Bargains Galore!–25% Discount on Everything in Puerto Vallarta, Mexico

By: Jim Scherrer

Well, it appears as though the effects of the mortgage crisis in the US which began in March, 2008 followed by the collapse of the stock market in October, 2008 are finally being felt in Puerto Vallarta. Thanks to the strong Canadian Dollar, tourist expenditures in Vallarta for goods and services, including retirement real estate, held up fairly well for most of 2008. However, during the September/October timeframe, the Canadian Dollar plunged by more than 20%, thus reducing the Canadian purchasing power accordingly. Consequently, both the Americans and Canadians are now hesitant to aggressively invest in anything, especially foreign retirement properties.

The airplanes and cruise boats packed with tourists continue to arrive daily in PV; however the visitors are much more thrifty and prudent with their purchases than they were a year ago. Many of the restaurateurs and shop owners are claiming that sales are down from last year by as much as 35%. The construction of new condominium projects has also noticeably decreased as new sales slow to a trickle.

During the past ten years, Vallarta has literally been a boom town with explosive growth and new construction everywhere. Obviously, many of the developers and entrepreneurs failed to see the oncoming global financial crisis and committed to many long term construction projects resulting in a glut of more than 7,000 new condominiums now on the market.

Finally, with the supply of goods and services, including retirement properties, currently exceeding demand, we are now witnessing a true buyer’s market in Vallarta. Even though list prices for real estate have not dropped noticeably, the developers and sellers are much more apt to negotiate than they were a year ago. The same is true for store merchants and other vendors in the area.

Okay, now that we have a better understanding of how the economy in the US and Canada have affected business in Vallarta, we should have a better appreciation for the North American bargaining position in this beautiful resort destination. Therefore, let’s take it a step further. With the exception of real estate, most all other goods and services in Puerto Vallarta are sold on a Peso basis and therefore we must consider the monetary exchange rate.

The Mexican Peso has held steady with the US Dollar for more than ten years at about 10.8 Pesos per US Dollar. It wasn’t until early in October, 2008 when the Peso precipitously devalued to about 13.5 Pesos per Dollar resulting in a 25% increase in the value or purchasing power of the US Dollar relative to the Mexican Peso.

For those of us fortunate enough to still be holding a few US Dollars, almost all goods and services in Mexico just went on sale! For example, we recently purchased a high-end brand name washer/dryer set, normally priced at $1,300 US, for $1,015 US. Most all grocery and food products, clothing, hardware, and electronics manufactured in Mexico, gasoline, electricity, and other native commodities are also 25% less expensive to those of us holding US Dollars.

Through inflation over time, the costs of these Mexican products will eventually rise until they return to where they were only a few months ago. The one category where costs will rise much more slowly is that of labor. Almost every worker in Mexico just took a 25% reduction in wages relative to the US Dollar! That includes all maids, gardeners, restaurant and store employees, taxi drivers, doctors, architects, engineers, etc. It will probably require several years for the Mexican labor rates to be equivalent to where they were only six months ago.

One very important labor group is that of the construction workers which represents a significant portion of the total cost of retirement residences, all priced in US Dollars. Add their 25% cut in pay to the cost of Mexican concrete and other native materials which also dropped by 25% and you can imagine how that will affect the completion costs of the thousands of condos currently under construction!

Now, with the demand for goods and services reduced relative to their supply and the US Dollar being 25% stronger, you can see the benefit of shopping in Paradise at this very moment; the time for buying your retirement dream could never be better!

As Billy Mays, the famous TV pitchman would say, “But wait, there’s more”! Yes, aside from the 25% savings associated with the Peso devaluation and an increase in willingness of the local vendors to negotiate lower prices (caused by the reduction in tourist consumption brought on by the uncertain US economy and the devaluation of the Canadian Dollar), effective in June, 2008, you now receive a rebate for the 15% IVA tax that you pay on many of your purchases while visiting Mexico.

The 15% IVA or Value Added Tax (VAT) is returned to foreign tourists who can prove they have spent a minimum of 1,200 Pesos (approximately $90 US Dollars) on Mexican territory and who are returning home by sea or air. Tourists now have the right to receive up to 50% of the net rebate, an amount not to exceed 10,000 Pesos (approximately $750.00 US Dollars), in the form of cash; the remaining 50% will be refunded via electronic funds transfer within a period of 40 days.

In conclusion, after being exposed to the past six months of economic frustrations, you deserve to escape from the prevailing gloom and doom. If you have ever considered traveling to or retiring in Paradise, now is the time and Puerto Vallarta is the place! You will find many great values on everything this season; values that have not been seen for almost a decade and may not be available again in the near future. As Billy would say, “Why wait, pick up the phone” and call your travel agent. The weather is guaranteed to be perfect during the months of November through May, the scenery of the Pacific Ocean, the sandy white beaches, and the Sierra Madres is world class, the margaritas are ice cold, and the Mexican hospitality is second to none. So, come on down; you’ll find bargains galore while enjoying the time of your life on the Mexican Riviera!

