Las Islas Marietas beyond the Jack Nicklaus golf course at the Four Seasons / St. Regis Resort, Punta Mita
As luxury vacation home and condo owners in Mexico largely avoided the U.S mortgage meltdown, large and small developments are teetering if not shuting down from the credit crunch, economic downturn and negative media storm.
For the most part, individuals in the high end market feeling the squeeze and willing to take a loss on their property are often the same who entered the market somewhat recently, along with the entry of the U.S. mortgage industry to Mexico just a few years ago.
Historically, foreigners buying real estate in Mexico could only pay in cash. The mortgage industry in Mexico is only now starting to gain momentum as cash buyers are both fewer and patiently on the sidelines.
A large segment of property owners that paid cash and got in early enough to see the meteoric appreciation of their properties have chosen to hold steady to the dream.
Few are seriously leveraged and most enjoy their vacation properties, however little time there is to use them.
From the perspective of luxury real estate professionals, the recession apparently has not lasted long enough to affect a net loss, much less a reduced return on investment.
As dreams are deferred across the globe, most owners are hunkering down and spurning low-ball offers.
This doesn’t mean there aren’t great opportunities for bargain hunters, but it is nothing like the hyper-active foreclosure opportunities available in the U.S.
Busted mutual fund and stock portfolios have forced many retirees to rethink their situations and there is considerable activity in the sub-million dollar Baby Boomer market.
Re-sales, Completed Product and Land
Activity has picked up even more this week after recent signs of recovery, however the development / project / construction lending has yet to restart, so many struggling and stalled projects are clearly out of consideration for those looking to enter the market with realistic immediate vacation expectations.
Soon, the delivered / deliverable inventory will be at a premium as partially completed large scale projects temporarily blight the landscape.
Then there is, in our opinion, the most solid investment of all…land.
Single family homesites within well secured and gated subdivisions along the luxurious Punta de Mita coastline hold value and provide the empty canvas to build a personalized dream house experience that just isn’t realistically affordable in the U.S.
We offer the best of these properties with discretion in respect to highly motivated sellers.
There are also some high quality, smaller scale projects which deserve close inspection.
These home sites and re-sales of finished and near completed product can still be found at considerable discounts…for now.
Please contact a La Punta Realty agent to be guided through the options along our coastline
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