Wednesday, December 17, 2008

Mexico Second Home Markets Still Sunny

American's appetite for second homes in Mexico remains strong, says Carlos Garza, CEO of Texas-based INB Financial Corp., which started offering corss-border mortgages last year. Evidence of the demand: Mexico's top bank, BBVA Bancomer has made about $115 million in loans to Americans and Canadians so far this year and has a full-year goal of $200 million. The average loan is about $500,000.

Most of BBVA's business has come from professionally active Americans, ages 40 to 55, who are looking for a weekend retreat, and from semi-retired buyers between the ages 55 and 60 who spend several months a year in Mexico, says Isidoro Sanchez, a director of business development at BBVA Bancomer.

"Given the kind of homes that are being purchased in the $800,000 to $2 million range, this is a segment that is still buying even though there is a crisis in the U.S." Sanchez says. Mexico City-based real estate research firm Softec Consultoria inmobilaria predicts vacation home sales to foreigners are set to reach 35,000 units worth $17 billion in 2012, up from 18,000 units sold for $6.4 billion in 2007.

(Source: Dow Jones International News, 9/03/2008)

Thursday, December 4, 2008

The East Cape

Here's a nice overview provided by Rancho Del Sol, an exclusive new master planned development located between Vinoramas and Los Frailes on Baja's burgeoning East Cape.

Over the years, the Los Cabos region has developed a favorable reputation among sportsman even though for many years, the area was only accessible to tourists by private yacht or aircraft. Early development included Cabo San Lucas' Finisterra and Somar hotels. The Los Cabos and East Cape regions have an appealing desert climate, which is surprisingly cool for its tropical latitude. Receiving little rain, except for the month of September, the area enjoys up to about 350 days of sunshine each year. During winter, daytime temperatures range in the low 70s Fahrenheit while the summer months typically have daytime high temperatures in the high 80s to low 90s. Night temperatures typically range from 55 Fahrenheit in the winter to the 70s in the summer.

There is no question over the success of Los Cabos and the gains that have come with investing in the region. Institutional, corporate and private investors across multiple demographics make up the various components to the backbone of successful investment in the area and there is little doubt over continued growth as it heads east beyond the Corridor, the twenty mile stretch between Cabo San Lucas and San Jose del Cabo, towards the East Cape. Known for its beautiful beaches, excellent fishing and relaxed atmosphere, the East Cape is one of the fastest growing Mexican tourist destinations. There are ground level opportunities within a broad range of business classes and as trade in the region grows and develops, the East Cape will surely continue becoming a premier business and development opportunity.

Large projects are in the works by hotel groups from Mexico, the U.S. and as far away as Spain. The East Cape area is virtually the same drive time from the Los Cabos International Airport as it is to Cabo San Lucas. The area is what many say Cabo was 20 years ago, however will be what Cabo is today sooner and will attract far more reaching global markets, investments and tourism capital as it matures.