August 19, Worldwide ERC would like to thank today s sponsor: 2014 Worldwide ERC
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1 August 19, 2014 Worldwide ERC would like to thank today s sponsor: 2014 Worldwide ERC
2 Mexico: An Updated Look from the Mobility Perspective 2014 Worldwide ERC
3 WORLDWIDE ERC WEBINAR DISCLAIMER The views, opinions, and information expressed during this webinar are those of the presenter and are not the views or opinions of Worldwide ERC. Worldwide ERC makes no representation or warranty with respect to the webinar or any information or materials presented therein. Users of webinar materials should not rely upon or construe the information or resource materials contained in this webinar as legal or other professional advice and should not act or fail to act based on the information in these materials without seeking the services of a competent legal or other professional Worldwide ERC
4 Welcome and Learning Zone Instructions Technical difficulties? Dial , or questions to To submit a question 1. Click on the Q&A tab in the lower right-hand portion of your screen 2. Type your question into the dialog box at the bottom of the screen 3. Click the Send button To return to meeting room window: If you are in full screen mode, you may return to the meeting room window by clicking the View Meeting Room button located at the bottom left corner of your screen Worldwide ERC
5 CRP and GMS Certification If you are a CRP seeking CE credit for this Learning Zone, you must utilize the CRP Recertification Credit Form, available online at: (please note that all (S)CRPs must use this form and pay the $8 admin fee to receive CE credit) If you are a GMS seeking CE credit for this Learning Zone, you must include the name/date of this webinar on your GMS Renewal Application (at the time you apply for recertification). The Renewal Application is available online at: Worldwide ERC
6 Our Discussion Today Introduction of Speakers Overview of Mexico and Mexico City Key Areas, Big business, Living in Mexico Deeper Dive - Relocation Specific Schools, Housing, Visas & Immigration Changes in Mexico Conclusions Questions 2014 Worldwide ERC
7 Overview of Mexico 2014 Worldwide ERC
8 Mexico United Mexican States Federal republic divided into 31 states and one federal district Capital is Mexico City President: Enrique Pena Nieto Fiscal reform Energy reform Telecommunications reform 118 million residents 32 UNESCO World Heritage Sites in Mexico 15 th largest economy in the world 10 th largest oil producer Largest silver producer One of the world s leading exporters Largest trading partners are the US and Canada due to the North American Free Trade Agreement Signed more free trade agreements than any other country in the world Major industries: automotive, aerospace, construction, beverage, maquiladoras, agriculture, telecommunications 2014 Projected Growth is 2.6% 2014 Worldwide ERC
9 2012 Worldwide ERC
10 Key Areas in Mexico Three largest cities: Mexico City, Monterrey and Guadalajara Mexico City and Metropolitan area El Bajio center of country Important geographical & economic region In between the three largest cities Largest industrial corridor in Mexico Includes major industrial centers such as: Queretaro, Leon, Puebla, San Luis Potosi Northern region has huge economic potential 2012 Worldwide ERC
11 Big Business America Movil LATAM largest cellular & internet company Femsa Coca Cola s largest bottler G Mexico One of the largest mining companies in the world Grupo Alfa Telecom, Gas, Processed foods, Auto parts and Petrochemical Grupo Modelo Largest beer manufacturer in the world Cemex The largest construction company in the world and third largest cement manufacturer - plants in LATAM, Europe, Asia and Middle East 2012 Worldwide ERC
12 Big Business multi national 2012 Worldwide ERC
13 Mexico City Mexico City: Home to the federal powers, it doesn t belong to any of the 31 Mexican states Business - One of the largest financial centers in North America 34% of country s overall Gross Domestic Product According to a study by Pricewaterhouse Coopers, the city alone has a GDP that places it as the 30th largest economy in the world. Major cultural center, from architecture, art, and music to cuisine, the city offers a wide range of opportunities for new experiences Geography - Mexico City is a valley surrounded by mountains, at an altitude of 7,350 ft. Population million people 1 million Americans live in Mexico Weather Average annual temperature varies from 54 to 61 F Temperature is rarely below 37 degrees F or above 86 F Area receives about 820 millimeters (32.3 in) of annual rainfall, mainly from June to September/October with little or no precipitation the remainder of the year
