Interview with Mexico Certified Realtor: Thomas Lloyd
Thomas is an active real estate Broker in Quintana Roo, Mexico which includes such areas as Cancun, Riviera Maya, Playa del Carmen, Tulum, Cozumel and other regional areas. Thomas is a native of Indiana, a Purdue University graduate, entrepreneur, and has been living in Mexico since 1995.
Today we welcome Thomas Lloyd, who owns www.TOPmexicorealestate.com , a new web page and blog of tips & “how to” regarding Mexico Real Estate. Thank you Thomas, for offering to share your experiences on living and doing business in Mexico. My first question is what makes real estate in Quintana Roo a good investment?
This question deserves an entire chapter and even an entire book for a response. But, I will try to answer in two or three sentences. Mexico is an emerging market versus developed markets found in the USA, Canada, and/or various countries/markets of Europe. In mature markets it is becoming more and more difficult to find opportunities with strong returns. In emerging markets, you will have a better probability of finding such opportunities but the risks may be higher. Surrounding yourself with a good, knowledgeable team on the ground will help you greatly in managing such risks. Now within Mexico, there are various regions that have different scales of opportunities, one of those being Quintana Roo. A unique aspect of this region would logically be its location. This state is located on the eastern part of Mexico on the shores of the Mexican Caribbean. Approximately one hour from South Florida, about 2 hours from Texas, 4 hours from Chicago, 5-8 hours from Canada, 9 hours from UK, etc. It is the second busiest airport in Mexico after Mexico City, and it is Mexico`s number one tourist destination. Basically, this market is fueled by tourism, and the tourism is diversified from several originating markets: the United States, Canada, and the European market. These tourists and visitors creates the demand side opportunities.
What specific real estate markets in Quintana Roo have the best opportunities for appreciation?
Waterfront investments have had many opportunities. Preconstruction projects have had some incredible returns if administered correctly. Tulum has been buzzing for about 2 years with much speculation of a new international airport, along with their existing beautiful turquoise beaches. Playa del Carmen developers have narrowed the gap between existing rooms versus tourist visitor demand, but tourist visitors are projected to expand very strongly for the next 5 years. And finally, there are some interesting new Real Estate projects that have discovered some niches in the markets which are quite interesting for review.
Do you think the real estate market in Cancun has peaked or are there still opportunities for growth?
The population of Cancun is still growing at impressive rates. The city, state and federal governments have some interesting projects relating to industries other than tourism that has continued the creation of new jobs and opportunities. I am surprised at the amount of Mexican nationals that have been moving and purchasing on the residential inventories. On the luxury and international market side, Cancun has introduced some new gated communities with marinas and golf courses. Deep draft marinas with capacity for yachts over 100 feet are an interesting and developing market. These developments are opening up new markets of end user prospect client types. In the past 12 months approximately 4 new golf courses have been introduced or are in the process of being introduced to this region. Boaters in the southern Florida region for example, will now have the option to cruise down to the Mexican Caribbean to explore and play in the Yucatan peninsula.
Have you seen any signs of slowdown of real estate in the Quintana Roo region due to the recent financial crisis in the US?
Yes, over the past 12 months the quantity of Americans purchasing has been put on hold or reduced. The Canadians on the other hand have spurted upward, taking advantage of the strong Canadian Dollar. The amount of direct flights from European airports have been increasing over the past 3 years and a stronger euro and pound have also created increased demands.
Can you describe some of the advantages or disadvantages of investing in the Mexican real estate market versus the US real estate market?
As mentioned above, a mature market versus a new emerging market are some of the advantages that I can see as being advantageous. The cost of every day living is another factor that creates interest for buyers as well. Whether you are investing for yourself, or advising a client, Mexico with its natural beauty, its easy travel access, and lower costs per square foot on waterfront properties and other real estate, are a few of the main factors that should require investors to place Mexico as an top option for comparison and analysis.
Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. Active broker and current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company`s web site www.TOPmexicorealestate.com
Popularity: 1% [?]