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MEXICO IS #1 PLACE IN THE WORLD TO RETIRE !! U.S. IS NOW #19 AND FALLING
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Mexico Tops Retirement List
Mexico is now the number one location for retirees, according to the 15th Annual Global Retirement Index recently published by International Living magazine.
By comparison, the U.S. ranked 19th.
Panama, which had been Number One for six years dropped to fourth because of rising property costs. Other top ten countries include Ecuador, Italy, Panama, Australia, Malta, Spain, South Africa and Malaysia.
But all of those countries require much longer travel times on flight routes that can be complex. By contrast, the leading Mexican destinations have many direct flights from nearly all major markets in the U.S. Minimal time zone changes are required.
Among the criteria used by International Living Index in rating Mexico's Number One ranking were quality medical care, geographic diversity, and availability of cable TV, high speed internet, cell phone services. Also mentioned were Mexico's rich, historical culture and "modern living" features such as cable TV, high speed internet and cell phone services.
Activities in Mexico were also important, including an abundance of retirement hobbies, touring, shopping, concerts, theater and fine dining.
In addition to this, Mexico has been adding infrastructure for years to be ready for the influx of retirees heading this way. Puerto Peñasco is no different and, is looking forward to the many people moving to the area. When you look around, you can already see the positive impact happening.
viva mexico!
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THE NEW GLOBAL ECONOMIC REALITY by Charles Simpson First: A reality check on Mexico Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media – over the last year – has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars. Let’s look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. “Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians,” Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This “business” is globally now competing with drugs in terms of profits. It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Tijuana, Nogales, and Juarez. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine’s Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks. Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these “businessmen” are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let’s look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories. FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico. The concentration of kidnappings has been in Mexico City, among the very rich and the three aforementioned border Cities. With the exception of Mexico City, the number one city for kidnappings among NAFTA countries is Phoenix, Arizona with over 359 in 2008. The Phoenix Police estimate that twice that number of kidnappings goes unreported, because like Mexico 99% of these crimes were directly related to drug and human traffic. Phoenix, unfortunately, is geographically profitable transshipping location. Mexicans, just like 99% of U.S. Citizens during prohibition, go about their daily lives all over the country. They get up, go to school or work and live their lives untouched by the border town violence. These same protectionist news sources have misled the public as to the real danger from the swine flu in Mexico and temporary devastated the tourism business. As of May 27 2009 there have been 87 deaths in Mexico from the swine flu. During those same five months there have been 36 murdered school children in Chicago. By their logic, if 87 deaths from the swine flu in Mexico warrants canceling flights and cruise ships to Mexico, then close all roads and highways in the USA because of record 43,359 automobile related deaths in the USA in 2008. What is just getting underway is what many are calling the “Largest southern migration to Mexico of people and real estate assets since the Civil War” A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000. Do the math on 6,000,000 people buying a $300,000 house or condo and you will understand why the U.S. Government is trying to tax this massive shift of money to Mexico through H.R. 3056. The U.S. government calls this “The Tax Collection Responsibility Act of 2007”. Those who will have to pay it are calling this the EXIT TAX.
Mexico: A better economic choice than China Another large exodus from the U.S.A is high paying skilled jobs. The job shift in automobile sector, both car and parts manufacturing, is already known by most investors. In the last few months as John Deere and Caterpillar have been laying off thousands of workers in the U.S.A., and hiring equal numbers in Mexico. The most recent industry that is making the shift is the aerospace manufacturers. In the city of Zacatecas there is currently a $210 million aerospace facility being built. With the 11 U.S. companies moving there, it is estimated to provide over 200,000 new high paying jobs in the coming years. One of the main factors for the shift in job south to Mexico instead of China is realistic analysis of total production, labor and delivery costs. While the labor costs in China are 40% less on average, the overall transportation costs and inherent risks of a long distance supply chain, and quality control issues, gives Mexico a distinct financial advantage. Mexico’s real economic future Mexico has avoided completely the subprime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The very recent introduction of residential financing has Mexico in a unique position of having over 90% of current homeowners owning their house outright. U.S. banks are competing for the Mexican, Canadian and American cross border loan business. It is and will continue to be a very safe and very profitable business. These same banks that were loaning in a reckless manner have learned their lesson and are loaning here the old fashioned way. They require a minimum of a 680 credit score, 30% down payment, and verifiable income that can support the loan. In most areas of