Diego Rivera was arguably one of the greatest and most renowned Mexican and World wide artists of the 20th Century.  For at least sixty years, Dolores (“Lola”) Olmedo did not have the slightest doubt about who the greatest painter of the twentieth century was. While in the USSR in the 1950s, Diego Rivera often sent Dolores Olmedo love letters and notes, one of which he translated into a mural that spans the entire ceiling of his studio that she had specifically constructed for him on her estate in Acapulco. Following his surgery, and treatment for prostate cancer in late 1955 in the USSR, Olmedo invited him to recuperate at her Acapulco vacation estate, House of the Winds, which she had purchased in 1951. In the 18 short months before his death he had created 5 large murals, 24 sunset paintings, and numerous lithographs of Dolores’s children. These priceless works of art were his way of showing his lifelong friend and patron just how much he appreciated her generosity, friendship and love at that time and throughout the years.

Now 7 years after Dolores’ passing the private estate is being offered for sale by the family. Never before has there been such a unique opportunity to own Diego Rivera Murals, no to mention on such a magnificent private property which overlooks the famous La Quebrada cliffs on the Pacific side in Acapulco.

The facade of Exekatlkalli (House of the Winds) features the rarest of murals created by Mexico’s most important and influential artist and muralist of the Twentieth Century, Diego Rivera. Rare and unique because they all relay unique messages that relate to the naming of the estate~ House Of The Winds. Rare because they are the last ones he completed before his death in 1957. And rare because they are the only Diego Rivera murals to exist on privately owned land in the entire world. House of the Winds not only possesses the facade murals, which draw thousands of art enthusiasts from around the globe each year, but also three additional murals located in the maestro’s studio – two gracing the exterior patio and one covering the entire ceiling of his studio. These registered historic landmarks were created in 18 months from 1955 to 1957, in which time Rivera also painted 24 the famous stunning sunset scenes and produced numerous lithographs of Dolores Olmedo’s children. Sitting in the magnificent room where Diego painted and enjoyed his days with his dear friend Dolores, you can feel the history still lives in this home and the studio.

ABOUT DIEGO RIVERA

Diego was a leader in the Mexican mural movement believing art should serve the working people, not just the wealthy and so he became interested in frescos where he took the art outdoors where everyone could enjoy them. Diego represented the working class people, painting murals on public buildings with narratives of the story and history of his native country.

One of his first Murals in Mexico was a work at the National Preparatory School in 1922, at which time Frida Kahlo was a student there. He went on to paint a series of frescos for the Ministry of Education, and one at the National Agriculture School. He worked in a modernist artistic style and is best known for his powerful, politically charged public murals painted on the architecture and walls of Mexico and the United States. He is one of “Los Tress Grandes” of Mexican modernism, along with Josè Clemente Orzoco and David Alfaro Siqueiros creating artwork with revolutionary, politically leftist themes.  Diego was both talented and politically controversial, refusing to separate his political message from his work. He was more socialist while Siqueiros was an open communist.

ABOUT DOLORES OLMEDO

Savvy businesswoman, art collector and socialite are synonymous with the name Dolores Olmedo Patiño. She was a loving mother who raised four wonderful children, as well as a great philanthropist who loved her native country.

Dolores was born in 1908 in Chilpancingo, Guerrero, Mexico to Maria Patiño Suarez who was a professor and Manuel Olmedo Mayagoitia, a businessman. She would go on to become an educated woman who, not only amassed the largest collection of pre-Columbian artifacts, but also turned a brick factory, on the edge of extinction, into the largest construction firm in Latin America. This in itself was an incredible accomplishment during the 1940s for a young Mexican woman: A time when men ruled and women in the workforce were virtually unheard of. This experience was perhaps what made her a respected no-nonsense businesswoman who always went after what she wanted and, more often than not, got it.

Dolores Olmedos first marriage was to Howard S. Phillips, a naturalized Briton who decided to remain in Mexico after reporting on the Mexican Revolution. This marriage – her longest – produced three sons and one daughter. Her four children each went on to achieve success in their own right; Alfredo Phillips Olmedo was appointed Mexican Ambassador to both Canada and Japan, served in Congress, and was Chief Executive of the North American Development Bank; Eduardo Phillips Olmedo is a prominent cybernetic engineer and project manager who worked for Kodak, Renault & American Motors Company and is credited for creating the computer systems and networks for the Mexican Finance Ministry; Irene Phillips Olmedo is a talented professional and highly regarded celebrity in México City;  Carlos Phillips Olmedo currently handles the historical and cultural landmark museums (Casa Azul, The Anahuacalli, and La Noria) bequeathed by his mother to the People of Mexico.
“Casa Azul” (The Blue House) in Coyoacán is now a museum dedicated to artist Frida Kahlo. It is the home where she was born, where she spent her whole life – with her family and then with husband, Diego Rivera – and eventually died in.

