By: Jim Scherrer

As parents, we all strive to raise healthy, good, productive, and happy kids. This goal is so important that there have been numerous articles and books written by psychologists and other experts in the field dedicated to the subject of raising children.

Most of the experts agree that giving kids anything they want, when they want it, only leads to spoiling them. Instead of creating happiness, this practice all too often leads to disappointment; kids that expect every wish to be fulfilled eventually find  insecurity, inability to make decisions, low frustration tolerance, low self esteem, disregard for others, unappreciativeness, and general unhappiness. Most experts suggest that gifts to kids should be made when they are deserved or when the kids are mature enough to be appreciative.

The experts also agree that spending more quality time with your children is one of the key factors to raising psychologically healthy and happy kids. Sharing thoughts and stories during idle time, enjoying healthy activities out in the sun, and discussing plans, strategies, and goals creates lifelong bonds which lead to truly happy kids.

Okay, so how long should we try to satisfy our kids? As we all know, we of course want to make them happy during their entire lifetime; it’s never too late to please the kids! Now, enough for making our kids happy; let’s think about how we can simultaneously make ourselves happy!

As we approach retirement, in all probability, the kids are pretty well grown up and their personalities have already been shaped. However, it’s still not too late to please them while at the same time correct some of the mistakes that might have made while raising them by paying attention to and spoiling the grandkids!

Can you think of a better place to enjoy the kids and grandkids than in Puerto Vallarta, Mexico? Just imagine, you retire to a beautiful new condo in PV with jaw-dropping views of the Sierra Madres and Banderas Bay and you have nothing better to do than play golf, tennis, fish, or just relax poolside under the sun with a cool one in hand. What better gift for yourself and your kids than to have them visit your little Paradise south of the border during the Christmas/New Year holiday period, a birthday celebration, or perhaps some other special occasion?

In Vallarta, the seven month “high season” of November through May offers perfect weather with an average daily temperature of 73*F and virtually no rain. The abundance of activities for young and old will allow you and your family to have the time of your life together. The only time the kids will be unhappy will be when they have to return back home to the “real world” and face the hectic stresses of routine daily life.

Keep in mind, Vallarta is situated on the same latitude as Hawaii yet it is only 2-4 hours away from the kids. There are four modern hospitals in town staffed with well qualified and trained English speaking doctors that can handle just about every problem that a geezer is apt to encounter. The entire community is clean and safe with most of the condo complexes staffed with 24 hour security. Modern supermarkets and shopping malls are located throughout the city; high speed internet, satellite TV, VOIP telephone service, and all the other amenities that you’re accustomed to are also readily available in Vallarta. Fine dining, limitless activities, clubs, and organizations for retirees (sorry, no shuffleboard!) will guarantee you never have a dull moment, unless you wish to have one!

For most of us, the key to enjoying retirement life to its maximum in Vallarta is to live in a community near other retirees with common interests. There are numerous condo complexes in Vallarta where the majority of residents are from the US and Canada. Most of these complexes are quite secure and are located either on one of the beaches or on one of the hillsides overlooking the beaches. They are almost universally within minutes of all the activities and of course, all offer world class views and sunsets.

Due to the fact that the local developers overbuilt during the past decade and then got hit by the global recession (and border town drug war news along with the swine flu media hype), there is currently a glut of more than 7,000 new condos on the market in PV from which you can select your retirement nest. With the supply of condos far exceeding the demand, it’s the best buyer’s market in Vallarta that we’ve seen in a generation.

Beautiful new beachfront and hillside condos are being sold today at near pre-construction prices; not much more than the cost of construction. With the recent availability of Mexican mortgages, these incredible condos are well within the reach of most everyone nearing retirement. This opportunity should be especially attractive to Canadians as their dollar continues to strengthen over time. 

As they say, all good things must come to an end; we all will pass on and when we do, the kids will probably be near retirement age. Hopefully, this will be a sad occasion for them however inheriting a beautiful condo in Puerto Vallarta will surely ease the pain! Since the title to the Mexican condo is held by a Mexican bank in a 50 year trust with your kids as the beneficiaries, it will automatically pass on to them. Regarding inheritance taxes; we’ll leave that matter up to you and your tax attorney-think about it! Last, but not least, this will be the ultimate gift to the kids and allow them to regain their happiness as they begin their own retirement planning.

So, come on down to this Mecca south of the border and check out the real estate opportunities that await you. In doing so, you’ll have the best time of your life; while self indulging, you’ll also make your kids really happy!

