Mexico Resort Real Estate Update
From The Settlement Company®
Ver el anexo para leerlo en español.
Welcome to our Fourth Quarter, 2013 newsletter.
In some North America cities the real estate market is on the road to recovery. In fact certain economist are warning of another bubble. Here in Mexico, the resort areas are limping along with some bright spots, especially in the $ million plus market.
Meanwhile two major conferences were held this Quarter. Both provided opportunities to network and exchange valuable information. First was the annual conference for the Mexican Association of Real Estate Professionals. (AMPI) It took place in Mazatlan, Sinaloa. This was followed by the National Association of Realtors® (NAR) Annual Conference and Expo. Both were considered successful by those who attended.
Mexican Association of Real Estate Professionals Meet in Mazatlan, Sinaloa
The fifty-second Annual Conference and General Assembly of the Mexican Association of Real Estate Professional (AMPI) was held, this year in Mazatlan, Sinaloa. Among those attending were members of the Texas Association of Realtors and the World President of The International Real Estate Federation (FIABCI) Flavio Gonzaga Nunes. He came from Brazil and while at the Congreso, Flavio attended a meeting of FIABCI Mexico. After his trip to Mazatlan he left for Peking. Later, Flavio left for San Francisco to attend the Conference and Expo of the National Association of Realtors®
More than 400 members of AMPI came from all parts of Mexico. Among the array of interesting speakers was Chris Gardner. He is the author of the book, “ In Pursuit of Happiness” which became a popular movie.
At the Annual General Assembly, six members were elected to the National Advisory Board. Tony Hanna from Veracruz was elected Executive Vice President, The Assembly voted to have its 2014 Annual Assembly in Tijuana.
During the week, the Mexico Section of FIABCI met. Jorge Paredes of Monterrey, N.L. was elected President for 2014.
Realtor® Conference a Great Success
The National Association of Realtors® Conference and Expo was held in San Francisco this year.
Following is a quote from a Staff member at NAR,” Having attended this event four times already, it’s far from my rookie year, yet I find myself completely blown away at how our attendees continue to outdo themselves, each year. We had nearly 22,000 attendees overall, about 1,900 international attendees and delegations from four countries (Iceland, Jamaica, Dominican Republic and Ghana) made the trip to the U.S. for the first time”.
EDITOR’S NOTE: Mexico had 40 in attendance, a record number for that country.
The Conference and Expo offered a range of educational sessions and several notable networking and social events. These included; Residential Economic Issues & Trends Forum, presented by NAR’s Chief Economist, Dr. Lawrence Yun and a panel, Power Networking, What Drives the Foreign Buyer and Seller and for those interested in Mexico a panel, “Making Money with Mexico”. It was moderated by Linda Neil of the Settlement CompanyPresidential Liaison from NAR to Mexico.
Social events included the International Realtors Welcome Reception, Inaugural Gala for the Installation of new President Steve Brown who made an inspiring acceptance speech, International Night Out and Awards Ceremony, the Celebrity Concert featuring the well-known group Foreigner.
A favorite event for me is the CIPS breakfast. It is a chance to renew acquaintances with CIPS designees from around the world and meet new Designees. In 2014 a record-breaking 500 REALTORS® received their certificates and pins. I am proud to say that 29 are from Mexico.
This year, the General Assembly was addressed by Hilary Rodham Clinton, former Secretary of State and former U.S. Senator from New York. Her address was interrupted by applause, many times. Following her speech, she sat down with President Gary Thomas for a frank and open, Q&A. period. Gary’s first question produced laughter from the large crowd. It was. “.As my first question I am going to ask you tell us something everyone is waiting to hear. (A pause and then) When are you going to become a grandmother?”
Hilary’s appearance was preceded by the “Parade of Flags.” REALTORS from 61 NAR affiliated, countries came on stage waving their country’s flag. This was the second year for the event and it generated great excitement in the hall.
Next year’s National Association of Realtors® Conference and Expo will take place in New Orleans, Louisiana.
HSBC: ‘Mexico Real Estate the Investment of Choice’
~ Lorena Sonrisas – BanderasNews.com
Mexico’s strong economy and lower living costs, along with the lifestyle that can be found here, has thousands of foreigners setting their sights on Mexican vacation, retirement, and investment properties.
Puerto Vallarta, Mexico – HSBC, one of the world’s largest banking and financial services organizations, recently conducted a study designed to pinpoint the top emerging markets for 2013 and beyond. The study examined Mexico, Brazil and Argentina, the three largest economies in Latin America, ultimately naming Mexico as the “investment of choice.”
