrow.
Even that the study is from 2006, and that we have lived tremendous times lately, that is exactly why the name of the study was "Baby Boomers and Real Estate: Today and Tomorrow". Demographics are demographics, and Baby Boomers are Baby Boomers. "Baby Boomers are the most powerful consumers in the marketplace today and will continue to be, regradless of the economic climate, for many years to come." - say David Weigelt & Jonathan Boehman in their great Book "Dot Boom."
Below are some highlights from the NAR study.
AGE DISTRBUTION
According to the NAR report, baby boomers now range in age from 42 to 60 years old. The typical baby boomer is 50 years old, and the oldest of the baby boomers turned 60 in 2006. About 46% of baby boomers are in their 40s, and about 25% are at least 55 years old.
HOUSEHOLD INCOME
As a group, baby boomers are in their peak earning years. In 2005, baby boomers had a household income of $64,700, and about 25% them had a household income of at least $100,000 per year.
HOME OWNERSHIP
About 78% of baby boomers own a home, which is higher than the national ownership rate of 69%. About 96% of baby boomers believe that home ownership is a good financial investment.
FUTURE REAL ESTATE PURCHASES
About 10%, or 7.8 million of all baby boomers, said they were likely to purchase additional real estate in the next 12 months. Of these potential buyers, two-thirds were planning on buying a primary residence, 26% want to buy land, 19% want rental property, 15% want a vacation home or seasonal home, and 14% want a commercial property.
WHAT FEATURES ATTRACT BOOMERS
When baby boomers were asked about what features are most important to them, 38% wanted a lower cost of living, 38% wanted to be near family, 38% wanted easy access to quality health care, 37% wanted a better climate, and 36% wanted to be near a body of water.
PREFERRED COMMUNITY AMENITIES
When baby boomers were asked about the type of community amenities that interest them most, about 18% wanted to be near cultural offerings, 9% wanted to be closer to their family, 4% wanted to be on a golf course, and 3% wanted easy access to educational facilities.
WHERE DO BOOMERS WANT TO RETIRE
When baby boomers were asked about where they want to retire, 33% of them want to retire in a rural area, 30% in a small town, 25% in a suburban area, and only 12% in an urban community.
BOOMERS AND THEIR REAL ESTATE AGENTS
Baby boomers consistently use the services of a real estate agent. Approximately 60% of homebuyers and 79% of home sellers used a real estate agent in their last transaction.
SUMMARY
The baby boomers have had and will continue to have a significant impact on the real estate market. As the boomers near retirement, they continue to value real estate and will continue to invest in properties and land. Real estate agents would be well served to understand what baby boomers want in terms of their real estate investments, and design strategies that target the needs of this enormous population cohort. For more information, read the NAR report entitled, Baby Boomers and Real Estate: Today and Tomorrow
Wednesday, August 5, 2009
The Death of Foreign Earned Income Exclusions?
Copyright © 2009 Nick Hodges
President Obama is tagging your Foreign Earned Income Exemption to help pay for huge federal budget deficits. He thinks to hide this motive behind recent White House announcements about U.S. companies, providing smokescreens such as: "I want to see our companies remain the most competitive in the world," and "...the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."
The reality is that with tax gaps estimated in the $400 billion range, this administration is hard-pressed to come up with new sources of revenues to fill the deficit. It is estimated that offshore tax abuses cause the United States to lose approximately $100 billion each year in tax revenues. Recovering these funds represent a substantial portion of the annual U.S. tax gap, which is why President Obama has authorized an additional $128 million for the 2010 IRS budget, which includes the addition of 800 new IRS agents. Do not be fooled, they have declared war on YOU and are coming after YOUR money.
First, they are going after the companies you work for because they see companies operating abroad as a viable source of additional revenues. Currently, companies with overseas operations pay U.S. taxes only if they bring the profits back to the United States. They can defer paying U.S. taxes indefinitely if they keep the profits offshore. Obama's plan, which would take effect in 2011, cracks down on these loopholes so that companies would no longer be able to write off domestic expenses for generating profits abroad. It is estimated that this change alone would generate $210 billion in new taxes over the next 10 years, making a modest dent in the forecasted $1.8 trillion federal deficit. Rest assured, this administration will encourage any possible avenue to be able to bring these monies back into the U.S.
And, they are coming after YOU. The recently released IRS report on the 2006 tax year indicates that the Foreign Earned Income Exclusion might be another modest source for helping to fill the tax gap. In tax year 2006, about U.S. taxpayers living abroad reported approximately $36.7 billion in foreign-earned income and claimed nearly $18.4 billion in income exclusions. And that was three years ago. There are more Americans living and working abroad now than ever. Can't you just see the wheels turning in the minds of our government leaders? Removing the Foreign Earned Income Exclusion could add billions to U.S. tax coffers.
Perhaps you think they won't find YOU. The historic legal struggle that has cracked Switzerland's renowned reputation for banking secrecy is part of an on-going IRS quest to identify nearly 52,000 suspect offshore bank accounts. When the IRS increases their workforce by 800 new agents, they won't be hiring new college recruits. They have announced that they will be hiring the fancy attorneys and investment advisors that have helped hide those assets offshore. Now, multiply the number of suspected offshore accounts by the $10,000 or possibly $20,000 in allowable fines for non-reporting, and you come up with another modest number toward the filling of the U.S. tax gap. If you have been one of those 'tax evaders' thinking they can hide assets in offshore bank accounts, think again. The IRS is already searching for you, cracking the international bank privacy policies and gearing up to hire professionals to find you.
