Developer from UAE breaking into the Mexico Market

Mazatlan will soon be home to Hydra Waves, the first international development by Hydra Properties, a leading developer from the United Arab Emirates. The first phase of the project will be a 37 story tower with luxury amenities such as a gym, a spa, shops, and restaurants.

This project is only the beginning of Hydra Properties international expansion.
To read more about the ground breaking ceremony:
Hydra Properties expansion into Mexico

Las Posadas - A Mexican Holiday Tradition

The month of December in Mexico is all about celebration. From the Virgin of Guadalupe Day on December 12th up to Noche Buena, or Christmas Eve, the streets are filled with festive decor and celebrating townspeople. One popular Mexican tradition around the holidays is known as "Las Posadas" which is the re-enactment of Jesus and Mary's search for shelter the night that Mary was to give birth to Jesus. People fill the streets of small towns and go house to house singing songs asking for shelter and neighbors sing back. The procession usually ends up at the local church, where the participants are let in and enjoy local treats like warm churros, candy, and more.

This tradition can be seen throughout Mexico, but it is especially popular in small towns. Many Mexicans who have immigrated to the US continue the tradition in the Latino communities.

The numbers are in - and Mexico is booming

The beginning of Mexico's high season begins on Thanksgiving weekend. Although things may be slow in the US, Mexico tourism continues to flourish. The high numbers of tourists also translate to many people purchasing vacation homes.

To read more of the article, visit:
High-Season Numbers Point to Promising Year for Tourism and Real Estate in Mexico

Border Wait

Just a note for those of you who think about moving to Northern Baja and commuting across the border for work...border times are increasing, sometimes it can take over 3 hours on weekends to cross. You may apply for the SENTRI pass which will cut your crossing time substantially, but the more people who are issued these passes means the more people waiting in line to cross.

The new passport requirements will go into effect January 1, 2008. All passengers trying to cross from Mexico into the US will be required to present their passport to the immigration official. It is yet to be seen whether this will speed up or slow down the process. My guess? The number of people who didn't know they had to have a passport will hold up the line and make the wait even more unbearable.

Cash Out Refinancing in Mexico

MexQuest Mortgage now offers cash-out refinancing! This is a great option for those of you who own your property outright, but want to take the equity to purchase a new home, or those of you who want to use the money for another project. There are many options, contact us today for rates and more information.

Cash Only Society - No more!

In the past, buying property was a cash only deal. If you wanted a $300,000 home, you had to come up with $300,000 in cold, hard cash. While it did make things easier for the seller, it kept many buyers out of the market.

The entry of cross border loans has greatly changed the real estate market in Mexico. Now, developers are offering their own financing, mortgage brokers are providing loans from several different lenders, and Mexican banks have even started offering loans to foreigners.

Many people still are not aware of all of the financing options that exist. They say it is still a "cash only society". Those days have come to an end!

Guess who is coming to San Miguel de Allende?

The quaint town of San Miguel de Allende is getting a luxury resort in 2009. Rosewood Hotels, creator of the fabulous Rosewood Mayakoba in the Riviera Maya, is going to open an ultra-luxe resort in San Miguel de Allende which will be a welcome addition to the famous colonial town. The hotel will have 63 rooms, private residences and a spa.

Rosewood also has another property in Mexico - Las Ventanas al Paraiso in Los Cabos.

New Currency Converter

Whether you are converting dollars to pesos or pesos to euros, our new currency calculator can help you find out the daily exchange rate.

Look for the currency calculator on the right hand side of the page.

$7 billion dollar port to be built in Mexico

Mexico is going to start taking bids in early 2008 for the construction of a $7 billion dollar port, which will become the largest port on the west coast.

The site for the new port is Punta Colonet, south of Ensenada in Baja California Norte.

For the article, visit Mexico Port

What is "Menaje de Casa"?

When you plan a move to Mexico, there are certain things that you will want to take with you. You may hear the term "menaje de casa". So, what does it mean? Menaje de casa is a list of items to be imported into Mexico. Mexican Customs is VERY strict about what you can and can't bring into the country. For example, you cannot label a box with clothes and shoes in it "Shoes and Clothes". You must be very specific. Example: 5 pairs of shoes, 15 shirts.

For a list of what can be imported, visit your local Mexican consulate before you go. This can save you a lot of time and headaches. You must submit your list or menaje to your consulate for approval. Any electronics must have the model number written down next to the product description. The list must be translated in Spanish.

A Golfer's Paradise

If you love to golf and love luxury, then check out the Capella resort in Punta Maroma, Mexico.

More info here

Useful website for information on Mexico

If you want to find out about all Mexico has to offer, the Mexican Board of Tourism has a great site with tons of information. The website is offered in a number of languages, which allows people from all over the world to access the site.

The website has in depth information on a number of cities and activities.

Check it out: Visit Mexico

Condotels in Mexico

What do you get when you cross a condo with a hotel? A Condotel! Condotels are the new rage and are popping up all over Mexico.

Condotel owners have the ability to rent out their condos when they aren’t in town, which is a good option for people who want to invest in a vacation home while earning rental income. The developments have their own property management teams who will make sure your condo is well taken care of in your absence. They can handle all the details of renting your condo.

Another benefit of purchasing a unit in a condotel is that you have room service and a cleaning crew at your disposal. Feeling hungry but don’t feel like going out? Just order room service!

Loans in Mexico and the Mortgage Meltdown in the US

When you turn on the news or pick up a newspaper these days, it is common to see headlines like "Mortgage Meltdown" or "Subprime Crisis". Foreclosures are at record highs and many people are close to losing their homes. In this post, I will explain what this means to Mexico.

Loans for Mexican properties are not "subprime loans"
Up until a few months ago, consumers were able to buy property in the US with no money down (100% financing) and no documentation of assets/employment verification. This meant that people were getting in way over their heads because they were getting approved for large amounts of money that they did not have the ability to pay back. Loans in Mexico do not fall into the subprime category. Documentation is required as well as a good to excellent credit score.

Property values in most areas of Mexico are appreciating
Mexico has been experiencing a boom for the past few years, and continues to see appreciation in resort areas. Unlike the US, prices are not dropping by 20% or 30%. Resort areas are seeing an increased number of baby boomers buying 2nd homes or primary residences.

Strong Canadian currency
The Canadian economy is stronger than ever. It reached parity with the US Dollar last month and today it has surpassed the US Dollar. Canadians have more purchasing power and many are choosing to buy in Mexico.

Holidays in Mexico

If you are buying property in Mexico, it is important to know about Mexican holidays. You may need to talk to the notario, make a bank transaction, etc, but be surprised to find that no one is working on one of these days.

MEXICO HOLIDAYS
January 1-New Year's Day
January 6-Three Kings Day (Tres Reyes)
February 5-Constitution Day
February 14-Valentine's Day
February 24-Flag Day
March 18-Oil Expropriation Day
March 21-Benito Juarez's Birthday
April 30-Children's Day
May 1-Labor Day
May 5-Battle of Puebla Day
May 10-Mother's Day
May 15-Teacher's Day
Third Sunday of June-Father's Day
September 15-16-Mexican Independence Day
October 12-Columbus Day
November 1-All Saint's Day
November 2-All Soul's Day
November 20-Revolution Day
December 12-Virgin of Guadalupe Day
December 24-Christmas Eve
December 25-Christmas Eve
December 28-Day of the Holy Innocent
December 31-New Year's Eve

Please note that not all holidays are observed by banks and companies (example: Teacher's Day).

