Mexico Real Estate Blog

The Mexico real estate market is influenced to a great extent from its norther neighbors.  Given the fact that nearly 80% of Mexico’s exports are heading towards the United States, and another large percentage for Canada, the relation between the economies is quite extensive and influences are high for all of the industries in the Mexican market.  With the obstacles and the slowdowns faced by the economies of these two northern countries, it is thus logical that the bearish forces have also extendeded into the Mexico real estate market and has had its drag on the other Mexican industries. 

A large amount of Americans have been contributing to retirement funds for over 30 and 40 years.  They also have been using these funds in plans to purchase their retirement home or their second home for vacations.  Places such as Florida, Arizona, Texas have received a large amount of such capital flow.  The Mexico real estate market has also been receiving some of these investments in regions such as Baja California, Quintana Roo, Pacific areas.  It is estimated that just over one million north Americans now live in the Mexico real estate region on a year round residency.   The majority of these retired.   With the losses in the financial markets during 2008 – 2009 several families who were planning to purchase their second homes in Mexico were suddenly needing to reassess their plans.  During the latter end of 2009 the market began showing signs of recovery.  This upturn, although very positive, may still not have recovered the overall investor’s confidence as they have responded cautiously in regards to purchases and investments into the Mexico real estate market when compared to previous years figures.

2009 also saw a couple of spurts of exchange rate adjustments which created windows of opportunities for buyers.  The Canadian Dollar recovered ground and reached par with the US Dollar on several periods during 2009.  With this increase in the purchasing power and several decreases in the Mexico home values, Canadians were a segment of the market that remained quietly busy in these periods.

Mexico has also been witnessing a underlying growth in demand in the Mexico real estate from their large lower income and middle lower income families.  There has been massive growth of the government financing for these buyers.  In previous years approximately 150,000 units were constructed on an annual basis but in 2008 and 2009 figures have reached 500,000 annually.  The boom in this area comes from the house loan grants that were averaging nearly 350,000 per year in 2000 to today’s figure of 750,000 loans granted in 2009.  The existing growth of loans is spurred from the large population of young people that live in Mexico which will be needing housing for the next decade. 

The Mexico real estate region, will remain and become the most popular non-American / non-Canadian retirement and second home destination.  Although this south of the border real estate market was impacted downwardly during this past year, as was the case for the majority of the world wide market, 2009 had become a tremendous period of opportunities in the Mexican market.  The beginning semester of 2010 might also continue with some pocket below market windows, before the trend begins it`s upward slope.  Upward pressures will come from different factors all at different influences such as favorable exchange rate variances and the population booms.  This year will definitely be the first of a decade of interesting growth patterns in different segments of the Mexico real estate market.  2010 is not a question of waiting to buy, the important question is if you have the capital…. to buy and wait.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Cancun Real Estate is an excellent combination of the high class luxury condos, beautiful beaches and events and culture to suit many tastes.  As Cancun Real Estate prepares itself for the changes and new opportunities to be brought by the city’s future status as an international air travel hub and international business center, the city is also making plans to add more monuments and “sights to see” to the city’s landscape to be one of the leading  Mexico real estate regions.  

As a part of this direction,  the city government has recently presented a plan to build a new park to mark the upcoming celebration of the country’s bi-centennial of independence for next year; the park will include a new City Hall and city Cathedral, designed to serve as tourist attractions and visual improvements to the city, along with the new park.  Cancun Real Estate buyers, Mexican and non-Mexican alike, can look forward to participating in the activities that next year’s celebrations will bring, and to the transformation of the city’s image, culture and investment opportunities to a new international level.

Cancun’s mayor, Gregorio Sanchez Martinez, recently presented the integrated project of “Gran Parque Bicentenario” to the public, which will be located in Super-block 33.  The mayor’s exhibition included the technical details, a virtual tour and the unveiling of a model of one of the most important architectural projects for the municipality, for which there are a total of 87 thousand meters square for green and recreation areas allocated.

During a press conference the mayor said that it will be a majestic work that will give further identity and personality to Cancun’s recreation and family entertainment.  The intention of the park’s style is “to be a place that gives identity to Cancun’s tourism and real estate industry’s, where tourists go and take a pictures” and where residents can enjoy the pleasantness of day to day life.

The construction of the park is planned to start in late November and will be finished and open for the public for the Independence Day celebrations on Sept. 16 2010. The total investment to build the park will be about 11 million dollars, not including the construction of the Cathedral.

According to Salvador López Cabrera, Cancun’s director of Projects, the “Grand Bicentennial Park” will include a civic plaza, walkways, playgrounds, underground parking with 600 parking spots, a skating rink with synthetic material (which simulates ice) and also busts and information in memory of heroes of Independence and the Mexican Revolution.  It will be a very significant ecological undertaking, which will mean an additional open space for the development of cultural, civic, sports and entertainment, not only an option for the national and international tourism, but even more so another option for Cancun Real Estate owners to enjoy life in this city.

