1. May 2011AMPI: The trusted voice in Mexican Real Estate Real Estate Buyers in Puerto Vallarta & Riviera Nayarita: Past, Present and Future www.vallartanayaritmls.com 1

2. Defining Banderas Bay: AMPI: who are Banderas Bay Real Estate we and what we region Market trends are working on 2007 v. 2010 What do we 7. Bay of AMPIs list of Banderas know today Why is the development opportunites by Baby Boomers Banderas Bay area opportunities that can the next the perfect generation for Banderas shape solution Bay tomorrow? Other What is AMPI demographic working on to Summing up opportunities reach future buyerswww.vallartanayaritmls.co 2

3. What is AMPI Regional?www.vallartanayaritmls.com 3

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5. AMPI Regional covers Banderas Bay from North to Southwww.vallartanayaritmls.com 5

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7. 2007 2010 2011 1bd/small 1 $700,000 - $450,000 - $140,00 - 3bd condo 3bd condo $1m $550,000 2bd $220,000 2bd plus 2 Villas $1.5 - $6 m den condo $300,000 - $400,000 3bd condo $550,000 - $850,000 Product popularity 2bd plus 1bd/ small 2bd plus 3 $450,000 - $150,000 - $350,000 - den condo $550,000 2bd $250,000 den condo $450,000 2011: To sell a property it Lots 4 $150,000 - $1m - $1m to $350,000 Villas $1.5m Villas $1.5m must be (400 - 1200 m2) priced at least 35% 1bd/ small Lots beach 5 $150,000 - $400,000 - below 2008 Lots any flat 2bd $250,00 front $2.5 m levels noteswww.vallartanayaritmls.com 7www.vallartanayaritmls.com

8. 2007 2010 2011 1 75% 35% 35% Market mix In 2010 anything in 2 20% 32% 35% the $600,000 range was the dead 3 14% 30% 27% zone, but they are moving 4 Other 1% Other 3% Other 3% again age Baby avg 45 - 65 45 - 65 55 - 65 Boomerswww.vallartanayaritmls.com 8

9. 77 million Baby Boomers in the USA today Turning 65 daily: 10,000 ( From USA News & Reports Feb 2011) Largest spenders: 8 million Plan to travel: women 86% % of wealth in USA 80% Plan to work to stay active 76% Why are Baby Plan to travel: men 66% Boomers Plan to do charity work 64% important? Plan to visit Mexico 25% Own second homes 25%www.vallartanayaritmls.com

10. Boomers at every life cycle Boomers own 10,000 people 5x more Latin have been the a day will turn American source of 65 daily until property than economic 2030 spikes felt any other age around the group world Baby Boomers: Boomers are In Canada the Boomers have the most total number of changed, they This is a traveled Baby boomers are in a new generation in who will retire: phase of life marathon the history of 9.7 m with new not a sprint the USA prioritieswww.vallartanayaritmls.com 10

11. PRESERVING CAPITAL Low risk investment Preserve capital / wise investments Renting in high numbers Control Property taxes 1 Driving less Control healthcare costs Assisted living for the future Exercise & quality diet Health and Baby Health insurance coverage Access to health care wellness concern: Boomers stay healthy 2 Anti aging products Doctors with USA/Ca training have new priorities Fast growing internet & social Staying active: 50% plan to work media users and polls working or Urban centers growing: show these 3volunteering for social reasons Working from home increase are the 5 Charity work Continued Education areas most Travel is a priority Easy access to home base important to Staying active: them now RV Sales have jumped Warm climate Travel 4 Looking for green design Recycling and environment Going green 5 Looking for smaller units Looking for amenity efficiency www.vallartanayaritmls.comwww.vallartanayaritmls.com 11

12. From: Texas, USA From: Alberta, Canada Purchased: Old Town, $495,000 Purchased: Bucerias, $115,000 What are our What were they looking for when they What were they looking for when they clients telling contacted us? A Beach front condo conacted us? Condos in Bucerias in the low $100,000 usd us? How do they spend their time while they are here? Go to the pool and enjoy the How do they spend their time while they are restaurants here? Golf, Grandkids, fishing, Exactly what gardening, volunteer charity How does the Banderas Bay fit in with their the statistics 5 year plan? To be retired and living How does the Banderas Bay fit in with their 5 here full time year plan? Planning to spend 6 months claim... a year here Is health care a concern? Yes, we found we can use our insurance here so now Is health care a concern? Yes, he has a we cant wait to be here full time heart condition, they felt the climate would be good for him and they investigated the health care system here and felt it was adequatewww.vallartanayaritmls.co 12

13. What are our From: Las Vegas, USA From: Winnipeg, Canada Purchased: South Shore, $550,000 Purchased: Nuevo Vallarta, $250,000 clients telling We were looking for a quiet peaceful Originally looking for a condo, but decided us? on a house with traditional Mexican place to go and relax and get away from the stress of our business back home. architecture Exactly what How does the Banderas Bay fit in with their 5 How does the Banderas Bay fit in with their 5 year plan? Living 1/2 the time in Puerto year plan? They see themselves living in the statistics Vallarta and 1/2 at home in Vegas Puerto Vallarta most of the year (9 )mos) claim... How do they spend their time while they are here? We work on our house. We spend What activities do you enjoy here? They time just hanging out in paradise. We go center their lives around the normal, daily to Fabulous dinners, with some of the best activities of shopping for food in the markets, food and wine. And have a much better enjoying the beach and socializing with new social life in Vallarta than we do at home. friends, both Mexicans and foreigners. What activities do you enjoy here? We enjoy Health care: Being Canadian, they still feel the beautiful outdoors and beach. And all they will rely on their healthcare there, but the local artistic talent. feel the availability and high quality health care services available in Puerto Vallartawww.vallartanayaritmls.com would give them peace of mind living here 13

