Mexico Are Safety Concerns Fact or Fiction?

Mexico Real Estate: Are Safety Concerns Fact or Fiction?
Published on: Wednesday, December 02, 2009 Written by: Glynna Prentice
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Mexico's real estate market and tourism industry have been hard hit by the global recession, concerns of drug violence and the swine flu. Are the safety concerns legitimate, or a myth reinforced by the media? Glynna Prentice from International Living seeks to debunk some of the misconceptions on safety in Mexico.



Mazatlan, MexicoPart of my daily routine here in Campeche, where I live in the Yucatán Peninsula, is to stroll to the historic center and chat with friends who own shops on the main street. I usually go in the late afternoon when the air is cooler and long shadows stretch across the cobbled streets and colonial buildings. It’s a nice walk, and very peaceful.

I used to pass lots of tourists along the way, but I don’t anymore. These days my friends mostly talk about how tourism is down, and with it their sales.

Tourism all over Mexico has slowed to a trickle this year. Part of this is due to the global recession, which has left people with less money to spend on travel. But mostly it’s due to bad press, to fears of swine flu and of drug violence. And it’s a shame, because it’s both inaccurate and undeserved.

It’s doubly a shame because those fears are making folks miss out on some exceptional bargains. Right now, you can get big savings on Mexico travel deals—discounts on hotel stays, air fares, restaurants and the like—to entice tourists back. The tourists who come all have a great time.

They find Mexico as beautiful and exciting as ever, and they marvel at the huge gap between what the media has told them and the reality they find.

So, for all of you who haven’t been lucky enough to see the truth first-hand, I’d like to do a little myth-busting.

Myth #1: You’ll Catch the Swine Flu in Mexico

Actually, you can catch the swine flu anyplace, because it’s spread all over the world. In June, the World Health Organization declared the swine flu—virus H1N1—a pandemic. In other words, it’s pretty much everyplace. In fact, these days you probably have a better chance of catching it in the U.S. than in Mexico, because there have been more confirmed cases in the U.S.

H1N1 may not even have begun in Mexico. But Mexican health officials first identified it. And Mexico, being a good global citizen, blew the whistle. Sadly, that decision has cost Mexico billions in tourist dollars.

Here’s the situation now: As noted, the WHO declared H1N1 a pandemic in June. Note that this doesn’t mean the disease has gotten more dangerous. The term pandemic just refers to how widely it’s spread.

Countries that had warned against travel to Mexico have largely lifted those bans. The U.S. Centers for Disease Control and Prevention, for instance, have removed their travel warning for Mexico and replaced it with a general global warning. Airlines that had canceled flights to Mexico when the flu first appeared have begun resuming their schedules.

The fall flu season has begun and, as expected, new cases of H1N1 are showing up in both the U.S. and Mexico. Vaccines are available in the U.S. already, and will be in Mexico by December (huge demand for the vaccine has slowed down delivery). In the meantime, Mexico’s public health department—which takes its job seriously—has been educating the public on how to cut down the spread of infection, like washing your hands often or staying home if you’re sick. (These simple measures are very effective, actually.) In addition, businesses like restaurants often hand out antiseptic hand gel to customers to make sure folks follow proper hygiene procedures. Mexico’s health officials also note that, from what they’ve seen so far, H1N1 is proving no more dangerous than the normal flu.

So chances are slim that you’ll catch the flu if you come to Mexico. But if you do, don’t worry. Mexico’s hospitals and doctors are first-rate, and they’ve all been prepped on this strain of flu.

Myth #2: Mexico is Violent

Many people already see through the media hype and take what they read and hear with a grain of salt. They realize that violence in border towns and drug areas doesn’t affect safety in places that are hundreds of miles away. To do so, as the media does, is like condemning Ohio for violence in Detroit.

But because the media keeps harping on it, we’ll say it again….

Only parts of Mexico are violent. These are the border areas, Mexico City, and a few other drug-related areas that have always been dicey. In other words, the usual suspects. We don’t recommend these areas.

Most of Mexico is still safe. The places we recommend—such as San Miguel de Allende, Ajijic, Puerto Vallarta and others—are probably safer than where you live now. Certainly Campeche is safer than anyplace I’ve ever lived before.

I’ve walked around cities all over Mexico by day and by night, and I’ve always felt safe. I take normal, sensible precautions, but otherwise I don’t worry. Other expats I’ve spoken with tell me the same thing. Random violence of the kind we know from the U.S.—muggings, for instance—is extremely rare here. It’s just not something you worry about. And the drug war? Unless you’re dealing or buying, you’re likely safe.

Reality: Mexico is Still as Great a Destination as it Always Was

Fundamentally, Mexico hasn’t changed. It’s still beautiful, exotic, and welcoming…and offering a high quality of life at a fraction of what you pay north of the border.