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 60 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.

By: Jim Scherrer

As retirees and 12 year residents of Puerto Vallarta, Mexico, it’s quite easy to extol the benefits of living in Mexico. Of course, not every part of Mexico is the same (as is true in the US or Canada); however, we can certainly vouch for Puerto Vallarta.  With its beautiful climate and landscape of the Sierra Madres cascading down into Banderas Bay, its kind and friendly local citizenry, its proximity to the US and Canada, and its lower cost of living, what’s there not to like in this wonderland south of the border?

English, as a second language, is widely spoken throughout the city, the safety of expats is of highest priority for the authorities with the rate of violent crime at a fraction of that back home, corruption significantly reduced, poverty virtually eradicated, and the cleanliness of this city make it a favorite resort destination for millions of visitors from throughout the world. All of the “Big box” stores such as Sam’s Club, Costco, Wal-Mart, Builders Square, Office Depot, nine beautiful signature golf courses, world class deep sea fishing, high speed internet, satellite TV, VOIP telephone service, etc. are all available in this beautiful city in the center of the Mexican Riviera. The face of Vallarta has been dramatically altered during the past decade with well maintained city parks, esplanades, a new malecon walkway along the beach, new water treatment facilities and miles of new water distribution lines, new or upgraded power distribution system throughout the city, new downtown above ground and underground parking garages, a new University of Guadalajara branch, a new Convention Center, the tripling in size of the Maritime Terminal, the quadrupling in size of the International Airport, and the addition of four new hospitals with modern and sophisticated diagnostic and surgical equipment, staffed with highly trained and experienced English speaking doctors.

Now that we’ve established the fact that Vallarta is a fine place to live or retire, let’s take a closer look at the last item above related to medical care.

With high quality medical care readily available in Vallarta, the cost of it, even though at a fraction of the cost in the US, can be a deciding factor when considering Mexico as a retirement location. Assuming that most retirees have reached or are fast approaching their 65^th birthday, the availability, quality, and cost of medical care are of high importance. The quality of medical care in Vallarta is generally equal to or better than that received in the US and the cost varies from one third to one half of that in the States (speaking from experience and with authority!).

Having high quality medical care available in Mexico is one thing but paying for it is another since US provided Medicare for seniors fails to cross the border at this time. Various supplements to Medicare cover seniors traveling abroad for a limited period of time (for example, supplement F covers the holder for the first 60 days of international travel), however, they are inadequate for full time residents living abroad.

Although Mexican Social Security (IMSS) is available to expats, most under the age of 65 have their own private international health insurance which is somewhat costly as discussed in numerous articles and covered on websites such as MedToGo. For many years, we have used IHI/BUPA and can state emphatically; their coverage and service is absolutely great for expats living in Mexico and traveling worldwide.

Now, let’s assume you’ve reached the age of 65 and are considering Mexico as your retirement destination. It’s very difficult to abandon your free Medicare that you’ve contributed to for a lifetime, the cost of private insurance is almost prohibitive, and you can’t afford to take the risk of being uninsured. This is the main dilemma for seniors considering retirement abroad. Even so, there are more than five million (some reports indicate six million) Americans living abroad, of which more than a million reside in Mexico per the Association of Americans Resident Overseas (AARO). In fact, there are more US expats living abroad than reside in 24 of the states in the US as reported by Republicans Abroad!

Well, perhaps we’re on the verge of overcoming this top objection to retiring in Mexico! The US government has been approached by numerous expat groups such as the Puerto Vallarta based chapter of Democrats Abroad and the bipartisan group of American Citizens Abroad (ACA) with the intent of promoting the advancement of Medicare for expats living abroad.

Before Congress can enact such a law change, they must conduct demonstration projects in order to determine the feasibility and cost effectiveness of such law changes. The Americans for Medicare in Mexico, A.C. (AMMAC) have put forth a tremendous effort in promoting this benefit to eligible retirees and have encouraged many members of Congress to initiate such a demonstration project. They argue that not only have these eligible Medicare recipients paid into the fund over a lifetime, but the cost to the US taxpayers will be significantly reduced because rather than returning to the US for expensive and long term medical care, the majority of these expats will merely elect to have their medical care provided near their foreign residence at a fraction of the cost.

