Puerto Vallarta South Shoreline
By: Jim Scherrer
Thanks in part to the tech and housing bubbles, Americans have experienced an unusually strong growth in net worth during the past 15 years, The graph below depicts a typical stock market portfolio value growth of more than 200% during the first five years of this period followed by the bursting of the tech bubble and then returning to more than 200% followed by the bursting of the housing bubble and finally recovering to nearly a 150% gain.
SPY 15 years
The combination of stock portfolio growth, housing value appreciation, easy credit, and refinancing capabilities put most Americans of the Pre-Boomer and Boomer generations in a financially comfortable position and an optimistic mood for most of the past decade.
Having confidence in the economy and the feeling of financial strength, many of these about to retire people started planning for retirement and the thought of a second home on the beach or Sierra Madre hillside in sunny and beautiful Puerto Vallarta, Mexico seemed like a very logical and affordable plan.
In 2000, representing the Alliance for Change and the Mexican National Action Party (PAN), Vicente Fox, and then six years later, Felipe Calderon (both Harvard graduates), promoted strong foreign investment philosophies thereby creating an environment conducive to capital expenditures in Mexico.
With the retiring North Americans shopping for a beautiful place to retire and the Mexican government inviting them with open arms, conditions were ideal to ignite a ten year housing boom. Consequently, from 2000 to 2008, the demand for condos seemed to be insatiable and developers from all over Mexico, the US and Canada, and even Europe raced to Vallarta in order to cash in on the land rush.
The developers started buying up all of the remaining beachfront property and the available prime hillside lots and soon thereafter, they started planning their developments. By 2001-2002, construction of the first projects was underway. It seemed as though the supply just couldn't keep up with the demand as many of the projects were at least 30% sold out prior to breaking ground and were completely sold out well before the project was finished.
Due to the success of these initial projects, the developers immediately started planning future, substantially larger projects. By 2006, there were more than 100 developments (many mega-projects) in the planning stage and pre-construction sales were well underway. Many were multi-tower or multi-building complexes with hundreds of condos that were to be constructed in phases.
As soon as the design of a new project had been completed and attractive conceptual drawings had been prepared, the developers would set up a trailer or perhaps an office in one of their completed projects and start their pre-construction sales activities. Of course, the first "invitees" allowed to take advantage of the pre-pre-construction prices (slightly above the cost of construction) were those that had previously bought in one of the developer's completed projects. Immediately thereafter, the general public was offered pre-construction pricing and construction began.
It was not uncommon to sell at least 30% of the first phase of a project prior to breaking ground with many of these buyers being speculators having no intentions of ever taking possession of their units. After all, they had witnessed a 15% annual appreciation in condo values during the prior five years and realizing the project would take perhaps three years to complete, they could plan on "flipping" their unit upon completion of the project for a 50% gain. There seemed to be no risk of non-completion and the investment appeared to be a no-brainer!
There were hundreds, perhaps more than a thousand condos bought by speculators between 2006 and 2008; most of which have been completed however some, unfortunately, may never be completed. Most of the purchases in Mexico are all cash and therefore very few properties were mortgaged; those that were, were done so with a minimum of 20% down. A typical payment plan was 10% down and 30% every six months with a two year payment and construction schedule. By the time the first phase of many of these projects had been completed, the developer's list prices had increased by as much as 30% over the pre-construction prices representing a handsome profit to the developer.
As luck would have it, things didn't work out as planned for the developers or the speculators! With the global recession starting early in 2008 followed by the swine flu scare and then the Mexican border town drug cartel war, real estate sales in all of the fine Mexican resort destinations came to a virtual standstill. With the housing slump in full force, prices no longer continued to appreciate; in fact they began to weaken. By 2010, with thousands of new condos on the market (the supply now greatly exceeding the demand), many projects were put on hold postponing the future phases, a few projects were even abandoned with the first phase only partially finished, and new projects in the planning stage were shelved.