Zihuatanejo to get a new Viceroy hotel and residences

The reknowned Viceroy hotel chain is set to expand its Mexico footprint by adding a luxury resort and residences in the Zihuatenejo area in 2010. This will be the chain's 2nd beach resort in Zihuatanejo, the first being The Tides resort on Zihuatenejo Bay.

The architectural firm of Denniston International hopes to create a luxurious, yet relaxed atmosphere. For more information on The Kor Group's properties, please visit: www.viceroyhotelsandresorts.com

Do I need to speak Spanish to live in Mexico?

Many people are enticed by the thought of living in a foreign country. New adventures, new food, a new language, new friends...

If you don't speak the language of the area you are planning to move to, don't worry! The very best way to learn a new language is by immersion. It is difficult at first--not understanding what they are asking or not knowing how to get your point across--but it does get better. You can use sign language, draw things on napkins, or even play charades to communicate in your new language. I highly suggest watching the local tv channels and reading the newspapers in Spanish. While it may seem like you aren't getting anywhere at first you will be amazed at how many words you start to pick up.

In Mexico, the locals are very appreciative of anyone who tries to speak Spanish. Your effort shows that you are respectful of the culture and interested in getting to know the people.

On the other hand, if you have a difficult time learning languages or memorizing, don't despair. There are plenty of expat communities where the main language spoken is English, however, learning Spanish will make your life much easier and your new life in Mexico much more fulfilling.

Good News for Puerto Peñasco

For all of those Southern Californians who love going to Rocky Point (Puerto Peñasco) but hate to drive I have good news. Aeromexico has announced it will be offering flights from LAX to Puerto Peñasco on Tuesdays, Thursdays and Sundays. These flights will make the once sleepy fishing village more accessible to travelers from California. The increased tourism will also have a positive impact on the local economy.

Flights to Mexico on Volaris

For those of you who live in Southern California, you now have a new option when flying to Mexico. Volaris, a Mexican airline that entered the market in 2006, is offering low fares and exceptional customer service. The airline offers a shuttle service from the Santa Fe Depot (train station in Downtown San Diego) to the airport in Tijuana.

The airline possesses one of the youngest fleets in Mexico. Their planes are clean and spacious. The service is top-notch. Passengers are offered snacks and beverages during the flight and have the option of watching tv or listening to the radio.


I have personally flown Volaris several times and I must say that it has been a great experience every time. One of the best parts about Volaris is that if they arrive late, they will give you a free ticket for your next trip. How great is that?

To check out fares visit: Volaris

International Property Buying Trips

Once you've decided you want to buy a primary residence or a vacation home in another country, it is important that you narrow down your list and decide where you want to live. If you have a certain city or region in mind the best way to find a place to live is to go on a buying trip.

There are many private individuals and consulting firms that offer these services. You can go with a group or by yourself. The most important thing is that you see what the area has to offer. Something may look great on the Internet, but turn out to be a lot different in person. For example, let's say you are looking for a new condo. You've checked out the website and read their fancy, glossy brochures. When you get there you discover that they are doing construction on another tower for the next two years. Do you really want to listen to the jackhammer every morning? These are the things that you can only discover by visiting a property first hand.

Another good way to find out if the area is right for you is to ASK AROUND. Ask people who live in the area what they like and dislike. They will be happy to answer your questions and may bring up points you had not thought about.

Good luck!

Megayachts in Mexico

For those of you who were wondering where to dock your yacht in Mexico, the answer is here. Mexico will soon be home to two new megayacht ports: Liberty Cove in Puerto Libertad, Sonora, and Porto Hussong in Ensenada, Baja California.
These large scale developments will lure travelers from all over the world.

Liberty Cove, slated to be the "Monaco of Mexico", is located south of Arizona and sits on the Sea of Cortez. It is said to be the largest single development in all of Mexico.

On the Pacific side of Baja California, Porto Hussong will provide refuge for international yachters. The development has already received numerous inquiries from around the world for slips in the marina. The oceanfront condominium resort and private residence club will have its grand opening in the summer of 2009.

SPOTLIGHT: Manzanillo

Today we are highlighting one of the most spectacular places on the Mexican Riviera, Manzanillo. Manzanillo is located in the state of Colima,
Manzanillo is one of Mexico's most important ports, receiving the largest volume of cargo in the country. The city is also well known for its fishing and many call it the "Sailfish Capital of the World".

The Las Hadas Resort, made famous by Bo Derek in the movie "10", is one of the most exclusive resorts in Mexico. The white Moorish-style resort is perched high on a hillside and has sweeping views of the bay.

The city, with one of the lowest crime rates in Mexico, has attracted people from all over the world. Manzanillo isn't as well known as some of Mexico's other resort towns, but residents say that is part of its charm. Manzanillo's beaches, Salahua, Las Hadas, Miramar, La Boquita, La Audiencia and Santiago are perfect for those looking for swimming or surfing.

There are plenty of good restaurants in Manzanillo. Some favorites are Bigotes, Juanitos, Oasis, and L'Recif.

Notario vs. Notary

Are a notary in the United States and a Notario in Mexico the same? NO!! Here are the main differences:

A Notario is a high-ranking government appointed official who possesses a law degree and has extensive training in a number of legal areas.

A Notary is someone who has taken and passed a government issued test in the United States, but does not require any formal training.

A Notario can give legal advice and assist with disputes.

A Notary mainly handles clerical matters, such as bearing witness to signature of documents and administering oaths.

A Notario in Mexico will make sure that your deed or fideicomiso is correct and will also register it in the public registry. Notarios can also assist with immigration paperwork and incorporation.
Finding a good Notario is a key part of your Mexican real estate transaction. Most realtors have someone they use on a regular basis, but it is always good to ask for references.

Travel Articles about Mexico

Mexico has long been a favorite vacation spot for honeymooners and people looking for relaxation and pampering. These travel articles highlight various resort destinations in Mexico and are sure to give you that extra motivation you need to book your flight and hotel and head south of the border! You might like it so much, you decide to stay. :)

Travel + Leisure

Go World Travel

Conde Nast Traveler

American Way Inflight Magazine

Help the people of Tabasco

Last week, Tabasco, a state located in the south of Mexico, was devastated by torrential rains and flooding . The scenes in Tabasco were reminiscent of Hurricane Katrina--flood victims stranded, standing on their homes with no help in sight. Early reports say that up to 800,000 people may be left homeless, as over 80% of the state is underwater. All of the state's crops have been lost, resulting in a tremendous economic loss for farmers and exporters.


Mexican President Felipe Calderon has sent in the Mexican military to assist with the rescue efforts, but due to the fact that victims can only by reached by boat and helicopter the rescue will take some time. Rain is in the forecast for this week, so the people of Tabasco will not see relief for some time.


Tabasco from the Air

Please donate to the Cruz Roja (Red Cross) or any other organization that is organizing relief efforts. The people of Tabasco need your help!

Canadian Dollar Hits Record High

The Canadian Dollar has reached an all time high on news that unemployment is at its lowest level in 33 years. The Canadian government has reported that five times more jobs than originally forecasted for the month of October. The Canadian currency has gained 24.6 percent against the US Dollar in 2007. With steady job growth, high oil prices, and a weak US currency, the Canadian Dollar is expected to increase.

