Interview with Mr. Walfre Ibarra, Director of Walfre Real Estate

Mr. Ibarra is also Vice-President Tourism of the National Chamber of Commerce, Mexico; Member of the Board of Directors of the Mexico Tourism Council; and is a National Housing Commissioner of the leading government housing programme comprised of public and private initiative.

By Carolina Ibarra Sinclair

C - How long have you been involved in the Mexican Real Estate Industry?

W - 34 Years. I started at the El Cid Golf and Country Club Real Estate Development, and then the Marina and Time Share.

C - What kind of real estate services does Walfre Real Estate provide?

W - Walfre Real Estate is a full service Brokerage. We sell real estate to Mexicans as well as foreigners. In fact, there are 2 Canadian realtors at Grupo Walfre, Carol Sinclair and Nancy Dietrich. Walfre Real Estate also offers consulting services and has been involved in the establishment of international franchises in Mexico.

C - I recently spoke with Mr. P. Randy Reifel of Chesapeake Gold Corp. who mentioned that Mexico has become one of the most important destinations for mining investment by foreign companies worldwide because of good title registration for mining properties, and because little has changed in the past 13 years; thus alluding to the fact that this lack of change creates a climate of stability and confidence for investors. Would you consider this to be true for Real Estate investment (i.e. little or no change in the real estate purchasing process for foreigners, good title registration, etc)?

W - Yes. Not much has changed. Foreigners who purchase property near the beach or the border need to do so through a bank trust. The last big thing to change was that the permit used to be for 30 years, and it changed to 50 years about 10 years ago. One of the doubts foreigners used to have about purchasing property in Mexico was what would happen after the 30 years expired. Well, the 1st 30 year trust permits expired about 6 years ago, and it was possible to renew them for 50 years. This was one of the fears some people had, but it isn’t the case any longer.

C - What is the profile of the foreign individuals and companies who invest in property in Mexico (recreational, commercial or other)?

W - There is a variety of profiles. You have very successful young entrepreneurs who have found Mexico to be a good investment option and have either relocated here and/or bought property. There are also the retirees who want a peaceful and safe place with a good climate to spend their winters. People who want to make sure they have adequate medical facilities available if necessary and for them to be more affordable than in the US. This can be found in many destinations in Mexico. It is certainly true of Mazatlan.

C - What are the biggest challenges faced by foreigners who want to purchase property in Mexico and how can they overcome these challenges?

W - Probably language, but fortunately lots of people speak English in Mexico. Individuals or couples who consider spending months at a time in Mexico also want to know how to meet people and become involved with the local society. There are a lot of organizations you can become a part of where Mexicans, Americans and Canadians participate. For example, in Mazatlán, “PROMEXICO” is a ladies organization that does charitable work locally and “Amigos de los Animales” is the local humane society. There are also church groups, sports clubs and other options to help people get involved in the local social scene.

C - What kind of an impact does foreign real estate investment have on the local economies of the host destinations?

W - Right now, tourist activities (this includes real estate investment) represent 1/3 of the municipal GDP in Mazatlan. It generates 1/3 of the employment in town. As far as the country, it is the 3rd source of international revenue after oil and remittances. Right now it represents about 20% of Mexico’s foreign investment.

C - Thank you for your time.

To contact Mr. Ibarra, you can email him at urbanexdemexico@prodigy.net.mx or visit Walfre Real Estate’s website