Why Own Real Estate in Mexico?

Investment Real Estate Location Profile

Mexico is bordered by the United States to the north and Belize and Guatemala to the southeast. Mexico is about one-fifth the size of the United States.  Baja California in the west is an 800-mile peninsula and forms the Gulf of California. In the east are the Gulf of Mexico and the Bay of Campeche, which is formed by Mexico's other peninsula, the Yucatán. The center of Mexico is a great, high plateau, open to the north, with mountain chains on the east and west and with ocean-front lowlands lying outside.The consistent tropical climate, pristine beaches, and historical culture have established many communities within Mexico, such as Puerto Vallarta, Cancun, Baja, and Las Cabos as highly desired vacation destinations.  However, until the late 1990’s real estate in Mexico was only able to be owned by Mexican citizens.  It was unconstitutional for non-Mexican residents to acquire ownership interest in real estate.  Since that time, federal laws have been instituted to allow foreign investment and real estate ownership.  In today’s article we will examine Mexico’s past, present and future and why one should consider it a place to invest their financial resources in real estate.

GEOGRAPHY

Mexico’s thirty-one (31) states and one (1) federal district covers almost 780,000 square miles making it the world’s 8th largest nation.  The country curves from northwest to southeast, and continues northeast to the Yucatan Peninsula.  To the South and West, Mexico is bordered by the Pacific Ocean.  The Sea of Cortez lies between the mainland and Baja California.  The east coast of Mexico is bordered by the Gulf of Mexico from the USA border to the northeastern tip of the Yucatan Peninsula.

ECONOMY

The economy of Mexico is supported by about 108M Mexican residents.  The national currency is the Peso.  End of Year 2007 economic estimates show key metrics demonstrating strength and stability such as real GDP growth rate of 3% on a base of $1.353 Trillion (about 1/4^th of the US), as well as low inflation of 3.8% and very low unemployment of 3.7%Tourism, agriculture, ranching, timber, mining, oil, natural gas, fishing, and manufacturing are Mexico’s primary revenue earners.  Mexico has a free market economy and free trade agreements with most of their main trading partners.The recent administration has expanded and invested in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports to support the present and expected future growth.   

FUTURE OUTLOOK

The Mexican economy has come a long way from the economic instability of the past.  Past economic collapses caused severe problems and economic instability, the last of which occurred in the mid-1990’s.  During this period of political and economic unrest, and for long term stability, Mexico was forced to drastically de-value their currency.  The short term effects of this move were overnight increases in credit interest, as high as 80% and inflation that climbed as high as 50%.  This instant cost of living increase spelled disaster for many businesses and residents.  This issue was quickly brought under control and best practices were put into law to extend the economy to make broader contributions globally, to consistently grow the middle class, and to increase tourism and real estate development.Mexico has a very rosy outlook.  For the first time, in the face of a severe real estate correction in the United States, Mexico boasts a thriving housing sector whose record growth leads Latin America.  Long thrashed by swings in the U.S. economy, this is a significant sign of increased economic independence and stability. 

Interestingly, the booming Mexico real estate market is now providing an outlet for many that are looking to escape the U.S. downturn.Money and credit liquidity are now more attainable than ever in Mexico due to new laws put in place to encourage domestic and foreign real estate development and mortgage growth.  The increases in domestic savings and wage growth have created the opportunity for many Mexican residences to own their first home.  Supporting the new-found growth, President Felipe Calderon has set a national goal of one million mortgages by the year 2010.  Behind the boom are six years of economic growth and stability -- and a national shortage of six million residences. While interest rates are falling, just six percent of Mexico's 25.7 million homes are financed with mortgages -- compared with about 67 percent in the U.S.

