Medicare lobby group urges expats to tell representatives their stories
Written by GR Staff
Saturday, 20 June 2009
UNITED STATES - A non-profit organization dedicated to bringing Medicare coverage to eligible American seniors living in Mexico is urging expatriates to write to their elected representatives and senators with their personal health-care stories.
“They have constituents living in Mexico whose votes count,” Paul Crist, founder and presdient of Americans for Medicare in Mexico (AMMAC), points out in a recent newsletter.
Senators and congressmen need to hear from their constituents “to understand this is an important issue,” Crist says.
Crist’s newsletter and AMMAC’s website contains a sample letter to cut and paste, as well as a list of congressional offices that the organization has already visited, along with the email of a staff person who is aware of the Medicare issue. Links to a full list of elected officials is also available on the site, www.MedicareinMexico.org.
AMMAC is calling for a limited-scale Medicare experimental project in Mexico and believes it will be successful for three main reasons:
1. Medicare savings will result due to significantly lower health care costs in Mexico.
2. There will be improved health outcomes for seniors in Mexico, who are likely to access care earlier when symptoms arise and have more frequent preventative examinations and care.
3. The project will stimulate and enhance improvements already underway in certain sectors of the Mexican health provider sector.
Saturday, June 20, 2009
Friday, June 19, 2009
Mexico Acquisitions & Development Group
We search for Investment Opportunities for You
We don't sell Real Estate...
We search for
Investment Opportunities in Mexico
for YOU!!!
We offer researched real estate investment opportunities in Mexico.
Investments that range from as low as $20,000 up to $300 million.
Our territory of concentration is in the Yucatan Peninsula which includes the booming state of Quintana Roo (Cancun, Playa del Carmen, Cozumel, Tulum, Costa Maya, Lake Bacalar, Chetumal)
Our options include:
oceanfront properties
investments (big beautiful properties for development)
pre-constructions projects (condos / commercial centers)
community developments
Hotels
Resorts
WHY WOULD YOU, THE FOREIGN INVESTOR, USE OUR SERVICES?
1. We are on your side, the buyer / the investor….
2. In Mexico, you the foreigner need to be fully represented and protected:
Negotiate on your behalf
Knowledge of the market, knowledge of trends…history and projections
Foreign Investment laws in Mexico and how it applies to you
Tax reduction strategies
Ensure clear titles and contracts that protect the foreign investor
Zoning issues and history of properties
Ensure the prices are competitive and not over priced compared to local market rates
3. We get paid by you the investor and not by the owner of the real estate. Our incentives are to protect our client.
4. We can be contracted to research particular markets, history, present, and projections.
5. We notify and keep our clients updated on new local developments and future business opportunities.
1.
Playa del Carmen... investor friendly and booming market
2.
It is projected that a rising inventory of new homes in the American market, along with a continued increase in the Federal Interest Rates during the spring of 2006, will suppress overall real estate appreciation throughout the USA.
Speculative Real Estate activity in Florida, Nevada, California will flatten and most likely decrease as investors search for other markets to maintain their double digit returns.
Business Week on the other hand has named Mexico as one of 4 counrtries with highest growth potential for the year 2006 “investor friendly, fastest growing and emerging markets” .
Learn how to invest in Mexico and prosper
The Riviera Maya, located on the Caribbean coast of Mexico is identified as the fastest growing region of Latin America. The current population is expected to quadruple in the next 6 years. The astonishing factor is that 35% of this increase is projected to come from Mexican Foreign investors and retirees!!! (USA / Canada / U.K. / Spain) Hotel and condo occupancy rates continue to be at an all time high, averaging over 80% annual rates. There is currently an 11,000 room deficiency in Playa Del Carmen, making it the ideal location for the real estate investments, both short term and long term
Learn About the local Real Estate Market in Mexico
Playa del Carmen Real Estate
I invite you to learn more on these investment options. Research the data, visit and see for yourself why the Mexican Riviera, Playa del Carmen, Tulum areas are BULL markets for the next 5 years.
LEARN MORE TODAY
Caribbean ocean front properties are in LIMITED QUANTITIES
Would you like to learn more?agavalar@yahoo.com
We don't sell Real Estate...
We search for
Investment Opportunities in Mexico
for YOU!!!
We offer researched real estate investment opportunities in Mexico.
Investments that range from as low as $20,000 up to $300 million.
Our territory of concentration is in the Yucatan Peninsula which includes the booming state of Quintana Roo (Cancun, Playa del Carmen, Cozumel, Tulum, Costa Maya, Lake Bacalar, Chetumal)
Our options include:
oceanfront properties
investments (big beautiful properties for development)
pre-constructions projects (condos / commercial centers)
community developments
Hotels
Resorts
WHY WOULD YOU, THE FOREIGN INVESTOR, USE OUR SERVICES?
1. We are on your side, the buyer / the investor….
2. In Mexico, you the foreigner need to be fully represented and protected:
Negotiate on your behalf
Knowledge of the market, knowledge of trends…history and projections
Foreign Investment laws in Mexico and how it applies to you
Tax reduction strategies
Ensure clear titles and contracts that protect the foreign investor
Zoning issues and history of properties
Ensure the prices are competitive and not over priced compared to local market rates
3. We get paid by you the investor and not by the owner of the real estate. Our incentives are to protect our client.
4. We can be contracted to research particular markets, history, present, and projections.
5. We notify and keep our clients updated on new local developments and future business opportunities.
1.
Playa del Carmen... investor friendly and booming market
2.
It is projected that a rising inventory of new homes in the American market, along with a continued increase in the Federal Interest Rates during the spring of 2006, will suppress overall real estate appreciation throughout the USA.
Speculative Real Estate activity in Florida, Nevada, California will flatten and most likely decrease as investors search for other markets to maintain their double digit returns.
Business Week on the other hand has named Mexico as one of 4 counrtries with highest growth potential for the year 2006 “investor friendly, fastest growing and emerging markets” .
