Monday, December 20, 2010
Friday, December 17, 2010
Tuesday, December 7, 2010
Thursday, December 2, 2010
Monday, November 15, 2010
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Thursday, November 11, 2010
Wednesday, November 10, 2010
Friday, October 29, 2010
Thursday, October 28, 2010
Wednesday, October 27, 2010
Monday, October 25, 2010
Tuesday, October 12, 2010
Monday, October 11, 2010
Friday, October 8, 2010
Wednesday, October 6, 2010
Thursday, September 30, 2010
Tuesday, September 28, 2010
Sunday, September 26, 2010
Wednesday, September 22, 2010
Saturday, September 18, 2010
Tuesday, September 14, 2010
Monday, September 13, 2010
Saturday, September 11, 2010
Friday, September 10, 2010
Tuesday, September 7, 2010
Friday, September 3, 2010
Wednesday, September 1, 2010
Tuesday, August 31, 2010
Thursday, August 26, 2010
Wednesday, August 25, 2010
Monday, August 23, 2010
Thursday, August 19, 2010
Sunday, August 15, 2010
Saturday, August 14, 2010
Friday, August 13, 2010
Thursday, August 12, 2010
Emerging Trends in Second Home Real Estate indicate Stability and Growth
(August 12, 2010) – The 2010 Second Home Trend Report indicates 45% of existing second home owners believe that now is a good time to buy an additional second home.
E360’s Second Home Trend Report, surveys existing second home buyers on the preferences of timing, attributes, location, and pricing of an additional second home purchase.
Of those 45% indicating that they are in the market for a second home, Mexico is the top international destination with more than half of the total interest. E360’s Global Research Analyst, Chad Martin said “although only half of our respondents believe now is a good time to buy, it is impressive that there is a strong second home contingent looking at a market like Mexico.”
More impressively, of the remaining 54% who indicated that now would not be a good time to buy 79% indicated that they would be likely or very likely to purchase in the next 2 years. Martin says “this is a strong indication that demand will continue to grow over the next two years and will strengthen the second home market”.
As consistent with current market trends, lifestyle and vacation attributes are the leading motivator at 46% for second home buyers with investment purposes coming in next at around 41%. Second home purchases for the purpose of retirement ranked 3rd at just over 11%.
The desire for a second home geared for vacation purposes is not a surprising finding. Martin said “this is a consistent trend with the preferred attributes of the buyer being water views and proximity to water or mountain activities.” Lake and ocean views combined for an overwhelming majority of the preferred attributes surveyed with mountain views coming second.
Martin adds “While spa and medical facilities have exhibited recent high growth rate forecasts in recent studies respondents did not translate that growth into the high motivation for a second home purchases. Green based second homes did not show the high appeal translating into a purchase motivation. Golf has not clearly shown itself as primary appealing attribute as it translates to real estate buyers when compared to other second home attributes.”
Although most respondents indicated they would be looking in International markets for a second home, nearly 49% of purchasers will be looking domestically. “although most of these buyers plan to wait 1-2 years, this is great news for the US Second Home market. Over the next few years we anticipate that the second home market in the US that are focused 100-1000 miles from highly populated areas will see an increase in demand.”
According to the study, 40% are looking at areas 500-1000 miles away and nearly 30% are looking from 100-500 miles away from their homes. The numbers over 1000 miles dropped significantly to 11%. This supports the trend that of those interested in a domestic or Mexico second home market, nearly 39% of buyers are looking in rural areas throughout the US.
Of the same second home buyers looking at a US purchase, 49% are looking for a single family home and 60% preferred a smaller 2-bed, 2-bath floor plan.
These respondents are interested in the $200,000 to $400,000 price range and 60% are not interested in receiving financing for the purchase.
E360’s 2010 Second Home Trend Report, conducted in June/July 2010, includes answers from 612 usable responses.
Company Profile
E360 is supporting responsible real estate development and tourism with research based visions and solutions. The E360 team has over 50 years of real estate experience representing over $10 billion in revenues world-wide. E360 has extensive expertise in research, market positioning and storyline creation, capital structuring, cash flow modeling, as well as sales and marketing strategy development and execution.
Our track record is tied to some of the strongest brands in the world including; Starwood Hotels and Resorts, Hard Rock Hotels, Four Seasons, Intercontinental Hotels, Rosewood Hotels and Resorts and Ritz Carlton. We have worked in some of the most recognizable locations including: Lake Tahoe, CA; Napa Valley, CA; Whistler, Canada; Aspen, CO; Cancun, MX; Cabo San Lucas, MX; Puerto Vallarta, MX; Merdia, MX: Panama City Panama; Roatan, Honduras; St Vincent and the Grenadines, St. Lucia and St. Maarten.
For more information on E360, visit www.element-360.com.
For a copy of the complete report contact:
Alfonso Galindo
Senior Advisor, Latin America
E360-Research based real estate services
Mexico Direct:011521- 999.246.9605
U.S. Direct 1-805.621.7005
Skype: alfonso.galindo
ag.mexinvest@gmail.com
alfonso@element-360.com
www.element-360.com
E360’s Second Home Trend Report, surveys existing second home buyers on the preferences of timing, attributes, location, and pricing of an additional second home purchase.
Of those 45% indicating that they are in the market for a second home, Mexico is the top international destination with more than half of the total interest. E360’s Global Research Analyst, Chad Martin said “although only half of our respondents believe now is a good time to buy, it is impressive that there is a strong second home contingent looking at a market like Mexico.”
More impressively, of the remaining 54% who indicated that now would not be a good time to buy 79% indicated that they would be likely or very likely to purchase in the next 2 years. Martin says “this is a strong indication that demand will continue to grow over the next two years and will strengthen the second home market”.
As consistent with current market trends, lifestyle and vacation attributes are the leading motivator at 46% for second home buyers with investment purposes coming in next at around 41%. Second home purchases for the purpose of retirement ranked 3rd at just over 11%.
The desire for a second home geared for vacation purposes is not a surprising finding. Martin said “this is a consistent trend with the preferred attributes of the buyer being water views and proximity to water or mountain activities.” Lake and ocean views combined for an overwhelming majority of the preferred attributes surveyed with mountain views coming second.
Martin adds “While spa and medical facilities have exhibited recent high growth rate forecasts in recent studies respondents did not translate that growth into the high motivation for a second home purchases. Green based second homes did not show the high appeal translating into a purchase motivation. Golf has not clearly shown itself as primary appealing attribute as it translates to real estate buyers when compared to other second home attributes.”
Although most respondents indicated they would be looking in International markets for a second home, nearly 49% of purchasers will be looking domestically. “although most of these buyers plan to wait 1-2 years, this is great news for the US Second Home market. Over the next few years we anticipate that the second home market in the US that are focused 100-1000 miles from highly populated areas will see an increase in demand.”
According to the study, 40% are looking at areas 500-1000 miles away and nearly 30% are looking from 100-500 miles away from their homes. The numbers over 1000 miles dropped significantly to 11%. This supports the trend that of those interested in a domestic or Mexico second home market, nearly 39% of buyers are looking in rural areas throughout the US.
Of the same second home buyers looking at a US purchase, 49% are looking for a single family home and 60% preferred a smaller 2-bed, 2-bath floor plan.
These respondents are interested in the $200,000 to $400,000 price range and 60% are not interested in receiving financing for the purchase.
E360’s 2010 Second Home Trend Report, conducted in June/July 2010, includes answers from 612 usable responses.
Company Profile
E360 is supporting responsible real estate development and tourism with research based visions and solutions. The E360 team has over 50 years of real estate experience representing over $10 billion in revenues world-wide. E360 has extensive expertise in research, market positioning and storyline creation, capital structuring, cash flow modeling, as well as sales and marketing strategy development and execution.
Our track record is tied to some of the strongest brands in the world including; Starwood Hotels and Resorts, Hard Rock Hotels, Four Seasons, Intercontinental Hotels, Rosewood Hotels and Resorts and Ritz Carlton. We have worked in some of the most recognizable locations including: Lake Tahoe, CA; Napa Valley, CA; Whistler, Canada; Aspen, CO; Cancun, MX; Cabo San Lucas, MX; Puerto Vallarta, MX; Merdia, MX: Panama City Panama; Roatan, Honduras; St Vincent and the Grenadines, St. Lucia and St. Maarten.
For more information on E360, visit www.element-360.com.
For a copy of the complete report contact:
Alfonso Galindo
Senior Advisor, Latin America
E360-Research based real estate services
Mexico Direct:011521- 999.246.9605
U.S. Direct 1-805.621.7005
Skype: alfonso.galindo
ag.mexinvest@gmail.com
alfonso@element-360.com
www.element-360.com
Wednesday, August 11, 2010
Monday, August 9, 2010
Sunday, August 8, 2010
Saturday, August 7, 2010
Friday, August 6, 2010
Saturday, July 31, 2010
Wednesday, July 28, 2010
Thursday, July 22, 2010
Wednesday, July 21, 2010
Tuesday, July 20, 2010
Wednesday, July 14, 2010
Tuesday, July 13, 2010
Monday, July 12, 2010
Friday, July 9, 2010
Thursday, July 8, 2010
Wednesday, July 7, 2010
Tuesday, July 6, 2010
Mexican president presents tax incentive plan for movies
Expect more foreign films to be shot here in Mexico in the coming years after a tax rebate plan gets implemented. This $20-million tax incentive program aims to lure foreign film productions to Mexico and make it Latin America's film production center.
This was announced by Mexican President Felipe Calderon at the Baja Studios in the state of Baja California, where the blockbuster film "Titanic" was mostly produced. Aside from that film, Peter Weir's "Master and Commander: Fair Share of the World" was also shot in the studio.
Under the program, tax rebates of about 7.5% will be given to film productions whose budget exceeds 70 million pesos (or about $5.5 million). For the Mexican film industry, where the average production cost is around $2 million, this can already be considered to be a high-budget film. This program is managed by the state-run film financing agency Imcine and investment body ProMexico. The budget for the rebate program, meanwhile, will be doubled to $40 million in the coming years.
But there is, of course, a catch. In order to qualify for the tax rebate program, the film's producer must contact a local film production agency. On top of this, the producers of the film may also write off another 10% in IVA, Mexico's version of the value-added tax. That represents a maximum of about 17.5% in tax rebates if the foreign film producers choose to produce their films in the country. That's definitely a sweet deal that will be very difficult to resist. That means a lot of savings for the film producers, savings that can be used in other aspects of film making such as marketing and promotion, for example.
If the program succeeds, Mexico will definitely turn out to be Latin America's Hollywood, and Hollywood's own second center. I do wish it turns out that way so that there will be more reasons for expats to stay in the country. Who would like to see another Titanic in the works in your backyard?
This was announced by Mexican President Felipe Calderon at the Baja Studios in the state of Baja California, where the blockbuster film "Titanic" was mostly produced. Aside from that film, Peter Weir's "Master and Commander: Fair Share of the World" was also shot in the studio.
