Perhaps you can’t afford to live in Malibu, but if you can afford to drive a Malibu, read on; you are about to be introduced to a lifestyle in Paradise equal to or better than Malibu at a fraction of the cost!

In 1997 we purchased a beautiful, newly constructed villa located in the Sierra Madres overlooking Banderas Bay and El Centro, the downtown area of Puerto Vallarta, Mexico. During the first four years of living in PV, we doubled the size of the villa bringing it to nearly 20,000 square feet of construction. It has been featured in a number of architectural books and real estate magazines and was shown many times on the nationally syndicated TV program, “Famous Homes and Hideaways”.

That being said, a very unusual incident recently occurred when we received a phone call from a film studio in Mexico City requesting an opportunity to preview our villa with a group of executives from the Disney Company in Los Angeles. They were searching for the ideal set for filming a new project titled “South of the Border” which is to be released in 2008. It is cute story about a Beverly Hills socialite that lost her chihuahua while visiting a spa in Mexico. The story was actually taken from the true story about Paris Hilton and the pup that she thought was stolen but was left with her grandmother. The folks from Disney toured the villa, loved what they saw, but rejected it as a possible movie set. The story is to take place in Beverly Hills and they said that although the villa is furnished like the finest mansions in Beverly Hills, the location was too much like Malibu. Since our villa is not going to be the movie set for “South of the Border”, as a consolation, we’ll just have to continue living in an area just like Malibu!

Recently, we had a realtor friend from Santa Cruz, California visit us. After touring our villa, she informed us what she estimated the selling price would be if we were in Malibu. We are absolutely flabbergasted every time that we’re told that our villa would sell for three or four times as much if it were in California. In all probability, we couldn’t afford to live there! Located on the Mexican Riviera, our view in Vallarta is equal to or better than Malibu and the weather is substantially better during the seven month “high season” of November through May.

In Vallarta there are thousands of new houses and tens of thousands of new condos, all having sweeping views of Banderas Bay, El Centro or downtown, and the Sierra Madres. Palm trees, flowering amapa trees, orchids, bougainvilleas, and other tropical vegetation abound. Multi-colored parrots and tropical birds are routinely seen as they live in the neighborhoods of Vallarta.

The climate has to be one of the finest on the planet with an average daily temperature of 73°F, highs of 83°F and lows of 64°F, during the “high season”. There is normally one wet day per month during that period with an average of .6 inch of rain, which if it occurs, will do so in the evening.

The houses and condos in PV include all the amenities found in any houses or condos in the States, however, their costs are approximately half of what they are in Florida and a third of what they are in California. Malibu, forget it! Property taxes are .1% of the selling price. During the ten years that we’ve lived here, there have been no property tax hikes and no property revaluations, even though values have tripled.

It’s difficult to imagine what the property taxes on our villa would be if it were located in Malibu. As another note of interest, you pay no capital gains tax on the sale of property in PV if you can show that it was your primary residence for more than five years. On the downside, mortgages are somewhat difficult to obtain and therefore, most properties are paid for in full upon purchase. Also, when living on the Mexican Riviera, foreigners do not receive title and deed to their property. Instead, the property is held in a 50 year trust where we have the exclusive right to usage. Unfortunately, we’ll probably not survive the 50 year period, however if we do, it will be automatically renewed for another 50 year period. Upon death, our heirs receive the trust and can renew it for another 50 years. Upon sale, the buyer sets up a new 50 year trust. The trust is as safe as holding title and deed and is virtually untouchable by any entity.

Perhaps we can’t afford to live in Malibu but maybe, just maybe, we have something here in the Paradise known as Vallarta that is a little nicer than anything in Malibu!

By: Jim Scherrer

As retirees and 12 year residents of Puerto Vallarta, Mexico, it?s quite easy to extol the benefits of living in Mexico. Of course, not every part of Mexico is the same (as is true in the US or Canada); however, we can certainly vouch for Puerto Vallarta.

