Cabo San Lucas Real Estate, Listings, Homes, Condos, Land - Prudential Cabo

Cabo Mexico Real Estate: High-Season Numbers Point to Promising Year for Tourism

As the high season for travel to Mexico kicked off on Thanksgiving weekend, early indicators are that both tourism and the second-home market remain strong despite recent setbacks in the U.S. economy.

Cancun, Puerto Vallarta, San Jose Cabo and Mexico City took four of the top 10 spots in a ranking of the most popular international destinations for U.S. travelers over the Thanksgiving 2007 weekend. The rankings were based on air ticket sales on Orbitz.com for departures between November 21 and November 25.

Real estate developers in Mexico also report that interest in second homes is high among U.S. buyers. In Punta Mita, a 1,500-acre, master-planned, second home community near Puerto Vallarta on the Pacific Coast, new-home sales are up 40 percent year-to-date compared with the same period in 2006. Other strong second-home markets for U.S. buyers include Los Cabos, Cancun and the Mayan Riviera as well as inland locations like San Miguel de Allende, Ajijic and Cuernavaca. more via PRNewsWire

Casa Loewen Sierra Dorada Lot 9, Cabo Real Estate

Custom built 2 story, 2 bed, 2 1/2 bathroom home in Sierra Dorada. Living and dinning are upstairs with great ocean view. The house is completely furnished but the furniture is not included in the price. If buyer is interested in the furniture the price for it can be negotiated. Please call listing agent to show, will only be toured agent guided and by appointment.

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Misiones del Cabo #4405, Ocean view Cabo Condo

Brand new remodelled 2 BR, 2BA unit in Misiones del Cabo. Enjoy sun or moon rise from your covered terrace on the 4th floor.

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Mexican Myths: Buying Baja Real Estate

In our time here doing real estate in Mexico, there are several questions that come up again and again. Two questions come up more consistently than the rest: Can foreigners own property in Mexico or is the land only leased? Are all transactions in cash or will US banks lend money for Mexican property?

The first question is loosely based on fact. It is true that the entire Baja Peninsula is considered a “Restricted Zone,” so foreigners can’t hold fee simple title. However, in 1971, Mexico established the bank trust (fideicomiso) to encourage foreign investment in Mexico. The bank trust is basically a work-around that allows foreigners to effectively own land in the Baja. The mechanics are fairly complex, but the result is that the title to the property is transferred to a Mexican bank with the foreign buyer as the beneficiary. The foreign buyer maintains all the rights of ownership, including the ability to buy, sell, lease, improve, transfer, etc.

Because of this legal construct, closing costs in Mexico are higher typicaly than they are in the US, usually adding between 5%-10% to the purchase price. But the bank trust has opened the Baja up for foreign investment, and business has been booming ever since. Cabo San Lucas is now home to a Wal-Mart, Sam’s Club, Costco, Home Depot, and Office Depot. There are over 400 realtors and hundreds of properties change hands daily in Cabo.

Will US banks lend in Mexico? Until recently the answer to this question has been, No. Most transactions since 1971 have been cash transactions with some builder financing. Fortunately, that has changed. Now, not only will US banks lend, but they will also cash-out refinance and loan against land for construction costs. Additionally, programs that have been staples in the US are gradually migrating south of the border. Currently, you can purchase with as little as 20% down. No-doc and stated income programs are also available for those with qualifying credit scores (typically above 650).

Cabo is golden, both aesthetically and for the investment-minded individual. Foreigners usually find they have significantly more buying power in Cabo and the options have never been more prolific. Don’t let some old rumors keep you from looking into things for your self. Find a credible Realtor and book a trip. You’ll be glad you came.

Cameron Boyle and Angie Potter are realtors for Prudential California Reality Cabo Gold Division. You can visit their website at www.goldencabo.com