So, what does this mean for the real estate sector? More and more Canadians are snapping up properties in the United States and Mexico. The combination of their strong currency and the slowdown in the US housing market has created a number of real estate investment opportunities for Canadians. If the prices of Mexican real estate seemed attractive before, now they look even better.

50 and over? Head to Nuevo Vallarta

Luma has announced the groundbreaking of a new active adult community in Nuevo Vallarta, Jalisco. Nuevo Vallarta is located 16 miles north of Puerto Vallarta. This active adult community will be home to the over 50 crowd in search of sun, fun and relaxation. These communities are a great option for those who want to feel part of community without the rigid schedules and confinment of an assisted living home.

The stunning development will have over 400 units, half of which will be beachfront. In addition to the stunning views, Luma will offer a "Lifestyle Concierge", ready to cater to your every whim.

To read more about Luma, visit their website:

Luma Living

Title Insurance in Mexico

Although title insurance is not required in order to purchase property in Mexico, it is highly recommended. Many people are under the impression that a fideicomiso (bank trust) will protect their title. This is not true. The fideicomiso acts as a fiduciary, but it does not protect the title. The piece of mind that you will get by knowing that you own your property has a clear title is well worth the price. Even if you do not purchase title insurance when you first purchase your property, you can still purchase a title insurance policy at any time. Title insurance companies may be able to find descrepancies or other issues that your notary or lawyer may not be able to find. If you are going to finance your property in Mexico, a title insurance policy is required by most lenders.

Stewart Title and First American Title both have a strong presence in Mexico and their experts can help you with your title insurance policy. As foreign investment in Mexican real estate becomes more and more common, we can expect to see the entry of other title companies into the Mexican market.

Great things about living in Los Cabos

Many people ask me why I love living in Mexico. Where do I even begin? Is it the hospitality of the Mexican people or the beautiful beaches or the icy cold Coca-Cola in a glass bottle? Is it the low cost of living or the excellent food? It is all of these things and more that I love living in Mexico.

AMPI Los Cabos (the Mexican Association of Realtors) has compiled a list of the Top 10 reasons for buying real estate in Los Cabos, and I have to say, I agree with all 10!

Check it out:
10 Reasons to Buy Real Estate in Los Cabos

Loan Calculator tool for loans in Mexico

There are a number of factors that will determine which interest rate you will pay when you obtain financing for a home in the US or Mexico. Sometimes you just want to get a ballpark figure of how much your monthly payments will be. The MexQuest Mortgage Calculator is a great tool for those who want to see more or less what their mortgage payments will be.

The calculator, located on the right hand column of this blog as well as on www.mexquestmortgage.com, allows users to enter the purchase price of their home or condo in Mexico and calculate monthly payments on a home loan.

NOTE: The interest rate used in the calculator is the average daily rate. Your rate could be lower or higher depending on the loan program, your credit score, and the terms of the loan. Contact me for more information and to see which loan program is best for you.

Looking for the next big thing in Mexico

A lot of people want to know what the next big investment hotspot in Mexico is going to be. Unfortunately, there is no simple answer. There are so many wonderful places in Mexico, that it is hard to pick just one. Baja California has been a longtime favorite, with cities like Los Cabos and Rosarito attracting scores of Americans and Canadians looking for a more peaceful life. In the past few years, Sonora, home to Rocky Point (Puerto Penasco) and San Carlos has been booming with developing. Puerto Vallarta still remains high on the list for those looking for a vacation home or primary residence in Mexico, but most of the new development is taking place in Nuevo Vallarta and the Punta Mita area.

Mexico's east coast is famous for the Riviera Maya, which is a peninsula that is comprised of Cancun, Playa del Carmen, Tulum, and other smaller towns. This whole area has seen an influx of new hotels and residential projects.

My suggestion is that you visit the location before you buy. If possible, rent a house or a condo and spend a few weeks there so you can really get to know the town. Also, read all you can before you buy. Did you know that Rocky Point is getting a new airport and a new superhighway? Did you know that Ensenada will be home to the largest marina on the west coast? Ask local realtors about future improvements to the city, as they may have inside knowledge that you couldn't find elsewhere.

SPOTLIGHT: Ensenada

Ensenada, home to one of the largest ports on the Pacific West coast, is located 80 miles south of San Diego. Its location makes it the perfect weekend getaway for visitors from Southern California. Ensenada is probably best known for its fishing, but it has quickly established itself as an up and coming cultural center.




Some of the best wines in Mexico come from Ensenada and the Guadalupe Valley. Its temperate climate is very conducive to producing wine. What goes better with a great glass of wine than a great meal? The innovative chefs in the region have put Ensenada on the map, making it one of the finest culinary centers of Mexico.


Another popular attraction in Ensenada is whale watching. Every year, from late December through March, visitors can witness the California Gray whales off of the coast. The whales migrate south to the warmer waters of the lagoons of Baja. Many companies offer whale watching day trips that leave around 11am and return at 3pm.





If you are looking for nightlife, Ensenada has it. Hussong's Cantina, Baja's oldest bar and home of the Margarita, is a great place to eat, drink, and be merry. If you are looking for something a little more wild, try Papas N Beer. This establishment has been a favorite of spring breakers and cruise ship passengers for years.





Ensenada offers something for everyone. Whether you are looking to party or just sit back and enjoy the scenery, you will not be disappointed.

Moving to Mexico? A few resources to get you started

Moving is a stressful experience, whether it is down the street, to a different state, or halfway around the world. Most of the stress that we bring upon ourselves is caused by fear of the unknown. What neighborhood should I live in? Do they have good schools? Who will I get to move my furniture? What are the people like?

A great way to calm your fears is to do RESEARCH. Yes, RESEARCH! Reading up on your new hometown in Mexico will give you an insight as to what it will be like when you get there. There is no substitute for experiencing it first hand, but it can definitely help answer some of your questions.

Here are a number of great resources to check out before making your big move to Mexico:

Solutions Abroad

MexOnline

MexConnect

Escape Artist

Some of these sites have forums where you can ask questions about anything from finding a good mechanic to where to pay your property tax bill.

Best of luck on your move!

If you have any questions, feel free to ask me : elizabeth@mexquestmortgage.com

Construction Completed on Las Ventanas Project in Puerto Nuevo

Las Ventanas is an exclusive community of 38 homes in Puerto Nuevo, Baja California built by Irvine, California developer Waterfront Development Company. This project's completion represents a development milestone in Northern Baja as it is the first major project completed by a U.S.-based developer.

Irvine, CA (PRWEB) September 22, 2007 -- Irvine developer Waterfront Development Company announced the completion of construction at Las Ventanas in Puerto Nuevo, Baja California. "As the first U.S. developer to complete a project in northern Baja, we are proud of the quality of construction and attention to detail that we were able to bring to the project in concert with our Mexican construction partners," said Stephan Erkelens, managing partner of Waterfront Development Company.