“The Anahuacalli Museo” (Mexico City Valley House) was the home in which Diego Rivera lived in Mexico City. It was transformed into a tribute/museum to the artist in 1963 by Dolores Olmedo and opened to the public in 1964. His vision was to create a “City of the Arts” in a pyramid shaped structure with an atmosphere where music, theatre, crafts and dance could be enjoyed by everyone. “La Noria” (The Well) in Xochimilco is a spectacular 16th Century monastery where Dolores Olmedo resided and eventually restored and created the Museo Dolores Olmedo. This historic property is home to the largest collection of original works by Diego Rivera – 143 pieces including 24 sunset paintings created from his favorite chair as he gazed out over the Pacific Ocean from the living room of House of the Winds in Acapulco. A bronze likeness of Rivera greets La Noria’s worldwide visitors. Immaculate grounds are roamed by graceful peacocks as do eighteen Xoloitzcuintle – the beloved rare hairless breed that Dolores Olmedo was very fond of. Giving La Noria to the people of Mexico was an extremely generous gift to Mexico, and to visitors worldwide, as the artwork and artifacts it houses span more than 400 years of history and worth hundreds of millions of dollars. This generosity was perhaps a life quest that was set into motion when her mother, Maria Patiño Suarez told her daughter, “Share all that you have with other people”.

Despite the focus on her social status, along with her philanthropy work, art and artifact collections, and business dealings, one can hardly mention Dolores Olmedo without mentioning Diego Rivera as well. Perhaps it is because her museum houses the largest Diego Rivera collection (with thousands of smaller items such as letters, notes, etc. not on display yet) – or the fact that Rivera named her “Custodian of his Art” upon his death. Or maybe it’s because he adorned her Acapulco estate, House of the Winds, with five grand murals while he was her houseguest from 1955 to 1957. Whatever the reason, the two had become life-long friends after a meeting when she was 12 years old.

Just when Diego Rivera returned from U.S.S.R. in 1956 and being already in Acapulco, he portrayed on the studio the letter that he sent to Lola who was in Europe:  “From the land of peace the artist toad flew through the clouds to deliver its palette and its heart to its beloved”.  The letter to Lola Olmedo is represented on the ceiling of the studio by a dove; the land of peace is represented by the hammer and sickle (U.S.S.R.); there is a plane, fish, the toad (symbol of Diego Rivera) and the heart (Dolores Olmedo) with four stars (her children).

“House of The Winds” estate has a total of 9,746 square feet of living space between the home and studio. The estate is host to Diego Rivera Studio Acapulco, a freestanding building within the compound. The pool and grounds are dense with tropical foliage, huge windows, magnificent vistas, and spectacular decks overlooking the Pacific Ocean, La Quebrada cliff diving platform, and the yacht club harbor hosting the Acapulco Marina.

This property is a cultural landmark and represents a unique opportunity to acquire major Diego Rivera murals. To learn more about this unique offering please visit (bi lingual website) www.houseofthewinds.com or contact Heidi Wosak of Century 21 Sun & Sand. heidiwosak@century21penasco.com

By Patrick Connelly

I miss my pup.  He’s up in the states chasing squirrels like an idiot, a relentless pursuit that will probably never bear fruit.  Pets – be it dogs, cats, hamsters, ferrets, and the like – are practically members of the family in the U.S. and Canada.  Leaving one behind is a very tough thing to do; thus, when considering moving to Latin America, a major question is “Can my dog/cat/etc come too?”  The answer is yes.  And depending on the country, the process is quite easy.

Mexico: With hundreds of thousands of visitors from the U.S. and around a million expats and retirees living in the country, Mexico is pretty straightforward in allowing pets across the border.

For dogs the main concern, of course, is rabies.  PROOF OF A RECENT RABIES VACCINATION IS THE MOST IMPORTANT DOCUMENT YOU CAN BRING!  Do not even attempt to bring Sparky into Mexico without one.  Fortunately, they are easy to obtain anywhere in the U.S.  This vaccination must be done at least 30 days before entry into Mexico but cannot be older than 1 year.  For dogs under 4 months, the animal must be kept at the owner’s residence in Mexico until it is old enough to get a rabies vaccination.  Cats and other animals do not need proof of rabies vaccinations.

Also, for all dogs its necessary to get a Certificate of Good Health from your vet.  This just says that, well, your pet is healthy, free of any contagious diseases.

With cats the process is a bit easier.  All that is needed is a Certificate of Good Health, obtained at any vet’s office in the U.S.  At the border your cat will be inspected, and if it is deemed that the animal is unhealthy, you will have to pay for kitty to be treated by a vet in Mexico.  But if the cat is healthy, then there are no problems.

Birds are a bit more of a hassle.  Some species are restricted by either the Mexican government for importing or the U.S. government for exporting.  You may even have to quarantine your bird at one of the U.S. Animal and Health Inspection Service’s center before going to Mexico.  It’s best to get in touch with them before planning to take your bird southward.  http://www.aphis.usda.gov/

Other animals, such as hamsters, rabbits, ferrets, and other furry critters are allowed into Mexico without much fuss as long as they are in good health.  Reptiles and amphibians, however, have restrictions depending on the species; check with http://www.aphis.usda.gov/ for specific information.

Costa Rica: The regulations for bringing pets in is similar to Mexico’s, with a few differences.