14 Highlights of Living in Mexico Excellent private medical care Service-oriented people Beautiful weather Rich culture and history Delicious cuisine Family-oriented Wide opportunities to travel inside the country and enjoy the culture, ecotourism, and some of the best beaches in the world 2014 Worldwide ERC
15 2012 Worldwide ERC
16 Mexico City - Neighborhoods Trendy & Expensive Apartments Polanco, Condesa Trendy & Expensive Single Homes Lomas de Chapultepec
17 Mexico City - Neighborhoods (continued) Suburban Santa Fe, Bosques de las Lomas, & Interlomas, Zona Esmeralda Traditional Mexican Style Coyoacan & San Angel
18 Deeper Dive Relocation Specific Schools Housing & Rental Considerations Visas & Immigration 2012 Worldwide ERC
19 Schools 2014 Worldwide ERC
20 Schools International Schools Multiple options in many areas Include IB programs Bilingual Schools Some religion based (Catholic) French and German specific Some include IB programs Availability High demand and long waiting lists
21 Admissions process can be complicated International schools require parents to complete the admission process to ensure confidentiality Academic documents must be translated, notarized, and certified Recommended that transferees start this process as soon as they know that they will be transferred to Mexico There is no way to exercise any influence to get a space or to be moved to the top of the waiting list School Calendar August to June School Process
22 Housing & Rental Considerations 2014 Worldwide ERC
23 Housing in Mexico City Apartments have 1-3 bedrooms; 1-2 bathrooms Houses have 2-3 bedrooms; 1 bathroom per bedroom; walk-in closets 4+ bedroom apartments are almost non-existent and houses are very hard to find Most properties are unfurnished and do not include appliances Most landlords in Mexico do not allow pets Renter s Insurance is not a common practice
24 Real Estate Market Mexico City Real estate in Mexico City has become very expensive Rental prices range from $1,500 USD to $15,000 USD In the last two years, rental prices increased 10% annually Fast paced market, requires quick decisions No multiple listing service can mean working with several real estate agents or with landlords directly Internet listings are unreliable
25 Leases and Deposits Landlords keep showing properties until they have a signed lease and/or get payment for security deposit Lease Guarantors (Employer) Required in most cases
26 Utilities and Services Water and electricity bills remain in the landlord s name Telephone, cable, and Internet are usually arranged by the transferees Tenants need to maintain records as proof of payment or risk loss of security deposit
27 Visas & Immigration 2012 Worldwide ERC
28 Visas and Immigration Delays in obtaining a visa can cause issues with the relocation process, including: Signing the lease agreement Enrolling in payroll Obtaining tax ID (FIEL) and Social Security Number Opening a bank account Obtaining a driver s license Receiving household goods shipment
29 Things to Consider: Living in México Safety Keep a low profile Exercise caution as in any other major city in the world Know where to go and not to go Avoid stereotypes Driving in Mexico Traffic (especially in Mexico City) Sense of time Be flexible and patient Repairs usually take longer than expected Interaction with locals Speak Spanish (a little goes a long way)
30 Changes in Mexico - Reform Telecommunications Dominated by very few players, now open for competition No predominate players can t have more than 50% market share Lower cost for services such as mobile, roaming, long distance, internet Energy reform Controlled by state company since 1938 now open to local private investors for drilling, fracking, exploration of oil, gas, electric and solar Fiscal Aimed to cut governments dependence on oil revenue Attempted to increase tax collection Increase taxes on upper income brackets tax junk food, sugary drinks, unify VAT tax and tax stock market profits
31 Conclusions Real estate challenging- Price, Process Expats prefer buildings with security or gated condominiums Schools Register early and expect waiting lists Amazing geography and lifestyle Expats don t want to leave! Reform will open Mexico to new investment and additional relocation. Be Ready! 2014 Worldwide ERC
32 Questions & Answers
33 Thank you for attending! Visit the Worldwide ERC web site at or contact Worldwide ERC for more information on these topics Worldwide ERC
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