Kent White Puerto Peñasco Real Estate

Puerto Penasco Commercial Property

Kent White — Sat, 26 Feb 2011 19:23:00 GMT

Rocky Point, also known as Puerto Penasco sits about an hour south of the US border and has become a high end tourist destination. This location is so popular due to its short drive time to Phoenix and Tucson residents. Some commercial opportunities are available due to the close proximaty of such large northern cities. One lot in particular priced less than half of what any neighboring lots ar acreage are listed for, (Based on square meter pricing) will certainly benifit the right person with the needs of a large parcel and Hwy frontage. This lot is 35,000 square meters, 3.5 hectares or 8.6 acres and sits right at the entrance of the major beachfront destination of Rocky Point and the Coastal Highway. It has a wnderfully secure entrance as both neighboring parcels have high walls with security.Electricity and water are available at the highway access point. To see what an amazing deal this is click on the link below.

Rocky Point Commercial property on highway entrance.

$110,000 condo in Beachfront Resort on Sandy Beach, Rocky Point

Kent White — Wed, 15 Jul 2009 18:34:00 GMT

A recently reduced price on a condo in Puerto Penasco's Princesa Resort is truly worth noting. Just try to find any livable real estate literally sitting on the beach for less, anywhere! What's more this attractive unit is totally furnished and is in a very popular resort community right on Sandy Beach.

Princesa B 505 is a special bargain that is priced lower than ANY other known condos within ANY beachfront communities for hundreds of miles.

Sandy Beach condo in Rocky Point, Mexico price Reduced to $125,000

Kent White — Wed, 01 Jul 2009 16:59:00 GMT

This Princesa condominium is priced to sell @ $125,000
It has wonderful views down Sandy Beach towards the Old Port and also straight out to the beach and beautiful Sea of Cortez.

For more information see attached flyer or click on the link below...

Flyer SANDY BEACH ROCKY POINT, MEXICO CONDO

More PRINCESA B 505 INFORMATION

Los Conchas Rocky Point Beachfront Best Buy

Kent White — Wed, 01 Jul 2009 14:06:00 GMT

In the beachfront community of Rocky Point, (Puerto Penasco) one hour south of the US border there lies some amazing values. Because the world economy has many property owners seriously motivated, savy investors could end up with properties priced far under true market value.

One example of the investment potential of Rocky Point's real estate market is in the highly sought after beach front development of Las Conchas. This bargain is worthy enough to mention in any investment discussion. I do not believe that there has been a beachfront lot in Las Conchas listed below $500,000 for several years, let alone a livable beachfront condominium. The condo I refer to is in the Las Olas beachfront section in the middle of this mostly US owned community
This $275,000 condo is in the high demand section of Las Olas.

BEACHFRONT CONDO FLYER

MORE INFORMATION

$275,000 for a LAS CONCHAS BEACHFRONT CONDO

Price Reduced on 09-Las Olas in Las Conchas

Kent White — Wed, 01 Jul 2009 00:46:00 GMT

Las Conchas, Puerto Penasco/Rocky Point - Announcing a price reduction on 09-Las Olas, a 1,100 sq. ft., 2 bath, 2 bdrm single story. Now MLS® $275,000 USD - Cheaper than Sand.

Property information

The Puerto Penasco real estate market has shifted full circle into a buyer's market

Kent White — Sun, 14 Jun 2009 03:56:00 GMT

Rocky Point, Puerto Peñasco, Mexico, has been on an unbelievable ride. We have seen a little fishing town turn into an investor’s paradise with thousands of condo’s rising from the sand at a record pace, then a sudden halt because of bad press and equally poor economies. Now with adjustments being made regarding values, we have shifted into an unprecedented buyer’s market. When the condos were going up, the words said to Kevin Costner in The Field of Dreams, “Build it and they will come”, summed it up, and our seller’s market was in full swing. Now with the world economy shifting and so many people really needing out, the morph is on, and some of the best investments in Rocky Point real estate history are available
Real estate in Mexico is as promising an investment as most any in the world. However, just like any investments, it is important to know what you are getting involved in. There are dynamics associated that separate each individual case. An investor must make sure that his agent asks the right questions and understands his specific needs. For example, if a property is not yet built there is a different set of risk verses reward questions that come into play. Now, in a market where many seller’s are in what some call fire sale mode, there is a huge opportunity to invest pennies on the dollar and come out way ahead.
It is very important to pick a company and an agent with a background of success. Realty Executives and Kent White have proven themselves all along Sonora’s “Golden Coast”.
As President of the Puerto Penasco AMPI chapter, Kent was instrumental in the development of the licensing process now an enforceable law in the state of Sonora and it is expected to spread throughout Mexico's real estate industry. This wonderful milestone will help AMPI raise the bar when it comes to accountability and trust of process.
Realty Executives has represented investors from El Golfo to San Carlos / Guaymas, but specialize in areas like Santo Tomas to Rocky Point. They've helped hundreds of buyers and sellers achieve their goals. From condos on Rocky Point’s Sandy Beach, houses in Playa Encanto, or Las Conchas, investment parcels along the coastline or simply checking the security of a title, Realty Executives Rocky Point can handle the task.
Remember, You can enjoy your investment portfolio on the Sonoran beaches.