14. 2 Health and wellness concern: stay 5 healthy Going green Baby 3Staying active: Boomers are Travel 4Staying active: working or telling us volunteering what they want: 1Preserve capital / Can Banderas wise investments Bay deliver? "The further backward you look the further forward you see. - Sir Winston Churchill.www.vallartanayaritmls.com 14

15. Is Mexico a good option? Favorable Inflation & Ex rate: Good news for those The living on a fixed income economy* Healthy from every angle * (2009-2010 shows continued trends)www.vallartanayaritmls.com Source: Focuseconomics 15

16. Is Mexico a good place to invest in property? Infrastructure spendingwww.vallartanayaritmls.com 16

17. 2008* 57% of the citys income came from RE transfer taxes Banderas Bay has a reason to CARE about real estate Highway improvement planned for Mismaloya highway Is Banderas Highway widened in Nuevo Vallarta and extended North Bay a good place to Malecon improvement plan: Phase 1 complete, Final Banderas Bay is investing in plan to extend through the end of Los Muertos beach invest in infrastructure Old town commercial street improvement under property? way Infrastructure Old town: new pier under construction Property taxes are low projects La Cruz Marina project completed Highway to Punta Mita planned Water treatment and desalination plant completed Annual property taxes are in Litibu approx. 0011% of the Underground cabling project planned apraised valuewww.vallartanayaritmls.com 17

18. Is Banderas Bay a good place to invest? The local economy + 3%www.vallartanayaritmls.com 18

19. Is Banderas Bay a good place to invest? The local economy + 2.8%www.vallartanayaritmls.com 19

20. Real estate prices in USA, despite the recent drop are still on a long term uptrend Current plateau may last until 2018 Real estate is a commodity 2018 on: Prices will continue to move upward. The current situation will look much like this The 18 year cycle in Real Estate WW2 Where things stand today in the USA (US land prices tracked since 1900 (adjusted))www.vallartanayaritmls.com 20

21. Medical Care in Mexico costs up to 50% less than in the USA Good local hospitals with english speaking staff Can Increasing acceptance of USA insurance policies Banderas Bay fulll Alternative medicine available / Vitamins and supplements available the lifestyle needs for the Baby Gyms, health clubs, yoga and pilates studios all available Boomers? CA and USA trained doctors available Fresh and organic foods are available / Farmers marketswww.vallartanayaritmls.com Guadalajara nearby for major medical 21

22. Staying active while living in Banderas Bay Is anything missing? Walking communities in the south bay, close dining, cafes and shopping Can Banderas Volunteer charity activities, leagues and clubs Bay fulll the lifestyle Improving internet access makes working and studying from here viable needs for the Baby Water sports, hiking, classes, yoga and local travel options Boomers? Education opportunities for language and artswww.vallartanayaritmls.com 22 24

23. Long term rental properties Green development Commercial opportunties 5 star hotel Centro Banderas Bay Boutique hotels Middle class housing has the opportunity to create the Bed/Breakfast 5 star hotel South Shore ideal retirement option for Event properties Income property Baby Boomers (weddings etc..) if we listen to them Revamp South Medical tourism shore Products we think we could sell Mobile home parks Executive Office suites Assisted living centers Pet friendly propertywww.vallartanayaritmls.com 23

24. Current Vacationers and future home Gen Xrs buyers These are Family vacation destination, economy other market segments Mexican Families strong. Coming from El Bajio, Guadalajara and Mexico City that we are focusing on 2011: 9% of Australia is eligible for Australia / New home refinancing. On-line search Zealand indicates they are looking at Vallarta real estate at a high rate Other nationalities Strong investment climate in Mexico.www.vallartanayaritmls.com 24

25. This is a 20 year relationship... IF we take care of it Green & Prices: Make them Prices responsible SAFETY Medical feel at HOME developement If Banderas Boomers will be Right now From the airport Boomers are This applies on Bay doesnt on fixed incomes medical care here to the electric looking for all levels... being pay attention Hiking up prices costs up to 20% company.. treat responsible taken advantage in reaction will more than it does people well, if development. of by police or a to the Baby leave them in Guadalajara. not they will go taxi driver.. Boomer running for the If price hikes home. Urban planning is makes people feel door... continue based on important. If the unsafe... market... demand Baby This applies to all area loses its Boomers will guests to the charm... Baby find another region Boomers will ...another destination that find another destination fills their needs destination will This is a marathon not a sprintwww.vallartanayaritmls.com 25

26. AMPI is reaching out to Baby Boomers to show them what Banderas Bay has to offer Social Media ...Help us reach New AMPI FLEXMLS system strategy: on line off line We want to website communities... communities be the best ambassadors FlexMLS Allows We can be found We are on line ...So that we can us to share easily now and daily sharing talk to them possible for information easily have a section information and personally in their the Banderas with agents in the planned to outline adding people to offline USA and Canada the benefits of our network. communities. Bay as well as spot retiring in trends in time to Banderas Bay We are seeking We are looking act on them out Baby for more ways to Boomers in their share information on line about what communities... Banderas Bay has to offer retirees.www.vallartanayaritmls.com 26

27. Before you build, consult an AMPI member for the best perspective on real estate sales.AMPI: The trusted voice in Mexican Real Estate www.vallartanayaritmls.com AMPIPV AMPI Vallarta Nayarita @pvampi 27