Las Ventanas is an exclusive gate guarded enclave of 38 single family homes located 30 minutes south of the U.S. border and represents the high point of quality and livability in the area. With prices that are a mere fraction of those found north of the border, buyers have been attracted to the project in gratifying numbers. "Sales in the past six months have averaged a million dollars a month and we have just four units left to sell," said Robert Donnell of Beachfront Baja, the San Diego-based marketing firm selling Las Ventanas. "With prices in the area rising based on demand and the cost of construction, these remaining homes are being sold for less than their replacement value and represent a genuine buying opportunity for those looking for a beachfront house in Baja, that is ready to move into, now -- for less than the price of a condo," said Donnell.
More information is available on their website. http://www.las-ventanas.com/

Moving to Mexico: Telecommunications

If you are planning on moving to Mexico, there are a number of telecommunication solutions to choose from. Take into consideration where you will be calling the most. If you plan on making local calls within Mexico, you might want to ditch your US cell phone for a Mexican cell phone. Carriers vary from city to city, but Telcel by far has the largest network in the country.

If you will be going back and forth between the US and Mexico, several of the wireless carriers have special international calling plans with reduced rates. AT&T has just announced a special Mexico calling program for their customers. Another great option for your home in Mexico is to set up a Vonage line. You can have a US area code that will ring in Mexico. That way, when friends and family call you from home they won't be charged international rates! Vonage is easy to set up and only requires a hi-speed internet connection.

Telmex can be very expensive. Calls to the US can be over $1 USD/ minute!!!

WIRELESS CARRIERS IN MEXICO
Telcel
Telefonica
Iusacell
Nextel
Unefon

LANDLINES IN MEXICO
Telmex

VOIP
Vonage

Secondary Mortgage Market in Mexico

Last week I explained in a post that the main reason that interest rates are higher for home purchases in Mexico was because mortgages in Mexico are a fairly new product and the second mortgage market has not been fully developed.

In October, HSBC became the first non-government issuer to sell mortgage backed bonds in Mexico to the tune of 3.5 billion pesos ($321 million USD). This is a huge development in Mexico's mortgage market and other banks are sure to follow suit.

To read more about HSBC and the secondary mortgage market:
HSBC article

Baja California Meeting Point

I recently attended the Baja California Meeting Point and was amazed by all of the development going on in the Sea of Cortez region. The Sea of Cortez is flanked by the Mexican States of Sonora, Baja California Norte, and Baja California Sur. The cities that are seeing the highest number of new developments are Rocky Point (Puerto Penasco), San Felipe, Loreto, the Tijuana-Rosarito-Ensenada corridor, and the Los Cabos/East Cape area. Cities like La Paz, San Carlos, and Kino Bay are also starting to see a number of new developments springing up.

The developments are becoming more and more sophisticated, with each developer trying to out do another with added amenities. One particular development I looked at will have a state of the art clubhouse, a gym over looking the ocean, and miles of exercise trails. Another development will have a mini-market and dry cleaners on-site so that residents can take care of their errands without leaving the property.

More and more people are choosing homes in Mexico as their primary residence. With the availability of high-speed internet connections and VOIP phones that allow you to call anywhere in the world for pennies on the dollar, working from a foreign country has become easier than ever.

I invite you to check out some of the new developments in the Sea of Cortez area by visiting:
Baja California Meeting Point

Let's Go Fishing - Los Cabos Bisbee Tournament

For all of you fishing enthusiasts out there, the Los Cabos Bisbee Tournament is just around the corner. The tournament takes place from October 19-21 in Cabo San Lucas. This is one of the biggest billfish tournaments in the Americas, with a purse of over $4.7 million.

Visitors from around the world converge on Cabo for this exciting offshore tournament. The tournament concludes on the 21st, with an awards ceremony at 8pm at the Baja Cantina Beach Club.

For more information on the tournament, please visit the official website:

Bisbee Tournament

The difference in interest rates between loans in the U.S. and Mexico

If you've ever looked into obtaining financing for a home in Mexico, you will notice that the interest rates for home loans are slightly higher than in the U.S.. There are a few reasons behind this.

The primary reason that the interest rates are higher for loans in Mexico is that there has been no competition in the secondary mortgage markets in order or in the capital markets to purchase these loans.

Financing in Mexico for U.S. citizens began in 2005, when GE Money introduced its "Mexican Dream Mortgage" product. The product was created out of a growing need to provide financing for baby boomers who where looking to buy property abroad.

Since the product is still in its infancy, the market is still changing. Once the loans become more more marketable in the secondary mortgage markets, financial analysts say we will see a drop in interest rates, making them comparable to the rates we would see in the U.S.

It is only a matter of time before we see this happen, as GE Money expects dollar mortgages to surge in 2008.

Currency exchange services - HiFx

So, you've decided to pack up everything and move to Mexico. You've got things to pack, friends to say goodbye to, paperwork to organize, and a number of other things waying on your mind. Moving to a foreign country can be a stressful process and many people overlook one of the most important issues: the exchange rate.

Whether you are an expat sent abroad to work with a large compensation package, or a retiree seeking a new life in Mexico while living on a fixed income, protecting yourself against fluctations in the exchange rate can result in big savings for you and your family.

HiFx, a currency exchange service, can help you with the purchase of a home abroad, fixed international mortgage payments, international relocation, complex international business transactions, and other money transfers.

Why choose HiFx?
Better exchange rates than your bank
Simple, jargon free advice
30,000 customers a year & growing
Fix rates for up to 2 years
Fast, highly secure services

I highly recommend contacting HiFx to find out more about how they can facilitate the currency exchange process. Visit their website at http://www.hifx.com/ for more information.

Green Retreat in San Miguel de Allende

By Alia Mansoori

Turning right off the road linking the colonial Mexican towns of San Miguel de Allende and Dolores Hidalgo, I headed into the mountains. The smooth pavement of the two-lane highway ended abruptly, and my tiny green-and-white taxi struggled over thick rocks and through even thicker clouds of dust from the arid road, toward the plateau nearly two miles away.

To the right, enormous sprinklers watered verdant patches of alfalfa for a wealthy rancher's prized horses to feed on. To the left, a leathery-skinned old man pulled a sleepy donkey along a desiccated soccer field bordered by enormous cacti.

We passed the village of Morroquin, where colorful paper flags on strings — remnants of a fiesta — blew in the light breeze, toward the smaller village of Mesita. But the nearly intolerable ride was a small price to pay for the oasis that awaited.

On 15 acres of rural Central Mexico mountainside sits the eco-conscious Sagrada Wellness, a boutique hotel and yoga retreat, where guests are immersed in everything from holistic health and cooking classes to yoga, Spanish classes, spa treatments, art and horseback riding. Architect Scott Currie and his wife, Eva Inglizian, a licensed acupuncturist and herbalist, created the Sagrada after living in San Miguel de Allende for a year and yearning for a peaceful refuge to call their own and practice their crafts: sustainable architecture and Eastern medicine.

"There's really nothing like this around here," says Inglizian, sitting in the outdoor dining area, as we ate a lunch of yellow rice, beans, sliced nopales (cactus) salad with fresh cheese, homemade corn tortillas, fresh salsa and guacamole, all made with locally grown, organic ingredients.

Touring the Sagrada grounds with Currie and Inglizian is more than a welcome tour you might get at any small hotel; it's an ode to the Earth and the marriage of the past and present.

