Transparent Mexico Real Estate
Posted by Pat Kitano at 12/10/2006 9:24 PM 
Categories: Technology, Thank you, Global Real Estate, Real Estate Investment, Transparency
Categories: Technology, Thank you, Global Real Estate, Real Estate Investment, Transparency
Friday's Inman's article (Inman non-subscribers see here) reports on the trend of lenders offering mortgage loans for the purchase of investment and second home properties in Mexico. The new real estate investors, educated by the Donald Trumps and Real Estate Investment Expos over the past few years, still believe in the power of real estate investment... the political assurance of pro-American investment policy by the new Mexican administration combined with the ease of getting loans to purchase Mexican properties will definitely spur sales activity.
Enough Americans already know Mexico as a favored tourist destination - close to home, relatively inexpensive and a different, vibrant culture. The added political transparency and endorsement for investment will have American real estate developers rushing down both sea coasts for opportunities (Baja's beautiful Pacific coastline is almost as long as California's). This is where Zillow and their Real Estate 2.0 brethren should be in the future - adding transparency to the transactional process in places like Mexico where it's harder to assess valuations and local customs.
I'll discuss some of the implications of the globalization of real estate in my guest post at Zillow Blog next Tuesday, December 19 as part of the first Yankee Blog Swap. Thank you Mary for the great idea, the arrangement and the fine poster!
Technorati Tags: Mexico real estate, international real estate, Zillow, Mexico loans, Mexican loans, Mexico mortgages, Mexican mortgages, real estate investment, Mexican real estate development, Yankee Blog Swap
This Yankee Blog Swap is going to be fun! However, it's much like going to your spouse's office Christmas party. The pressure's on to perform properly so you don't embarrass your spouse. I sure hope I can hold up my end of the bargain! Mary's poster is awesome. She's either got some great clip art or some html talent that all of us should envy!
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The areas within Mexico are becoming more and more attractive. Trump's new high rise in northern Baja demonstrates that there is a demand for second and even primary homes for US residents in Mexico. A number of US “colonies” are being created just south of Tijuana for those that work in San Diego and cannot afford US real estate. Zillow and other online resources will have a significant boon if they can streamline the purchase process for those looking to own property south of the border.
Barrett Niehus
http://realtorleads.blogspot.com/
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So let me get this straight - people are living in Mexico who work in San Diego because "they cannot afford US real estate"?
And this is somehow a good thing? This doesn't alarm you?
Man, you realtors are a bunch of leeches.
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Pat:
I have been lending on Mexican properties for close to 8 years now. I can tell you that it is still a nightmare unless the process is completely "Americanized"; the developer, the buyer, and the lender are all American.
That sounds xenophobic but it's not. I have watched lenders expand and contract thier loan offerings in Mexico twice now. We always have a cultural problem. Wall Street wants everyone to play their way, and Mexican nationals want us to buy homes their way.
Things are improving but we have a long way to go. The easiest way to get this to happen is to lock 15 investment bankers, 5 mortgage bankers, and 25 Mexican developers in a room for a weekend with the goal of having a solution to the problem by dinner on Sunday.
Now...transparency in Mexican real estate? Don't get me started on that.
Good post.
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Brian, what you say makes complete sense to me... the only way to convince investors of the safety of the Mexican (or any foreign) market is to commoditize Mexican property as a scam-free product fronted by trusted real estate advisors and bankers like yourself, and build a track record.
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I'd love to purchase some property in Mexico. However, I still always think something bad would happen and I may not end-up owning the property
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Buyers of second/retirement homes as investments are soon put off of the mortgage process on Mexican properties by the fees and financial requirements imposed by the Mexican government. Many of the up front fees-to get the process started are used whether the transaction closes or not. The appraisal process and the titling process is rather murkey plus the duplication of effort between the Notario and the US title companies. One of the pressing concerns of the US investors is naturally is the what happens to the investmant in case of default by the buyer. I suspect that fidicomisio could be structured is such a manner as to accomodate this with the lenders name being first on the document until the loan has reached a level of maturity. Anyone have any thoughts on this? please advise at [email protected]
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I was just thinking about Transparent Mexico Real Estate and you’ve really helped out. Thanks!
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