In order for the developers to sell off their remaining inventory of condos, they are now forced to reduce their prices; some have dropped them to pre-construction levels or just slightly above their cost of construction. The speculators that had assumed the pre-construction risks have now paid in full and have received their completed condos; in order for them to sell their units, they are now competing with the developers who are also trying to unload their inventories.
The above scenario seems to paint a pretty dark cloud for the speculators and therefore you might ask, where's the silver lining? Well, for one thing, it's quite clear that we've reached a bottom when the developers are just trying to recoup their expenses. Also, because so few speculators have mortgages, there are virtually no foreclosures and for the most part, they are not financially forced to sell. Consequently, neither the developers nor the speculators are going to sell at a loss and prices appear to have bottomed at 2006-2007 levels or 30-40% off their highs of 2008. At these price levels and without the risk of non-completion, the savvy investors and retiring Boomers are slowly absorbing the inventory of new condos in Vallarta.
The other silver lining can be found if you consider what those speculators could have done with their cash in January 2007 if they had not invested it in a Mexican resort condo that has gained them nothing during the past three years. By reviewing the graph below, you'll see that if they had invested their money in an S&P 500 stock portfolio, they would have lost about 23% during the same period of time. Alternatively, they could have bought a condo in Florida, California, Arizona, or Nevada where foreclosures are abundant and lost as much or more. Most speculators have a tough time accepting things in this light but it's a fact of life; by breaking even, they're better off than they would have been otherwise!
SPY 3 years
Finally, what does this mean to us? Well, it's a buyer's market in PV that we've never before witnessed and will probably not see again in the future. There are currently hundreds, if not thousands of incredible finished condos available on the market at rock bottom prices. For those about to retire that still have some cash and are interested in a second residence where the winter weather is perfect, the scenery majestic, and the fun galore, it would be foolish not to at least consider the favorable circumstances that currently exist south of the border. Not only do they provide a silver lining for the speculators, but more importantly, they represent a golden opportunity for the real estate buyers in Puerto Vallarta, Mexico.
Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of more than 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.
Puerto Vallarta Marina Area
Filed under Press Releases by on Feb 22nd, 2010. 
Top lead-generation agency Lead Galaxy has opened a new London call centre to help service growing demand for telephone qualified property sales leads…
One of the most common complaints that agents and developers have about the leads generated for them by different property portals is that too much time is spent trying to service low quality leads. Lots of time is often spent trying to make contact in the first place, sending countless emails back and forth, only to find that the customer was never really that serious in the first place.
A new telephone qualification service from Lead Galaxy helps overseas property companies overcome this issue, by allowing them to target vetted customers, who have had their contact details verified and their property requirements double-checked.
As well as ensuring that all clients have at least one working telephone number and a valid email address, call centre staff are trained to crystallize the needs of the customer to establish a profile for the type, location, budget and specific criteria that interests them.
Property agents and developers can set up similar profiles that set out the type, location, and price range of the property they offer, as well as the price that they’re prepared to pay for fresh sales leads that match their bid profile.
Commercial Director Robin Brayne said of the service: “All in all, this is a great way for sellers to tap into leads of the very highest quality, with superb time-efficiency and at a very reasonable cost. I am constantly being asked for more of this type of leads by our partners, so we must be doing something right!”
The minimum bid for fresh telephone qualified leads is £10, though these leads can be bought more cheaply in a Lead Market if there are no matching bid profiles when they are entered into the system.
Property companies can sign up for an account online and get started with just £50. To sign up, visit: http://www.leadgalaxy.com/signup/default.asp
Notes to Editors
1. LeadGalaxy.com is owned and operated by On The Move Ltd.
2. For further comment, please call Robin Brayne on 0207 952 7221
3. Email partners@leadgalaxy.com for additional information on becoming a partner
4. Visit the website at http://www.leadgalaxy.com/ for a full list of available services
Filed under Press Releases by on Jan 21st, 2010.
New Condos in Puerto Vallarta, Mexico
By: Jim Scherrer
Foreclosure, by definition, is the legal procedure for satisfying claims against a mortgagor in default who has not redeemed the mortgage; satisfaction may be obtained from the proceeds of a forced sale of the property.