Invariably, when North Americans visit Puerto Vallarta, Mexico, they have such a good time under absolutely ideal conditions, that they hate to leave. Upon returning home, many start planning their next trip to Vallarta and can only dream about retiring here someday. The fortunate ones, either currently retired or about to retire, often start thinking about how they can own a piece of Vallarta and spend at least a part of their retirement in Paradise.

Many visitors interested in pursuing the idea of retiring in Vallarta will rent a condominium during their first extended stay, and while doing so, will experience all the benefits Vallarta has to offer, and will explore the market for condos and/or villas. Once they have determined that Vallarta will be their full time or part time retirement destination, they are ready to start considering which is most appropriate for them, a condo or villa.

There are certain aspects of condo and villa ownership that are constant; for seven months from November through May, the climate will be ideal, there will be numerous activities to enjoy and an abundance of friends to enjoy them with, and every condo or villa will have a panoramic, breathtaking view of the Banderas Bay and the Sierra Madre mountains.

The following discussion is to address the differences between condo and villa ownership.

The first variable that most consider is the percentage of time expected to be spent in Vallarta each year. For those planning full retirement in Paradise, a villa with staff might be the best choice; association fees are minimal, there are no neighbors or renters upstairs, value appreciation is most favorable, furniture and personal items can be shipped into Mexico making living conditions more similar to back home, and most importantly, the old house in the US or Canada can be liquidated, thus freeing up the capital for retirement and travel.

Those planning part time residency in PV might favor condo ownership; they will be close to many of the restaurants, shopping areas, and activities, they will be able to turn the key and forget about it at the end of the ?high season?, they will have an opportunity to generate rental income while away, their maintenance expenses will be minimal, and they will retain their permanent family residence back home.

The second variable to consider would be the number of friends & family that might be expected to visit each year. When you live in Paradise, you?ll be amazed at how many ?dear friends? you had back home! Of course, the smaller the condo, the fewer ?dear friends? you?ll have. Whereas, if you own a grand villa, you?ll have more ?dear friends? than you ever knew you had.

The third variable has to do with the age and health of the retiree. A younger retiree might favor a villa where he can call it home, living there as he would in any permanent residence, without having that temporary or transient feeling. Also, since most of the villas are located on the mountainside, they are usually multi-story and involve stairs, thus presenting obstacles for those less fit. Maintenance of a villa requires much more time, effort, and money and therefore, to many of the older or less healthy retirees, it alone might rule out villa ownership. Typically, the older retirees find the advantages of condo life outnumber those of villa ownership, whereas the younger retirees with many healthy years ahead of them, prefer villa ownership.

Due to the ever increasing cost of land, as a ?rule of thumb?, you can use an average cost per square foot for a villa of $250, whereas the average cost for a condo would be a little less, at $200 per square foot. Of course, there are many properties in Vallarta that sell for substantially less, however, we?re only considering those with magnificent views and all of the modern amenities. On the surface, these prices may seem high, however, similar properties with comparable views would be two to three times as much in the States. Furthermore, association fees are much less and property taxes are negligible in Mexico.

An additional consideration that every retiree must have relates to real estate future values. In Mexico in general, and in Puerto Vallarta specifically, there is no housing slump or fear of recession, as prices continue to escalate at a rate of 10% or more per year.

All properties, whether condos or villas, are purchased through 50 year trusts, held by a designated bank. These trusts give the holder exclusive right to property usage for 50 years and can be renewed after 50 years, can be given to a designated beneficiary upon death and then renewed for another 50 years, or can be sold, allowing the buyer to renew the trust for new 50 year term. These bank trusts are as safe as the title and deed used in the States or Canada; plus, since they are Mexican bank trusts, they are virtually untouchable by any outside entity.

Since all real estate legal transactions in Mexico are done in Spanish, it is imperative that the buyer is represented by a qualified attorney. Also, much of the Mexican coastal land is classified as ejido land, and as such, was designated by the Mexican government many years ago to be used by the natives as farm land. North Americans are unable to purchase some of this beautiful coastal land and therefore, any North American retiree considering real estate ownership in the Vallarta area, must have competent representation to assure them that the land is appropriate for foreign ownership.