World Class Fire Opals Mined Near Puerto Vallarta, Mexico

We all know that Puerto Vallarta, Mexico is a world famous resort destination and retirement haven. We also know that just about all of the Mexican Riviera cruise ships make Vallarta a normal port of entry providing the visitors with numerous fun and exciting things to do, sights to be seen, side tours to be taken, beautiful beaches to enjoy, etc., but few tourists ever really get to know the area, customs, and local history.

Puerto Vallarta is located in the state of Jalisco; the third largest state in Mexico with the Capital of Guadalajara which is the second largest city in Mexico. The greater metropolitan area of Guadalajara (including Zapopan, Tonala, and Tlaquepaque), has a population of approximately 4,000,000 residents, thus making it about the same size as Los Angeles, the second largest city in the US. Puerto Vallarta is the second largest city in Jalisco with a population of 350,000 people, nestled in the Sierra Madre foot hills along the shoreline of Banderas Bay on the Pacific Ocean.

At 3,000 feet deep, Banderas Bay is one of the deepest natural bays in the world with the Sierra Madre Occidentals to the north, the Sierra Madre Del Sur to the south, and the Trans National Volcanic Axis Range to the east. All three of these substantial mountain ranges converge at Banderas Bay, where more than 60 million years ago when dinosaurs roamed the Earth, these mountain ranges were formed as the planet‘s crust changed forever. Much more recently, only about a million years ago during the Pleistocene age , volcanoes erupted in the region exposing a land rich in mineral wealth containing vast deposits of gold, silver, lead, zinc, copper, tin, and

The word opal was derived from the Roman word opalus (to see a change of color) as they popularized the opal around 100 BC and prized this gemstone above all other precious stones believing the holder to be charmed with good fortune. The Mexican fire opal, sometimes referred to as cherry opal, precious fire opal, sun opal, girasol (Spanish for sunflower), and Quetzalitzlipyollitli (gemstone of the bird of paradise) by the Aztecs, was used by the Mayas and Aztecs during the past millennium for ritualistic purposes and in various mosaics. Today, connoisseurs say that fire opals bestow courage, stamina, will-power and energy on the wearer; the warm, fiery orange-red colors are said to have a positive effect on the psyche and convey a profound sensation of warmth, peace and harmony.hundreds of other minerals. As a result, Mexico became the world’s leading producer of silver for centuries and has only recently fallen to second position in the world. A great portion of the Mexican silver has been mined in this region within a 100 miles of Vallarta.

Due to the rich volcanic soil, all tequila in the world comes from this area in Jalisco. With plenty of tequila, there was also a mood for music and dancing! Consequently, in this area within 100 miles of Vallarta, Mariachi music evolved (a symbol of the Mexican Revolution) as did the Mexican Hat dance (the Mexican national dance).

Much of the rich soil in the Vallarta region is also ideal for farming and with the location being on the same latitude as Maui, Hawaii, the climate is perfect for growing many fruits and vegetables. One example being mangos, where Mexico is the third largest exporter of mangos in the world.

Now that we know the area around Vallarta is rich with mineral and agricultural wealth, let’s take it a step further. It just so happens that approximately a dozen distinct classifications of minerals with hundreds of varieties exist in Mexico. As an example, the silicates class alone, contains more than 60 different minerals such as jadeite, zircon, topaz, and quartz, a subgroup of which includes amethyst. The carbonates class consists of bismutite, calcite, magnetite, dolomite, etc. while the sulfates class has gypsum, barite, cuprotungstite, etc.; many of these minerals being used for industrial applications. Finally, the mineraloids class which contains amber, obsidian, and opal; minerals that are frequently carved, ground, cut, and polished for objects of art, jewelry, etc.

Many of these minerals, including most opals, were formed during the Cretaceous period and brought to the Earth’s surface during the Pleistocene age. Of the 25 or so varieties of opals, the fire opal is the only naturally faceted opal and the most significant fire opal deposits are found in Mexico. One of the two largest sites for mining the Mexican fire opal, which just so happens to be the “national gemstone of Mexico”, is located near Magdalena, Jalisco; a small city located approximately 100 miles east of Vallarta that can be visited from PV during one of the ten hour day tours. Magdalena is in a region laden with igneous rocks, obsidian, volcanic lava, and more than 300 opal mines.

Mexican fire opals consist of silicon dioxide or silica spheres arranged in an orderly pattern with iron oxide dispersed throughout. It’s the iron oxide that gives the Mexican fire opal its distinctive brilliant flame-like colors of yellow, orange, and red. The three most important attributes of the fire opal are body colors, transparency, and play of color (differing colors when viewed from various angles). The greater the play of color, the more precious the gemstone. Because most opals are not faceted, they are generally displayed in the cabochon form. However, since fire opals are often found naturally faceted, they can be cut, polished, and mounted as cabochons or faceted stones.