Mexico where Baby Boomers are moving to, with the exception of Puerto Penasco (which did not have a national and international base of buyers), there is no real estate bubble. The higher end markets ($2-20 million) in many of these destinations are going through a modest correction. The Baby Boomers market here is between $200,000 and $600,000. With the continuing demand inside the Bay of Banderas, that price point, in the coming years, will disappear. This is the reason the Mexican government is spending billions of dollars on more infrastructure north along the coast all the way up to Mazatlan. The other major area where America has become overpriced is in the field of health care. This massive shift of revenues is estimated to add 5-7% to Mexico’s GDP. The name for this “business” is Medical Tourism. The two biggest competitors for Mexico were Thailand and India. Thailand and India’s biggest drawback is geography. Also recent events, Thailand’s inability to keep a government in place and the recent terrorist attack in Mumbai, have helped Mexico capture close to half of this growth industry. In Mexico today there are over 56 world class hospitals being built to keep up with this business. Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans have never heard of Carlos Slim until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Mexico’s resilience is to be admired. When the U.S. Federal Reserve granted a $30 billion loan to each of the following countries Mexico, Singapore, South Korea, and Brazil, Mexico reinvested the money in Treasury bonds in an account in New York City. According to oil traders, Mexico’s Pemex wisely as the price of oil shot to $147 a barrel put in place an investment strategy that hinged on oil trading in the range of $38-$60 a barrel. Since the beginning of 2009 Mexico has been collecting revenues on hedged positions that give them $90-$110 per barrel today. Mexico’s recent and under reported oil discovery in the Palaeo Channels of Chicontepec has placed it third in the world for oil reserves, right behind Canada and Saudi Arabia. The following is a quote from Rosalind Wilson, President of the Canadian Chamber of Commerce on March 19, 2009. “The strength of the Mexican economic system makes the country a favorite destination for Canadian investment”. I would offer a word of caution for investors in Mexico. Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The demand for full and part time living by American and Canadian Baby Boomers is evident throughout the country. The top two choice locations are ocean front, and ocean view. The third overall choice, which is less expensive, is inland in one of the many beautiful colonial towns or small cities. Mexico, with the world’s 13th largest GDP, is no longer a “Third World Country”, but rather a fast growing, economically secure state, as the most recent five-year history of its financial markets when compared to the U.S.A.’s financial markets suggests. DOW JONES AVERAGES MAY 2004 10,200 MAY 2009 8,200 20% LOSS IN 5 YEARS MEXICAN BOLSA MAY 2004 10,000 MAY 2009 23,000 130% GAIN IN 5 YEARS |
BUYING IN MEXICO
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Buying Property in Mexico |
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Purchasing Real Estate in Mexico
It is a common misconception that foreigners cannot own Real Estate in Mexico, but the reality is, they can. However, there are restrictive zones and processes to consider, as described below.
Outside the Restricted Zone, a foreigner or foreign corporation can acquire any type of real estate, just as any Mexican National and, hold the property as a direct owner complying with Mexican law.
Within the Restricted Zone, a foreigner or foreign corporation may obtain all the rights of ownership but, it must be held in a bank trust known as, a "Fideicomiso".
Another alternative is to purchase non-residential property through a Mexican corporation which can be, under certain conditions, 100% foreign-owned, with a provision in its by-laws that the foreigners accept to be subject to Mexican laws and agree not to try invoking the laws of their own country.
Also, that the real estate acquired be registered with the Foreign Affairs Ministry and is used for non-residential activities. In other words, under said conditions, foreigners can acquire directly, properties destined for tourist, commercial and, industrial use.
There is no such thing as a 99 year lease like in the US, and never has been, as reported by some tourists and the American media.
By law, leases for terms of in excess of ten years are neither legal, nor valid in any Mexican court, nor have they ever been.
Neither is a 10-10-10 renewable for 30 years. By Mexican law, no residential lease in excess of 10 years less a day is legal.
You may see a commercial lease like this but never residential. Case closed!
The Restricted Zone:
The Mexican Constitution regulates the ownership of the land and establishes that "...in a zone of 100 kilometers along the border or 50 kilometers inland along the coast, a foreigner cannot acquire the direct ownership of the land." These areas are known as the "Restricted or Prohibited Zones". Nevertheless, the latest Mexican Foreign Investment Law, which became law on December 28, 1993 makes the allowances, mentioned above. Yes, Puerto Peñasco is in the restricted zone, as are all popular tourist areas along the coast.
Fideicomiso or Bank Trust:
Any foreigner or Mexican National can constitute a Fideicomiso (the equivalent to an American beneficial trust) through a Mexican bank in order to purchase real estate anywhere in Mexico, including the Restricted Zone. To do so, the buyer requests a Mexican bank of his/her choice to act as a trustee on their behalf.
The bank, as a matter of normal course, obtains the permit from the Ministry of Foreign Affairs to acquire the chosen property in trust. The Fideicomiso can be established for a maximum term of 50 years and can be automatically renewed for another 50 year period and so on. During these periods you have the right to transfer the title to any other party, including a member of your family.