There are many reasons why mortgagors may fall into default but historically it happens when the mortgagor loses his job, loses his health, or for some other reason is unable to make his mortgage payments in a timely manner.
Today, the majority of reasons for default are totally different. Many recent mortgagors were able to obtain loans with little or no credit history and little or nothing as a down payment. They received adjustable rate mortgages and if they were ever able to afford their monthly payments, they were no longer able as soon as the interest rate increased and consequently the mortgagee was forced to foreclose on the buyer. As the foreclosure rate in a given region started to increase, so did the availability of distressed property sales. Of course, an increased volume of distressed properties in the neighborhood resulted in a rapid depreciation of the neighboring properties. With the value of a given property well below its mortgage payoff balance, many mortgagors merely elect to abandon their property and walk away from their mortgage; thus the mortgagee is forced to foreclose on these borrowers as well.
This vicious circle of foreclosure events is currently occurring at an unprecedented rate in the US. Headlines such as "US Foreclosures Up 24 Percent in 1st Quarter "," US Banks Step Up Home Foreclosures "," Las Vegas Tops Foreclosure List", "Sun Belt States Lead Q1 U.S. Mortgage Foreclosures" and "Foreclosures May Hit 1.5 Million in U.S. Housing Bust" are seen in the news on a daily basis.
Okay, know that we fully understand the cause for and frequency of the recent foreclosures and knowing it's a buyer's market, perhaps, if you still have a little money left over after the recent stock market sell off, you might be considering shopping for a foreclosed property at a distressed sale price in a resort such as Puerto Vallarta, Mexico. If so, you might as well forget it; you'll not see a foreclosure sign in Mexico!
The following is taken verbatim from Condo.com, one of the major websites dealing in worldwide condo sales:
Mexico Foreclosures – Condo.com is the best way to find free foreclosures listings in Mexico. Find foreclosed condos, foreclosed condos, foreclosure properties and other foreclosure investment opportunities in Mexico. Search bank foreclosures, REO properties, preforeclosures, HUD homes and more foreclosures in Mexico. Sorry! There are no search results found. No For-Sale listings available
Well, that pretty well sums up your opportunities to "steal" a nice condo in PV! There are numerous reasons why foreclosures are essentially nonexistent in Vallarta however the primary reason is that up until just recently, all purchases were done strictly on a cash basis. Mortgages are now available in Mexico but only with a substantial down payment. With a solid credit history and income stream, one might be able to purchase a property in Mexico with only 20% down, however most of the mortgages are with down payments approaching 50%. As you can imagine, it takes an awfully good reason to walk away from a property when you have that kind of investment in it! Consequently, with 98% of the properties owned outright and the remaining 2% with well funded mortgages, there are virtually no foreclosures in Paradise!
Because there are no foreclosures, there has been no significant depreciation of values in Puerto Vallarta. That's not to say that there's not been a leveling off in prices or that the developers are not more inclined to "negotiate" today than they were a year ago. To the contrary, prices on newly constructed condos have never been better than they are today and bargains can be found throughout the city. This is to some degree due to over building during the past ten year boom period and partly due to the reduction in prices of steel and other construction materials as well as the decrease in construction labor rates as the Peso recently devalued by 30% relative to the US Dollar.
For the reasons regarding foreclosures outlined above, you should never see your investment value plummet in Vallarta as it has in many desirable locations throughout the US. Because the North Americans have been recently hit so hard financially combined with the fact that the local developers have overbuilt, Puerto Vallarta is a true buyer's market. There are 1,000´s of new condos currently on the market in PV and with interest rates at an all time low, the time to buy will never be better.
Any North Americans still holding cash will never find a better time or place to invest it; besides, where else can you live in a climate better than Hawaii, 2-4 hours from home, all the amenities of home, as many or more activities than at home, and at a fraction of the price? So, why wait; come on down and explore the possibilities; just don't look for any foreclosure signs!
Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of more than 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.
Filed under Press Releases by on Nov 25th, 2009.