All of these items add up to making the American Expatriate look like a great big piggy bank to the current administration. While there will likely be a huge fight in Congress regarding closing the corporate loopholes, it is even more likely that the tax benefits associated with your Foreign Earned Income Exclusion will be taken from you. Fines for unreported bank accounts will soon become automatic bills. This means that for you, the individual American Expatriate, the stakes are high and getting higher if you seek to hide your income off-shore or evade paying U.S. taxes on that income.
What action do you need to take as an expatriate? Stay abreast of the latest information that develops about the foreign earned income exclusion. The best way to accomplish this is to work with a reputable advisor who will focus on keeping you out of the scrutiny of the IRS by keeping your activities well above board and within the law. Your advisor must be well-versed in the nuances of expatriate tax law, so check with your advisor about his/her expertise in this arena and be ensure you've chosen your advisor wisely.
--------------------------------------------------------------------------------
Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com
President Obama is tagging your Foreign Earned Income Exemption to help pay for huge federal budget deficits. He thinks to hide this motive behind recent White House announcements about U.S. companies, providing smokescreens such as: "I want to see our companies remain the most competitive in the world," and "...the way to make sure that happens is not to reward our companies for moving jobs off our shores or transferring profits to overseas tax havens."
The reality is that with tax gaps estimated in the $400 billion range, this administration is hard-pressed to come up with new sources of revenues to fill the deficit. It is estimated that offshore tax abuses cause the United States to lose approximately $100 billion each year in tax revenues. Recovering these funds represent a substantial portion of the annual U.S. tax gap, which is why President Obama has authorized an additional $128 million for the 2010 IRS budget, which includes the addition of 800 new IRS agents. Do not be fooled, they have declared war on YOU and are coming after YOUR money.
First, they are going after the companies you work for because they see companies operating abroad as a viable source of additional revenues. Currently, companies with overseas operations pay U.S. taxes only if they bring the profits back to the United States. They can defer paying U.S. taxes indefinitely if they keep the profits offshore. Obama's plan, which would take effect in 2011, cracks down on these loopholes so that companies would no longer be able to write off domestic expenses for generating profits abroad. It is estimated that this change alone would generate $210 billion in new taxes over the next 10 years, making a modest dent in the forecasted $1.8 trillion federal deficit. Rest assured, this administration will encourage any possible avenue to be able to bring these monies back into the U.S.
And, they are coming after YOU. The recently released IRS report on the 2006 tax year indicates that the Foreign Earned Income Exclusion might be another modest source for helping to fill the tax gap. In tax year 2006, about U.S. taxpayers living abroad reported approximately $36.7 billion in foreign-earned income and claimed nearly $18.4 billion in income exclusions. And that was three years ago. There are more Americans living and working abroad now than ever. Can't you just see the wheels turning in the minds of our government leaders? Removing the Foreign Earned Income Exclusion could add billions to U.S. tax coffers.
Perhaps you think they won't find YOU. The historic legal struggle that has cracked Switzerland's renowned reputation for banking secrecy is part of an on-going IRS quest to identify nearly 52,000 suspect offshore bank accounts. When the IRS increases their workforce by 800 new agents, they won't be hiring new college recruits. They have announced that they will be hiring the fancy attorneys and investment advisors that have helped hide those assets offshore. Now, multiply the number of suspected offshore accounts by the $10,000 or possibly $20,000 in allowable fines for non-reporting, and you come up with another modest number toward the filling of the U.S. tax gap. If you have been one of those 'tax evaders' thinking they can hide assets in offshore bank accounts, think again. The IRS is already searching for you, cracking the international bank privacy policies and gearing up to hire professionals to find you.
All of these items add up to making the American Expatriate look like a great big piggy bank to the current administration. While there will likely be a huge fight in Congress regarding closing the corporate loopholes, it is even more likely that the tax benefits associated with your Foreign Earned Income Exclusion will be taken from you. Fines for unreported bank accounts will soon become automatic bills. This means that for you, the individual American Expatriate, the stakes are high and getting higher if you seek to hide your income off-shore or evade paying U.S. taxes on that income.
What action do you need to take as an expatriate? Stay abreast of the latest information that develops about the foreign earned income exclusion. The best way to accomplish this is to work with a reputable advisor who will focus on keeping you out of the scrutiny of the IRS by keeping your activities well above board and within the law. Your advisor must be well-versed in the nuances of expatriate tax law, so check with your advisor about his/her expertise in this arena and be ensure you've chosen your advisor wisely.
--------------------------------------------------------------------------------
Nick Hodges, President of NCH Wealth Advisors, provides US expatriates with the best tools, strategies and planning techniques to help expats manage their tax and financial goals and dreams on a day-to-day basis regardless of their location. To claim your free gift, ExPat Life Portfolio Kit, visit his site at =======> ExPatCFO.com
English Comes to Mexico
By: Khaki Scott
Many Americans and Canadians hesitate to purchase property in Mexico simply because they cannot get over their fear that they may, somehow, be taken advantage of by unscrupulous real estate agents and attorneys because they do not speak Spanish. That is, in reality, probably not a significant problem anywhere in Mexico, since many Mexican attorneys speak fluent English, as do their staff members. However, this innate fear of doing business in a foreign language is now on the way to being completely resolved, especially in states such as Tamaulipas and Nuevo Leon.
