Mexico represents both a solid long term investment opportunity to the real estate buyer seeking underlying price growth as well as a good short term opportunity for the property investor interested in drawing down a strong income from rental rates.
The opportunity for sustainable and strong long term price growth is built on the fact that the Mexican government are working consistently to strengthen and broaden their economy and also because the demand for property for sale in Mexico from overseas buyers is intensifying annually. Many companies like Baja Quest are fine tuning the process of land acquisition by taking care of property trust (fideicomiso), title insurance, title registration, foreign relationship permits and taxes, allowing foreign investors to develop land in the country.
Those mainly interested in drawing shorter term income in the form of rent should target the holiday and tourism market where there is year round interest in well serviced and facilitated accommodation and where the weekly rental rates can be impressive.
The majority of those looking for land investment opportunities in Mexico are already aware that their target resale or rental market is retiree or tourism based. The retiree market is growing as baby boomers head towards retirement age and interest in property for sale in Mexico is no longer restricted to North American citizens because European retirees are also aware that they can have an affordable retirement in the sun simply by relocating to Mexico.
In terms of the tourism market, Mexico receives around 22.3 million international visitors a year and of those an estimated 300,000 to 500,000 Americans and Canadians take extended holidays in excess of four months in Mexico every year and this figure is not only rising but substantially supplemented by long staying visitors from Europe and the UK. A large percentage of all visitors seek accommodation to let out on a weekly basis and this form of short term letting reaps the highest rental yields.
Land Investment in Mexico is significantly cheaper than in either the United States, the United Kingdom or in mainland Europe but as demand increases so prices inflate. Those buying now are buying into a predicted strong period of growth. The government of Mexico highlight five main reasons why an investor should consider Mexico and if you’re interested in investing in land in Mexico for investment purposes you should also bear these five points in mind:
Mexico is located right next to the United States; it has excellent transport links to North and South America, Europe and Asia making it an accessible country for tourists and retirees and a country that can forge stronger economic ties with all of these aforementioned geographic regions over the long term.
Mexico has already signed free trade agreements with more countries in the world than any other nation to make the country massively competitive and attractive; this is already resulting in free flowing inward foreign direct investment which makes the country’s economy even stronger.
The Mexican government is committed to a program of economic growth through sustainable development and improvement which is already making Mexico a more attractive country in which to live and invest.
Mexico has already attracted in excess of 16,000 foreign companies to its shores and this has created jobs and increased the wealth of thousands of local Mexicans which in turn has resulted in increased domestic purchasing power. There is now a strong local rental market in many of Mexico’s major cities which a real estate investor could consider targeting for long term rental income.
The tourism sector already generates around eight percent of Mexico’s GDP, it provides nine percent of all jobs in Mexico, it generated in excess of USD 8.9 billion annually and is Mexico’s third biggest currency generating activity and is therefore of massive and fundamental importance to the economy of Mexico. As a result the Mexican government is not only keen to further promote it, they are keen to receive foreign investment into the tourism sector as well.
Real estate investors considering Mexico should take great comfort from each and every one of these facts as they highlight the fact that Mexico is one of the safest ‘emerging’ countries with a forward thinking government committed to economic growth and that the real estate market in Mexico is growing built on solid foundations, is affordable and is growing in appeal with housing units in cities and major resorts massively in demand both locally and from overseas buyers creating a perfect environment for price growth and rental yields.

We have all heard that “green” and “Sustainable Design” is not only the way of the future but the way of the present. Yet in some areas, going green hasn’t become so, not yet at least. With the ever rising costs of materials, the slowing housing market and an economic recession looming around the corner, lots of developers are somehow “putting off” using a sustainable design until more strict regulations are put into place or until they’re forced by the market. But a difficult market does not mean that developers have to stay away from environmental and social responsibility either.

There are many steps that a developer can take, without losing all the parameters that he would expect from a traditional development, in order to improve the bottom line without leaving a big mark in the environment. All that’s needed is a little bit of creativity and a good team of knowledgeable engineers, architects and land planners that will make sure that incorporating sustainable design practices, as many as they can, that are practical for the project and the site.

Once considered more of a lifestyle, “green living” is now a tremendously attractive market that allows developers to reap great rewards from their investment. A fast growing number of developers want to create “better places” incorporating responsible concepts; it’s just a learning process.

Achieving a balance between marketable projects and environmental conservation is not a difficult task at all. Developers will find that with strong communication between site engineers, project managers, city officials and environmental consultants will allow them to establish the correct standards that fit both the objectives of the project and the city or state’s regulations.