Due to the differences in laws and language, an exclusive buyer?s agent is a prerequisite in order to avoid the potential pitfalls associated with real estate purchases in Mexico. Having a truly professional agent with 100% buyer dedication and loyalty will assure you a safe and pleasant real estate purchase, regardless of whether you?re buying a condo or villa in Paradise.

Mexico! Just remembering your first trip across the border to Tijuana, Mexicali, Nogales, Juarez, Nuevo Laredo, Reynosa, Matamoros or any other border town probably conjures up thoughts of poverty.

Our first introduction to extreme poverty was 25 years ago near the outskirts of Mexico City and we’ll never forget it. Although poverty still exists in Mexico, it is nothing like it was due to the stable peso and the Mexican economy booming for the past decade. Furthermore, comparing resort cities on the Mexican Riviera to border-towns is like comparing Beverly Hills to Bangladesh!

We have been coming to Puerto Vallarta, Mexico, referred to as PV or Vallarta by the locals, and have owned property here since 1984. In 1997 we purchased a beautiful new villa and made it our permanent residence. It has been a wonderful investment, having tripled in value during the past ten years. In 2002 we invested some money in the Mexican Bolsa, or stock market, at 3.25 pesos per share. That investment currently trades at 11.55 per share, yielding a 255% gain. During those five years the Mexican peso has held firm at about 10.8 pesos per US dollar.

When we moved to PV ten years ago, women sitting on sidewalks nursing their babies, hand out, and cup in front were commonplace. The few cars and old buses were often dragging or missing their mufflers, were often dinged and dented beyond recognition, and always such a variety of colors that it was virtually impossible to ascertain their original color. The streets and sidewalks were filthy and need of repair and stores looked like what one would expect in a sleepy little Mexican fishing village. Unemployment was high and help readily available for $10 per day. None of the streets had signs or centerlines, making driving your basic free-for-all. Ten years ago, prices in the stores and restaurants were relatively low because labor was cheap, they had only locally produced products, and very few had air-conditioning. Even in Vallarta, there was some degree of poverty, yet one could survive due to the low standard and related cost of living.

Things have changed drastically in PV during the past ten years. The Mexican economy is booming and it’s especially true in Vallarta as a result of tourism. There is virtually full employment with the majority of the younger Mexicans speaking some degree of English since income is approximately three times as much if one speaks and understands English.

Ten years ago, we had a cruise ship visit PV every other day whereas now, with the new maritime terminal, we have two or three cruise ships here daily. The International Airport is roughly four times the size it was ten years ago with flights arriving and departing constantly. A second International Airport is currently in the planning stages. The prices of real estate have roughly tripled during the past ten years as have the prices of materials and labor.

With the economy booming and full employment, the majority of the locals now own their own cars and a good portion of them are new. Most all the buses are new and clean and seldom do you ever see a clunker with its muffler dragging behind. In fact, the standard of driving has been substantially improved because the locals are proud of and take care of their new cars. All the streets are now clearly marked, often lined with palms, and kept immaculate. All of the thoroughfare roads are either new or have been doubled in size with new bridges, lighting, etc. There are so many cars now in PV that congestion and parking have become the main problems in our beautiful Paradise. Three new parking garages have been built downtown during the past four years; one above ground and two below ground with public parks above. The old stores are either being renovated or torn down and replaced with beautiful new buildings.

Because there is such opportunity available in Vallarta, the level of education is constantly improving at the new University of Guadalajara campus which provides the ideal setting for thousands of young Vallartenses to receive advanced educations. The booming economy has attracted some of the finest doctors and dentists in Mexico, many educated in the States or Europe. With the increase in talented doctors and dentists, two large medical centers housing sophisticated state-of-the-art equipment have been built in the past five years.