To read more of the story, please visit:
Green Retreat in San Miguel
http://www.statesman.com/life/content/life/stories/travel/09/16/0916mexicospa.html?cxtype=rss&cxsvc=7&cxcat=48

Developer and Construction Loans Available in Mexico

MexQuest Mortgage offers developer and construction loans in Mexico!
Are you dreaming of building your new home in one of Mexico's booming resort towns? Let us help you acheive your dream with our construction loan. Our knowledgable representatives will guide you through the loan process and be there for you every step of the way

DEVELOPER LOANS

MexQuest can consummate any number of transactions, including mortgage loans ranging from 5 million to 500 million dollars for multi-family, office, retail, industrial, hotel, mixed-use, and self-storage properties. Our consortium, or "pool", consists of banks, non-depository institutions, insurance companies, pension funds, savings and loans, thrifts, and private investors. We offer many major loan programs, including fixed rate, floating rate, mezzanine, bridge, acquisition, and construction funding.

Loan amounts 5 million to 500 million dollars

6 month adjustable, 2, 3, 7, 10, and full term fixed programs

Your choice of 10, 15, 20, 25, and 30 year amortization schedules

Interest only options are available

Loans are available in Mexico

Closing typically is 60 to 90 days

Maximum LTV is 80% and 90% CLTV for construction

SPOTLIGHT: Playa del Carmen

Playa del Carmen, known to locals as "Playa", is home to some of the Riviera Maya's most amazing beaches. It is a great choice for vacationers who love watersports as scuba diving and snorkeling are only a short boat ride away. For the more adventurous traveler, Playa is home to amazing freshwater rivers and caves called cenotes.

The Quinta Avenida (Fifth Avenue) boasts an array of shops where one can find all kinds of souvenirs, candy, clothing, Mexican handicrafts, and jewelry. The shopping area is located one block from the beach and is closed off to cars, giving vacationers the freedom to stroll along and shop.

As far as lodging goes, your best bet is one of Playa's small boutique hotels. Here are a few hotels that you might check out:

Hotel Deseo

Mosquito Blue

Illusion Boutique Hotel

Acanto Hotel

Playa del Carmen is the perfect spot for those looking for a relaxing beach vacation without all the craziness of Cancun. Playa draws a more international, laid-back, bohemian tourist as opposed to its neighbor to the north, Cancun, whose tends to draw in Spring Breakers and young families.

Your homebuying vocabulary lesson...en español

It always helps to know the language when doing deals in a foreign country. Even though it isn't necessary to speak Spanish to buy property in Mexico, it can certainly help you to better understand the process.

FIDECOMISO (fee-day-co-miso) - renewable bank trust

CASA (ka-sa) - house

CONDOMINIO (con-do-men-e-o) - condo

IMPUESTOS (em-pue-stos) - taxes

TASA DE INTERES (ta-sa de en-ter-es) - interest rate

VALOR CATASTRAL (val- or ka-tas-trall) - official value of the property

IMPUESTO PREDIAL (em-pue-sto pre-dee-al) - property tax

BIENES RAICES (bee-en-es rye-e-ses) - real estate

NOTARIO (no-tar-e-o) - Notary (different than notary in the U.S.)

If you have any questions or come across any words in Spanish and you would like to know what they mean, just drop me a line!

Loans in Mexico - Financing by MexQuest Mortgage

MexQuest Mortage offers loans to U.S. and Canadian citizens looking to buy property in Mexico. As well as home purchase loans, we also offer construction loans, cash out refinancing, and developer loans. There is no cost to pre-qualify!

Primary Residences & 2nd Homes

Loans $100,000 to $5,000,000 USD (Higher loan amounts subject to additional approval.)

Up to 80% Loan-to-Value

Minimum Middle FICO Credit Score 680

Up to 55% Debt-to-Income Ratio

45 to 60 Day Escrow

U.S. Escrow Company (First American Title or Stewart Title International)

Financing for US and Canadian citizens in Mexico is a relatively new concept. Due to the boom that Mexico is currently experiencing, there are a number of mortgage companies entering the market. So…why should you choose MexQuest Mortgage?

Focused: We only offer financing in Mexico
Knowledgeable: All of our loan consultants are licensed by the DRE
Ethical: No “bait and switch” tactics
Streamlined processes: Faster closings
Constant communication: All e-mails and phone calls will be responded to in a timely manner
Bilingual staff: Our staff is bilingual and has a solid understanding of the home buying process in Mexico

Contact me today to find out more about our loan programs!
elizabeth@mexquestmortgage.com

New Resort to open in Cabo San Lucas - November 2007

Cabo lovers will have one more mega resort to choose from starting in November. The Hotel Riu Santa Fe, part of the Riu Hotels Group, is slated to open this fall and will have 902 guest rooms, two large swimming pools, and complimentary sun loungers on the beach. The resort is all-inclusive, but also offers the option to make reservations at its Asian, Mexican, Steakhouse, and Italian restaurants.

The Riu Santa Fe will also be home to the new "Pacha" nightclub, where guests will receive complimentary entrance and drinks. For the sports lover, the resort boasts a variety of activities from windsailing to jet skiing to golf. Guests will even have the chance to take a romantic horseback ride along the beach. The Renova spa, with its beauty salon, massages, and spa treatments is sure to provide rest and relaxation to even the most stressed out guest.

To make reservations or find out more about the Hotel Riu Santa Fe, visit their website at:

Riu Hotels

Ultra Luxe Properties at Punta Mita Mexico Selling Fast!

Home Sales Soar at Punta Mita's Porta Fortuna Residential Resort

Phase one of new "Zen Casita" product sold out in pre-construction; New estates, luxury condos planned on 14 acres of prime ocean property

PUNTA MITA, Mexico--(BUSINESS WIRE)--The Porta Fortuna community in Punta Mita, Mexico, has experienced strong demand for its new product, "Zen Casitas" - selling eight pre-construction units at an average price of $1.5 million each this summer. Set on 14 acres of oceanfront property, Porta Fortuna's "Zen Casitas" are two-story, three-bedroom units with some 4,000 square feet of combined indoor and outdoor space.

Spaciously nestled between two golf fairways and the Pacific Ocean, the Porta Fortuna residential, resort enclave is styled with a blend of Italian, Mediterranean and Mexican architecture into one "Mexiterranean"-crafted oasis, offering the tranquility of a Zen, ultra-luxury lifestyle. Porta Fortuna is located within Punta Mita, a 1,500-acre, master-planned, luxury second-home resort community on Mexico's Pacific Coast.

With such strong buying demand for phase one, two additional pre-construction homes will be released from phase two this month, with a total of 14 Zen Casitas planned. In addition, plans are finalized to develop 6,000 to 8,000 square-foot, single-family beach- and ocean-front estates, and more than 30, 3,000 square-foot, three-bedroom luxury condominiums at Porta Fortuna.

Construction is set to begin on the eight Zen Casitas in September 2007 as part of phase one, with a completion date slated for the fourth quarter of 2008, said Cliff Damavandi, marketing director of Los Angeles/Puerto Vallarta-based Inspired Resorts, owner and developer of Porta Fortuna.

"Buyers were attracted to our Zen Casitas because of their large floor plans, an interesting architectural blend and excellent value compared to similar home sizes and oceanfront property in Hawaii and other high-end second-home destinations. They also liked the idea of buying a luxury second home in Punta Mita, considered to be a world-class, master-planned community with convenient access to nine-and-a-half miles of shoreline and beaches, beach clubs, golf, water sports, tennis and fine dining," said Damavandi.