Under the program, tax rebates of about 7.5% will be given to film productions whose budget exceeds 70 million pesos (or about $5.5 million). For the Mexican film industry, where the average production cost is around $2 million, this can already be considered to be a high-budget film. This program is managed by the state-run film financing agency Imcine and investment body ProMexico. The budget for the rebate program, meanwhile, will be doubled to $40 million in the coming years.
But there is, of course, a catch. In order to qualify for the tax rebate program, the film's producer must contact a local film production agency. On top of this, the producers of the film may also write off another 10% in IVA, Mexico's version of the value-added tax. That represents a maximum of about 17.5% in tax rebates if the foreign film producers choose to produce their films in the country. That's definitely a sweet deal that will be very difficult to resist. That means a lot of savings for the film producers, savings that can be used in other aspects of film making such as marketing and promotion, for example.
If the program succeeds, Mexico will definitely turn out to be Latin America's Hollywood, and Hollywood's own second center. I do wish it turns out that way so that there will be more reasons for expats to stay in the country. Who would like to see another Titanic in the works in your backyard?
Monday, July 5, 2010
Saturday, July 3, 2010
Thursday, July 1, 2010
Tuesday, June 29, 2010
Monday, June 28, 2010
Tuesday, June 8, 2010
Wednesday, June 2, 2010
More Investment in Mexico
Further evidence that US engineers don't have a monopoly on innovation was Intel's announcement in April that it plans to invest $177 million over the next three years to expand its Guadalajara, Mexico, design center. Intel CEO Paul Otellini made the announcement during a press conference with Mexico President Felipe Calderon. The investment will ... See Morefocus on technology development activities and education initiatives that support Calderon's National Digital Plan.
The expansion at Intel GDC (Guadalajara design center) will include the construction of labs, office space, and a technology museum for children. Intel also estimated that approximately 150 technical jobs will be created over three years, bringing the total number of GDC engineers to 550.
The expansion at Intel GDC (Guadalajara design center) will include the construction of labs, office space, and a technology museum for children. Intel also estimated that approximately 150 technical jobs will be created over three years, bringing the total number of GDC engineers to 550.
Sunday, May 30, 2010
Friday, May 28, 2010
Thursday, May 27, 2010
Friday, May 21, 2010
Thursday, May 20, 2010
Tuesday, May 18, 2010
Sunday, May 16, 2010
Saturday, May 15, 2010
Friday, May 14, 2010
Tuesday, May 11, 2010
Mexican REITs at last! Cash expected to flood into Mexico real estate now...
Mexico real estate is about to receive a massive flow of new investment, thanks to changes in tax laws.
The reforms mean Mexico real estate investment trusts (REITS) will now be much more attractive and investors are expected to pour capital into the market.
REITs are essentially companies that are set up to invest in real estate, but under a lower tax burden. Shares in the REIT allow holders to invest efficiently in a real estate market, without owning property directly.
The framework for Mexican REITs, called Fibras (Fideicomiso de Infraestructura y Bienes Raices), was established 5 years ago, but until now it wasn't very tax-efficient, so the concept had not taken off.
However, last Friday, Alejandro Werner, Mexico's Deputy Finance Minister, told Reuters news agency that the cumbersome tax laws have been changed and in the next few months he expects there to be more activity and a broader range of Mexican REITs available.
The Mexican Stock Exchange, where the shares of Mexican REITs will be traded, said, last month, that they expect a big demand. Luis Tellez, head of the exchange, said, "there is major interest" from real estate development companies.
The extra investment and liquidity provided by the new REITs will have a direct impact on Mexico real estate. As cash flows in, property prices can be expected to rise due to the extra demand created.
Take a look at our main website to learn more about investment opportunities in Mexico real estate.
The reforms mean Mexico real estate investment trusts (REITS) will now be much more attractive and investors are expected to pour capital into the market.
REITs are essentially companies that are set up to invest in real estate, but under a lower tax burden. Shares in the REIT allow holders to invest efficiently in a real estate market, without owning property directly.
The framework for Mexican REITs, called Fibras (Fideicomiso de Infraestructura y Bienes Raices), was established 5 years ago, but until now it wasn't very tax-efficient, so the concept had not taken off.
However, last Friday, Alejandro Werner, Mexico's Deputy Finance Minister, told Reuters news agency that the cumbersome tax laws have been changed and in the next few months he expects there to be more activity and a broader range of Mexican REITs available.
The Mexican Stock Exchange, where the shares of Mexican REITs will be traded, said, last month, that they expect a big demand. Luis Tellez, head of the exchange, said, "there is major interest" from real estate development companies.
The extra investment and liquidity provided by the new REITs will have a direct impact on Mexico real estate. As cash flows in, property prices can be expected to rise due to the extra demand created.
Take a look at our main website to learn more about investment opportunities in Mexico real estate.
Saturday, May 1, 2010
Mexico's big hope: get 5 million U.S. retirees
MEXICO CITY -- Mexico is silently working on proposals aimed at drawing millions of U.S. retirees to this country, which could eventually lead to the most ambitious U.S.-Mexican project since the 1994 North American Free Trade Agreement.
President Felipe Calderón is likely to propose the first steps toward expanding U.S. retirement benefits and medical tourism to Mexico when he goes to Washington on an official visit May 19, according to well-placed officials here. If not then, he will raise the issue later this year, they say.
``It's one of the pillars of our plans to trigger economic and social well-being in both countries,'' Mexico's ambassador to the United States Arturo Sarukhan told me. ``We will be seeking to increasingly discuss this issue in coming months and years.''
Calderón brought it up during a U.S.-Canada-Mexico summit in Guadalajara in August last year, but President Barack Obama asked him to shelve the idea until he was able to pass healthcare reform, another official told me.
Now that Congress has passed healthcare reform, Calderón is preparing to charge ahead.
A GROWING MARKET
There are already an estimated 1 million Americans living in Mexico. And according to Mexican government estimates based on U.S. Census figures, that number is likely to soar to 5 million by 2025 as the U.S. population grows older and more Americans look for sunny, cheaper places to retire.
The U.S. Census projects that the number of U.S. retirees will soar from 40 million now to nearly 90 million by 2050. Already, 5 million American retirees live abroad, of whom 2.2 million are in the Western Hemisphere -- mostly in Mexico, the Dominican Republic and Brazil. Another 1.5 million live in Europe and 850,000 in Asia.
The key to luring more U.S. medical tourists and retirees to Mexico and other Latin American countries will be getting hospitals in the region to be certified by the U.S. Joint International Commission, which establishes that they meet U.S. hospitals' standards. There are already eight Mexican hospitals certified by the JIC and several others awaiting certification.
According to Mexican government estimates, healthcare costs in Mexico are about 70 percent lower than in the United States. And from my own experience, those estimates are right: As I reported at the time, when I was hospitalized in Mexico two years ago for an emergency operation, my hospital bill was indeed about 70 percent lower than what it would have been in Miami.
So what will Calderón specifically propose to Obama? Most likely, the Mexican president will suggest starting with a low-profile agreement that would allow the U.S. Health Care Financing Administration to pay for Medicare benefits to U.S. retirees in Mexico. Under current rules, Medicare only covers healthcare services in the United States.
IT JUST MAKES SENSE
My opinion: Mexico and much of Latin America are bound to become growing U.S. retirement and medical tourism destinations, much like Spain has become a permanent living place for Germans, Britons and Northern Europeans.
You won't read much about it now because neither Calderón nor Obama will emphasize it publicly while the drug-related violence in northern Mexico is making big headlines, and while the political wounds from the recent U.S. healthcare debate are still open in Washington, D.C.
But I'm increasingly convinced that, as the violence in Mexico subsides and the healthcare debate becomes a distant memory in Washington, medical benefits' deals will become a top U.S.-Latin American priority. Just as free-trade agreements were the big thing of the 1990s, healthcare agreements will be the big deal of the coming decade.
I wouldn't be surprised if Calderón and Obama take the first baby steps toward a U.S.-Mexico healthcare agreement by finding a way to pay for Medicare benefits for U.S. expatriates in Mexico, or getting U.S. states to allow similar payments. Then, most likely after the 2012 presidential election in both countries, the two would start negotiating a more ambitious deal.
Demography, geography and economics are pointing in that direction. With the U.S. population getting older, a record U.S. budget deficit, rising U.S. healthcare costs, and Mexico and other Latin American countries badly needing more tourism and investments, this should be a win-win for everybody.
BY ANDRES OPPENHEIMER
aoppenheimer@MiamiHerald.com
President Felipe Calderón is likely to propose the first steps toward expanding U.S. retirement benefits and medical tourism to Mexico when he goes to Washington on an official visit May 19, according to well-placed officials here. If not then, he will raise the issue later this year, they say.
``It's one of the pillars of our plans to trigger economic and social well-being in both countries,'' Mexico's ambassador to the United States Arturo Sarukhan told me. ``We will be seeking to increasingly discuss this issue in coming months and years.''
Calderón brought it up during a U.S.-Canada-Mexico summit in Guadalajara in August last year, but President Barack Obama asked him to shelve the idea until he was able to pass healthcare reform, another official told me.
Now that Congress has passed healthcare reform, Calderón is preparing to charge ahead.
A GROWING MARKET
There are already an estimated 1 million Americans living in Mexico. And according to Mexican government estimates based on U.S. Census figures, that number is likely to soar to 5 million by 2025 as the U.S. population grows older and more Americans look for sunny, cheaper places to retire.
The U.S. Census projects that the number of U.S. retirees will soar from 40 million now to nearly 90 million by 2050. Already, 5 million American retirees live abroad, of whom 2.2 million are in the Western Hemisphere -- mostly in Mexico, the Dominican Republic and Brazil. Another 1.5 million live in Europe and 850,000 in Asia.
The key to luring more U.S. medical tourists and retirees to Mexico and other Latin American countries will be getting hospitals in the region to be certified by the U.S. Joint International Commission, which establishes that they meet U.S. hospitals' standards. There are already eight Mexican hospitals certified by the JIC and several others awaiting certification.
According to Mexican government estimates, healthcare costs in Mexico are about 70 percent lower than in the United States. And from my own experience, those estimates are right: As I reported at the time, when I was hospitalized in Mexico two years ago for an emergency operation, my hospital bill was indeed about 70 percent lower than what it would have been in Miami.
So what will Calderón specifically propose to Obama? Most likely, the Mexican president will suggest starting with a low-profile agreement that would allow the U.S. Health Care Financing Administration to pay for Medicare benefits to U.S. retirees in Mexico. Under current rules, Medicare only covers healthcare services in the United States.
IT JUST MAKES SENSE
My opinion: Mexico and much of Latin America are bound to become growing U.S. retirement and medical tourism destinations, much like Spain has become a permanent living place for Germans, Britons and Northern Europeans.
