Reasons to Invest in Riviera Nayarit

Price

While prices of private property in Riviera Nayarit continue to rise, similar properties in other parts of Mexico are still much more expensive.  For example, property in Puerto Vallarta, Los Cabos, or Cancun is easily five times more expensive, while there many more benefits of being in Riviera Nayarit.

Ejido land also provides knowledgeable investors an added incentive.  Development projects and holiday homes become a lot more affordable when land can be purchased at a fraction of its value. For investors on a limited budget the acquisition of ejido land can mean the difference between a spot on the beach, or a spot ten minutes away.

Opportunity

Riviera Nayarit is the future of tourism in Mexico, and will soon be the place where everyone will want to be. World class hotels and entertainment, PGA golf courses, natural beauty, and pristine beaches are just a few of the reasons why more and more investors are choosing Riviera Nayarit.

Riviera Nayarit is the largest development project of its type in North America, and millions of tourists will soon be visiting the area.  FONATUR’s plan for Riviera Nayarit is to establish three central hubs, and to encourage private investment to fill in the gaps by providing a very supportive infrastructure.

Apart from long term capital growth, Riviera Nayarit also provides investors a very unique opportunity to lock in huge profits by purchasing land at a fraction of its true value.

Locked in Profit

Riviera Nayarit provides knowledgeable investors a unique opportunity to lock in instant profits with ejido land.  For a number of reasons most ejido parcels are sold at a fraction of their true value, and many properties could be sold for up to ten times more if a private property title existed.

At Riviera Property Group our investment strategy involves securing an ejido price and deferring the payment until the property has been converted into private property. In essence, we purchase private property at ejido prices and lock-in a huge capital gain before the final contracts are even signed.

Capital Growth

Properties in Riviera Nayarit come with a multi-billion dollar infrastructure and marketing plan. The Mexican government has already dedicated the funds for the project, and is quickly turning a number of small farming towns into a massive high-end tourist destination.

Under normal circumstances it takes small towns decades to grow into what Riviera Nayarit will be in 3 - 5 years.  Smart investors see this as an opportunity to realize substantial capital returns very quickly. Think back to what your home was worth 20-30 years ago and compare that with its present day value.  Riviera Nayarit offers investors a similar return over a much shorter period of time.

MLS listings have shown an average of 30% growth over the past 5 years, however this is quickly increasing as more and more people become interested in Riviera Nayarit.  Once Litibu, the first stage of Riviera Nayarit is close to completion we predict a market correction to occur and for property values to rapidly increase until they compare with the value of property in other competitive markets, such as Puerto Vallarta, Los Cabos, and Cancun.   

Property Tax

Property tax in Mexico is very low in comparison with most parts of the world.  Property taxes start at a rate of 0.0275% of the property value.  Property is valued by the government office of Catastral, and fortunately for investors the Catastral value is usually much less than the market value.

Capital Gains Tax

Capital gains in Mexico are taxed at a rate of 28% for non-residents, which includes most foreign investors.  However many tax breaks and incentives are available and most investors are able reduce their taxes quite significantly, and foreigners that legal reside in Mexico are exempt from capital gains tax if the property qualifies as their principal residence.

Most countries, including the United States have established tax treaties with Mexico, and investors are not taxed in both countries.  For example, an American citizen will not pay taxes in the United States if tax has already been paid in Mexico.

Location

Location is everything, and that is why the Mexican government selected the coast of Nayarit for their biggest project yet.  The area is often described as paradise, and provides sun seekers lush tropical jungles, and some of the most beautiful beaches in Mexico.

Riviera Nayarit is also set to provide all of the amenities, conveniences, and luxuries of any world class destination. Shopping and entertainment centers, theme parks, and hundreds of world class restaurants is just the start, Riviera Nayarit is sure to meet the needs and standards of everyone that expects the very best.

Although Riviera Nayarit is going to provide it all, Puerto Vallarta, the areas largest city is only 30 minutes away and offers visitors a number of reasons to visit.  Puerto Vallarta can best be described as a  pleasant mix of the old and the new, while rustic colonial design paints the landscape all the modern luxuries hide within.

Fine Dining, limitless attractions, shows, performances, art, and culture are just a few of the reasons why it’s nice to be close to Puerto Vallarta. Puerto Vallarta is famous for its night life, and hosts hundreds of bars and clubs that cater to a variety of clientele.   

Demand

There is more demand than ever for high-end living in Mexico. Over 70 million Baby Boomers are just starting to retire, and it is predicted that millions of them will obtain residency, or purchase a holiday home in Mexico.  They are the wealthiest generation the world has even known, they expect the very best, and Riviera Nayarit is perfectly suited to fulfill their every need.

