This is Why Mexico is Becoming One of Top Investment Opportunities in the World - Baystreet.ca

Investment

This is Why Mexico is Becoming One of Top Investment Opportunities in the World – Baystreet.ca

Published

4 years ago

July 14, 2020

Mexico has become one of the top destinations in the world, not only for travelers, but also for those looking to own or even rent property.

In fact, over the last decade, property prices have steadily risen thanks to an influx of foreigners, and those buying property for retirement, or for investment purposes. For example, according to Mexperience, “Popular places like southern Baja California, Puerto Vallarta, and the Riviera Maya are continuing to experience high demand as Americans look south for beachfront property of the type that has become unaffordable in the US to all except the ultra-wealthy.”

In addition, investors and retirees are attracted to Mexico because the cost of ownership is far lower than it is in the U.S., in Europe, and in Canada. No wonder top international land investment and development firms are seeing considerable interest in properties in Mexico. Some of the top companies thriving on that demand are International Land Alliance, Inc. (OTCQB: ILAL), Howard Hughes Corp. (NYSE:HHC), Brookfield Property REIT (NASDAQ:BPYU), Zillow Group Inc. (NASDAQ:Z), Realogy Holdings Corp. (NASDAQ:RLGY).

International Land Alliance, Inc. (OTCQB: ILAL) BREAKING NEWS: International Land Alliance, Inc. announced that it has broken ground and started construction on Valle Divino, an eco-friendly development in Ensenada, Baja California, roughly 50 miles south of San Diego.

This community, which will feature 650 homesites, is part of a master planned residential community overlooking the internationally-renowned Bajamar Ocean Front Hotel and Golf Resort, as well as the Pacific Ocean. Valle Divino sits on the western edge of the Guadalupe Valley, Baja’s premier wine region with over 175 wineries. The Company recently completed a second “Test Vineyard” with 14 different grapes, including Malbec, Cabernet Sauvignon, Merlot, Tempranillo, Syrah, Mourvedre, Petit Verdot, Viogner, Bebbiolo, Pinto Not and Zinfandel. Test Vineyards are planted in an effort to see how different grape varieties grow in the same location.

Residential lot prices start at $49,000. Interested buyers are encouraged to visit: https://ila.company/valle-divino-resort/ and make an appointment at the sales office to tour the community.

Mauricio Bustamante, Director of Sales, commented: “We are pleased to add Valle Divino to our current product offering in Ensenada. We are seeing strong interest from retirees and first-time home buyers alike, as well as resurgence in overall traffic to Bajamar. Mr. Bustamante, commented further: “My primary focus for our sales office at Bajamar will be the immediate sales and marketing of “Phase I – Bajamar/Valle Divino.”

“We are negotiating sales and marketing agreement for our Oasis Park Resort, our flagship property, consisting of a 497-acre master-planned beachfront community with picturesque mountain views, located just south of San Felipe, Baja California on the Sea of Cortez, one of the world’s most prolific salt-water habitats. There are approvals to sell up to 1,344 residential home sites approximately ¼-acre each with starting prices of $49,000. In addition to residential lots, there is a planned boutique hotel, timeshare/vacation club, special commercial center and nautical center with boat launch and fishing marina. The Oasis Park Resort is a self-contained solar powered green community that takes advantage of the advances in solar power and green technology. The Company started residential lot pre-sales in Phase I in the second quarter of 2015 and broke ground in May 2016.

Other related developments from around the markets include:

Howard Hughes Corp. (NYSE:HHC) announced operating results for the first quarter ended March 31, 2020. The financial statements, exhibits and reconciliations of non-GAAP measures in the attached Appendix and the Supplemental Information, as available through the Investors section of our website, provide further details of these results. “The first quarter of 2020 saw our company continue its positive momentum from last quarter, which was the strongest in our history, and we were on our way to eclipsing those results prior to the arrival of the COVID-19 pandemic,” said Paul H. Layne, Chief Executive Officer. “Despite the challenges presented by the pandemic, our first quarter of 2020 demonstrates that our financial discipline and prudent actions have us well-positioned for a quick return as we see demand in each of our markets for development and growth. “With the onset of the pandemic, we quickly took action to protect our employees, tenants, customers and communities, as well as further secure the financial footing of our company. A successful common stock offering generated $594 million, which, along with debt financing and overhead reduction, has provided us the liquidity and flexibility to continue to make the best long-term value decisions. In addition, the equity raise gives us the ability to execute on value-creating projects in this challenging environment.”