You won't read much about it now because neither Calderón nor Obama will emphasize it publicly while the drug-related violence in northern Mexico is making big headlines, and while the political wounds from the recent U.S. healthcare debate are still open in Washington, D.C.
But I'm increasingly convinced that, as the violence in Mexico subsides and the healthcare debate becomes a distant memory in Washington, medical benefits' deals will become a top U.S.-Latin American priority. Just as free-trade agreements were the big thing of the 1990s, healthcare agreements will be the big deal of the coming decade.
I wouldn't be surprised if Calderón and Obama take the first baby steps toward a U.S.-Mexico healthcare agreement by finding a way to pay for Medicare benefits for U.S. expatriates in Mexico, or getting U.S. states to allow similar payments. Then, most likely after the 2012 presidential election in both countries, the two would start negotiating a more ambitious deal.
Demography, geography and economics are pointing in that direction. With the U.S. population getting older, a record U.S. budget deficit, rising U.S. healthcare costs, and Mexico and other Latin American countries badly needing more tourism and investments, this should be a win-win for everybody.
BY ANDRES OPPENHEIMER
aoppenheimer@MiamiHerald.com
Tuesday, April 27, 2010
Mexico Wants to Lure More Retirees
Mexico is developing a plan to attract more U.S. retirees, including provisions to offer them health care, according to a published report.
Mexico is already home to 1 million U.S. retirees, and that number could jump to 5 million by 2025, the Miami Herald reports. New proposals would likely allow Medicare payments to Mexico facilities certified by the U.S., the Herald says.
"It's one of the pillars of our plans to trigger economic and social well-being in both countries," Mexico's ambassador to the United States Arturo Sarukhan told the Herald.
Mexico's Carlos Slim, the world's richest man, is already investing in clinics to handle the new wave of medical tourism, Investment Properties Mexico notes. A recent study found that 44 percent of U.S. retirees live on less than $1,000 a month in Mexico, the site reports.
Any move by Mexico to offer health care for U.S. citizens is big news in the increasingly intense competition for retirees. Belize and Panama, for example, already offer enticing programs for retirees.
One country without a comprehensive plan to entice international retirees: the United States.
Mexico is already home to 1 million U.S. retirees, and that number could jump to 5 million by 2025, the Miami Herald reports. New proposals would likely allow Medicare payments to Mexico facilities certified by the U.S., the Herald says.
"It's one of the pillars of our plans to trigger economic and social well-being in both countries," Mexico's ambassador to the United States Arturo Sarukhan told the Herald.
Mexico's Carlos Slim, the world's richest man, is already investing in clinics to handle the new wave of medical tourism, Investment Properties Mexico notes. A recent study found that 44 percent of U.S. retirees live on less than $1,000 a month in Mexico, the site reports.
Any move by Mexico to offer health care for U.S. citizens is big news in the increasingly intense competition for retirees. Belize and Panama, for example, already offer enticing programs for retirees.
One country without a comprehensive plan to entice international retirees: the United States.
Sunday, April 18, 2010
People love statistics and they love to throw them around. The media loves to twist them and satisfy their sorted needs and exploit their viewers for better ratings. Then there are individuals who do the same thing because of "oneupsmanship" and why one is better than another or one place is safer than another.
So today here are my statistics that I would like to throw around as the media and people have been emailing me and constantly reminding me of the number of people murdered in Mexico because of the drug war.
U.S. murder statistics for "the last four years": 64,000
Mexico's murder statistics for "the last four years": 27,000
Read them as you wish and make all the justifications you would like. Numbers are numbers and please don't remind me of the larger population in the U.S. which would statistically drop the percent per capita in the U.S. Why?
A dead person is a dead person.
The same holds true for the poverty rate in each country:
Mexico 37,000,000
United States 37,000,000
Any kid that has to go to bed hungry is a criminal statistic and per capita doesn't mean squat.
So today here are my statistics that I would like to throw around as the media and people have been emailing me and constantly reminding me of the number of people murdered in Mexico because of the drug war.
U.S. murder statistics for "the last four years": 64,000
Mexico's murder statistics for "the last four years": 27,000
Read them as you wish and make all the justifications you would like. Numbers are numbers and please don't remind me of the larger population in the U.S. which would statistically drop the percent per capita in the U.S. Why?
A dead person is a dead person.
The same holds true for the poverty rate in each country:
Mexico 37,000,000
United States 37,000,000
Any kid that has to go to bed hungry is a criminal statistic and per capita doesn't mean squat.
Mexico's big hope: get 5 million U.S. retirees
BY ANDRES OPPENHEIMER
aoppenheimer@MiamiHerald.com
MEXICO CITY -- Mexico is silently working on proposals aimed at drawing millions of U.S. retirees to this country, which could eventually lead to the most ambitious U.S.-Mexican project since the 1994 North American Free Trade Agreement.
President Felipe Calderón is likely to propose the first steps toward expanding U.S. retirement benefits and medical tourism to Mexico when he goes to Washington on an official visit May 19, according to well-placed officials here. If not then, he will raise the issue later this year, they say.
``It's one of the pillars of our plans to trigger economic and social well-being in both countries,'' Mexico's ambassador to the United States Arturo Sarukhan told me. ``We will be seeking to increasingly discuss this issue in coming months and years.''
Calderón brought it up during a U.S.-Canada-Mexico summit in Guadalajara in August last year, but President Barack Obama asked him to shelve the idea until he was able to pass healthcare reform, another official told me.
Now that Congress has passed healthcare reform, Calderón is preparing to charge ahead.
A GROWING MARKET
There are already an estimated 1 million Americans living in Mexico. And according to Mexican government estimates based on U.S. Census figures, that number is likely to soar to 5 million by 2025 as the U.S. population grows older and more Americans look for sunny, cheaper places to retire.
The U.S. Census projects that the number of U.S. retirees will soar from 40 million now to nearly 90 million by 2050. Already, 5 million American retirees live abroad, of whom 2.2 million are in the Western Hemisphere -- mostly in Mexico, the Dominican Republic and Brazil. Another 1.5 million live in Europe and 850,000 in Asia.
The key to luring more U.S. medical tourists and retirees to Mexico and other Latin American countries will be getting hospitals in the region to be certified by the U.S. Joint International Commission, which establishes that they meet U.S. hospitals' standards. There are already eight Mexican hospitals certified by the JIC and several others awaiting certification.
According to Mexican government estimates, healthcare costs in Mexico are about 70 percent lower than in the United States. And from my own experience, those estimates are right: As I reported at the time, when I was hospitalized in Mexico two years ago for an emergency operation, my hospital bill was indeed about 70 percent lower than what it would have been in Miami.
So what will Calderón specifically propose to Obama? Most likely, the Mexican president will suggest starting with a low-profile agreement that would allow the U.S. Health Care Financing Administration to pay for Medicare benefits to U.S. retirees in Mexico. Under current rules, Medicare only covers healthcare services in the United States.
IT JUST MAKES SENSE
My opinion: Mexico and much of Latin America are bound to become growing U.S. retirement and medical tourism destinations, much like Spain has become a permanent living place for Germans, Britons and Northern Europeans.
You won't read much about it now because neither Calderón nor Obama will emphasize it publicly while the drug-related violence in northern Mexico is making big headlines, and while the political wounds from the recent U.S. healthcare debate are still open in Washington, D.C.
But I'm increasingly convinced that, as the violence in Mexico subsides and the healthcare debate becomes a distant memory in Washington, medical benefits' deals will become a top U.S.-Latin American priority. Just as free-trade agreements were the big thing of the 1990s, healthcare agreements will be the big deal of the coming decade.
I wouldn't be surprised if Calderón and Obama take the first baby steps toward a U.S.-Mexico healthcare agreement by finding a way to pay for Medicare benefits for U.S. expatriates in Mexico, or getting U.S. states to allow similar payments. Then, most likely after the 2012 presidential election in both countries, the two would start negotiating a more ambitious deal.
Demography, geography and economics are pointing in that direction. With the U.S. population getting older, a record U.S. budget deficit, rising U.S. healthcare costs, and Mexico and other Latin American countries badly needing more tourism and investments, this should be a win-win for everybody.
Read more: http://www.miamiherald.com/2010/04/17/1584887/mexicos-big-hope-get-5-million.html#ixzz0lV1svRnG
aoppenheimer@MiamiHerald.com
MEXICO CITY -- Mexico is silently working on proposals aimed at drawing millions of U.S. retirees to this country, which could eventually lead to the most ambitious U.S.-Mexican project since the 1994 North American Free Trade Agreement.
President Felipe Calderón is likely to propose the first steps toward expanding U.S. retirement benefits and medical tourism to Mexico when he goes to Washington on an official visit May 19, according to well-placed officials here. If not then, he will raise the issue later this year, they say.
``It's one of the pillars of our plans to trigger economic and social well-being in both countries,'' Mexico's ambassador to the United States Arturo Sarukhan told me. ``We will be seeking to increasingly discuss this issue in coming months and years.''
Calderón brought it up during a U.S.-Canada-Mexico summit in Guadalajara in August last year, but President Barack Obama asked him to shelve the idea until he was able to pass healthcare reform, another official told me.
Now that Congress has passed healthcare reform, Calderón is preparing to charge ahead.
A GROWING MARKET
There are already an estimated 1 million Americans living in Mexico. And according to Mexican government estimates based on U.S. Census figures, that number is likely to soar to 5 million by 2025 as the U.S. population grows older and more Americans look for sunny, cheaper places to retire.
The U.S. Census projects that the number of U.S. retirees will soar from 40 million now to nearly 90 million by 2050. Already, 5 million American retirees live abroad, of whom 2.2 million are in the Western Hemisphere -- mostly in Mexico, the Dominican Republic and Brazil. Another 1.5 million live in Europe and 850,000 in Asia.
The key to luring more U.S. medical tourists and retirees to Mexico and other Latin American countries will be getting hospitals in the region to be certified by the U.S. Joint International Commission, which establishes that they meet U.S. hospitals' standards. There are already eight Mexican hospitals certified by the JIC and several others awaiting certification.
According to Mexican government estimates, healthcare costs in Mexico are about 70 percent lower than in the United States. And from my own experience, those estimates are right: As I reported at the time, when I was hospitalized in Mexico two years ago for an emergency operation, my hospital bill was indeed about 70 percent lower than what it would have been in Miami.
So what will Calderón specifically propose to Obama? Most likely, the Mexican president will suggest starting with a low-profile agreement that would allow the U.S. Health Care Financing Administration to pay for Medicare benefits to U.S. retirees in Mexico. Under current rules, Medicare only covers healthcare services in the United States.
IT JUST MAKES SENSE
My opinion: Mexico and much of Latin America are bound to become growing U.S. retirement and medical tourism destinations, much like Spain has become a permanent living place for Germans, Britons and Northern Europeans.
