Posted on October 23rd, 2009 No comments
The vast majority of my past and present clients have made their Mexico real estate investments in cash and therefore can typically wait out any downturn in the real estate market. In down markets, cash is king and real estate investors in the game for the long haul can certainly find great asset bargains. As good investments become harder to find in today’s financial markets, Playa del Carmen real estate and Cancun real estate are two markets that are attracting alot of attention from foreign real estate investors. With the slowdown in sales, developers are now open to offering discounts on their Mexican Caribbean real estate and savvy investors can pick up as much as 10-15% on their investments immediately. Investing in real estate in the Mexican Caribbean is very different than investing in the stock market, gold or other types of investments. While they all may rise or fall, investing in Playa del Carmen real estate or Cancun real estate, two of the “hottest” tourist destinations in the world, is also an income producing investment. With millions vacationing in these areas annually, most investors choose to use their Mexico real estate as a vacation rental property which can produce a net profit of 6-18 %. They also have the benefit of using their dream home in the Caribbean for their personal use and enjoyment. In addition, income producing properties are less volatile and tend to remain much more stable during times of economic devastation.
So while the dow may be up and gold prices may be on the rise, it is only a Playa del Carmen real estate or Cancun real estate investment that can give you a sense of security, a fair ROI and a breathtaking view of the white sand beaches and pristine turquoise waters of the Caribbean.
Posted on October 20th, 2009 No comments
While many countries grapple with economic crisis and the devastation of their real estate market, Mexico is one of a very short list of countries that hasnhad its real estate market not only remain stable, but in many locations continue to grow during this world-wide economic downturn. Many factors have contributed to the strength and stability of Mexico´s economy and sure footed real estate market but perhaps none more important than the lack of credit based debt throughout Mexico. Credit has never been easy to access in Mexico and therefore most of the foreign investment in Mexico “hotspots” such as Playa del Carmen real estate, Cancun real estate and Cozumel real estate have been on a “cash” basis. Wether cashing out investments, collateralizing other assets in their home country or simply pulling money out of their savings, foreigners have traditionally only had the option of paying “ cash” for their Mexico vacation home or Mexico real estate investment. In hindsight quite a blessing for many as their Mexico real estate investment has not only remained safe, but actually grown in value. Only within the last few years has mortgage financing become a viable option when purchasing Playa del Carmen real estate and Cancun real estate and only for a small portion of available Mexico real estate. As guidelines for lending have continued to get tougher in the States, Canada and Western Europe, banks have remained consistent in Mexico as they are more confident in their equity based loans and in the stability of Mexico real estate. For more information about purchasing Mexico real estate, the security of Mexico real estate or financing Mexico real estate, contact us today.
Posted on October 14th, 2009 No comments
Nick Price residences gives a boost to Playa del Carmen real estate with its unbeatable location, amenities and financial options Nick Price residences has made it easier than ever to invest in Mexico real estate. With a 10,000 refundable deposit you could be well on your way to owning your Caribbean dream home. Nick Price residences offer 30% down payment payable over 12 months and a low 5% mortgage for 20 years upon delivery for the remaining 70%. It couldn´t be easier and you couldn´t find a more luxurious gated golf course community in Playa del Carmen Real estate. Homes are going fast with these aggressive financing options so contact us today to find out how you can call Nick Price residences in Playa del Carmen, home.
Posted on October 9th, 2009 No comments
It is Close to Cancun, but Only in Miles
Playa del Carmen, Mexico — Forty miles down the Riviera Maya coast via Mexico 307, I was a world away from the relentless hubbub of Cancun, rolling along a narrow, winding flagstone road to the ocean through mangrove so thick that it blocked the sun in spots.
The Maya Riviera, Mexico Over the last 15 years, as Cancuns growth has begun to max out, vacationers and retirees have looked to the Riviera Maya, the 100-mile stretch of blue-green Caribbean and bleached white sand that stretches south to Tulum. There are now a total of 35,000 hotel rooms, condominiums and timeshares on a coast that not long ago was largely fishing villages backed by scrubland and verdant jungle.
The result is a kind of anti-Cancun. That resort town, Mexico’s most famous, is all about the vertical, the high density, the buzz and the next margarita. The Riviera, though, is about the horizontal (resorts can’t be more than four stories), low density (developers can build on only 5 percent of their land), environmental sustainability, diving the world’s second-longest barrier reef (after the Great Barrier in Australia) and climbing the Mayan ruins at Tulum and Coba.
“It’s a few miles down the highway,” said Laura Zapata, president of the Riviera Maya branch of A.M.P.I., the Mexican association of real estate professionals. “But it’s a different universe.”
Certainly, that’s what Ara Der Sarkissian, 36, of Los Angeles, felt he was getting when two years ago he plopped down $1.3 million for a 1,500-square-foot beachfront condo at Rosewood Mayakoba, in the Mayakoba resort complex here being developed by OHL, a Spanish company. Mr. Sarkissian took a second mortgage on property he owns in Los Angeles, where he is a broker at his family’s real estate firm.
“It’s just that the beach was so beautiful,” he said, recalling that he fell in love with the place back in 2007, when he visited while on a cruise to nearby Cozumel. “This property can be anything you want to make of it — formal or laid-back.” Mr. Sarkissian said that because he stayed at the property only five to seven weeks out of the year — Rosewood leases it the remainder of the time — he has been able to pay off his loan and all fees to Rosewood and pocket a little profit most months.
