I attended the 2nd annual "Meeting Point Developer Investor Summit" a couple of month or so ago. The hosts were the offices of tourism for Baja and the Mexican States bordering The Sea of Cortez. The overall mood of the convention was very positive. They acknowledged the fact that Mexico was very stable and looked as thou it would remain so and was emerging as a real player in the stable world's markets. They acknowledged the problems that American is going through and that these problems were effecting the tourism in Mexico, but not to the degree that many had thought. Further acknowledging the pre-sales of condos to American investors hoping for a profitable flip would slow down the condo development on Baja's West Coast, but as the experts predict that this slow down is temporary. The hand writing is on the wall, the huge migration of second home owners and retirees to Mexico is only going to grow. The most important message to the developers & investors was that while they may be experiencing slower sales in their development and hearing the same lament form their neighboring developments they are not seeing the whole story. The tourism department assured them that along with the governing bodies responsible for tracking the sales of resort properties to foreigners that things are far from as bleak as some individual developers feared. In fact they sited that the number of sales overall had been down only a little from the previous couple of years, and reminded the developers that in the the last few years many new projects have come to market and a similar (slightly fewer) number of sales were now spread among more developments. San Felipe is an excellent example of the dynamic effects of added inventory. The South Beach area alone, normally associated as the smaller developments with higher end single family home sites & homes has in just the last year added "off the top of my head" over 1500 home sites to the market inventory with more in the approval stages. None of them have clients knocking their doors down to buy their offerings but all of them are selling and surviving, La Joya del Mar has sold nearly 18 properties since their entry into the market only some nine months ago. That is a sustainable rate of sales while just coming to market..considering the markets issues & inventory. When this whole thing in the States shakes out, just think of the opportunities available to the investor with insight when the flood gates of pent up demand is released. It's happening and it's happening here.
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I attended the 2nd annual "Meeting Point Developer Investor Summit" a couple of month or so ago. The hosts were the offices of tourism for Baja and the Mexican States bordering The Sea of Cortez. The overall mood of the convention was very positive. They acknowledged the fact that Mexico was very stable and looked as thou it would remain so and was emerging as a real player in the stable world's markets. They acknowledged the problems that American is going through and that these problems were effecting the tourism in Mexico, but not to the degree that many had thought. Further acknowledging the pre-sales of condos to American investors hoping for a profitable flip would slow down the condo development on Baja's West Coast, but as the experts predict that this slow down is temporary. The hand writing is on the wall, the huge migration of second home owners and retirees to Mexico is only going to grow.
The most important message to the developers & investors was that while they may be experiencing slower sales in their development and hearing the same lament form their neighboring developments they are not seeing the whole story. The tourism department assured them that along with the governing bodies responsible for tracking the sales of resort properties to foreigners that things are far from as bleak as some individual developers feared. In fact they sited that the number of sales overall had been down only a little from the previous couple of years, and reminded the developers that in the the last few years many new projects have come to market and a similar (slightly fewer) number of sales were now spread among more developments. San Felipe is an excellent example of the dynamic effects of added inventory. The South Beach area alone, normally associated as the smaller developments with higher end single family home sites & homes has in just the last year added "off the top of my head" over 1500 home sites to the market inventory with more in the approval stages. None of them have clients knocking their doors down to buy their offerings but all of them are selling and surviving, La Joya del Mar has sold nearly 18 properties since their entry into the market only some nine months ago. That is a sustainable rate of sales while just coming to market..considering the markets issues & inventory. When this whole thing in the States shakes out, just think of the opportunities available to the investor with insight when the flood gates of pent up demand is released. It's happening and it's happening here.
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