Learn how to invest in Mexico and prosper
The Riviera Maya, located on the Caribbean coast of Mexico is identified as the fastest growing region of Latin America. The current population is expected to quadruple in the next 6 years. The astonishing factor is that 35% of this increase is projected to come from Mexican Foreign investors and retirees!!! (USA / Canada / U.K. / Spain) Hotel and condo occupancy rates continue to be at an all time high, averaging over 80% annual rates. There is currently an 11,000 room deficiency in Playa Del Carmen, making it the ideal location for the real estate investments, both short term and long term
Learn About the local Real Estate Market in Mexico
Playa del Carmen Real Estate
I invite you to learn more on these investment options. Research the data, visit and see for yourself why the Mexican Riviera, Playa del Carmen, Tulum areas are BULL markets for the next 5 years.
LEARN MORE TODAY
Caribbean ocean front properties are in LIMITED QUANTITIES
Would you like to learn more?agavalar@yahoo.com
Wednesday, June 17, 2009
Procter & Gamble to Invest $250 million in Mexico
Procter & Gamble Mexico has committed $250 million U.S. dollars to the construction and development of their new production center in Irapuato, Guanajuato. The center will produce Gillette razors and razor blades, and will create 1,700 direct jobs, and 700 indirect jobs. This will make the new Procter & Gamble Production Center the largest in its field in the world. This brings the number of plants Procter & Gamble has in Mexico to nine, several of which are in Guanajuato.
In keeping with its corporate identity of being a good citizen in Mexico, the new Procter & Gamble Production Center will be able to boast of being certified as a green building. The water it uses will be used efficiently and, by collecting rainwater and treating waste water, it will not discharge any industrial wastes into the sewer system. In addition, the lighting system will use as much solar energy as possible. Worldwide, in 2008, Procter & Gamble registered a total revenue of 10.6 billion dollars.
The jobs that are being offered at the new Procter & Gamble Production Center are good jobs that are competitive with parallel positions around the world.. Most of the jobs that are currently posted are in engineering and for manufacturing supervisors. Realizing that Mexico now has a surplus of young college graduates in engineering, they are offering entry level engineering jobs for students who are graduating early and/or who have experience in the manufacturing industry. The company pays benefits and promotes from within, which bodes well for the development of employee loyalty and long-term careers with the company.
For those who are interested in investing in Mexico, Guanajuato is an excellent investment destination. It is only about 150 miles north of Mexico City and is home to former President Vicente Fox, who is also a former governor of the state. During his tenure, he traveled the world and brought such industrial giants as General Motors, Procter & Gamble, Celanese, Reebok and Nestle to his state. He also opened state offices in Hong Kong, New York, Los Angeles, Dallas and Chicago. He provided matching funds to help returning immigrants to set up their own businesses and forged a joint program with Microsoft to train Guanajuato’s university students in software development. These activities helped to set the stage for multiple Procter & Gamble plants in Guanajuato and an ever increasing standard of living for the people who live there. This has created a self-perpetuating environment that is conducive to profits in business, industry and real estate, which is why investors continue to flock to Guanajuato in droves
In keeping with its corporate identity of being a good citizen in Mexico, the new Procter & Gamble Production Center will be able to boast of being certified as a green building. The water it uses will be used efficiently and, by collecting rainwater and treating waste water, it will not discharge any industrial wastes into the sewer system. In addition, the lighting system will use as much solar energy as possible. Worldwide, in 2008, Procter & Gamble registered a total revenue of 10.6 billion dollars.
The jobs that are being offered at the new Procter & Gamble Production Center are good jobs that are competitive with parallel positions around the world.. Most of the jobs that are currently posted are in engineering and for manufacturing supervisors. Realizing that Mexico now has a surplus of young college graduates in engineering, they are offering entry level engineering jobs for students who are graduating early and/or who have experience in the manufacturing industry. The company pays benefits and promotes from within, which bodes well for the development of employee loyalty and long-term careers with the company.
For those who are interested in investing in Mexico, Guanajuato is an excellent investment destination. It is only about 150 miles north of Mexico City and is home to former President Vicente Fox, who is also a former governor of the state. During his tenure, he traveled the world and brought such industrial giants as General Motors, Procter & Gamble, Celanese, Reebok and Nestle to his state. He also opened state offices in Hong Kong, New York, Los Angeles, Dallas and Chicago. He provided matching funds to help returning immigrants to set up their own businesses and forged a joint program with Microsoft to train Guanajuato’s university students in software development. These activities helped to set the stage for multiple Procter & Gamble plants in Guanajuato and an ever increasing standard of living for the people who live there. This has created a self-perpetuating environment that is conducive to profits in business, industry and real estate, which is why investors continue to flock to Guanajuato in droves
Invest In Mexico Using Your IRA
The Self Directed IRA Benefits:
Very few IRA custodians permit direct ownership of real estate or other non-traditional investments in an IRA, so indirect investment via the iTrust is usually the only choice.
When an iTrust sells real estate or other investments, the capital gains are deferred through the IRA, like any other IRA investment. The headaches of 1031 exchanges are never necessary.
Ownership of the property in an iTrust allows you, as investment manager, to have direct, hands-on control of and investment decisions over iTrust assets, including control of the checkbook. Custodian involvement and hassles are minimized, regardless of whether the investments are in securities, real estate or other assets.
An iTrust can use its IRA funding as a down payment for a real estate purchase, with the iTrust financing or borrowing the balance. But an IRA usually cannot directly participate in such a financing arrangement because of the custodian.
Since you control and handle all iTrust transactions, the custodian for the self directed IRA can be paid an inexpensive, flat fee, typically around $200 per year
Litigation threats which accompany investments such as real estate are substantially reduced. This is done by isolating the investment inside the iTrust, and away from the rest of your IRA funds and estate.
Continues to provide deferral of income and gains inside the IRA.
Strategies for Using the iTrust
Purchase real estate
Loan to others
Note: There are some restrictions and rules for this type of transaction
Buying or starting a business
Note: There are some restrictions and rules for this type of transaction
Use purchase options on real estate
Flip properties
What Your Plan Comes With
Setup of Trust
Setup and operating guide
Banking authorizations for checking account
Handling your rollover to our sister co. American Estate & Trust, the IRA custodian
Unlimited consulting
Why an iTrust vs. LLC
iTrust does not have state filing fees*
iTrust avoids state franchise taxes*
iTrust is quicker to form and set up
No name reservation issues
Lower total cost of ownership versus a LLC
Very few IRA custodians permit direct ownership of real estate or other non-traditional investments in an IRA, so indirect investment via the iTrust is usually the only choice.
