Mexicans pulling money out

[jimmiller]

Someone on another thread wondered that foreigners are not investing more in Mexico. If Mexicans are pulling money out why would a foreigner contradict them?

Carlos Slim Buys Fifth Ave.’s Only Private Townhouse

by Josh Barbanel

Updated with correction at 6:38 p.m.

Mexican billionaire Carlos Slim is extending his reach in New York with purchase of a century-old Beaux Arts townhouse on Fifth Avenue for $44 million — one of the most expensive townhouse sales ever in the city.

Last month, Slim paid $140 million for an 11-story office building at 417 Fifth Avenue in Midtown. Slim is a major investor in the New York Times.

Slim built a telecommunications empire in Mexico and now tops Forbes magazine’s list of the richest people in the world.

He owns the townhouse, located on Fifth Avenue at East 82nd Street across from the Metropolitan Museum of Art, through a limited liability company, a technique used by many wealthy buyers. But the deed documents were signed by a lawyer at Grupo Financiero Inbursa, Slim’s financial services company, and the closing was handled by the same New York lawyer who handled Slim’s closing on the Fifth Avenue office building.

Several brokers confirmed that he was a buyer. Slim did not respond to requests for comment.

The townhouse, at 1009 Fifth Avenue, is 27-feet wide and said to be the only private mansion left on Fifth Avenue, after most were knocked down when a wave of apartment towers went up in the 1920s.

The 1901 house, known as the Duke-Semans mansion, was owned by descendants of the original owner, tobacco magnate Benjamin N. Duke, until 2006. The mansion was sold at that time for $40 million — then a record sale in the city — to Tamir Sapir, a former cabdriver who made a fortune in Russian oil and is now a real-estate investor and developer.

Sapir put it on the market in January for $50 million, a time when some of his investments in new developments were coming under pressure, with Paula Del Nunzio, a townhouse broker at Brown Harris Stevens responsible for many of the top townhouse sales in the city.

A few weeks ago word began to circulate in the industry that Del Nunzio had found a buyer for more than $40 million. But brokers said that Sapir later made a direct deal with Slim. The sale closed on July 21, according to property records.

The sale is the fourth highest townhouse sale in the city. The most expensive sale so far was the $53 million sale of a townhouse on East 75th Street just off Fifth Avenue to J. Christopher Flowers, a private equity investor.

[cosalamx]

The richest man in the world buys a home in New York, and you interpret that as evidence that Mexicans are pulling their money out of the country? Are you the poster who, a couple of weeks ago, thought that someone throwing a stone at an Arizona-plated car in Jocotepec was a backlash to the Arizona immigration law? Both beliefs may be true but the examples cited are hardly supporting evidence thereof.

[Intercasa]

I don't see it as him pulling money out but he does have a record of buying things at a low, good price and then making a profit. Perhaps he saw value and a bottoming out off the property type and wanted to get in before prices rose. Multi million dollar properties and places where one can sell them relatively quick was probably a factor for the US vs. Mexico.

It would be entirely another matter if he was selling off stock in his Mexican corporations and holding the funds in US or European banks.

[privado]

I watched "MAD MONEY on MSNBC this week and the MAD man highly recommended investing in Mexico- particularly Femsca?(either Coke or Pepsi stock)

the PESO and Mexican Real Estate

Just because SLIM is buying a NY Townhouse doesn't imply anything other than he wants a great house in New York- where many rich Mexicans already have apartments.

[Jeannie]

http://www.worldpoliticsreview.com/articles/6158/world-citizen-how-latin-america-found-its-groove

Mexico, which suffered one of the deepest recessions in the region, is also turning the corner back to growth.

But the country cannot seem to get away from the reality of the old line: "Poor Mexico, so far from God and so close to the United States."

The Mexican economy will struggle to make major progress as long as the U.S. economy remains sluggish. America buys most of Mexico's exports and provides employment for millions of Mexicans who send billions in remittances back home. All of that income is now under pressure, partly because of slow growth in the U.S., partly because of rising anti-immigrant sentiment north of the border.

Still, Mexico is already entering a period of growth, and is also embracing a business-friendly model with a social conscience.

[cracker]

Hmmmm, as Cosalamx said this is NOT evidence. Most billionaires have a number of homes all over the world.

During the last month, I have met two more families who have left the U.S. and are investing here in Mexico. Buying property etc. This is in addition to others i have met previously.

I would refer to this as reverse migration. I also checked with my broker, who stated that there was absolutely no evidence of people pulling money out of Mexico.

[techy1]

Foreigners are in fact still investing in Mexico, in spite of the challenges posed by cartel violence:

The violence is "absolutely not an obstacle to the development of our business," Carlos Ghosn, CEO of Nissan Motor Co, said during a recent visit to Mexico City.

http://www.msnbc.msn.com/id/38453684/ns/business-world_business/

Foreign business investment continues in Mexico! It seems to me that international CEOs and business leaders have a very different (and a more balanced IMHO) view of the current situation in Mexico than those of the "failed state/money is leaving/its a civil war" crowd. Interesting.

[lorilee]

Having just sold a property here in Ontario Canada and in meeting with our real estate lawyer we were pleasantly surprised to find out that he is one of a group of several who are buying up property all over MX as investors! Their last purchase consisted of a parcel of land that cost $65,000. They then sub divided into 15 parcels and sold each for $65,000. All but 2 lots have been sold.

Not a bad ROI I'd say!