Mexican economic growth forecasters expect the Riviera Maya to experience a 15 to 20 percent decline in sales of such seven-figure-and-up properties, like Banyan Tree’s villas, and so appreciation of existing properties may slow as well. But it will be decelerating from a growth of 19.5 percent in 2007 — which is why Mr. Sarkissian said he thought his property was worth $2 million.
Mr. Sarkissian is one of about 10,000 Americans who are property owners here; they constitute about 5 percent of the Riviera Maya’s total population of 235,000. The rest are an amalgam of Canadians, Europeans, Latin Americans and Mexicans.
Mayakoba — a 1,600-acre development that will eventually feature 1,000 rooms and residences under the flags of Banyan Tree, Fairmont, Viceroy and Rosewood properties — has given the Riviera Maya a bit of a snooty reputation. But it is actually a demographically ecumenical place, one long mall of second-home possibilities that stretches from the lofty heights of Mayakoba to the more modest Playa del Carmen, where Paul Ilg, 75, and his wife, Geri, 69, of Clarkston, Mich., bought a home. The Ilgs decided to live half the year in what is Riviera’s fastest-growing beach town after Mr. Ilg’s retirement a decade ago from General Dynamics.
Though neither speaks much Spanish, plays golf or scuba dives, after a vacation here in 1999 they found a two-bedroom condo in the heart of town for $79,000, which they paid cash for by taking a second mortgage on their home in Michigan. They enjoy long walks along the town’s funky Fifth Avenue — 10 blocks of nonstop restaurants, cantinas, jewelry and T-shirt shops — and the “sweetness” of the town, despite the fact that its population has tripled in the time they’ve lived there. It doesn’t hurt that Mr. Ilg estimates that his condo has appreciated to $180,000. (This kind of value is another reason that the American contingent here may be the only truly happy American homeowners I’ve spoken to lately.)
George Williams, a retired printing company owner from Seagoville, Tex., visited the region five years ago on a dive trip to Cozumel. He and his wife had always loved the beach life, and so he did some whimsical home hunting in Playa and bought a lot for $150,000 in one of its original gated communities. An airy, 4,000-square foot, $500,000 hacienda wasn’t far behind. “I wake up to the sounds of tropical birds,” he said. “We have our own iguana out back. That money’s in a better place than it could be. I’m a happy man.”Mr. Williams’s neighborhood has the air of an established suburb in Southern California. But for a more bohemian feel — and prices — the town of Puerto Morelos, about 20 miles north of Playa del Carmen, is probably the ticket.
“You tell me where you can get beachfront anywhere else in the world for under $300,000,” said Amber Pierce-Schulz, a local real estate agent, after showing me a one-bedroom, 800-square-foot condominium on the water.
The newest boomtown is Tulum, where the main draw is the ruins of a Mayan seaport. The Riviera can keep propagating fresh generations of condos and villas in a wide range of niches because of that endless beach — development theoretically can extend another 50 miles south of Tulum, with the exception of lands protected by an ecological reserve, to the border with Belize. But the real secret to its success may have more to do with Cancún and less to do with that vast coastline.
The Riviera Maya may pose as an anti-Cancún, but it benefits a great deal from the Mexican government’s emphasis on public safety and quality health care in and around its most valuable resort town. Though Mexico’s nationalized health care system ranks 61st out of 190 systems rated in the world by the World Health Organization in 2000 — the last time the group did the survey — care there can cost less than half what it does in the United States, which was ranked 37th in the same survey.
Public safety in Mexico is difficult to make sweeping assurances about these days. But most of the drug cartel violence that has received so much publicity has usually occurred in the nation’s border towns.
Ultimately, a bigger problem for the Riviera Maya may be continuing to live up to its promise of delivering beauty without the excesses of Cancún. A drive through Tulum revealed the good news that, on the beach side, developments are adhering to low-rise, low-density dictates; but also the bad news that, on the inland side, where developments of “shoe box” housing are serving buyers seeking less expensive homes, the beginnings of a backslide can be seen.
It’s hard to know if development on Cancún’s scale is inevitable, but if that happens, it most likely won’t be because of Ray Graham, 74, of Latrobe, Pa., who was relaxing at his hacienda near Bacalar — said by some to be the next Tulum. Insects swarmed through the air, and the humidity from the nearby lagoon made it difficult to breathe, giving the setting more an aura of the Mosquito Coast than any riviera.
But Mr. Graham and his wife, Reba, 70, had found what they wanted. “We like it out here,” he said, wiping sweat from his brow and gazing at the jungle surrounding them. “It’s away from all that in Cancún. Away from everything.”
Posted on October 8th, 2009 No comments
Recently many of you have contacted me wanting to know how the economic crisis has affected Playa del Carmen real estate. Is it a good time to buy?After nearly ten years in the Playa del Carmen Real Estate Market, I can tell you that it has never been slower than it is right now. The economic crisis and undeserved negative publicity have certainly taken their toll on the Real Estate market here in the Riviera Maya. The market has certainly slowed, but as a whole the prices have not fallen and continue to remain stable. This is a great time to find your dream home in the Caribbean as there is less competition for homes and the supply of homes is up. Supply has finally (after nearly 10 years) caught up with demand. Keep in mind we are the Mexican caribbean and I emphasize the word caribbean as there is very little available and demand for such property will only get greater with time. With close proximity to the states and Canada, tropical wether year round, low cost of living and world class health care, Playa del Carmen is and will continue to be a great investment…Be looking for my next e-maill when I answer the question: are there any Playa del Carmen foreclosures or Playa del Carmen short sales?