The pent-up mortgage demand in a nation of 108 million people means lenders can be choosy, enforcing strict standards that have held delinquency rates below 4 percent in third quarter-2007, compared to 5.6 percent in the U.S.  The Mexican lending environment is very stable because lenders don’t need to expand portfolios with high risk loans to weak credit applicants to grow business.  There is no Mexican subprime issue because that category of lending just doesn’t exist.  Mark Zaltzman, chief financial officer at Su Casita, one of Mexico's largest mortgage lenders commented, “'Mexico doesn't have a credit issue. We can still choose our borrowers because demand is so great.”''Mexico is in the early stages of expansion,'' recently commented Juan P. De Mollein, managing director for Latin American structured finance at Standard & Poor's. ``There are still plenty of points for evolution because there's still plenty of demand.''Now that the appropriate federal laws are in place to make it possible for foreigners to own real estate in Mexico, according to recent estimates, over six million American and Canadian buyers will migrate to Mexico to purchase real estate over the next decade.  Most of these real estate purchases are projected to be in the most luxury, already famous vacation destinations.  At a very conservative average price of about $300,000 per residence, Mexico is likely to see at least 1.8 Trillion dollars in real estate investment over the next decade.  Prospective buyers name beauty, location, convenience, and affordability as some of the main reasons they are looking to invest their resources in Mexican real estate.  This is the beginning innings of a longer term growth and prosperity trend for Mexico.  The world is taking note and migrating in droves.  Real estate prices in most desired Mexican locales have been on the rise over the past few years, a trend which looks like it will continue given domestic and international demand and growth projections over the next decade.

 Is Mexico the Right Place for Your Second/Investment Home?

Maybe…Depending on Your Goals and Objectives

What Part of Mexico is Right for You?

Contact Us to Help Sort it All Out! 

Why Own Real Estate in Panama?

Investment Real Estate Location Profile

Panama is a small tropical Latin American country bordered on The North by the Caribbean Sea and the Pacific Ocean on the South.  The consistent tropical climate, pristine beaches, lush mountains, and booming economy has gotten the attention of people from around the world.  In today’s article we will examine Panama’s past, present and future and why one should consider it a place to invest their resources in real estate.

HISTORY & GEOGRAPHY

Panama, a smaller Latin American country is home to a population of a bit over three (3) million people.  The climate in Panama consistent and tropical, with average temperatures around eighty (80 F), Panama is well known for is lush mountain ranges, and pristine beaches. About fifty (50%) percent of the population lives in the Colon region of the country local to the famous Panama Canal.  Panama's history has been shaped by its strategic location between the Pacific Ocean and the Caribbean. Early in the 16^th century, native Panamanian tribes quickly disappeared after the Spanish arrived with their weapons. Panama City, on the Pacific coast, thrived as Spain conquered and plundered Peru. Caravans loaded with gold traveled from Panama City to be loaded on ships bound for Spain. However, this wealth attracted pirates and, in the early 1700s, Panama's Caribbean shore was dotted with so many pirate strongholds that shippers chose instead to sail around Cape Horn to Peru. Panama's importance rapidly declined, and Spain did not contest Panama’s inclusion as a province of Colombia when it won independence from Spain in 1821.  Since that time, Panama has spent many decades suffering through various corrupt dictatorships and unscrupulous government regimes, including the most infamous General Manuel Noriega who after losing the election in 1989 attacked the winning candidate on national television and remained in power with income provided by drug trafficking.  The dictator declared war on the USA in 1989 and after a short time with the help of 26,000 soldiers, the USA removed Noriega from office.  He was arrested and convicted of money laundering and is currently serving a forty (40) year prison sentence.In 1994, Ernesto Perez Balldares took office and fulfilled promises to end corruption, improve the economy, and implement nationwide health services.  Panama has never looked back.  Since 2004, the current president is Martin Torrijos, a Texas A&M graduate with a degree in economics.  He has worked diligently to continue to make strides and to grow the upstart free-enterprise democracy of Panama.

ECONOMICS

Blessed with unique circumstances due to a favorable location, Panama is more diverse than many economies.  Panama is a free-enterprise democracy with significant resources and is booming.  The country is making global strides in agriculture, financial services, tourism, and international transport via the Panama Canal.  A combination of surging world trade volumes and a boom in port development, infrastructure and commercial and real estate is bringing Chinese-style growth to the country and inviting comparisons with international business centers such as Dubai and India.

·         In 2006, the Panama economy grew about eight percent (8%). 