Tamaulipas has officially declared itself bilingual and now English is mandatory in public schools for all of its over 300,000 public school children. Nuevo Leon is right behind Tamaulipas and will be officially bilingual in the very near future. Other states, such as Chihuahua and the Mexico City area are also pushing hard to become officially bilingual. Still other states, such as the State of Yucatan, have long required English in their public schools but have not yet begun to talk of becoming officially bilingual.
The reasoning behind the pressure to become bilingual is to provide the Mexican people with the tools necessary to protect themselves in the global English speaking marketplace. Speaking English gives them entre to the world of technology, a wave that Mexico is riding into the 21st century and beyond. Speaking English also allows them to defend themselves in difficult situations when they are in an English speaking area, such as the United States. It is a happy accident that the Mexicans’ ability to speak and write in English is translating into providing Americans and Canadians with the same protective tools necessary to protect themselves when they come to invest in real estate in Mexico.
There is a flip side to the news that the Mexican people in several states are now speaking English, or are moving rapidly in the direction of speaking English in their business environments. That is the risk that potential American and Canadian real estate investors may end up trusting anyone who can speak English, over someone who might be both honest and ethical, but only speaks Spanish. Gringo on gringo fraud and deception has long been a problem in all forms of business in Mexico, and none more so than in real estate. Therefore, it is still strongly advised that every potential investor in Mexican real estate who only speaks English checks with local expat communities and/or local consulate offices for a list of Mexican attorneys who not only speak English, but whom they can trust to always have their best interests at heart
Many Americans and Canadians hesitate to purchase property in Mexico simply because they cannot get over their fear that they may, somehow, be taken advantage of by unscrupulous real estate agents and attorneys because they do not speak Spanish. That is, in reality, probably not a significant problem anywhere in Mexico, since many Mexican attorneys speak fluent English, as do their staff members. However, this innate fear of doing business in a foreign language is now on the way to being completely resolved, especially in states such as Tamaulipas and Nuevo Leon.
Tamaulipas has officially declared itself bilingual and now English is mandatory in public schools for all of its over 300,000 public school children. Nuevo Leon is right behind Tamaulipas and will be officially bilingual in the very near future. Other states, such as Chihuahua and the Mexico City area are also pushing hard to become officially bilingual. Still other states, such as the State of Yucatan, have long required English in their public schools but have not yet begun to talk of becoming officially bilingual.
The reasoning behind the pressure to become bilingual is to provide the Mexican people with the tools necessary to protect themselves in the global English speaking marketplace. Speaking English gives them entre to the world of technology, a wave that Mexico is riding into the 21st century and beyond. Speaking English also allows them to defend themselves in difficult situations when they are in an English speaking area, such as the United States. It is a happy accident that the Mexicans’ ability to speak and write in English is translating into providing Americans and Canadians with the same protective tools necessary to protect themselves when they come to invest in real estate in Mexico.
There is a flip side to the news that the Mexican people in several states are now speaking English, or are moving rapidly in the direction of speaking English in their business environments. That is the risk that potential American and Canadian real estate investors may end up trusting anyone who can speak English, over someone who might be both honest and ethical, but only speaks Spanish. Gringo on gringo fraud and deception has long been a problem in all forms of business in Mexico, and none more so than in real estate. Therefore, it is still strongly advised that every potential investor in Mexican real estate who only speaks English checks with local expat communities and/or local consulate offices for a list of Mexican attorneys who not only speak English, but whom they can trust to always have their best interests at heart
Tuesday, August 4, 2009
You Can Receive Your Social Security Benefits Outside The United States
You Can Receive Your Social Security Benefits Outside The United States
Yes, you can receive your social security benefits outside the United States. If fact, you can have them deposited into your foreign bank account. So, fear of not receiving your social security benefit checks should not deter you from your expatriate living dreams and life abroad.
This concern about not receiving your social security check abroad can be alleviated it you are aware of certain stipulations. This discussion is primarily for U.S. citizens living abroad, since there are specific regulations that relate to citizens of other countries which are eligible for social security benefits because of their work history in the U.S. Three important questions for you to consider carefully before making the move follow:
1. When are you outside the United States? The Social Security Administration says you are considered outside the U.S. if you are not in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands or American Samoa. Once you have been out of the U.S. for at least 30 days in a row, you are considered to be outside the country until you return and stay in the U.S. for at least 30 days in a row. If you are not a U.S. citizen, you also may have to prove that you were lawfully present in the U.S. for that 30-day period.
2. How and where can I receive my Social Security benefit checks? The easiest solution is to have your benefit checks deposited into a U.S. bank and use your ATM or debit card to access your money. If you wish to have the money deposited abroad there are other considerations. Presently Social Security lists 44 countries in which you can have your benefits directly deposited to a bank in those countries. There are likewise certain countries to which by law social security benefit checks may not be sent. These can change but as of the time of my writing this, the U.S. Treasury Department forbids sending social security benefits to Cuba and North Korea. In addition, Social Security restrictions prohibit sending payments to individuals in Cambodia, Vietnam or areas that were in the former Soviet Union (other than Armenia, Estonia, Latvia, Lithuania and Russia).
3. Can I lose my benefits by living abroad? Yes, but only if you do not abide by the governmental stipulations that govern your benefits. In that sense, it is no different living abroad than living in the United States. Additionally, you may periodically be sent a questionnaire from Social Security asking for update information. If you fail to send this back in a timely fashion it could result in stoppage of your benefit payments. For the most part, retention of your benefits is no different when living abroad than when living in the U.S.
