Mexico is About to Create a Mega Resort: Here’s How You Can Profit
Source: http://feedproxy.google.com/~r/ContrarianProfits/~3/V-8Uv4tYjE8/14493Posted on Monday, March 9th, 2009 | In Market Commentary
The Mexican government is investing $1.5 billion in a stretch of Mexican coast. This is a real estate opportunity you could profit from.
Infrastructure improvements are one of the biggest drivers of overseas real estate values. I’m talking airports, roads, bridges, and cruise ship ports. Anything that improves the accessibility of a piece of real estate makes it more desirable.
The development of a viable tourism infrastructure also drives values. Golf courses, hotels, man-made beaches, boutiques, restaurants, and marinas all bring visitors. Visitors spend money, which creates jobs. And jobs in turn heat up real estate values. Of course, it helps if the infrastructure improvements happen in a place with a great climate and a short flight from major affluent population centers.
Just north of Puerto Vallarta, along a stunning stretch of coast know as The Riviera Nayarit, the Mexican government is investing $1.5 billion to improve accessibility and develop tourism infrastructure.
The section of government responsible for this is called the “National Trust Fund for Tourism Development.” Founded in the 1970’s, its task is to create jobs and increase foreign revenue by backing tourism resorts. They think big: These are the guys who set their sights on a coconut plantation as the site for their first major project. Only known by a few local fishermen back then, you’ve probably heard of it today…
Cancun.
Resorts backed by this agency dramatically outperform other beach resorts in terms of visitor numbers, room occupancy—and appreciation in real estate values.
The Riviera Nayarit runs along the Pacific coast north of Puerto Vallarta to San Blas. By 2020, the government expects 14,000 hotel beds and 1 million annual visitors.
Nayarit won’t be a carbon copy of Cancun. Although Cancun was a huge success, its development wiped out any trace of traditional Mexican charm or authenticity. In Nayarit, height restrictions, density regulations, and stricter zoning will help make the resort more sustainable than Cancun.
Many development groups make bold promises about infrastructure and amenities. But this branch of Mexico’s government get it done. They bring the tourists. Jump into their slip stream, buy early-in pre-construction, and kick back while they do the work. Before you know it the piece of Nayarit you bought will be part of a mega and high-end resort. Hopefully you’ll be sitting on a tidy profit.
Source: Mexico is About to Create a Mega Resort: Here’s How You Can Profit
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