Both dogs and cats need proof of a rabies vaccination performed at least 30 days prior to entering Costa Rica, but no more than 1 year old.  Failure to have this document will result in a lengthy quarantine and many headaches.  They will also need the Certificate of Good Health form saying they are carrying no communicable diseases.

Birds are now allowed into Costa Rica; however, you are not allowed to take them out if you decide to leave.  So make sure the move is what you want if you plan on bringing a bird along.

Other pets such as small mammals and reptiles also require the Certificate of Good Health.  Some species may be restricted, so it is good to check with http://www.aphis.usda.gov/ first.

Panamà: Compared to Panamà, getting an animal into Mexico or Costa Rica is a breeze.  Panamà has more paperwork, more procedures, more headache – but don’t panic, LW is here to help.

For dogs and cats the usual forms – Certificate of Good Health and rabies vaccination – are the first thing you should get done in the U.S.  They are the same as the ones in Mex and Costa Rica and have the same time restrictions.  Additionally, you need to mail a $30 money order to the Consulate General of Panamà.  And, most annoyingly, you need to send a Quarentine For Domestic Animals form to the Minister of Health in Panama.  This must be done at least 3 days before the animal’s arrival.

Now here’s the tricky part.  Your cat or dog MUST be checked by a Panamanian vet at the Tocumen airport in Panama City, and the vet must be government-authorized.  Easy, right?  Well yes, except the vets only work from 9am to 3pm and from 7pm to 10pm Monday through Friday.  If your plane lands after hours or on the weekend, you either have to keep your pet at the airport until the vets go back to work or arrange for a government vet to meet your plane.  You can arrange this with the Ministry of Health, but will have to pay extra.

Birds and reptiles are a real pain to get into Panamà, but not impossible.  The first document you need is an import permit, which you get from the National Environmental Authority (ANAM).  Next, your bird needs to be vaccinated before arriving in Panamà for the following diseases: New Castle, Tuberculosis, Avian Influenza,  Chlamydia, and Salmonella.  Proof of these vaccinations must be included in the Certificate of Good Health.  Also, the Certificate of Good Health and the import permit must be certified by the Consulate in Panama before your bird arrives.

With such strict deadlines and procedures, it may not be a bad idea getting the help of an attorney in Panamà to assist you in bringing an animal in, especially if its a bird, reptile, or other kind of exotic pet.

Brazil: The land of samba welcomes pets; just make sure the paperwork is in order.

For dogs and cats the first thing you need is the rabies vaccination, which follows the same guidelines as the other countries: no less than 30 days and no more than 1 year since the vaccination.  Second is the ubiquitous Certificate of Good Health, obtained in the U.S.   However, with Brazil, this certificate needs to be authorized in the U.S. by an APHIS office.  Check their website http://www.aphis.usda.gov/ for an office near you and make an appointment (walk-ins aren’t allowed).  The APHIS signature costs $24.  After this step, take the certificate to a Brazilian Consulate in the U.S: for further authorization, which will require a money order of $20.

After all of the authorizations are complete, your pet is ready to go.  You only need two documents: the original rabies vaccination and the double-authorized Certificate of Good Health.

For all other animals an import permit is required, which must be obtained before the animal arrives in Brazil.  This form is obtained from the Ministry of Agriculture (Ministério da Agricultura, Pecuária e Abastecimento).

No quarantine facilities exist for pets at Brazilian airports.  If there are problems with the paperwork, the pet, be it a dog, cat, or iguana, will be sent back to the U.S. at the owner’s expense or destroyed!!

Do you have additional info on pet travel?  Hints or tips?  Success or horror stories?  We want to hear from you!

If you are looking to move down south, you can find Latin America real estate by clicking on the link.

photo provided by jorgenjuul at http://www.flickr.com/photos/jorgenjuul/309794248/

By Patrick Connelly

It is, ultimately, the point where the process of living in Mexico diverges into two distinct paths.  The question of whether to rent or to buy – to purchase that clifftop villa on the Pacific or just rent a nice place in the nearby town – plagues many a prospective buyer in the U.S. and Canada.  The decision has more variables in it than a college calculus class, but here are a few things to take into consideration if you are having the same quandary.

1. Renting keeps your options open

If you are like me and have a total fear of commitment (relationships, locations, etc. etc.) then renting is perfect for you.  Well, that and if you are just not totally sure on living abroad for long periods of time or permanently, or don’t fancy investing money in a property in another country.  Renting can be a great option for the certain type of person, especially those new to Mexico.  Buying or building a house ties you down to that property.  Renting does not.  Simple as that.  If you find out that you hate Mexico and want nothing more than to stay in the U.S., it is much easier to cancel or see out a lease than it is to sell a home.  And if you want to travel around Mexico or Latin America for an extended period of time, it is usually easy to sublet your rented property to recoup some of the losses.

2. Buying a house is an investment

While the global recession has driven down home prices in Mexico in recent months, owning a home south of the border is still a great long term investment.  The Mexican economy hasn’t been hit as hard as the U.S. has and the situation north of the border will recover in time.  In fact, many real estate professionals are predicting a strong buyer’s market in the coming months in hotspots like Puerto Vallarta and Cancun.  With a bit of shrewd cunning great deals can be found these days and when the markets bounce back – and they will – owning a property in Mexico suddenly becomes a very, very valuable commodity.