Price Reduced on 418-Pinacate in Pinacate

Kent White — Tue, 07 Oct 2008 17:49:00 GMT

Pinacate, Sandy Beach - Announcing a price reduction on 418-Pinacate, a 1,100 sq. ft., 2 bath, 2 bdrm single story. Now MLS® $164,000 USD - Under priced & terms.

Property information

ROCKY POINT BUYER'S MARKET BECKONS

Kent White — Fri, 06 Jun 2008 15:59:00 GMT

April Report from our AMPI President

Kent White

Realty Executives

A.M.P.I. President

realtyexecsmexico.com

In the ever cyclical world of economics we certainly see the seasons change. This is evident especially as it refers to real estate. Many people, sitting there with their glass half empty continue to refer to our stage in the cycle as the Fall or Winter. However, as we have seen by recent indicators, the excitement is here. In Rocky Point’s market, those who look past what the press from the north tells us, continue to do well. Agents and buyers alike that don’t see the doom and gloom see the potential of a shifting market. Let’s face it, as it applies to Real property there are two markets, buyer’s markets and seller’s markets. Sure we saw some hard times for awhile, this is what is called the correction period. We needed it. We had a fever during the initial boom that laid the foundation for our long term growth period. Economists still see Puerto Peñasco as one of the fastest growing, and long term growth destinations in Latin America. All of the studies done on both sides of the border by different experts on our specific market agree we are destined to be an international powerhouse. None of them said the chart would be a straight upward line. With the same logic, we should not expect to follow the same curve as the United States. We are a second home community and an investment community. Many of the baby boomers with the notion of retirement in their sight still see the need to invest, and this is a great time to invest as there are many deals to be found. Many people that have the fortitude to buy a second home are not affected by the issues that have used up so much ink in the papers lately. And some that overbought need out. Rocky Point’s resale market right now has numerous condos, houses and land listed at below their true value. This is not to say that everything is priced to sell, but with proper representation and patience, now is a great time to learn what is available and understand that there are special deals popping up everywhere.

Resort communities do not reflect the same dynamics found in markets of need.

Many of us that took the ride for several years understand the market was in its infancy, as a highly attractive resort community with beaches that hold their own against any comparable destination. In a booming economy both buyers and sellers are happy, with fresh new products unveiled monthly. Unfortunately, because the wave was so fast and furious many surfers saw the wrath of the wave’s downturn. The wave was building so fast and developers saw no reason to level out prices since the buyers kept coming. Some less rooted investors that may have gotten in late have reasons to get out. This created the buyers market that many savvy investors are taking advantage of now. The excitement is here, and deals are being made. Right now the resale market is showing huge promise, and professionals in the know are feeling the buzz.

When looking at the big picture one must only look at what Rocky Point has coming, to understand the future is just beginning. This is obvious by the time and money the officials are investing here. Janet Napolitano and Arnold Schwarzenegger and all of the other governors from the border states of the US and Mexico did not choose to meet here because it was convenient. The Coastal Highway and the Airport are soon to be a reality. The Municipality is paving more roads than ever before. The Marriott Hotel group has introduced The Peñasco Bay Towers, a 28 story 265 room four diamond hotel. This alone would certainly add to the international attention.

Recently, Sonora authorities and Federal authorities met with the decision makers of several cruise lines, including Carnival and Holland America to fine tune the plan for future cruise lines to include Puerto Penasco in their itinerary. Epifanio Salido Pavlovich introduced the proposed Cruise ship route through the Sea of Cortez, which includes the creation of a terminal in Puerto Peñasco.

"Soon we will have the visit from the delegation and the Florida Caribbean Cruise Association for Puerto Peñasco to revise the draft as Home Port and Guaymas to see the progress of infrastructure that is taking place at this time, as well as tours yet to be defined, and training for health care providers in the locality," he explained.