[tobyjug]

Having just sold a property here in Ontario Canada and in meeting with our real estate lawyer we were pleasantly surprised to find out that he is one of a group of several who are buying up property all over MX as investors! Their last purchase consisted of a parcel of land that cost $65,000. They then sub divided into 15 parcels and sold each for $65,000. All but 2 lots have been sold.

Not a bad ROI I'd say!

A huge market being trolled by bottom feeders is foreclosed property in AZ and NV..great rental opportunities etc but longer term returns on investment.

[Ajijic]

OMG You copy and pasted. lmao

The article is evidence of nothing, zip, nada as it pertains to Mexico.

[rufus]

I don't see Carlos Slim's buying a piece of New York real estate as a lack of faith in the Mexican economy. It is more likely a way to get out of US dollars before the Obama inflation hits. People are looking for hard assets. Obama cannot print more real estate. It is probably the safest investment in the US.

Obama says things are getting better, but if that is true, why can't people find jobs? If he defines "better" as being on welfare, food stamps and unemployment, then I guess he sees things getting better.

No one is going to start a business and create jobs when they see the nation going into a socialist system. They are going to hide capital in gold and real estate.

The whole nation cannot live on the dole. As long as the stores are full of Chinese merchandise, people will not be finding jobs. We need to put our own people back to work and forget about free trade. We need to get out of GATT.

We need to concentrate on re industrializing our own nation. We need to stop penalizing hard work and initiative. We need to realize government cannot solve everyone's problems. We need to end class warfare. We need to move away from the income tax so that we can build capital.

The US government ran on tariff revenue until the income tax was implemented. We can do it again.

Rufus

[TWolf]

A smart man, with lots of money, has a diversified portfolio.

Don't be too surprised that the day comes where he launches his own cell phone plan in the US, or buys in heavily to one of the lesser marketed plans that already exists, and expands it.

Can you imagine someone who would offer a "Mexico-US" combined plan, where there is no charge for international calling?

If it did happen, he'd obviously be in the forefront, and his investments in the US is just so he can get inside the business community, feel it's pulse, and find out how accepted he will be.

He's no dummy.

But that's just my opinion.

[Orygun Duck]

If there were any major moves by Mexicans to get money out of the country, it would likely be reflected in the exchange rate. Haven't seen much of a trend in either direction in the past several months.

[Orygun Duck]

I don't see Carlos Slim's buying a piece of New York real estate as a lack of faith in the Mexican economy. It is more likely a way to get out of US dollars before the Obama inflation hits. People are looking for hard assets. Obama cannot print more real estate. It is probably the safest investment in the US.

Obama says things are getting better, but if that is true, why can't people find jobs? If he defines "better" as being on welfare, food stamps and unemployment, then I guess he sees things getting better.

No one is going to start a business and create jobs when they see the nation going into a socialist system. They are going to hide capital in gold and real estate.

The whole nation cannot live on the dole. As long as the stores are full of Chinese merchandise, people will not be finding jobs. We need to put our own people back to work and forget about free trade. We need to get out of GATT.

We need to concentrate on re industrializing our own nation. We need to stop penalizing hard work and initiative. We need to realize government cannot solve everyone's problems. We need to end class warfare. We need to move away from the income tax so that we can build capital.

The US government ran on tariff revenue until the income tax was implemented. We can do it again.

Rufus

Carlos Slim buys a piece of property in NYC and inspires a Teabagger rant! Come out of the 1980s (WTO replaced GATT years ago) or was that the 1880s (pre-income tax). The OP was about Mexico's economic future, yet the Teabaggers will take any opportunity to be heard. The mods aren't doing their job. What's up?

[traderspoc]

chinese are investing mexico,

maybe they see something of value here. as chinese labor is getting more expensive

also million of american retiring soon, where are they going to go.

http://www.allbusiness.com/north-america/mexico/508856-1.html

[carib]

This article was from August 2005, things had change quite a bit in 5 years.

chinese are investing mexico,

maybe they see something of value here. as chinese labor is getting more expensive

also million of american retiring soon, where are they going to go.

http://www.allbusiness.com/north-america/mexico/508856-1.html

[rufus]

Mea culpa, Oregon Duck. I got carried away; I did not mean to offend. Obviously, your view of the future is much more optimistic than mine. Who is more correct? Time will tell.

Rufus

[traderspoc]

investors putting money in mexico bonds like hot caakes

2029 8 1/2% bond YIELD TODAY 7.04 YIELD am, thats a capital gain of 1.46 on the on the bonds, again of over 10% plus the 8 1/2 % thats over 18$ gain on investment since Jan 1 2010

[BillinaBus]

The Duck is right, we'll know when Mexicans are selling pesos to buy anything else, the exchange rate will show it....

[traderspoc]

The Duck is right, we'll know when Mexicans are selling pesos to buy anything else, the exchange rate will show it....

its very simple when the peso is below 12.50 exhange pesos and buy dollars, when the peso is above 13.50 exchnage dollars and buy pesos, and the difference is your profit.

any smart businessman will hedge the currency, to pay lower for goods

[privado]

its very simple when the peso is below 12.50 exhange pesos and buy dollars, when the peso is above 13.50 exchnage dollars and buy pesos, and the difference is your profit.

any smart businessman will hedge the currency, to pay lower for goods

I was told by a Director of an investment bank that has offices here and in the US -that they start buying pesos when the exhange rate is 12.40 pesos to the dollar-and advised me to do the same ----they only deal in multiple millions of dollars- why wait for for 13.50