3. There is far less of a financial investment when renting

Well, duh.  Financially speaking, it is definitely the “safer” of the two options.  While you certainly get more bang for your buck in Mexico than you do in the U.S., buying a home is still a major financial investment.

4. YOU own the house and deal with no one else

Anyone that has dealt with landlords knows it can be a real headache.  Its no different in Mexico.  The fact that you do not own your rental property and have to answer to a higher up may lead to squabbles over anything from redecorating to rent to leases.  Choosing a good rental management company can prevent conflict if you want to rent.

On the other hand, when you own a house, you decide what goes in it, what additions will be put on, etc. etc.  You are your landlord.

5. More choices when buying

Odds are, you will find a property for sale in Mexico that matches your desires before a rental.  There are just more options out there to choose from. Rentals are only ultra popular in certain areas frequented by vacationing tourists, while good homes for sale exist everywhere.

The choice ultimately comes down to you.  Owning a home in Mexico can be the experience of a lifetime, but it isn’t for everyone.  My advice would be to rent a house for a few months in your desired location….get to know the culture, climate, and lifestyle.  If you fall in love with it, jump in.  If you hate it, simply back out or try a different region of Mexico.  This is by far the smartest approach to take – many a gringo have made impulse buys after a two week vacation in Cancun or Cabos and ended up with a house they later realize they don’t want.

photo provided by Ze Eduardo at http://www.flickr.com/photos/97968921@N00/756377225/

This one’s for you guys. Which is better, the inland haven or the Caribbean getaway? We want to hear from everyone…tourists that have visited as well as expats and retirees currently living there. Voice your opinion below.

photo provided by cocolimemonkey at http://www.flickr.com/photos/locachica/2926141774/

We recently had the pleasure to interview Mitch Creekmore, a licensed real estate broker and one of the most respected names in Mexican real estate.  He co-authored the book Cashing In on a Second Home in Mexico: How to Buy, Rent, and Profit From Property South of the Border with Tom Kelly, and the book as become a major success.

LatinWorld: First of all, whats the real estate market like right now? How has it fared during the economic crisis? What are homeowners, Realtors, and the Mexican government doing to shore up the housing market?

Mitch Creekmore: In Mexico, the real estate market that sells to foreigners can be best described in two words; depressed and challenging.  Markets like Cabos San Lucas, Puerto Vallarta, the Riveria Maya and even San Miguel de Allende have seen 50-75% reductions in residential sales activity.  It is not the fault of Mexico.  It is not about Mexico.  They are the victim of the financial debacle in the United States coupled with “bad” press concerning our southern neighbor.  What had been a robust and vibrant second or retirement home market to North Americans for more than the pastdecade has become painfully quiet and dormant.  The simple fact is Americans have lost their desire and enthusiasm for a second home purchase…, anywhere!  Mexico hasn’t changed, buyers have.  With a 30-40% diminishment in personal net worth, debt coming due and no ability to refinance or restructure home equity loans or mortgages, liquidity and disposable income for the “dream” home acquisition have dried up.  At least for the next several years.  There is nothing the Mexican government can due to thwart the demise of their second home market to North Americans.  Mexico can only wait out the crisis that has Americans sitting on their hands and each day monitoring the status of their own domestic situation.  Canada isn’t in any better situation with an ongoing diminishment of their dollar.  Americans, for the most part, are going be cautious and reluctant to make any financial move until they can see a return to normalcy in their personal status or predicament.  Financial risk is not the order of the day.  Too many Americans already have plenty of that.

LW: What is the future of Mexican real estate? Where specifically can we expect to see a boom in sales?

MC: Real estate in Mexico will once again be vigorous and dynamic once the financial crisis in America stabilizes. When Americans can feel good about their personal net worth and disposable income, they’ll look to our neighbor south of the border for that second home purchase.  There will also be a number of Americans that will look to Mexico to be their retirement destination in the years to come.  The cost of living and everyday affordability that Mexico offers grossly surpasses that of the United States.  Many U.S. citizens that will be living on fixed incomes or simply have not saved enough for their retirement will look to Mexico to be their residential locale, their safe haven.  And for good reason.  Mexico and Mexico’s national tourism agency get it.  They understand the inherent value of what Mexican property acquisitions by foreign buyers provide for their country and their citizens.  They are acutely aware that Americans will need an alternative to remaining in the U.S.  With Mexico’s close proximity, improved health care, infrastructure, airlift and geographic diversity, many North Americans will make Mexico their home.

LW: What are some of the current popular trends? i.e. larger homes, condos, rentals, etc etc.

