Over the last few years some people postponed investing in real estate in Mexico.  Some because of the biased and slanted news stories regarding violent crime, and some because they’ve been waiting for prices to fall to their lowest point.  Other posts on this blog have addressed the media bias regarding drug related crime in Mexico.  Suffice it to say, most of the crimes have been confined to less than 5% of the country and most of it occurs along the Mexican/United States border leaving the rest of Mexican residents to get on with the activities of their daily lives. Working, going to school, shopping, going to school and so on.

In spite of the onslaught by the media, 5,000,000 Americans visited Mexico in 2010. Up by 20% over the previous year. Mexico remains the #1 retirement destination in the world for Americans and currently 1.5 million to 2 million US and Canadian citizens own property and live full or part time in Mexico. Because of the aging Baby Boomers this number will grow exponentially as part of what has been called the “Largest southern migration to Mexico of people and real estate assets since the Civil War.” By the most conservative estimate 6,000,000 United States and Canadian Baby Boomers are on their way to owning property in Mexico over the next 15 years. Now is the time to get in front of this real estate investment tsunaimi.

As a Realtor in Los Cabos, and Associate Broker with CaboRealty, I need to keep my finger on the pulse of  Los Cabos real estate. Here are some statistics taken from our Multiple Listing Service.

• Year to date (5/8/2011) number of  condominiums sold in Los Cabos,  45. YTD sales in 2010, 24. Almost twice as many sales  this year.
• Average price of a condominium YTD 2011, $$329,093. Average price of condominium YTD 2010, $665,321.  A reduction in sales prices of more than 50%.
• Number of homes sold YTD 2011, 81.  Number of homes sold YTD 2010, 50.
• Average price of homes sold YTD 2010, $996,494. Average price of homes sold YTD 2011, $438,382.

Prices are down and the number of sales is up. Both substantially.  The trend says more and more buyers are coming back into the market. Trying to time the market is difficult at best. Waiting can be costly. Start your due diligence now before prices start back up. For some of the reasons to buy in Los Cabos, Mexico, watch the video above. For help with your real estate needs in Los Cabos, visit CaboRealty.com.  With more than a dozen years in business and millions of dollars in sales we are here to help.

Title insurance is available in Mexico.   A title policy, issued in conformance with Mexican law, will protect the amount of the buyer’s investment.   In order to obtain a policy of title insurance, a title investigation must be carried out.   This investigation will report potential issues and problems.   If none are found, or if the issues are solvable, a commitment will be issued and the policy will be written at the time title transfers to the buyer who ordered the investigation.

If the title company reports problems that cannot be resolved, the potential buyer will at least be fully aware of the risk and can decide whether or not to proceed with the purchase.   Some problems are not immediately known, however.   When this happens and, if a problem arises at any time during the ownership of the party registered on the policy, it is necessary only to contact the title insurance company who is then legally bound to fight the issue and, in the event it does not win, owner is compensated up to the amount declared in the policy.

Title insurance is NOT an expensive proposition.   The title investigation cost will depend upon the area where the property is located and can range from 450 USD. to 3,000.USD.  Actual cost will depend upon whether or not a title data base has been created.   When a new data base must be created obviously more time, and hence, greater cost, will be involved.  The premium, a one time payment, will run from 6.00 USD to 7.50 USD per 1,000. USD valuation, plus tax.  Thus an insurance policy on a 200,000. USD property can cost $1,200 to 1,600. USD. which seems to be a small amount to pay for the security afforded.  The prudent buyer will always include the cost of title insurance investigation and policy in his closing budget.

Two US companies have title policies approved in Mexico for use on properties located in Mexico.   It is important that this option be made available to any and all considering a purchase of property in Mexico.