When an iTrust sells real estate or other investments, the capital gains are deferred through the IRA, like any other IRA investment. The headaches of 1031 exchanges are never necessary.
Ownership of the property in an iTrust allows you, as investment manager, to have direct, hands-on control of and investment decisions over iTrust assets, including control of the checkbook. Custodian involvement and hassles are minimized, regardless of whether the investments are in securities, real estate or other assets.
An iTrust can use its IRA funding as a down payment for a real estate purchase, with the iTrust financing or borrowing the balance. But an IRA usually cannot directly participate in such a financing arrangement because of the custodian.
Since you control and handle all iTrust transactions, the custodian for the self directed IRA can be paid an inexpensive, flat fee, typically around $200 per year
Litigation threats which accompany investments such as real estate are substantially reduced. This is done by isolating the investment inside the iTrust, and away from the rest of your IRA funds and estate.
Continues to provide deferral of income and gains inside the IRA.
Strategies for Using the iTrust
Purchase real estate
Loan to others
Note: There are some restrictions and rules for this type of transaction
Buying or starting a business
Note: There are some restrictions and rules for this type of transaction
Use purchase options on real estate
Flip properties
What Your Plan Comes With
Setup of Trust
Setup and operating guide
Banking authorizations for checking account
Handling your rollover to our sister co. American Estate & Trust, the IRA custodian
Unlimited consulting
Why an iTrust vs. LLC
iTrust does not have state filing fees*
iTrust avoids state franchise taxes*
iTrust is quicker to form and set up
No name reservation issues
Lower total cost of ownership versus a LLC
Tulum International Airport
In March 2009, the state government of Quintana Roo along with the Federal Government offices of Secretary of Communication and Transport (SCT) had programmed the announcement for the bidding process of a new international airport in Tulum to be constructed and operated in the world popular tourist destination of Riviera Maya. Such a project is expected to have a strong effect upon the Tulum real estate market along with surrounding regional markets including the Playa del Carmen real estate activities.
Riviera Maya is located south of Cancun and includes the cities of Puerto Morelos, Playa del Carmen, Tulum, and Felipe Carrillo. Tulum beachfront properties are some of the most sought after real estate not only for investors, but for vacationers. Occupation rates of this entire region have maintained strong figures for the first quarter of 2009. February closed with 90 percent rates in Riviera Maya, while Cancun closed with 89 percent announced by the state tourist office. Both figures closed approximately two points above the results from 2008, in spite of the fact that both destinations had an increase of newly constructed hotel room inventories by more than six thousand units. In anticipation of the higher tourist volumes projected over the next 10 years, the new Mexico airportis being introduced to support the stressed capacity anticipated at the Cancun International Airport. With the construction and operation of the new Tulum airport along with the increased tourist visitors, these factors will stimulate a strong growth of tourist dollar revenues and also the demand for the Tulum homesdestination industries such as those being witnessed in the Playa del Carmen real estate market and the growing Tulum real estate market.
In January of 2009, IPAE released statements to the Mexican news station Enfoque Radio, confirming that all documentation transferring more than 800 hectares to the federal government for the purpose of the Tulum Airport had been executed. The state government plans to maintain control and administration of the properties until the federal government announces the winner for the construction of the new airport. In February of 2009, Gina Patricia Ortiz Blanco, General Director of the Instituto de Patrimonio Inmobiliario del Estado (IPAE), had released to the public the that they anticipated the announcement from the SCT to occur in the first several weeks of March. She also stated that the location of the airport would be approximately 16 kilometers from the coast, in the new municipality of Tulum.
In the first week of March, Luis Téllez Kuenzler, delivered an unexpected resignation of his post as the federal Secretary of Communications and Transport, and in doing so, left several projects awaiting approvals such as the licitations on various infrastructure projects including the construction of new sea ports in Lazaro Cardenas, Tuxpan, Veracruz, and the licitation for the Tulum airport. Juan Molinar Horcaditas is the new secretary taking on these pending responsibilities of this federal office and of the coordination of the pending projects awaiting resolutions.
In June of 2009, after a battered season of extremely low occupancy rates from the swine flu virus scare, the state government has been placing close attention on infrastructure projects throughout the state. On several speeches and meetings, the governor of the state of Quintana Roo has asked to fast track the Airport project along with a project for beach recuperation in Cancun, Playa del Carmen and Cozumel. Such projects will create some economic activity during the summer and fall months until the next high season for tourism in the winter and spring of 2010.
Riviera Maya is located south of Cancun and includes the cities of Puerto Morelos, Playa del Carmen, Tulum, and Felipe Carrillo. Tulum beachfront properties are some of the most sought after real estate not only for investors, but for vacationers. Occupation rates of this entire region have maintained strong figures for the first quarter of 2009. February closed with 90 percent rates in Riviera Maya, while Cancun closed with 89 percent announced by the state tourist office. Both figures closed approximately two points above the results from 2008, in spite of the fact that both destinations had an increase of newly constructed hotel room inventories by more than six thousand units. In anticipation of the higher tourist volumes projected over the next 10 years, the new Mexico airportis being introduced to support the stressed capacity anticipated at the Cancun International Airport. With the construction and operation of the new Tulum airport along with the increased tourist visitors, these factors will stimulate a strong growth of tourist dollar revenues and also the demand for the Tulum homesdestination industries such as those being witnessed in the Playa del Carmen real estate market and the growing Tulum real estate market.
In January of 2009, IPAE released statements to the Mexican news station Enfoque Radio, confirming that all documentation transferring more than 800 hectares to the federal government for the purpose of the Tulum Airport had been executed. The state government plans to maintain control and administration of the properties until the federal government announces the winner for the construction of the new airport. In February of 2009, Gina Patricia Ortiz Blanco, General Director of the Instituto de Patrimonio Inmobiliario del Estado (IPAE), had released to the public the that they anticipated the announcement from the SCT to occur in the first several weeks of March. She also stated that the location of the airport would be approximately 16 kilometers from the coast, in the new municipality of Tulum.