As hands-on developers, Damavandi explains that he and his father personally meet their customers and are on-property the majority of the time to oversee Porta Fortuna's development. Inspired Resorts spans more than 40 years of experience in real estate development, renovations, financing and acquisitions, management and operations.
Well before Porta Fortuna's first eight units are completed and occupied, Damavandi says the property's 14-acre infrastructure and common amenities will be in place at the start of the winter 2008 season, including artistic access roads, detailed landscaping and a private resident beach club called Playa Fortuna, featuring a palapa-colored living room, a full-service restaurant serving gourmet food, joyous bar, sleek saline pool, swinging daybeds, comfy puff pillows, lounge chairs, a series of isolated nooks and popular social areas.

The Porta Fortuna Yacht Club, located at the edge of the Bay of Banderas, is slated to begin construction before the end of 2007. When completed, it will become a central gathering place for members living in each Punta Mita community. The Club will be built with a wooden pier and a fresh seafood restaurant and bar.

Any whole ownership residence at Punta Mita qualifies for membership in the private Club Punta Mita, which includes the existing 18-hole Jack Nicklaus Signature Golf Course, and access to the Punta Mita Residents' Beach Club and Tennis Club. Residents also have access to a complete array of services and activities through Punta Mita's Residential Concierge Services.
For more information on Porta Fortuna, contact the Punta Mita Properties Sales Center toll free from the U.S. at 888-647-0979; or visit http://www.portafortuna.info/ or info@puntamitaproperties.net.

Punta Mita's master-planned developer/owner, DINE has been at the forefront of large-scale, high-end commercial, residential and resort communities in Mexico. The company has experienced solid growth, with the most recent second quarter 2007 sales reaching $31.1 million, an increase of 50 percent, up from $20.8 million in second quarter 2006, mostly due to its luxury master-planned resort and residential community, Punta Mita. DINE has invested $150 million so far in the project's infrastructure.

A spear-shaped peninsula with nine miles of Pacific Coast shoreline, Punta Mita is surrounded on three sides by white-sand beaches and dramatic coves, features an 18-hole Jack Nicklaus Signature golf course, with a second Jack Nicklaus Signature golf course and a St. Regis Resort and Residences slated for completion in early 2008. The property also boasts a Four Seasons Resort, a private Residents' Beach Club as well as several other villa, condo and private home residence projects planned or under development.

For more information on Punta Mita, contact the Punta Mita Properties Real Estate Center toll-free from the U.S. at 888-647-0979; or visit www.puntamita.com.mx/ or info@puntamitaproperties.net.

Realtors in Mexico

When buying property in a foreign country, it is always important to exercise caution. Currently, to sell property in Mexico you do not have to be licensed to sell real estate.
In the United States, we have the Department of Real Estate, which administers exams to determine if a person is qualified to work as a real estate salesperson or broker. In Mexico, there is no national or statewide exam. It is important to note that although there is no licensing in Mexico, there are thousands of experienced and qualified real estate agents.

AMPI (Asociación Mexicana de Profesionales Inmobiliarias - National Association of Mexican Real Estate Professionals) is a national, privately held organization where members agree to adhere to a strict code of ethics.

In 2006, the National Association of Realtors (US) signed a joint agreement with AMPI, marking the first international realtor agreement forNAR. All of the members of AMPI became Realtors® in January. This agreement will help to promote the number of opportunities that exist both in Mexico and the United States.

The bottom line--when buying property in Mexico, work with someone you trust. Ask questions, ask for recommendations, ask anything you can think of! It is important to do your homework when making any purchase, especially when it comes to your dream home!

To find a realtor who belongs to AMPI in Mexico, please visit their website:
AMPI

Medical Tourism

As insurance and prescription drug prices rise, Americans are looking outside of the United States for treatment. For many years, people traveled to exotic locals like Brazil, Venezuela, and South Africa to get plastic surgery at a fraction of the cost. Today Americans are goign abroad for dentist appointments, lasik eye surgery, and alternative cancer treatments.

If you would like to read more about Medical Tourism, check out this article in the Houston Chronicle: More Americans Seeking Foreign Health Care

DENTISTS IN BAJA
Baja Oral Center
Cosmetic Dental Center of Tijuana

PLASTIC SURGEONS IN BAJA
Dr. Carlos Buenrostro
Dr. Francisco Cisneros Lopez


ALTERNATIVE HEALTH RETREAT CENTER
Sanoviv in Rosarito, Baja California

Closing Costs in Mexico, Part 2

In Part 1 of our "Closing Costs in Mexico" post, we went over the differences between closing costs in Mexico and the U.S., as well as the difference in property taxes. Today we are going to explore the third party fees that make up the closing costs.

Foreign Ministry Permit (SRE-Secretaria de Relaciones Exteriores) - This is a fixed cost that the notary must process through their agents.

Registration in Foreign Investments Registry (RNIE) - The trustee is responsible for registering the Deed within 30 days after it has been granted.

Trust Set Up Fee- This is the one time fee to set up your trust (fidecomiso) when buying property located in the restricted zone.

Trust First Year Fee- This is an annual fee charged by the bank in order to maintain your trust (fidecomiso).

Escrow Fee-In Mexico, the earnest money deposit will go into an escrow account held by a title company and money will be disbursed accordingly.

Notary Fees- These fees are regulated by a fee list, but vary from state to state.

Local Transfer Tax (ISAI-Impuestos Sobre Transmision Patrimonial) - This tax is similiar to a sales tax and is calculated by a table. It is usually around 2.5% of the home value.

Registration in Public Registry Trust-The Notary is in charge of processing the sales price of the home and the loan amount through the Public Registry.

Certificate of Freedom of Liens- This fee is to ensure that the property that you are purchasing is free of liens.

Catastral Appraisal- This is the tax appraisal in order to determine the value for tax purposes.

Loreto: Mexico's Next Real Estate Hot Spot

Article written by Elizabeth Smith

Source: NuWire Investor.com

If you are like most Americans, you have at least heard of—if not visited—popular Mexican destinations Cancun, Los Cabos and Ixtapa. What you likely haven’t heard of is Loreto, a tiny fishing village poised to cash in on the next big tourism boom.
Photo of Loreto Bay Villages courtesy of Loreto Bay CompanySince being selected for development as resort towns by Mexican federal tourism agency FONATUR, Cancun, Los Cabos and Ixtapa have undergone huge tourism booms and price appreciation. FONATUR has recently turned its attention to Loreto, building infrastructure and developer relationships that suggest Loreto will soon join Mexico's list of tourism heavyweights.

A strategic location

Baja California extends south from southern California and shares many of the same attractions, including a warm, sunny coastal climate and beautiful beaches. Unlike California, however, prices are much more affordable.
"Baja is geographically the Florida of the West Coast," Jim Grogan, president and CEO of Loreto Bay Company, said. "If you can imagine an opportunity...to purchase and develop seaside resorts in Florida 100 years ago, that's the opportunity that exists in Baja."
"There's really no affordable beachfront left in southern California, and everybody's hungry for their place in the sun," Alan Axelrod, Baja investor and managing member of Axelrod Capital Management, LLC, said.
Americans are quickly discovering the charms of life across the border, along with its attractive prices. More than half a million American citizens live in Mexico, according to the State Department.
Just a two-hour flight from Los Angeles on the east cape of Baja California Sur, Loreto is located in what is still a relatively undeveloped area with low prices in comparison with California or with popular Los Cabos, which is located at Baja's southern tip.