By: Jim Scherrer
As we all know, Christopher Columbus, while searching for China, first discovered the Americas when he arrived in San Salvador in 1492. On his second voyage, he landed in the Caribbean Islands, and on his last voyage in 1498, he arrived in the area of Venezuela. In 1497, the Italian sailor Giovanni Caboto (John Cabot), exploring on behalf of England, landed in Labrador and Newfoundland. Unfortunately, neither of these sailors was very well educated nor inclined to thoroughly document their voyages.
In 1499, an educated Italian named Amerigo Vespucci joined a Spanish fleet and sailed to Venezuela. A few years later, the king of Portugal enlisted Vespucci to pilot another voyage to Brazil and by 1508, the voyages that Vespucci participated in were well documented. Although Amerigo Vespucci was a relatively insignificant person and had never led an expedition or discovered anything, his name appeared on much of the documentation and many of the New World land surveys.
Using all of the freshly generated documentation, a German cartographer named Martin Waldseemuller prepared the first map of the New World in 1507. With documentation prepared by Amerigo Vespucci as his guide, he merely used the word Americus, the Latinized version of Amerigo, to indicate the New World. Consequently, the entire Western Hemisphere eventually took on the name Americus which later became known as the Americas. It probably should have been called Columbus or Cabot but it could have been even worse; just imagine, The United States of Vespucciville!
Before we get too far into this article let's first define "America". The Americas are the lands of the Western hemisphere or New World, comprising of the North American and South American continents with their associated islands and regions. Today, in the minds of most United States citizens and for that matter, in the minds of people throughout the world, the term "America" refers to the United States of America; however, that term is open to debate. For the sake of this article, we'll be referring to the United States of America when we use the term "America".
The next term that we must accurately define is "North American"; all too often we think of North Americans as those from the United States and Canada. Again, that's a misnomer because North America actually encompasses the entire North American continent which includes the US, Canada, Greenland, Mexico, Central America, and the Caribbean Islands. Therefore, "North Americans" are those residing anywhere in the North American continent. However, for the sake of this article, we'll be referring only to those from the US and Canada as "North Americans".
Typically, when we think of escaping from America, we're referring to Americans emigrating from the United States to some other locale. With the current depressing state of the economy, politics, crime rate, standard of living, etc., there are numerous reasons why US citizens are more interested than ever in retiring abroad (beyond the boundaries of one's own country). Today's broad availability of inexpensive international telephone, Internet, satellite TV, transportation, medical care, etc. have essentially eliminated the primary reasons for retiring and remaining in the US.
Now, more than ever, with the numerous reasons why one might desire to escape from America, the question is; where in the world would be the most logical retirement destination? Most would agree that it would be somewhere that has a lower cost of living without compromising on the standard of living, someplace that has relatively close proximity to the U.S., a safe and clean place where English is understood, etc. Other important criteria for retirement include the size of the community of like minded North Americans (US and Canadian citizens), the availability of activities for retirees, of world class medical care, fine dining, telecommunications, etc.
Most travel and retirement magazines list a number of wonderful retirement havens in the Americas including Costa Rica, Panama, and Ecuador. Although all espouse fine climates, beautiful scenery, low costs of living, etc, Mexico generally tops the list. Many of these locations are either too far away or lack all of the amenities that North Americans are accustomed to and require whereas certain Mexican retirement havens have all of the required prerequisites for North Americans retiring abroad.
After residing in Puerto Vallarta, Mexico for almost 13 years, we can state emphatically that PV has it all! During the past decade of growth in Puerto Vallarta, the city has more than doubled in size with its infrastructure being completely upgraded to current international standards. Every amenity that one would expect in a city of 350,000 inhabitants can be found in Puerto Vallarta.
Regarding Vallarta's proximity to America, please refer to the North American map below. You might be amazed to see that PV is approximately the same distance from Chicago, Minneapolis, and Portland as New York is from Houston, Dallas, and Denver. Relatively speaking, cities such as Houston, Dallas, Phoenix, and Los Angeles are virtually next door to PV. Another factoid; Puerto Vallarta is nearer El Paso, Texas than is Texarkana, Texas.