You won't read much about it now because neither Calderón nor Obama will emphasize it publicly while the drug-related violence in northern Mexico is making big headlines, and while the political wounds from the recent U.S. healthcare debate are still open in Washington, D.C.
But I'm increasingly convinced that, as the violence in Mexico subsides and the healthcare debate becomes a distant memory in Washington, medical benefits' deals will become a top U.S.-Latin American priority. Just as free-trade agreements were the big thing of the 1990s, healthcare agreements will be the big deal of the coming decade.
I wouldn't be surprised if Calderón and Obama take the first baby steps toward a U.S.-Mexico healthcare agreement by finding a way to pay for Medicare benefits for U.S. expatriates in Mexico, or getting U.S. states to allow similar payments. Then, most likely after the 2012 presidential election in both countries, the two would start negotiating a more ambitious deal.
Demography, geography and economics are pointing in that direction. With the U.S. population getting older, a record U.S. budget deficit, rising U.S. healthcare costs, and Mexico and other Latin American countries badly needing more tourism and investments, this should be a win-win for everybody.
Read more: http://www.miamiherald.com/2010/04/17/1584887/mexicos-big-hope-get-5-million.html#ixzz0lV1svRnG
Friday, April 16, 2010
Follow the Money: Why the U.S. Mainstream Media has Mexico Under Seige
by Charles Simpson, Mexinvestnow.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
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
Mexico’s tourist zones much safer than many in U.S.
by Pete Thomas
04/15/2009/3:09 pm
Now Mexico’s real estate industry is fighting back. A day before President Barack Obama visits Mexico to discuss, among other things, the troublesome drug war issue, RE/MAX Investment Properties issued the results of its research claiming that tourist zones in Mexico are up to 26 times safer than many tourist zones in the United States.
Among its findings: The state of Baja California Sur, which includes some of my favorite destinations such as Cabo San Lucas, La Paz and Loreto, has a homicide rate 26 times lower than Orlando, 18 times lower than Miami, 17 times lower than West Palm Beach and 12 times lower than Tampa and Honolulu.
(Note to self: Stay away from Florida!)
Almost ditto for Quintana Roo, which includes Cancun and the Riviera Maya.
The report used some of the same sources Outposts has used, including a daily tally of drug cartel-related homicides kept by Excelsior newspaper, which through Tuesday listed only one homicide in 2009 in Baja California Sur (compared with 115 in the northern state of Baja California, which includes Tijuana), and four in Quintana Roo.
The report also states that BCS has a homicide rate 39 times lower than Washington D.C., 19 times lower than Houston and 17 times lower than Dallas. There’s lots more but the point is as clear as a glass full of blanco tequila, which may or may not be offered to Obama
04/15/2009/3:09 pm
Now Mexico’s real estate industry is fighting back. A day before President Barack Obama visits Mexico to discuss, among other things, the troublesome drug war issue, RE/MAX Investment Properties issued the results of its research claiming that tourist zones in Mexico are up to 26 times safer than many tourist zones in the United States.
Among its findings: The state of Baja California Sur, which includes some of my favorite destinations such as Cabo San Lucas, La Paz and Loreto, has a homicide rate 26 times lower than Orlando, 18 times lower than Miami, 17 times lower than West Palm Beach and 12 times lower than Tampa and Honolulu.
(Note to self: Stay away from Florida!)
Almost ditto for Quintana Roo, which includes Cancun and the Riviera Maya.
The report used some of the same sources Outposts has used, including a daily tally of drug cartel-related homicides kept by Excelsior newspaper, which through Tuesday listed only one homicide in 2009 in Baja California Sur (compared with 115 in the northern state of Baja California, which includes Tijuana), and four in Quintana Roo.
The report also states that BCS has a homicide rate 39 times lower than Washington D.C., 19 times lower than Houston and 17 times lower than Dallas. There’s lots more but the point is as clear as a glass full of blanco tequila, which may or may not be offered to Obama
Sunday, April 4, 2010
Why Mexico for Retirement
Why Mexico for Retirement
According to Fortune Magazine :
"...leaving the U.S. can be a way to double your retirement dollar. Pick the right country, and you may be able to trade up to a larger house, get a pool, hire servants--and guarantee visits from your kids. Mexico is bargain numero uno. A newly retired couple can set up housekeeping for $1,500 a month--$500 each for living expenses and $500 to rent a house."
"When Mexico recently firmed up laws for foreigners to own land through bank trusts, the floodgates opened... A beachfront lot 30 miles up the coast in southern California would cost you several million dollars. South of the border, a spot on the beach can cost you less than $100,000."
--CBS Evening News
Retire to the land of peasant uprisings and economic chaos? Americans are finding the reality behind the media image to be tremendously appealing: The weather's great, the people are warm and a devalued peso makes them instantly richer.
-- U.S. News and World Report
"The gringos are moving where the living is easy... They move south not so much in pursuit of the sun, which they could find just as easily in Florida or Arizona, but in a search for a cheaper way of life"
-- The Economist
According to Fortune Magazine :
"...leaving the U.S. can be a way to double your retirement dollar. Pick the right country, and you may be able to trade up to a larger house, get a pool, hire servants--and guarantee visits from your kids. Mexico is bargain numero uno. A newly retired couple can set up housekeeping for $1,500 a month--$500 each for living expenses and $500 to rent a house."
"When Mexico recently firmed up laws for foreigners to own land through bank trusts, the floodgates opened... A beachfront lot 30 miles up the coast in southern California would cost you several million dollars. South of the border, a spot on the beach can cost you less than $100,000."
--CBS Evening News
Retire to the land of peasant uprisings and economic chaos? Americans are finding the reality behind the media image to be tremendously appealing: The weather's great, the people are warm and a devalued peso makes them instantly richer.
-- U.S. News and World Report
"The gringos are moving where the living is easy... They move south not so much in pursuit of the sun, which they could find just as easily in Florida or Arizona, but in a search for a cheaper way of life"
-- The Economist
Friday, March 26, 2010
Survey finds that many U.S. retirees in Mexico live comfortably for less than $1,000 a month
This month, the National City-based International Community Foundation released findings of a survey they conducted of more than 840 senior retirees in coastal areas of Mexico who are over the age of 50. I’m republishing here portions of the Foundation press release that was posted on their web site:
U.S. retirees in Mexico are relatively young and well-educated. Nearly 53% are under 65 years of age (and, in fact, 80% are 69 years or younger), perhaps indicating that Mexico may not be as attractive for older Americans that require additional medical care. In addition, almost two-thirds have at least a college degree, and another 28% had attended at least one-year of college.
The respondents chose Mexico for retirement due to its proximity to the United States and its affordability relative to other U.S. retirement destinations.
U.S. retirees residing in Mexico continue to maintain strong ties to the U.S.: 50% consider the U.S. their primary country of residency, and almost 22% return to the U.S. on a monthly basis. 85% remain in contact with friends and family in the U.S. through the internet, 64% used the telephone, and 33% used Skype.
Retirees living in Mexico are worldly and world-wise. Of those that had considered retirement locations other than Mexico, 41% considered retiring in Central America or the Caribbean; 19% considered other non-U.S. destinations as possible retirement locations. Should quality of life decline in Mexico, those that are financially able could begin to look elsewhere.
Mexico may become an alternative for those U.S. retirees facing economic challenges in the future. While survey results and focus group participants clearly express that economic reasons were a major factor in leading them south of the U.S.-Mexico border, the potential is likely greater than is being realized. In 2007, the California Elder Economic Security Standard Index (a financial measure that indicates basic financial needs for seniors in California) ranged from $21,000-$27,500 as the minimum needed for major California cities. The survey results show that nearly 44% of U.S. coastal retirees in Mexico live comfortably on less than $1,000 per month – an amount which underscores the potential demand for retirement options for low and middle income retirees in Mexico.
For more on the survey, go to the ICF website or read this story by San Diego Union-Tribune reporter Sandra Dibble.
U.S. retirees in Mexico are relatively young and well-educated. Nearly 53% are under 65 years of age (and, in fact, 80% are 69 years or younger), perhaps indicating that Mexico may not be as attractive for older Americans that require additional medical care. In addition, almost two-thirds have at least a college degree, and another 28% had attended at least one-year of college.
The respondents chose Mexico for retirement due to its proximity to the United States and its affordability relative to other U.S. retirement destinations.
U.S. retirees residing in Mexico continue to maintain strong ties to the U.S.: 50% consider the U.S. their primary country of residency, and almost 22% return to the U.S. on a monthly basis. 85% remain in contact with friends and family in the U.S. through the internet, 64% used the telephone, and 33% used Skype.
Retirees living in Mexico are worldly and world-wise. Of those that had considered retirement locations other than Mexico, 41% considered retiring in Central America or the Caribbean; 19% considered other non-U.S. destinations as possible retirement locations. Should quality of life decline in Mexico, those that are financially able could begin to look elsewhere.
Mexico may become an alternative for those U.S. retirees facing economic challenges in the future. While survey results and focus group participants clearly express that economic reasons were a major factor in leading them south of the U.S.-Mexico border, the potential is likely greater than is being realized. In 2007, the California Elder Economic Security Standard Index (a financial measure that indicates basic financial needs for seniors in California) ranged from $21,000-$27,500 as the minimum needed for major California cities. The survey results show that nearly 44% of U.S. coastal retirees in Mexico live comfortably on less than $1,000 per month – an amount which underscores the potential demand for retirement options for low and middle income retirees in Mexico.
For more on the survey, go to the ICF website or read this story by San Diego Union-Tribune reporter Sandra Dibble.
Tuesday, March 23, 2010
Paradise, a buyer’s market and place to call home
When you think about curbside appeal, do palm trees, powdery white sand and crystal ocean blue come to mind? If so, you’re not alone. More and more people are buying property every day in places like Tulum, a quiet village 80 miles south of Cancún on Mexico’s Yucatán peninsula, adding Caribbean coastline to their real estate portfolios. Rich in ancient Mayan history, local lore has it that Tulum’s settlers chose its name (the Mayan word for “wall”) because of the giant bluffs that mark its topography. The combination of soaring rocky cliffs and deep azure water surrounding it makes the area an idyllic place to call home.
Sian Ka'an Biosphere in Tulum
For some, the idea of buying foreign land may seem like a pipe dream, but not for Vicki White, who lives in Orlando, Florida most of the year. No stranger to Mexico’s beautiful beaches and romantic getaways, when a property located just outside the Tulum pueblo in Chan Chemyuil became available White decided to give it a look. “Four or five years ago oceanfront was going for $30K. I’ve watched several opportunities go by.” Today’s seaside properties are out of her price range, but this place was close enough to make beach life an easy part of her days. She wasn’t going to let it slip away.
White bought the two-bedroom, one-bathroom house for a scant $39,900. With its smaller kitchen, she estimates the size at just under 1,000 square feet. She says it works just fine for her—and those companions lucky enough to be invited as house guests. Groceries and other shopping needs require a quick trip into Tulum, about a 10 minute drive.