In the first week of March, Luis Téllez Kuenzler, delivered an unexpected resignation of his post as the federal Secretary of Communications and Transport, and in doing so, left several projects awaiting approvals such as the licitations on various infrastructure projects including the construction of new sea ports in Lazaro Cardenas, Tuxpan, Veracruz, and the licitation for the Tulum airport. Juan Molinar Horcaditas is the new secretary taking on these pending responsibilities of this federal office and of the coordination of the pending projects awaiting resolutions.
In June of 2009, after a battered season of extremely low occupancy rates from the swine flu virus scare, the state government has been placing close attention on infrastructure projects throughout the state. On several speeches and meetings, the governor of the state of Quintana Roo has asked to fast track the Airport project along with a project for beach recuperation in Cancun, Playa del Carmen and Cozumel. Such projects will create some economic activity during the summer and fall months until the next high season for tourism in the winter and spring of 2010.
Saturday, June 13, 2009
Mexico Real Estate resorts
A Look at the Hottest Current Topics in the Mexico Resort Real Estate Market
Matt Miller, President of Conficasa Mortgage International, has offered this good information to Mexico Premiere about the current state of Mexico real estate and financing.
As the Mexico resort real estate market continues to gain popularity among North Americans, one common theme exists; an increasing demand for insightful and relevant information among the entire Mexican resort real estate community, including developers, realtors, owners, resellers and potential buyers. This is especially true in light of today’s more difficult economic times. Therefore, it seemed worthwhile to highlight the hottest current topics in the industry as discussed at the fourth annual Mexico Resort Development Conference in Carlsbad, California held in December 2008.
This year’s conference was once again well attended among the most knowledgeable industry players, spanning a broad range of function, including debt and equity investors, banking/lending institutions, developers, land planners, designers, architects, consultants, real estate executives and professional service firms, all of who possess significant and direct experience throughout all of Mexico’s resort areas.
This year’s conference focused on the changing global economic landscape and its direct effect on Mexico’s resort developments and buyers.
The Current State of the Market Will Drive Positive Change
It was made clear that the current global economic downturn will have several effects on the Mexico resort real estate market. To understand the downturn and its effects, one must first understand the upturn.
The historical upturn (from approximately 2000 to 2005) is simple. Mexico was and continues to be an extremely attractive destination for second and retirement home ownership given its favorable attributes and proximity to the U.S. and Canada. As U.S. citizens continued to discover Mexico, they were able to purchase beachfront and ocean view properties at a fraction of the cost of similar real estate in the U.S. and also enjoyed 40% to 100% returns on equity, as compared to 15% to 35% in the U.S. This, coupled with buoyed U.S. equity markets and cheap and available credit, made it relatively easy for developers to sell to U.S. buyers who purchased the majority of the real estate in Mexico’s tourist corridors over this time period. The number of projects increased to meet the high demand, causing the unit prices and rates of returns to rise as well as the number of investors financing such projects.
As the U.S. economic downturn begun to first surface in 2006, followed by a global downturn that continues today, the number of U.S. buyers naturally decreased. A growing number of Mexican and Canadian buyers emerged; however, this was not enough to offset the decrease among U.S. buyers. Despite weakening demand, many developers continued to build properties, creating higher inventory than seen in the past.
While Mexico’s resort real estate markets have not experienced as severe of a downturn as the U.S. real estate market, nor does anyone expect them to reach such a level, it is clear that demand has slowed and will remain slower for the short term as compared to the booming years of 2000 to 2005.
A slower market will translate into two things. First, it is evident that Mexico’s resort real estate market is now more than ever a buyer’s market. Increased inventory in light of decreased demand puts buyers in the driver seat more than ever before. Second, a buyer’s market will force developers to work harder in order to differentiate themselves and create value-added projects that meet buyers’ demands even more.
A Changing Market . . . for the Better
The upside of the recent market boom yielded the creation of numerous world-class resorts throughout Mexico, all of which paved the way for future successful projects as well as attracted the attention of the international community, catapulting Mexico as the world’s top retirement destination for the second year in a row as ranked by International Living.
The current state of the market will bring more positive change. These positive changes were expressed by several panels at the conference, all stressing a similar point; the stakes have been raised –buyers have new priorities in their lives and developers will be forced to offer “programming” that is more creative and better understands their target market.
While buyers continue to value strong amenities, the level and types of amenities has changed. Among the new level of amenities that buyers are trending towards include spa, fitness and wellness facilities, activities for children such as kids clubs, educational and cultural programming, retail villages, marina villages, shared open spaces, indigenous landscape that include environmentally sensitive amenities and sustainable design with a stronger focus on authenticity. As all developments appear to sell some sort of differentiating lifestyle, developers will be challenged now more than ever to build the right lifestyle for the right target market.
In addition to developers being faced with the task of creating more value-added products, the changing market has made every aspect of financing a more important part of the sale process. First, developers will no longer be able to count on pre-sales to finance part of their construction, and therefore must take a more conservative route and line up traditional financing for the entire project. This is needed to ensure completion of their projects and create the confidence among their buyers that units will be delivered in a timely fashion despite a potentially slower market. Second, buyers are increasingly looking to finance their purchases through cross-border Mexico mortgage providers such as ConfiCasa. Developers and realtors will increasingly work with Mexico mortgage providers to build a mainstream and healthy cross-border Mexico mortgage market that will help the market for both buyers and sellers by making Mexico real estate more affordable. The topic of Mexico mortgage financing is discussed in significant detail in ConfiCasa’s Spring/Summer 2008 Newsletter article “Cross-Border Mexico Mortgage Financing - A Silver Lining to a Slower Mexico Real Estate Market”.
Change Drives Opportunity
Mexico’s continued attractiveness among foreign home owners, due to its climate, amenities, close proximity to the U.S. and Canada and safety, makes it clear that the U.S. and global economic downturn is just a shorter-term hiccup in what will continue as Mexico’s long-term boom as a second home and retirement destination among Americans, Canadians and Europeans. It is important that people not lose sight of this fact and realize that a shorter-term crisis creates opportunity. Finding those opportunities is the new challenge. For developers, it means raising the bar to what are already world class properties. For buyers, it means being able to obtain tremendous value wherever they choose to purchase in Mexico.