For comparison's sake, let's consider Maui, Hawaii which lies on the same latitude as Puerto Vallarta and obviously has an ideal winter climate. However, Vallarta's winter weather is better; during the seven month period of November through May, the average daily temperature in Vallarta is 73°F with virtually no rain whereas Maui's average temperature is about the same but with more than two inches of rain per month. Needless to say, as great as Maui is, traveling to and from there is quite expensive and time consuming; retiring there could be cost prohibitive.
North American Continent
This map puts the whole concept of moving abroad into a totally new prospective. With the many advantages that Vallarta has to offer, including its proximity to the US, it's quite obvious why approximately 50,000 Americans (those from the US) have escaped from America and now call Vallarta home. The fact is that their new home is still in America (the North American continent) and generally a short 2-3 hour flight away from their family and friends.
In summarizing, now you know how you can escape from America without leaving America. Puerto Vallarta still has all the charm of a Mexican fishing village yet now has all the amenities necessary to make it one of the finest retirement destinations in the world. Just pack up your bags and head south to PV this winter and find out for yourself, but do so with caution; you'll not want to return home!
Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.
Filed under Press Releases by on Oct 31st, 2009. Comment.
With more and more Brits choosing to holiday at home in these credit crunched times – 12 million stayed close to home this year rather than heading abroad – the demand for passports has fallen dramatically…
Just 5.23 million passports were issued in the year 2008-9, compare to 6.2 million in 2006-7. The cost of passports and the increasing trend for holidaying closer to home has seen the demand for passports fall by more than 10 per cent over the past two years.
The increase in passport prices is also putting UK holidaymakers off renewing until the last possible moment before a trip.
The cost of an adult passport has increased from £66 in 2006 to £72 in 2007. With another rise earlier this year, the price currently stands at £77.50. Thus, renewing a family of four’s passports could cost in excess of £300.
Home Office Permanent Secretary Sir David Normington said, “What has been happening in the last two years is that demand for passports has been falling and we think that is because, as the recession has come on, people are delaying renewing their passports.”
When compared to other holiday costs, such as cheap flights on budget airlines and bargain hotel rates – all of which have been falling to try and attract cash-strapped holidaymakers – the cost of passports seems ever higher.
I recently flew to Stockholm, Sweden for the weekend with my partner – our combined flights £60, Ryanair cost less than the renewal of one passport.
It’s the same story in the USA too. The U.S. airline industry is projected to carry 41 million fewer passengers in 2009, a decline that will continue through 2010, according to Boyd Group International. U.S. passenger levels may not again reach 2008 levels until after 2014.
Waiting times for a US passport have now been slashed by a quarter and there are 12 million requests for new passports rather than the predicted 17 million.
The Identity and Passport Service has also cut its staff due to the lack of passport demand.
For more information on overseas properties and the property market in general, please visit http://www.themovechannel.com/
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Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information, please contact:
Dan Johnson
Managing Director
www.themovechannel.com
0207 952 7650
Filed under Press Releases by on Oct 28th, 2009.
In a bid to ensure a lasting legacy for London, Mayor Boris Johnson is in the middle of planning a £15 million monument to rival the Eiffel Tower, which will be built in the Olympic Park in time for the 2012 Games – but the tower already has its critics, who say that its design is going against Boris’ former pledges not to litter London’s skyline with any more tall buildings…
The 120-metre tower, which has been designed for the Olympic Park Legacy project in the city of London, will be funded by the steel magnate Lakshmi Mittal — Britain’s richest man.
The tower has attracted designs from some of the country's most famous artists, including former Turner prize winner Anish Kapoor and Antony Gormley, the designer of the Angel of the North, near Gateshead.
A panel is currently considering five designs and the winner will be revealed in two weeks time.
When Boris was accused of having an affair in 2004, he made comments about an ‘inverted pyramid of piffle,’- comments which have now coined the name ‘Piffle Tower’ for the new London structure.
The real name of the structure will be ‘Transmission’ and it will be six times taller than the Angel of the North and constructed from steel. With viewing decks overlooking Olympic Park, Transmission will be lit up at night and powered by solar panels.
