propiedad-fraccionada-de-un-yate

Fractional Yacht ownership

Becoming a yacht owner is not easily achieved since, beside the expense of purchasing the craft, there are high costs arising from operating and maintaining it. Therefore, it is no coincidence that the concept of shared or fractional ownership is gaining ground in the luxury craft segment. Fractional yacht ownership is an intelligent investment if what you are looking for is to reduce costs and become a worry-free yacht owner. It is also attractive for people who want to try out the nautical world but still aren’t sure they’ll like it. 

How does it work? 

Through fractional ownership, each of the members has the experience of being a sole owner without being burdened by all the costs. In the case of FYI Yachts, a maximum of nine members purchase a fractional part—11%—of the actual yacht value; in other words, they are co-owners in equal portions. 

Every member can freely use the vessel for 20 days and 6 weekends a year. He must only pay an annual fee, which includes management and operation of the craft, periodic preventative and corrective maintenance as needed, and periodic remodeling in order to keep the yacht in top condition. It also includes food provisions and full use of the water toys, as well as a trained, certified crew providing impeccable, personalized service on board. 

The contract has a six-year duration. All payments to be made are clearly stipulated from the beginning, so there are no unexpected expenses or add-ons. This gives peace-of-mind to the owners, who will only have to worry about enjoying the yacht for the time they are allotted.

In a fractional ownership acquisition, there are no restrictions insofar as an owner’s nationality is concerned.  The only limitations associated with the yacht are those established by law regarding navigationfor example, the maximum number of persons on board. 

If a member wants to sell his ownership portion before the contract has terminated, he will have no problem doing so, and at the price he decides to accept. In that case, the new owner may only make use of the yacht during the remaining time stipulated in the original owner’s contract. 

Without a doubt, there are many advantages associated with shared or fractional ownership of a luxury craft; primarily, it offers more people the opportunity to become part of the exclusive lifestyle that is inherent to the yachting world. 

PRE-CONTRACT: THE PRIMARY CONTRACT OR THE PROMISE TO CONTRACT

In the real estate market, it is common to hold pre-contracts, also called primary contracts or promises to contract. This is due to various circumstances, among them: the flow of capital, the temporality of the stay of the parties, or remodeling and adjustments agreements to the property so that it is in optimal conditions and out of any fault in its delivery, first instance at least.

It is very important to determine the nature and effect of these contracts, as many people believe that by entering into a “promise of sale”, “a promise of assignment of rights” or a “promise of trust”, they acquire the rights owned by the “buyer”, “transferee” or “the” trustee “; being that, in the event that the contract was bilateral, the obligations and rights acquired by both parties for the celebration thereof are future but well-determined.

It should be noted that both parties must be willing, the subject matter of the future contract must be lawful and possible, and the price must be certain and determinable. It must be borne in mind that the natural consequence of signing the pre-contract is entering into the promised contract and not the sale, trust or assignment of rights in and of itself.

All investors, whether national or foreign, must be aware of their actual contractual position; that is, the improvement of the main contract should not be confused with the will of the parties to hold a specifically nominated contract in a certain and determined future, even when the pre-contract contains the elements of the main contract.

In the particular case of promises of assignments of rights, it must be specified that only what one actually possesses can be assigned. In that sense, we must refer to a real right or to a contractual position. A real right is that which weighs on a specific property and the ownership that is held over it, while the contractual position may refer to rights to be acquired over it. This is where the kind of contract entered into between the parties becomes relevant.

The above being said, the legal certainty generated by the signing of pre-contracts is not aimed at real rights, as it is rather limited to the certainty of signing a specific contract in a certain and determined future. It is of utmost relevance to clarify this to the investor, since, as law professionals, lawyers and notaries, or commercial intermediaries and brokers, must be obliged to legal certainty and law compliance, as well as to correct advice and information. Thus, the invitation to keep investment within the State is reinforced, thus avoiding capital outflow.

We must be inclusive and generate certainty with information, investment with legal security, movement in the real estate market with the correct advice; let’s take investment by the hand, so that the closing process is always safe, through the correct channels and with the greater information and security that the law generates.

Gurus Revista Living Terra

Edgar Villajuana Real Estate Marketing Guru

Por: Edgar Villajuana | Real Estate Marketing Guru

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What are the requisites for a marketing strategy or campaign to be successful?

The success of any marketing campaign depends on several factors. Even if the Four Ps of Marketing were introduced back in the 70s, the concepts are still very valid today, although you need to adapt them to the contemporary technological reality. Therefore, it is critically necessary to take into account strategies for Product, Price, Placement and Promotion.