As a design studio manager at a construction company, White knows a thing or two about pulling off a home’s aesthetic appeal. But doing it on a tight budget wasn’t as easy as she had imagined. “Outfitting a house is the biggest challenge,” she says. “I thought things would be cheap down there, but they’re not.” When she purchased appliances in Playa Del Carmen, White was surprised that no one spoke English. “That transaction took about an hour,” she says. The upside: White ultimately got a price break on her appliances, making it time well spent.
Making the decision to buy was not an easy one and the risks were many, but this self-proclaimed beach bum decided a little risk could be well worth it. “The interesting thing was this community sat for years, and after resurrection, sold out in about six months,” she says. Taking the plunge meant there were a lot of leaps of faith needed to make her dream a reality. When she was finally ready, White wired $10,000 to her realtor, waited for an e-mail confirmation of the transaction and never looked back, even when she had a good reason to. “When we purchased, the front door was open and it was trashed,” says White. “Stuff had blown in and there were water stains on the walls.”
But this fixer-upper came with an “options list” for the needed home improvements. White opted for new windows, getting the roof sealed and having a gas water heater installed. She spent an extra $15,000 to fix up the place and when all was said and done, White spent a total of $45,000, including closing costs. She moved in in July 2008 and says she is looking forward to seeing her beach buds.
When describing her vacation home White says, “there’s not much to it; but a shack near the Caribbean ocean is still better than a good day at work.”
Both the North American Free Trade Agreement (NAFTA) and Mexico’s Foreign Investment Law (FIL) have relaxed bans that once prevented foreigners from owning property there. Non-citizens of Mexico can now obtain legal ownership of property but must use the help of a Mexican bank to do so. A good attorney and/or real estate agent with local knowledge is also a must.
Location dictates the process for foreign real estate purchases in Mexico. The area commonly referred to as the “restricted zone” stretches about 62 miles from Mexico’s borders and 31 miles from her coastlines. Under Mexican law real estate purchased in those areas must be held in a fideicomiso, or bank trust, which is set up by an attorney in Mexico. A foreigner’s title must be held by a bank. After 50 years, the bank trust expires and must be renewed, according to current law.
The process is complicated but ultimately is a win-win for both the Mexican government and foreign investors because it attracts investment while giving buyers legal ties to their property and the investment protections they need.
Tulum Beach Real Estate Investment Properties
Rob Kinnon and wife Michele finished building their home in Playa del Carmen, halfway between Cancún and Tulum, in 2007. Originally from upstate New York, the couple considers Playa their permanent home now after four years in residence. Together they enjoy their life in Mexico and their new status as expats. Michele takes photos and updates her blog almost daily while Rob runs Bric International, a real estate brokerage firm.
Rob says the procedures for obtaining a title to land in Mexico are nothing like those in the U.S. It’s a complicated process and it’s better not to expect things to be done the American way. When in Mexico, do as the Mexicans do. Rob advises that it helps to understand Mexico’s customs and laws before jumping into the sea of Mexican real estate legal-speak. Transactions should be handled by a licensed Mexican attorney who works with the buyer and their real estate agent.
Some people will make mistakes when buying foreign properties. But Kinnon says risks can be minimized with a little common sense. For starters, taking your time puts you in the driver’s seat. He says missteps most often happen when people purchase on impulse and have not gotten good legal advice.
Trust is another factor that should not be underestimated, whether it’s in your own instincts or trusting others involved in the transaction. Kinnon advises that people tap into that sixth sense when working with realtors and attorneys. If you feel uncomfortable in the process, listen to your gut, says Kinnon. If it means kill the deal, as disappointing as it may be, listen to that little voice; it’s there for a reason. ”If you meet an attorney and you feel another attorney,” Kinnon cautions.
One might be tempted to think that buying foreign land complete with a custom home can only be a dream. But Cameron Crow, Director of Sales at the Los Arboles Tulum development, would disagree. Five acre parcels with a custom home are going for a little over $200,000, a fraction of what they would cost in the U.S. He says Mexico has much to offer as an up-and-coming location. “Mexico is an emerging economy with lots of room to grow,” said Crow. “There is a lot of opportunity in Mexico—it’s like a gold rush.”
Everyone’s coming to town, especially the banks. Lending institutions currently offering mortgages in Mexico include: GE Money, U.S. Laredo National Bank, U.S. Scotia Bank, Canada Source: Bric International
Crow is not alone in his thinking. As an investment, other real estate professionals agree that, compared to most other places on the “Mexican Riviera,” Tulum helps buyers keep more green in their pockets.
Roberto Rivas Bastidas, a realtor who operates out of RE/MAX, estimates that building costs for custom homes are about $100 per square foot, prices nearly impossible to come by in most better American neighborhoods. When asked whether those prices reflect luxury items like granite countertops, he says yes, such
amenities are quite common.
“For $200,000, you can have a really nice custom home built to your specifications,” Rivas says. He adds that these developments are generally about two-and-a-half miles from the beach and are zoned as either single-family homes or condos.
What’s even more encouraging is that property values in Tulum net a cozy return that is generally unheard of in the U.S. “Whoever invested in real estate in the February [2008] timeframe is seeing a 20 to 25 percent increase in the value of their property,” claims Rivas. Early investors who plunked down their cash around 2006 are doing even better, netting around 100 percent increases in their investments, he adds.
Housing options in Tulum abound with a little bit of everything from single-family homes and condos to fixeruppers. But if traditional digs aren’t your style, something off the beaten path can be arranged. Picture thick jungle, lush sprawling treetop canopies, eco-friendly housing complete with a small lot and plenty of bug spray to really enjoy what the Yucatán peninsula has to offer.
Location, cubed, is the motto in real estate and Los Arboles Tulum has that handled nicely. Nestled on the perimeter of the Sian Ka’an preserve, a 1.6 million acre nature sanctuary, Crow and his associates knew they had a gem when they landed this development. And the pristine land next to it would only sweeten the deal for both the buyer and seller. The “low-impact, ecologically sensitive” housing community offers cutting-edge green solutions suitable for almost any environmentalist, pre, post or of the reborn-type. Each five-acre home site has specific guidelines allowing only five percent of the parcel to be used for building. Located off the power-grid, the homes are solar-powered and require homeowners to treat their own waste water, according to Crow. And an added bonus: the transaction includes title.
Jungle Real Estate in Tulum
In many places, from Mexico’s Cancún and Playa del Carmen to Florida’s coast and the northern Mediterranean, real estate near the water is virtually untouchable due to high prices and overdevelopment. But that’s not so in Tulum with its pristine beaches that few know about. Now even that secret is creeping out of the bag. Crow says you’re looking at about a $2 million investment for beachfront property on the Yucatán peninsula, but developments like Los Arboles, only about 15 minutes from the beach by car, are a much more affordable catch.
With undeveloped charm that appeals to many people, the deals are not likely to last forever. Crow says sales are exceptionally strong with 45 of 51 lots under contract with deposits. “I’m selling ’em like crazy; I need to raise the price,” he notes. Plans to up the lot prices from $55K to $65K are in the works to simply keep up with rising demand.
——————————————–
The mystical charms of Tulum have attracted nature lovers and adventurers for generations and now with the recently launched Tulum Eco Community called Aldea Zama, it promises to bring year round visitors and residents. These new options of land for sale in Tulum Mexico are transforming the real estate market for this small Mexican Caribbean community. Pleasure seekers are drawn by the allure of Aldea Zama and its’ unspoiled Tulum Mexico Land with year-round sunshine, fascinating archeological treasures, Mayan history and culture, friendly faces, exotic jungles and pristine white-sand beaches.
Tulum Ruins are under 5 miles from Aldea Zama
Today the past is about to embrace the future. There is a new vision in this land that promises to be rich in quality and upbeat in lifestyle. The Tulum Investment Market is attracting people from Europe, from Canada, the United States and all regions of the world. The land for sale in Tulum has been quoted by some as having the highest appreciation potential in all of Mexico.
Invest in Tulum, Mexico. Invest in the land for sale in Tulum. Invest in Aldea Zama, the new and vibrant eco community development of the Riviera Maya region.
By Elise Oberliesen
Sian Ka'an Biosphere in Tulum
For some, the idea of buying foreign land may seem like a pipe dream, but not for Vicki White, who lives in Orlando, Florida most of the year. No stranger to Mexico’s beautiful beaches and romantic getaways, when a property located just outside the Tulum pueblo in Chan Chemyuil became available White decided to give it a look. “Four or five years ago oceanfront was going for $30K. I’ve watched several opportunities go by.” Today’s seaside properties are out of her price range, but this place was close enough to make beach life an easy part of her days. She wasn’t going to let it slip away.
White bought the two-bedroom, one-bathroom house for a scant $39,900. With its smaller kitchen, she estimates the size at just under 1,000 square feet. She says it works just fine for her—and those companions lucky enough to be invited as house guests. Groceries and other shopping needs require a quick trip into Tulum, about a 10 minute drive.
As a design studio manager at a construction company, White knows a thing or two about pulling off a home’s aesthetic appeal. But doing it on a tight budget wasn’t as easy as she had imagined. “Outfitting a house is the biggest challenge,” she says. “I thought things would be cheap down there, but they’re not.” When she purchased appliances in Playa Del Carmen, White was surprised that no one spoke English. “That transaction took about an hour,” she says. The upside: White ultimately got a price break on her appliances, making it time well spent.
Making the decision to buy was not an easy one and the risks were many, but this self-proclaimed beach bum decided a little risk could be well worth it. “The interesting thing was this community sat for years, and after resurrection, sold out in about six months,” she says. Taking the plunge meant there were a lot of leaps of faith needed to make her dream a reality. When she was finally ready, White wired $10,000 to her realtor, waited for an e-mail confirmation of the transaction and never looked back, even when she had a good reason to. “When we purchased, the front door was open and it was trashed,” says White. “Stuff had blown in and there were water stains on the walls.”
But this fixer-upper came with an “options list” for the needed home improvements. White opted for new windows, getting the roof sealed and having a gas water heater installed. She spent an extra $15,000 to fix up the place and when all was said and done, White spent a total of $45,000, including closing costs. She moved in in July 2008 and says she is looking forward to seeing her beach buds.
When describing her vacation home White says, “there’s not much to it; but a shack near the Caribbean ocean is still better than a good day at work.”
Both the North American Free Trade Agreement (NAFTA) and Mexico’s Foreign Investment Law (FIL) have relaxed bans that once prevented foreigners from owning property there. Non-citizens of Mexico can now obtain legal ownership of property but must use the help of a Mexican bank to do so. A good attorney and/or real estate agent with local knowledge is also a must.