Matt Miller, President of Conficasa Mortgage International, has offered this good information to Mexico Premiere about the current state of Mexico real estate and financing.
As the Mexico resort real estate market continues to gain popularity among North Americans, one common theme exists; an increasing demand for insightful and relevant information among the entire Mexican resort real estate community, including developers, realtors, owners, resellers and potential buyers. This is especially true in light of today’s more difficult economic times. Therefore, it seemed worthwhile to highlight the hottest current topics in the industry as discussed at the fourth annual Mexico Resort Development Conference in Carlsbad, California held in December 2008.
This year’s conference was once again well attended among the most knowledgeable industry players, spanning a broad range of function, including debt and equity investors, banking/lending institutions, developers, land planners, designers, architects, consultants, real estate executives and professional service firms, all of who possess significant and direct experience throughout all of Mexico’s resort areas.
This year’s conference focused on the changing global economic landscape and its direct effect on Mexico’s resort developments and buyers.
The Current State of the Market Will Drive Positive Change
It was made clear that the current global economic downturn will have several effects on the Mexico resort real estate market. To understand the downturn and its effects, one must first understand the upturn.
The historical upturn (from approximately 2000 to 2005) is simple. Mexico was and continues to be an extremely attractive destination for second and retirement home ownership given its favorable attributes and proximity to the U.S. and Canada. As U.S. citizens continued to discover Mexico, they were able to purchase beachfront and ocean view properties at a fraction of the cost of similar real estate in the U.S. and also enjoyed 40% to 100% returns on equity, as compared to 15% to 35% in the U.S. This, coupled with buoyed U.S. equity markets and cheap and available credit, made it relatively easy for developers to sell to U.S. buyers who purchased the majority of the real estate in Mexico’s tourist corridors over this time period. The number of projects increased to meet the high demand, causing the unit prices and rates of returns to rise as well as the number of investors financing such projects.
As the U.S. economic downturn begun to first surface in 2006, followed by a global downturn that continues today, the number of U.S. buyers naturally decreased. A growing number of Mexican and Canadian buyers emerged; however, this was not enough to offset the decrease among U.S. buyers. Despite weakening demand, many developers continued to build properties, creating higher inventory than seen in the past.
While Mexico’s resort real estate markets have not experienced as severe of a downturn as the U.S. real estate market, nor does anyone expect them to reach such a level, it is clear that demand has slowed and will remain slower for the short term as compared to the booming years of 2000 to 2005.
A slower market will translate into two things. First, it is evident that Mexico’s resort real estate market is now more than ever a buyer’s market. Increased inventory in light of decreased demand puts buyers in the driver seat more than ever before. Second, a buyer’s market will force developers to work harder in order to differentiate themselves and create value-added projects that meet buyers’ demands even more.
A Changing Market . . . for the Better
The upside of the recent market boom yielded the creation of numerous world-class resorts throughout Mexico, all of which paved the way for future successful projects as well as attracted the attention of the international community, catapulting Mexico as the world’s top retirement destination for the second year in a row as ranked by International Living.
The current state of the market will bring more positive change. These positive changes were expressed by several panels at the conference, all stressing a similar point; the stakes have been raised –buyers have new priorities in their lives and developers will be forced to offer “programming” that is more creative and better understands their target market.
While buyers continue to value strong amenities, the level and types of amenities has changed. Among the new level of amenities that buyers are trending towards include spa, fitness and wellness facilities, activities for children such as kids clubs, educational and cultural programming, retail villages, marina villages, shared open spaces, indigenous landscape that include environmentally sensitive amenities and sustainable design with a stronger focus on authenticity. As all developments appear to sell some sort of differentiating lifestyle, developers will be challenged now more than ever to build the right lifestyle for the right target market.
In addition to developers being faced with the task of creating more value-added products, the changing market has made every aspect of financing a more important part of the sale process. First, developers will no longer be able to count on pre-sales to finance part of their construction, and therefore must take a more conservative route and line up traditional financing for the entire project. This is needed to ensure completion of their projects and create the confidence among their buyers that units will be delivered in a timely fashion despite a potentially slower market. Second, buyers are increasingly looking to finance their purchases through cross-border Mexico mortgage providers such as ConfiCasa. Developers and realtors will increasingly work with Mexico mortgage providers to build a mainstream and healthy cross-border Mexico mortgage market that will help the market for both buyers and sellers by making Mexico real estate more affordable. The topic of Mexico mortgage financing is discussed in significant detail in ConfiCasa’s Spring/Summer 2008 Newsletter article “Cross-Border Mexico Mortgage Financing - A Silver Lining to a Slower Mexico Real Estate Market”.
Change Drives Opportunity
Mexico’s continued attractiveness among foreign home owners, due to its climate, amenities, close proximity to the U.S. and Canada and safety, makes it clear that the U.S. and global economic downturn is just a shorter-term hiccup in what will continue as Mexico’s long-term boom as a second home and retirement destination among Americans, Canadians and Europeans. It is important that people not lose sight of this fact and realize that a shorter-term crisis creates opportunity. Finding those opportunities is the new challenge. For developers, it means raising the bar to what are already world class properties. For buyers, it means being able to obtain tremendous value wherever they choose to purchase in Mexico.
Reasons Mexico's Economy is Poised For rebound
The global financial crisis has taken its toll on Mexico’s economy. According to Mexico’s Finance Secretary, Agustin Carstens, Mexico’s GDP could contract by 4.1 percent this year due to a decline in exports to the US and the national shutdown in response to the swine flu outbreak. However, despite the current recession, there is a lot to be optimistic about for Mexico’s future as an emerging economy. In this article, Alfonso Galindo, of Mexico Acquisitions & development Group in Merida, Yucatan Mexico, describes some of the positive developments that are occurring right now in Mexico that could help Mexico emerge stronger than ever when the recession ends.
What country has enhanced its position in global manufacturing and design for appliances to aircraft parts? Mexico. Surprised?
The drop in the peso against the dollar since August has made Mexico an even better bargain for business and tourism than before.
True, foreign investment was down 46% in 2008 to $18.6 billion. The economy in January shrank 9.5%. The country is expected to loose up to half a million jobs in the first half of this year.