Brookfield Property Partners (NASDAQ:BPY) announced its intention to commence a substantial issuer bid to purchase up to 74,166,670 of BPY’s limited partnership units from public unitholders for a price of $12.00 per Unit, representing a 17.6% premium to the Unit price on the Nasdaq Stock Market as of market close on July 1, 2020. The total value of the Offer is approximately $890 million. This Offer will also be made to holders of exchangeable limited partnership units of Brookfield Office Properties Exchange LP on an as exchanged basis, and, subject to certain exceptions discussed below, holders of securities that are exchangeable into Units prior to or at the time of the Offer. For greater clarity, the Offer will not be made for Class A Stock, par value $0.01 per share of Brookfield Property REIT Inc., which will be the subject of a concurrent and separate offer by BPYU. BPYU Shares must be exchanged into Units for a holder to participate in this Offer.

Zillow Group Inc. (NASDAQ:Z) resumed buying homes in five more markets, and is now buying homes again in 201 of the 24 markets where Zillow Offers has launched. Home sellers in Los Angeles, Riverside, Calif., Minneapolis, Cincinnati and Orlando can once again sell their homes directly to Zillow with a safe, convenient transaction and on their own timeline. Zillow paused buying homes through Zillow Offers on March 23 in response to housing market uncertainty and public health concerns related to COVID-19. “Home sellers want a more convenient, seamless and safe way to sell their home, and we’re excited to bring Zillow Offers back to more sellers around the country,” said Zillow President Jeremy Wacksman. “The rapid adoption of technology and virtual tools is creating a new and safer landscape for the entire real estate experience. With Zillow Offers, a homeowner can sell their house without any of the traditional hassles of open houses, home showings or prepping a house for sale, and can have more certainty and control than ever before – all on their own timeline. ”

Realogy Holdings Corp. (NASDAQ:RLGY) announced AARP® Real Estate Benefits from Realogy, the first-ever real estate benefits program designed for the nearly 38 million AARP members, is now live. The new offering allows AARP members to receive $300 to $5,500 when buying or selling a home with a participating agent affiliated with one of Realogy’s trusted residential real estate brands, including Better Homes and Gardens® Real Estate, Century 21®, Coldwell Banker®, Corcoran® and ERA®. “Realogy is committed to delivering high quality real estate services to our consumers during these difficult times,” said Katrina Helmkamp, President and CEO of Realogy Leads Team and Cartus. “The AARP Real Estate Benefits from Realogy program, paired with technology used for virtual home showings, is empowering Americans 50 and older to choose how and where they live, but also allowing us to serve them with our expertise even in times of uncertainty.”

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media which has a partnership with www.wallstreetnation.com is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media, which has a partnership with www.wallstreetnation.com, is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement between Winning Media (partners of www.wallstreetnation.com) and International Land Alliance, Inc, Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for International Land Alliance, Inc. We own ZERO shares of International Land Alliance, Inc. Please click here for full disclaimer.

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Investment

Want to Outperform 88% of Professional Fund Managers? Buy This 1 Investment and Hold It Forever. – The Motley Fool

Published

7 hours ago

April 19, 2024

You don’t have to be a stock market genius to outperform most pros.

You might not think it’s possible to outperform the average Wall Street professional with just a single investment. Fund managers are highly educated and steeped in market data. They get paid a lot of money to make smart investments.

But the truth is, most of them may not be worth the money. With the right steps, individual investors can outperform the majority of active large-cap mutual fund managers over the long run. You don’t need a doctorate or MBA, and you certainly don’t need to follow the everyday goings-on in the stock market. You just need to buy a single investment and hold it forever.

That’s because 88% of active large-cap fund managers have underperformed the S&P 500 index over the last 15 years thru Dec. 31, 2023, according to S&P Global’s most recent SPIVA (S&P Indices Versus Active) scorecard. So if you buy a simple S&P 500 index fund like the Vanguard S&P 500 ETF (VOO -0.23%), chances are that your investment will outperform the average active mutual fund in the long run.

Image source: Getty Images.