When it comes to Product, it is fundamental to understand the costumer very well, to know what’s the target market, who is the decision maker and what’s the use the product will have. In our case, if there has been one thing that allowed us to achieve our goals, it was product design particularly, since this adapted completely to market needs. First, we profiled the intended sector: it was clear to us that women were the purchase decision makers. From there, we carefully analyzed the age group of these women and understood their socioeconomic profile, studying the costs and the return on investment that would fit our product and the needs of the market. Once our target was marked off, we designed the best possible product for this type of costumer and the marketing strategy that would fit best.

After visualizing the product and the costumer, we then organized the marketing and sales team. We were fortunate enough to find both experienced people and young people with fresh ideas, who allowed us to reach these markets, as they were not necessarily inside the boxes we are used to think in.

Thus, the marketing campaign was designed and Placement was carefully selected, in this case meaning the product promotion mediums. PR was done through organizing promotional events, in order to position our product in the minds of people and to create credibility. Finally, the pricing strategy was developed, looking for the best combination of enjoyment and capital gain suitable for the market.

All these elements put together allowed us to deliver a successful product that could land a preferential position among the Cancun’s population that fit the profile. It should suffice to say that back then, our marketing expectations were exceeded by far, and today those projects have resulted in capital gain beyond anything we projected. We delivered, and satisfied customers stated so and told about it, turning into mouthpieces for us.

2. Where is it better to focus efforts and allocate resources: offline marketing, or online marketing and social media?

Back when we started some 15 years ago, digital media was not widely used at all. The decision to put online our first website took us about a year. Nowadays, approximately 80% of the customer contact happens online somehow, mainly through mobile devices. It was so, as the market grew and we released further projects, that we realized the growing relevance of online marketing for real estate.

Without a doubt, digital media today has proven to be very effective in sparking the interest of people, as well as to generate first contacts and then deliver our message to them. The use of browsers and social media are now key elements for campaigns to achieve that. However, marketing strategies will still depend to a great extent on the product itself. Marketing strategies will be different for local buyers and for tourists; it will be different if trying to reach people looking for their first home, or if focused on those who are after investment opportunities or rental options. There is no magic formula; it depends on the product. Still, I have to say that a combination of traditional and digital media is definitely important, since we are now facing a marketing revolution and we do not know how far it will go. That is why it is important that both the format and the content of the message, as well as the call to action, are adapted to each medium and, of course, to transform ourselves according to technological progress.

3. What is the role of emotions in a successful real estate campaign?

Fortunately, human beings are still completely emotional. So, in order to spark interest in people, images, sounds, combinations of colors, and the message itself, are immensely relevant.

Now, the product should go beyond the mere emotional marketing strategy; that is to say, it must deliver exactly as it promises. Otherwise, it would be deceitful. We must remember that whenever someone buys real estate property, they are probably making the greater and most important buying decision in their life. Some people will only go through it once in their lifetime, and we must hold respect towards what a transaction of such nature means for the buyer.

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CORREDOR CANCÚN - TULUM Revista Living Terra

Cancun – Tulum corridor a real estate overview

3From a bird´s eye view, we can outline four sectors facing the Caribbean Sea:

SOUTH

In Grand Costa Maya, still in the first stages of real estate development, interesting points could emerge in the area of Bacalar, in Mahahual (Costa Maya’s port), and to a certain extent, in the surrounding area of Chetumal Bay.

CENTER

Sian Ka’an Biosphere Reserve and its powerful status in the preservation of wild life rule the landscape here. From the perspective of construction developments, there’s nothing left to do. Moreover, we should further support Amigos de Sian Ka’an, an organization that has strived for the preservation of the area since its inception.

NORTH

The north side begins in Cancun, the best possible example of how urban planning and proper allocation of resources can go a long way. Even when there’s plenty of room for improvement here, there are more pros than cons. From the point of view of real estate, this city has generated amazing capital gain on urban land hardly ever matched in the Mexican market, adding value to areas that in other cities would have taken five more times for them to achieve the same price per square meter as Cancun right now.

Three developments were game-changers for Cancun in the last decade: Puerto Cancun (which, by the way, had been planned since Cancun was founded) and Playa Mujeres, in the tourist front; and Cumbres in the urban residential side of things.

The tourist area in Cancun has been successful in keeping up with the high quality of its hotels and businesses, save a few exceptions, but now Puerto Cancun will cover new ground with its premium residential land, vertical apartment and hotel developments, and business (or mix use) areas, which are currently in vogue when it comes to providing any city with a cosmopolitan vibe. On the other hand, Playa Mujeres is located on the north side of the city, bordering with the municipality of Isla Mujeres, home of this successful project that is sure to continue giving much to talk about.