·         In 2007, the Panama economy expanded by at least nine percent (9%) and possibly over ten (10%). (Financial Times, 2007) 

This is a very rapid rate of growth, among the fastest in the world, and is produced over a broad portfolio of stable businesses.  The growth suggests that Panama has corrected their past inadequacies and has “arrived,” and is making a difference.  Panama is taking advantage of its geographic location and benefiting heavily from the growth of trade between Asian manufacturing centers the North American and European markets.  Since Panama took full control of its canal from the USA at the end of 1999, overall traffic has expanded by more than 33% and, the number of containers used to package electronics, textiles and other factory products transported across Panama has increased 300%. Due to this explosive growth and more expected in coming years, the Panama government is pushing ahead with ambitious plans to double the waterway’s capacity.  The expanded Panama Canal will be big enough to accommodate the largest maritime vessels increasing growth even more.President Martín Torrijos, a graduate of Texas A&M University with an economics degree has stabilized public finances and is supporting infrastructure upgrades to ensure the country is able to accommodate the influx of people globally coming for opportunity, tourism, as well as second homes and primary real estate residences.  Panama has also become the hub for banking in Latin America.  USA banks such as Citigroup and HSBC among others have a significant presence in Panama City.  Growth in this arena is also expected in coming years.  

FUTURE OUTLOOK

Panama is a country that welcomes emigrants from The Americas and Europe.  Approximately 80% of Panamanians are from at least partial European decent, and they realize their growth is global and needs influxes of financing from other places to be sustained.  Panama no longer has a military.  The USA ensures the national safety of Panama.  With the increases in the broader economy, the Panamanian middle class is expanding and enjoying a better, more stable quality of life.  Literacy is high….over 91% can read and write.The official currency of Panama is the US Dollar.  This is convenient for those migrating from the US as there are no concerns about exchange rates and their effects.  Also, although the USD is the main currency, Panama is constitutionally forbidden to introduce additional dollars into their financial system.  This is a refreshing change from other less stable economies that literally just print money when needed causing instability and irrational swings in inflation.  Federal laws are in place to protect both the buyer and seller in real estate transactions and property is owned by acquiring title on a fee simple basis much the same way as in the USA.  In fact, many real estate transactions, and mortgages on property in Panama are carried forward and secured by US title companies and banks.Further, Panama has a really beneficial tax structure in place to encourage non-citizens to consider investing their resources in Panamanian real estate.  For example, Panama does not charge taxes on any income gained outside of Panama. The future is bright for Panama and for those choosing to buy the “right” Panamanian real estate.  Panama has a stable, free-enterprise democracy, an economy that is establishing long term growth trends, and a strengthening middle class.  This is the beginning innings of a longer term growth and prosperity trend for Panama.  The world is taking note and migrating in droves.  Real estate prices have been on a significant rise throughout Panama over the past few years.  However, real estate is starting at a very low base and still sells at a large discount to many surrounding markets. 

Is Panama the Right Place for Your Second Home?

Maybe…Depending on Your Goals and Objectives

Contact Us to Help Sort it All Out!

The Palmyra – Montego Bay’s Award Winning Project  

Massive expansion of hotel rooms has peaked the interest of real estate developers. 2004 saw the purchase of land for the island’s first beachfront luxury project by the international Resort Properties Group from Europe. The Palmyra Resort & Spa condo-hotel will offer 630 condominiums and villas once completed, and the real estate development has added a new dimension to their luxury offering by bringing globally renowned spa company E’SPA to the island. Jamaica offers one of the last hidden gems in the Caribbean for shrewd real estate investors, who can purchase a Jamaican island home with ocean view on what has been nicknamed the ‘GOLD COAST’ for prices starting as low as US$400,000. Foreign ownership of land in Jamaica is unrestricted and financing is now available through First Caribbean Bank, making the real estate offering even more tempting.  Casino Legislation has been rumored to be under review, an issue of great interest to the island’s tourist industry. Casino’s would allow Jamaica to compete with other Caribbean islands that feature gaming as one of their main attractions, and add yet another facet to the destination’s offer. Currently, limited gambling with slot machines is legal. It is expected that smaller, service related companies will follow the larger companies into Jamaica to create more jobs, a phenomenon that recently has been experienced in the Dominican Republic and Mexico. 