MC: There are not a lot of new trends and especially in a dormant market.   One area that will be more in demand will be fractional ownership.  With limited potential buying power and possible disposable income issues in the near future, buyers will look for greater affordability.  Fractional ownership is one such avenue given the limited vacation time Americans normally have and carrying expenses on a unit in whole ownership.  Another market type or innovation is condo hotels.  What lenders there are in the market for financing Mexico residential projects, and those are virtually non existent today, will require an income stream via nightly rentals.  They need to proforma occupancy income to make with loan perform.  They just can’t wait for sales to occur and with greater potential for loan default given the dire sales landscape that exists in Mexico right now.

LW: Describe briefly title insurance in Mexico.  Your company, Stewart Title Insurance, was one of the pioneers in title insurance south of the border.  How does it differ from title insurance in the United States?

MC: The concept of title insurance in Mexico basically emerged in 1994 with the inception of NAFTA and Mexico’s strategic changes in their foreign investment law.  With a vision toward the future, Stewart Title Guaranty knew there would be an opportunity to introduce and sell title insurance policies to foreign purchasers of Mexican real estate.  Title companies have never existed in Mexico or in any other civil code jurisdiction for that matter.  Notarios publicos are the title companies in civil code countries as well as in common law jurisdictions outside the U.S.  Federal governments empower these individuals, as attorneys, to transfer title to property and establish judicial certainty in one’s real property rights.  The difference with our American system that utilizes title companies to convey title is that notarios do not provide a monetary indemnification or a warranty of title in the event of a title defect or loss.  American title companies provide this protection to buyers and stand behind their acquisition or sale from a legal and monetary standpoint via the title insurance policy issued to a buyer.  Though the concept of obtaining a contract of indemnity (a title insurance policy) has existed in the U.S. for more than 135 years, it has only been available in foreign countries for about 20 years.  Stewart’s title policy issued on Mexico land is very similar to the basic policy issued in the United States.  It can contain affirmative coverage’s, endorsements and modification like the U.S policy, subject to underwriting approval, and has its own particular additional insuring provisions created for Mexican title issues like “ejido” land matters.  As with U.S. title policies, it provides for legal defense costs in the event of a title claim or assertion of ownership and the insured can bring their claim directly to Stewart in the United States.  Moreover, Stewart’s Mexico title policy can be issued to anyone on either side of the border.

LW: What kind of advice would you give to someone buying their first property in Mexico?

MC: First and foremost, educate yourself about real estate in Mexico.  There is a world of good information out there so you can learn and know about all aspects of purchasing and owning property in this beautifully diverse country.  DO NOT rely solely on the advice of the real estate agents in Mexico.  One must remember that 95% or more of these individuals have never held a real estate license anywhere nor have they ever attended a real estate class prior to selling properties in Mexico.  You need to be the knowledgeable person.  This is precisely the reason why we wrote the book on Mexico.  A prospective buyer needs to know “what’s wheat and what’s chafe” as I often say.  It may be more about the agent’s commission than your security and good title.  It always depends on the agent just like in the U.S.

Secondly, don’t get in a hurry.  Take your time.  Purchasers are not standing in line right now given the dynamics of the market.  Buyers are still going to get “pushed” to move quickly by the seller and by the real estate agent.  Request a copy of the owner’s deed, require a due diligence period of at least 30 days in the sales contract, get a title examination done on the particular property to be purchased with issuance of a commitment for title insurance on same, and put money(ies) into an independent, third party escrow account.  These services didn’t exist in Mexico in 1994, but they do today.  It’s been Stewart’s evolution of the process to create a U.S. standard of title assurance applied on Mexican real estate.  There is no reason why Americans can buy, own, enjoy and profit from a residence in Mexico…., proved they know how the process works and what safeguards are available.  If nothing else, read the book we wrote!

To find Mexico real estate for sale and for rent, you can visit VivaReal.

front photo provided by Gabriel Daniel at http://www.flickr.com/photos/gdgstudio/2649145346/

first internal photo provided by Gabriel Daniel at http://www.flickr.com/photos/gdgstudio/2648315259/

second internal photo provided by Video_vik at http://www.flickr.com/photos/57768426@N00/2142305668/

third internal photo provided by violet and ivy at http://www.flickr.com/photos/babyfrank/2138913337/

LW: We will start with economy.  In the past four or five years Panamas economy has really been booming, growing at an average rate of 8.5% a year.  With the current financial downturn things have slowed down a bit, but Panama remains strong.  What does incoming president Ricardo Martinelli plan on doing to prevent the economic collapse that we have been seeing in other Latin American countries?

Figueroa: First of all, the impact in Panama of the whole international crisis has not been felt as it should be compared to the neighboring countries, never mind the United States and European countries that are really feeling the stress of the economic situation.  And there are several factors for this.  First of all, Panama has a very sound and solid banking system.  None of our banks failed during this crisis.  The only bank that failed was Stanford bank, and that was because it is based in the United States.  This is important to know, because we do have a very solid market in Panama.  In addition to that, we are undertaking the expansion of the canal, a project that has and will continue on schedule.  So the demand for jobs and the demand for services with that project will maintain the economic growth at a faster pace than normally.  And that expansion project, by the way, is larger than the original canal project from 1904-1914.  So the expansion project is larger than the original canal, as far as movement of land.