And traveling to Mexico now is a better bargain than ever, thanks to all the special offers. So do yourself a favor and take advantage of them. Because—like the media frenzy over the swine flu—they won’t last forever.

This article has been republished from International Living. You can also view this article at InternationalLiving.com.

Mazatlan Mexico Property Bargains attracting More Investors

Mexico Property Bargains Attracting More Investors
Published on: Tuesday, September 07, 2010 Written by: Property Wire
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Although its fortunes are closely linked with the US, Mexico's real estate mostly held its own during the latest US market crash due to supply and demand balance. Property bargains in Mexico are attracting buyers who have invested nearly $300 million in a Prudential fund for industrial real estate, but experts warn that prices could fall further or remain suppressed. See the following article from Property Wire for more on this.




The commercial real estate market in Mexico has remained remarkably stable in the face of the downturn in the US economy following the global financial crisis of late 2008, a new report shows. downturn in the US economy following the global financial crisis of late 2008, a new report shows.

Mexican property developers have done a surprisingly good job at matching new supply of real estate with demand but any improvement in conditions for the economy in general or the commercial Real Estate sector in particular will be gradual, says the report from Companiesandmarkets.com.property developers have done a surprisingly good job at matching new supply of real estate with demand but any improvement in conditions for the economy in general or the commercial Real Estate sector in particular will be gradual, says the report from Companiesandmarkets.com.

The exposure of Mexico’s economy to trade with the US means that the recovery through 2014 is likely to be fragile. ‘In particular, we see no sign of an upturn in investment. Nor do we see evidence of a sustainable recovery in consumer spending. The risks are to the downside,’ it says.
‘
Nevertheless, the various protagonists in Mexico’s diverse markets for commercial real estate have lived with the challenges of fluctuating growth in the US and changing perceptions of risk within Mexico for a long time. For the time being, we remain optimistic that protagonists will continue astutely to balance supply and demand over the next five years,’ it continues.

‘Consequently, our base case is that yields will remain broadly unchanged over the next five years or so. However, there is a risk that yields slip sharply, in at least one of the sub sectors or cities for which we have data, as a result of a slide in rents relative to capital values,’ it adds.

The report, the latest edition of a new series of industry reports published by BMI that seeks to identify the key dynamics of the real estate sectors of 44 countries around the world, looks at both the long and the short term prospects.

More investors from the US are looking at property in Mexico as prices are lower. Experts are still not certain if prices have bottomed out yet, and some warn that the low prices will just stay that way for quite some time.

Property prices in Mexico have, on the whole, been far less affected by the US housing bubble and the international recession than those across the border. In certain tourism hot spots prices fell more because of a glut of new construction. But according to agents price reductions are disappearing and sellers are listing their properties back at prices seen at the end of 2007, beginning of 2008.housing bubble and the international recession than those across the border. In certain tourism hot spots prices fell more because of a glut of new construction. But according to agents price reductions are disappearing and sellers are listing their properties back at prices seen at the end of 2007, beginning of 2008.

Meanwhile, a fund geared to buying industrial real estate in Mexico has raised $293.3 million from investors. Prudential Real Estate Investors said it will invest in developing industrial sites and acquire portfolios or individual properties with a focus on tenants that distribute or manufacture goods to Mexican or US consumers.

Rose 28% Private Investment In Tourism in Mexico 2010

Rose 28% private investment in tourism
Writer Real eStrategy 7 Barometer, Tourist Market October 12, 2010 The tourism private investment closed the first half of the year with an increase of 28.3 percent over the same period in 2009, reported the Secretariat of Tourism (Tourism Ministry). The private sector invested $ 833 million thousand dollars against 428 million in 2009, the report Identified Private Investment in Tourism Sector, which highlights the resources channeled by state and by segments

Investments increased from 397.8 million dollars in the first quarter to one thousand 833 million in the second quarter, reports say.

The document highlights the investments of almost $ 812 million captured in Mexico City and Guanajuato, which became the largest recipient of investment flows in the sector, up from Baja California, Nayarit, Quintana Roo and Sinaloa. Mexico City earned 447.6 million dollars.

Equity International is Interested In Mexico

Equity International is interested in Mexico

07/10/2010 10:25

Mexico. The real estate firm Equity International, of the entrepreneur Sam Zell, is considering returning to Mexico since it detected growth of the country's middle class that will demand housing in the coming years. This happened after the firm retired its latest investment in the country in 2008.

In Mexico, the growth of the middle class and consumption are constant, reason why Equity International is buying shares in companies that benefit from the growing demand for housing for middle income families, finding attractive also other segments such as commercial areas, logistics and some companies.

In the past, real estate in Mexico invested $32 million dollars in the promoter SAB Homes and was retired in 2008 with a gain of $500 million dollars for its investors.

Sam Zell is considered the real estate investing guru. He rose to fame in 2006 when he sold to Blackstone, the firm Equity Office Properties, before unleashing the housing bubble that caused the U.S. economic crisis