With all of this and so much more, we will be a preferred destination for tourists and investors alike for many years to come. The Spring is here, and we are still in our infancy. This market will not be crashing anytime soon. In fact economies not scared by the media have continued to look for investments in this paradise some of us call home. Canadians and many Mexicans from around the country as well as those living in the US are looking this way for the bargains. It is important for investors to find reputable representation that will educate them through the research stage as there is a wide variety of options; Good and bad. In a time considered to be a buyers market there is a surplus of inventory. The available condos, homes and land are so diverse that you need a seasoned representative. There are plenty of agents in this town with credentials you can trust. If an agent is an AMPI member, for example, he or she is a state recognized, licensed agent. The most important thing that a buyer or seller gets with an AMPI affiliated agent is accountability. This accountability will make the difference between you looking back and knowing you found one of those bargains, or one of the many less than adequate outcomes that happen to would be investors everywhere. It would be irresponsible to stress that if one doesn’t jump now they’ll miss the buyers market. But it could also be wrong to think that this market is going to keep sliding for a long time. Even in the US market of today savvy investors are currently buying, hence the term buyers market.

BABY BOOMERS LOOK TO ROCKY POINT FOR RETIREMENT

Kent White — Fri, 06 Jun 2008 14:50:00 GMT

BABY BOOMERS LOOK TO ROCKY POINT FOR RETIREMENT

Everyday more people join the ranks of retirees living like royalty on tiny budgets in Mexico. Mexico is the preferred location for Americans living abroad. Twenty five percent or one million of the four million Americans living abroad live in Mexico and why not! You can trade in your suburban home in the U.S. for a seaside estate south of the border, live in elegance with beautiful expansive views in a relaxed lifestyle. In Mexico, you can easily afford the help that makes this style of living easy.

By 2011 the first wave of baby boomers will retire, that’s approximately 78 million people. Most of these retirees can modestly retire in the U.S., or live amazingly better in Mexico. Currently there are 25,000 North Americans retiring each year. Rocky Point is expected to be one of the leaders in Mexico’s growing retirement migration destinations.

One of the attributes that is credited for these numbers is that its relaxed and refreshing atmosphere is so close to the border. As investors consider what is important for them in retirement, the proximity to the border is important. Accessibility to an airport, ease of doing business, communication and infrastructure are also important considerations.

Because the number of retirees is soon to grow exponentially and many will be migrating south, a recent study was done to analyze the demands, travel habits and perceptions of Mexico as a tourist destination in Americans over 50. The study was conducted by the Council for the Promotion of Tourism for Mexico. The list below is what was deduced, and is partly why so many savvy investors are looking here now.

1 The cost of living is lower

2 The weather is better, escaping cold climates

3 The economic and political climates are stable

4 Healthcare is excellent and affordable

5 English is widely spoken

6 Foreigners can own, buy, and sell property

7 Its close proximity to the U.S.

8 A mix of varying activities from passive to more vigorous

9 Share differing cultures, people and art

10 Beauty of surroundings

11Reliving previous satisfactory experiences

If anybody is even considering investing in a retirement community, home or destination, they just need to spend a little time here in Puerto Peñasco to realize this is it. With beautiful beaches, sunsets and so much more visual candy, coupled with the lifestyle opportunities here, this little town is simply inspiring. The research involved in making the most important decision for your retirement is so simple. Come to Puerto Peñasco, take your shoes off and stroll on the beach at sunset. But then realistically spend a little more time here, talk to people who live here and enjoy your homework.

While pondering these findings and understanding that the numbers about to retire are staggering, it is no surprise that the Marriott hotel group is investing millions here. This in itself is worth noting. The Marriott hotel group does not jump into a new market without serious studies on long term growth and market potential. The Federal government of Mexico is positioning itself with a Cruise ship home port expected to host cruise lines like Holland America, Princess and Carnival. President Calderon has stated that Puerto Penasco is the most important touristic port in the countries northwestern region.

The International Airport and the Coastal Highway connecting us with the Baja and California are both investments in our future that would not be done without serious deliberation.

Another important consideration drawing retirees is of course healthcare. While Mexico’s healthcare continues to gain respect its northern neighbor’s healthcare is, well, out of control. The U.S. health care system is out of reach for millions of Americans… Carlos Slim, Mexican business magnate and richest man on the planet has partially staked Grupo Star Medica, a Mexican national hospital chain. Plans are underway for new, high-quality medical centers in Mexico to cater to U.S. baby boomers who are buying second homes in Mexico…or who simply want to come to Mexico for cheaper health care than they can find in the United States. Companies like Grupo Star Medica are filling niches created by those new homeowners and vacationers. Baby boomers are also choosing Mexico because its health system is much cheaper than in the United States. Plans are also underway to get more U.S. private insurance companies to pay for medical treatment in Mexico. ''For a U.S. insurance policy to pay for medical treatment, the treatment has to comply with certain quality control standards, and we are going to participate with products to serve this niche,'' said Jaime Jimenez, general director for Mexico Trane, another company following Slim’s lead.