Why is it so hard for fund managers to outperform the S&P 500?

It’s a good bet that the average fund manager is hardworking and well-trained. But there are at least two big factors working against active fund managers.

The first is that institutional investors make up roughly 80% of all trading in the U.S. stock market — far higher than it was years ago when retail investors dominated the market. That means a professional investor is mostly trading shares with another manager who is also very knowledgeable, making it much harder to gain an edge and outperform the benchmark index.

The more basic problem, though, is that fund managers don’t just need to outperform their benchmark index. They need to beat the index by a wide enough margin to justify the fees they charge. And that reduces the odds that any given large-cap fund manager will be able to outperform an S&P 500 index fund by a significant amount.

The SPIVA scorecard found that just 40% of large-cap fund managers outperformed the S&P 500 in 2023 once you factor in fees. So if the odds of outperforming fall to 40-60 for a single year, you can see how the odds of beating the index consistently over the long run could go way down.

What Warren Buffett recommends over any other single investment

Warren Buffett is one of the smartest investors around, and he can’t think of a single better investment than an S&P 500 index fund. He recommends it even above his own company, Berkshire Hathaway.

In his 2016 letter to shareholders, Buffett shared a rough calculation that the search for superior investment advice had cost investors, in aggregate, $100 billion over the previous decade relative to investing in a simple index fund.

Even Berkshire Hathaway holds two small positions in S&P 500 index funds. You’ll find shares of the Vanguard S&P 500 ETF and the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) in Berkshire’s quarterly disclosures. Both are great options for index investors, offering low expense ratios and low tracking errors (a measure of how closely an ETF price follows the underlying index). There are plenty of other solid index funds you could buy, but either of the above is an excellent option as a starting point.

Adam Levy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.

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Index Funds or Stocks: Which is the Better Investment? – The Motley Fool Canada

Published

11 hours ago

April 18, 2024

Canadian investors might come across a lot of arguments out there for or against index funds and stocks. When it comes to investing, some might believe clicking once and getting an entire index is the way to go. Others might believe that stocks provide far more growth.

So let’s settle it once and for all. Which is the better investment: index funds or stocks?

Case for Index funds

Index funds can be considered a great investment for a number of reasons. These funds typically track a broad market index, such as the S&P 500. By investing in them you gain exposure to a diverse range of assets within that index, and that helps to spread out your risk.

These funds also tend to have lower expense ratios compared to an actively managed fund. They merely passively track an index rather than a team of analysts constantly changing the fund’s mix of investments. This means lower expenses, and lower fees for investors.

Funds also tend to have more consistent returns compared to individual stocks, which can see significant fluctuations in value. You therefore may enjoy an overall market trending upwards over the long term. This long-term focus can then benefit investors from the power of compounding returns, growing wealth significantly over time.

Case for stocks

That doesn’t mean that stocks can’t be a great investment as well. Stocks have historically provided higher returns compared to other asset classes over the long run. When you invest in stocks, you’re buying ownership of stakes in a company. This ownership then entitles you to a share of the company’s profits through returns or dividends.

Investing in a diverse range of stocks can then help spread out risk. Whereas an index fund is making the choice for you, Canadian investors can choose the stocks they invest in, creating the perfect diversified portfolio for them.

What’s more, stocks are quite liquid. This means you can buy and sell them easily on the stock market, providing you with cash whenever you need it. What’s more, this can be helpful during periods of volatility in the economy, providing a hedge against inflation and the ability to sell to make up income.

In some jurisdictions as well, even if you lose out on stocks you can apply capital losses, reducing overall tax liability in the process. And while it can be challenging, capital gains can also allow you to even beat the market!

So which is best?

I’m sure some people won’t like this answer, but investing in both is definitely the best route to take. If you’re set in your ways, that can mean you’re losing out on the potential returns which you could achieve by investing in both of these investment strategies.

A great option that would provide diversification is to invest in strong Canadian companies, while also investing in diversified, global index funds. For instance, consider the Vanguard FTSE Global All Cap Ex Canada Index ETF Unit (TSX:VXC), which provides investors with a mix of global equities, all with different market caps. This provides you with a diversified range of investments that over time have seen immense growth.