The question is this loss of market related to economic mismanagement or the global recession as a whole? Manufacturing is down in China and India, everywhere. Even when the border towns in Mexico had issues with drug-trafficking and violence, business investment continued until the global financial meltdown. Question answered.
A sleeper: In the past Mexico has had troubles competing for business development because of the lack of standards met for international competitiveness. Things have changed. Mexico has boosted its ability to compete by studying successful models in Europe, Asia and the US. Local governments have collaborated with universities and private industry to upgrade their research and development, customer service, and train their workforces. For example, Mexican exports of aerospace products have almost tripled to three billion US since.
President Calderon visited France and met with French President Nicolas Sarkozy recently. In March, 2009, Sarkozy announced that Eurocopter would invest $550 million to manufacture helicopters in Queretaro. Queretaro is now becoming a production and engineering center for General Electric and Bombardier.
Mexico can absorb global shocks since its maturation in fiscal and monetary policy after the 1994 financial crash. IMF (International Monetary Fund) worked with Mexico to adopt stricter standards of monetary policies. One of the basic rules is for member countries not to print more money to control inflation.
Mexico should also benefit from a change in thinking of US manufacturers who have relied on Asia and now are re-evaluating staying in North America for its production plants. Cost of transportation is just one of the concerns; the time delay for delivery also affects what money is tied up in inventory.
In Mexico, US companies can better control their day-to-day operations if they are closer, as well as, be less concerned with piracy, failure of quality standard, and contamination of products.
A recent survey of US manufacturing companies indicated that more are planning to expand in Mexico and fewer to cut back. These decisions are in contrast to their strategy to cut back production in China.
Mexico’s violence in the drug war is mostly related to specific groups in border towns. This concern is not as scary to manufacturing companies as disease outbreaks in China, policy shifts in Moscow, or riots in South Africa.
The electronics sector: Beijing’s Lenovo division (purchased from IBM) is opening a new manufacturing plant in Monterrey to produce up to 5 million PC’s a year. An electronics manufacturer from Florida has more than doubled its staff to 8,000 at its Guadalajara plant. Taiwan has expanded its Mexican factories in electronics manufacturing. US companies such as Skyworks Solutions from Massachusetts moving to Mexico to manufacture semiconductors for mobile phone and PDA’s.
The high-tech industry should take off in Mexico because of the lower cost of wages, including benefits, compared to China. There is opportunity in crisis.
Why Go to Mexico:
There is less technology theft, travel costs, quality issues, and delays due to miscommunication.
Skill levels are up from collaboration between state schools and industry.
Because of the drop in the peso compared to the US dollar, wages and rents are more attractive compared to cost in the rest of North American or China.
Shipments arrive more quickly than from Asia, a big concern to importers as they reduce inventory costs and lead times.
Even though NAFTA has been controversial, this trade agreement and others with Europe, Japan and Latin America have given Mexico duty-free access to more markets than any other country.
Mexico ranks ahead of the emerging economics of Brazil and Russia in the most recent Global Competitiveness Index by the World Economic Forum. Mexico is Latin America’s second largest economy. Chile is Latin America’s largest economy according to the WEF Global Competitiveness Index.
Work still needs to be done to make Mexico a stronger economy and financial partner in North America. There is need for: much improvement in reform of labor practices, an increase in the integrity of public institutions, and education to give skills to the population in general.
Direct Investment in Mexico, source: “Mexico Investor Digest 2009”
Chinese cars to be assembled in Guanajuato.
Q-Cells to build a new solar cell plant in Mexicali.
Cargotec to relocate factory from US to Mexico.
GM shifts cars production to stay in Mexico.
Ford announces a 3 billion dollar investment.
Chinese company to develop copper project.
Audi seeks more share of the market.
Mexico to produce biofuels from seaweeds.
Jatco expands factory in Mexico.
Mexico is currently the world’s top retirement location.*
Continued improvement in the quality of life for its residents is tied to the economic health of the country itself. Without jobs and income for its citizens, there can be no quality of life for these people as well as for those who choose to buy and live in Mexico. People buy real estate in Mexico every year. They will continue to do so.
*International Living
What country has enhanced its position in global manufacturing and design for appliances to aircraft parts? Mexico. Surprised?
The drop in the peso against the dollar since August has made Mexico an even better bargain for business and tourism than before.
True, foreign investment was down 46% in 2008 to $18.6 billion. The economy in January shrank 9.5%. The country is expected to loose up to half a million jobs in the first half of this year.
The question is this loss of market related to economic mismanagement or the global recession as a whole? Manufacturing is down in China and India, everywhere. Even when the border towns in Mexico had issues with drug-trafficking and violence, business investment continued until the global financial meltdown. Question answered.
A sleeper: In the past Mexico has had troubles competing for business development because of the lack of standards met for international competitiveness. Things have changed. Mexico has boosted its ability to compete by studying successful models in Europe, Asia and the US. Local governments have collaborated with universities and private industry to upgrade their research and development, customer service, and train their workforces. For example, Mexican exports of aerospace products have almost tripled to three billion US since.
President Calderon visited France and met with French President Nicolas Sarkozy recently. In March, 2009, Sarkozy announced that Eurocopter would invest $550 million to manufacture helicopters in Queretaro. Queretaro is now becoming a production and engineering center for General Electric and Bombardier.
Mexico can absorb global shocks since its maturation in fiscal and monetary policy after the 1994 financial crash. IMF (International Monetary Fund) worked with Mexico to adopt stricter standards of monetary policies. One of the basic rules is for member countries not to print more money to control inflation.
Mexico should also benefit from a change in thinking of US manufacturers who have relied on Asia and now are re-evaluating staying in North America for its production plants. Cost of transportation is just one of the concerns; the time delay for delivery also affects what money is tied up in inventory.
In Mexico, US companies can better control their day-to-day operations if they are closer, as well as, be less concerned with piracy, failure of quality standard, and contamination of products.
A recent survey of US manufacturing companies indicated that more are planning to expand in Mexico and fewer to cut back. These decisions are in contrast to their strategy to cut back production in China.
Mexico’s violence in the drug war is mostly related to specific groups in border towns. This concern is not as scary to manufacturing companies as disease outbreaks in China, policy shifts in Moscow, or riots in South Africa.
