Mexico Overview.

PopuIation - Mexico's Young Opportunity.

Economy - Hand in hand with the U.S.
FinanciaI Markets - Lessons Iearned?
The Housing Market - A bright future
CoIdweII Banker AffiIiates de Mexico


!!
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
0 - 20 21-40 41-60 61-80 81-100
2012 (115 MiIIion)
2025 (130 MiIIion)
2050 (147 MiIIion)
Mexico's PopuIation
Today, 2025 & 2050
Mexico's Economy
SoIid Growth, strong fundamentaIs.
GDP is expected to grow in a range of 3-4%.
InfIation within the same range.
Reforms needed to Iaunch Mexico into the eIite.
S&P was predicted Mexico wiII one of the top 5 economies by
2050.
As the U.S. goes Mexico goes.
!!
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Mexico
U.S.
Mexico - U.S.
Growth Rates
FinanciaI Market
In 1994 Mexico had its own Sub Prime version.
Today, coverage ratios are 180%.
DeIinquency rates are Iower than 5%.
Bank are extremeIy profitabIe.
For peopIe under the age of 45 this is the first time a mortgage
is a viabIe financing option to purchase their home.
!!
30.3%
21.7%
18.0%
16.3%
14.2% 13.3%
12.7% 12.6%
11.6%
12.5% 12.0%
11.5%
9.99%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(*)
Columna1
Mortgage Rates
(*) OnIy 1
Type of
Mortgage
Loan
FinanciaI Market
Mexicans have serious
mortgage concerns.
The totaI vaIue of aII
Mexican homes is about
USD1.3 triIIion.
(1/30 the U.S. VaIue)
9%
91%
Mortgage Free and Clear
The Housing Market
From my perspective there are 4 very well defined segments in
the Housing Market.
Minimum. (Lacks basic services)
Social. (Government sponsored and subsidized)
Open. ( All market forces apply)
Resort. (Focused on top tier and foreigners)
The Housing Market
There are around 29 miIIion
housing units in Mexico.
The median price per home is
MX 500,000.

10%
65%
25%
Minimum Housing
SociaI Hosuing
Mid, ResidentiaI &
ResidentiaI + Houisng
Mexico at a GIance
Type of Housing Price Range Sq. Meters
Minimum Housing ? ?
PopuIar Housing Less Than MX 233,168 Less Than 40 M
2
SociaI Housing MX 395,200 - 691,600 40 M
2
- 100 M
2
Mid-LeveI Housing MX 691,600 - 1,482,000 Average 100 M
2
ResidentiaI MX 1,482,000 - 2,946,000 100 M
2
- 250 M
2
ResidentiaI + More Than MX 2,946,000 Above 250 M
2
The Housing Market
There is a deficit of 9 miIIion homes.
600,000 new homes are needed every year.
Mexico needs to buiId from 2012 to 2025, 15 miIIion new
homes.
The Government GoaI for 2012 is 1,000,000 housing actions.
Most are centered around popuIar housing.
The Housing Market
There is very IittIe information regarding Mid LeveI, ResidentiaI
and ResidentiaI + Housing
2011= 100,000 new homes buiId in this segments.
2011= 150,000 homes were soId.
Huge Inventory. Days on Market ???. Months of Inventory ????

The Housing Market
AMPI says that there are 120,000 reaI estate practitioners.
OnIy about 2% couId be caIIed "ReaItors."
EstabIished reaI estate companies (CoIdweII Banker, Century
21, Remax, ReaIty Executives, ReaIty WorId, Tecnocasa, etc..)
might have 10,000 reaI estate practitioners.
The Housing Market
2011 = estabIished reaI estate companies have a 10% market
share.
Lack of entry and exit barriers, of reguIation and of tax controI
create an industry in chaos.
The industry cannot move forward because the pIayers do not
want it to move forward.