Sir Kenneth Miller, President and Founder of the UN National Committee for Habitat, a non-profit Non Government Organization associated with the United Nations, has extensive experience in collaborations between the private sector and the UN for the building of housing and creation of sustainable communities across the world. In his role as executive director and liaison between the UN National Committee for Habitat and the United Nations Center for Human Settlements, the real estate expert managed the development of private sector efforts for various international projects. “Jamaica is a prime example of successful collaboration between the government and the private sector in the creation of sustainable, economic growth,” said Miller.“The modernization and re-development of MBJ Sangster International Airport and the Northcoast Highway project, connecting the resort towns of Negril, Montego Bay and Ocho Rios, both projects with major private sector participation, have spurred unprecedented levels of foreign direct investment. Indicators suggest that Jamaica may move ahead of the other Caribbean nations in the next decade.” Miller points to the fact that in contrast to the rest of Latin America, Jamaica has managed to attract foreign investments to support a rapid expansion and transformation of its infrastructure. 

Ranked a remarkable number 17th by the World Investment Report, Jamaica has attracted in excess of US$3bn in private, foreign investment in the last 3 years alone, and change is taking place in almost every industry corner, including real estate, tourism, banking, telecom, energy and transportation. In addition to a string of hotel projects, notable projects under development along the northern GOLD COAST include the 25.000 seat Trelawny Multi-purpose Stadium under construction, a new Convention Centre in Rose Hall and the new Shoppes at Rose Hall offering high end duty free shopping and entertainment. Said Miller; “All these projects bring added value to the area and will influence real estate prices in a positive direction.” The island-wide improvements have not escaped the attention of foreign real estate investors, who are realizing that Jamaica has a lot going for it and are snatching up property at a heightened pace. Importantly, services such as financing and mortgage brokering are available for the first time competitively, putting the purchase of a second home within reach for many. Said Miller; “Jamaica compares favorably with all the Caribbean islands, due to its unique culture, creative and friendly people, ideal weather, wonderful beaches and spectacular mountains and an abundant water supply. Jamaica provides an opportunity for property buyers to have it all.”  

According to the New York Times, the construction of the new and luxurious Palmyra Resort & Spa has played a major role in establishing Jamaica as a serious contender on the Caribbean property scene. Superior in quality to the vast majority of other developments in the region, The Palmyra offers a safe haven for families and their investments with a luxury real estate offering not previously seen on the island. Said Sir Miller; “From a local real estate perspective, there is no question that the Palmyra Resort & Spa has jump-started the property industry and put the island on the map as a desirable second home destination. The construction of such a luxurious real estate development has huge significance for the island as a whole, and is widely thought to lead to unprecedented growth in the sector.” Pointing to the Palmyra’s magnificent destination spa by global spa specialist ESPA and the resort village’s numerous 5-star amenities; Miller said that the community promises to be the most sophisticated and complete beachfront resort in the region, exceeding the likes of Sandy Lane in Barbados, Atlantis on Paradise Island and Palmas del Mar in Puerto Rico.

According to Miller, buyers increasingly look for properties that can guarantee a luxurious, ‘no-hassle’ lifestyle. “Today’s buyers are knowledgeable and smart. They seek something better than what has been available until now, and demand a break from the ordinary ‘cookie cutter’ resorts. They want the best experience they can have, with all the latest comforts, in a convenient and safe atmosphere. The Palmyra Resort & Spa fulfils that dream.” Miller confidence in the development is due to the development company’s track record in creating quality property, such as the luxurious Castello del Nero Hotel & Spa in Tuscany, a member of luxury travel chain ‘The Leading Hotels of the World’, combined with the Palmyra’s prime location makes the development an attractive investment. “The fact that The Palmyra is located directly on the Caribbean Sea within the confines of Rose Hall, surrounded by almost a billion dollars in infrastructure, makes it the smart buy in the Caribbean region.” said the real estate guru. “With Rose Hall’s many luxury hotels, three magnificent golf courses, shopping & entertainment village and superior infrastructure, the gated community of the Palmyra will offer buyers the best of both worlds; a good investment and a great lifestyle,” concluded Miller. 

For more detail please see our full detailed review at:  http://www.legacyresortconsulting.com/viewResort.aspx?ResortName=The%20Palmyra&ResortId=988ee2cd-c4b9-43de-9170-3269a1f49438  

Wondering whether The Palmyra is your perfect piece of real estate?  