Proponents of the law change such as Professor David C. Warner of the Lyndon B. Johnson School of Public Affairs at the University of Texas have written books and papers on the subject of “Getting What You Paid For: Extending Medicare to Eligible Beneficiaries in Mexico” and the newly appointed US Ambassador to Mexico, Carlos Pascual, has been following the current efforts to establish a demonstration project for the initiation of Medicare in Mexico as a pilot program. In fact, Ambassador Pascual recently accompanied President Obama to a North American Summit in Guadalajara where one of the topics covered was Medicare in Mexico as reported by the Guadalajara Reporter.  

In summarizing, we are anticipating the availability of Medicare for eligible retirees residing in Mexico in the not too distant future. Once this obstacle to retiring abroad has been eliminated, not only will millions of baby boomers in search for a less expensive and better quality of life be heading south of the border, but so too will millions of retiring Mexican Americans desiring to return to their homeland. Combined with all of the other obvious benefits of living in Paradise, free and high quality medical care for boomers will just be the icing on the cake!

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 60 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.

New Condos in Puerto Vallarta

By Jim Scherrer

Let’s start out by assuming that you’re a pretty savvy investor; your 401k, IRA, or personal investments have kept up with the S&P 500 average during the past ten years and you’ve lost only about 35% of your life’s savings! Did you realize that the Mexican Exchange Traded Fund (EWW) which represents the Mexican stock market, even though it was annihilated during the current recession along with all other markets throughout the world (but is recovering rapidly), has advanced by 200% during the same time frame? In other words, $100 invested in the S&P 500 in 1999 would now be worth $65, whereas if it were invested in the Mexican EWW fund it would now be worth $200. Please refer to the ten year graph below in order to see the comparisons between these two areas of investment and perhaps you can speculate as to where might be the best market to place your next bet!

                                                                                                                                                                                                                                                                        One of the most significant reasons for this steady and rapid growth in the Mexican stock market (Bolsa) must be attributed to the policies of the new governing party that has been in control since 2000. Mexico has been governed by a couple of pro-foreign investment Harvard alumni during most of the timeframe shown above and will continue under the same leadership for at least another three years. The PAN party, led first by President Fox and currently by President Calderon, has brought Mexico from a Third World Country to a Newly Industrialized Country standing in a matter of seven short years. Among their numerous accomplishments, they have cracked down on corruption, have promoted free market capitalism while maintaining a relatively firm peso/dollar relationship, and have elevated tourism to the top of their list of strategic objectives.

We have lived in Puerto Vallarta during the entire ten year period and have witnessed the changes and growth firsthand. As the economy has boomed, unemployment in Vallarta has been virtually eradicated while the population has doubled, prices for materials, labor, and land have tripled, and of course, real estate prices have also tripled.

Now, let’s compare this growth and real estate value appreciation in PV to what has been experienced in the US. The latest government released graph below from the Federal Housing Finance Agency (FHFA) shows that average housing prices in the US appreciated by nearly 70% from 1999 through 2006. Since then, the rate of appreciation has dropped precipitously until the fourth quarter of 2007 when values actually started depreciating.  Throughout all of 2008 and the first quarter of 2009, prices have plummeted by about 10% and as you can see in the graph below, we can project prices to fall by another 5-10% before they once again start appreciating. In other words, the average investment in housing in the US made 10 years ago will have increased in value by 40-50% by the end of 2009. Even though housing values have recently been crushed, real estate has still way outperformed the stock market during the past ten years; hopefully, your real estate gains have more than offset your stock market losses!

With the US real estate market currently experiencing a serious recession, no real appreciation in housing values is expected for at least two more years. In summarizing, most Americans have enjoyed roughly a 40-50% gain in their property value over the past ten years and can expect the equity in their residence to be, at best, essentially dead money for the next couple of years.

When we compare the above data to what we’ve experienced in Vallarta, where real estate values have tripled during the past decade, we can only thank our lucky stars for letting us be among the first to participate in the ongoing land rush in Paradise! Fortunately for the about-to-retire baby boomers, it’s not too late.

Due to the extreme demand in second homes and retirement properties in resort destinations, Vallarta has witnessed an explosive ten year period of growth. So much so, that with the current global recession, the developers of the large condominium projects requiring long term planning, financing, and construction have been caught totally off guard. Once they committed, most of them (the reputable and fully capitalized ones!) felt it necessary to complete their projects regardless of sales. Consequently, with the recession driven reduction in demand and a supply of more than 7,000 units, prices for new condos are at a bargain basement level with some of the developers selling their surplus inventory at not much above their cost. This is truly a buyer’s market in PV for new condos however this supply/demand imbalance has had minimal effect on the value of existing condos.

