Mexico Real Estate – Continued Modernization in Space Involvement

Mexico real estate offers a huge benefit to American and Canadian buyers of being an affordable, warm-weathered country, with a strong cultural heritage, which also offers many of the best benefits of the modern world. One of the largest recent reflections of this modernization is the development of space-related programs.

Recently, Mexico has been taking firm steps in the direction of developing aerospace programs, reflected in the creation of the Mexican Space Agency (AEM). The process of creating the AEM is currently in a series of consultation forums that will shape national policy in this field, and the vocation of the agency itself.

A representative from the Ministry of Transportation commented that the policy will be designed in harmony with the international legal framework governing the sector.

The program and the idea of aligning to international standards is important to the Mexico real estate industry since it reflects the country’s ongoing program of modernization and providing international-level quality. For real estate buyers, the areas which have central significance are the expressway and road network expansions and improvements (an area in which Mexico excels) and the increase of international-quality franchise businesses and excellent healthcare facilities.

Another important event regarding Mexico’s efforts in space technology is the Sixth Space Conference of the Americas, which will take place in Pachuca, Hidalgo. Officials in Mexico currently feel that the country has a significant task in the exploration of space and must move forward in this field in reasonable time. The conference includes representatives of space agencies from 25 nations.

Mexico has a history of involvement in international space policies, being a founding member of the Committee on the Peaceful Uses of Outer Space, established in 1959 by the General Assembly of the United Nations (UN), and has been an active participant in the Scientific and Technical Subcommittee and Legal Affairs, where principles from Mexico have been reflected in international treaties.

One example was the Treaty of 1966, which states that outer space should be the heritage of humanity and not subject appropriation of any one nation.

“We joined the international community in the spirit of that treaty,” said the representative of the Ministry of Transporation, “in a collaborative spirit and full solidarity with the great human project to study and to better exploit the benefit of all mankind, outer space resources.”

The progress of Mexico’s involvement in space policies and exploration will continue to reflect a country which has, in a relatively short time, grown considerably in economy and standard of living.

Mexico Real Estate Spotlight – Condos on Cancun’s Beachfront

While there are many excellent options within Mexico real estate as a whole, there are a few areas which stand out as something extraordinary; one of these is Cancun real estate, and even more specifically, Mexico condos for sale on Cancun’s beachfront. The following are points that make this real estate option exceptional.

Cancun’s Beaches – Cancun’s beaches are legendary. Although completely forgotten and abandoned until about 40 years ago when Cancun was built from scratch as Mexico’s first completely planned resort community, these beaches offer a combination rarely to be found anywhere; soft, white sand, warm water that has a unique turquoise color, incredible width leaving room for all to enjoy the beach thoroughly and miles and miles in length. Visiting these beaches is like being in Paradise where beautiful, perfect beaches are endless; living here is Paradise.

Beautiful Condo Units – Of course, it’s also very important that the condos themselves are beautiful and comfortable. Units offer spacious, open-concept designs with all modern conveniences, including large balconies and terraces, air conditioning, kitchen bars, up-to-date connections and wiring and nice finishing details. The complexes are also very comfortable; pools, terraces and lounge areas are often on the rooftop or in a central courtyard area. Some complexes include gyms and spas. Elevators and underground parking are common in larger complexes. The units are comfortable in all ways and are an ideal way to enjoy Cancun’s beautiful beaches.

Views – Another important point in Cancun’s beachfront condos are the views. Besides the fact that residents can enjoy life right next to the beaches, walking out of the front door of their complex directly onto the sand, they also enjoy beautiful views of these same beaches and the splendid expanse of the turquoise Caribbean Sea. These views can be enjoyed from large living-room windows, balconies, terraces, rooftop lounges and common pool areas. There’s something about having this view as a part of every day that simply makes life relaxing.

Modern Services – In addition to the modern services in the condos and complexes themselves, Cancun’s beachfront “Hotel Zone,” where most of the beachfront condos are located, has all services for a modern and convenient lifestyle. First of all, there are the tourist services – international restaurants, bars, trendy shopping, jewelry, tobacco and liquor shops, boat tours, marinas, golf courses, etc. Then there are also many other services more oriented towards those who live here all permanently – big stores like Walmart and Home Depot, state-of-the-art hospitals, modern malls and movie theaters.

Air Access – One service which stands out as perhaps the most important is that of the Cancun International Airport. This airport is very well connected, offering direct flights to all major North American destinations, with frequent flights leaving daily, if not even a couple of times a day. It is also making a growing number of solid flight connections throughout South America and to major destinations in Europe for those who enjoy travelling. Due to high demand from tourism, a growing number of discount air lines from the U.S. and Canada are offering direct flights several times a week that are often cheaper even than the cheap connecting flights.

Prices – Of course, the nicest part about all of this is that it can be afforded even on the more modest American budgets. Condos on the beachfront can be found for excellent prices. As mentioned, flights are cheap. State-of-the-art hospitals offer the highest quality service at a fraction of the price of standard service in the U.S., and with no waiting lines. The cost of living is also much cheaper.

Many buyers, after settling into their new beachfront condo in Cancun, are soon left wondering how they ever managed to live anywhere else!

Are You an “Old School” Real Estate Investor, Yet?

This morning, I heard the reporters say the government is now considering increasing the minimum down payment to a whopping twenty percent (for real estate purchases). This is for the average home buyer, not just for people wanting to purchase investment properties.

It does not take a rocket scientist to surmise that if this notion passes, it will most likely have a large negative effect on the number of home buyers that can come up with the large down payment and qualify for the increasingly stringent lending criteria.

Is twenty percent down good or bad for the modern real estate investor?

When I first started investing, our massive real estate bubble had not happened yet, and foreclosures were not everywhere. At that time, the typical real estate investor was doing deals that were coined alternative real estate financing. In a nutshell, alternative real estate financing means the real estate investor comes up with ways to either keep the financing intact or to work with the seller (or other private money source) to derive new financing, in order to do the deal. Traditional bank involvement was not necessary.

I’ll call this approach the “old school” style of investing. It really centered around the investor’s skills to negotiate with the seller (and perhaps new buyer) and to be able to see a profitable transaction where others could not.

In a surprising way, the skills involved to do these deals are probably more advanced than, say the skills to wholesale a bank owned property.

For the savvy investor, it seems that if the government wants to make the lending criteria even more rigid (than today) this will most likely open up more deals for real estate investors. And here’s why:

One, the desire to own a home does not diminish even though lending criteria gets more stringent.

Two, there are plenty of potential homebuyers, who have been crushed by unemployment and would want to purchase a property after their financial picture improves.

Three, there are plenty of potential home buyers who are self-employed that find even the current lending criteria almost impossible to get loans.

Four, there are also plenty of homebuyers that have lost their property to foreclosure that would be looking to purchase another property. And with their damaged credit, they would be almost certainly denied typical mortgage loans.

So for the savvy real estate investor, I say let’s consider adding the old school style of investing to our current techniques. Life can be a lot easier if you only have to work with sellers and buyers. Note however, that the savvy investor must know how to calculate appropriate offers with these old-school techniques. Major pitfalls can happen if all the transactional details are not appropriately accounted for.

After years of doing these equations by hand, my partner and I have developed a software program that gives us an unfair advantage when computing offers and making deals. We can actually iterate all of the variables, including interest rate, loan terms, rental repair cost, vacancy factors, monthly rent, desired cash flow, and first year pretax cash-on-cash return, while we are on a call with the seller (and so can you).