Location dictates the process for foreign real estate purchases in Mexico. The area commonly referred to as the “restricted zone” stretches about 62 miles from Mexico’s borders and 31 miles from her coastlines. Under Mexican law real estate purchased in those areas must be held in a fideicomiso, or bank trust, which is set up by an attorney in Mexico. A foreigner’s title must be held by a bank. After 50 years, the bank trust expires and must be renewed, according to current law.
The process is complicated but ultimately is a win-win for both the Mexican government and foreign investors because it attracts investment while giving buyers legal ties to their property and the investment protections they need.
Tulum Beach Real Estate Investment Properties
Rob Kinnon and wife Michele finished building their home in Playa del Carmen, halfway between Cancún and Tulum, in 2007. Originally from upstate New York, the couple considers Playa their permanent home now after four years in residence. Together they enjoy their life in Mexico and their new status as expats. Michele takes photos and updates her blog almost daily while Rob runs Bric International, a real estate brokerage firm.
Rob says the procedures for obtaining a title to land in Mexico are nothing like those in the U.S. It’s a complicated process and it’s better not to expect things to be done the American way. When in Mexico, do as the Mexicans do. Rob advises that it helps to understand Mexico’s customs and laws before jumping into the sea of Mexican real estate legal-speak. Transactions should be handled by a licensed Mexican attorney who works with the buyer and their real estate agent.
Some people will make mistakes when buying foreign properties. But Kinnon says risks can be minimized with a little common sense. For starters, taking your time puts you in the driver’s seat. He says missteps most often happen when people purchase on impulse and have not gotten good legal advice.
Trust is another factor that should not be underestimated, whether it’s in your own instincts or trusting others involved in the transaction. Kinnon advises that people tap into that sixth sense when working with realtors and attorneys. If you feel uncomfortable in the process, listen to your gut, says Kinnon. If it means kill the deal, as disappointing as it may be, listen to that little voice; it’s there for a reason. ”If you meet an attorney and you feel another attorney,” Kinnon cautions.
One might be tempted to think that buying foreign land complete with a custom home can only be a dream. But Cameron Crow, Director of Sales at the Los Arboles Tulum development, would disagree. Five acre parcels with a custom home are going for a little over $200,000, a fraction of what they would cost in the U.S. He says Mexico has much to offer as an up-and-coming location. “Mexico is an emerging economy with lots of room to grow,” said Crow. “There is a lot of opportunity in Mexico—it’s like a gold rush.”
Everyone’s coming to town, especially the banks. Lending institutions currently offering mortgages in Mexico include: GE Money, U.S. Laredo National Bank, U.S. Scotia Bank, Canada Source: Bric International
Crow is not alone in his thinking. As an investment, other real estate professionals agree that, compared to most other places on the “Mexican Riviera,” Tulum helps buyers keep more green in their pockets.
Roberto Rivas Bastidas, a realtor who operates out of RE/MAX, estimates that building costs for custom homes are about $100 per square foot, prices nearly impossible to come by in most better American neighborhoods. When asked whether those prices reflect luxury items like granite countertops, he says yes, such
amenities are quite common.
“For $200,000, you can have a really nice custom home built to your specifications,” Rivas says. He adds that these developments are generally about two-and-a-half miles from the beach and are zoned as either single-family homes or condos.
What’s even more encouraging is that property values in Tulum net a cozy return that is generally unheard of in the U.S. “Whoever invested in real estate in the February [2008] timeframe is seeing a 20 to 25 percent increase in the value of their property,” claims Rivas. Early investors who plunked down their cash around 2006 are doing even better, netting around 100 percent increases in their investments, he adds.
Housing options in Tulum abound with a little bit of everything from single-family homes and condos to fixeruppers. But if traditional digs aren’t your style, something off the beaten path can be arranged. Picture thick jungle, lush sprawling treetop canopies, eco-friendly housing complete with a small lot and plenty of bug spray to really enjoy what the Yucatán peninsula has to offer.
Location, cubed, is the motto in real estate and Los Arboles Tulum has that handled nicely. Nestled on the perimeter of the Sian Ka’an preserve, a 1.6 million acre nature sanctuary, Crow and his associates knew they had a gem when they landed this development. And the pristine land next to it would only sweeten the deal for both the buyer and seller. The “low-impact, ecologically sensitive” housing community offers cutting-edge green solutions suitable for almost any environmentalist, pre, post or of the reborn-type. Each five-acre home site has specific guidelines allowing only five percent of the parcel to be used for building. Located off the power-grid, the homes are solar-powered and require homeowners to treat their own waste water, according to Crow. And an added bonus: the transaction includes title.
Jungle Real Estate in Tulum
In many places, from Mexico’s Cancún and Playa del Carmen to Florida’s coast and the northern Mediterranean, real estate near the water is virtually untouchable due to high prices and overdevelopment. But that’s not so in Tulum with its pristine beaches that few know about. Now even that secret is creeping out of the bag. Crow says you’re looking at about a $2 million investment for beachfront property on the Yucatán peninsula, but developments like Los Arboles, only about 15 minutes from the beach by car, are a much more affordable catch.
With undeveloped charm that appeals to many people, the deals are not likely to last forever. Crow says sales are exceptionally strong with 45 of 51 lots under contract with deposits. “I’m selling ’em like crazy; I need to raise the price,” he notes. Plans to up the lot prices from $55K to $65K are in the works to simply keep up with rising demand.
——————————————–
The mystical charms of Tulum have attracted nature lovers and adventurers for generations and now with the recently launched Tulum Eco Community called Aldea Zama, it promises to bring year round visitors and residents. These new options of land for sale in Tulum Mexico are transforming the real estate market for this small Mexican Caribbean community. Pleasure seekers are drawn by the allure of Aldea Zama and its’ unspoiled Tulum Mexico Land with year-round sunshine, fascinating archeological treasures, Mayan history and culture, friendly faces, exotic jungles and pristine white-sand beaches.
Tulum Ruins are under 5 miles from Aldea Zama
Today the past is about to embrace the future. There is a new vision in this land that promises to be rich in quality and upbeat in lifestyle. The Tulum Investment Market is attracting people from Europe, from Canada, the United States and all regions of the world. The land for sale in Tulum has been quoted by some as having the highest appreciation potential in all of Mexico.
Invest in Tulum, Mexico. Invest in the land for sale in Tulum. Invest in Aldea Zama, the new and vibrant eco community development of the Riviera Maya region.
By Elise Oberliesen
Thursday, March 18, 2010
Myths and Facts About Mexico’s Healthcare System
By: Charles Sipe
For foreigners who are considering a move to Mexico, one important concern is the quality of healthcare. Often images of Third World conditions or swine flu emerge when most people think of “healthcare” and “Mexico.” However, the reality is that for foreigners living in Mexico, the quality of healthcare is far from second-rate.
Mexico has both private and public systems of healthcare that are accessible to foreigners.
The Mexican Social Security Institute (IMSS) provides an HMO-style public health care program. The program is open only to Mexican taxpayers who pay Social Security through their employer and qualified resident retirees (including foreigners).
For a low annual flat fee, participants have access to a health care plan with no limits, no deductibles, no charge for virtually all medicine, tests, X-rays, eyeglasses and dental coverage. Pre-existing conditions are not covered for the first two years but virtually all (with the exception of a very few) medical care costs are covered by the annual fee.
IMSS hospitals do not offer the same frills that US hospitals do, such as in-room phones and televisions, and some require that family members assist patients with non-medical tasks. In most cases, doctors and nurses only speak in Spanish but the quality of health care is often good and with the government increasing its spending on healthcare, it is expected that the quality and access to care will improve. Many US retirees living in Mexico purchase IMSS coverage as a cheap form of insurance against medical emergencies, while traveling back to the US for less urgent care.
Private health systems or insurers provide wealthy and middle class Mexicans and foreigners working or residing in Mexico with access to high quality, state of the art medical services. Typically services are provided on a cash basis or through payment plans. Still costs for these high end services are often much lower than if the same procedure were done in the US. Often doctors and staff at these facilities have an excellent medical education and have trained abroad in Europe or North America. This is a growing sector of Mexico’s economy and many Mexicans who are insured through the IMSS system pay out of pocket to access these services. Top facilities are located in Mexico City, Guadalajara and Monterrey.
Also See:
How Mexico’s Health System Works CBC News
For foreigners who are considering a move to Mexico, one important concern is the quality of healthcare. Often images of Third World conditions or swine flu emerge when most people think of “healthcare” and “Mexico.” However, the reality is that for foreigners living in Mexico, the quality of healthcare is far from second-rate.
Mexico has both private and public systems of healthcare that are accessible to foreigners.
The Mexican Social Security Institute (IMSS) provides an HMO-style public health care program. The program is open only to Mexican taxpayers who pay Social Security through their employer and qualified resident retirees (including foreigners).
For a low annual flat fee, participants have access to a health care plan with no limits, no deductibles, no charge for virtually all medicine, tests, X-rays, eyeglasses and dental coverage. Pre-existing conditions are not covered for the first two years but virtually all (with the exception of a very few) medical care costs are covered by the annual fee.
IMSS hospitals do not offer the same frills that US hospitals do, such as in-room phones and televisions, and some require that family members assist patients with non-medical tasks. In most cases, doctors and nurses only speak in Spanish but the quality of health care is often good and with the government increasing its spending on healthcare, it is expected that the quality and access to care will improve. Many US retirees living in Mexico purchase IMSS coverage as a cheap form of insurance against medical emergencies, while traveling back to the US for less urgent care.
Private health systems or insurers provide wealthy and middle class Mexicans and foreigners working or residing in Mexico with access to high quality, state of the art medical services. Typically services are provided on a cash basis or through payment plans. Still costs for these high end services are often much lower than if the same procedure were done in the US. Often doctors and staff at these facilities have an excellent medical education and have trained abroad in Europe or North America. This is a growing sector of Mexico’s economy and many Mexicans who are insured through the IMSS system pay out of pocket to access these services. Top facilities are located in Mexico City, Guadalajara and Monterrey.
Also See:
How Mexico’s Health System Works CBC News
Tomorrow’s millionaires are made today; Campeche real estate might be the road
I have been speaking to many investors the past several months about the Campeche real estate market. In the conversations it brings to mind that many people out there are scrambling to make sense of the economic mess created over the last few years, the smart money investors have already keyed in on when and where to begin reinvesting. Time has taught us all that our lives are cyclical. Case in point: bell bottom pants, recessionary times and historically low interest rates. Though some things fade in and out, one inevitable rule has always remained true when it comes to real estate investing, even here in the Mexico real estate market: location, location, location.