Fine restaurants abound in PV, all having clean and modern kitchens, providing employment for thousands of workers as do the many modern hotels. New high rise condos and those currently under construction are seen everywhere providing great employment for thousands of construction workers.

In the evenings during “high season”, November through May, when everyone is out dining or partying, the streets almost resemble New York with the yellow taxis everywhere. In fact, the Malecon, or walkway along the beach, has more people visiting the sites and shopping at midnight than it does at noon.

The sleepy little Mexican fishing village is no longer sleepy nor little, with a population now exceeding 350,000 residents. During the “high season”, PV rocks for about 18 hours a day. One must wonder whether those sidewalk women ever got jobs or moved to Los Angeles. There is certainly no poverty to be seen in Vallarta today!

Mexico on $5 a day? Sure, not a problem if you can survive on four cervezas during the day and sleep in a tent pitched somewhere in the woods during the night. Of course, if you live on the Mexican Riviera, you’ll only be able to afford a couple cervezas a day but you will be able to sleep on the beach!

In 1997, we moved to Puerto Vallarta, Mexico, known as Vallarta or PV by the locals, and inevitably, when meeting folks in the States, we’re asked why in the world we would live there. Most assume it’s due to the low cost of living in Mexico and that one can do just fine on Social Security.

The reasons why we have lived in Vallarta for ten years have very little to do with the cost of living. One of the reasons has to do with the latitude of Vallarta which is the same as Hawaii, resulting in a climate absolutely perfect for golfing, fishing, tennis, hiking, swimming, or whatever your hobby is for seven months a year, November through May.

The population of PV, our sleepy little Mexican fishing village located on Banderas Bay on the Pacific Ocean, just surpassed 350,000 making it equal in size to Anaheim, California or twice the size of Boise, the capital of Idaho. Of the 350,000 inhabitants, there are close to 50,000 North Americans during the seven month “high season”. They have retired here in order to enjoy the many world class restaurants, seven magnificent golf courses, world class deep sea fishing, modern supermarkets and shopping malls, and night life galore. Most of these North American residents of Vallarta have satellite TV with 350 channels, high speed internet service, air conditioning, and all the other modern conveniences that could be found in the States. Clean water, clean food, modern hospitals with the latest in sophisticated equipment for first class medical care, and a high regard for safety will be found here in PV. Actually, there are very few reasons not to live in Vallarta.

We haven’t lived here for ten years because it’s cheap! As an example, gasoline is about 8 pesos per liter or $4.00 per gallon. Electricity is about the same as in the US, while telephone calls to the States are about four times as much as the same calls from the States. Food in the supermarkets is about the same as in the US; the imported products are much more, while the locally grown products may be much less. Imported hard-goods, such as electronics, at Sam´s Club, Walmart, or Office Depot, can be twice as much as the same products in the States. Automobiles are approximately 20% more expensive, imported clothing 50% more expensive, etc. From a residents perspective, NAFTA isn’t working too well because all imported items are taxed to the hilt and cost substantially more than they do in the States.

Housing, on the other hand, is generally much lower than in the States. Of course, this depends on where in the States and where in PV, but as an example, a small house in Central Florida would compare to a casita in PV with no view and would cost twice as much. A grand estate in Pebble Beach would compare to a luxurious villa on the hillside overlooking Banderas Bay and would cost two to four times as much. A 2,000 square foot condo in St. Petersburg, Florida, similar to one in the Marina Area of Vallarta, would cost roughly twice as much. On average, one can safely assume that housing costs in PV are approximately half of that in the States, keeping in mind that housing prices have almost tripled during the ten years we’ve lived here. One difference is that the house and condo values have been softening in California and Florida during the past year, while the boom in PV is expected to continue for at least another ten years. As the baby boomers retire and discover Vallarta, the demand for new houses and condos increases, as do the costs for land, materials, and labor, resulting in escalating real estate prices. Forecasts suggest that property values will double in the Vallarta area during the next five years.

There are a couple other significant housing related differences. The first has to do with real estate or property taxes. The annual predial or property tax in Mexico is about .1% of the purchase price of the property.