The situation regarding the resale of existing homes and condos south of the border is entirely different than in the US. In Mexico, there are seldom any promotions or transfers requiring a housing upgrade or relocation, i.e., business related issues almost never require the sale of a resort property. Also, very seldom do owners decide to upgrade or downsize once they own a retirement property. More importantly, almost all real estate purchases in Mexico have been done on an all cash basis and therefore, regardless of the economy, there are no foreclosures on these fully owned properties. Mortgages became readily available in Mexico about five years ago however they require at least 20% down and substantial documentation proving one’s ability to pay. (Sorta like the good ol’ days in the US!) With this kind of financially solid buyer and this level of equity, there are virtually no foreclosures in Mexico. Although the rate of sales of existing properties has slowed to a snail’s pace, in the absence of foreclosures, prices of resale properties have held up fairly well; certainly not plummeting as in the US.

In summarizing, those of us that have been fortunate enough to be invested in Mexico during the past decade have fared very well. Even though we’ve felt the impact of the financial downturn during the past couple of years, our Mexican stocks and Mexican properties have more than doubled in value while those in the US have lagged well behind.

As we look to the future, we see very promising growth in the Mexican Bolsa as well as in Mexican real estate sales. In fact, FONATUR, the Mexican Tourism Board is still forecasting explosive growth in the Nayarit Riviera area, just north of Puerto Vallarta, during the next decade; only time will tell. As they say, “past performance is no guarantee of future results”! Assuming the global economy eventually rebounds, it is a given that the millions of baby boomers, just starting to retire, will be heading south for the benefits that Mexico has to offer. When this stampede of boomers hit the beaches in Vallarta, real estate prices that have been essentially flat for a couple of years, will continue escalating.

Aside from the fact that we have seven months of perfect winter weather in PV from November through May, when the average temperature is 73*F with virtually no rain and blue skies, we have eight magnificent golf courses, hundreds of tennis courts, world class deep sea fishing, hundreds of fine restaurants, clean food and water, and 50,000 other gringos to play and party with, our portfolios of stock and real estate investments south of the border are “en fuego”!

If you’re recently retired or considering retirement in the near future and you’re the savvy investor that you think you are, you really ought to check out the investments that lie south of the border; enjoy your retirement to its ultimate, and put your dead money to work for you in beautiful Puerto Vallarta.

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 60 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.

As parents, we all strive to raise healthy, good, productive, and happy kids. This goal is so important that there have been numerous articles and books written by psychologists and other experts in the field dedicated to the subject of raising children.

Most of the experts agree that giving kids anything they want, when they want it, only leads to spoiling them. Instead of creating happiness, this practice all too often leads to disappointment; kids that expect every wish to be fulfilled eventually find  insecurity, inability to make decisions, low frustration tolerance, low self esteem, disregard for others, unappreciativeness, and general unhappiness. Most experts suggest that gifts to kids should be made when they are deserved or when the kids are mature enough to be appreciative.

The experts also agree that spending more quality time with your children is one of the key factors to raising psychologically healthy and happy kids. Sharing thoughts and stories during idle time, enjoying healthy activities out in the sun, and discussing plans, strategies, and goals creates lifelong bonds which lead to truly happy kids.

Okay, so how long should we try to satisfy our kids? As we all know, we of course want to make them happy during their entire lifetime; it’s never too late to please the kids! Now, enough for making our kids happy; let’s think about how we can simultaneously make ourselves happy!

As we approach retirement, in all probability, the kids are pretty well grown up and their personalities have already been shaped. However, it’s still not too late to please them while at the same time correct some of the mistakes that might have made while raising them by paying attention to and spoiling the grandkids!

Can you think of a better place to enjoy the kids and grandkids than in Puerto Vallarta, Mexico? Just imagine, you retire to a beautiful new condo in PV with jaw-dropping views of the Sierra Madres and Banderas Bay and you have nothing better to do than play golf, tennis, fish, or just relax poolside under the sun with a cool one in hand. What better gift for yourself and your kids than to have them visit your little Paradise south of the border during the Christmas/New Year holiday period, a birthday celebration, or perhaps some other special occasion?

In Vallarta, the seven month “high season” of November through May offers perfect weather with an average daily temperature of 73*F and virtually no rain. The abundance of activities for young and old will allow you and your family to have the time of your life together. The only time the kids will be unhappy will be when they have to return back home to the “real world” and face the hectic stresses of routine daily life.