This index does not invest in Canada, so you can then couple that with Canadian investments. Think of the most boring areas of the market, and these can provide the safest investments! For instance, we always need utilities. So investing in a company such as Hydro One (TSX:H) can provide long-term growth. What’s more, it’s a younger stock compared to its utility peers, providing a longer runway for growth. And with a 3.15% dividend yield, you can gain extra passive income as well.

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Former Bay Street executive leads push to require firms to account for inflation in investment reports – The Globe and Mail

Published

14 hours ago

April 18, 2024

Former chief executive officer of RBC Dominion Securities Tony Fell is campaigning to require the Canadian financial industry to account for inflation in how it reports investment returns.Neville Elder/Handout

While the average Canadian is fixated on the price of gasoline and groceries, inflation may be quietly killing their investment returns.

Compounded across many years, even modest inflation can deal a powerful blow to a standard investment portfolio. And investors commonly underappreciate the threat.

But a legend of the Canadian investment banking industry is trying to change that.

Tony Fell, the former chief executive officer of RBC Dominion Securities, is campaigning to require the Canadian financial industry to account for inflation in how it reports investment returns.

“I think they will find this very hard to argue against,” he said in an interview. “It’s a matter of transparency and reporting integrity. But that doesn’t mean it will happen.”

Mr. Fell made his case in a recent letter to the Ontario Securities Commission, arguing that Canadian investors are being misled. He has not yet received a response from the regulator.

Canadians with an investment account receive a statement at least once a year detailing how their investments have performed. For the most part, rates of return are calculated on a nominal basis, meaning they have no inflation component factored in.

A real return, on the other hand, accounts for the hit to purchasing power from rising consumer prices.

These figures, Mr. Fell argues, would give investors a clearer picture of how much they have gained from a given investment.

And since Statistics Canada calculates inflation on a monthly basis, the investment industry would already have access to the data it needs to make the switch to real returns. It would be very little trouble and no extra cost, Mr. Fell said.

Still, he said he expects the investment industry will resist his proposal. “The mutual-fund lobby is so strong, and nobody wants to rock the boat too much.”

He points to the battle to inform Canadians of the investment fees they pay. For 30 years, investor advocates have been pushing for improvements to disclosure.

One major set of regulatory changes, which took effect in 2016, required financial companies to disclose how much clients paid for financial advice.

But the reforms left out one major component of mutual-fund fees. The cost of advice is there, but many investors still don’t see how much they pay in fund-management fees, which amount to billions of dollars paid by Canadians each year.

Total cost reporting, which should finally close the fee-disclosure gap, is set to come into effect in 2026. “It’s outrageous,” Mr. Fell said. “That should have been done years ago.”

So, it’s hard to imagine the industry warmly receiving his proposal, or the regulators enthusiastically pushing for its consideration.

The OSC said it agrees that retail investors need to be attuned to the effects of inflation, which is where investment advisers come in. “Professional advice requires an assessment of risk tolerance and risk appetite in order for an adviser to know their client, including the effect of the cost of living on achieving their financial objectives,” OSC spokesman Andy McNair-West said in an e-mail.

And yet, Mr. Fell said, the need exists for more formal reporting of inflation-adjusted performance.

Inflation often goes overlooked by the industry and investors alike. It can be seen in the celebration of stock indexes at all-time nominal highs, which wouldn’t look so great if inflation were factored in.

The inflationary extremes of the 1970s provide a stark illustration. In 1979, the S&P 500 index posted a total return of 18.5 per cent – a blockbuster year until you consider that inflation was 13.3 per cent.

That took the index’s real return down to a lacklustre 5.2 per cent.

More recently, investors in Canada and the United States piled into savings instruments promising 5-per-cent nominal rates of return. But the rate of inflation in Canada averaged 6.8 per cent in 2022, more than wiping out the return on things such as guaranteed investment certificates, in most cases.

“A lot of people don’t connect those dots,” said Dan Hallett, head of research at HighView Financial Group. “Over 10 years, even 2-per-cent inflation really eats away at purchasing power.”

He worries, however, that reporting after-inflation returns may confuse average investors, many of whom still fail to understand the basic investment fees they’re paying.

All the more reason to get Canadian investors thinking more about inflation, Mr. Fell argues.

“The impact of inflation on investing is sort of forgotten about,” he said. “The only way I can think of turning that around is to highlight it in investors’ statements.”

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