The bank becomes the legal owner of the property for the exclusive use of the buyer/beneficiary who has all the benefits of a direct owner, including the possibility of leasing or transferring his/her rights to the property to a third party or to a pre-appointed heir. (FYI- there is no inheritance tax in Mexico)During this period, the foreigner is considered as a Mexican National.
The trustee is responsible to the buyer beneficiary to ensure precise fulfillment of the trust, according to Mexican Law, assuming full technical, legal and administrative supervision in order to protect the interests of the buyer/beneficiary.
For practical purposes, even in unrestricted zones many foreigners and Mexican Nationals, for that matter, prefer to hold their property under a Fideicomiso.
Process:
Most real estate transactions are opened after a written purchase offer is accepted by the seller and when a purchase/sale agreement (promissory contract) is signed by both parties. In most cases, a deposit is required by the broker in order to transmit the offer to the seller. (similar to the US) If the transaction is being conducted directly with the seller, it is highly recommended that a real estate broker or a lawyer be consulted before signing any papers or handing over any money. The purchase/sale document, which includes either deed of rights or transfer of rights of beneficiary in a property, also contains a description of the property, price to be paid to the seller and, any special terms or conditions of the sale. It will not provide valid notice to third parties unless it is recorded in the Public Registry office of the municipality in which the property is located.
In certain resort areas, the custom of using "escrow" services is being implemented. Sometimes it is common to deliver to the seller/escrow, as an advance payment, the equivalent to a 20-50% (including the initial deposit) of the total price, upon signing the purchase/sale agreement. The agreement should contain a penalty clause, applicable in case there is a breach of contract by any of the parties.
Until the buyer is formally named as a beneficiary in a public document before a Mexican Notary, title to the rights in the property remain with the last legally registered owner, which would be the seller. While the seller holds title to the property it is his asset. He may mortgage it or sell it again, it may be attached in satisfaction of a judgment/lien, he may die without a will. In such a situation, there may not be any remedy for the purchaser who neglected to correctly register his deed - his interest, his investment may be lost. In short- use common sense and due diligence.
Normally, when signing the "escritura" or official deed, which needs to be certified by a "Notario Publico" or notary public, the balance is paid and the property is delivered. This should not take more than 45-60 days ish. Be comfortable with your purchase, the real estate companies and those who provide the closing services are professional people. And remember to keep a sense of humor, "mañana" only means, "not today" :) Welcome to Mexico, you are now free to enjoy life and your new property.
Notario Publico or Notary Public:
The Notario Publico is a government appointed lawyer who processes and certifies all real estate transactions, including the drawing and review of all real estate closing documents, thus insuring their proper transfer.
Furthermore, all powers of attorney, the formation of corporations, wills, official witnessing, etc. are handled and duly registered through the office of the Notario Publico, who is also responsible to the government for the collection of all taxes involved.
In connection to real estate transactions, the Notario Publico, upon request, receives the following official documents, which by law, are required for any transfer:
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A nonlien certificate from the Public Property Registry based on a complete title search.
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A statement from the Treasury or Municipality regarding property assessments, water bills, and other pertinent taxes that might be due.
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An appraisal of the property for tax purposes.
Cost of the Fideicomiso:
Based on a present tariff, the bank charges the person desiring the Fideicomiso an initial fee (approximately $400-500usd) for the drawing up of the agreement and establishment of the trust, plus a percentage according to the value of the property. In addition the bank charges an annual fee (depending on the value of the property, usually around the same $400-500usd) to cover its services as a trustee.
Disclaimer: This information is correct to the best of Long Realty Rocky Point's knowledge. You may wish to look for more information from a different source or, on a website with mexican legal information to get the most up to date information.
VIVA MEXICO !