Whether you are buying your first home or you are a seasoned international real estate investor, this has always been and will always be the golden rule of real estate. One model of success that has created millionaires such as H. Ross Perot, Colonel Sanders, Hewlett and Packard, Babe Ruth, Howard Hughes and Joe Kennedy is to buy low and sell high. When and where did these real estate tycoons do this? You might be surprised at the answer. It was not during the best of economic times, in fact, it was at the worst of economic times. It was during the great depression. It is no secret that economic downturns create once- in- a- lifetime opportunities to amass huge sums of wealth and the most common vehicle to do such has always been real estate investing. During the great depression, real estate demand was low and therefore prices were also low. Those visionaries who were “liquid” had the opportunity to snatch up incredible pieces of real estate at rock bottom prices, knowing the price would once again be going up….way up.
“Foreclosure by the banks has been the order of the day. Day after day real estate can be bought for the price of the first mortgage and there are no bidders except the bank which holds the first mortgage. In this way the banks are becoming the holders of huge quantities of real estate.”**
Does this sound like a headline from today’s paper? Certainly an all too common statement about our current economic crisis, but this was written about economic conditions in 1929 and the years following.
So the “when” is evident. Our economy has once again created the perfect opportunity for visionaries to buy low and sell high. Just as the aforementioned millionaires took advantage of the opportunity that faced them 80 years ago and became our “economic heroes” of today, we too stare opportunity in the face and have the chance to buy incredible pieces of Mexico Real Estate at bargain prices and therefore creating a portfolio worth millions.
The lone question then remains “where” do I invest? The economic crisis has been a global one and therefore creating opportunities throughout the world, but where can the “little guy” feel safe to invest knowing his money is secure and growing? Many factors must be taken into consideration when investing in real estate, especially internationally. Several markets are now prime for a dramatic increase in real estate prices. Many of the places in the United States and Canada are still over priced and the insecurity of the market falling even lower and a slow recovery time do not make most of these areas a logical choice. One area that has drawn international attention for real estate investing because of its low prices, prime real estate, strong and growing economy, location, climate is Mexico. The Mexico real estate market is large and a geographically diverse country with many beautiful areas. The most expensive and most sought after real estate in the world is beach front property and mexico beachfront real estate offers some of the world’s most beautiful areas. Combine inexpensive Mexico beachfront properties with a cheap labor force, warm year round tropical climate and state of the art health care and you have a gold mine in the making. American and Canadian baby boomers are buying up Mexico beachfront at astonishing speed sending prices through the roof, but there are stretches of beautiful white sandy beachfront properties lining emerald waters still available at bargain prices as low as $55,000 usd. now is the time to act, to secure your future to take advantage of this once-in-a-lifetime opportunity created by our economy.
By Bob Mc Cain
Whether you are buying your first home or you are a seasoned international real estate investor, this has always been and will always be the golden rule of real estate. One model of success that has created millionaires such as H. Ross Perot, Colonel Sanders, Hewlett and Packard, Babe Ruth, Howard Hughes and Joe Kennedy is to buy low and sell high. When and where did these real estate tycoons do this? You might be surprised at the answer. It was not during the best of economic times, in fact, it was at the worst of economic times. It was during the great depression. It is no secret that economic downturns create once- in- a- lifetime opportunities to amass huge sums of wealth and the most common vehicle to do such has always been real estate investing. During the great depression, real estate demand was low and therefore prices were also low. Those visionaries who were “liquid” had the opportunity to snatch up incredible pieces of real estate at rock bottom prices, knowing the price would once again be going up….way up.
“Foreclosure by the banks has been the order of the day. Day after day real estate can be bought for the price of the first mortgage and there are no bidders except the bank which holds the first mortgage. In this way the banks are becoming the holders of huge quantities of real estate.”**
Does this sound like a headline from today’s paper? Certainly an all too common statement about our current economic crisis, but this was written about economic conditions in 1929 and the years following.
So the “when” is evident. Our economy has once again created the perfect opportunity for visionaries to buy low and sell high. Just as the aforementioned millionaires took advantage of the opportunity that faced them 80 years ago and became our “economic heroes” of today, we too stare opportunity in the face and have the chance to buy incredible pieces of Mexico Real Estate at bargain prices and therefore creating a portfolio worth millions.
The lone question then remains “where” do I invest? The economic crisis has been a global one and therefore creating opportunities throughout the world, but where can the “little guy” feel safe to invest knowing his money is secure and growing? Many factors must be taken into consideration when investing in real estate, especially internationally. Several markets are now prime for a dramatic increase in real estate prices. Many of the places in the United States and Canada are still over priced and the insecurity of the market falling even lower and a slow recovery time do not make most of these areas a logical choice. One area that has drawn international attention for real estate investing because of its low prices, prime real estate, strong and growing economy, location, climate is Mexico. The Mexico real estate market is large and a geographically diverse country with many beautiful areas. The most expensive and most sought after real estate in the world is beach front property and mexico beachfront real estate offers some of the world’s most beautiful areas. Combine inexpensive Mexico beachfront properties with a cheap labor force, warm year round tropical climate and state of the art health care and you have a gold mine in the making. American and Canadian baby boomers are buying up Mexico beachfront at astonishing speed sending prices through the roof, but there are stretches of beautiful white sandy beachfront properties lining emerald waters still available at bargain prices as low as $55,000 usd. now is the time to act, to secure your future to take advantage of this once-in-a-lifetime opportunity created by our economy.
By Bob Mc Cain
Sunday, February 14, 2010
Five Compelling Reasons To Retire To Mexico
Retire to Mexico, one million Americans have already done so. You can count on certain things when you do
1) Americans are liked by the Mexican people…why would they not welcome you? You are spending your retirement dollars in their country…that means jobs and business for Mexico.
2) You will be safe in Mexico. If you would believe the evening news, Mexico is a war zone. Close to the border, where few retire, it is dangerous due to the drug trade. Including the border violence you are 3 times less likely to be a victim of violent crime in Mexico vs the USA.
3) The Mexicans place much emphasis on family and a simple life. You feel that you have gone back in time when you first arrive in Mexico. Mexico is like the US was 30 to 50 years ago. Mexicans get together for family meals and holidays and take the time to enjoy life at a slower pace. There is nothing wrong with that approach to life. The hectic lifestyle in the US has not yet reached Mexico.
4) Not speaking Spanish will not be a problem. If you have the right attitude, you will be able to get by or find someone willing to translate for you. As anywhere a smile will go a long way in Mexico. Having said that, it is to your advantage to try to learn Spanish. You are a guest in Mexico… show some respect and try to learn Spanish… they will appreciate your effort.
5) How about health care? In the US we have the best health care in the world…it is also the most expensive health care in the world. After you have lived in Mexico one year you can apply for IMSS insurance…it will cost you $270 a year for full coverage for doctor visits, hospitalization and prescriptions. many Mexican doctors trained in the US. You will find the level of care to be very good.
So retire to Mexico, where $1500 to $2000 a month, is the average budget to live very well. That is eating out frequently and hiring domestic help. You will also have some company, over one million Americans have already retired to Mexico.
Retiring to Mexico will give you a slower more relaxed pace of life. You will be able to afford a standard of living not possible in the US for the same money. Before you go you should obtain the latest, up-to-date information about Mexico. Many Americans have lived in Mexico for years…take advantage of their experiences. Here is how to obtain that information.
Get your owners guide to Mexico if you want to Retire to Mexico. For further information on Mexico and other enjoyable, cheap ways to retire visit Frugal Retirement Living . You will be glad you did.
by Gary Pierce
1) Americans are liked by the Mexican people…why would they not welcome you? You are spending your retirement dollars in their country…that means jobs and business for Mexico.
2) You will be safe in Mexico. If you would believe the evening news, Mexico is a war zone. Close to the border, where few retire, it is dangerous due to the drug trade. Including the border violence you are 3 times less likely to be a victim of violent crime in Mexico vs the USA.
3) The Mexicans place much emphasis on family and a simple life. You feel that you have gone back in time when you first arrive in Mexico. Mexico is like the US was 30 to 50 years ago. Mexicans get together for family meals and holidays and take the time to enjoy life at a slower pace. There is nothing wrong with that approach to life. The hectic lifestyle in the US has not yet reached Mexico.
4) Not speaking Spanish will not be a problem. If you have the right attitude, you will be able to get by or find someone willing to translate for you. As anywhere a smile will go a long way in Mexico. Having said that, it is to your advantage to try to learn Spanish. You are a guest in Mexico… show some respect and try to learn Spanish… they will appreciate your effort.
5) How about health care? In the US we have the best health care in the world…it is also the most expensive health care in the world. After you have lived in Mexico one year you can apply for IMSS insurance…it will cost you $270 a year for full coverage for doctor visits, hospitalization and prescriptions. many Mexican doctors trained in the US. You will find the level of care to be very good.
So retire to Mexico, where $1500 to $2000 a month, is the average budget to live very well. That is eating out frequently and hiring domestic help. You will also have some company, over one million Americans have already retired to Mexico.
Retiring to Mexico will give you a slower more relaxed pace of life. You will be able to afford a standard of living not possible in the US for the same money. Before you go you should obtain the latest, up-to-date information about Mexico. Many Americans have lived in Mexico for years…take advantage of their experiences. Here is how to obtain that information.
Get your owners guide to Mexico if you want to Retire to Mexico. For further information on Mexico and other enjoyable, cheap ways to retire visit Frugal Retirement Living . You will be glad you did.
by Gary Pierce
Wednesday, February 3, 2010
Mexico Real Estate Financing Options Grow - Mortgages in Euros
Yucatan Real Estate has recently presented a new Mexico Real Estate financing option, offering mortgages in Euros. This move is significant as a part of the growing number of possibilities for foreigners to finance real estate through Mexican banks.
Yucatan Real Estate has recently taken another step forward in the area of mortgages for foreigners. This year, 2010, BBVA Bancomer will become the first bank in Mexico to offer mortgages in Euros. While this move is part of a specific promotion for a real estate development in Campeche, on the Gulf shore of the Yucatan Peninsula, it is an indication of the progress that Mexico Real Estate on the whole has seen recently in the area of mortgages for foreigners through Mexican banking institutions.
Offering mortgages in Euros is a part of Bancomer's sales strategy for the a golf and marina resort in Campeche, being developed by a Spanish group. The President of the developer explained that BBVA Bancomer will provide the financing option to buyers in Europe who are interested in any of the condos or homes that will be part of the eco-tourism mega project that is being built on the Yucatan Peninsula, and will be the largest on the Gulf of Mexico.
This is the first time that mortgages in Euros are being granted in Mexico and BBVA Bancomer is the first Mexican bank to make this offer. The plan was finalized on January 21, 2010.
While the current offer is exclusively for customers of the specific development on the Yucatan, this project holds its key importance as another possibility for foreign real estate buyers who wish to obtain a mortgage through a banking institution in Mexico.
During the past decade, international buyers have seen their options for financing Mexico real estate purchases grow tremendously. Until recently, buyers either had to pay in cash, or seek financing options in their home country. Although regulations are stricter, and the process is longer than in other countries, the fact that Mexico now offers mortgages opens many options for foreigner buyers who wish to keep their funds or properties in their home country free for other investments.