Thanks to Linda Neil, The Settlement Company

BUYING REAL ESTATE IN MEXICO:  QUESTIONS AND ANSWERS

Q: I’ve always heard that foreigners can’t buy coastal property in Mexico, is that true?
No. While it was once true, times have changed. Prior to 1973, foreigners were not allowed to hold legal title or exercise direct rights to real property in an area within 64 miles of Mexico’s borders and 32 miles of its coasts. But laws passed in 1973 and1993 have made it possible for foreigners, foreign firms and Mexican firms with foreign participation to acquire interests in coastal real estate through a bank trust (Fideicomiso).
Q: Who is involved in this bank trust?
Three parties. The seller of the property is the Trustor. The bank is the Trustee. (Fiduciario), and the buyer, or Beneficiary (Fideicomisario).
Q: How does the trust function?
Title to the property is transferred to a trust with a Mexican bank acting as Trustee. The Trust Agreement is formalized by the issuance of a permit from the Mexican Ministry of Foreign Affairs. The lot or home buyer is designated as Beneficiary in the Trust and the beneficiary rights are recorded in the public record by a Notary Public.
Q: What are my rights as a buyer?
The trust is a legal substitute for fee simple ownership, but in this case, the Trustee is the legal holder of the property. As Beneficiary, you have the right to sell your property without restriction. You may also transfer your rights to a third party, or pass it on to named heirs.
Q: Is the trust renewable?
Yes. According to the Foreign Investment Law passed in 1993, trusts can be renewed for an indefinite number of successive 50 year periods. In effect they run in perpetuity.
Q: If at a later date, I decide to sell my property can anyone buy it?
Yes. If the buyer is also a foreigner, you simply assign beneficial rights. If the new buyer is a Mexican National, you can instruct the bank to endorse the title in favor of the buyer.
Q: If the buyers is a foreigner, is his interest limited to the balance of my 50 year trust?
No. Upon application, a foreigner automatically receives his own renewal 50 year permit. This, however, is not mandatory.
Q: Do many foreigners currently own coastal property in Mexico?
Yes. Today thousands of foreign owners enjoy their ocean side resort property; many have benefited from the appreciation of their property.

More to follow…

Violent Deaths in Mexico: Everything Is Not as it Seems
In recent months the debate about violence in Mexico has heated up significantly. Most news channels have been giving a broad coverage on the facts of crime, which are usually focused on the issue of combating organized crime.
When it comes to human lives, it is always difficult to speak coldly about figures. But when we need to know what really is going on, in terms of crime, we can do nothing but refer to them.
The indicator which measures the violence in a country is the number of violent deaths per 100,000 people. This indicator has the advantage of allowing us to compare figures between countries with different population sizes.
This indicator is highly reliable and comparable between countries of the world, since in all countries it is necessary to produce death certificates to account for a death caused for any reason whatsoever. In the case of violent deaths, there is no possibility that this indicator, unlike others, observe significant levels of sub report because violent deaths are registred by law in all countries.
According the available indicators, Mexico as a country has a general level of 13.3 violent deaths per 100.000 inhabitants, making it one of the safest countries in Latin America. Levels in Argentina, Brazil and Venezuela surprised us since they are at high as 16.8, 36.7 and 44.9 deaths per 100,000 population, respectively. Brazil and Venezuela are two and almost three times more violent than Mexico, respectively.
Moreover, if we compare this indicator with some U.S. cities we will see that our country is much better than we would expect to imagine. Comparing Mexico to Washington DC, New Orleans or Detroit the difference is very big, violence is a tangible problem in those cities. And without going too far, Mexico City has 9.8 violent deaths per 100,000 people, far below of other major cities like Houston, with 12.5, Phoenix, witn 12.6, and Los Angeles, with 17.1. It is true that there is a big problem in Ciudad Juarez and three other municipalities, which altogether sum up to more than 50% of violent deaths in Mexico. The rest of the 2,396 municipalities which form the country have relatively low violence levels.
According to figures provided by the government of Mexico, the battle against organized crime has caused 24,826 violent deaths in the last four years. As it is often said, inside and outside the country, it has turned Mexico in an extremely dangerous country to live. A country that sadly some have said is in “civil war” and that is a “failed state.” This is definitely not true.
Although a number like 24,826 seems pretty high, it is time to put it in context. This number represents a little over 6,000 deaths per year on average. Each year, 20,000 people die in Mexico in road accidents and more than 50,000 because of diabetes. If we look at violent deaths to compare, in the U.S. 6,000 veterans commit suicide every year. So, during the same period, the same amount of persons have died as a consequence of the U.S. post-war trauma, as the war on drugs in Mexico.
And while there is some exposure about this phenomenon in the U.S. media, it does not reach the same exposure as in Mexico. Here we are in a frenzy of daily information that the only thing it communicates is the presence of violence. Our conversations with family, friends, office, restaurants, are all about violence. We entertain ourselves and entertain others, including foreigners, in the idea that violence in Mexico has reached unsuspected levels. And there’s no evidence to support that. It is only our perception. We find ourselves filtering and searching all events and news, looking for those that speak of violence. And likewise, those are the news we speak about. It is a conversation, just a conversation.
This has affected the levels of tourism, investment and economic prospects for the country, and it is not supported by real figures, data and facts, it is only a perception. The good news is that we have the power to change that perception. It just takes to take a look at the data and facts.
Ultimately, the best way to combat any violence is to leave the fear that is generating this behind and doing something that makes us confident. Entertain ourselves and entertain others with the fact that violence stops us, it paralyzes us. What would be possible if we focus on facts and data to make us and others see that we can be responsible for creating an environment to grow and prosper instead of creating a violent space with our everyday conversations? You have this power, do it for North America and in the end you will be doing something positive for yourself and for others.