Opal is the lucky stone of those born under the Aries sign and it is the birthstone of Libras. For those of us fortunate retirees in Vallarta that happen to be Libras, we’re able to obtain these spectacular birthstones virtually in our “back yard”. For those of you visiting Vallarta and just want to possess one of these prized gemstones, there are numerous fine jewelry stores in town; a number of which specialize in Mexican fire opals.

Now that you have a better appreciation for fire opals and where they come from, you’ll have one more reason for visiting and or retiring in Puerto Vallarta; the most magnificent resort destination on the Mexican Riviera, where brilliant fiery sunsets and opals abound.

Jim Scherrer has owned property in Puerto Vallarta, Mexico for 25 years and resided there for the past eleven years. The mission of his series of 45 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at Puerto Vallarta Real Estate Buyers‘ Agents and click on ARTICLES.

The Advantages of Vacation Rentals in Cancun Mexico

Whether you are looking for a destination for family vacation or want a memorable romantic honeymoon in a tropical paradise, Cancun Mexico offers something for everyone. This lovely locale isn’t one of the world’s most popular destinations without reasons. In Cancun, a tourist has a choice of tons of great activities. Cancun has fanstastic weather all year round. It has white beaches offering spectacular visuals. Cancun also has an exotic flora and fauna, wildlife and marine life. Since, Cancun has many options to stay from hotels to affordable and quality vacation rentals; Cancun is a prime choice for tourists from all over the world. For a traveler looking for great vacation homes, Cancun Mexico Vacation Rentals are the best in the region. A vacation rental is a great idea for a traveler who wants to stay for a considerable amount of time and savor the beauty of Cancun and Riviera Maya on his own terms. If you want to stay away from crowd of all-inclusive resorts or hotels, then your own rental vacation home in Cancun Mexico gives you exactly the experience you’re looking for. Whether you are seeking fun with the family and friends or a romantic getaway, Cancun Mexico vacation rentals have major advantages over a hotel or a resort. Mexico Vacation Rentals give you lots of space. For a family visiting Mexico this option is the best. This is much more appealing than accommodating the entire family into one or two small hotel rooms. Kids can get separate rooms and couples can spend quality time with each other and not be bothered. This makes a Mexico vacation worthwhile for everybody. A spacious Mexico rental vacation home is also a great option when visiting Cancun with your extended family. A rental home gives a feeling of being at home away from home with all the family members around you. The cost of having this sort of ambience will be very prohibitive in a hotel or a resort.Cancun Vacation Rental Properties are also a good option if you are looking forward to family get-togethers, reunion or a wedding in Cancun. Many vacation rentals include private patios and beach access, private infinity pools and modern kitchen facilities so you or a chef can cook whatever you want. With ample of space and all luxury and amenities available, rental accommodations provide great experiences at a fraction of cost. Renting a vacation house in Riviera Maya also gives you privacy. Unlike a large resort with hundreds of strangers all around, a Cancun vacation rental means that your privacy is assured. This is especially important for a newlywed on a romantic honeymoon. As a honeymooner the last thing you would want is a strangers intruding on private space. If you are looking forward to honeymoon or simply on a trip to rekindle your passion then privacy of vacation home on beachfront in Mexico is the surest way to do it. If you are eager to enjoy the Mexico vacation that will be etched in your memory for a lifetime then on your next vacation, consider a Cancun vacation rental. Author: Tom Budniak

Retirement in Puerto Vallarta–how are Gringos Treated in Mexico?

Not all tourists that visit Mexico are treated the same. As an example, those that come to traffic or use illegal drugs are treated rather harshly in Mexico, resulting in terrible vacations while south of the border! Another one that’s probably not anxious to return to Mexico is Dawg, The Bounty Hunter. He was not treated with a great deal of dignity and respect, however he too might not have closely followed the Mexican laws as he handcuffed his fugitive and hauled him out of the country!

On the other hand, as normal law abiding folks, we have been treated like family, like friends, almost like royalty ever since we began making our semi-annual visits to Puerto Vallarta, Mexico in 1984, when we purchased a condo in Mismaloya, about six miles south of Vallarta. Back in the 80´s, it didn’t take much more than a photo identification in order to get a Mexican FMT or tourist visa.

Today, a passport or certified copy of a birth certificate is required for an FMT visitor visa. These visas are good for staying up to 90 days in Mexico; however you can ask for and often receive a 180 day FMT visa. There is no charge for these tourist visas and they are easily obtained at the departure airport or at the Mexican customs office when arriving by vehicle. Upon entering Mexico, the immigration agents stamp your copy of the visa and record your entry into their computerized data base with information regarding the length of your stay and where you’ll be staying. Upon leaving the country, you return your copy of the visa and your departure time is entered into their system. In other words, visiting Vallarta for less than six months is about as simple as it could be.

