By Bob Patenaude
Jim Cramer, the Bombastic, high-energy investment Guru and host of CNBC’s massively successful show “Mad Money”, gave Mexico real estate investment a big boost this week. Cramer told his audience:
“It's not such a bad idea to diversify away from stocks, I think that out of favor real estate in Mexico, that's easily accessible... represents a great buy”.
With as many as 2.5 million investors viewing the show each week, the controversial host wields quite a bit of influence among his viewership and in the marketplace as a whole. His following is so intense that it has created a unique phenomenon in the stock market known as the “Cramer Bounce”, which can be best described “as the sudden overnight appreciation of a stock’s price after it has been recommended by Jim Cramer on his CNBC show”, “Mad Money”.
Following his own advice, Cramer recently announced to his audience that he had already purchased three properties in Mexico within the last few weeks. When asked about hyped headlines about drug violence and turmoil in Mexico, Cramer downplayed those fears, he said, "Mexico is a big country and not every province, every state is involved in the drug trade”, and he added, “it has to be one of the nicest places I've ever been."
How to Own
Jim Cramer aside, Americans and others have been flocking to Mexico and in particular, Los Cabo, on the Baja Peninsula for several decades now. Their quest is to seek out and enjoy the beautiful weather, landscape, water, as well as the culture and leisure activities that abound.
The magic of the Baja lies in its amazing beauty and history. Property ownership is as alluring as the seas that surround it. But the seas and coastlines of Mexico were off limits to property ownership as a result of the revolution of 1914. With the prospects of tourism, an enlightened government under President Luis Echeverria Alvarez, wrote a presidential decree allowing Mexican banks to hold titles to property In Trust for foreigners. It is called a Fideicomiso and it provides for all rights of ownership as any citizen would enjoy.
The term of the Trust is for 50-year periods and is automatically renewable by law. In other words, title to the property may rest in one beneficiary indefinitely-which protects your heirs and your investment. As purchaser of a property, you may use and enjoy, build, rent, will or sell the beneficial rights in the trust anytime, conforming only the general laws of the country established for all persons. Today, U.S. Title insurance is available for properties held in trust. It assures the utmost security of your purchase as it would in the U.S.
www.bajainvestment.com
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