Urban development in the city changed its course towards Puerto Cancun with the real estate development in the vicinity of Bonampak avenue, which together with Tajamar (previously Malecon Cancun) is contributing with apartment and business projects that have practically become the new core of Cancun’s activity. Even when residential development reached an impasse as Fonatur ran out of land, Cumbres managed to raise a wave of real estate projects that is still going strong all along Huayacan avenue, being Cumbres now the head of the area known as Poligono Sur.

Playa del Carmen has a story of its own. There have been times in the last 15 years when growth has reached over 10% annually. Playacar was certainly influential for the city to pick up, but as of today there are also new elements at play: various social interest housing projects emerged as a result of the requirements of such an explosive growth, some of them of exceptional quality even if lacking in tourist and mid- and high-level real estate appeal. Gentrification has slowly unfolded in the city’s downtown, moving towards urban developments that bring together businesses on the ground floor and apartments in upper floors, some of them top-quality. Nonetheless, given that the city’s growth was rather spontaneous, well-planned sectors covering the demand of B and even A segments were still needed; and it is there that Mayakoba entered as a huge success in planning, with Ciudad Mayakoba. This brings to the market an offer of real estate products ranging from mid-level housing, plots of land with services and utilities where to build single-family homes (such as Senderos), to apartment buildings in a scale of prices that will have to be monitored and controlled to ensure proper capturing. Projects of this kind alleviate the pressure on the city’s downtown and introduce interesting alternatives to the market. We congratulate municipal authorities for supporting these initiatives.

Around Playa del Carmen, particularly in the Punta Maroma area, Amikoo’s arrival has totally changed the meaning of urban planning for the Punta Morelos-Playa del Carmen corridor. In this area, there is sufficient land for the development of several real estate projects meant to present a mosaic of local and nation-wide real estate investment options, offering second-home and business products, among others. We are certainly about to witness great competition in comprehensive real estate projects.

To the south of Playa del Carmen, and as a closing end to Riviera Maya, there is Tulum. Archeological wealth has always been the main focus here, but its beach front is what has made of Tulum THE hippie chic destination (this last expression meaning the most sophisticated in alternative trends). The real estate reservoir of this town is huge, and its characteristics and restrictions in use of land so particular, that they must be thoroughly analyzed only by competent specialists in the environmental and urban planning fields. It is, however and without a doubt, the greatest opportunity available in Riviera Maya. It is important to consider the use of Title Insurances, due to the very diverse source of origin of the land and the different operations that have taken place in some sectors.

NORTH END

Finally, we reach the north end of Quintana Roo, centered around Holbox Island. Due to environmental factors and its limited urban infrastructure, real estate development is quite low and will remain restricted. We can talk about a few tourism-oriented projects focusing on hospitality soon to emerge in the town area, but in any case this isn’t a site to keep an eye on in terms of real estate.

In this brief exploration from south to the north end, we have come to see the north area as the one with the best and most important options for investment, development, and growing the available real estate offer. Cancun and Riviera Maya are two of the best choices for investment in Mexico, with great urban and environmental diversity, as well as several players creating competition, thus resulting in an offer that is rich and of ever-growing quality.

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Fibra-Uno-Revista-Living-Terra

Fibra Uno back on the market

FIBRA UNO after six years of expansion, Fibra Uno is back on the market and promises further development of the real estate sector.  REITs (Real Estate Investment Trusts), based on the most sophisticated and profitable investment model for shareholding or acquiring real estate in Mexico, have boomed in the last six years, becoming an important vehicle for the injection of capital into real estate. Opening way for investment, and so contributing to growth in the industry, REITs are very attractive to both foreign and domestic investors who participate in financing construction and building urban development portfolios. Out of the 11 trusts currently in the market, there is one standing out for being the first, the largest in the country, and because of its positive evolution in recent years: Fibra Uno.

Six years in expansion

 

Acquiring, managing, selling and developing real estate for commercial use is what Fibra Uno (FUNO) has excelled at since its establishment in 2011. In its first edition, and with an opening portfolio of 15 properties and the Right of Lease on another one (totaling 16 properties), FUNO raised an aggregate gross of approximately 3.58 billion MXN.

Specializing in the hospitality, industrial, and commercial sectors,FIBRA is the first and largest REIT in Mexico, pioneering in subscribing shares in the Mexican Stock Exchange (BMV). From its inception, it has proven its standing with solid numbers and a firmly based philosophy, same that has taken its products —consisting in portfolios and stand-alone properties at various stages of development and leasing— to a privileged status in the real estate business cycle.

And so, having taken ahold of excellent opportunities for real estate investment, this giant has managed to stay a market leader. In the first half of the last year, FUNO closed with 521 properties, adding up to

82.56 million rentable square feet (7.67 million m2). Also, profits grew 103.5% compared to the same period the previous year. Torre Mayor can be counted among its main investments, as well as its most ambitious project, Mitikah, for which 20 billion MXN will be allocated.