The design is said to be inspired by an electricity pylon and will form part of a series of cultural programmes and artworks designed in honour of the 2012 Olympic Games.
Critics are already concerned that Boris is more interested in creating a lasting monument to his time as Mayor rather than creating a powerful piece for London. Recently, he talked of not littering the capital’s skyline with more tall buildings – a statement which seems to be contradicted by these latest plans.
For more information on London properties and the property market in general, please visit http://www.themovechannel.co.uk/property/england/inner_london/
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Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information, please contact:
Dan Johnson
Managing Director
www.themovechannel.com
0207 952 7650
Filed under Press Releases by on Oct 28th, 2009.
London has opened up a brand new visitor centre to cater to lesbian, gay, bisexual and transgender (LGBT) tourists visiting the city – the Gay Tourist Office welcomed its first visitors to the Soho base at the end of last week and offer tailored information about gay events, activities and general tourist tips…
Following the trend of other European cities, the city of London has opened the doors to its first gay tourist office.
The centre, which is located at 30 Lisle Street, aims to provide a welcoming atmosphere in which to offer LGBT-specific information about the capital. It is the first office of its kind and hopes to support LGBT work all over the country, as well as supporting events and activities in London.
Centre Director Shaun Newport said that London has the best LGBT life in London. The Dutch capital of Amsterdam opened its first gay tourist information centre last month, and LGBT tourists planning to visit the capital can order a special gay Amsterdam information kit for free.
At the new Lisle Street centre in London, both foreign visitors and Britons will also be able to book tickets for London events and activities at the centre.
As well as the latest on gay London, the office will provide general tourist information on the city of London.
Mr Newport said, “Whether you have been here a lifetime, or have just stepped off the tube for the first time, we will give you advice on getting around.
“We want to show that London's exciting LGBT life is the best in the world.
“We will show off what our city has to offer to local, national and international visitors, as well as to Londoners old and new.
“The community has responded enthusiastically, lauding the centre's arrival. We have been too long without one,” he added.
You can find out more about the centre by visiting its website at www.gaytouristoffice.co.uk.
For more information on property in London and the property market in general, please visit http://www.themovechannel.co.uk/property/england/inner_london/
-ENDS-
Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information, please contact:
Dan Johnson
Managing Director
www.themovechannel.com
0207 952 7650
Filed under Press Releases by on Oct 26th, 2009.
International investors seem to be regaining their confidence in the overseas property markets – Primelocation has reported that searches for international property soared a whopping 32 per cent in September, compared to the same time last year – but buyers are still looking towards traditional, ‘safe’ locations…
TheMoveChannel.com’s September Top of the Props chart, which tracks the interest of visitors to the site and finds the most popular countries each month, found France had topped the props last month.
Primelocation’s findings tallied with those, with France, Spain, the USA, Italy and Portugal taking the top five places in their index, significantly outperforming the sixth to tenth placed countries.
Last month also saw search levels up 10 per cent compared to August, indicating that consumer confidence in overseas investment property has begun to return.
But, whilst confidence is coming back, investors are still wary of putting their money into less stable or well know locations, thus they are looking to well established countries with a history of stability.
The property portal’s international development manager, Ann Wright said, “Given the recent turbulence we have experienced, a certain amount of caution remains and interest is currently concentrated in the traditionally strong and established markets.”
In terms of sales, Ms Wright believes there could be a wait between investors’ intentions to buy and actual sales.
“Although property prices in the top three countries are attractive, having fallen substantially in the downturn, the pound is not particularly strong against the euro or the US dollar at the moment and buyers may hold off, watching the market for the most lucrative time to make the purchase.”
TheMoveChannel.com found that it wasn’t just residential investors targeting France – commercial investment property in the country was on the up too. The country is fast emerging as the second-most popular market after the UK following a static first quarter as a result of the ongoing hangover from and continual effects of the economic crisis. The French property investment market is now on the move again, with investment levels doubling in the second quarter of this year, the biggest increase for that period in Europe.