LW: I remember being in Panama, and it was definitely a very exciting time.  Just how many jobs the expansion was going to create, and then once, of course, its finished the real boom to the economy the canal will bring.  It really couldn’t have come at a better time because it is a kind of safeguard in this economic crisis, with all the jobs created as a direct result of the expansion and as a byproduct.

Figueroa: In addition to that, its very important that we have the Martinelli factor in place.  Ricardo Martinelli is a businessman, he is business oriented, and he has been very successful in his career. Last year he invoiced around 450 million with the Super 99 supermarket chain.  He has a vision, a different vision than most presidents.  Normally we have had a lot of corruption, which is rampant in Latin America, but Martinelli said “No, we aren’t going to steal any money, we are going to work and make government efficient.”  Now, if Martinelli is successful, and I believe he will be, in making government efficient, then panama has an opening to be the first economy in the world.  Panama is a very small country, we came out of the ocean 3 mill years ago, united the two continents.  This made an ecological wonder.  We have more bird species than any other country in the world.  We have more bird species than North America and Europe combined.  We have 177 World records in deep sea fishing, so if yo want to go fishing, you don’t go to Miami, you don’t go to Mexico, Jamaica, or the Bahamas, you go to Panama.  This is where the big fish are.

For the 6th consecutive year Panama has won the World Coffee Championship in Charlotte, NC, which makes Panamanian coffee #1 in the world. Most people think the best coffee comes from Brazil or Costa Rica, but it comes from Panama.  One of the most important assets that Panama has, and people do not look at this as important now but they will in the future, is water.  Panama has a lot of water.

The country that controls the water of the world will be the new world leaders, and Panama is a sponge of water.  We have a very fertile jungle.

I remember a few weeks back i was walking on the causeway and there were some American tourists walking and they were holding a bottle of Evian.  I asked them why there were drinking Evian in Panama.  After all, Evian spelled backwards is naive.  They paid $6 for the bottle at the hotel.  Of course, the hotel didn’t tell them that the tap water in Panama is just as good or better than Evian.

Panama has the largest merchant fleet in the world.  More ships have Panamanians flags than any other.  Panama has the second largest free trade zone, behind Hong Kong, so we have a lot of progress going in our favor.  Martinelli intends to build more highways that will revolutionize this country, the way the U.S. changed during the Eisenhower administration in the 1950s and the construction of the interstate highway system.  By construction highways in Panama, including the Caribbean coast, running from the Kuna indigenous islands of San Blas to the Costa Rican boarder, that whole area of the Caribbean, which is virgin, will be exploding with tourism and commerce.

We mention in our government plan that we are going to build 5 more international airports.  That may seem very exotic to some people, but the Dominican Republic, which is smaller and much poorer than Panama, has 7 international airports.  So building 5 additional airports in Panama is not something that is out of whack.  So by building the airports and highways, as well as developing the ports – last December Panama became the Latin American home port of the U.S. cruise industry.  So cruise ships originate and terminate in Panama.  That brings in additional tourists that were not there before.  We intend to go forth and knock on the doors of all the major cruise lines – Norwegian, Carnival – to bring this business to Panama.

Panama has only 3 million inhabitants.  So, per square mile we have a lot of land. So to grow we need to stop thinking Lilliputian.  We have to think big.  The problem with many of the Panamanian governments before is that they were thinking small.  Two lanes? No, you need to do six lanes!  This is Martinelli’s view of panama.

Now when my customers come to Panama i tell them to take a window seat on the airplane.  They have a fantastic view of the Panama canal, and then as they approach, they see the Panama City skyline, and I don’t care if you are from Manhattan, you will be awed by that.  They get off the plane and say “Wow, we did not expect this.”  And you see all the movement in Panama, you see all the cranes.  Its exploding.  Especially the people from Europe, who come from countries with few high-rises, and Panama’s skyline is very impressive.  Now we open the new coastal highway, which is very beautiful, which is due to open June 15th.

I think we will focus more on developing tourism in the interior of the country.  Right now only 2 out of every 10 tourists cross the bridge of the Americas to enter into the interior.  So we need to develop that area in an orderly fashion.

So Panama continues to grow.  We intend to knock on the doors of all of the large multinational corporations that are now have headquarters in Florida, Atlanta, and the southeast US and to bring it to Panama.  Panama is an excellent place to do business.  We have fiscal incentives, we are free of earthquakes and hurricanes, we have the dollar currency…there are a lot of pluses for doing business in Panama.  But most companies do not know that.  But now a lot more American and multinational companies will be coming to Panama to establish regional headquarters, because we also have a hub of the Americas here.  We fly to every country in Latin America and 5 cities in the US on a daily basis.

By looking at that I can forecast to you, first of all, that Martinelli will be very successful, changing the dormant way the government does business, and he will put priorities in the right place because hes a business man and surrounded by business people.  That will help us grow more aggressively than before.  Even though we may have this recession in the world, as a matter of fact this recession has been very good because people are looking at Panama as an option and were not looking at us before.  I think the market will keep on growing in that direction.  I am going on the 6th of June to Milan Italy to the largest real estate conference in Italy to make a presentation.