The real estate giant returns

Few months ago, Fibra Uno raised 12.8 billion MXN after issuing 419.75 million Trust Certificates with value of 30.50 MXN each, an offer that raised 3.5 times demand. These resources will be allocated to complete the payments for the Turbo portfolio (18 properties with value adding up to 14.3 billion MXN), as well as for the Apolo II and Frimax portfolios, representing an investment of 17 billion MXN and 14 properties. On the other hand, the firm has been authorized to place debt for up to 55 billion MXN in the next five-year period.

This issuance of capital protected by its comprehensive financing program in the Mexican Stock Exchange will improve its capacity for continuously returning to the market and finding resources whenever needed, without having to place big debt or keeping that capital in treasury, where it wouldn’t generate perceptible benefit for investors.

These comprehensive programs for REITs have only been recently approved, but have already found positive reception: Terrafina were the first in using them, followed by Fibra Monterrey, and now Fibra Uno, raising enthusiastic expectation in many investors.

Adding to the overall beneficial nature of these financial instruments, being a win in two ways, the rent of the real estate and the price of shares, their proven efficient evolution and positive expectation for the future make of REITs —and Fibra Uno, particularly— a highly inviting option for both foreign and domestic investors, including institutions such as Retirement Funds Administrators.

SOURCES:

www.eleconomista.com

www.expansion.mx

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Editorial Letter

W

elcome to the first number of LivingTerra, a publication with the mission of establishing itself as a reliable source of information for investors, both national and foreign, interested in the Mexican Caribbean real estate market.

Undeniably, Quintana Roo has gained solid ground as the main destination for tourists in Mexico, mostly concentrating in Cancun and Riviera Maya, a trend that is expected to continue throughout coming years. This has naturally brought about a significant growth in real estate demand and supply for the area. A very interesting array of options for investment is attracting big corporations seeking to develop hotel and tourist complexes, as well as individuals and families who dream of acquiring property by the sea, either for living, holidays, or rental. What is certain is that this destination has become one the most captivating markets for investment, as it has something to offer for every style, need and budget.

With all of this in mind, our main goal with LivingTerra is to provide an insightful read on the rhythm of the real estate market in the Mexican Caribbean; and so we have brought together the very valuable contributions of various experts in the different areas pertaining real estate, whose rich and specialized knowledge in this destination and its possibilities for urban development will skillfully illustrate the landscape for the benefit of investors, so that they can make well-informed decisions and obtain higher returns.

Without further ado, we welcome you to this number of our magazine, in the hope that in its pages and through the words of our guest experts you will find accurate and timely information, for you to discover that valuable investment you’re after.

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Industria-sólida-Revista-Living-Terra

Invest in the country´s most solid industry

O

ver 647.9 nautical miles of turquoise sea and white sand are the landscape framing this highly alluring biodiversity offer for global tourism. Cancun, Puerto Morelos, Playa del Carmen, Cozumel, Isla Mujeres, Tulum and Bacalar are some of the stars of this destination. All of them with a well-established offer of approximately 100,000 three and five stars hotel rooms, and even boutique hotels for high-end tourism, with annual average lodging of 85% in the last five years. This points to the fact that the new offer, currently in construction and development stages (over 18,000 new rooms in the coming 24 months), will serve to fulfill the growing demand for this paradisal land.

The population in the Mexican Caribbean is of 1,600,000, growing 10% annually. It is worth mentioning that the average growth is below 3%. This demographic growth represents a demand of 50 thousand new homes per year, and so, this is a great market for housing construction companies to focus on.

The demographic growth in the mexican caribbean annually requires 50 thousand new homes

The annual economic benefit generated, strengthening the community, industry and trades, repeats itself and grows continually thanks to the area’s natural attractions, extant infrastructure and superstructure, debt and direct capital investment in the construction and the development of new hotels, theme parks, recreational sites, marinas and golf courses. Due to all this, the expected total annual economic benefit for the next five years will be of over 5 billion USD.

In order to invest here, the services of registered, financial, and secured title real estate agencies (legally established according to governing authorities) are required, as these agencies are able to provide advice on opportunities, laws and regulations, as well as on the highest value and/or most profitable market shares within the chosen area.

Investing in the Mexican Caribbean, besides being highly profitable financially, is an alternative providing the chance to enjoy and benefit from living in an environment close to a natural paradise, able to trigger in oneself a change of priorities that will align economic and financial interests with activities that improve the quality of our lives and health, necessary as that is in our modern societies to alleviate the strains resulting from environmental pollution and stress.

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