Mexico Real Estate
Playa de Oro
San Felipe, Baja

(PRWeb) April 30, 2007 San Felipe, Baja, Mexico
The Generation of Baby Boomers who have experienced the most exciting and economically prosperous of all times are starting to look for retirement properties.  They want to take their current home equities and leverage them into SeaSide Resort living with all the relaxation and recreational amenities that they have always dreamed about.  Most need to look towards Mexico for affordable beach homes, easy living, and excellent medical facilities.  Playa de Oro stands ready to partner in this market utilizing their years of experience in SeaSide Residential Resort properties in San Felipe, Baja, Mexico.

A Blessed Generation

 Of all the generations that span the history of mankind, it is the Baby Boomers who have experienced the most exciting and economically prosperous times of all. Babies born immediately after the World War ended witnessed the economy of the country shifting gears – from war mode and war mood to business mode and business mood. As the rest of world became busy in repairing its war-worn cities and fractured economies, businesses in United States enjoyed unprecedented boom time, with overfilled order books that ensured prosperity and wealth to its citizenry for decades to come. Those of the Greatest Generation, who fought the World Wars, delivered an economy that was ripe for explosive growth to their children – indeed, it wouldn’t be inappropriate to call Baby Boomers a blessed generation.

Cut to circa 2006, and this generation (actually, a set of two generations: 1946 to 1955, and 1956 to 1964) is now controlling a major chunk of leadership at all levels in society – whether it is political (Arnold Schwarzenegger, George Bush), cultural (Steven Spielberg, Oprah Winfrey), industrial & business (Bill Gates, Mark Cuban) or academic (Carl Wieman, Ben Bernanke) leadership, the Baby Boomers are at the forefront of them all. Those away from the limelight too are doing quite well. The demographic profile of Baby Boomers – prepared by the Mature Market Institute arm of the Metlife Insurance Company, New York – makes interesting reading. According to the report, about 78 million, or roughly 27.7% of the total US population, comprises Baby Boomers, living in 45.8 million households. Their estimated spending power: a whopping $2.1 trillion. 60% of these households comprise married couples with one or more children. The average household income of a Baby Boomer is roughly $75,700, as compared to the overall US average of $60,500. Clearly, it is the Baby Boomers who are in the hot seat at the moment, moving and shaking today’s economy according to their whims and fancies and tastes and comforts.

Real Estate Investments by BB – General Trends 

Babies who were born in 1946 have touched sixty this year. Babies who were born in the 1955 to 1964 band aren’t getting any younger. It is obvious that people in the age range of forty to sixty are either already retired, or the plan for retirement is now beginning to weigh heavily on their mind. Possessing a home that one calls one’s own is now topmost in their wish list. This is evidenced by the statistics that the US Census Bureau has thrown up: almost 69% of the Baby Boomers are home owners; while a dominant 96% consider owning a home as a sound financial investment.

 A key market survey conducted by Harris Interactive on behalf of the National Association of Realtors gives solid insight into the present thinking of the Baby Boomer generation. Almost 25% of the baby boomers have invested in multiple properties, of which 7% are proud owners of vacation homes or seasonally occupied properties. In fact, 57% of all vacation and seasonal homes have already been cornered by this generation; and more importantly, 13% of this 57% have multiple vacation homes in their name! This points to a very significant trend in the San Felipe business over the last few years, and reveals the mindset of the forty-plus at the moment: post retirement, these people are planning to head towards vacation homes, and make the vacation home their primary abode.

This survey also came up with a few other interesting nuggets of information. For instance, it showed that the average Baby Boomer expects to retire and stop working by the time they reach 65. This means that in another five years from now, the first waves of this generation will start moving towards the vacation homes that they have so craved all their life. Almost 60% of the survey respondents want their vacation homes to be away from an urban setting, and almost 50% said that they preferred living in an age-restricted community.  Many are planning on selling their current homes that have greatly appreciated in value.  For some this equity is a large part of their retirement planning.  The trick is to find a dream home that will allow them to utilize this equity as part of their living expenses.

Now let’s take a look at yet another survey that focused on resorts and resort ownership patterns. The American Resort Development Association (ARDA) conducted this survey in 2006 to understand the demographics of the buyers who are going for timeshare resorts. What it shows once again underlines the same pattern: about 23% of the people who bought timeshare resorts in the year 2005 were in their forties, about 28% are in their fifties, and a whopping 30% are in their sixties. The message seems to be clear – the baby boomers are restless, they are not going to be in their present homes forever and are seeking a change of both home and lifestyle.

 And where else – but away from the hurly burly and humdrum of city life?

Heading for sunnier climes, not far from home 

After spending a lifetime chasing money in crowded, polluted, and stuffy offices and factory floors in busy cities, the Baby Boomer generation longs for life that is totally different. A deeper analysis of the numbers thrown up by all the surveys quoted above reveals that people in the age group from forty to sixty have made up their mind – well, at least a majority of them – to shift away from their present home which has so well served its purpose and utility. But it is time now, folks, to move on. To enjoy the goodies that this world has to offer. To be in the lap of Mother Nature, and yet enjoy the material comforts that money in the bank can buy. 