For more information on overseas investment properties and the property market in general, please visit http://investment.themovechannel.com/
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Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information, please contact:
Dan Johnson
Managing Director
www.themovechannel.com
0207 952 7650
Filed under Press Releases by on Oct 26th, 2009.
If you are bored with the same old nine to five slog, why not start a whole new life as the manager of your own hotel – a stylish sixteen-bedroom hotel in Wiltshire and £50,000 annual income is being offered as a prize in the latest property competition to hit the headlines…
The Landmark Swindon is set in the heart of the beautiful Marlborough Downs near Swindon in Wiltshire.
Its directors, Malcolm and Margaret Pearson, have owned the hotel property since it was built in 1979, converted and refurbished the building into a Hotel in 2000.
Now, they want to take a step closer to retirement and give someone else the chance to run the hotel.
To enter you need to buy a ticket for £25 and answer three locally based multiple choice questions via the competition website. The odds of winning are far better than the lottery as only 48,000 tickets will be sold in total.
“We decided to ‘sell’ our Hotel by competition because we love the thought of someone having the life changing opportunity of winning this amazing investment property,” said the couple.
“So many people talk of winning the lottery and what they would do with the money, this gives who ever enters a much better odds of winning a £850,000 hotel but would also give them the chance to instantly have an annual income of £50,000 – so, we thought this would be a fun way to make that happen for someone,” they added.
Each of the individually decorated bedrooms in the hotel is named after local Wiltshire landmarks and there is also a boardroom and restaurant.
If the couple fail to sell enough tickets to cover the asking price of the hotel, a raffle will still be held and the winning ticket holder will receive a cash prize.
The conditions of the competition mean the couple would be entitled to retain up to 35% of the entry fees to cover administration and marketing expenditure which will be verified. The remaining balance would be the prize fund, which would then be given to the cash prize winner.
The competition closes on 31st October 2010 and you can enter as many times as you like. Visit www.winahotel.co.uk to find out more.
For more information on hotels for sale and the property market in general, please visit http://commercial.themovechannel.com/
-ENDS-
Notes to editors:
TheMoveChannel.com is a property website that was founded in 1999 as an online resource for buying, selling and learning about property. It now receives as many as 300,000 visits per month and advertises over 50,000 properties in nearly 90 countries, which are listed by over 500 partner organisations.
For further information, please contact:
Dan Johnson
Managing Director
www.themovechannel.com
0207 952 7650
Filed under Press Releases by on Oct 26th, 2009.
Puerto Vallarta beachfront condos
By: Jim Scherrer
With the incredibly fine winter climate, proximity to the US and Canada, and the amenities offered, Puerto Vallarta, Mexico has long been recognized as a great resort destination as well as retirement haven for North Americans.
Beginning early in the 21st century, Vallarta, as with many other resort destinations, began an explosive period of growth. Developers from around the world flocked to Vallarta in order to cash in on the baby boomer retirement plans. Within a short period of time, most of the finest beach front and hillside properties were snatched up and planning began in earnest. Tower cranes were erected, dotting the skyline throughout the city, and construction workers from neighboring states rushed to the area for employment.
As soon as the above projects were announced, the developers threw up beautiful sales offices and prepared for the land rush. These nice, spacious, air conditioned offices typically had comfortable lounge areas with new furnishings, pretty magazines, sometimes piped in music and perhaps a few free margaritas. They were typically staffed with English speaking, well dressed, experienced, professional sales personnel. Most of these new offices had multiple sales cubicles with the capability of negotiating two or three contracts at a time; some even had counters where the buyers could get in line to wait their turn for such a unique opportunity to own a piece of Paradise. Granted, it never quite reached the point that it did in Florida, where they were holding lotteries and drawing lucky buyer numbers out of a hat!
During the first few years of the decade, the North Americans were grabbing up the new condos at such a torrid pace that many of the construction projects were 30%, or more, sold out before they even broke ground. Pre-construction pricing of 10-20% off their suggested list price was frequently offered to owners of condos previously built by the developer. After all, these privileged speculators had earned the right to have the first chance to scoop up the most desirable condos at what seemed to be reasonable prices; few could afford to pass up such a no-brainer investment opportunity!