Detailed information on all regulations for both the U.S. citizen and citizens of other countries who are living abroad can be found on the Social Security Online site. Educating yourself on the complete regulations relating to receiving your Social Security benefits abroad can make your expatriate living much smoother.
Yes, you can receive your social security benefits outside the United States. If fact, you can have them deposited into your foreign bank account. So, fear of not receiving your social security benefit checks should not deter you from your expatriate living dreams and life abroad.
This concern about not receiving your social security check abroad can be alleviated it you are aware of certain stipulations. This discussion is primarily for U.S. citizens living abroad, since there are specific regulations that relate to citizens of other countries which are eligible for social security benefits because of their work history in the U.S. Three important questions for you to consider carefully before making the move follow:
1. When are you outside the United States? The Social Security Administration says you are considered outside the U.S. if you are not in one of the 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, the Northern Mariana Islands or American Samoa. Once you have been out of the U.S. for at least 30 days in a row, you are considered to be outside the country until you return and stay in the U.S. for at least 30 days in a row. If you are not a U.S. citizen, you also may have to prove that you were lawfully present in the U.S. for that 30-day period.
2. How and where can I receive my Social Security benefit checks? The easiest solution is to have your benefit checks deposited into a U.S. bank and use your ATM or debit card to access your money. If you wish to have the money deposited abroad there are other considerations. Presently Social Security lists 44 countries in which you can have your benefits directly deposited to a bank in those countries. There are likewise certain countries to which by law social security benefit checks may not be sent. These can change but as of the time of my writing this, the U.S. Treasury Department forbids sending social security benefits to Cuba and North Korea. In addition, Social Security restrictions prohibit sending payments to individuals in Cambodia, Vietnam or areas that were in the former Soviet Union (other than Armenia, Estonia, Latvia, Lithuania and Russia).
3. Can I lose my benefits by living abroad? Yes, but only if you do not abide by the governmental stipulations that govern your benefits. In that sense, it is no different living abroad than living in the United States. Additionally, you may periodically be sent a questionnaire from Social Security asking for update information. If you fail to send this back in a timely fashion it could result in stoppage of your benefit payments. For the most part, retention of your benefits is no different when living abroad than when living in the U.S.
Detailed information on all regulations for both the U.S. citizen and citizens of other countries who are living abroad can be found on the Social Security Online site. Educating yourself on the complete regulations relating to receiving your Social Security benefits abroad can make your expatriate living much smoother.
Sunday, August 2, 2009
Playa del Carmen Real Estate Booming
Playa del Carmen Real Estate Booming
The Playa del Carmen real estate is one of the highest of demand here in the country of Mexico. Many economical factors and general trends over the past two years throughout the North American and European economies are working to place the Mexico real estate market as one of the most attractive for investors throughout the world. Near forty percent 40% of the Riviera Maya Properties are being purchased by Mexican Foreigners with the Americans and Canadians leading the countries with the highest amount of such international real estate investors.
A very popular investment option has been the Mexico condo options. In this real estate opportunity, buyers are able to reserve a condo unit before the construction has been realized. On some occasions, the developer may offer Mexican investment construction options “off the plan” before a parcel of land has even been purchased. The risks are compensated with large discounted prices on the condo units which many international buyers have found extremely attractive given international averages on Ocean Front Condo prices. The procedure normally requires a reservation quantity to be paid ranging from $5,000 up to $10,000 usd. This money is refundable upon request and may reserve a unit for an average of 20 days, enough time for the investor and his legal counsel to study and analyze the promissory contract on the Playa del Carmen Real Estate. If the buyer, upon review of the contract, decides to proceed on the investment opportunity, he will then be required to sign a promissory contract and forward another payment quantity. This hard contract deposit may range from 20% up to 90% depending on the developer or the negotiation of the particular operation. Other payments and payment plans may include monthly transfers or transfers based on construction milestones. Once the property is completed, the developer can proceed on obtaining a Mexico Condominium Regimen, which will then allow for delivery of the physical property as well as transferring the legal rights to the Mexico property.
International buyers are playing a significant role in the demands for Playa del Carmen real estate. With the tourism and occupancy rates higher than years before, and projections stronger than any historical figures on record, the appreciation on Riviera Maya Real Estate continues to grow despite slowdowns in the United States market. As more tourists come to the area, more fall in love with the local Caribbean Beaches, Mexican history, and the warm Spanish hospitality
The Playa del Carmen real estate is one of the highest of demand here in the country of Mexico. Many economical factors and general trends over the past two years throughout the North American and European economies are working to place the Mexico real estate market as one of the most attractive for investors throughout the world. Near forty percent 40% of the Riviera Maya Properties are being purchased by Mexican Foreigners with the Americans and Canadians leading the countries with the highest amount of such international real estate investors.
A very popular investment option has been the Mexico condo options. In this real estate opportunity, buyers are able to reserve a condo unit before the construction has been realized. On some occasions, the developer may offer Mexican investment construction options “off the plan” before a parcel of land has even been purchased. The risks are compensated with large discounted prices on the condo units which many international buyers have found extremely attractive given international averages on Ocean Front Condo prices. The procedure normally requires a reservation quantity to be paid ranging from $5,000 up to $10,000 usd. This money is refundable upon request and may reserve a unit for an average of 20 days, enough time for the investor and his legal counsel to study and analyze the promissory contract on the Playa del Carmen Real Estate. If the buyer, upon review of the contract, decides to proceed on the investment opportunity, he will then be required to sign a promissory contract and forward another payment quantity. This hard contract deposit may range from 20% up to 90% depending on the developer or the negotiation of the particular operation. Other payments and payment plans may include monthly transfers or transfers based on construction milestones. Once the property is completed, the developer can proceed on obtaining a Mexico Condominium Regimen, which will then allow for delivery of the physical property as well as transferring the legal rights to the Mexico property.
