Puerto Vallarta Real Estate Articles

Last week, some of the cultural characteristics of North and Latin America were discussed. Knowledge of similarities and differences in cultures help us relate to a buyer or seller of real estate.

These summaries are broad-based and are not meant to be all-inclusive. They are meant to be guides to understanding.

Now let's look at other cultures.

ASIA is home to over 3 billion people, which make up half of the world's population. This is a population ten times larger than the population of North American.

Asia contains some of the fastest growing economies in the world in recent years. Among these countries in the Asian region that are playing a significant role in terms of outgoing or incoming international investment in real estate are: Japan, South Korea, China, Australia, Hong Kong, India, Indonesia, Malaysia, Singapore, Pakistan, the Philippines, Taiwan, Thailand, New Zealand.

Some of the cultural influences, which may affect business practices in this region, include:

1. Hindu, Buddhist and Confucian traditions.
2. Conflict resolution by role authority versus law
3. Legal traditions of civil law versus common law
4. Hierarchical social structure
5. Group priority over individual interests
6. Situational logic based on circumstances rather than on reason
7. Non-linear notions of time
8. A tendency to regard foreigners as outsiders

Note the similarities and differences between North and Latin American cultures.

The following are cultural sketches to help you better relate to another person and are not to be construed as specific or stereotypical.

JAPAN

Cultural: The "Japanese way" is to eliminate tension, promote group spirit and maintain harmony. Vertically structured relationships govern life. Individual rights are subordinated to the interests of the group. Decision-making is reach by consensus. People are racially and culturally very homogeneous: they may have difficulty-accepting outsiders. Logic is flexible and subjective, based on adaptation to circumstances and feelings; rather than on fixed principles.

Doing Business: Use formal references to the person, addressing them by their last name. Never suggest that they call you by your first name. Never discuss serious business at first meetings. The exchange of business cards is important to establish one's credentials. Never write on them or put them into your back -pocket. These first meetings are reserved for establishing a recognized official relationship. To develop relationships further, dinner or entertainment may be conducted after business hours. The Japanese do not like to sign restrictive contracts; they prefer loose arrangements based on trust and good will.

SOUTH KOREAN

Cultural: South Korean is one of the most homogenous nations in the world, racially and linguistically. Confucianism is the basis of conduct and character for most Koreans. Confucianism calls for total loyalty to a hierarchy of authority, moving from parents to family to clan to community to nation. The culture is collective: individuals may speak for the group, but decisions are made by consensus. A sense of harmony (kibun) must be maintained at all times. Class, breeding and character are defined by the ability to control emotions. Men tend to dominate in public situations.

Business: Be punctual, even if your counterpart is not. Be sincere and honest: relationships are more important to Koreans than the actual business at hand. Keep in mind that you will often be told what they think you want to hear: "maybe" usually means "no." Koreans are distinct from other Asians in food language and culture. Gift-giving to acquire favors is common in the workplace. Do not open gifts in front of the giver. Be aware that an ancient art of studying faces (nunch'i) is well developed. Words may be misleading.

CHINA

Cultural: The Chinese are masters of the oblique. What is not said is often more important than what is said. You will be told what they think you want to hear. Social status and connections are very important. China is a collective culture: a group leader makes decisions and individuals are expected to follow. Decisions are made subjectively, based on prior experiences. Feelings can be accepted as valid over facts.

Business: Use titles with a person's surname. Chinese names are in the order of surname, generational name, and birth name. If a gift is given, it is a newer practice. Know that the Chinese normally decline three times before accepting. Eye contact is important. Eyes should be slightly lowered during introductions to show deference and respect. Decision-making is by consensus. Feng-shui practices are believed to harmonize life. Feng-shui involves manipulating the environment, including the placement of buildings and objects to produce good fortune. Business discussions will be most likely discussed by the senior member of the group.

AUSTRALIA

Cultural: Australians are generally open-minded and trusting of others until given reason not to be. Rules and laws take precedence over emotions. Individualism is important in decision-making. The nuclear family is the strongest socializing force. There is a great deal of emphasis on ability, rather than on rank or wealth. Australians are highly ethnocentric and take great pride in their country.

Business: Be punctual. Australians believe that tardiness conveys a careless attitude. Be direct. Australians value a forthright and honest manner. Do not use high pressure negotiating tactics. Presentations should be made with modesty, brevity and a degree of casualness. Academic qualifications are downplayed in public. Do not discuss business in a social setting unless the other party brings it up first.

Being aware of cultural differences can help us greatly in business, including the buying and selling of real estate. "Directness" is prized or expected in some cultures, while it is offensive and damaging in another culture.

One cultural may value objective rules and law over emotions. In another culture, the specific situation or emotional feelings become the basis of logic. Living in linear or non-linear time is a very important difference.

Understanding a culture means recognizing the critical elements that define it, including language, religion, social structures, values and customs. It is also important to recognize the historical context in which cultures have interacted, as well as any deeply rooted stereotypes or prejudices.

This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer conduct his own due diligence and review. The National Association of REALTORS has provided information for this article.