Home prices in Loreto range from $130,000 USD to $865,000 USD, while land costs run from $40 per square meter near the highway to $200 per square meter on the water, Linda Neil, an accredited buyer representative and real estate consultant based in La Paz, said. Construction costs average about $75 to $80 per square foot for new home construction, and costs are a little higher for remodeling an existing structure, she said.
Demand for properties in Loreto is likely to increase as high prices in Los Cabos and on the U.S. side of the border cause would-be vacationers, retirees and second-home buyers to seek more affordable markets.

Infrastructure

Thanks to FONATUR, Loreto has received more than $200 million in infrastructure improvements, Grogan said. This gives it a distinct advantage over most of Baja, in which limited infrastructure acts as a "barrier to entry," he said.
Infrastructure advances have included Loreto's own international airport though which Alaska and Delta Airlines offer nonstop service from LAX and Continental Airlines offers nonstop service from Houston, Grogan said.
FONATUR also built a marina, two hotels and a golf course, and put in roads, water, sewer, utilities and water/sewer treatment plants, Grogan said. A state-of-the-art hospital is in progress and is set to open this year, he said.
In spite of the fact that Loreto has only 14,000 residents, a regional plan has already been developed that designates where the hotel district will go, where the housing will go and where the commercial nodes will be, Axelrod said.

For more information on opportunities in Loreto and to read the rest of the article please visit:

Loreto: Mexico's Next Real Estate Hot Spot

Property Taxes in Mexico

As I mentioned in yesterday's post, what you lose in high closing costs you will make up in extremely low property taxes. Property taxes are .1% of the property value. Many people are attracted to Mexico because of the low cost of living. Property taxes are low because they have never been seen as a source of revenue for the government like in the United States.

Property taxes in Mexico are payable annually. It is common practice in Mexico not to send out property tax bills. You will have to go to your local tax office to ask for the bill.

Does a property tax rate of .1% sound too good to be true? Well, it gets even better. If you are organized and pay your property taxes (impuesto predial) in January, YOU GET A 15% DISCOUNT! If you were paying $400 on a $400,000 property, your taxes would be reduced to $340.

Closing Costs in Mexico, Part 1

Many people who go to purchase a home in Mexico are shocked by the amount of closing costs. Don't let the closing costs scare you! Closing costs are a one-time expense, as opposed to property taxes which are paid annually. The good news is that property taxes (predial) are .1% of the property value.

Imagine that your property is valued at $500,000 USD.

Your property taxes if you lived in California: $5,000 USD/year.
Your property taxes for the same house if you lived in Mexico: $500 USD/year.

As you can see, what you "lose" on closing costs, you quickly make up in property tax savings.
The following is a list of closing cost charges in Mexico:

Foreign Ministry Permit (SRE)

Registration in the Foreign Investments Registry

Trust Set Up Fee (for purchase in the restricted zone)

Trust First Year Fee

Escrow Fee

Notary (notario) Fee

Local Transfer Tax

Registration in the Public Registry Trust

Certificate of Freedom of Liens

Castastral Appraisal

Estimation of Home Value

Passport Requirements for Mexico

Today I'm going to tackle another confusing issue for Americans traveling to Mexico: passport requirements. Many people have seen the news reports in the past year stating that it is now a requirement for U.S. citizens to have a passport when traveling to Mexico. The news reports caused vacationers to cancel their trips and caused a serious backlog of passport applications in the State Department.

Up until recently, all that was required for travel to Mexico was a birth certificate or a drivers license and a travel visa (obtained at the airport or port of entry). Beginning October 1, 2007, there will be no intercontinental flying without a passport. There is one exception to this rule--U.S. citizens traveling to certain countries, such as Canada, Mexico, the Carribean and Bermuda will be able travel if they can show proof that they have applied for a passport.

As of January 1, 2008, all U.S. citizens traveling by land or sea will be required to present a passport upon their return to the United States.

If you are planning on traveling anytime soon, apply for your passport now! Don't wait!

SPOTLIGHT: Puerto Penasco (Rocky Point)

What up and coming coastal resort town is drawing visitors from all over Arizona and California? It's Puerto Peñasco! Puerto Peñasco, also known as "Rocky Point", is located in the Mexican state of Sonora, about a 3 hour drive from Phoenix. Tourism has been growing steadily over the last few years, but with the recent addition of luxury developments Puerto Peñasco is sure to turn many of these visitors into residents. Also, the addition of the Coastal Highway, which will connect the San Luis Rio Colorado with the port of Guaymas, will attract investors and promote business in the area. In 2008, the city will open its new International airport, making it accesible to visitors from around the world.

Here are links to some of the newest communities in Puerto Peñasco:

Sandy Beach Resorts--luxury condos, gated homes, golf villas, fractional ownership
www.sandybeachresorts.com.mx

Puerta Privada--exclusive, private oceanfront condos
www.puertaprivada.com

Sonoran Resorts--luxury oceanfront condos
www.sonoran-resorts.com

Laguna Shores
www.lagunashoresgcc.com

The History Behind Mexico's Restricted Zone

In an earlier post, I had explained the difference between the two categories of land in Mexico--the restricted zone and the interior (non-restricted zone). When asked why the coastal and border zones are restricted, many people don't really know why.

In order to better understand the history behind Mexico's restricted zone, we must go back to the mid 1800's. Mexico and the United States had a very hostile relationship due to the outcome of the Mexican-American war, where the United States took the states of California, Nevada, Utah, and part of Arizona, Colorado, and New Mexico. The biggest blow to Mexico was the loss of Texas in the Treaty of Guadalupe Hidalgo. Mexico lost almost half its territory in the war!

Bilateral relations were strained, and it was only a matter of time before Mexico took a stand against the United States' imperialistic expansion. On February 5th, 1917, revolutionaries met in Queretaro to reform the Mexican Constitution of 1857. One of the most important amendments to the Constitution was Article 27.

"Article 27 of the Constitution declares that the wealth contained in the soil, the subsoil, the waters and seas of Mexico belongs to the Nation. The right to land ownership and to exploit the subsoil may therefore only be granted by the Nation. Land may also be expropriated whenever deemed necessary. " --Source: SEP, Department of Education

The principles of the 1917 Constitution are alive and well in Mexico to this day. So how is it possible that foreigners can now own property in the restricted zones? Mexican President Carlos Salinas, in preparation for the upcoming NAFTA agreement and after receiving pressure from groups in Mexico and the United States agreed to amend Article 27. In 1993, Article 27 was amended to allow foreigners to own property in the restricted zone through a bank trust(fidecomiso).

ICON Vallarta breaks ground!

The long awaited ICON Vallarta development has broken ground. The development is a joint venture between the Chartwell Group and The Related Group. The project, which includes interior design by Yoo by Phillipe Starck, created a buzz by completely selling out its first tower in 3 days. One, two, and three bedroom units range from $200,000 to over $1 million USD. The sleek design of the buildings combined with its prime oceanfront location is sure to attract buyers from all over the world.