Assume you bought a condo in PV for $200,000 ten years ago, keeping in mind that it was twice as much as you could have bought in the States. It’s value today would be about $600,000, however it’s still on the books as $200,000 and it’s annual taxes are approximately $200. A condo with the same cost basis of $200,000 ten years ago located in Florida or California could be taxed anywhere from $5,000 to $15,000 today and remember, this $200,000 condo would have been half of what you could have purchased in Vallarta. Also, if you’re a resident for more than five years in Vallarta and can show that it’s your primary residence, there is no capital gains tax upon the sale of your property. Annual automobile taxes and consumption taxes are equivalent to those in the States.

First class medical and dental care is available in Vallarta at roughly half the cost of that in the States. Skilled technicians for auto repair, electronics repair, carpentry, plumbing, air conditioning, and electrical work are about the same as in the States. Of course, there are many non-professionals available in PV that will work for half the price, but you get what you pay for! The one exception has to do with masonry. For a fourth the price of that in the States, you can have beautiful granite counter tops, marble floors, tile work such as pools, etc. Another major cost difference is that of unskilled labor such as maids, gardeners, or handymen. They are readily available for $20 per day but don’t expect the most efficient work in the world. Again, you get what you pay for!

In summarizing, the cost of living in Vallarta is probably somewhat lower than that in Florida and substantially less than California, given similar standards. It is probably higher than Milwaukee, Wisconsin or Cincinnati, Ohio but there’s no comparison in life styles.

One thing is for certain, we don’t know of any Americans or Canadians living in PV solely on their Social Security payments. In order to live on a tight budget in Mexico, you have to head inland, away from the tourist areas, away from Paradise, and can expect a totally different life style. For the money, Vallarta is extremely hard to beat, but it’s certainly not cheap!

How would you like to have a really intelligent, honest and well educated president? How about a Harvard graduate? Well, would you believe that Mexico has a 12 consecutive year run of Harvard alumni presidents? They have had a dramatic effect on the Mexican economy in general and real estate values specifically.

Prior to the new millennium, the Institutional Revolutionary Party (PRI) or its predecessor revolutionary parties, had held power for over 70 years in Mexico and was a member of Socialist International. Thanks to the PRI philosophies toward nationalization, expropriation, authoritarianism, and state control of the economy, Mexico held a Third World status for 80 years. With those philosophies, Mexico was probably not the best place for foreigners to invest in real estate, or for that matter, anything else.

The situation in Mexico changed dramatically in 2000 when Vicente Fox of the National Action Party (PAN) first took over power for a six year presidential term lasting until 2006. Prior to his presidency, Fox had earned a Top Management Skills degree from the Business School of Harvard University and had then worked his way up to the presidency of Coca Cola Mexico and head of all Coca Cola Latin America. He was one of the few Mexican presidents to avoid a major economic upheaval during office, whereas previously, the Mexicans were accustomed to devastating peso devaluations. During the ten years that we’ve lived in Puerto Vallarta, Mexico, the peso has held firm at about 10.8 pesos per US dollar.

Fox?s term expired in 2006, when his successor, Felipe Calderon, also with the PAN party, won a very close election. Calderon holds a Master of Public Administration degree from the John F. Kennedy School of Government at Harvard University, and will serve as President of Mexico until 2012. He supports balanced fiscal trade, flat taxes, lower taxes, and free trade. His motto is to Drive Mexico Into the Future which represents privatization, liberalization, political freedom, and market control of the economy.

These two Harvard graduates have taken Mexico from a Third World Country to a Newly Industrialized Country (NIC) in a very short period of time and are continuing to advance the economy. As an NIC, Mexico has joined the ranks with countries such as China, India, Brazil, Turkey, etc. en route to becoming First World Industrialized Countries. Recently, Mexico has changed from being a beneficiary to a full contributor to the United Nations Development Program. The Mexican Bolsa, or stock market, has more than tripled during the ten years that we’ve lived in Vallarta. The PRI party, still holds local power in the poorest states of Mexico; those where the inhabitants have the least education and are still waiting for subsidies from the government. However, the state of Jalisco where the capital is Guadalajara and the second largest city is Puerto Vallarta, is one of the many states where the local PAN party is in power. This change in power has been quite remarkable and evident in Vallarta during the last seven years.

