Zihuatanejo bay in the evening

Zihuatanejo bay in the evening. Photo by Pamela McDermid.

Both the Mexican Association of Real estate Professionals (AMPI) and the National Association of Realtors® (NAR) will be having educational events, in the middle of the fourth quarter of 2010.

The National Association of Realtors will meet in New Orleans November 5-8th, for NARDI gras. A wide variety of educational events will be included along with a major Trade Show. Those attending will have an opportunity to hear a delightful and motivating keynote presentation by Regis Philbin, the cultural icon and energetic host of “Live with Regis and Kelly.” New Certified International Property Designees (CIPS) will receive their pins and certificates at a CIPS breakfast. On the social side, there will be a welcoming reception for international delegates and the always popular international Night Out and Awards ceremony.

The Mexican Association of Real Estate Professionals (AMPI) will hold its Annual Conference and General Meeting in Monterrey, N.L. The dates are November 10th to 14th. There will be a series of classes for those attending and several social events, including a program for spouses. A new Vice President and members of the National Advisory Board will be elected. A trip to look at the market in McAllen, Texas, will take place at the conclusion of the conference. AMPi’s Annual General meeting will take place during the Conference.

A City Within a City:

A mega project is underway in Morelia, the state capital of Michoacán. According to developer Francisco Medina, the commercial component at Altozana, it will be the largest in Latin America. The commercial area will include a convention center and four hotels, department stores and a modern state of the art health club. Club Altozana includes an Olympic size swimming pool. Twenty thousand homes are scheduled to be constructed. More than 3,000 have already been sold. There is an outdoor theater seating 10,000 with a view of the city. It will be used for artistic, music and cultural events. Five hundred trees have been planted at the development. Businesses in places such as Mexico City and Guadalajara are being invited to locate their head offices at Altozano. Plans for promotion to the United States and Canada are on hold pending the end of the Global Economic Crisis. Mexico’s President, Felipe Calderon inaugurated the mega project on September 29, 2010.

“Invest in Mexico,” – Advice from a Business Guru:

Jim Cramer, the bombastic, high-energy investment Guru and host of CNBC’s massively successful show “Mad Money” gave Mexico real estate investment a big boost. Cramer told his audience: “It’s not such a bad idea to diversify away from stocks, I think that out of favor real estate in Mexico, that’s easily accessible to Americans, represents a great buy.”

With as many as 2.5 million investors viewing the show each week, the controversial host wields quite a bit of influence among his viewer ship and in the marketplace as a whole. His following is so intense that it has created a unique phenomenon in the stock market known as the “Cramer Bounce,” which can be best described “as the sudden overnight appreciation of a stock’s price after it has been recommended by Jim Cramer on his CNBC show,” Mad Money.

Following his own advice, Cramer recently announced to his audience that he had already purchased three properties in Mexico within the last few weeks. When asked about hyped headlines about drug violence and turmoil in Mexico, Cramer downplayed those fears, he said, “Mexico is a big country and not every province, every state is involved in the drug trade,” and he added, “it has to be one of the nicest places I’ve ever been.”

When asked why he invested money in Mexico real estate, he replied, “There is “no property tax,*” the properties are “incredibly easy to maintain,” and there are “property managers everywhere.”

*NOTE: The statement about property taxes is not correct. But, property taxes are substantially lower when compared to countries such as the United States and Canada

Findings on U.S. Retiree Real Estate and Housing Trends in Mexican Coastal Communities; A Report from The International Community Foundation:

For years, U.S. & Canadian retirees have re-located to Mexico as an alternative retirement destination that was affordable, offered desirable weather and was close to their communities of origin in North America. To further analyze these trends, especially in the context of the current economic crisis, the International Community Foundation surveyed over 840 U.S. retirees in coastal areas of Mexico over 50 years of age. key findings include:

  • Survey respondents selected Mexico for the lifestyle (79%), cost of living (75%), weather (69%), and proximity to the U.S. (63%). They also considered other overseas destinations, including Costa Rica, Panama, and Belize.
  • Over 62% of survey respondents live in a house rather than a condo. Focus groups also voiced a clear preference for Mexican-style colonial architecture and the “village” concept as opposed to high-rise urban living.
  • When considering the purchase of a home in Mexico, survey respondents noted that the availability of basic infrastructure and utilities (84%) and clear legal title (82%) were more important considerations than the price (78%).
  • The vast majority (77%) of respondents owned their homes; only 16% were renters. Though survey respondents were not specifically asked if their home was purchased 100% in cash or was financed, many focus group participants confirmed that they had purchased their retirement homes with cash.
  • 61% of U.S. retirees surveyed indicated that they would be willing to pay higher property taxes if they could be guaranteed better municipal services (including zoning enforcement, water, police, and fire).
  • When asked to advise those would-be retirees considering purchasing a home in Mexico, 69% of survey respondents highlighted the need to fully understand the risks of buying a home in a foreign country. 15% of respondents noted that retirees should “take the leap of faith” and that everything will work out okay.

The International Community Foundation released its report “Housing and Real Estate Trends Among Americans Retiring in Mexico’s Coastal Communities” to make recommendations to policymakers in both the United States and Mexico, as well as to educate and inform U.S. retirees about key issues to consider when purchasing real estate in Mexico. The report is the third of five research studies that will be published by the Foundation.

NOTE: The International Community Foundation is a public charity founded in 1990 with a mission to expand the level of charitable giving internationally by u.S. donors with an emphasis on Mexico and Central America
The full report can be seen at www.icfd.org/publicat10/rra.php