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Puerto Vallarta News NetworkPuerto Vallarta Real Estate 

Why Choose Vallarta Real Estate over the Stock Market?

December 19, 2016

Many savvy investors are looking for new, exciting places to park their money, and it appears Puerto Vallarta real estate is the answer. No other investment vehicle meets all basic principles of wealth building.

Puerto Vallarta, Mexico - Here's a simple quiz; which of the two investment vehicles performed better over the past year, shares in Apple Inc (NASDAQ:AAPL) or your average real estate rental property in Puerto Vallarta?

As we approach 2017, many savvy investors are looking for new, exciting places to park their money, and it appears Vallarta real estate is the answer. No other investment vehicle meets all basic principles of wealth building: income, deductions, equity, appreciating asset and leverage.

Here are five sound reasons why you should consider Puerto Vallarta investment over stocks, bonds, trusts, and ETFs, etc.

1. Simplicity, transparency, and control: PV real estate offers it all.

When comparing the two, many find real estate investing a breeze compared to the complex world of stocks, trusts, bonds, and ETFs.

In order to comprehend the stock market - and feel secure about it - one must immerse oneself in fundamental analysis, price-over-earnings ratios, return on equity, market valuations, debt-to-equity-ratio, etc. - tools used to properly determine a company's perceived value.

Even then, the most seasoned investor will rely on favorable, yet uncontrollable, market behaviors, financial reporting, revenue forecasts, and on and on. Even when working through an astute advisor, you are warned repeatedly of the risks.

Valeant Pharmaceutical (NYSE:VRX) is a prime example, losing 92 percent of its value in a matter of months due to deceptive - if not fraudulent - corporate reporting. And Valeant was considered by many to be a sure bet. And there are countless others.

And when you include stock manipulation, insider trading, and the worst misdemeanor of all; stock advisors who promote financial products in order to win favorable commissions, you'll soon see why Mexican real estate, by comparison, looks like a dream.

Real Estate: Bricks and Mortar

Real estate is a tangible, viewable asset. You know precisely what you are buying. And with the most basic research, you'll know if it's under or over-valued. And the purchase is simple; one on one, mano a mano.

In contrast to stock, real estate is considered by many as a more stable option when the markets are reacting to outside pressures. No doubt you've observed the herd-like panic among stock investors, especially as they grapple with corporate investors, global markets, oil prices and algorithmic robo-trading.

Even Twitter has Power over your Portfolio

Seasoned traders likely recall the panic selling of high-tech and pharmaceutical stocks after a Scottish man used Twitter to spread false rumors about company financials. He was subsequently charged with securities fraud.

In Puerto Vallarta's real estate market, this would never happen. You are in control, when you should buy, sell, how, and why.

2. Instant revenue streams, equity, appreciation can outperform dividend stocks

Numbers don't lie. Had you invested in Apple Inc (NASDAQ:AAPL) one year ago, your gains to date (stock price and dividends) would be in the three to four-percent range. Yes, even Apple stock has seen better days. Not only has it underperformed, it caused investment jitters with a few heart-murmur-inducing fluctuations, especially prior to the U.S. election.

While some investors swear by dividend-yielding stocks in which modest five-percent yearly returns are considered favorable, real estate can offer the same gains - if not better - and without the investment jitters.

Example 1: The Loft 268 condos in Zona Romantica, with prices starting at $114k USD. One could easily garner $5k USD in revenue ($70-$100 per night x 50 nights booked - or seasonal, monthly rentals), a gain of almost five percent, plus yearly appreciation, and tax/expense write-offs on travel to and from Puerto Vallarta.

Example 2: For the truly ambitious investor looking to convert a property into a full-time opportunity, consider a stunning and versatile home like Casa Corinne, offering 8,000 square feet, breath-taking panoramic views over five floors - it's perfect for converting into an exclusive condo rental getaway, B&B, or yoga-spa retreat. And the returns could be in the tens of thousands per year, far surpassing some of the better-performing stock market offerings.

3. Invest in what you know - and you know Puerto Vallarta like no one else.

Many investors subscribe to the invest-in-what-you-know strategy, choosing friendly, easy-to-understand companies such as Martha Stewart Living, Apple Inc or Lowes. But an understanding of decorative accessories or computers is not enough. You'll pull your hair out attempting to grasp the fickle buy-sell behaviors of other shareholders.

As a reader of this site, you likely have a superior understanding of tourist and vacation properties and behaviors. It may be thrilling to generate wealth on the stock market, but imagine the joy of investing in lifestyle, culture and tourism - especially if Puerto Vallarta is what you live for, year after year.

Remember also, leveraging your knowledge of Puerto Vallarta can be fun. Simply put, real estate is an investment you can use. It's the most tangible, usable investment available. No one will promote the value of your property like you do.

4. Tourism appears to be growing year over year.

Many astute investors recognize the growth potential in travel and tourism. New York Stock Exchange activity is proof. Average daily volumes of Wyndham Worldwide stock (NYSE: WYN) have exceeded 1MIL shares per day - that's confidence! But the gains for stock investors have been lackluster at best. In one year, had you invested, you would have earned approx two percent plus a 2.58 percent dividend. Not bad, but not stellar.

By parking your money in Mexico real estate - where 5.6 million foreigners visited in the first quarter of 2016 alone (an increase of more than half a million over the same period last year) - you're investing on the ground floor where the real currency is exchanged, no middlemen, and no fickle shareholders.

Even better, according to recent industry reports, Mexico's popularity as a tourist destination is growing internationally, in particular among vacationers from China, Germany, and Japan.

5. If the big guys are investing here, so should you.

Larry Fink, CEO and Chairman of BlackRock, an American multinational, investment management corporation, said recently "Mexico is finally beginning to unlock its true potential as an economic powerhouse." And he backed up his words with action by committing $900MIL USD in oil infrastructure investments, even when oil prices were 50 percent lower than expected. Mr. Fink sees a great investment future here, and there is good reason to follow his lead.

Conclusion:

Puerto Vallarta real estate investment meets all basic principles of sound wealth building: income, deductions, equity, appreciating asset and leverage. And we haven't even discussed how to roll your equity into a second or third property. Stocks simply do not allow the simple investor the same latitude into expanding one's portfolio.

For a change, try casting aside your online retirement calculators, and close the door on sneaky, investment advisors. Instead, get acquainted with a seasoned real estate agent or two and begin researching opportunities right here in Puerto Vallarta.

2017 is coming, and if the forecasts are accurate, it's going to be a great year for travel and tourism. After all, you're bound to have more fun investing in Puerto Vallarta than in Apple Inc, Martha Stewart Living or Lowes.

Ron Morgan Properties specializes in luxury real estate in the Marina Vallarta area and beyond to La Cruz de Huanacaxtle and Punta de Mita, as well as along the southern shores of Banderas Bay, from the Romantic Zone, Amapas and Conchas Chinas down to Mismaloya and even Costa Alegre. For more information, visit RonMorgan.net.

Click HERE to learn more about Ron Morgan Properties.