Now, to put the above Mexican treatment of American and Canadian tourists requesting visas into perspective, let’s compare it to what Mexicans must do to legally visit the US. This can be best done by telling the following story which is based on personal experience and is typical of American immigration practice throughout Mexico.

For many years, we thoroughly enjoyed our vacations in PV, so much so, that in 1997 we bought a beautiful villa and decided to make Vallarta our permanent residence. We have had a lovely couple working in the villa for the past eight years. They are a kind, intelligent, clean, honest, and church going couple with two of their three children now attending the University of Guadalajara. As a bonus for their many years of hard work and loyalty, last year we offered the woman an all expenses paid one week vacation to visit us in the Lake Tahoe area where we spend the summers. She has never been to the States and needless to say, she was very excited and looked forward to the trip.

We called the US Consulate in Guadalajara to determine the required procedure for Mexicans to visit the US. First, a current passport is required, so within a month, she had obtained her new passport. We were also informed that she needed a copy of her bank account statement in Mexico, a copy of her marriage license, a copy of her property deed, employment records, and a letter of invitation from us would be helpful. We wrote a half page typed letter of invitation, thanking her for the years of dedication and service, and then helped her assemble all of the required documents into a single file folder. Again we contacted the US Consulate, informed them that all of the required documentation was in order, and scheduled an appointment for her interview. On the day of her appointment, dressed in her Sunday best, she took the folder full of required documents and the cover letter of invitation to the US Consulate in Guadalajara which is a five hour drive from Vallarta.

The US Consulate was packed with hundreds of Mexicans and they put her in a line with about 50 others, probably all having the same appointment time. She indicated that not a single person of the 50 Mexicans ahead of her was granted a visa. Finally, after an hour and a half, she made it to the front of the line. They interviewed her for less than two minutes, said her letter of invitation wasn’t notarized, and basically threw her out just like the previous fifty people. Of course, during our phone conversation, they never mentioned a requirement of notarization of the letter of invitation when they listed the requirements. In fact, the letter was not even a requirement, but only a helpful addition to her list of requirements. In all probability, the Consulate handed out very few, if any, visas for travel to the US that day.

From what our friend witnessed during her two hours at the US Consulate, they granted zero visas that day. After getting her hopes so high and being so excited about the vacation, after spending her money on the passport, the money for the five hour journey to and from Guadalajara, the night spent in Guadalajara, the time to assemble all of the required documents, and the two hours in the Consulate, there was virtually no chance of getting a visa to the US for a Mexican citizen and the worst part of it was, the employees of the Consulate knew it. Why in the world would the US Consulate treat the thousands, perhaps hundreds of thousands of Mexicans that way when they are trying to visit the US legally?

It’s no wonder that millions of Mexicans are sneaking across the border undocumented. It’s got to be a lot easier, faster, and perhaps cheaper to sneak across the border, thus resulting in the US having no clue as to who has entered the country, where they are, how long they’re staying, or what they’re doing. The Mexicans that we’ve met, including the woman working in our villa, would be happy to have their pictures taken, fingerprints, etc. but the system virtually denies their legal entry into the States.

As a side note of interest, upon returning to PV after our summer in Tahoe last year, we discussed the above story with our local US Consulate agent in Vallarta. She confirmed that visas to the US were just not being granted at this time because of all the immigration related problems in the States.

By comparison, it’s a cake walk getting into Mexico for US and Canadian citizens!

US and Canadian citizens are treated with respect, dignity, and welcomed as guests in Vallarta. Of course, the economy in PV depends solely on tourism and it is in the best interest of the locals to see that all tourists have a pleasant and safe visit while in Paradise.

In the ten years that we’ve lived here, we’re not aware of a single robbery, burglary, picked pocket, or any other crime committed on a foreign resident or tourist. It is so tourist friendly in Vallarta that there are now approximately 50,000 North Americans living here during the “high season” of November through May. There are millions of tourists by plane or cruise boat that visit PV each season and unless they’re really looking for trouble, they’ll never find it.

Furthermore, in 2001 the readers of Conde Nast Magazine voted Puerto Vallarta the eighth best vacation destination in the world and the very friendliest city in the world. That Conde Nast poll pretty well sums up the way tourists or retirees are treated in Vallarta.

For those of us that are retired and having so much fun in Paradise that we don’t want to leave in 180 days, we merely apply for an FM3 permit, a long term visitor permit which resembles a passport, costs about $100, and takes about a month to obtain. We must provide photos, fingerprints, proof of residency such as electric and water bills, and proof of self sufficiency such as any bank statement. The FM3 allows a North American to stay in Mexico for one year and can be renewed annually. This long term visitor status allows the foreigner to bring his car into Mexico and keep it here indefinitely, as long as the FM3 is kept current. Our Grand Cherokee Jeep still has the 1997 Texas plates and no taxes have been paid on the vehicle since 1997. Unlike the US where everything must be politically correct, the Mexicans have no qualms with profiling. If for any reason, a Mexican policeman gets the urge, he can pull over a foreign plated car and check the status of the driver’s FM3. For that reason, everyone keeps a copy of their current immigration papers in the glove box of their car.

