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Let's Go2Mazatlan - Articles Bargains Galore!--25% Discount
The airplanes and cruise boats packed with tourists continue to arrive daily in Mazatlan; 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 years, Mazatlan has literally been a boom town with explosive growth and new construction. 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 new condominiums now on the market.
Okay, now that we have a better understanding of how the economy in the US and Canada have affected business in Mazatlan, 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 Mazatlan 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.
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!
Jim Scherrer - Puerto Vallarta Real Estate Buyers' Agents and PVREBA • Jim Scherrer is a retired entrepreneur from Houston with an engineering degree and business background. Jim has bought and sold real estate in Puerto Vallarta for almost a quarter a century. He recognized an obvious need for a real estate firm in Puerto Vallarta that would function exclusively in the best interest of foreign buyers. Jim have Extensive knowledge of the area, a thorough understanding of the real estate market, many close relationships with the appropriate professionals including lawyers, notarios, mortgage bankers and escrow agents. To cntact Jim Scherrer please visit his website: http://www.pvreba.com/ or email at: jim@pvreba.com More about Mazatlan:
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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 
Finally, with the supply of goods and services, including retirement properties, we are now witnessing a true buyer's market in 
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.
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. 
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