During 2009, more non-Mexican real estate buyers have taken advantage of these options, taking a mortgage from a bank in Mexico itself. As more buyers use this financing tool, and further possibilities are opened, such as the mortgage in Euros that is currently being introduced in Yucatan, even more buyers will begin to see this a viable financing option
Yucatan Real Estate has recently taken another step forward in the area of mortgages for foreigners. This year, 2010, BBVA Bancomer will become the first bank in Mexico to offer mortgages in Euros. While this move is part of a specific promotion for a real estate development in Campeche, on the Gulf shore of the Yucatan Peninsula, it is an indication of the progress that Mexico Real Estate on the whole has seen recently in the area of mortgages for foreigners through Mexican banking institutions.
Offering mortgages in Euros is a part of Bancomer's sales strategy for the a golf and marina resort in Campeche, being developed by a Spanish group. The President of the developer explained that BBVA Bancomer will provide the financing option to buyers in Europe who are interested in any of the condos or homes that will be part of the eco-tourism mega project that is being built on the Yucatan Peninsula, and will be the largest on the Gulf of Mexico.
This is the first time that mortgages in Euros are being granted in Mexico and BBVA Bancomer is the first Mexican bank to make this offer. The plan was finalized on January 21, 2010.
While the current offer is exclusively for customers of the specific development on the Yucatan, this project holds its key importance as another possibility for foreign real estate buyers who wish to obtain a mortgage through a banking institution in Mexico.
During the past decade, international buyers have seen their options for financing Mexico real estate purchases grow tremendously. Until recently, buyers either had to pay in cash, or seek financing options in their home country. Although regulations are stricter, and the process is longer than in other countries, the fact that Mexico now offers mortgages opens many options for foreigner buyers who wish to keep their funds or properties in their home country free for other investments.
During 2009, more non-Mexican real estate buyers have taken advantage of these options, taking a mortgage from a bank in Mexico itself. As more buyers use this financing tool, and further possibilities are opened, such as the mortgage in Euros that is currently being introduced in Yucatan, even more buyers will begin to see this a viable financing option
Sunday, January 31, 2010
Mexico Land Development to Benefit from Streamlined Private Investment Processes
In recent decades, the development of the Mexico Land has been made easier and more profitable as a result of policies which have encouraged and facilitated private investment in the top real estate areas. A key attraction for buyers is the extent to which the infrastructure has been developed, making for a very high quality of life for non-Mexicans who build their dream home in Mexico, and supporting potential for high return for foreigners who invest in Mexico Land.
Early in October 2009, President Felipe Calderon announced plans to encourage private investment in infrastructure projects further by accelerating various parts of the process. The package of reforms seeks to modify six legal regulations related to construction industry and the involvement of private funds in that industry.
Included in the president's plan is an proposal for the creation of a Public-Private Partnerships Act. This measure in particular is aiming to attract private capital with a specialized legal framework.
Calderon said that costs would be reduced by 15% to 30% by eliminating administrative "bottlenecks" that currently do not permit full implementation of these contracts. In addition the government would give incentives, such as private infrastructure concessions up to 60 years.
As a result of implementing these reforms the federal government estimated that for 2010 private funds and other investment mechanisms would account for around 80 billion pesos (~ $6 billion dollars) in infrastructure development in the country and that by 2012 it would be just over 125 billion pesos (~ $10 billion dollars).
These reforms, while streamlining of processes of private investment and encouraging the trend to promote and facilitate private investment in infrastructure, will in turn promote investment in Mexico Land by offering stronger infrastructure support for this type of investment. The new measures are another step forward in providing funding for the continual growth and improvement in key real estate areas.
by: Thomas Lloyd
Early in October 2009, President Felipe Calderon announced plans to encourage private investment in infrastructure projects further by accelerating various parts of the process. The package of reforms seeks to modify six legal regulations related to construction industry and the involvement of private funds in that industry.
Included in the president's plan is an proposal for the creation of a Public-Private Partnerships Act. This measure in particular is aiming to attract private capital with a specialized legal framework.
Calderon said that costs would be reduced by 15% to 30% by eliminating administrative "bottlenecks" that currently do not permit full implementation of these contracts. In addition the government would give incentives, such as private infrastructure concessions up to 60 years.
As a result of implementing these reforms the federal government estimated that for 2010 private funds and other investment mechanisms would account for around 80 billion pesos (~ $6 billion dollars) in infrastructure development in the country and that by 2012 it would be just over 125 billion pesos (~ $10 billion dollars).
These reforms, while streamlining of processes of private investment and encouraging the trend to promote and facilitate private investment in infrastructure, will in turn promote investment in Mexico Land by offering stronger infrastructure support for this type of investment. The new measures are another step forward in providing funding for the continual growth and improvement in key real estate areas.
by: Thomas Lloyd
Using Your IRA or 401K to Invest in Mexican Real Estate
By: Charles
Sipe With the stock market in flux and the price of commodities high, many investors are trying to find other vehicles for building and diversifying their retirement portfolio. One way to diversify individual retirement investments is to use your IRA or 401(k) to invest in real estate. Qualified retirement money can be accessed to include personal real estate ownership, whether it be a second home, investment property or commercial/office space.
With Mexico real estate prices just starting to recover from the global recession, investors can purchase homes at significant discounts. Recent prices for coastline homes in popular Baja Mexico ranged from $100K to $1 million².
There is more than one way to invest in real estate using an IRA or 401K and it is important for investors to consult with a financial planner or tax advisor who is knowledgeable in this area to determine the best method of investment.
One method is to have the IRA partially or completely fund the real estate purchase but have the property owned outside of the IRA. Multiple IRA owners can own the same property and there are no limitations on what type of property can be purchased and whether or not the IRA holder can reside in the property¹.
The other method is to have the real estate owned within an IRA. One limitation of this method is that the IRA holder cannot live in the property owned by the IRA. Any proceeds from the property must go back into the IRA¹.
As the real estate market in Mexico recovers, using your IRA to invest in Mexican real estate can be a smart way to diversify your retirement portfolio and grow your real estate holdings.
Sources:
1. Purchasing a Second Home Using IRA or 401k Rollover -Solutions Abroad
2. Home Hunting in…Mexico -NY Times
Sipe With the stock market in flux and the price of commodities high, many investors are trying to find other vehicles for building and diversifying their retirement portfolio. One way to diversify individual retirement investments is to use your IRA or 401(k) to invest in real estate. Qualified retirement money can be accessed to include personal real estate ownership, whether it be a second home, investment property or commercial/office space.
With Mexico real estate prices just starting to recover from the global recession, investors can purchase homes at significant discounts. Recent prices for coastline homes in popular Baja Mexico ranged from $100K to $1 million².
There is more than one way to invest in real estate using an IRA or 401K and it is important for investors to consult with a financial planner or tax advisor who is knowledgeable in this area to determine the best method of investment.
One method is to have the IRA partially or completely fund the real estate purchase but have the property owned outside of the IRA. Multiple IRA owners can own the same property and there are no limitations on what type of property can be purchased and whether or not the IRA holder can reside in the property¹.
The other method is to have the real estate owned within an IRA. One limitation of this method is that the IRA holder cannot live in the property owned by the IRA. Any proceeds from the property must go back into the IRA¹.
As the real estate market in Mexico recovers, using your IRA to invest in Mexican real estate can be a smart way to diversify your retirement portfolio and grow your real estate holdings.
Sources:
1. Purchasing a Second Home Using IRA or 401k Rollover -Solutions Abroad
2. Home Hunting in…Mexico -NY Times
Friday, January 15, 2010
Mexico Mortgage Loans To Ignite Market
By: Investment Properties Mexico
Mexico mortgage loans will show solid growth in 2010, according Mexico’s largest bank, Grupo Financiero BBVA Bancomer.
The news fuels expectations that expanding Mexico mortgage loans will ignite the Mexico real estate market in 2010.
Speaking at a press conference last month, Ignacio Deschamps, Bancomer’s president and chief executive, said “Credit will grow in a dynamic way at Bancomer in 2010 … we will seek double-digit growth in all of our portfolios”.
Deschamps expects Mexico mortgage and small business loans to grow more than 20% in 2010.
Earlier in 2009 the federal government-backed mortgage agency, Infonavit, sold almost $200 million of Mexico mortgage-based securities through financial markets and a top Citigroup banker said Mexican bank loans will grow at a faster rate than the economy.
Mexico mortgage loans at Bancomer expanded 1% to MXN118.41 billion in 2009 and further growth in 2010 will depend to a large degree on a recovery in consumer lending, Deschamps said.
The Mexico mortgage cash will give the already buoyant Mexican property market a significant extra boost, adding to the reasons to invest in Mexico real estate in 2010.
Visit the author’s website to find out more about the real estate market, and Mexico mortgage and loan information.
Mexico mortgage loans will show solid growth in 2010, according Mexico’s largest bank, Grupo Financiero BBVA Bancomer.
The news fuels expectations that expanding Mexico mortgage loans will ignite the Mexico real estate market in 2010.
Speaking at a press conference last month, Ignacio Deschamps, Bancomer’s president and chief executive, said “Credit will grow in a dynamic way at Bancomer in 2010 … we will seek double-digit growth in all of our portfolios”.
Deschamps expects Mexico mortgage and small business loans to grow more than 20% in 2010.
Earlier in 2009 the federal government-backed mortgage agency, Infonavit, sold almost $200 million of Mexico mortgage-based securities through financial markets and a top Citigroup banker said Mexican bank loans will grow at a faster rate than the economy.
Mexico mortgage loans at Bancomer expanded 1% to MXN118.41 billion in 2009 and further growth in 2010 will depend to a large degree on a recovery in consumer lending, Deschamps said.
The Mexico mortgage cash will give the already buoyant Mexican property market a significant extra boost, adding to the reasons to invest in Mexico real estate in 2010.
Visit the author’s website to find out more about the real estate market, and Mexico mortgage and loan information.
Friday, January 8, 2010
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.
FOR PRESS ONLY: For additional ideas, help with a story or general travel and tourism information about Mexico, please contact the MTB’s North American Press Room directly at 1-800-929-4555, by e-mail at northamericanpress@visitmexico.com, or visit our press Web site at www.visitmexicopress.com. To access an online warehouse of free, downloadable b-roll, visit www.thenewsmarket.com/visitmexicopress.
# # #
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.
FOR PRESS ONLY: For additional ideas, help with a story or general travel and tourism information about Mexico, please contact the MTB’s North American Press Room directly at 1-800-929-4555, by e-mail at northamericanpress@visitmexico.com, or visit our press Web site at www.visitmexicopress.com. To access an online warehouse of free, downloadable b-roll, visit www.thenewsmarket.com/visitmexicopress.
# # #
Erick Laseca
Mexico Tourism Board
312-228-0517 x14
erick.laseca@bm.com
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