Contact Us….we can answer this and all your investment real estate questions!

Jamaica Real Estate 

PROTECTING YOUR PIECE of PARADISE 

The real estate market in Jamaica is undergoing an amazing transformation.  Given its beautiful beaches, proximity, and charming culture, the world’s best developers have desired for years to make Montego Bay, Jamaica one of the world’s great destinations.  Finally, with the approval and assistance of the Jamaican government, the renaissance of The Gold Coast of Montego Bay is now well underway and is becoming home to some of the finest Caribbean real estate.  Savvy investment real estate folks have taken notice and are interested in getting involved in the early innings of the renaissance.  One question we always seem to receive about Jamaica is in regards to the laws and regulations that are   in place to ensure their real estate investment is secure.  The concern is understood and for many in which this will represent their first non-home country purchase, the question is fair and reasonable.  Fortunately, there are federal laws in place that protect both the real estate buyer and the seller in the short and long term that secure title and occupancy much like a purchase in the United States.   

According to Attorney Mark Golding, there is no reason to be concerned about investing in real estate in Jamaica. “Foreigners have been buying real estate on the island for decades. U.S. investing in real estate here has been well served by our well established and investor-friendly real estate laws.” Golding recommends contacting a local attorney for any particular queries. “A local attorney will be able to provide you with all the local knowledge you need,” commented Golding. 

The Title Guaranty is a novel product in Caribbean countries, including Jamaica. However, Caribbean real estate buyers now have the option of choosing a private indemnity backed by Stewart Title Guaranty of Houston, USA. With an impressive track record in both the United States and the Caribbean, Stewart Title’s company mission is to enhance the real estate transaction process for all parties involved. Since 1893, the company has been a leader and pioneer in providing buyers, sellers, lenders, attorneys and developers with cutting edge title and real estate transaction services, including primary US-based escrow accounts. The Stewart Title Eastern Caribbean division offers the same industry trusted title guaranty and escrow services to the Caribbean market. For individual real estate purchasers of Jamaican property, the company’s involvement ensures that the transaction will be managed with the protection and professionalism of a United States closing. “We are proud to offer added, customized protection to Caribbean real estate buyers.” said Ms. Faye Finisterre, Managing Director for Stewart Title Eastern Caribbean. According to Finisterre, a growing number of buyers are becoming more comfortable purchasing real estate in the region “The Caribbean is one of the hottest places to invest in a vacation homes. We help increase the comfort level for buyers.” 

“When purchasing a property, one of the most important issues to address for both a buyer and seller is how, and under what conditions, the funds will be safely transferred. In an international transaction this issue is even more important and often complicated, as both the purchaser and seller may not be familiar or comfortable having funds deposited in an unfamiliar jurisdiction or with an unfamiliar attorney or bank,” continued Finisterre. Stewart Title’s management of escrow accounts provides buyers with an impartial and invaluable third party service, including individual escrow accounts to avoid mishandling of money, time management to keep each transaction on schedule and fraud prevention. In the Caribbean and Central America alone, Stewart Title has assisted in more than 15,000 international transactions and guaranteed the title to more than US$3 billion of property value. Stated Finisterre; “We recognize that purchasing a luxury vacation property in paradise should be paradise. Hence we provide a smooth and professional real estate transaction, leaving the new owners to enjoy their property!” In Jamaica, Stewart Title is the appointed escrow and title agent for The Palmyra Resort & Spa at Rose Hall, the new luxury condo-hotel adjacent to the Ritz-Carlton in Rose Hall. Said Finisterre; “We are pleased to continue Stewart Title’s tradition, trust and service by providing full service real estate solutions for one of the Caribbean’s most luxurious and exciting new developments. We look forward to facilitating smooth, comfortable transactions for their buyers.” 

Currently, Stewart Title provides real estate transaction services throughout 8,000 policy-issuing offices in the United States and in more than 30 markets worldwide. The service provider, headquartered in Houston, Texas, was included in the Forbes Platinum List for Best Big Companies in America in 2003, and ranked one of the fastest growing companies in America by Fortune in 2004 based on its financial strength and excellent reputation.