The new city hall, as the Cathedral, will serve both to increase practicality, and to beautify the city. The new city hall will have a monumental architectural scale, and will concentrate all government offices in one place, which will mean a saving of approximately a million dollars – the amount that is annually spent for renting properties due to the current low capacity of the government building. There will also be an area of six thousand square meters designated for future expansion.

On the main facade, facing Javier Rojo Gomez (Kabah) avenue, at the center there will be a bronze statue of seven meters in height (not including the base) of Benito Juárez, a president from the mid 1800’s, who is often considered the President who made many of the most significant contributions to Mexico’s history, and whose name has been given to Cancun’s municipality.  On the sides, there will be two statues, five square meters each in high honor of Andrés Quintana Roo and Leona Vicario, two of the founding pioneers of the state of Quintana Roo.  In total there will be invested over 12 million pesos in works of art.

“In every city in the world are there are essential sites to visit, and now we will have a city hall with classical architecture and a cathedral to match what our city deserves”,  observed the mayor.

In an underground area, which has already seen construction work there will be a parking lot with capacity for 600 cars, adding convenience for home owners in the area to arrive and enjoy the park by car.  The mayor has likewise asked the council that the land use in that area be changed to provide three thousand more parking spots to meet new demand. The underground parking will be provided with elevators for wheel chair access.   The Environmental Impact Statement (EIS) for the project has already been carried out and authorized.

THE TOPMexicoRealEstate NETWORK “Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely ! ” (512) 879-6546

Will Mexico Land and real estate have similar demand increases in the next decade as being witnessed in the United States?  Several factors must be taken into consideration in order to project such similarities. 

In the United States, recent studies show some interesting population trends.  Some first wave population shifts are being registered which shows a slight decreases from the northern colder states towards the south western regions.  Texas, Wyoming, Nevada are some of the states that are absorbing much of the moves. States such as Michigan, Rhode Island, Maine are decreasing in size.  Land in Mexico historically has never been an option for consideration, but the quantity of ex pats buying Mexico real estate has been steadily increasing.  

As the population of both Canada and United States grow older, and this population segment begin retiring from their jobs, a large quantity of them begin exploring new life style options.  Their children are no longer living at home, graduated from college, and the homes might be much larger than required.  With the thought of selling the home, people review closer the living requirements for only two people vs. an entire family.  The life long dream of living in a warmer climate, waterfront living, smaller yards and square footage with less maintenance required becomes more appealing.  These are the continued trends that are expected over the next coming decade.

As Mexico land is more affordable on an average than in the US or Canada, and the day to day living expenses as well are less than their northern counterparts, it is now becoming a viable option and not so much a fantasy dream for many Americans and Canadians.  The costs in Mexico for oceanfront and waterfront properties are much less on average than found in Florida, South Carolina, and many other southern states near the coasts.  Even the carrying costs and day to day living expenses are considerably less which allows for savings and social security checks to stretch out much further than the traditional retirement community bills.  The infrastructure of many regions in Mexico have seen drastic improvements over the past 15 years with the North American Free Trade Agreement.  People who have never been to Mexico are pleasantly surprised to the amenities, the cleanliness, and the natural beauties available in many cities throughout the nation. 

Some of the deterrents keeping larger amounts of Americans and Canadians from purchasing large quantities of Mexico land include such items as extra processing requirements.  Many non-Mexicans do not realize that they can own land in Mexico.  Real Estate can be purchased and sold by non-Mexicans and only within 50 kilometers from the oceanfronts is the extra requirement of establishing a bank trust outlined.  People are also with the misconception that it is extremely long air travel time and are surprised to hear that many of the Mexico cities can be only 2 – 3 hour flight depending on the regions.  As more North Americans discover these factors and continue analyzing the large day to day cost differences, Mexico is projected to have even larger increases in the population of ex-pats.  

As the northern countries, and northern states begin witnessing population decreases and the warmer climate regions begin receiving these new influxes, it is expected that Mexico land will become at the highest level of demand by non-Mexicans than ever witnessed in history.  It is expected that as the population ages, and they retire, they will prefer to live in warmer climates but within communities that are inexpensive.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate LicenseS.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Many people wonder of the type of Mexico retirement life would await them when they move down south of the border.  With a nice home in the Mexico real estate region, what activities and what areas can be explored for a new couple looking to experience a retirement in Mexico?   