During the past seven years, the Mexican government has spent billions of dollars improving and upgrading the infrastructures throughout the resort destinations. Puerto Vallarta has new water treatment facilities, power distribution systems, hospitals, university, upgraded airport, maritime terminal, highway system, etc. and is being prepared for the next five years of growth.

We have owned property here in Vallarta, located in the foot hills of the Sierra Madres overlooking Banderas Bay on the Pacific Ocean, for 24 years and have made Paradise our permanent residence for the past ten years. During the first 15 years, there were virtually no changes made here and the property values reflected it. However, during the years that PAN has been in power, the changes have been obvious and dramatic. Our villa has tripled in value and is expected to double again in the next five years as the baby boomers discover Paradise.

Puerto Vallarta, Mexico, the once sleepy little Mexican fishing village located in the foothills of the Sierra Madres on Banderas Bay along the Mexican Riviera is no longer sleepy or little. The population has literally exploded since the filming of ?The Night of the Iguana? in 1963. Vallarta has grown from 2,000 inhabitants prior to 1963 to the current figure of 350,000 inhabitants in 2007.

Aside from having a progressive government in power, the following are some of the other reasons accounting for this explosive growth:

Climate–Located on the same latitude as Hawaii, the seven month ?high season? of November through May has an average daily temperature of 73*F with virtually no chance of rain.

Scenery–Vallarta, located in the foothills of the Sierra Madres on the Banderas Bay, one of the largest and most beautiful bays in the world, is in the center of the Mexican Riviera on the Pacific Ocean. Beautiful beaches, rocky cliffs, mountain sides overlooking the bay, tropical flowers and wildlife, and all the sights that one would expect to find in Paradise.

Safe–With tourism being the life blood of the economy, North Americans are ?off limits? regarding any sort of criminal activity. Since guns are strictly prohibited in Mexico, burglaries, robberies, etc., are virtually unheard of. The primary objective of most all of the young generation of natives is to assure all North Americans a pleasant and safe visit to Paradise so that they?ll return soon and often. Fear of a terrorist attack in Vallarta? Forget it!

Friendliness–In 2001, a readers poll taken by Conde Nast magazine listed Vallarta as the friendliest resort destination in the world. The locals treat North Americans with dignity, respect, and as friends, family, and almost as royalty.

Clean Food and Water–The explosive population growth has caused a complete revamping and expanding of the city infrastructure. This includes the road system, power generation and distribution, and of course, water treatment and distribution systems. The water is pure and safe to drink from the tap throughout the city. All food products are now available in the many new modern supermarkets equal to the finest in the States. Food for home or restaurant consumption is closely monitored for cleanliness and controlled as in North America.

Medical care–Two new huge modern hospitals and one smaller modern clinic in Vallarta are fully capable of handling all emergencies as well as complicated surgeries. Modern dental clinics are also in Vallarta offering crowns, caps, implants, as well as all the basic dental practices. All of the doctors and dentists speak English and many of them have had at least some professional training in the States.

Friends–Every North American that you see in Vallarta, and they are easy to spot, is either on vacation or retired, i.e., none of them have to go to work tomorrow! They are all open to new friendships and new comers are always welcome. It?s one big party with no looming pressures of the office or the commuter drive in the morning.

Language–Because the economy in PV is based on tourism, it is imperative to speak English. Therefore, it is estimated that at least 80% of the younger generation is now speaking or at least understanding English. Communication is not a problem in Vallarta and there is no need to learn Spanish.

Travel Time–Although Vallarta is on the same latitude as Hawaii, it is only two to three hours from most of the US cities. Even the highways coming down from the US are now all super modern tollroads and the drive to PV can be made in two days from the border.