After five years of FM3 renewals, i.e., five years of living more than 180 days per year in Mexico, you are then given the option to continue with a new FM3 or convert to an FM2. The FM2 requires the same documentation as the FM3 but costs a little more and still requires annual renewal. The main difference is that an FM2 designates the holder as an immigrant rather than a visitor. This is a critical difference as it pertains to the treatment of capital gains on the sale of real estate. Exemption from capital gains tax is granted only to those that can provide proof of primary residency in Mexico for at least five years, with primary residency being anything greater than 180 days per year. The FM2 document clearly proves primary residency for longer than five years. After the fifth year of holding an FM2, the holder becomes eligible for a permanent resident alien status and no longer is required to renew his FM2 on an annual basis.

All of the aforementioned immigration documents can be obtained at the local Mexican immigration office, which for us living in Paradise, is right here in Vallarta. The FM3´s or FM2´s are stamped and recorded every time you leave or enter Mexico. Compared to the US, you’ve got to give the Mexicans credit; they have a much better handle on who’s in and who’s out of their country.

In summarizing, due to the relative ease in obtaining the proper immigration papers in Mexico, there is virtually no reason for any American or Canadian to be here undocumented. If any problem were to ever occur, both American and Canadian Consulates are located in Vallarta to assist you.

For those really serious about living in Mexico, after establishing your primary residence in Mexico for five years and learning a fair amount of Spanish, for about $1,500 and with the assistance of a local immigration attorney, you can apply for Mexican citizenship. Once all of the applications have been submitted and an interview with the immigration agent is completed, the waiting period is approximately 18 more months. If and when granted, you will hold dual citizenships and have pretty much all the rights of a naturalized Mexican citizen. Although most of the natives in Vallarta speak some degree of English, unlike the US and Canada, Mexico has a primary language. It is Spanish and the immigration officials make it crystal clear when interviewing for Mexican citizenship. It’s not until the two hour interview in Spanish is completed that you learn that the interviewing attorney speaks fluent English! However, to their credit, they do accept Espanglish which is our hybrid between English and Spanish.

Of course money talks, but from what we’ve experienced for ten years, the Mexicans treat the Gringos substantially better than the Gringos treat the Mexicans.

Retirement Real Estate in Puerto Vallarta, Mexico

How would you like to have a really intelligent, honest and well educated president? How about a Harvard graduate? Well, would you believe that Mexico has a 12 consecutive year run of Harvard alumni presidents? They have had a dramatic effect on the Mexican economy in general and real estate values specifically.

Prior to the new millennium, the Institutional Revolutionary Party (PRI) or its predecessor revolutionary parties, had held power for over 70 years in Mexico and was a member of Socialist International. Thanks to the PRI philosophies toward nationalization, expropriation, authoritarianism, and state control of the economy, Mexico held a Third World status for 80 years. With those philosophies, Mexico was probably not the best place for foreigners to invest in real estate, or for that matter, anything else.

The situation in Mexico changed dramatically in 2000 when Vicente Fox of the National Action Party (PAN) first took over power for a six year presidential term lasting until 2006. Prior to his presidency, Fox had earned a Top Management Skills degree from the Business School of Harvard University and had then worked his way up to the presidency of Coca Cola Mexico and head of all Coca Cola Latin America. He was one of the few Mexican presidents to avoid a major economic upheaval during office, whereas previously, the Mexicans were accustomed to devastating peso devaluations. During the ten years that we’ve lived in Puerto Vallarta, Mexico, the peso has held firm at about 10.8 pesos per US dollar.

Fox’s term expired in 2006, when his successor, Felipe Calderon, also with the PAN party, won a very close election. Calderon holds a Master of Public Administration degree from the John F. Kennedy School of Government at Harvard University, and will serve as President of Mexico until 2012. He supports balanced fiscal trade, flat taxes, lower taxes, and free trade. His motto is to Drive Mexico Into the Future which represents privatization, liberalization, political freedom, and market control of the economy.

These two Harvard graduates have taken Mexico from a Third World Country to a Newly Industrialized Country (NIC) in a very short period of time and are continuing to advance the economy. As an NIC, Mexico has joined the ranks with countries such as China, India, Brazil, Turkey, etc. en route to becoming First World Industrialized Countries. Recently, Mexico has changed from being a beneficiary to a full contributor to the United Nations Development Program. The Mexican Bolsa, or stock market, has more than tripled during the ten years that we’ve lived in Vallarta. The PRI party, still holds local power in the poorest states of Mexico; those where the inhabitants have the least education and are still waiting for subsidies from the government. However, the state of Jalisco where the capital is Guadalajara and the second largest city is Puerto Vallarta, is one of the many states where the local PAN party is in power. This change in power has been quite remarkable and evident in Vallarta during the last seven years.