In Panama, we are now focusing more on the high-end market.  For example, we are building the Trump Ocean in Punta Pacifica – those units begin at over $1million, so we have to focus on high-end buyers.  We also have everything..everything on the road.  Now, we don’t want make Panama a welfare state.  We don’t want people coming in and saying “oh, i cant live on my social security in the U.S. so I am going to move to Panama.  No, that’s not the idea.  We want to concentrate on the high-level tourists and retirees to move here and enjoy the quality of life that we have here.

Photo provided by kenobando at http://www.flickr.com/photos/kobando/2683729227/

As retirees struggle to find a solid economy that provides a safe place to invest in, Mexico stands out as one of the most advantageous countries south of the border in which to do so. Out of a list of things that makes real estate investment in Mexico a very attractive option, property taxes may be by far the greatest of all advantages.

The property tax rate in Mexico may range from 0.275% to 1.350%, depending on the location of the property and it is payable annually. Regardless the property location, property taxes are lower than those in the US.

Average real estate taxes in Mexico

When compared to the United States real estate market, Mexico´s property taxes are almost 50% less than those of the US. A property of around $450,000 located in Sayulita can have an annual property tax of just $150. Similarly, the owner of a property of around $200,000 will normally not exceed $130.00 per year.

Why are property taxes in Mexico so cheap?

Mexico´s priority is to encourage investing, so instead of having property taxes as a source of big revenue, the government prefers to attract investment and promote homeownership by making the real estate market an attractive and profitable investment for foreign real estate buyers.

The cost of property ownership tax (Impuesto predial) in Mexico is pretty reasonable. After the owner receives the bill via mail they can pay it at a local bank where a receipt will be issued. Bear in mind that these paid receipts are a key document for the sale of the property in the future.

Photo used for this entry was kindly provided by Flickr user blmurch

Article written by Sharon I. Heafey and Victor Loza

Contributing writers to Latinworld.com

Ouch that Hurt!

If you knew me, the last thing you would ever think was that I was gullible. I’ve owned a very successful computer consulting and training company for 20 years, worked for a law firm, and come from a family whose philosophy is, “Believe half of what you see and none of what you hear.”

I’m tenacious, do tons of research and have endless questions that I’m not shy about asking. So how did my husband and I get ourselves into trouble when we built a home in Mexico? Simple, we did not make sure that we had the right agent. Fortunately, finding the right agent is not as hard as it was 4 years ago when we moved to Mexico.

Rules of the Road

Rule #1: Find an agent that is a member of a reputable real estate organization. In our area of Rosarito and Ensenada that would be AMPI (for both Rosarito and Ensenada) or APIR (for Rosarito) or APIE (for Ensenada). It’s a small community and everyone knows who to work with. In addition, AMPI is also recognized by the National Association of Realtors (NAR) and agents are governed by a Code of Ethics.

If you are already working with an agent, ask them about their membership in one of these organizations. If they tell you they don’t belong because membership doesn’t mean anything, run, run very fast. There is a reason why they are not members of any of the local Associations and you don’t want to be the person who finds out why.

Rule #2: Get references. Start by talking to someone in AMPI, APIR or APIE. Let them know that you have already met and selected a realtor, but want to find out if they are a member in good standing. Ask if there have been complaints against them and how they were resolved. Not all agents will be members of all organizations, so be sure and ask your agent which organization they belong to.

Talk to at least two clients who have worked with the agent – even if they did not buy. Don’t rely strictly on written testimonials. These are easy to get – or fabricate. You want to hear the tone of their voice or whether they hesitate before they respond. Ask the reference what the best part of working with the agent was, and where the agent could have improved. There is always room for improvement so you should expect to hear something, even if it is minor.

Since you are moving to a new country, it is equally as important that the buyer received support after the sale. Was the buyer dropped like a hot potato when the commission check cleared or did the agent help them with their phone and cable hook up, find a doctor, dentist, dry cleaner, and best of all, a great taco stand?

Rule #3: Beware of the bait and switch to get you to buy NOW. As the economy changes, there is more misleading advertising. Ads range from claims that there are fire sales where prices are dropping by hundreds of thousands of dollars to homes having great ocean views when they really have an ocean “peek a view.”

There are good deals out there, but they probably aren’t going to disappear in the next 24 hours. If you really want a property, but have not had time to do all your research, put down a refundable deposit and have it held by a reputable company that you and the seller agree upon. Ask to see the previous listing before the drastic drop in price and find out how long the property was on the market. A change in price of $100,000 after being listed for only 24 hours screams mistake, not deal.

Rule #4: Find out if your agent owns property in Mexico. I’ve never been big on, “Do as I say, not as I do.” If your agent is telling you that owning in Mexico is an excellent investment, you deserve to know how committed they are. Over the last four years there have been numerous agents that have easily come and gone because they were on a month-to-month rental.

If you want to be able to call your agent six months or even two years from now, you have a much greater chance of having your agent in the country because they have made the commitment to invest and live in Mexico. With 80% of buyers finding their property on the Internet, you will even find brokers claiming they have offices in Mexico when they neither operate nor live in Mexico. Ask where their offices are located and then stop by to check out the location.