Meanwhile, as the tower cranes started whirling around and the thousands of construction workers, looking like a huge colony of ants, began their construction, the beautiful buildings started coming to reality. Money was flying in every direction and it seemed as though everyone that came to town had an extra half a million dollars to spare for their retirement dream residence. Of course, during those years, re-financing and second mortgages on North American real estate with highly inflated values was commonplace; the herd had a feeling of easy money and never ending wealth!
With the herd of somewhat naive buyers in town, the question was never whether or not they should buy a condo; it was which condo they should buy. They were virtually knocking down every real estate office door in town (approximately 80 in the area at its peak!); it was definitely a seller's market. The developers would usually negotiate 5-10% off list price in order to give the buyer a sense of satisfaction that they had received a good deal, still leaving the developer with a substantial profit margin; everyone was happy as the good times rolled on!
By the middle of the decade, the local real estate market was humming on all cylinders and new projects were being announced almost daily. The Mexican Tourism Board announced plans for developing a new 20 mile stretch of beaches north of Vallarta and planning was underway for another 20,000 new condos. Obviously, as long as the stampede continued, they would continue building and prices would continue to escalate, resulting in a tripling of real estate values during a short 7 year period of time, i.e. the old rule of supply and demand was in full force; keep coming and we'll keep building!
Well, as always happens, a global recession hit in 2008. However, this time it was much deeper than most had ever experienced, severely impacting the PV real estate market as the demand virtually disappeared overnight. Developers and speculators were left holding thousands of new unsold condos creating the greatest buyer's market ever experienced in this part of the world, i.e. the supply (glut) of new condos far outnumbers the demand. Consequently, the developers and speculators are on their knees just trying to recover their costs, often discounting by 30% or more while many of those fancy real estate offices in PV were forced to close and those remaining open are doing so on shoestring budgets and reduced staffs.
The herd mentality has been clearly demonstrated on a daily basis for a number of years all over the Vallarta area and is still in play, except now the buyers are all following each other in the opposite direction; postponing purchases until someday in the future when the economy is more certain, i.e. until the coast is clear. The masses seem to feel a sense of urgency to purchase when their peers are doing so and feel no sense of urgency to purchase when prices are at the lowest levels possible. During the past year, it has been absolutely amazing to see the herd of what appear to be intelligent, educated buyers walking away from once in a life time opportunities because there's no line up of buyers. It's as though everyone's afraid to be a contrarian; consequently, they'll end up buying later at a higher price.
Buying into a given real estate market is essentially the same as buying into the stock market. Why does the herd always insist on buying high and selling low? The developers are never going to sell below their cost and current prices are as low as they'll ever be; bargain opportunities are everywhere but once they are recognized and scooped up by the savvy buyers, the prices will surely start escalating again.
We thank our lucky stars for having bought a villa in PV twelve years ago (before it was the in-thing to do) and have seen it more than triple in value. Of course, anyone buying today at these severely depressed prices could realize a short term gain of 50% (or more) on their investment, if and when the economy ever recovers. However, knowing the way the herd mentality reacts, the majority of buyers probably won't return to the table until it's too late to take advantage of the current situation with its tremendous real estate values.
Are there any contrarians out there? Are there any retirees or about-to-be retirees that have any money (or credit) left? If so, you'll never find a better time to take advantage of a seriously depressed and overbuilt real estate market. Pack your bags and come on down for a week of fun in the sun this winter and check out the phenomenal opportunities that await you in Puerto Vallarta. With the current availability of mortgages in Mexico, this is a rare opportunity to buy low and perhaps someday in the future, sell high; it's a great concept! Disregard what the herd is doing and remember just one thing; they're usually wrong!
(Please see Puerto Vallarta PHOTO GALLERY)
Jim Scherrer has owned property in Puerto Vallarta, Mexico for 26 years and resided there for the past twelve years. The mission of his series of 70 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at PVREBA.
Filed under Press Releases by on Oct 24th, 2009.