During the past seven years, the Mexican government has spent billions of dollars improving and upgrading the infrastructures throughout the resort destinations. Puerto Vallarta has new water treatment facilities, power distribution systems, hospitals, university, upgraded airport, maritime terminal, highway system, etc. and is being prepared for the next five years of growth.

We have owned property here in Vallarta, located in the foot hills of the Sierra Madres overlooking Banderas Bay on the Pacific Ocean, for 24 years and have made Paradise our permanent residence for the past ten years. During the first 15 years, there were virtually no changes made here and the property values reflected it. However, during the years that PAN has been in power, the changes have been obvious and dramatic. Our villa has tripled in value and is expected to double again in the next five years as the baby boomers discover Paradise.

Puerto Vallarta, Mexico, the once sleepy little Mexican fishing village located in the foothills of the Sierra Madres on Banderas Bay along the Mexican Riviera is no longer sleepy or little. The population has literally exploded since the filming of “The Night of the Iguana” in 1963. Vallarta has grown from 2,000 inhabitants prior to 1963 to the current figure of 350,000 inhabitants in 2007.

Aside from having a progressive government in power, the following are some of the other reasons accounting for this explosive growth:

Climate–Located on the same latitude as Hawaii, the seven month “high season” of November through May has an average daily temperature of 73*F with virtually no chance of rain.

Scenery–Vallarta, located in the foothills of the Sierra Madres on the Banderas Bay, one of the largest and most beautiful bays in the world, is in the center of the Mexican Riviera on the Pacific Ocean. Beautiful beaches, rocky cliffs, mountain sides overlooking the bay, tropical flowers and wildlife, and all the sights that one would expect to find in Paradise.

Safe–With tourism being the life blood of the economy, North Americans are “off limits” regarding any sort of criminal activity. Since guns are strictly prohibited in Mexico, burglaries, robberies, etc., are virtually unheard of. The primary objective of most all of the young generation of natives is to assure all North Americans a pleasant and safe visit to Paradise so that they’ll return soon and often. Fear of a terrorist attack in Vallarta? Forget it!

Friendliness–In 2001, a readers poll taken by Conde Nast magazine listed Vallarta as the friendliest resort destination in the world. The locals treat North Americans with dignity, respect, and as friends, family, and almost as royalty.

Clean Food and Water–The explosive population growth has caused a complete revamping and expanding of the city infrastructure. This includes the road system, power generation and distribution, and of course, water treatment and distribution systems. The water is pure and safe to drink from the tap throughout the city. All food products are now available in the many new modern supermarkets equal to the finest in the States. Food for home or restaurant consumption is closely monitored for cleanliness and controlled as in North America.

Medical care–Two new huge modern hospitals and one smaller modern clinic in Vallarta are fully capable of handling all emergencies as well as complicated surgeries. Modern dental clinics are also in Vallarta offering crowns, caps, implants, as well as all the basic dental practices. All of the doctors and dentists speak English and many of them have had at least some professional training in the States.

Friends–Every North American that you see in Vallarta, and they are easy to spot, is either on vacation or retired, i.e., none of them have to go to work tomorrow! They are all open to new friendships and new comers are always welcome. It’s one big party with no looming pressures of the office or the commuter drive in the morning.

Language–Because the economy in PV is based on tourism, it is imperative to speak English. Therefore, it is estimated that at least 80% of the younger generation is now speaking or at least understanding English. Communication is not a problem in Vallarta and there is no need to learn Spanish.

Travel Time–Although Vallarta is on the same latitude as Hawaii, it is only two to three hours from most of the US cities. Even the highways coming down from the US are now all super modern tollroads and the drive to PV can be made in two days from the border.

Connectivity–With high speed internet service available citywide, internet based telecommunications, and satellite TV available everywhere, you have the same contact with the world that you would have anywhere in the US or Canada.

Activities–World class deep sea fishing has been for years, and will always be, a major activity in Vallarta. There are now seven beautiful golf courses with more under construction. There are hundreds of tennis courts, water activities, night life galore, and too many clubs and organizations to mention. If you have nothing to do in PV, it’s only because that’s your choice!

Cost of Living–The cost of basic staples is about the same as in North America, however, housing is roughly half the cost and housing related taxes are a fraction of those in the States. All services are a half to a third of those in the US including medical and dental care because labor rates are so much lower. The cost of dining, outdoor activities, etc., are pretty much in line with those in the States.

Economic Security–The Mexican peso, at approximately 10.8 pesos per US dollar, has held firm for the past ten years. There are no devaluation concerns at this time as the Mexican economy booms.

Political Security–The PAN party has ruled in Mexico since 2000 and will remain in power at least until 2012, assuring a twelve year consecutive run of Mexico being governed by Harvard graduates! Needless to say, they are pro-US and friendly to the North.

Investment–Property values have tripled during the past ten years and are expected to double again during the next five years. With the booming economy, the Mexican stock market has also tripled during the past ten years. There is no slow down of growth in the foreseeable future.

