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.