The electronics sector: Beijing’s Lenovo division (purchased from IBM) is opening a new manufacturing plant in Monterrey to produce up to 5 million PC’s a year. An electronics manufacturer from Florida has more than doubled its staff to 8,000 at its Guadalajara plant. Taiwan has expanded its Mexican factories in electronics manufacturing. US companies such as Skyworks Solutions from Massachusetts moving to Mexico to manufacture semiconductors for mobile phone and PDA’s.
The high-tech industry should take off in Mexico because of the lower cost of wages, including benefits, compared to China. There is opportunity in crisis.
Why Go to Mexico:
There is less technology theft, travel costs, quality issues, and delays due to miscommunication.
Skill levels are up from collaboration between state schools and industry.
Because of the drop in the peso compared to the US dollar, wages and rents are more attractive compared to cost in the rest of North American or China.
Shipments arrive more quickly than from Asia, a big concern to importers as they reduce inventory costs and lead times.
Even though NAFTA has been controversial, this trade agreement and others with Europe, Japan and Latin America have given Mexico duty-free access to more markets than any other country.
Mexico ranks ahead of the emerging economics of Brazil and Russia in the most recent Global Competitiveness Index by the World Economic Forum. Mexico is Latin America’s second largest economy. Chile is Latin America’s largest economy according to the WEF Global Competitiveness Index.
Work still needs to be done to make Mexico a stronger economy and financial partner in North America. There is need for: much improvement in reform of labor practices, an increase in the integrity of public institutions, and education to give skills to the population in general.
Direct Investment in Mexico, source: “Mexico Investor Digest 2009”
Chinese cars to be assembled in Guanajuato.
Q-Cells to build a new solar cell plant in Mexicali.
Cargotec to relocate factory from US to Mexico.
GM shifts cars production to stay in Mexico.
Ford announces a 3 billion dollar investment.
Chinese company to develop copper project.
Audi seeks more share of the market.
Mexico to produce biofuels from seaweeds.
Jatco expands factory in Mexico.
Mexico is currently the world’s top retirement location.*
Continued improvement in the quality of life for its residents is tied to the economic health of the country itself. Without jobs and income for its citizens, there can be no quality of life for these people as well as for those who choose to buy and live in Mexico. People buy real estate in Mexico every year. They will continue to do so.
*International Living
Reasons Mexico's Economy is Poised For rebound
The global financial crisis has taken its toll on Mexico’s economy. According to Mexico’s Finance Secretary, Agustin Carstens, Mexico’s GDP could contract by 4.1 percent this year due to a decline in exports to the US and the national shutdown in response to the swine flu outbreak. However, despite the current recession, there is a lot to be optimistic about for Mexico’s future as an emerging economy. In this article, Alfonso Galindo, of Mexico Acquisitions & development Group in Merida, Yucatan Mexico, describes some of the positive developments that are occurring right now in Mexico that could help Mexico emerge stronger than ever when the recession ends.
What country has enhanced its position in global manufacturing and design for appliances to aircraft parts? Mexico. Surprised?
The drop in the peso against the dollar since August has made Mexico an even better bargain for business and tourism than before.
True, foreign investment was down 46% in 2008 to $18.6 billion. The economy in January shrank 9.5%. The country is expected to loose up to half a million jobs in the first half of this year.
The question is this loss of market related to economic mismanagement or the global recession as a whole? Manufacturing is down in China and India, everywhere. Even when the border towns in Mexico had issues with drug-trafficking and violence, business investment continued until the global financial meltdown. Question answered.
A sleeper: In the past Mexico has had troubles competing for business development because of the lack of standards met for international competitiveness. Things have changed. Mexico has boosted its ability to compete by studying successful models in Europe, Asia and the US. Local governments have collaborated with universities and private industry to upgrade their research and development, customer service, and train their workforces. For example, Mexican exports of aerospace products have almost tripled to three billion US since.
President Calderon visited France and met with French President Nicolas Sarkozy recently. In March, 2009, Sarkozy announced that Eurocopter would invest $550 million to manufacture helicopters in Queretaro. Queretaro is now becoming a production and engineering center for General Electric and Bombardier.
Mexico can absorb global shocks since its maturation in fiscal and monetary policy after the 1994 financial crash. IMF (International Monetary Fund) worked with Mexico to adopt stricter standards of monetary policies. One of the basic rules is for member countries not to print more money to control inflation.
Mexico should also benefit from a change in thinking of US manufacturers who have relied on Asia and now are re-evaluating staying in North America for its production plants. Cost of transportation is just one of the concerns; the time delay for delivery also affects what money is tied up in inventory.
In Mexico, US companies can better control their day-to-day operations if they are closer, as well as, be less concerned with piracy, failure of quality standard, and contamination of products.
A recent survey of US manufacturing companies indicated that more are planning to expand in Mexico and fewer to cut back. These decisions are in contrast to their strategy to cut back production in China.
Mexico’s violence in the drug war is mostly related to specific groups in border towns. This concern is not as scary to manufacturing companies as disease outbreaks in China, policy shifts in Moscow, or riots in South Africa.
The electronics sector: Beijing’s Lenovo division (purchased from IBM) is opening a new manufacturing plant in Monterrey to produce up to 5 million PC’s a year. An electronics manufacturer from Florida has more than doubled its staff to 8,000 at its Guadalajara plant. Taiwan has expanded its Mexican factories in electronics manufacturing. US companies such as Skyworks Solutions from Massachusetts moving to Mexico to manufacture semiconductors for mobile phone and PDA’s.
The high-tech industry should take off in Mexico because of the lower cost of wages, including benefits, compared to China. There is opportunity in crisis.
Why Go to Mexico:
There is less technology theft, travel costs, quality issues, and delays due to miscommunication.
Skill levels are up from collaboration between state schools and industry.
Because of the drop in the peso compared to the US dollar, wages and rents are more attractive compared to cost in the rest of North American or China.
Shipments arrive more quickly than from Asia, a big concern to importers as they reduce inventory costs and lead times.
Even though NAFTA has been controversial, this trade agreement and others with Europe, Japan and Latin America have given Mexico duty-free access to more markets than any other country.