Hopefully, the above 15 items will provide some explanation for the booming economy and explosive growth in Vallarta. They say that the party’s not over, that it has only just begun.

The Mexican National Tourism Development Foundation (Fonatur), has designated a 30 mile stretch of pristine Pacific Ocean shoreline north of Vallarta as the new Riviera Nayarit, where more than five billion dollars will be invested during the next ten years creating 30,000 new jobs as they build close to 20,000 new condos, villas, hotels, etc. As the North Americans continue to flock to Paradise, the infrastructure growth and future planning activities continue at a torrid pace.

Fortunately, Mexico has been governed by US friendly Harvard graduates for the past seven years and will be for at least the next five years, thus assuring a safe and secure real estate investing environment well into the future for retiring North Americans. If you’re retired or close to retirement, you ought to check out Vallarta before it’s too late. If you’re fortunate, you’ll be included in the next 100,000 gringos that migrate to Paradise!

The Influence of Mariachi on Puerto Vallarta, Jalisco, Mexico

Mariachi music, quite obviously the heart and soul of Mexico to anyone that has traveled south of the border, frequently permeates the Puerto Vallarta evening air. Mariachis can be heard serenading women at weddings, special occasions such as quinceaneras (girls’ fifteenth birthday celebrations) and baptisms, Mother’s Day fiestas, and at private parties. The mariachis are also often seen and heard in many of the restaurants and cantinas and can be found roving along the beachfront malecon and throughout public parks.

The mariachis that perform at parties and special occasions are generally paid by the hour, whereas those practicing their trade in public areas, restaurants, and cantinas usually request a given amount of pesos per song. Other mariachis acting as street musicians or buskers simply play their beautiful music for the public enjoyment and appreciate the tips they receive.

We all recognize the unique sound of mariachi music when we hear it, however few of us truly appreciate what differentiates mariachi from other music. In order to be classified as mariachi, the group must include a guitarron (a small acoustic base) and a yihuela (a high-pitched five string guitar) along with a Mexican guitar, three or more violins, and one or more trumpets. Normally, at least one of the musicians will also sing. The appearance of the mariachis is also quite unique in that they commonly wear silver studded charro outfits with bow ties and wide-brimmed sombreros.

What is not so obvious and well known is the derivation of the word mariachi and the birthplace of mariachi. Although there are differing opinions regarding the origin of the word mariachi, many believe it was derived from the French word “mariage” meaning wedding or marriage. There is no doubt that mariachi originated in the small city of Cocula, Jalisco, which is located in a farming valley approximately 100 miles east of Puerto Vallarta. Cocula, known as “the cradle of mariachi”, has a population of less than 30,000 inhabitants with its roots from Franciscan monks who persuaded the indigenous inhabitants of the surrounding areas to relocate to the valley soon after the Spanish Conquest around 1530AD. Their unique form of music was first documented around 1880 and has grown in popularity ever since. In fact, mariachi music became the symbol of the Mexican Revolution from 1910 to 1920 because it represented the national spirit of the indigenous Mexican blood. It really wasn’t until after 1930 that this distinctive form of music was even recognized outside the state of Jalisco. Of course, today the sights and sounds of mariachi are worldwide and well known by almost everyone.

Next, because numerous mariachi troupes were performing throughout the state of Jalisco and the music was ideal for dancing, their admirers started the zapateado; the traditional mariachi dance technique which originated in Spain. It became so popular that one of its varieties, the Mexican Hat Dance from Guadalajara (the capital of Jalisco and the second largest city in Mexico), soon became the national dance of Mexico. The female dancers with their beautiful costumes provide a memorable sight as they strike the floor with the heels of their shoes and flare their brightly colored dresses of intricate patterns and designs while dancing around a sombrero.

Now that we know that mariachi, the symbol of the Mexican Revolution, originated in the state of Jalisco, and that the national dance of Mexico, the Mexican Hat Dance, is also from Jalisco, we ask how these facts influence life in Vallarta today. Well, aside from the perfect winter climate from November through May and the incredible scenery of the Sierra Madres and the Pacific Ocean, a visitor to the region might not even realize he’s in Mexico with all the taxi cabs, “big box” stores, air conditioned shopping malls, multi-level parking garages, stadiums, airport, bus and maritime terminals, golf courses, hospitals, university, convention center, and other large and modern facilities that you would expect in a city of 350,000 residents. Therefore, in order to obtain that unmistakable feeling of being in Mexico while visiting Vallarta, one should take in some mariachi music and a hat dance (not to be confused with a lap dance!). Only then will the sensation of being in Mexico be fully appreciated; only then will the true flavor of Mexico be savored. The sights and sounds associated with mariachi are uniquely Mexican as they exemplify the centuries old cultural mix of Latin America and Europe.