Connectivity–With high speed internet service available citywide, internet based telecommunications, and satellite TV available everywhere, you have the same contact with the world that you would have anywhere in the US or Canada.

Activities–World class deep sea fishing has been for years, and will always be, a major activity in Vallarta. There are now seven beautiful golf courses with more under construction. There are hundreds of tennis courts, water activities, night life galore, and too many clubs and organizations to mention. If you have nothing to do in PV, it?s only because that?s your choice!

Cost of Living–The cost of basic staples is about the same as in North America, however, housing is roughly half the cost and housing related taxes are a fraction of those in the States. All services are a half to a third of those in the US including medical and dental care because labor rates are so much lower. The cost of dining, outdoor activities, etc., are pretty much in line with those in the States.

Economic Security–The Mexican peso, at approximately 10.8 pesos per US dollar, has held firm for the past ten years. There are no devaluation concerns at this time as the Mexican economy booms.

Political Security–The PAN party has ruled in Mexico since 2000 and will remain in power at least until 2012, assuring a twelve year consecutive run of Mexico being governed by Harvard graduates! Needless to say, they are pro-US and friendly to the North.

Investment–Property values have tripled during the past ten years and are expected to double again during the next five years. With the booming economy, the Mexican stock market has also tripled during the past ten years. There is no slow down of growth in the foreseeable future.

Hopefully, the above 15 items will provide some explanation for the booming economy and explosive growth in Vallarta. They say that the party?s not over, that it has only just begun.

The Mexican National Tourism Development Foundation (Fonatur), has designated a 30 mile stretch of pristine Pacific Ocean shoreline north of Vallarta as the new Riviera Nayarit, where more than five billion dollars will be invested during the next ten years creating 30,000 new jobs as they build close to 20,000 new condos, villas, hotels, etc. As the North Americans continue to flock to Paradise, the infrastructure growth and future planning activities continue at a torrid pace.

Fortunately, Mexico has been governed by US friendly Harvard graduates for the past seven years and will be for at least the next five years, thus assuring a safe and secure real estate investing environment well into the future for retiring North Americans. If you?re retired or close to retirement, you ought to check out Vallarta before it?s too late. If you?re fortunate, you?ll be included in the next 100,000 gringos that migrate to Paradise!

Have you heard the horror stories about traveling through Mexico? Worst yet, can you imagine living there?

Well, being the adventurous and courageous retirees that we are, in 1997 we bought a beautiful new mountainside villa overlooking Banderas Bay and El Centro, or downtown in Puerto Vallarta, Mexico. The villa is actually a compound, surrounded by 10 foot walls with a walk-in gate and doors for car entry.

Our initial thought while closing the doors during our first evening in our new villa was to hire a couple sentries to guard the villa at night. One could be positioned in front and the other down below on the backside facing the bay, thus providing the security required in this foreign new land.

Well, we never got around to hiring those guards and furthermore, we?ve never heard of anyone being burglarized in the neighborhood for the past ten years. Municipal Police do cruise through the neighborhood a few times every night and we do have excellent street lighting; however crime in the neighborhood, known as the ?Beverly Hills of Vallarta?, is virtually non-existent.

Ten years ago, we would be pulled over by the local police every two or three months for any of a myriad of concocted reasons. It was the typical corrupt Mexican police shake-down where after you handed him 200 pesos or $20, you were no longer guilty of breaking any laws or committing any crimes. You instantly became his amigo! That corruption is seldom seen anymore in Vallarta and we haven?t been pulled over by the police for a number of years. In fact, they seemed to have gone 180 degrees the opposite direction being very friendly to all Americans and Canadians.