Mexico ranks ahead of the emerging economics of Brazil and Russia in the most recent Global Competitiveness Index by the World Economic Forum. Mexico is Latin America’s second largest economy. Chile is Latin America’s largest economy according to the WEF Global Competitiveness Index.
Work still needs to be done to make Mexico a stronger economy and financial partner in North America. There is need for: much improvement in reform of labor practices, an increase in the integrity of public institutions, and education to give skills to the population in general.
Direct Investment in Mexico, source: “Mexico Investor Digest 2009”
Chinese cars to be assembled in Guanajuato.
Q-Cells to build a new solar cell plant in Mexicali.
Cargotec to relocate factory from US to Mexico.
GM shifts cars production to stay in Mexico.
Ford announces a 3 billion dollar investment.
Chinese company to develop copper project.
Audi seeks more share of the market.
Mexico to produce biofuels from seaweeds.
Jatco expands factory in Mexico.
Mexico is currently the world’s top retirement location.*
Continued improvement in the quality of life for its residents is tied to the economic health of the country itself. Without jobs and income for its citizens, there can be no quality of life for these people as well as for those who choose to buy and live in Mexico. People buy real estate in Mexico every year. They will continue to do so.
*International Living
What country has enhanced its position in global manufacturing and design for appliances to aircraft parts? Mexico. Surprised?
The drop in the peso against the dollar since August has made Mexico an even better bargain for business and tourism than before.
True, foreign investment was down 46% in 2008 to $18.6 billion. The economy in January shrank 9.5%. The country is expected to loose up to half a million jobs in the first half of this year.
The question is this loss of market related to economic mismanagement or the global recession as a whole? Manufacturing is down in China and India, everywhere. Even when the border towns in Mexico had issues with drug-trafficking and violence, business investment continued until the global financial meltdown. Question answered.
A sleeper: In the past Mexico has had troubles competing for business development because of the lack of standards met for international competitiveness. Things have changed. Mexico has boosted its ability to compete by studying successful models in Europe, Asia and the US. Local governments have collaborated with universities and private industry to upgrade their research and development, customer service, and train their workforces. For example, Mexican exports of aerospace products have almost tripled to three billion US since.
President Calderon visited France and met with French President Nicolas Sarkozy recently. In March, 2009, Sarkozy announced that Eurocopter would invest $550 million to manufacture helicopters in Queretaro. Queretaro is now becoming a production and engineering center for General Electric and Bombardier.
Mexico can absorb global shocks since its maturation in fiscal and monetary policy after the 1994 financial crash. IMF (International Monetary Fund) worked with Mexico to adopt stricter standards of monetary policies. One of the basic rules is for member countries not to print more money to control inflation.
Mexico should also benefit from a change in thinking of US manufacturers who have relied on Asia and now are re-evaluating staying in North America for its production plants. Cost of transportation is just one of the concerns; the time delay for delivery also affects what money is tied up in inventory.
In Mexico, US companies can better control their day-to-day operations if they are closer, as well as, be less concerned with piracy, failure of quality standard, and contamination of products.
A recent survey of US manufacturing companies indicated that more are planning to expand in Mexico and fewer to cut back. These decisions are in contrast to their strategy to cut back production in China.
Mexico’s violence in the drug war is mostly related to specific groups in border towns. This concern is not as scary to manufacturing companies as disease outbreaks in China, policy shifts in Moscow, or riots in South Africa.
The electronics sector: Beijing’s Lenovo division (purchased from IBM) is opening a new manufacturing plant in Monterrey to produce up to 5 million PC’s a year. An electronics manufacturer from Florida has more than doubled its staff to 8,000 at its Guadalajara plant. Taiwan has expanded its Mexican factories in electronics manufacturing. US companies such as Skyworks Solutions from Massachusetts moving to Mexico to manufacture semiconductors for mobile phone and PDA’s.
The high-tech industry should take off in Mexico because of the lower cost of wages, including benefits, compared to China. There is opportunity in crisis.
Why Go to Mexico:
There is less technology theft, travel costs, quality issues, and delays due to miscommunication.
Skill levels are up from collaboration between state schools and industry.
Because of the drop in the peso compared to the US dollar, wages and rents are more attractive compared to cost in the rest of North American or China.
Shipments arrive more quickly than from Asia, a big concern to importers as they reduce inventory costs and lead times.
Even though NAFTA has been controversial, this trade agreement and others with Europe, Japan and Latin America have given Mexico duty-free access to more markets than any other country.
Mexico ranks ahead of the emerging economics of Brazil and Russia in the most recent Global Competitiveness Index by the World Economic Forum. Mexico is Latin America’s second largest economy. Chile is Latin America’s largest economy according to the WEF Global Competitiveness Index.
Work still needs to be done to make Mexico a stronger economy and financial partner in North America. There is need for: much improvement in reform of labor practices, an increase in the integrity of public institutions, and education to give skills to the population in general.
Direct Investment in Mexico, source: “Mexico Investor Digest 2009”
Chinese cars to be assembled in Guanajuato.
Q-Cells to build a new solar cell plant in Mexicali.
Cargotec to relocate factory from US to Mexico.
GM shifts cars production to stay in Mexico.
Ford announces a 3 billion dollar investment.
Chinese company to develop copper project.
Audi seeks more share of the market.
Mexico to produce biofuels from seaweeds.
Jatco expands factory in Mexico.
Mexico is currently the world’s top retirement location.*
Continued improvement in the quality of life for its residents is tied to the economic health of the country itself. Without jobs and income for its citizens, there can be no quality of life for these people as well as for those who choose to buy and live in Mexico. People buy real estate in Mexico every year. They will continue to do so.
*International Living
Best beachfront Deal in Mexico
Beachfront lots with beautiful ocean and lagoon in rear property 20 x 500 meters.
Fonatur in vesting Billion in area.
Located in the state of Campeche by the town of Sanbancuy.
call or email now before they are all gone.
view link..
http://www.proorb.com/listing-real-estate-beach-front-lots-ID-37025.html
Fonatur in vesting Billion in area.
Located in the state of Campeche by the town of Sanbancuy.
call or email now before they are all gone.
view link..
http://www.proorb.com/listing-real-estate-beach-front-lots-ID-37025.html
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