| | |  Puerto Vallarta Real Estate | September 2009 
Mexico Resort Real Estate Update
 John K. Glaab - settlement-co.com
September 03, 2009
 |  | In the Settlement Company's 3rd Quater Newsletter, John K. Glaab talks about the global economy and how it is affecting the international real estate and second home markets. |  | | |
Welcome to our Third Quarter, 2009 Newsletter. Trying to find some words for the introduction for this issue has been a challenge. I would like to write something on the global economy. Difficult to find two economists who agree as to when we will see light at the end of the tunnel.
Below, I am going to quote from a recent issue of Global Perspectives in Real Estate. That is the magazine distributed to the Certified International Property Specialist Network. It is an excerpt written by Barbara Schmerzler, CIPS, ABR, CRB, TRC and Chair of the International Operations Committee for the National Association of Realtors (NAR). I had the pleasure of speaking with Barbara at the NAR midyear meetings in May and attending the International Operations Committee meeting.
Canadian Developer Enters Mexican Market
The Vancouver, British Columbia developer, 20/20 Investment Group, has a new project in Zihuatanejo, Guerrero, Mexico. The company will be transforming the venerable Hotel Sotovento, a landmark in Zihuatanejo, into condominium units for sale with full titles.
Work on conversion of the first of two existing towers will commence in the near future. Plans for the project to be known as Sotovento Residences, include a beach side restaurant, a spa, and upgrading of the current swimming pool and development of adjacent land owned by the company.
In announcing the project, Darryl Inglis, Vice President Development said, "Although we have extensive experience in the Canadian second home market, this will be our first Mexican venture. We selected Zihuatanejo because of its easy access for Americans, Canadians and Mexicans looking for a second home. We are also pleased to mention that The Settlement Company is assisting us with contracts and supervising the acquisition of the necessary permits."
Mexico Has Become the Best-Cost Country for Manufacturing
Mexico is now considered to be the best country to do business with the U.S., over countries such as China and India, according to the business advisory firm AlixPartners’ recent study on manufacturing and outsourcing costs index. The study was designed to provide international U.S. business and companies more accurate and understandable information of the major recipients of foreign direct investment in manufacturing that qualify as a best-cost country (BCC).
The Mexican Competitiveness Agenda in Logistics
Mexico has a strategic geographical location with coastlines on the Pacific and Atlantic Oceans and shares a border of more than 1,800 miles with the United States, the largest economy in the world, leading it to become a world-class logistics hub. For that reason, the Mexican government released a plan called Competitiveness Agenda in Logistics with the aim of increasing the productivity and competitive edge of Mexico’s economy.
Opening a Business More Easily and Quickly in Mexico
(courtesy NAFTA Works, a monthly newsletter on NAFTA and related issues)
On August 3rd, President Felipe officially launched a governmental website tuempresa.gob.mx. This simplifies the process of establishing a business in Mexico.
The website gives investors the opportunity to create any company from any place with this internet access whether it is a Public Company or Limited Liability Corporation. There are five simple steps to be followed on the web site. The new portal reduces red-tape requirements and facilitates the opening new businesses while decreasing bureaucratic obstacles. The initiative places Mexico among those economies that have the best international practices and will boost the competitiveness of the country's economy.
Realtors to Congregate in San Diego
For the first time in its 101 year history, the National Associate of Realtors (NAR) will hold its Annual Conference and Expo in San Diego. More than 20,000 Realtors are expected to attend the event which will be held from November 13th to the 16th.
While the event officially kicks off on the 13th, Realtors from around the world have been invited to an "International Welcome Reception" the evening before. It will be a chance to renew acquaintances and make new ones. It will be a real networking event.
Condoleeza Rice, Former Secretary of State, will address the General Session. She will give her perspective on current word events. There will be daily educational and informational events. A highlight will be a session, "How the Global Economy Affects Your Local Market."
The Entrepreneurial Excellence series will surely be popular with those attending. On Saturday, Brazil, France, Greece, Italy, Mexico, the Netherlands, Portugal and Spain will each have a table in the International Networking Center. The 2010 Annual Conference is scheduled to be held in Anaheim, California.
Real Estate Education in Baja California Sur
Two significant educational events were recently staged in Baja California Sur (B.C.S.) Members of AMPI Los Cabos took the CENEVAL exam. CENEVAL is a department of the Mexican Department of Education. In Spanish it is Centro Nacional de Evaluacion Para La Educacion Superior. Its purpose is to create and implement exams that will test the knowledge and experience of professionals in the realm of science and technology.