Keep in mind, Vallarta is situated on the same latitude as Hawaii yet it is only 2-4 hours away from the kids. There are four modern hospitals in town staffed with well qualified and trained English speaking doctors that can handle just about every problem that a geezer is apt to encounter. The entire community is clean and safe with most of the condo complexes staffed with 24 hour security. Modern supermarkets and shopping malls are located throughout the city; high speed internet, satellite TV, VOIP telephone service, and all the other amenities that you’re accustomed to are also readily available in Vallarta. Fine dining, limitless activities, clubs, and organizations for retirees (sorry, no shuffleboard!) will guarantee you never have a dull moment, unless you wish to have one!

For most of us, the key to enjoying retirement life to its maximum in Vallarta is to live in a community near other retirees with common interests. There are numerous condo complexes in Vallarta where the majority of residents are from the US and Canada. Most of these complexes are quite secure and are located either on one of the beaches or on one of the hillsides overlooking the beaches. They are almost universally within minutes of all the activities and of course, all offer world class views and sunsets.

Due to the fact that the local developers overbuilt during the past decade and then got hit by the global recession (and border town drug war news along with the swine flu media hype), there is currently a glut of more than 7,000 new condos on the market in PV from which you can select your retirement nest. With the supply of condos far exceeding the demand, it’s the best buyer’s market in Vallarta that we’ve seen in a generation.

Beautiful new beachfront and hillside condos are being sold today at near pre-construction prices; not much more than the cost of construction. With the recent availability of Mexican mortgages, these incredible condos are well within the reach of most everyone nearing retirement. This opportunity should be especially attractive to Canadians as their dollar continues to strengthen over time. 

As they say, all good things must come to an end; we all will pass on and when we do, the kids will probably be near retirement age. Hopefully, this will be a sad occasion for them however inheriting a beautiful condo in Puerto Vallarta will surely ease the pain! Since the title to the Mexican condo is held by a Mexican bank in a 50 year trust with your kids as the beneficiaries, it will automatically pass on to them. Regarding inheritance taxes; we’ll leave that matter up to you and your tax attorney-think about it! Last, but not least, this will be the ultimate gift to the kids and allow them to regain their happiness as they begin their own retirement planning.

So, come on down to this Mecca south of the border and check out the real estate opportunities that await you. In doing so, you’ll have the best time of your life; while self indulging, you’ll also make your kids really happy!

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 60 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.

Let’s start out by assuming that you’re a pretty savvy investor; your 401k, IRA, or personal investments have kept up with the S&P 500 average during the past ten years and you’ve lost only about 35% of your life’s savings! Did you realize that the Mexican Exchange Traded Fund (EWW) which represents the Mexican stock market, even though it was annihilated during the current recession along with all other markets throughout the world (but is recovering rapidly), has advanced by 200% during the same time frame? In other words, $100 invested in the S&P 500 in 1999 would now be worth $65, whereas if it were invested in the Mexican EWW fund it would now be worth $200. Please refer to the ten year graph below in order to see the comparisons between these two areas of investment and perhaps you can speculate as to where might be the best market to place your next bet!

One of the most significant reasons for this steady and rapid growth in the Mexican stock market (Bolsa) must be attributed to the policies of the new governing party that has been in control since 2000. Mexico has been governed by a couple of pro-foreign investment Harvard alumni during most of the timeframe shown above and will continue under the same leadership for at least another three years. The PAN party, led first by President Fox and currently by President Calderon, has brought Mexico from a Third World Country to a Newly Industrialized Country standing in a matter of seven short years. Among their numerous accomplishments, they have cracked down on corruption, have promoted free market capitalism while maintaining a relatively firm peso/dollar relationship, and have elevated tourism to the top of their list of strategic objectives.

We have lived in Puerto Vallarta during the entire ten year period and have witnessed the changes and growth firsthand. As the economy has boomed, unemployment in Vallarta has been virtually eradicated while the population has doubled, prices for materials, labor, and land have tripled, and of course, real estate prices have also tripled.