Thanks to Alexander Ogilvy, President AMPI, Loreto for providing this article

Outdoor activities galore here in Los Cabos. Take your pick. World class sports fishing. Some of the best golf courses on the planet. Hunting. And racing Baja style!

promo Dos mares 500 2010 de RIGOS VIDEOS from army66 on Vimeo.

While Jim Cramer chose San Miguel de Allende, there are 1,000s of other safe real estate investments in Mexico. For example Los Cabos. See more below.

For more information about investing in real estate in Los Cabos visit us at www.caborealty.com

<iframe width=”640″ height=”390″ src=”http://www.youtube.com/embed/LZCCp372juY?rel=0″ frameborder=”0″ allowfullscreen></iframe>
Over the last few years some people postponed investing in real estate in Mexico.  Some because of the biased and slanted news stories regarding violent crime, and some because they’ve been waiting to wait for prices to fall to their lowest.  Other posts on this blog have addressed the media bias regarding drug related crime in Mexico.  Suffice it to say, most of the crimes have been confined to less than 5% of the country and most of it occurs along the Mexican/United States border leaving the rest of Mexicans residents to get on with the activities of their daily lives. Working, going to school, shopping, going to school and so on.

In spite of the onslaught by the media, 5,000,000 Americans visited Mexico in 2010. Up by 20% over the previous year. Mexico remains the #1 retirement destination in the world for Americans and currently 1.5 million to 2 million US and Canadian citizens own property and live full or part time in Mexico. Because of the aging Baby Boomers this number will grow exponentially as part of what has been called the “Largest southern migration to Mexico of people and real estate assets since the Civil War.” By the most conservative estimate 6,000,000 United States and Canadian Baby Boomers are on their way to owning property in Mexico over the next 15 years. Now is the time to get in front of this real estate investment tsunaimi.

As a Realtor in Los Cabos, and Associate Broker with CaboRealty, I need to keep my finger on the pulse of  Los Cabos real estate. Here are some statistics taken from our Multiple Listinlog Service.