Two years ago, the Mexican department of education. recognized real estate as a profession. Passing the CENEVAL exam is one step towards earning the Certification earned by attorneys, dentists, accounts, doctors etc. These professionals have what is called a Cedula Professional. An individual number is given for each CEDULA and most professionals use them in their advertising.
A study group was formed to prepare for the examination. Professionals from real estate related activities donated their time by speaking to the students. Following the exam, a reception was held in the Casa de la Cultura in San Jose del Cabo. Attending were civic leaders, the class instructions AMPI members and representatives from the media. The event was addressed by Raùl Figuerola, Past President of AMPI National and AMPI Acapulco.
AMPI Los Cabos President Lisa Laborde had this to say, "We are proud of our members who attended the study sessions and took the exam. I would like to thank the instructors and especially Susana Bueno. She is a member of our Advisory Board and our education Coordinator. Susana organized the study group for the exam, which was held on July 12th, 2009."
Meanwhile, further up the Baja Peninsula, two Certified International Property Specialist (CIPS) classes were offered in La Paz. The other three necessary to complete the education requirements (there are other components) will be given later in the year. Chris Soester from Washington D.C. taught the classes. Among the students were, Jim Donahoe, Kathy Tailon, Rodolfo Struck and Thierry Moine, all from Costa Baja resort and Marina. There are now fewer than 2000 CIPS Designees worldwide. It would be great to have more from México.
Warm Up to the Global Marketplace
Following are excerpts from an article written in Global Perspectives in Real Estate by Barbara Schmerzler, Chair of NAR’s International Operations Committee:
"My first thought was to wish for more NAR members to warm up to the idea of a global market place and the associated business opportunities. Having talked with industry leaders around the world, I know this is not a unique desire. Many real estate professionals, regardless of their country, simply cannot see opportunities that are right in front of them. The minute they hear, 'international,' they think 'this is not for me; my business is local.' One-to-one, I’m able to point out to the international aspects of local business and how to grow that part of a practice, but of course I can only reach a few that directly.”
Barbara goes on to say, "Like the current NAR television commercial says, 'it’s time to get off the fence!' While many of the global second home markets have been devastated by this economy, Spain’s Costa del Sol and Mexico’s Mayan Riviera are just as beautiful as they were two years ago - perhaps just a little less crowded. And if that retirement fund isn’t worth what it once was, there are many markets worldwide where less money still buys more." Some good positive thinking!
La Ruta Don Vasco (2010) one project for Mexico’s Bi-Centennial Celebrations
On the night of September 16, 1810 Father Miguel Hidalgo y Costilla, climbed to the bell tower in his church. There he rang the bell and shouted for Mexican Independence. This event has become known as the Grito de Dolores.
Each year, The President, Governors and Mayors across the Republic reenact this event. This happens at 9 pm on September 15th from coast to coast. The year 2010 will mark the 200th Anniversary of Mexican Independence. One that is very special will occur in the state of Michoacán.
This state is probably the most important as far as the location of Mexican artisans. Tzintzuntzin was the capital of the Tarascan people for almost 100 years prior to the 1400’s. The western highlands were too far away to feel the influence of the Mayan and Aztec cultures, allowing the Tarascos to develop a strong pre-Hispanic civilization. When the Aztecs finally entered the Lake Patzcuaro region, the Tarasco people were able to fend them off, thanks to the strong copper weapons they had developed. When the Spanish arrived in 1552, they were warmly welcomed.
Seven years later, the Spanish returned under the command of the brutal Nuno de Guzman who brutalized the indigenous people. The colonial government recalled Guzman to Spain where he was imprisoned for life and sent out Vasco de Quiroga, an honourable judge from Mexico City to make amends. He became the first Bishop of Michoacán.
Vasco de Quiroga went from village to village teaching crafts to the Indians. He encouraged agriculture self reliance, handi craft cooperatives and educating. He encouraged each village to specialize in a different craft to avoid competition. Actually several villages produce dishes from clay. In this case each village has a distinctive design. One of the most famous villages is Santa Clara del Cobre. It is known for its fine copper products. There are others too numerous to mention.
Quiroga died in 1565, but his legacy lives on to this day. He is spoken of with reverence and is usually referred to as Tata Vascu. As part of the 2010 celebrations the Mexican government has created, “La Ruta Don Vasco.” Recently we drove all around Lake Patzcuaro. The road signs are already up, “RUTA DON VASCO 2010.” This in honour of Don Vasco de Quiroga.
 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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