To see floorplans, amenities, etc, visit the Icon Vallarta website:
http://www.iconvallarta.com/home.html

GE Money's Mexican Unit Expects Dollar-Based Mortgages to Surge

By Valerie Rota

Aug. 28 (Bloomberg) -- GE Money, the financing arm of General Electric Co., expects mortgage loans to U.S. citizens buying homes in Mexico to almost double by 2008 as more baby boomers cross the border to spend their retirement years. Dollar-based mortgage loans will climb to $95 million in 2008 from $53 million in 2006, said Edwin Vega, head of GE's home lending unit in Mexico City. The company expects to lend out $70 million in mortgages to U.S. citizens this year, he said.

GE Money created the dollar-based mortgage market for Americans in Mexico in 2005 to tap into the wave of retirees moving to the Latin American country. Beach-front properties that cost a fraction of what they would in California, Nevada or Florida are luring baby boomers to Mexico. ``The demographics tell us we're on the cusp of a big expansion,'' Vega, 40, said in an Aug. 22 telephone interview.

GE Money began to offer its Mexican Dream Mortgage product after noticing that baby boomers -- who were born from 1946 to 1964 -- were dipping into life-long savings to buy properties in Mexico because banks failed to provide financing for them. The company offers Americans 30-year mortgages in dollars.

The average loan size is $350,000, covering about two-thirds of the average home price of $500,000, Vega said. The median price of a house in Newport Beach, California, by comparison, is $1.6 million, according the California Association of Realtors. U.S. buyers are flocking to places such as Loreto and Los Cabos in the state of Baja California Sur, Rocky Point in Sonora and Yucatan's Mayan Riviera, Vega said.

Los Cabos -- Mexican Boomtown

Los Cabos is booming with hotel and residental construction! Tourism is at an all time high and continues to grow. Did you know that over 1 million people visited Los Cabos in 2006? With it's pristine beaches, sunny skies and clear water, Cabo is hard to beat. According to an article in The Dallas News, Cabo has become an attractive place to work, due to an influx of capital, growing demand, and high paying jobs.

Maribel Uribe, 38, still can't get over her first glimpse of beauty: a paycheck "three times what I made in my hometown," says the single mother of two. "Opportunities are everywhere."Humberto Lozada Balderas, a waiter, is just as effusive: "The demand is insatiable."
While this may sound like Mexicans waxing poetic about the American dream, this dreamscape is actually hundreds of miles south of the U.S. border with Mexico – in the state of Baja California Sur. --The Dallas News

To read the rest of the article, please visit the following link:
Los Cabos Rises as place to realize the Mexican Dream

SPOTLIGHT: ROSARITO

Just 22 miles south of the U.S.-Mexico border, lies Rosarito--a town known for its wonderful climate, shopping, and nightlife. Rosarito is home to many American and Canadian retirees who fled south in search of a more peaceful, laidback lifestyle and oceanfront homes at a fraction of the cost. In recent years, Rosarito has also become a famous Spring Break destination for college students from California, Arizona, and beyond.

Restaurants

Ortega's--This Puerto Nuevo (10 minutes south of Rosarito) hot spot is famous for it's lobster. Lobster is fried and served with warm, fresh tortillas, melted butter, refried beans, and salsa. Yum!

El Nido--In the heart of downtown Rosarito, El Nido ("The Nest"), offers a wide variety of Mexican dishes including a large selection of game. The inside of the restaurant resembles a tropical garden. Mariachis stroll from table to table taking song requests.

Tacos El Yaqui--If you are looking for a typical Mexican streetfood experience, Tacos El Yaqui is the place. Their specialty are the tacos perrones - carne asada tacos with melted cheese, a heaping of pinto beans, cilantro, and onion. Get there early or be prepared to wait in line!

For more information on Rosarito, please visit the Official Rosarito Website at: http://www.rosarito.org/

What is Ejido land?

"Ejido" is a piece of land where a group of people live and work and determine the best use for the land. The concept of ejido land is Pre-Hispanic and the concepts behind the ejido come from democratic communism. In 1917, an article in the Mexican constitution was created and stated that ejido land could not be sold. The article was ammended in 1992 to give ejido owners title to land used for farming and ranching, which allows them to sell their land to private parties, including foreigners.

Much of the confusion about Ejido land stems from the Punta Banda case in Ensenada. Many Americans became nervous about purchasing property in Mexico after they saw news reports about Americans expatriates in Ensenada whose land and homes were "taken away" from them. So what really happened?

• The Americans were sold land by someone who did not have the legal right to sell the land
• Purchasers ignored the fact that the land was in litigation when they bought it
• The deals seemed too good to be true, and in the end, they were

Purchasing property in Mexico can be just as safe as in the U.S. or Canada. Many companies such as First American Title and Stewart Title now offer title insurance for property in Mexico.

The Next Property Hot Spots

New developments in Mexico and Latin America are springing up everyday.
In a recent article, Newsweek interviewed the CEO of The Related Group, Jorge Pérez, to get his thoughts on the next property hot spots.

"Does your foray into Latin America reflect a belief that the U.S. market is maxed out?"

"It has something to do with it. In a couple of years Miami produced more condominiums than in the last 10. So we looked at Baja, Cancún, Acapulco, Zihuatanejo, Panama, Costa Rica. You find you could get branded properties at a fraction of what you could get in the United States, and as long as those places were safe and relatively stable, we felt that there would be a shift in demand to those locations. That’s where we made our bets. I’ve been plotting doing things in Latin America for at least three years, and places like Puerto Vallarta, Cabo San Lucas and Ensenada are just another natural progression of the American market for second-home ownership and tourism."

To read the entire Newsweek article, please visit:
http://www.msnbc.msn.com/id/18593455/site/newsweek/

Financing in Mexico - FINALLY!

Up until a few years ago, financing a property in Mexico was unheard of. Real estate transactions were cash only, and only a small number of people could afford to purchase property. Thanks to an increased demand, several U.S. mortgage companies are now offering financing to qualified buyers.

Financing programs are available to both U.S. and Canadian citizens. Loans for a dream home purchase are available from $100,000 to $5,000,000 USD (higher upon approval). The process for obtaining a loan for a home purchase in Mexico is very similar to the U.S.. One of the main differences is the escrow time. Escrow can range from 45-60 days, but can be streamlined by the buyer and seller providing all of the necessary paperwork on time. U.S. title companies, such as Stewart Title and First American, are used along with U.S. appraisals.

Make your dream home in Mexico become a reality...contact me with any questions you may have about obtaining a loan or Mexico in general!

CBS Rosarito Beach News Coverage

Can I buy property in Mexico as a foreigner?

One of the questions that I am asked most often is "Can I buy property in Mexico as a foreigner?". Due to misinformation, there is a lot of confusion about this issue.

The simple answer: Foreigners can own property in Mexico.

In order to better understand how you can own property in Mexico, we will divide it up into two different categories:

1. Restricted border/coastal zones
2. Interior (everything outside of the border/coastal zones)

RESTRICTED ZONES
The restricted zones in Mexico consist of all land that falls within 50km of the coast, 100km of the U.S.-Mexico border, and all of Baja California. Foreigners can own property in the restricted zones through a fidecomiso (Bank Trust). Through the trust, you own the property in all but name. This means that you have full rights to do whatever you want with your property--you can develop it, sell it, rent it, lease it, give it away and will it.

INTERIOR
In the interior of Mexico, foreigners may own land outright. As with property inside the restricted zones, you have full rights to use your property as you wish.