| | |  Puerto Vallarta Real Estate | October 2008 
Fall Resort and Recreational Property Update for Mexico
 John K. Glaab - CIPS
| | For further information, contact John K. Glaab, CIPS Editor, at John.glaab(at)settlement-co.com or visit Settlement-Co.com. | | |
Welcome to the Autumn, 2008 edition of the Settlement Company Newsletter. As I write this I am searching for a "Silver Lining." Here, of course, I make reference to the economic situation in the United Sates. Not having the proverbial crystal ball, I cannot tell you when the turnaround will come.
There are some positive notes. Dr. Lawrence Yun, Chief Economist for the National Association of Realtors reminds us the demographics, the low level of housing starts and the pent up demand for real estate will create a return to better market conditions. He tells us that many are sitting on the fence and will move in the not too distant future to purchase another home. There is every sign this will spread into the second home market, including Mexico.
Other good Mexico Real Estate News: Developers continue to build (Baja Norte is weak) and invest in places such as Puerto Vallarta and La Paz. This translates into a change in the scarce inventory situation that has existed in those and other markets. Plenty of new product is getting ready for the market.
This year several significant gatherings and conferences are being staged. Among these are: the first ever Texas Association of Realtors Trade Mission to AMPI Guadalajara; the first American Real Estate Expo and Conference - AIREEC, (The first AIREEC event was in Manila, last December and was a great success); Meeting Point, a joint California - Mexico event; The Annual NAR Conference and Expo; and The Annual Conference of the Mexican Association of Real Estate Professionals (AMPI).
All of these events will provide excellent opportunities for networking with Realtors, not only from Mexico, but also from other counties. This type of gathering helps agents and buyers from both sides of the border get to know one another and build confidence in the stability in Mexico.
An Historic Day in Mexican Real Estate:
Last year the Mexican Department of Education (SEP) recognized real estate as a profession. On August 27th, about 300 Realtors in ten different cities across the nation took the "CEDULA." (Linda Neil, from AMPI La Paz and founder of The Settlement Company, was one of those taking the exam.) Prior to the exam, candidates had met the necessary prerequisites. Passing the exam represents the next step towards receiving a Mexican degree in real estate.
The exam was given under the aegis of the Mexican Association of Real Estate Professionals (AMPI) The examination was prepared and given by CENEVAL (The National Evaluation Center for Higher Education.) The test will recognize prior studies and experience and will cover all of the aspects needed to be recognized as a professional Realtor in Mexico.
Jorge Aguilar President of the AMPI, Morelia Section made this observation, "In the future, when a Mexican licensed Realtor shows a property that is for sale, the buyer can have confidence that all documents, including the title, are in order and the other documents, including proof against liens and taxes, have been reviewed by a licensed real estate agent and have a high level of confidence about making the purchase."
Exciting News For The Settlement Company:
Mexico's oldest Escrow and Title Company has just received the trade mark rights to the words, "Virtual Closing."
A Virtual Closing allows the buyer, seller, legal counsel and other professionals involved in a Mexico real estate closing to be in communication and take care of all of the details - without having to leave their homes or offices.
Settlement Company founder, Linda Neil, explained it this way, "We can supervise a transaction where the seller is located in New York state and the buyer in Alberta, Canada. The bank trustee may have his/her office in Mexico City, Monterey or Guadalajara and the Notary Public may have his office almost anywhere. Trying to arrange a time and a place for all parties to come together to sign the deed of transfer has until now created a real challenge. The Virtual Closing also makes it much easier for the real estate agent to focus on the real priority - selling property - and buyers and sellers can stay at home or come to Mexico and spend more time at the beach or playing golf."
Linda went on to say, "while our major market has always been the state of Baja California Sur, using this process we are now supervising closings in places such as the Mayan Riviera, Puerto Vallarta, Ixtapa/Zihuatanejo and the coast of Michoacan. During our seventeen years in Mexico, we have worked with clients from all over the planet, including Andora, Rome and Sydney Australia."
Breaking News from La Paz, Baja California Sur:
Eugenie Lebrija, founding partner and CEO of Ventanas de La Paz, reports her project has been nominated for a prestigious real estate award. Asia Pacific Property Awards is sponsored by the New York Times and MSNBC. Last year, Mexico had only one entry, only one nomination: Pure International, a marketing agency. The awards will be represented in Orlando early in November. We wish the best of luck to Eugenie and her colleagues.
Also in La Paz, a new project, Entre Mares, has been announced. Heading a group of investors is Augustin Ochoa. He is the father of Mexico's number one rated LPGA golfer Lorena Ochoa. The development will be built on 1,000 acres adjoining El Mogote sand spit and will include condos, villas, a commercial zone and, of course, a golf course.
Positive Tourism Statistics:
The first six months of 2008 marked an increase of 11.3% for the Mexican tourist industry. According to Peter Yesawick, a well now international tourism consultant, 53% of those coming to Mexico are here to visit the beaches, while 47% are looking for destinations that are historical and offer a cultural experience. He notes the importance of the baby boomers, born between 1943 and 1960 and the "Millennium Generation" born after 1960. He predicts a bright future for Mexican tourism.
In the last edition of our newsletter, we provided statistics from the Met Life Mature Market Institute. Their studies report 77 million baby boomers which represent 27.5% of the entire US population. They have spending power of 2.1 trillion US dollars. This provides an outstanding base for growth of the second home and retirement home market in Mexico, with its proximity to the United States.
According to Miguel Gomez, Director General of FONATUR (the Mexican government touristic development arm), tourism represents 5.57% of the Mexican labor force. For each person employed directly in the industry, an additional four jobs are created.
Comments and questions are cheerfully welcomed! For further information, contact John K. Glaab, CIPS at 01-800-627-5130, ext. #106 (Mexico), 1-877-214-4950 ext #106 (US), 011-52-612-123-5056. ext #106 (Canada) or visit the website at Settlement-Co.com.
 John Glaab has been a member of NAR's International Section for over a decade. He has earned the Certified International Property Specialist designation and is a founding member of AMPI Los Cabos. He spends half the year in La Paz, Baja California Sur and the other half in Uruapan, Michoacan. For further information, contact John at John.Glaab(at)settlement-co.com. |
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