In summarizing; picture this: you’re with your wife or girlfriend enjoying an evening dinner at one of the fine beachfront restaurants with an ocean view and mountain backdrop. The temperature is perfect, there’s a gentle evening breeze, tropical flowers are on the table, and you’re sipping a frozen margarita or cerveza while listening to mariachis and watching the sunset in Paradise. It just doesn’t get much more romantic than that! Mexicans are known to be very romantic by nature, and influenced by mariachi, it’s no wonder that Puerto Vallarta is known as one of the most romantic resort destinations in the world. What better place to retire, than amongst the romantic sights and sounds of mariachis?

Jim Scherrer has owned property in Puerto Vallarta, Mexico for 25 years and resided there for the past eleven years. The mission of his series of 43 articles pertaining to retirement in Puerto Vallarta is to reveal the recent changes that have occurred in Vallarta while dispelling the misconceptions about living conditions in Mexico. For the full series of articles regarding travel to and retirement in Vallarta as well as pertinent Puerto Vallarta links, please visit us at Puerto Vallarta Real Estate Buyers‘ Agents and click on ARTICLES.

Why Its Good Idea Visiting Greece and Especially Greek Islands by Sea

Retirement in Puerto Vallarta–dangerous Living in Mexico?

Have you heard the horror stories about traveling through Mexico? Worst yet, can you imagine living there?

Well, being the adventurous and courageous retirees that we are, in 1997 we bought a beautiful new mountainside villa overlooking Banderas Bay and El Centro, or downtown in Puerto Vallarta, Mexico. The villa is actually a compound, surrounded by 10 foot walls with a walk-in gate and doors for car entry.

Our initial thought while closing the doors during our first evening in our new villa was to hire a couple sentries to guard the villa at night. One could be positioned in front and the other down below on the backside facing the bay, thus providing the security required in this foreign new land.

Well, we never got around to hiring those guards and furthermore, we’ve never heard of anyone being burglarized in the neighborhood for the past ten years. Municipal Police do cruise through the neighborhood a few times every night and we do have excellent street lighting; however crime in the neighborhood, known as the “Beverly Hills of Vallarta”, is virtually non-existent.

Ten years ago, we would be pulled over by the local police every two or three months for any of a myriad of concocted reasons. It was the typical corrupt Mexican police shake-down where after you handed him 200 pesos or $20, you were no longer guilty of breaking any laws or committing any crimes. You instantly became his amigo! That corruption is seldom seen anymore in Vallarta and we haven’t been pulled over by the police for a number of years. In fact, they seemed to have gone 180 degrees the opposite direction being very friendly to all Americans and Canadians.

The city of Puerto Vallarta, referred to as PV or Vallarta by the residents, has exploded in population during the past ten years to the current level of 350,000 inhabitants. That growth can be attributed solely to tourism. Virtually every job in PV is based on tourism and without the influx of foreigners from the US and Canada, Vallarta would still be a sleepy little Mexican fishing village. Because tourism is so important, the young locals are taught to treat the Americans and Canadians with dignity, respect, kindness, and as friends. The very last thing they can afford is to have tourists encounter problems while visiting Paradise and to return home with negative feelings about Vallarta. The objective of each and every Vallartense is to assure all tourists an enjoyable and safe time while visiting so that they look forward to returning. The young Mexicans are taught that safety is the prime concern of all visitors and to harm a tourist would be equivalent to taking food or money out of their own family household.

As a side note of interest, there is currently a film, “South of the Border” being shot here in Vallarta by the Disney Company. It’s a cute story about a chihuahua, owned by a Beverly Hills socialite, that got lost while she was visiting a spa in Mexico. A group of local Mexican chihuahuas found this pup, took care of and entertained it, and then assured its safe return to Beverly Hills. The film will be released in 2008 and will help promote the social, cultural, and economic relations between Mexico and the US. The bottom line being, that the safety and security that one feels in Vallarta is quite comforting and is demonstrated in the film through the life of a chihuahua.

Serious crimes such as murder, rape, kidnapping, etc. are unheard-of in Vallarta. Security is such that armed robberies are virtually non-existent. One reason of course is, guns are not permitted in Mexico. The penalty for carrying a firearm is much more than anyone would ever want to pay.

The one crime that persists in PV is related to drugs. Although the Mexicans seldom use them, they are plentiful for those tourists too ignorant to understand the consequences. The penalty for drug possession and use is so severe that anyone dependent on drugs is best off avoiding Paradise. With full employment in PV, even the art of pick-pocketing is no longer practiced here; it’s just too easy to find a job!

The US and Canadian Consulates in Vallarta are well staffed and ready to assist any tourist with just about any problem that could arise while visiting here.

Even though Vallarta has reached the size of Anaheim or St. Louis, it’s still a small city where everyone seems to know what others are doing. Any crime committed by a local would be known about by many others immediately. Not to be picking on Anaheim or St. Louis, but when comparing Vallarta to cities in the US of similar size, our hunch is that it’s much safer in Paradise!