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ARIZONA RESIDENTS GOING TO PUERTO PENASCO (ROCKY POINT) DID YOU KNOW?? - There are thousands of US residents, investors and, business owners in the state of Sonora alone - There are over 1 million US citizens who reside in Mexico and make it home - The governor of Arizona, Jan Brewer, visits and owns properties in Rocky Point, and has for many years - Reports negatively reflecting on Rocky Point are totally unsubstantiated - There is still a lot of investment and building taking place in and around Puerto Peñasco - The Old Port area is being refurbished as you read this - The crime rate in Rocky Point is far lower than Phoenix, Tucson, and most towns of the same size in Arizona or anywhere in the United States - The new Mar de Cortes international airport was officially inaugurated in November 2009 and, is open for business - Thanks to the new Coastal Highway north of town, Yuma and San Diego are only 3 and 5 hour drives away, consecutively - Most tourist related businesses and accomodations have bilingual staff and lots of security to cater to American travelers and residents - Todd Lyons, Kurt Geisler, John Witt, Kent Cossey, and Kenneth Wallace all live and work in Rocky Point J - There has been a spike in property sales in and around Rocky Point, no doubt thanks to those mentioned above and, amazing beachfront property pricing (shameless plug) - Your US dollar goes much further in Mexico, more bang for your buck most would say - The delicious shrimp found in the local waters are shipped all over the world and, are a favorite of Arizona residents and nationals too - The road down to Rocky Point is more patrolled and more secure than ever before, due to untruthful safety claims made by the US media - You will usually gain a friend or two in Rocky Point each time you visit - When there is an isolated incident at a border town, due to the US demand for illegal drugs, Mexico is unfairly generalized as a dangerous place - A cold cervesa and/or shot of tequila taste better at the beach - Arizona issues a yearly Arizona Crime Report with an average thickness of 136 pages, in Sonora it would be a fraction of that - The northern part of the Sea of Cortez is the only place in the world one could see the vaquita marina, an extremely endangered porpoise about 1.5 meters long - Crime is not spilling over into Nogales,AZ like the media claims, according to their police chief - In Arizona, there were 464 murders in 2007 alone, along with 1,797 rape offenses, and, the value of property stolen in AZ was $661,889,760.00, according to the Arizona Crime Report - Professional athletes and some celebrities, current and retired, have property here - If there are over 100 million Mexicans in Mexico that aren’t afraid to travel within their own country, you shouldn’t be either. It’s worth the trip to see for yourself - It is still less than a 4 hour drive from Phoenix or Tucson, to the beautiful beaches and friendly people of Puerto Peñasco, Sonora, Mexico COME ON OVER TO ROCKY POINT !! |
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About Mexico
Officially United Mexican States, republic (1995 est. pop. 93,986,000), 753,665 sq mi (1,952,500 sq km), S North America. It borders on the United States in the north, on the Gulf of Mexico (including its arm, the Bay of Campeche) and the Caribbean Sea in the  east, on Belize and Guatemala in the southeast, and on the Pacific Ocean in the south and west. Mexico is divided into 31 states and the Federal District, which includes most of the country's capital and largest city, Mexico City.
Land
Most of Mexico is highland or mountainous and less than 15% of the land is arable; about 25% of the country is forested. Most of the Yucatán peninsula and the Isthmus of Tehuantepec in the southeast is lowland, and there are low-lying strips of land along the  Gulf of Mexico, the Pacific Ocean, and the Gulf of California
In the south the deserts yield to the broad, shallow lakes of a region, comprising the Valley of Mexico, known as the Anáhuac and famous for its rich cultural heritage. South of the Anáhuac, which includes Mexico City, is a chain of extinct volcanoes, including Citlaltépetl , or Orizaba (18,700 ft/5,700 m, the highest point in Mexico), Popocatépetl , and Iztaccihuatl . To the south are jumbled masses of mountains and the Sierra Madre del Sur.
People
The great majority of the population are of mixed Spanish and indigenous descent and speak Spanish, the official language, as their first language. Various Mayan dialects are also spoken. Since 1920 the population of Mexico has had a very high rate of growth, almost entirely the result of natural increase; from 1940 to 1990 the population grew from 19.6 million to 81.1 million.
*Columbia Encyclopedia, Sixth Edition, Copyright (c) 2003. | |
US/Mex Residents think U.S. Consulate Warden Message is unsubstantiated, uncorroborated...and untrue! There was a recent Consulate Warden Message that was issued by the Nogales consulate office that, was based on rumors and conjectures with, no facts can be presented to support this notice. Through numerous phone calls and conversations with actual consulate staff, they have admitted that they have no proof for supporting the document that was issued. The position of American and Mexican residents and business owners in Rocky Point is, that this is a deliberate sabotaging of the upcoming Memorial Day weekend holiday. In the Warden Message, it was said that there have been unauthorized check points setup and that people had been killed. Contrary to the Message issued, there has not been to anyone’s knowledge, any unauthorized checkpoints setup on the highway 8 from Sonoyta to Rocky Point and, there has never been anyone killed at one of these fictitious check points. Although true that there have been check points setup by the government along highway 8 from time to time, they are there to protect the public by enhancing security. It has also become known that, the person issuing the original Message from Tijuana, was not employed by the Consulate office but, merely a private citizen operating as a volunteer. Puerto Penasco, or better known to the North of the border residents as, Rocky Point, is and always has been, a small quiet fishing village with great beaches and amenities that support happy travelers, from all over the world. For many states in the US it is the nearest beach with warm waters and Western sunsets. The opening of a new international airport and coastal highway, expands the position of the Mexican government that, this is to be the next Cabo San Lucas and is the fastest growing city in Mexico. Puerto Penasco has also been named the final step on the Nautical Ladder with a new cruise port planned with cruise ship companies, already committed to the first disembarkation in 2012. |
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