Now, let’s compare this growth and real estate value appreciation in PV to what has been experienced in the US. The latest government released graph below from the Federal Housing Finance Agency (FHFA) shows that average housing prices in the US appreciated by nearly 70% from 1999 through 2006. Since then, the rate of appreciation has dropped precipitously until the fourth quarter of 2007 when values actually started depreciating. Throughout all of 2008 and the first quarter of 2009, prices have plummeted by about 10% and as you can see in the graph below, we can project prices to fall by another 5-10% before they once again start appreciating. In other words, the average investment in housing in the US made 10 years ago will have increased in value by 40-50% by the end of 2009. Even though housing values have recently been crushed, real estate has still way outperformed the stock market during the past ten years; hopefully, your real estate gains have more than offset your stock market losses!

With the US real estate market currently experiencing a serious recession, no real appreciation in housing values is expected for at least two more years. In summarizing, most Americans have enjoyed roughly a 40-50% gain in their property value over the past ten years and can expect the equity in their residence to be, at best, essentially dead money for the next couple of years.

When we compare the above data to what we’ve experienced in Vallarta, where real estate values have tripled during the past decade, we can only thank our lucky stars for letting us be among the first to participate in the ongoing land rush in Paradise! Fortunately for the about-to-retire baby boomers, it’s not too late.

Due to the extreme demand in second homes and retirement properties in resort destinations, Vallarta has witnessed an explosive ten year period of growth. So much so, that with the current global recession, the developers of the large condominium projects requiring long term planning, financing, and construction have been caught totally off guard. Once they committed, most of them (the reputable and fully capitalized ones!) felt it necessary to complete their projects regardless of sales. Consequently, with the recession driven reduction in demand and a supply of more than 7,000 units, prices for new condos are at a bargain basement level with some of the developers selling their surplus inventory at not much above their cost. This is truly a buyer’s market in PV for new condos however this supply/demand imbalance has had minimal effect on the value of existing condos.

The situation regarding the resale of existing homes and condos south of the border is entirely different than in the US. In Mexico, there are seldom any promotions or transfers requiring a housing upgrade or relocation, i.e., business related issues almost never require the sale of a resort property. Also, very seldom do owners decide to upgrade or downsize once they own a retirement property. More importantly, almost all real estate purchases in Mexico have been done on an all cash basis and therefore, regardless of the economy, there are no foreclosures on these fully owned properties. Mortgages became readily available in Mexico about five years ago however they require at least 20% down and substantial documentation proving one’s ability to pay. (Sorta like the good ol’ days in the US!) With this kind of financially solid buyer and this level of equity, there are virtually no foreclosures in Mexico. Although the rate of sales of existing properties has slowed to a snail’s pace, in the absence of foreclosures, prices of resale properties have held up fairly well; certainly not plummeting as in the US.

In summarizing, those of us that have been fortunate enough to be invested in Mexico during the past decade have fared very well. Even though we’ve felt the impact of the financial downturn during the past couple of years, our Mexican stocks and Mexican properties have more than doubled in value while those in the US have lagged well behind.

As we look to the future, we see very promising growth in the Mexican Bolsa as well as in Mexican real estate sales. In fact, FONATUR, the Mexican Tourism Board is still forecasting explosive growth in the Nayarit Riviera area, just north of Puerto Vallarta, during the next decade; only time will tell. As they say, “past performance is no guarantee of future results”! Assuming the global economy eventually rebounds, it is a given that the millions of baby boomers, just starting to retire, will be heading south for the benefits that Mexico has to offer. When this stampede of boomers hit the beaches in Vallarta, real estate prices that have been essentially flat for a couple of years, will continue escalating.

Aside from the fact that we have seven months of perfect winter weather in PV from November through May, when the average temperature is 73*F with virtually no rain and blue skies, we have eight magnificent golf courses, hundreds of tennis courts, world class deep sea fishing, hundreds of fine restaurants, clean food and water, and 50,000 other gringos to play and party with, our portfolios of stock and real estate investments south of the border are “en fuego”!

If you’re recently retired or considering retirement in the near future and you’re the savvy investor that you think you are, you really ought to check out the investments that lie south of the border; enjoy your retirement to its ultimate, and put your dead money to work for you in beautiful Puerto Vallarta.

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 61 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.

First, let's define Pre-Boomer; obviously it's before Boomer! The Baby Boomer Generation is defined as those born after World War II; generally between the years of 1944 and 1964. Consequently, the oldest of the nearly 80 million US born Baby Boomers are just now turning 65 years old.

