November 2008 - Chuck Kinder
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Mexico's Real Estate Growth - A Golfer's Paradise
Chuck Kinder, BEST Golf Guide Magazine
Not all golfers seeking second, retirement or investment homes or condos are looking for golf course communities, after all not all residents of golf course communities are golfers….but golfers do like to be near great golf in Mexico and the tranquility and scenic value of a golf course environment is unbeatable.
Real Estate marketers seek out golfers as a desirable target group known for their higher net worth, premium spending for airlines, hotels and restaurants and real estate, golfers tend to travel and love to play golf year round, something that México can offer.
The fact is today the economic balance in real estate has shifted from a sellers market to buyers delight, especially in the search for homes in the US. The Mexican real estate market will expect the same, no doubt, but not as much nor for as long a period.
A recent study by Golf Digest and Business Week and conducted by Longitudes Group, LLC to survey forty of the most popular golf course destinations and vacation home markets in the US and to track real estate trends within these communities. High end home were found to be holding their own and homes on golf courses had continued to appreciate or maintained their value as compared to non-golf homes. The same trend can apply to the growing list of top quality golf course communities in Mexico.
At the beginning of this year, Mexico had over $300 billion worth of build out value in planning or in process of development. In today’s current financial state of affairs, some of these projects are on hold, some have lost funding, and others continue to attract buyers and builders of dream homes pent up from a life long goal of retirement in Mexico.
Not only American baby boomers, but Canadian seniors as well as Latin America is aware of Mexico’s Real Estate growth as an investment potential with plenty of direct flights from Rio, Buenos Aires, Lima and Bogotá.
Mexico’s home mortgage credit is a new vehicle now available in quantity with competitive rates for Mexican Nationals and Foreign investors for the first time, opening a new segment of buyers and investors. The growth of world class golf courses in the key areas of Los Cabos, Vallarta and Cancun/Riviera Maya have helped stimulate and enhanced accumulated appreciation of real estate projects. Large development groups from around the world have taken an aggressive search for raw open land with or without SEMARNAT (Secretaria de Medio Ambiente y Recursos Nationales.) permits to build more units.
A tope of noticeable proportions has interrupted some experienced and well financed companies with the continuation of over 30 new golf courses with designer labels like Nicklaus, von Hagge, Fazio, Dye, Love, Player, Norman, Doak Many of these golf course developments are real estate plays with full ownership, hotels, condos, fractional and to some degree time share or residential clubs, exchange are the current mix of investment opportunities in Mexico all trying to get into the TOP 30 list of RESORT or PRIVATE golf courses in Mexico. (To see a list of the 2008 top 30 Private and Resort courses, go to): http://www.golfinmexico.net/top30/2008_list30.htm
Where to live and invest is a matter of preference, knowledge of locations in Mexico, weather and climate, approximation to airports, health services, safety and sanitation. Typically golfers who have traveled about México have experienced one or more destinations and are attracted to areas with multiple courses to choose from between daily fee resort courses or private country clubs.
Although beach destinations are the favored location for many US and Canadian second home or retirement investors, inland cities are getting on board and have attractions due to low land – housing cost, living expenses, fee simple title and thriving US ex-PAT communities. Areas such as Lake Chapala near Guadalajara, San Miguel Allende, Morelia and Monterrey are fast becoming terrific communities befitting old world colonial with modern health services, wonderful restaurants, private country clubs amenities at respectable rates.
We have created a directory of selected and recommended properties in most of Mexico’s key locations, some are in private gated golf communities, others on or near by, condos, villas, single family homes, townhouses. For your convenience we have updated our website at http://www.mexicogolfrealty.com
About the only thing left is to pack your clubs, clothes and sun lotion and head south for a look at your next new home. For more information contact Fabiola Kinder at Fabiola@fabulousresorts.com or call 949-494-8561.
When you are ready to buy – follow these key issues.
Holding Title Get proof of ownership – a public deed (escritura publica) with NO liens.
Hire a Lawyer A must to help you though the buying process - get advise
Making an Offer in writing – promise to buy – Oferta – 5%-10% deposit required
Transferring Deposits use escrow company to protected the your deposit and final payment
Public Notary- life line of legal buy/sell contracts…The Nortarios are in their position for the Bank Trust and the Restricted Zone needs to set up Bank Trust in the Restricted Zone.
All the rights to the property will be held exclusively by the buyer.
Registration at the Ministry of Foreign Affairs required to secure ownership
Closing the Transaction buyer must appear in front of Notary Public…all monies in…45 days later transfer of property is completed
Charles Kinder, Publisher of Best’s Golf Guide to Mexico, Golf Guide to Los Cabos, Golf Guide to Mexican Riviera and Golf Guide to Cancun/Riviera Maya and Golf Guide to Baja and Sea of Cortez. To view online publications go to:
http://www.golfguidetomexico.com/digital/
President of BEST4GOLF and www.BEST4MEXICOTEETIMES.com... Leading companies for Golf travel packages and tee time reservations.
Chuck Kinder
949-494-8561
ckinder@golfinmexico.net
http://www.golfinmexico.net