“What has long been known by Latin American insiders is that Mexico, the only Latin American country that is a member of NAFTA, has been the shining example of free-market economic activity in the region for over 15 years,” writes HSBC. “Combining this with a new government that has been clear about policies of reform; and HSBC has concluded that Mexico is the safest bet for investors in the region.”
Investing in Mexican real estate, whether it’s land, a home or a commercial property, can offer great value for money in comparison to prices in the US, Canada and Europe. Add to that a favorable exchange rate for U.S. dollars and other currencies, and investing in Mexican real property is even more attractive to foreigners.
With about 1.5 million Americans already owning property, Mexico’s real estate market is pretty well established, and as a result it is well equipped to cope with foreign buyers. However, Mexican real estate laws still differ substantially from the American system and there are many crucial nuances to consider before cutting a deal for Mexican property, say experts.
For decades, foreigners have had to use real-estate trusts to buy beachfront properties, because Article 27 of the constitution prohibits non-Mexicans from directly owning land within 31 miles of the coast and 62 miles of the nation’s borders. The trusts have provided a lucrative income for banks, lawyers, and notaries who are required to run them, and the extensive paperwork has discouraged many foreigners from buying.
But now, heartened by the proposed changes to Article 27 of Mexico’s constitution, which would loosen longstanding restrictions on foreigners buying property along the coast and the nation’s borders, thousands of foreigners are setting their sights on Mexican vacation homes and retirement properties.
“This change is a signal to foreign investors that they are welcome in Mexico, and that should boost real estate sales in the resort areas quite a bit. This is a very welcome change and I know my realtor friends are going to reap the benefits. However, people who have trusts may not want to rush out and cancel them,” said Terence L Reilly, CEO of Puerto Vallarta-based MEXLend Mortgages for Mexico.
“Trusts are an important estate management tool. If an owner of a property dies, and they have a trust, there will be nominal fees to pass the property down to their designated beneficiaries. All that is needed is to pay the Notary to change the registered document. But if there is no trust in place, then the property must go through probate and inheritance taxes will kick in. So, most savvy investors will want to keep their trusts in place. Paying a few hundred dollars a year for maintenance and then paying a nominal Notary fee is much better than going through probate courts in Mexico and having to pay a 30% inheritance tax,” he added.
EDITOR’S NOTE: There is no inheritance tax in Mexico. Mr. Reilly may have referred to the Capital Gains tax which is 30% of gain when property is sold to a third-party.
Real Estate Experts Discuss ‘Making Money with Mexico’
San Francisco, California – One of the more popular education sessions at the recent National Association of Realtors® (NAR) Conference was “Making Money with Mexico.” Linda Neil, ABR, CIPS, TRC and PIC was the moderator for a panel of Realtors representing a cross-section of Mexico and one panel member from California. Linda is the Presidential Liaison from NAR to Mexico and founder of The Settlement Company.
Linda Neil started the session with a report on Mexico’s strong economic climate and statistics as to the number of Canadian and U.S. citizens visiting and owning properties in the country.
Mercy Duenas was the opening speaker. She is a relocation specialist from Trilenium Real Estate in Guadalajara. That city, which is known as Mexico’s Silicon Valley, has never quit growing. Mercy shared her experiences and gave tips about relocating families and businesses. Thomas Lloyd and Julie Kershner made cameo appearances. He spoke about opportunities in Cancun and the Mayan Riviera. Thomas is Broker/Owner at Top Mexico Real Estate.
Next, was Guillermo Salgado from Cuernavaca, Morelos. “Memo” is President of the Mexican Association of Real Estate Professionals, AMPI. His topic was “Market to Market” This system links real estate associations in the United States with AMPI Sections for referrals.
Julie Kershner from Sotheby’s International Realty in San Jose del Cabo presented an overview of her market. The last speaker was Amber Neil of Real Estate eBroker Inc. She currently lives in San Jose, CA and has lived and worked in Mexico. Amber’s topic was Trans Border Transactions.
Judging by the number of people who stayed and spoke with the speakers after the Question and Answer period, the seminar was a great success.
Following the NAR Conference, NAR’s Presidential Liaison to Mexico visited Nevada. There she presented a ninety minute version of the four hour “Mexico A to Z” class. The presentations were made to the Global Councils of the Reno and Sparks county Real Estate Association and the Greater Las Vegas Real Estate Association.
Used with permission from John Glaab, Linda Neil Real Estate
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