Once you have purchased your Mexico home, and you have bought all the furniture, fixed some of the leaks, creaks, and details around the house, now is the time to start to explore and discover the surroundings.  Beaches are one of the popular attractions of many a Mexico retirement community.  There are thousands of beaches in Mexico.  Some beaches are well known and well mapped on guides, and others are hidden, virgin, not known except for a few locals.  Pack up the basket for sandwiches, beer, a barbecue.  Take the snorkel gears and bring the grandchildren.  Memorable outings that your family will remember for a life time.  Along with the natural beauties of the Mexico beaches are the amazing history and culture of this warm society.  The history goes back to pre-Hispanic years with the famous Aztec and Mayan civilizations.  Or you can also discover at museums and sites the Hispanic history of the Spanish conquering years in this country.  Read about the Cortez wars, the independence years, and the Pancho Villa revolution stories.  Visit hundreds of colonial towns with small cobble stoned roads, and zocalos in the center of town.  Or go site seeing, visiting ruins and pyramids with  exciting trips deep in the jungles and in the mountains for amazing excursions.  These trips can be quite exciting trips as some of these ruins have yet to be discovered or properly identified in the books of the museums and with the historians.  The Mayan culture has become very internationally popular over the last several years with the famous calendar and predictions of December of 2012.  This is the rumored end of the registered calendar life and some Mayans believe is when the planets are to aline causing global changes to the life on earth.  Hundreds and thousands of ruins and history to explore and to study with colleges and museums giving courses and guided trips through the regions to teach and help non-Mexican residents discover the marvels of these ancient people.  The exploring never seems to end and allows for years of learning experiences for your Mexico retirement plans in your new Mexico homes.
 

Along with discovering new sites, new attractions of the regions, many non-Mexicans have become very involved in the communities and organizations near to their Mexico Retirement homes.  “I found a child in a local store who was extremely blue and so I began talking with his mother to find out if the boy was ok” commented Lavonna an expat living in Playa delCarmen “the mother told me he had a difficult heart illness”. Lavonna decided to get involved and with the direct help from other visiting Americans and Canadians the child was placed on an airline to Michigan State University where a successful surgery was performed curing the little Mexican boy. 

“soon we created a non-profit organization called ANGEL NOTION and today there are more than 300 Canadian and American volunteers some who are year round non-Mexican residents and others who come for the winter.  But it is an incredibly gratifying organization full of friends where you can witness first hand the results of your volunteer and contributions.” 

Some retired expats get involved in the education and helping local people further their education.  With the wide spread access to internet throughout many small communities of Mexico, education programs can be easily mounted within organizations.  “I find the Mexican children extremely eager to learn more and really appreciate that someone is taking the time teach”  stated Elaine a retired international high school teacher.   She has been helping a local school with their programs and bringing support educational materials to open up the doors of opportunities for numerous young children and their families. 

 
A retirement in Mexico is full of incredible activities and options that will have you busy 365 days of the year.  The natural sites available for exploring, the man made attractions such as pyramids, cathedrals, old picturesque colonial towns.  Hundreds and thousands of years of history in the back yard in Mexico can create hobbyist out of anyone.  Many new retired couples have also realized that getting involved in the needs of the communities have brought the most gratifying sense of contribution and the recognition of “really being needed”.  It is a wonderful match.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”

Owning Mexico homes just got a whole lot easier down in the Playa del Carmen real estate region.  Fiber optics have been functioning in our area for many years, but the benefits or some of the advantages of having the high speed internet have taken a few years to be introduced. 

Non-Mexicans owning Mexico homes would sometimes become quite complicated in regards to management and the upkeep of these south of the border properties.  There are several recurring payments such as water bills, telephone bills, cable tv, and of course the electric bills.  Many of these bills can be paid in several locations here in Mexico such as in a bank, in the grocery stores, even in the corner abarotes or convenience store on the corner.  But this did not resolve the problem for a person who lives 1000 miles away.  Property managers would be life savers and administer these activities.  And now with several companies and utility companies increasing their services, and introducing new features, people who own vacation or second Mexico homes now have an efficient manner to keep track of these routine obligations.   

One such utility organization, the CFE (Comision Federal de Electricidad), allows the option for consumers to review their utility bill on line and allows you to make payments on line as well.  You will need to set up an account with a participating bank.  I will go over this in a later post.  For setting up your account within CFE; 

1.     goto   http://www.cfe.gob.mx/es/
2.     grab an old electric bill from all of your Mexico homes you wish to consult
3.     up in the right hand tabs, is an option to convert the page into English (although several of the pages remain in the spanish language)
4.     in the right hand side, you will see a reddish box for setting up an account.  click onto the REGISTRATE AQUI
5.     there are 4 fields to fill out
             user name
             password
             confirm password
             email address
6.     then the process will require that you grab your old electric bill,
             in the upper left hand corner, jot down
             -the name that appears on the bill
             -account number
         drop these numbers into the fields to set up your on-line consultation accounts
7.      now you can see an electronic copy of the bill outstanding
Mexico real estate and owning properties south of the border become more and more efficient each quarter.  The whole concept of buying south of the border, administering your Mexico home from long distance, selling, renting, renovating property in Mexico is becoming easier each year.  With ease in the up keep such as reviewing and paying your electric bills,  and with the day to day cost savings of living in Mexico,  we are preparing to see a substantial increase in Americans and Canadians who spend their winter months and even establish their year round residency in this cost smart region.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

“Mexico’s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!”