The city of Puerto Vallarta, referred to as PV or Vallarta by the residents, has exploded in population during the past ten years to the current level of 350,000 inhabitants. That growth can be attributed solely to tourism. Virtually every job in PV is based on tourism and without the influx of foreigners from the US and Canada, Vallarta would still be a sleepy little Mexican fishing village. Because tourism is so important, the young locals are taught to treat the Americans and Canadians with dignity, respect, kindness, and as friends. The very last thing they can afford is to have tourists encounter problems while visiting Paradise and to return home with negative feelings about Vallarta. The objective of each and every Vallartense is to assure all tourists an enjoyable and safe time while visiting so that they look forward to returning. The young Mexicans are taught that safety is the prime concern of all visitors and to harm a tourist would be equivalent to taking food or money out of their own family household.

As a side note of interest, there is currently a film, ?South of the Border? being shot here in Vallarta by the Disney Company. It?s a cute story about a chihuahua, owned by a Beverly Hills socialite, that got lost while she was visiting a spa in Mexico. A group of local Mexican chihuahuas found this pup, took care of and entertained it, and then assured its safe return to Beverly Hills. The film will be released in 2008 and will help promote the social, cultural, and economic relations between Mexico and the US. The bottom line being, that the safety and security that one feels in Vallarta is quite comforting and is demonstrated in the film through the life of a chihuahua.

Serious crimes such as murder, rape, kidnapping, etc. are unheard-of in Vallarta. Security is such that armed robberies are virtually non-existent. One reason of course is, guns are not permitted in Mexico. The penalty for carrying a firearm is much more than anyone would ever want to pay.

The one crime that persists in PV is related to drugs. Although the Mexicans seldom use them, they are plentiful for those tourists too ignorant to understand the consequences. The penalty for drug possession and use is so severe that anyone dependent on drugs is best off avoiding Paradise. With full employment in PV, even the art of pick-pocketing is no longer practiced here; it?s just too easy to find a job!

The US and Canadian Consulates in Vallarta are well staffed and ready to assist any tourist with just about any problem that could arise while visiting here.

Even though Vallarta has reached the size of Anaheim or St. Louis, it?s still a small city where everyone seems to know what others are doing. Any crime committed by a local would be known about by many others immediately. Not to be picking on Anaheim or St. Louis, but when comparing Vallarta to cities in the US of similar size, our hunch is that it?s much safer in Paradise!

Not all tourists that visit Mexico are treated the same. As an example, those that come to traffic or use illegal drugs are treated rather harshly in Mexico, resulting in terrible vacations while south of the border! Another one that?s probably not anxious to return to Mexico is Dawg, The Bounty Hunter. He was not treated with a great deal of dignity and respect, however he too might not have closely followed the Mexican laws as he handcuffed his fugitive and hauled him out of the country!

On the other hand, as normal law abiding folks, we have been treated like family, like friends, almost like royalty ever since we began making our semi-annual visits to Puerto Vallarta, Mexico in 1984, when we purchased a condo in Mismaloya, about six miles south of Vallarta. Back in the 80

By: Jim Scherrer

Riviera; the word alone tends to conjure pleasant images of beautiful scenery, of calm serenity or relaxation, even of Paradise. By definition, Riviera is an Italian term originally from the Middle Ages for the coast of Liguria. The two divisions of the original Riviera, both of which border the Ligurian Sea, an arm of the Mediterranean Sea, are the Italian Riviera and the French Riviera. Retirement on either Riviera would be wonderful if you have seriously deep pockets, don’t mind the 10 hour transatlantic flight, and the possible language barrier when you’re there!

Today, the term is more generally applied worldwide to about a dozen warm coastal regions popular with tourists. Mexico is blessed with two such regions; the Riviera Maya and the Mexican Riviera.

The Riviera Maya consists of 80 miles of Caribbean coastline wrapping along the eastern side of the Yucatan Peninsula in the Mexican state of Quintana Roo. It includes the resort cities of Isla Mujeres, Cancun, Playa del Carmen, Cozumel, and Tulum. This region is a terrific area for visiting with its warm weather, sandy beaches, and historic archaeological sites; it may be a different matter when it comes to retirement. The average daily temperature for the “high season” of November through May along the Riviera Maya is 77