International buyers are playing a significant role in the demands for Playa del Carmen real estate. With the tourism and occupancy rates higher than years before, and projections stronger than any historical figures on record, the appreciation on Riviera Maya Real Estate continues to grow despite slowdowns in the United States market. As more tourists come to the area, more fall in love with the local Caribbean Beaches, Mexican history, and the warm Spanish hospitality
Thursday, July 30, 2009
Campeche: Mexico’s New Land of Opportunity
The State of Campeche, Mexico, has walked onto the 21st century world stage already a star, ready to do business and provide a good life for retirees. Publicity has recently come with the addition of two sites on the UNESCO World Heritage Site list: the Historic Fortified Town of Campeche and the Ancient Maya City of Calakmul, but there is much more to this state that makes it so attractive to both large and small investors.
There is no need to worry about how hard it might be to go into business in Campeche. The Governor has already declared that every effort will be made to assist and support any business that comes to Campeche and provides jobs for Campechanos. They are especially interested in helping anyone who is able to contribute to marketing the products of the artisans of Campeche. All contact information is given in the in the State of Campeche website.
The artisans of Campeche are exceptionally talented and are already entering the export market, so this is the perfect time to invest in this area in Campeche. The products and locations for these artisans include:
Becal, Santa Cruz Hacienda, San Nicolas, and Tankuche: hats, fabric and accessories woven from jipijapa (video) For those who are not aware of the market for some of these products, it is helpful to review the retail prices of the different qualities of Panama hats here.
Nunkini: Rugs and objects woven from vegetable fibers
Champoton, Escarcega and Campeche: Objects carved from wood
Santa Cruz Pueblo, San Antonio, Sahcabchen, Concepcion, Pucnachen and Koben: Hammocks
Champoton and Ciudad del Carmen: Ornamental objects fabricated from sea shells
Ciudad de Campeche: Ornamental objects fabricated from the horns of bulls
Hopelchen: Embroidery by hand
Tenabo, Hecelchakan, and Calkini: Colorful machine embroidery (huipiles, dresses, and blouses)
Tepakan: Ceramic pottery
For those who love golf and think they want to live in a private, all inclusive community, Champoton, Campeche has the answer. The Campeche Playa Golf, Marina & Spa Resort has everything any retiree could want, including health care. Beachfront Lots available from Pelicano Beach and Lagoon " www.pelicanobeachandlagoon.com " for as little as $45,000 USD. For those who love sport fishing, the Bay of Campeche and surrounding mangroves are filled with 5 to 20 pound baby tarpon, as well as many other types of fish and seafood. Whether the investor wants to open a fishing tour business or use existing fishing tours as activities associated with the area, tarpon fishing is one of the hottest sport fishing activities around. Watch the tarpon fishing video featuring Jack Nicklaus.
Overall, there is something for everyone in the State of Campeche. Retirees will find more than enough activities to keep them busy for a lifetime and investors will find the road ahead significantly simplified by the State Government. Since Spanish and European investors are flocking to Campeche, Europeans have already discovered Campeche and have been buying home and land there in mass, now is the time for North Americans to take a second look at this wonderland on the edge of the Mayan world.
Monday, July 27, 2009
Tulum Land Ready For Airport
Plans for the new Riviera Maya international airport in Tulum are awaiting final approval from the Mexican Civil Aviation Authority, reported local newspaper, El Periodico de Quintana Roo.
Gina Patricia Ortíz Blanco, head of the Institute for Government Property (IPAE) in Quintana Roo, told the paper that ownership of 990 acres (400 hectares) of Tulum land has already been transferred to authorities.
She said that the zone is securely fenced off and ready for work on the airport to begin.
Once the aviation authority approves the plans the Mexican Government’s Transport and Communications Secretary will inspect the land and the bidding process for construction can begin, possibly within 30 days.
The first phase of the project is estimated to be worth around $50 million and local reports suggest the new airport will have a capacity for around 5 million passengers per year.
Local politicians have described the project as an “economic trigger” that will turn Tulum into one of the most prosperous areas in the Mexican Caribbean.
Tulum became an independent municipality last year and new infrastructure projects such as the airport and major highways improvements have been confirmed, causing land prices to rise rapidly.
The area offers some of the best investment opportunities to be found in Mexico - now is a great time to buy Tulum real estate.
Gina Patricia Ortíz Blanco, head of the Institute for Government Property (IPAE) in Quintana Roo, told the paper that ownership of 990 acres (400 hectares) of Tulum land has already been transferred to authorities.
She said that the zone is securely fenced off and ready for work on the airport to begin.
Once the aviation authority approves the plans the Mexican Government’s Transport and Communications Secretary will inspect the land and the bidding process for construction can begin, possibly within 30 days.
The first phase of the project is estimated to be worth around $50 million and local reports suggest the new airport will have a capacity for around 5 million passengers per year.
Local politicians have described the project as an “economic trigger” that will turn Tulum into one of the most prosperous areas in the Mexican Caribbean.
Tulum became an independent municipality last year and new infrastructure projects such as the airport and major highways improvements have been confirmed, causing land prices to rise rapidly.
The area offers some of the best investment opportunities to be found in Mexico - now is a great time to buy Tulum real estate.