Within the Baja region, are there any areas that you specifically recommend because of its potential for growth?
We recommend ocean front, and ocean view homes in the best communities. I know there is nothing surprising in that statement, but finding the best communities and homes is part of the formula to experience quicker and more solid upside in your investment once the economy strengthens. We believe that growth will continue along the ocean front regions with a focus in Baja California Sur. Why?? Being affected heavily by the problems of corruption and bad publicity Baja California, known as Baja (norte) became less attractive for potencial customers this problems have absolute no impact on Baja California Sur! Living economically, in coastal communities is a style of living that will continue to fuel growth as more people are working remotely, and more retirees stretch their dollars.

What do we see for the future of real estate in the Baja California region?As of the time of this writing, we see great values being had by buyers over the next two years in Baja beach communities. We see more people coming down to live who can work remotely and entrepreneurs offering diverse services to the large and growing expatriate communities.

Friday October 3rd 2008
Day one of the 2nd Annual Gold Cup fishing tournament started early this morning.
Pictured below is Team Baja Quest, sponsored by Newtek Construction Solutions, Baja Quest Developments and KIZA Marketing and Sales, aboard Sea Quest II. Anglers from Left to Right.
Michael Reye, Bill Woodhouse, Les Zwaryck, Captain Martin, Dr.Gaxiola, and Captain Fransico. This international team of Anglers from Mexico, Canada and the United States is one of the 60 plus registered teams, mostly from La Paz, that are participating in this Charity tournament for DIF, the Mexican agency for underprivileged children.

This is a two day tournament, we will be posting more news tomorrow morning, on the results of Day 1. Stay tuned!

Charts were consulted, water temperatures, weather predictions, satellite photos, radios, video equipment, historical data. Advise was given, opinions, details, details details. This is a great tournament. It is designed for everyone to be able to be involved. It is designed so that everyone will win something. Raffles, giveaways, auctions, family fun, lots of fun for the kids. This tournament is about community. Friends in good natured friendly competition. More news in a few days!

The view the either a image or the slideshow click the thumbnail pictures – images by Rory King, Kiza Associates

Investing in La Paz…now…simply means that you will make money going into the deal as well as when you sell. Many are looking at Land Banking in La Paz, where there is incredible future value, as a better investment opportunity than buying heavily discounted distressed properties in the U.S.. Development of Ocean view and beach concepts near existing developments offering golf and other amenities seems to be a sound investment. The evidence is in the facts. Properties here in La Paz are selling! Yes there is a slow down, yes people are cautious, doing lots of due diligence, but they are still buying. Our market is international and National. Much of the investment that we see comes from the mainland of Mexico, from Mexican Nationals.

We are seeing that sales are slower than we expected. However we are not seeing a panic. Caution yes, but that is to be expected. We are still selling, tourists are coming, our occupancy is good for the fall and 2009 season, and it will probably get better as the year closes.

Have a look at La Paz. Take a look at our projects. There are still very good investment opportunities at extremely good prices, that are not considered distressed!

Our subdivision, NewTek Construction Solutions, a longtime La Paz “resident” is happy to support the Beneficiaries of this great southern Baja sporting event. Ciudad de los ninos y ninas de La Paz and the Rotary Club. The first annual La Paz Gold Cup created over $1,500,000 Mexican Pesos in Prize Money and the La Paz Prosthetic Clinic was the the beneficiary of all net proceeds. The Rotary Club is a worldwide organization of business and professional leaders that provides humanitarian service, encourages high ethical standards in all vocations, and helps build goodwill and peace in the world. Approximately 1.2 million Rotarians belong to more than 32,000 clubs in more than 200 countries and geographical areas

Category “A”

• Black & Blue Marlin (200 lbs. minimum)
• *A 2008 PICK UP TRUCK for largest fish over 400 pounds


Category “B”


• Catch & Release Black, Blue & Striped Marlin

ENTRY FEE: $7,500 Pesos per team 1 to 4 Anglers ($2,000 pesos per Additional Angler)

A map of the fishing grounds can be found here to view.

The European markets are also spending time looking over what we have. There is already a great deal of money invested in Baja and La Paz, and the East Cape and more investment money from the European markets is going to flow into Baja Sur developers compare the cost of beach front properties in La Paz, to other areas of the world. At least three times a week we receive a call from an investor, inquiring about the area, and the prices per square meter. Right now it is an exceptional value; no one will argue that point. The troubled times that we are going through now, will turn around. We have been here before when the dot com bubble burst, we lived through that down turn, we will live through this one as well.
Those investors that can see this as an opportunity, are cautious, do their homework and due diligence, invest now, will see the price of their real estate increase substantially as we bounce back from this speed bump!

