It has been over thirty years since Chris Haines first stepped on the beautiful beaches of Puerto Vallarta, and now, three decades later he and his wife, Rita, call it home. Having lived in Acapulco as a child during its hay day and having visited many other beautiful areas within Mexico, Puerto Vallarta remains one of his favorite spots. So much that, Chris and Rita Haines purchased a beautiful condominium on the hillside of Concha Chinas area in Puerto Vallarta, with a spectacular view of the Banderas Bay. Chris is co-owner of  G3MEX Group, a Real Estate Investment, Development and Broker company in Puerto Vallarta.

1. Can you describe the current state of the Puerto Vallarta real estate market?

As we all know, the world wide financial crisis has affected the real estate market across most markets in the world. Puerto Vallarta has definitely not been immune to the crisis. The fortunate aspect of this market is that most people who own property in around the Bay of Banderas are not holding mortgages and thus a foreclosure market as in the U.S. does not exist. This has helped keep the market somewhat stable, but does not mean that prices have not come down extensively. We have experienced from 20-35% decrease in prices and in some cases more, typically when the property was overpriced.

In addition to the price reductions, the price market segment has shifted extensively. Previously it was common to sell homes in the $400K to > than a million. This price range segment has utterly disappeared. With everyone having less money to invest, to purchase a second home or retirement home the price segment that continues to sell has come down to the $150-$250K range.

Many properties that were above this range, say in the mid to lower $300K have had to come down to this range. Properties that are above this range have to come down to a level that provides an incredible buy for investors or end users. The ones that purchase these properties will certainly show nice gains in the future.

Developers are realizing the shift in this price segment and thus are planning new projects that caters to the buyers in this segment.

As they say when the cattle are running in one direction, the few are taking advantage. Now is the right time to buy…those who wait for the bottom will miss the great opportunities that are out there today.

2. What evidence would suggest that a home in Puerto Vallarta will appreciate in the next 10 years?

This is an easy question to answer. If you buy now, you most certainly will see appreciation in the years to come. I can ensure you that construction costs over the next 10 years will not come down, thus prices of new product will increase over time. Once the market consolidates and the next wave of construction begins, buyers of today will be locked into very attractive basis on their purchase price which will result in attractive increases in equity in the future.

3. What are the best new developments in Puerto Vallarta for expatiate retirees.

G3MEX Group is very selective in the new developments we recommend. Our criteria ranges from: developer history (success, delivery, post service and guarantee, quality and timeliness in delivery and most importantly financial backing). If the developer meets all of these requirements then they are put on our recommendation list. Here are a few projects we recommend today: Las Vistas (a G3MEX Group exclusive listing), Alamar (a product by the Grupo Real Del Mar developer), Taheima, LUMA, Molino de Agua, Sierra Del Mar Los Arcos, are the most recommended by our group.

4. What are the biggest draws for expatriates that move to Puerto Vallarta?

Fortunately, Puerto Vallarta has many draws that attract cross all age groups, interests, and location/ease of access. Vallarta offers a wide range of activities for everyone, from tranquil settings, to adventurous activities such as scuba diving, horseback riding, sailing, fishing, canopy zip lines. The cultural activities continues to increase and diversify. With the advent of the new convention center the city is experiencing new events not seen before: large scale concerts, boxing events, conventions and expositions. There are two important factors to mention and that is safety and ease of access to and from the U.S. Puerto Vallarta prides itself in keeping everyone safe and keeping out many of the problems plaguing other areas of Mexico. Vallarta is considered as one of the friendliest and safe destinations in the world. Most of the population are home grown, that is they and their families were born here. One last aspect is that Vallarta has a wide array of air lifts from most major cities in the U.S. and close by hubs. The average fly time is about 3 hours to and from Vallarta, but at the same time when you are in Vallarta you feel you are in an exotic beautiful place. Being in one of the largest bays in the world, the spectacular Sierra Madre mountains lining the bay is unique to anywhere in the world.

5. What should an expatriate expect to pay for beachfront property in Puerto Vallarta?

The nice thing about Vallarta is that it has a diverse product range in different areas of the bay. The starting price for a beach front property can be as little as $250K for a 1 bdrm condo. Of course beach front property can go into the millions. But again the nice thing is that there is something for everyone when it comes to beachfront properties.

6. What things should expatriates look for when considering which property to buy in Puerto Vallarta?

As I mentioned before, you must have a very strict criteria when selecting a property. When you are buying a new development I would use the same criteria that we use in our company. Our criteria ranges from: developer history (success, delivery, post service and guarantee, quality and timeliness in delivery and most importantly financial backing). If the developer meets all of these requirements then they are put on our recommendation list. When you are buying an existing property and it is a condo be sure to check the history of the HOA. Is it a friendly HOA community, do most owners pay their dues on time, as many Mexican owners do not pay on time and can cause financial health in the condo complex. Make sure there are no outstanding law suits and no large outstanding dues owed that have aged considerably. Be sure to have your criteria in place before looking, as buying on emotion alone can get you into trouble after you have committed to a specific property. A reputable agent is very important when searching for a property that meets your requirements and make sure that the realtor works for an agency that is an AMPI member.

Be sure to have your budget in mind and look at what your budget will buy you. After you look at a certain price range you may decide that you want to increase your budget or in some cases it will be possible to decrease your budget. There are beautiful properties that are overpriced and you may find a similar one for much less, it just takes further investigation and having an honest realtor working for your best interest and not for the most commission.

7. One concern that some expatriates might have about moving to Mexico is the Swine Flu? Is this a valid concern?

Absolutely not!!!! Mexico has taken extensive measures to control the Swine Flu which mainly was in Mexico City where over 25 million people reside. The State of Jalisco where Puerto Vallarta is located had very few cases and Vallarta reported none. You have just a good of chance getting Swine Flu in the U.S. or Canada as you do in Mexico, which I believe is little or no risk. Remember the media likes to hype things up and this is a prime example. As a resident of Vallarta I never once was worried.

You can learn more about Puerto Vallarta real estate investment opportunities at G3Mex.com or PVlifestyle.com.