With the laws in place to ensure a secure the rights of the real esate owner, it has made sense for many to become part of the Montego Bay, Jamaica Gold Coast Renaissance. 

 Does it make sense for You to get Involved? 

That really all depends...

Why Own Real Estate in Jamaica?

Investment Real Estate Location Profile

Jamaica, an island of beautiful white sand beaches, crystal clear waters and lush mountains has long captured the imagination of Americans and others, however the nation’s past reputation for petty crime and entrenched poverty have often left tourists wary of traveling there.  In today’s article we will examine Jamaica’s past, present and future.

HISTORY & GEOGRAPHY

(146) miles in length and (50) miles wide, Jamaica is situated south of Cuba and west of Hispaniola in the Caribbean Sea.  The climate in Jamaica is tropical, with hot and humid weather, although higher inland regions have a more temperate climate. The island of Jamaica is home to the Blue Mountains inland, and is surrounded by a narrow coastal plain. Most major towns and cities are located on the coast. Chief towns and cities include the capital Kingston, Portmore, Spanish Town, Mandeville, Ocho Rios, Port Antonio, and Montego Bay.Discovered by Christopher Columbus in 1494, Jamaica is the third largest island in the Caribbean, and the most populous English-speaking Island in that region.  From its discovery till 1655 Jamaica was a Spanish territory until it was seized by the British.  Independence came slowly to the Jamaican people, finally achieving sovereign status in 1962.

ECONOMICS

More diversified than most Caribbean economies, Jamaica has significant resources.  The country is involved in agriculture, mining, financial services and tourism.  Unfortunately Jamaica experienced a bout of hyperinflation in the 1980’s.  Inflation peaked at 80% in 1991, but recent economic reforms have led to a dramatic reduction in inflation.  Additionally, significant investments in infrastructure bode well for Jamaica’s economic future.  Sir Kenneth Miller, President and Founder of the UN National Committee for Habitat recently commented, “The modernization and re-development of MBJ Sangster International Airport and the North-coast Highway project, connecting the resort towns of Negril, Montego Bay and Ocho Rios, both projects with major private sector participation, have spurred unprecedented levels of foreign direct investment. Indicators suggest that Jamaica may move ahead of many other Caribbean nations in coming years.”  Ranked remarkable number 17th by the World Investment Report, Jamaica has attracted in excess of US$3bn in private, foreign investment in the last three years alone, and change is taking place in almost every industry corner, including real estate, tourism, banking, telecom, energy and transportation. In addition to some ultra-luxury real estate projects, notable projects under development along the northern GOLD COAST include the 25,000 seat Trelawny Multi-purpose Stadium under construction, a new Convention Centre in Rose Hall and the new Shoppes at Rose Hall offering high end duty free shopping and entertainment.

CRIME

Plagued by a history of poverty, Jamaica is finally becoming very successful in some locations at reducing crime as they were in reducing inflation.  In the exclusive areas, tourists and real estate owners are very safe.  With the billions of dollars in consistent infrastructure investment and more on the horizon, most areas, especially along the Gold Coast of Montego Bay, have become a prime location for privacy, beauty and privilege.

THE FUTURE

Jamaica has significantly improved their economic foundation, which is leading to a higher standard of living and much increased global attention and sustained increases in annual tourism.   Because it is important to feel safe when vacationing or investing overseas, the best option for tourists and investors is the northern coast (Gold Coast) of Montego Bay, especially in the most elite Rose Hall district.  The Gold Coast of Montego Bay is well known for its stunning beauty, captivating beaches, and now its high-end luxury real estate and shopping.  With commitment from the Jamaican government in recently spending prodigiously in the region to improve their airport, roadways, and police protection, tourists and real estate owners are afforded all the comforts of other resort locations with the unique character and the beauty that is only Jamaica, The Gold Coast has become a very sustainable location to own luxury real estate.  Jamaica compares favorably with all the Caribbean islands, due to its unique culture, accessibility (only a couple hours direct flight from most US hubs) creative and friendly people, ideal weather, wonderful beaches and spectacular mountains and an abundant water supply. Jamaica provides an opportunity for investment real estate buyers to have it all and get ahead of a long term positive economic and infrastructure boom.