• Year to date (5/8/2011) number of  condominiums sold in Los Cabos,  45. YTD sales in 2010, 24. Almost twice as many sales  this year.
• Average price of a condominium YTD 2011, $$329,093. Average price of condominium YTD 2010, $665,321.  A reduction in sales prices of more than 50%.
• Number of homes sold YTD 2011, 81.  Number of homes sold YTD 2010, 50.
• Average price of homes sold YTD 2010, $996,494. Average price of homes sold YTD 2011, $438,382.

Prices are down and the number of sales is up. Both substantially.  The trend says more and more buyers are coming back to the market. Trying to time the market is difficult at best. Waiting can be costly. Start your due diligence now before prices start back up. For some of the reasons to buy in Los Cabos, Mexico, watch the following video. For help with your real estate needs in Los Cabos, visit CaboRealty.com.  With more than a dozen years in business and millions of dollars in sales we are here to help.

These people are true heroes. They risk their lives without question to rescue these magnificent creatures. Baja Expeditions, we at CaboHomes take our hats off to you.

FOR IMMEDIATE RELEASE

CONTACT: Seth Romans
Cabo Expeditions
seth@caboexpeditions.com.mx
(624) 143-2700

CABO EXPEDITIONS RESCUES HUMPBACK WHALE!
Trapped Whale in Fish Net Saved…

Cabo San Lucas, Mexico — Each year, the migration of thousands of whales from the cooling arctic oceans migrate to the warm waters surrounding the Baja Peninsula where the Pacific Ocean meets with the Sea of Cortez. Annually, from the beginning of December through approximately the second week of April, Los Cabos becomes the Mecca for whale watching on water or sightings from land at local resorts or hotels.

These incredible mammals celebrate over a 10,000-mile journey each year and then repeat this natural process. Once in a while, a whale will get tangled in a fishing net dozens of miles from the shore. For some time now, fishermen and their nets have been monitored in Mexico by a variety of governmental agencies who implement standardized regulations. Fishermen always abide with the fishing regulations but sometimes, a whale will not recognize the hazard and gets tangled inadvertently.

On the morning of February 8th, 2011, an unfortunate whale probably miles upon miles from shore was caught up in a fisherman’s net. Oftentimes, a whale’s natural tendency can be to swim to shore whereas they may beach themselves. In this instance, it seemed very likely that this adult-male Humpback whale was headed to the shore with a 75% chance of drowning or being beached had Cabo Expeditions and the Mexican Navy not gotten to it in time.

Around 10 A.M. local time, a number of phone calls were made from local fishermen on their fishing boats and other whale watching companies to Cabo Expeditions with a whale in distress. Immediately, the SCUBA diving, boat captain and marine biologist teams prepared themselves. Administrators at Cabo Expeditions notified the Mexican Navy who works in conjunction with whale-rescue efforts.

Approximately 1 ½ miles from the shore, in front of the RIU Hotel in Cabo San Lucas, an adult Humpback whale weighing approximately 35 tons with a length of 40 feet had its torso down to the tail wrapped in fishing net. Cabo Expeditions and the Mexican Navy were ready with a total of 10 people. One team of divers works in unison with another team who place buoys around the whale as it surfaces and dives down. The buoys are tied at either of end of a rope, widthwise. Light-weight hooks are then attached to either side of the net eventually allowing the whale to try and swim free. The process and cutting away of the net has to be repeated until the whale is completely freed.

By 12 noon today, Cabo Expeditions along with the Mexican Navy had successfully freed the fortunate Humpback whale. Oscar Ortiz, owner of Cabo Expeditions is quoted as saying, “Over the last 7 years now, we have been prepared as a company internally to help save and ultimately rescue whales. Thankfully, we have also been blessed by saving a total of 10 whales’ lives. The protection and preservation of these amazing animals is both our passion and mission in Los Cabos.”

For more information about Cabo Expeditions, please call 011 52 (624) 143-2700 or visit us at www.caboexpeditions.com.mx. The launch of our new website will be in March, 2011.

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