This perception has driven the Baby Boomers towards climes that are relaxing and soothing to the body and the mind. México has long been an attractive destination, with its exotic locales, sunny weather, intriguing history, and familiar culture, plus of course its proximity to home country, which is a bonus. The NAFTA agreement between Canada, the USA and México (initiated by yet another Baby Boomer, Bill Clinton), signed in 1994, opened up the possibility of México becoming a favorite place to retire. Today, more than a million Americans have chosen México as their home; indeed it is the largest group of Americans residing anywhere on the planet outside the U.S. And a majority of these residents and investors are Baby Boomers.

Fortuitous circumstances have paved the way for this gung-ho generation to buy properties in México. FONATUR, México’s nodal agency responsible for foreign investment in coastal real estate, has worked assiduously to woo the Baby Boomer to its pristine and warm beaches. (That Fonatur has succeeded is evident by the swelling foreign exchange reserves of the Mexican government – from a state of near bankruptcy before NAFTA, it is tipped to touch $20 billion by the end of fiscal 2006. Quite a lot of this money is coming from the accounts of Baby Boomers.) U.S. Banks are more than willing to offer loans for home mortgages in México. The National Association of Realtors (NAR) and the Association Mexicana de Profesionales Immobiliarios (AMPI) - their Mexican counterpart – have formed a joint venture that ensures standardized and transparent professional practices. The National Association of Home Builders (NAHB) is organizing events that educate builders and property developers on how to go about acquiring land and build homes in México. After sniffing opportunity in the air, there has been no turning back for builders and developers.

Residential Resort Communities

Savvy developers have imported the technology of “Residential Resort Lifestyles” – a true-blue American concept – into the country, with the result that for Baby Boomers, a home in a resort in México is truly a home away from home. These residential resorts are typically located by the seaside with all amenities that one can imagine – swimming pools, a community center, recreation hall, easy commuting distance to a golf course, theater, bar and restaurants, pizza, shopping mall, launderettes, and wi-fi internet service. With the ocean before them, water sports are of course emphasized. These facilities ensure that a Residential Resort home owner need not really step out too far from their door for socializing, relaxation and enjoyment.

Homes in these Residential Resorts are usually custom-designed and well constructed. While planning the home design, architects and building contractors are required to follow strict guidelines that adhere to the best U.S. standards of construction, including height regulations thereby respecting their neighbor’s ocean and mountain views.  People who may have spent their life in cramped conditions, or perhaps had to adjust with rented homes while working in cities, get the chance to let their imagination soar, and bring to reality their dreams about the seaside home they have always wanted. 

Financing Homes in Mexico

For those that want to stretch their equity, there are now options for USA financing of homes in Mexico.  Baby Boomers can sell their current homes and place only a portion of the proceeds into their home in Mexico  as a down payment   Monthly payments will often be much less than their current payment on their “Raised the Children In" home. 

When choosing vacation properties for the intention of making it a retirement home, however, the results are a bit surprising.  One might assume that many people will choose golf course locations or beach side resorts.  While this is still a popular option, many Baby Boomers are choosing their property based on the availability of quality health care.  The Baby Boomers who participated in various studies cited that rural areas where they could get affordable health care quickly was more important than the proximity to their favorite past time.  However, as this generation throughout their lives has become accustomed to, they want it all.  In Mexico, they get it all. Access to affordable high quality medical facilities as well as the beach lifestyle that they have been looking for.  Many are choosing to settle in Residential Resort Communities in Mexico that are only a few hours drive from the USA for that additional peace of mind.

Ownership & Title Insurance 

Ownership of residential land in México for non-nationals is through a vehicle known as “Fideicomiso”. The Fideicomiso is akin to an USA Living Trust, whose basis is the Trust system of ownership. It is through a Fideicomiso that Baby Boomers have been acquiring absolute ownership rights to property in Mexico .  Baby Boomers need to make sure that ownership is insured, as part of the sales agreement, by a professional title insurance company that takes into account all the issues and eventualities that could possibly and conceivably arise. This protects the nest that the Baby Boomer is so assiduously building for themselves, post-retirement.

Final Word

It has begun to happen – prospective retirees  are buying their dream houses along the serene and peaceful coasts of México. While waiting for the big day when they actually retire, these Baby Boomers snatch long weekends from their hectic schedule and drive to or hop on to the next flight to their SeaSide vacation home. The moments spent at the waterfront are so relaxing and rejuvenating!

So, Whether you are looking for Recreation, Retirement, Investment, or just an Escape, discover your options with Playa de Oro .
AND HURRY!!!

Playa de Oro offers ownership of prime Ocean Beach Mexico real estate and Mexican Seaside Property in San Felipe, Baja, Mexico, with USA title insurance.