Rule #5: Make sure your agent has experience with your type of purchase. There is a huge difference between buying a built unit and building your own home. We actually own two properties. Our home in Rosarito was already built and we lived there for the 2.5 years it took to build our home in Ensenada. The purchase in Rosarito was easy, smooth and pretty much stress free.

Stressful cannot begin to express our experience with building our home in Ensenada. Now we know, from personal experience, every mistake you should not make and exactly what you should do to protect yourself. There is a huge difference between learning about building a home and building one. If you want to build a house, find an agent who has actually experienced building.

Today, more and more buyers are looking for property in wine country. Purchasing property with the goal of making wine is totally different than buying a house or condo. There are considerations that you would never begin to think about in the United States or Canada. Be sure to work with an agent who has experience with this type of purchase in Mexico. If they don’t have personal experience, let them know you don’t have a problem working with an associate of theirs that does have the proper experience. If your agent isn’t willing to share some of their commission to make sure you are protected, maybe they are not the right agent for you.

Rule #6: Ask for documentation on listings. So many times the agent will tell you they have a great listing, but can’t provide you with documentation showing proof of title. There is nothing worse than getting your heart set on a property and then after weeks or months of running around in circles, you find out that the seller doesn’t have clear title. Not only are you out a property you fell in love with, but you have lost time and possibly another piece of property that you would have liked equally as well.

However, it is not uncommon for an agent to get a new listing that could fit your needs, but not have had time to properly research the property. That should not be a problem as long as you are aware that there is a possibility you might not be able to make a deal if the research turns up some problem.
Here Comes the Offer

Yes, you can have a good experience purchasing property in Mexico. You want to make sure that you have a knowledgeable, experienced, and ethical agent. When you are ready to make an offer there are a myriad of additional considerations and concerns, but if you have selected the right agent, you will have the right person to guide and protect you.

Sharon Heafey and Victor Loza are co-founders of Your Baja Connection. YBC provides real estate and relocation services for buyers in Mexico. YBC can be reached at 858.748.5870, via email at YBC@YourBajaConnection.com, or at www.Your BajaConnection.com.

At Your Baja Connection we understand all these issues and we have purchased and gone through the process ourselves. We want to be Your Baja Connection and are ready to assist you in a worry-free purchase of your new retirement or vacation home or condo in Mexico.

By Fabio Rodriguez

San Miguel de Allende is a charming town northwest of Mexico City. It seduces visitors with its Spanish Colonial city center, cafes and restaurants. It helps that it is driving distance from Texas, but one of the major allures is that the cost of living is much lower. For example, a gardener charges around $2 an hour, a house cleaner that cooks and cleans is around $80 a week (in the states, this would cost a minimum of $80 a day). More than 10% of the town’s residents hail from the United States or Canada. As millions Americans face retirement in an economy that has ravaged their savings, places like San Miguel de Allende have an extra appeal. Another area where savings are to be had is in the real estate market. In Florida, property tax on a $500,000 home is around $10,000 a year and you’d have to add another $10,000 or more for hurricane insurance. The property taxes on a nice house in Mexico range from just a couple hundred dollars a year to a thousand. Most of the homes in San Miguel don’t require home owners insurance because houses are stone and stucco so they don’t run a high fire risk.

Despite the recession or maybe because of it, many Americans are still coming to San Miguel. On the edge of town you can find condos for around $250,000, you’ll find starter homes on a golf course for $200,000. It also may surprise you to find Starbucks, Home Depot, Office Depot, Costco, Blockbuster and of course a McDonald’s, however if you are in Mexico, I would suggest the Posole instead of burgers!

Jack Watson, President Carter’s former Chief of Staff, is now a San Miguel resident. He was recently asked, “As this town grows and becomes more American, is there a danger that is it going to lose its flavor?”

He responds, “Absolutely, I’m concerned about the influx of lots of people because one of the really special things about this place is the nature of the place, so if it is overwhelmed by people coming from the United States or from where ever, you’ve got lots of problems.”

By Patrick Connelly

Many longtime residents or visitors of Loreto worry about spoiling this intimate pueblo with high-rise buildings, but it appears that FONATUR, the Mexican tourist development agency, is committed to making sure that this area is developed with an environmentally sensitive approach. They are working with TSD, Trust for Sustainable Development, an organization with a history of building projects that have a positive impact socially as well as ecologically.

This bodes well for the area because it currently has a small town charm to it that may be lost if they start building high-rise condos that create walls between the beaches and the town.

Loreto is one of the top places in Mexico for snow birds and vacationers alike. They are attracted to this small, “tranquillo” (laid back) community for its warm weather, beaches, restaurants, and bike lanes that encourage you to hop on your schwinn instead of relying on your car. If you really like fishing or just eating fresh fish, Loreto has no shortage of beautiful dorado, or mahi-mahi in the U.S., which makes for perfect fish tacos. This small town feel, perfect for retirees, will hopefully expand and build responsibility to keep the historic charm.

Picture taken from flickr, provided by user WisDoc at http://flickr.com/photos/wisdoc/2313756181/