Apart from just the baby Boomers, Riviera Nayarit is also becoming a preferred destination of all visitors that demand quality, and many wealthy echo boomers are also purchasing property.  In addition to a growing interest among European and Asian investors it is very unlikely that supply will meet demand in the next 15 years. Investors should be very confident that prices will continue to rise, and substantial capital growth should be expected.

Economies

The mortgage melt down, de-valued dollar, size of the US debt, social security problems, and an out of control trade balance, are just a few of the reasons US investors are very interested in stronger foreign economies.  In Mexico the economy is very strong, and the future looks very bright.  Tourism, manufacturing, mining, and some of the worlds largest oil fields are just a few of the reasons that make Mexico a sure bet.

Future

The Mexican economy is strong, investing is safe, and the Banderas Bay and Riviera Nayarit provide everything you could ever want in a sunshine destination and more.

Future of Mexico

The October 2006 Sector study, “Where We Stand” profiles the impact of tourism to Mexico’s economy: “The tour and travel industry has the potential to become the most import source of foreign exchange for Mexico. This requires consistent long-term policy measures in marketing, facilitation and in the promotion and encouragement of investment.” Noting that tourism is the key to Mexico’s economic development, Sector declares tourism is also the source for generation of wealth among all socioeconomic groups and an activity, which involves all levels of government.

The significance of tourism to Mexico can be understood as a win/win situation: it’s a lucrative investment for developers and a source of sustainability for the Mexican government and its population. By 2013, it is estimated that Mexico will be the world’s 2nd fastest-growing destination. As of 2005, Mexico claimed 15% of the world tourism market (808 million). Domestically, Mexican tourism grew faster than the world tourism market in 2005, experiencing a 9.1% change or 1.4% over world market tourism growth.

The third largest source of foreign exchange earnings, Mexican tourism has been a major source of compensation for Mexico’s trade deficit for the past decade in allotment of its surpluses toward the balance of payments. More than $11.8 million USD in foreign exchange earnings provided $4.2 billion for the tourism account in the balance of payments Tourism earnings have doubled from 1990 to the present.

From a macro perspective, tourism is 8 percent of Mexico’s GDP. The Mexican government is allotting 50 percent of revenues raised from non-immigrant visitors to be earmarked for the Mexican Tourism Board. Additionally, private sector investors are expected to fuel the economy with $10 billion. Proactive planning is in place to maintain the cultural heritage of Mexico’s different states while also protecting environmental assets and counteracting poverty. In 2005, tourism provided 180,000 jobs. Municipalities affected by tourism revenue have demonstrated healthy economies of scale. Collaborated efforts are reallocating resources to develop new and different destinations beyond the traditionally-recognized tourism centers of Cancun, Cozumel, Acapulco and Mexico City.

Highly-competitive hospitality companies such as Wyndham, InterContinental Hotels Group, Choice Hotels, Marriott International, Accor and Starwood, are jockeying with the popular condo investor market for beach destinations, business centers and other key commercial markets. Investors and owners note the significance of domestic tourism consumption, estimated at 80 percent while from 1993 to 2006, international tourist arrivals have achieved or exceeded 2 million consistently.

Mexico’s market strengths and opportunities are abundant natural and cultural resources, exceptional geography in proximity to major feeder markets and a current government infrastructure of tourism support with a relatively low operating cost. Leisure and business travel abound offering five-star resorts at beach locations to extended-stay, mid-scale hotels in the country’s commercial centers.

Noting the popularity of lifestyle marketing in hospitality, Mexico’s range of vacation venues appeal to the ecologist, the adventure traveler, the historian, artist, sun and surf fan, deep sea fisherman, archaeologist/anthropologist, shopper, family, honeymooner, student, single traveler. Convenient access by car or air travel facilitates today’s demand by Americans in search of value for dollars spent. For the uninitiated, the expanse of Mexico is an amazing palette of topography, cultures, cuisines and lifestyles. A viewer of the recent film, “Frida”, memorializing the life of artist, Frida Kahlo, need only reflect on the tremendous evolution of Mexico City’s metropolis within the last hundred years.

Whether tourist or investor, it is beneficial to understand Mexico’s essence prior to embarking on a trip or business venture. Despite a period of past challenges with international events, natural disasters and economic instability, Mexico’s economic growth rate has returned to historic levels. In 1994, Mexico, the U.S., and Canada negotiated the North American Free Trade Agreement (NAFTA), which was designed to erase trade barriers. The government, enjoying the US$44 billion accrued investment, currently appeals to the international convention market with its incentive of a zero tax charge when foreign countries hold meetings in Mexico.

Looking back or forward, Mexico is positioned for prosperity and abundant growth in tourism. Its civilization is ancient; its resources for ecotourism abound; its infrastructure through is supportive.