Friday, July 24, 2009
Getting a Mexican Visa
As you know by now, Mexico topped the poll in this year’s Global Retirement Index. One reason for this is that there aren’t any stringent requirements to get a visa in Mexico.
In Mexico, tourist visas are valid for 180 days (compared with the much shorter 90-day visa in Panama), and if you wish to apply for a resident visa, it’s a straightforward and inexpensive process.
Typically, to obtain a non-immigrant visa that can be renewed indefinitely (an FM3 or Forma Migratoria 3), you need to show that you have enough money to support yourself while you are here. It is commonly considered to be about $1,000 per month for the applicant and $500 per month for each dependent. This amount is halved if you buy real estate in Mexico.
This is all completely arbitrary, though, depending on the immigration office or official you deal with. Proof of funds and/or income can usually be satisfied with bank account statements, proof of investment income, credit cards, or a combination of these. And your investment income can be held in any recognized financial institution anywhere in the world…it doesn’t have to be in Mexico.
The FM3 visa is for people who don’t necessarily want to make their permanent home in Mexico but do want to reside here full- or part-time. If you intend to live in Mexico permanently or are on a path to Mexican citizenship you’ll need a FM2 visa. Neither of theses visas have terribly strict or complicated requirements.
And if you want to apply for Mexican citizenship? That’s pretty straightforward, too. You will first need to hold an FM2 visa for five years. You don’t have to surrender your natural citizenship to be granted full resident status in Mexico or to become a naturalized Mexican citizen. Full resident status entitles you to all rights and benefits of a Mexican national, except one. You can live, work, claim state benefits, and are subject to relevant taxes, but you can’t vote in Mexican elections.
Obviously I am simplifying things here…you’ll need to determine which visa path is right for you and then make sure you can accommodate the requirements of the immigration office you work with. In Mexico this really is a straightforward process, but if you want to make it even easier, hire an immigration attorney to help you.
In Mexico, tourist visas are valid for 180 days (compared with the much shorter 90-day visa in Panama), and if you wish to apply for a resident visa, it’s a straightforward and inexpensive process.
Typically, to obtain a non-immigrant visa that can be renewed indefinitely (an FM3 or Forma Migratoria 3), you need to show that you have enough money to support yourself while you are here. It is commonly considered to be about $1,000 per month for the applicant and $500 per month for each dependent. This amount is halved if you buy real estate in Mexico.
This is all completely arbitrary, though, depending on the immigration office or official you deal with. Proof of funds and/or income can usually be satisfied with bank account statements, proof of investment income, credit cards, or a combination of these. And your investment income can be held in any recognized financial institution anywhere in the world…it doesn’t have to be in Mexico.
The FM3 visa is for people who don’t necessarily want to make their permanent home in Mexico but do want to reside here full- or part-time. If you intend to live in Mexico permanently or are on a path to Mexican citizenship you’ll need a FM2 visa. Neither of theses visas have terribly strict or complicated requirements.
And if you want to apply for Mexican citizenship? That’s pretty straightforward, too. You will first need to hold an FM2 visa for five years. You don’t have to surrender your natural citizenship to be granted full resident status in Mexico or to become a naturalized Mexican citizen. Full resident status entitles you to all rights and benefits of a Mexican national, except one. You can live, work, claim state benefits, and are subject to relevant taxes, but you can’t vote in Mexican elections.
Obviously I am simplifying things here…you’ll need to determine which visa path is right for you and then make sure you can accommodate the requirements of the immigration office you work with. In Mexico this really is a straightforward process, but if you want to make it even easier, hire an immigration attorney to help you.
Thursday, July 23, 2009
Real estate opportunities in Mexico
Real estate opportunities in Mexico! How to prosper & avoid the coming storm and prolonged economic stagnation in the USA.
First: A reality check on Mexico
Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media – over the last year – has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.
Let’s look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. “Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians,” Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This “business” is globally now competing with drugs in terms of profits.
It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Tijuana, Nogales, and Juarez. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine’s Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.
Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these “businessmen” are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let’s look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories.
FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico. The concentration of kidnappings has been in Mexico City, among the very rich and the three aforementioned border Cities. With the exception of Mexico City, the number one city for kidnappings among NAFTA countries is Phoenix, Arizona with over 359 in 2008. The Phoenix Police estimate that twice that number of kidnappings goes unreported, because like Mexico 99% of these crimes were directly related to drug and human traffic. Phoenix, unfortunately, is geographically profitable transshipping location. Mexicans, just like 99% of U.S. Citizens during prohibition, go about their daily lives all over the country. They get up, go to school or work and live their lives untouched by the border town violence.
These same protectionist news sources have misled the public as to the real danger from the swine flu in Mexico and temporary devastated the tourism business. As of May 27 2009 there have been 87 deaths in Mexico from the swine flu. During those same five months there have been 36 murdered school children in Chicago. By their logic, if 87 deaths from the swine flu in Mexico warrants canceling flights and cruise ships to Mexico, then close all roads and highways in the USA because of record 43,359 automobile related deaths in the USA in 2008.
What is just getting underway is what many are calling the “Largest southern migration to Mexico of people and real estate assets since the Civil War” A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000. Do the math on 6,000,000 people buying a $300,000 house or condo and you will understand why the U.S. Government is trying to tax this massive shift of money to Mexico through H.R. 3056. The U.S. government calls this “The Tax Collection Responsibility Act of 2007”. Those who will have to pay it are calling this the EXIT TAX.