The Pre-Boomer Generation is typically defined as those born during the 20 year period prior to the end of WW II or roughly from 1924 to 1944. There were approximately 50 million people born in the US during this time frame. These Pre-Boomers are considered to be of the Silent Generation (a bit of a misnomer!); sometimes referred to as the Luckiest Generation. Lucky because they were born immediately after the Great Depression, were too young to serve in World War II and probably the Korean War, and too old to serve in the Viet Nam War. Since 95% of these Pre-Boomers have already retired, they are also lucky to be reaping the benefits of Social Security and Medicare; benefits that may not be available to many of the younger generations. Unlike the Baby Boomers that have recently lost 25-50% of their life savings prior to retirement due to the current recession and mortgage crisis, the Pre-Boomers are lucky because in all probability, they were able to purchase their retirement residence and have conservatively invested the balance, thus preventing a serious depletion of their retirement savings (and they have fewer years to make their remaining savings last!).

Those lucky folks of the Pre-Boomer Generation witnessed the introduction of television, the development of new plastics and composite materials, high speed air travel, satellite and missile technology, space exploration, major medical breakthroughs, the development of computers and the Internet, cell phones, and microwaves for communications and quick cooking ovens. It seems impossible that future generations will ever see as many revolutionary changes in their lifetime.

Now that we've defined the lucky but not really silent Pre-Boomer Generation, we'll review the lifestyle of those very fortunate ones that have retired on the Mexican Riviera. We'll accomplish that by evaluating the living patterns of those that have retired in Puerto Vallarta, which lies virtually in the center of the Mexican Riviera.

Of the tens of thousands of US and Canadian retirees that call Vallarta home, the majority of them actually reside in Vallarta for only seven or eights months per year, returning to their family and friends back North of the border during the hot and rainy summer months. Many of them also use the summer months for cruising or traveling to new and different places throughout the world.

As an estimate only, approximately 70% of these retirees are from the US and 30% from Canada; however the percentage of Canadians seems to be increasing as the Canadian Dollar strengthens.

One personality trait that these retirees have in common is that they are all somewhat adventurous; otherwise, they wouldn't be living abroad! Being adventurous, they often take the various day tours that are available to area tourists and the cruise boat passengers; day tours that include whale watching, horseback riding, botanical gardens, jungle safaris, dinner boats, and trips to secluded beaches such as Yelapa and Las Animas. When they get a little more adventurous, they take longer trips to the surrounding old mining cities such as San Sebastian and Mascota or south to Barre de Navidad; the number of really neat places to visit in a day are too numerous to cover here.

To satisfy their cultural side, there are a number of different art walks through the myriad of galleries and a handful of theaters for the performing arts. Many special events such as the annual Gourmet Festival are on everyone's calendar during the "high season".

As they are accustomed to back home, they typically shop at Sam's Club, Wal-Mart, Costco, Home Depot, Office Max or Office Depot, etc., where most everything in the way of foods and other products is available. The main difference is that there's never any hesitance in stopping a North American (they're easily recognized!) stranger in the isle and striking up a conversation in PV, whereas back in the US you might be considered a bit nosey or forward when doing this!

These active Pre-Boomers in PV play golf, tennis and deep sea fish, belong to clubs and associations with friends of similar interests, and are very much involved in charities. They are very active socially and can be seen out and about town every evening in all the fabulous restaurants.

Medical care is the least of their concerns with the four beautiful, new, and modern hospitals in Vallarta. These facilities have all of the latest in equipment and are staffed with highly qualified and experienced English speaking doctors. Spas, health clubs, Yoga studios and home service masseurs are frequently used by these pampered retirees.

Many of these immigrants have learned to speak some Spanish even though one can easily survive in Puerto Vallarta with little knowledge of the language since the economy is based on tourism and therefore most of the local citizens have some degree of English fluency.

The majority of these retirees live in condominiums with full time security however a small percentage of them live in hillside villas within gated communities. It's fair to say that wherever they live, they have breathtaking views of Banderas Bay and they enjoy a perfect climate from November through May when the average daily temperature is 73°F with virtually no rain. They drive their US or Canadian plated cars without ever having to change plates. Also, no annual automobile taxes are ever paid and property taxes are only 0.12% of appraised value.

If you're a Baby Boomer and haven't yet lost all of your money in your 401k or IRA, it's not too late; come on down to Puerto Vallarta and join the Pre-Boomers. The luckiest of the Luckiest Generation are truly living "La Dolce Vita" or the sweet life in this part of the Mexican Riviera!

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 58 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.

Hillside Villas in Puerto Vallarta, Mexico