Rethinking retirement in
Mexico
Canadians drawn by change that allows freehold
ownership – even in beachfront retirement homes
Canadian Olympic skier turned developer
Cary Mullen at Vivo Resorts, Mexico: “a Canadian can now own Mexican property
outright” | DHZ Media
By Frank O'Brien |
BIV
January 30, 2018
Ron Rishagen was born in Trail 74 years ago, but he will be
spending most of his retirement days near Puerto Escondido on the southwest
coast of Mexico, one of many British Columbians who have discovered the luxury
destination of Vivo Resorts.
“It’s a
winner,” says Rishagen, a retired university
professor who, after checking out numerous options, bought a condominium at
Vivo Resorts last November.
Over the
last decade, the number of Canadians living in Mexico soared from 6,000 to
75,000, according to the Canadian Embassy in Mexico City.
A key reason
is the discovery that Mexico has eased its century-old regulation on foreigners
owning real estate.
Vivo Resorts
is being developed by Calgary-based Cary Mullen, best known as the World Cup
champion and two-time Olympic downhill skier. The resort’s success hinges on
three facts: the 76 acres of land is owned outright by Canadians; it fronts 21
kilometres of pristine oceanfront beach; and prices for the luxury condominiums
and villas are bargain-basement when compared with B.C. waterfront.
In the
retirement destination of Victoria, for example, a waterfront home price
averages $793,000. At Vivo Resorts, ocean-facing condos start at less than
$330,000.
The resort’s
homes can also be rented when not in use, with 70 per cent of net proceeds
going to the owner.
Mullen
discovered that some myths about Mexican land ownership were just that.
For
instance, Mexico’s 100-year-old regulations covering foreign ownership within
50 kilometres of a coastline have been relaxed, though using a “fideicomiso” (bank trust) is still required. Even so,
there’s a lot of old thought and misinformation around what can and can’t be
done, he says.
“When
I first started researching I believed the rumours rather than knowing the
facts,” says Mullen. “I spent thousands of dollars with lawyers in Mexico
learning about the specific steps and process.”
Some of the
rumours Mullen refers to were that developers had to have property held by a
Mexican bank trust and that they had to have Mexican partners.
“I learned
that you could also have the trust be through some international banks such as
HSBC or Scotiabank,” Mullen explains. “I learned the
government had changed that rule [about partners] and a Mexican company can be
owned 100 per cent by a foreigner.
“A Canadian
can now own Mexican property outright,” he says.
The result
has been a residential sales performance that would have most Canadian
developers drooling.
Since Vivo
Resorts opened five years ago near the surfing community of Puerto Escondido,
it has built and sold out seven condominium towers with a total of 100 units,
plus 10 private detached villas. An eighth condo tower is 75 per cent sold. A
ninth tower, Marino Residences, pre-sold half its 28 condos in five weeks last
year.
About 45 per
cent of buyers are from either B.C. or Alberta.
Even though
prices have increased at least 40 per cent since 2012, buyers can purchase a
waterfront condominium at Vivo Resorts for an average of $469,000. One-bedroom
suites in the newest tower start at $327,400 – and this includes all
furnishings, from the giant-screen TV to the dishes and cutlery and maid
service. A new two-level penthouse with three bedrooms and more than 1,850
square feet is priced at less than $800,000.
A luxury
community and fitness centre recently opened at Vivo Resorts as did marketing
for its Botanica condominiums, set back from the
beach, but with larger pools and the lowest prices in the resort.
Vivo Resorts
was named Mexico’s luxury resort of the year in 2016 by U.K.-based Luxury Travel Guide.
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