Mexico: A better economic choice than China
Another large exodus from the U.S.A is high paying skilled jobs. The job shift in automobile sector, both car and parts manufacturing, is already known by most investors. In the last few months as John Deere and Caterpillar have been laying off thousands of workers in the U.S.A., and hiring equal numbers in Mexico. The most recent industry that is making the shift is the aerospace manufacturers. In the city of Zacatecas there is currently a $210 million aerospace facility being built. With the 11 U.S. companies moving there, it is estimated to provide over 200,000 new high paying jobs in the coming years. One of the main factors for the shift in job south to Mexico instead of China is realistic analysis of total production, labor and delivery costs. While the labor costs in China are 40% less on average, the overall transportation costs and inherent risks of a long distance supply chain, and quality control issues, gives Mexico a distinct financial advantage.
Mexico’s real economic future
Mexico has avoided completely the subprime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The very recent introduction of residential financing has Mexico in a unique position of having over 90% of current homeowners owning their house outright. U.S. banks are competing for the Mexican, Canadian and American cross border loan business. It is and will continue to be a very safe and very profitable business. These same banks that were loaning in a reckless manner have learned their lesson and are loaning here the old fashioned way. They require a minimum of a 680 credit score, 30% down payment, and verifiable income that can support the loan. In most areas of Mexico where Baby Boomers are moving to, with the exception of Puerto Penasco (which did not have a national and international base of buyers), there is no real estate bubble. The higher end markets ($2-20 million) in many of these destinations are going through a modest correction. The Baby Boomers market here is between $200,000 and $600,000. With the continuing demand inside the Bay of Banderas, that price point, in the coming years, will disappear. This is the reason the Mexican government is spending billions of dollars on more infrastructure north along the coast all the way up to Mazatlan.
The other major area where America has become overpriced is in the field of health care. This massive shift of revenues is estimated to add 5-7% to Mexico’s GDP. The name for this “business” is Medical Tourism. The two biggest competitors for Mexico were Thailand and India. Thailand and India’s biggest drawback is geography. Also recent events, Thailand’s inability to keep a government in place and the recent terrorist attack in Mumbai, have helped Mexico capture close to half of this growth industry. In Mexico today there are over 56 world class hospitals being built to keep up with this business.
Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans have never heard of Carlos Slim until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Mexico’s resilience is to be admired. When the U.S. Federal Reserve granted a $30 billion loan to each of the following countries Mexico, Singapore, South Korea, and Brazil, Mexico reinvested the money in Treasury bonds in an account in New York City.
According to oil traders, Mexico’s Pemex wisely as the price of oil shot to $147 a barrel put in place an investment strategy that hinged on oil trading in the range of $38-$60 a barrel. Since the beginning of 2009 Mexico has been collecting revenues on hedged positions that give them $90-$110 per barrel today. Mexico’s recent and under reported oil discovery in the Palaeo Channels of Chicontepec has placed it third in the world for oil reserves, right behind Canada and Saudi Arabia.
The following is a quote from Rosalind Wilson, President of the Canadian Chamber of Commerce on March 19, 2009. “The strength of the Mexican economic system makes the country a favorite destination for Canadian investment”.
OPPORTUNITIES: WHY PUERTO VALLARTA & THE RIVIERA NAYARIT?
The answer is simple and old fashioned: SUPPLY AND DEMAND.
The area of Puerto Vallarta/Riviera Nayarit inside the Bay of Banderas is an investor’s dream. This area has the comprehensive infrastructure in place, world class hospitals and dental care, natural investment protection from the Sierra Madre Mountains, endless future water supply, low to nonexistent crime, international airport, and limited supply inside the Bay, first class private bilingual schools and higher than average appreciation potential. Like many areas in Mexico there is large demand for full and part time retirement living and a lot of construction underway to meet this demand. Pre construction of course is where the best bargains are available.
I would offer a word of caution for investors in Mexico. Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The demand for full and part time living by American and Canadian Baby Boomers is evident throughout the country. The top two choice locations are ocean front, and ocean view. The third overall choice, which is less expensive, is inland in one of the many beautiful colonial towns or small cities.
Mexico, with the world’s 13th largest GDP, is no longer a “Third World Country”, but rather a fast growing, economically secure state, as the most recent five-year history of its financial markets when compared to the U.S.A.’s financial markets suggests.
DOW JONES AVERAGES MAY 2004 10,200 MAY 2009 8,200 20% LOSS IN 5 YEARS
MEXICAN BOLSA MAY 2004 10,000 MAY 2009 23,000 130% GAIN IN 5 YEARS
I am glad to share all of my research with investors.
Charles Simpson
info@mexinvestnow@gmail.com
First: A reality check on Mexico
Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media – over the last year – has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.
Let’s look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. “Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians,” Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This “business” is globally now competing with drugs in terms of profits.
It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Tijuana, Nogales, and Juarez. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine’s Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.
Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these “businessmen” are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let’s look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories.
FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico. The concentration of kidnappings has been in Mexico City, among the very rich and the three aforementioned border Cities. With the exception of Mexico City, the number one city for kidnappings among NAFTA countries is Phoenix, Arizona with over 359 in 2008. The Phoenix Police estimate that twice that number of kidnappings goes unreported, because like Mexico 99% of these crimes were directly related to drug and human traffic. Phoenix, unfortunately, is geographically profitable transshipping location. Mexicans, just like 99% of U.S. Citizens during prohibition, go about their daily lives all over the country. They get up, go to school or work and live their lives untouched by the border town violence.