Throughout Latin America, only two buildings, one of them in Mexico, are LEED certified. But the list could grow. Six Mexican projects have registered with the U.S. Green Building Council (USGBC) for LEED certification. And in 2005, Mexico founded its own green building council (MexicoGBC), the first in Latin America. “Mexico’s building and construction industry is just waking up and realizing that we are big players,” says Cesar Ulises Previno, MexicoGBC president. “We have a lot of potential to make a difference.”

Some companies decide to build green because they want to set a precedent, says Carlos Fernandez del Valle. This was the case with Cinepolis’s 162,000-square-foot headquarters. Occupying just 10 percent of a hillside site, four low-rise buildings will feature rooftop gardens, daylighting through low-emissivity glass, and ventilation from windows that open onto interior courtyards. Cal;culated estimates that operating costs will be 30 percent lower than comparable-size buildings in Mexico. Another project among the fresh green crop is a $12 million, 119,000-square-foot office building in Guadalajara designed by TEN Arquitectos. The 14-story tower features a woven steel-mesh skin that protects it from the elements and reduces the strain on heating and air-conditioning. Behind this screen, operable windows in the glazed curtain wall allow for natural ventilation.

As energy costs rise alongside concerns about climate change, Mexican businesses are realizing that sustainable development is worth the investment. But the government has yet to define standards for determining efficiency, Previno says, let alone offer incentives to developers who go green. “There are buildings here incorporating solar power, recycling water, but how can we define what falls into ‘green’ and what doesn’t if we don’t have a formal checklist?”

MexicoGBC is currently creating a LEED program tailored to the country’s needs. There are also signs that the government is showing interest in sustainable development. It tapped Alberto Kalach to design the new Biblioteca Vasconcelos public library in the capital city. Kalach’s aesthetic features plain concrete and wood, which reduce the use of paint. “When you don’t spend energy making an extravagant facade, you consume less energy building it,” he says.

With ample daylighting and an on-site water-treatment plant, the 500,000-square-foot library campus embodies both traditional Mexican approaches to green architecture and more sophisticated technologies. “There’s a lot of intrinsic knowledge in the design features of Mexican architecture and construction,” Previno observes. “We need to rescue those good values.”

Credits on this content go to Architectural Record

The Yellowstone Business Partnership (YBP) has been invited to present an educational program on their Greater Yellowstone Framework for Sustainable Development (GY-Framework). YBP’s GY-Framework was designed to help the largest, intact ecosystem in America survive demands of rapid development. Taking lessons from LEED, over 80 volunteers from the YBP membership worked for nine months to develop a tool that defines sustainable development for the region. There are currently seven prerequisites and 57 credits that cover categories such as Land Use and Conservation, Biodiversity, Recreation Resources, and Public Service and Infrastructure.

The honor of being selected to present at Greenbuild is even more significant according to Mary Ann Lazarus, chair of the Greenbuild 2008 Program Committee: “This year’s selection process was the most competitive in Greenbuild history with over 1,400 proposals submitted and fewer than 100 accepted into the final program. This level of selectivity enabled the Program Committee to assemble the strongest and most robust educational program to date.”

YBP’s presence at Greenbuild 2008 will give them international exposure to their innovative rating system, showing the building industry around the world that by looking beyond the built environment, developers can help preserve the cultural and natural heritage of a region.

The YBP Greenbuild educational program will begin with Jan Brown presenting the GY-Framework, its history and a description of the eleven registered pilot projects that will test the new rating system. These pilot projects include two high schools, local and state parks, a ski resort, and several mixed use and neighborhood developments.

Kath Williams, consultant for the GY-Framework, will then conduct an interactive Q & A with three of the eleven GY-Framework developers: Teton Meadows Ranch in Jackson, WY, Story Mill Neighborhood in Bozeman, MT, and Mountainside Village, in Victor, ID. These developers were chosen to participate because they represented all three states that YBP covers and they were comparable mixed use or neighborhood projects.

For more information on the Greenbuild Expo visit www.greenbuildexpo.org. For information on the USGBC and LEED visit www.usgbc.org. For information on the Yellowstone Business Partnership visit www.yellowstonebusiness.org or call (406) 522-7809.

The Yellowstone Business Partnership is committed to applying collaborative approaches to resolving multi-state challenges. YBP works with willing businesses to help them operate more sustainably, develop responsibly, enhance regional mobility and improve cross-boundary communications. The 5th Annual Conference at Jackson Lake Lodge entitled “Connecting the DOTs: Moving People and Promise across Greater Yellowstone” began the conversation on how to develop a concept of operations for a regional transportation network.

The US Green Building Council is a non profit organization that certifies sustainable businesses, homes, hospitals, schools, and neighborhoods. USGBC is dedicated to expanding green building practices and education, and its LEED® (Leadership in Energy and Environmental Design) Green Building Rating System™.

Credits for this contribution go in full to PRWeb