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Utah Builder to Tap Into Expanding Market in Mexico
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Carlos Reynaga (l) and Bryson Garbett, of Garbett Homes, to build in Mexico. | Garbett Homes, based in Sandy, Utah, plans to build 100-500 townhouses for an underserved but expanding middle-class housing market in Mexico. Bryson Garbett sees the venture as an opportunity to serve a particular market niche and expand his business.
He said he will build townhouses in the $140,000-$170,000 price range styled like the townhouses he currently builds in Utah for first-time home buyers. Garbett already has incorporated as a Mexican business and is currently negotiating to purchase about 30 acres to build on.
Mortgage Reforms Open Mexican Market
Recent reforms in the mortgage and finance market initiated by Mexican President Vincente Fox have given the Mexican middle class access to more options. Mexican banks now offer mortgages of up to $150,000, and Fox hopes to boost the number of mortgages offered from 535,000 in 2004 to 750,000 next year.
Public and private creditors are responding and projecting big gains, as well. This year, BBVA Bancomer, part of Spain's Banco Bilbao Vizcaya Argentaria, plans to boost lending to individuals by 84% and to developers by 64%.
The Utah-Mexico Connection
Garbett is not going into business in Mexico alone, however. He is teaming up with Mexican businessman Carlos Zepeda Reynaga, a chemical engineer with an MBA from Brigham Young University in Utah.
Though Reynaga had no previous experience in the housing industry, he gained much needed insight while attending NAHB’s 2nd International Housing Conference of the Americas in Mexico City in 2004. Reynaga said the conference helped him transition into the housing industry. He and Garbett were able to develop strong business contacts — including developers and representatives from several financial organizations — through the conference as well. In addition, NAHB’s Rita Feinberg, executive director of the International Department, provided them with valuable financing options and contacts.
Mexican Conference Coming in November
The 3rd International Housing Conference of the Americas will be held in Mexico City on Nov. 3-5. For more information or to register, visit www.nahb.org/mexicoconference.
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