These same protectionist news sources have misled the public as to the real danger from the swine flu in Mexico and temporary devastated the tourism business. As of May 27 2009 there have been 87 deaths in Mexico from the swine flu. During those same five months there have been 36 murdered school children in Chicago. By their logic, if 87 deaths from the swine flu in Mexico warrants canceling flights and cruise ships to Mexico, then close all roads and highways in the USA because of record 43,359 automobile related deaths in the USA in 2008.
What is just getting underway is what many are calling the “Largest southern migration to Mexico of people and real estate assets since the Civil War” A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000. Do the math on 6,000,000 people buying a $300,000 house or condo and you will understand why the U.S. Government is trying to tax this massive shift of money to Mexico through H.R. 3056. The U.S. government calls this “The Tax Collection Responsibility Act of 2007”. Those who will have to pay it are calling this the EXIT TAX.
Mexico: A better economic choice than China
Another large exodus from the U.S.A is high paying skilled jobs. The job shift in automobile sector, both car and parts manufacturing, is already known by most investors. In the last few months as John Deere and Caterpillar have been laying off thousands of workers in the U.S.A., and hiring equal numbers in Mexico. The most recent industry that is making the shift is the aerospace manufacturers. In the city of Zacatecas there is currently a $210 million aerospace facility being built. With the 11 U.S. companies moving there, it is estimated to provide over 200,000 new high paying jobs in the coming years. One of the main factors for the shift in job south to Mexico instead of China is realistic analysis of total production, labor and delivery costs. While the labor costs in China are 40% less on average, the overall transportation costs and inherent risks of a long distance supply chain, and quality control issues, gives Mexico a distinct financial advantage.
Mexico’s real economic future
Mexico has avoided completely the subprime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The very recent introduction of residential financing has Mexico in a unique position of having over 90% of current homeowners owning their house outright. U.S. banks are competing for the Mexican, Canadian and American cross border loan business. It is and will continue to be a very safe and very profitable business. These same banks that were loaning in a reckless manner have learned their lesson and are loaning here the old fashioned way. They require a minimum of a 680 credit score, 30% down payment, and verifiable income that can support the loan. In most areas of Mexico where Baby Boomers are moving to, with the exception of Puerto Penasco (which did not have a national and international base of buyers), there is no real estate bubble. The higher end markets ($2-20 million) in many of these destinations are going through a modest correction. The Baby Boomers market here is between $200,000 and $600,000. With the continuing demand inside the Bay of Banderas, that price point, in the coming years, will disappear. This is the reason the Mexican government is spending billions of dollars on more infrastructure north along the coast all the way up to Mazatlan.
The other major area where America has become overpriced is in the field of health care. This massive shift of revenues is estimated to add 5-7% to Mexico’s GDP. The name for this “business” is Medical Tourism. The two biggest competitors for Mexico were Thailand and India. Thailand and India’s biggest drawback is geography. Also recent events, Thailand’s inability to keep a government in place and the recent terrorist attack in Mumbai, have helped Mexico capture close to half of this growth industry. In Mexico today there are over 56 world class hospitals being built to keep up with this business.
Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans have never heard of Carlos Slim until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Mexico’s resilience is to be admired. When the U.S. Federal Reserve granted a $30 billion loan to each of the following countries Mexico, Singapore, South Korea, and Brazil, Mexico reinvested the money in Treasury bonds in an account in New York City.
According to oil traders, Mexico’s Pemex wisely as the price of oil shot to $147 a barrel put in place an investment strategy that hinged on oil trading in the range of $38-$60 a barrel. Since the beginning of 2009 Mexico has been collecting revenues on hedged positions that give them $90-$110 per barrel today. Mexico’s recent and under reported oil discovery in the Palaeo Channels of Chicontepec has placed it third in the world for oil reserves, right behind Canada and Saudi Arabia.
The following is a quote from Rosalind Wilson, President of the Canadian Chamber of Commerce on March 19, 2009. “The strength of the Mexican economic system makes the country a favorite destination for Canadian investment”.
OPPORTUNITIES: WHY PUERTO VALLARTA & THE RIVIERA NAYARIT?
The answer is simple and old fashioned: SUPPLY AND DEMAND.
The area of Puerto Vallarta/Riviera Nayarit inside the Bay of Banderas is an investor’s dream. This area has the comprehensive infrastructure in place, world class hospitals and dental care, natural investment protection from the Sierra Madre Mountains, endless future water supply, low to nonexistent crime, international airport, and limited supply inside the Bay, first class private bilingual schools and higher than average appreciation potential. Like many areas in Mexico there is large demand for full and part time retirement living and a lot of construction underway to meet this demand. Pre construction of course is where the best bargains are available.
I would offer a word of caution for investors in Mexico. Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The demand for full and part time living by American and Canadian Baby Boomers is evident throughout the country. The top two choice locations are ocean front, and ocean view. The third overall choice, which is less expensive, is inland in one of the many beautiful colonial towns or small cities.
Mexico, with the world’s 13th largest GDP, is no longer a “Third World Country”, but rather a fast growing, economically secure state, as the most recent five-year history of its financial markets when compared to the U.S.A.’s financial markets suggests.
DOW JONES AVERAGES MAY 2004 10,200 MAY 2009 8,200 20% LOSS IN 5 YEARS
MEXICAN BOLSA MAY 2004 10,000 MAY 2009 23,000 130% GAIN IN 5 YEARS
I am glad to share all of my research with investors.
Charles Simpson
info@mexinvestnow@gmail.com
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