Thomos BLOG ON 2008 Real Estate economy

2008-01-17T08:33:00.000-08:00

Playa Del carmen Real Estate has been constant in its growth throughout the last quarter of 2007. As I speak with other realtors in the area, the overall opinion is that although the quantity of American Buyers has declined somewhat, the Canadian rush to Playa del Carmen and Tulum continues to surge.

There has been much attention focused on the US sub prime… obstacles, and much concern on how this would affect the demand here in the Playacar real estate, the Puerto Morelos real estate, Puerto Aventuras real estate and of course the Playa del Carmen real estate market. I believe that many of us realtors are still waiting for the spring season to progress further before formalizing our opinions. By this time, hopefully by the second half of the year, recovery as predicted by various economists from the US, of the housing market should be at the initial stages and consumer confidence back in a bearish mood.

Franklin Allen a Wharton professor, states that “ the severity of the situation depends on which geographical regions are hit the hardest.” This is what many real estate analysts remind us in their reports and articles. Real Estate is a commodity that is not a nationally tracked commodity. What occurs in one region differs than results of another region, as are states and as are cities. Some states are affected to a greater extent than others such as California and the Florida markets each with various cities having a correction in prices that should level off by the spring of this year.

Again, how does this all affect Mexico real estate and the Playa del Carmen real estate or does this affect us at all? Yes, I expect it will have some decreases in the quantity of American buyers for the next couple of months. Buyers coming from the southern regions may decrease, but I also am seeing a strong quantity of interests from the Midwest upper regions, from Colorado, and New York New Jersey. I also have seen other factors that have increased the demand in other countries of the world in particular Canada and UK. With the decreasing exchange rate of the dollar, the pound and Canadian dollar have given much more strength to investors from these regions here in Playa del Carmen.

Last week, our office was battling to reserve a beautiful preconstruction condo in downtown Playa del Carmen off of the beach for over $500,000 usd. Our buyer was from New York, the other buyer from UK. Business as usual as the rush to invest in Playa del Carmen real estate continues, in January at least.

By Thomas Lloyd

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Playa del Carmen Real Estate Booming

2008-01-17T08:25:00.000-08:00

The Playa del Carmen real estate is one of the highest of demand here in the country of Mexico. Many economical factors and general trends over the past two years throughout the North American and European economies are working to place the Mexican Caribbean real estate as one of the most attractive for investors throughout the world. Near forty percent 40% of the Riviera Maya Properties are being purchased by Mexican Foreigners with the Americans and Canadians leading the countries with the highest amount of such international real estate investors.

A very popular investment option has been the Mexico pre-construction condo options. In this real estate opportunity, buyers are able to reserve a condo unit before the construction has been realized. On some occasions, the developer may offer Mexican investment construction options “off the plan” before a parcel of land has even been purchased. The risks are compensated with large discounted prices on the condo units which many international buyers have found extremely attractive given international averages on Ocean Front Condo prices. The procedure normally requires a reservation quantity to be paid ranging from $5,000 up to $10,000 usd. This money is refundable upon request and may reserve a unit for an average of 20 days, enough time for the investor and his legal counsel to study and analyze the promissory contract on the Playa del Carmen Real Estate. If the buyer, upon review of the contract, decides to proceed on the investment opportunity, he will then be required to sign a promissory contract and forward another payment quantity. This hard contract deposit may range from 20% up to 90% depending on the developer or the negotiation of the particular operation. Other payments and payment plans may include monthly transfers or transfers based on construction milestones. Once the property is completed, the developer can proceed on obtaining a Mexico Condominium Regimen, which will then allow for delivery of the physical property as well as transferring the legal rights to the Mexico property.

International buyers are playing a significant role in the demands for Playa del Carmen real estate. With the tourism and occupancy rates higher than years before, and projections stronger than any historical figures on record, the appreciation on Riviera Maya Real Estate continues to grow despite slowdowns in the United States market. As more tourists come to the area, more fall in love with the local Caribbean Beaches, Mexican history, and the warm Spanish hospitality.

Published by Lloyd's Real Estate –

Thomas Lloyd has been living and working in

Mexico

for near 15 years. He is an American who is federally licensed to sell Mexico real estate