There are 40 million Americans that can’t afford health insurance; therefore there is a need to outsource it. For years thousands of Americans have come to Mexico for affordable dental work and elective surgical procedures. You may have heard, “Ignore your teeth, and they will go away.” Well, the United States has neglected health care reform for so long that its users really are going away…to Mexico!

It is not hard to live a great life for well under $20,000 a year including rent or a mortgage; in fact some are doing so with live in caregivers. Everyone’s lifestyle requirements are different. It’s possible to rent a place on the beach for under $1,000 a month. If you don’t need cable TV or Internet, you can save on those expenses.

If you like to go out to eat frequently, like to travel, play golf, scuba dive, etc., you will obviously spend more money—but still, much less than you would for a similar lifestyle in the U.S.

We are seeing a number of gated communities rise out of the sand. Many of these communities have all the characteristics retirees have come to expect in the states and with a more affordable price. These communities have varying levels of activities on sight, like recreational rooms, fitness centers, walking trails, BBQ areas and so on. There are truly comfortable condominium projects, and even single family homes in secure neighborhoods priced just over $100,000, some within walking distance to the beach. Most projects also offer developer financing. This is where it is important to talk to a credible real estate professional. It would be ill-advised to come down and simply trust that all developments are safe, secure investments. Just like in the states, there are precautions that must be considered. Mexico now has a National Association of Realtors, and we are affiliated with NAR in the US. We are held accountable, and we are AMPI. AMPI is Mexico’s National Association of Realtors. There is a buyer’s checklist provided by AMPI that consists of questions to ask in order to protect buyers. If an agent is an AMPI member, he or she is licensed to sell real estate in Mexico, accountable, and has access to the MLS.

Many baby boomers are looking ahead and investing in their future retirement homes. Right now with the buyers market a reality, there is a great opportunity for those with the foresight to really set up for a great retirement. Anyone that has witnessed the growth explosion here remembers that less than 10 years ago there was nothing but sand on Sandy Beach. In the Summer time a few years back there weren’t three restaurants that had air conditioning. Now one could comfortably dine out at a different establishment every night. In a few years Rocky Point will have all the conveniences retirees could ever want, and they can still drive a few hours north to see the grandchildren.

The author of this article is

Kent White

Realty Executives Rocky Point

AMPI President

kentoblanco@gmail.com

Single Story For Sale in Santo Tomás

Kent White — Thu, 17 Apr 2008 04:01:00 GMT

Hidden treasure

• 2,000 sq. ft., 3 bath single story - MLS® $540,000 USD - Unbelievable deal

Santo Tomás, Sonora - This amazing bargain is a rare find. It is a three bedroom home that sits right next to the beach access within the tranquil community of Santo Tomas, where the beaches rival any sandy beach in the world. The premium lot this home sits on, today would cost over $400,000 and building costs have surpassed $100 per square foot. This home is just over 2,000 square feet with space to add on. There is drinkable water, electricity and clean transferable title throughout the community. The Santo Tomas community is, and always will be a quiet, low density, peaceful community. This truly is a wonderful investment opportunity.

Property information

Price Reduced on 3- BDRM-Estrella Las Dunas Condo in Santo Tomas

Kent White — Mon, 31 Mar 2008 15:21:00 GMT

Santo Tomas, Eastern Beaches - Announcing a price reduction on 3- BDRM-Estrella Las Dunas Condo, a 2,098 sq. ft., 3 bath, 3 bdrm single story. Now MLS® $395,000 USD - Phase one pricing.

Property information

Rocky Point Buyers Market Beckons

Kent White — Sun, 23 Mar 2008 02:52:00 GMT

April Report from our AMPI President

Kent White

Realty Executives

A.M.P.I. President

Resort communities do not reflect the same dynamics found in markets of need.

ALL OF MEXICO IS WATCHING THE LICENSING PROCESS IN ROCKY POINT

Kent White — Thu, 06 Mar 2008 02:44:00 GMT

MEXICO IS WATCHING PUERTO PENASCO REAL ESTATE

March report from our AMPI President

In Mexico City I recently had the opportunity to meet with AMPI presidents from around the country. There were approximately 500 representatives in attendance at this convention and swearing in ceremony for association presidents. It was apparent that all of Mexico’s real estate professionals are paying attention to Sonora and specifically Puerto Penascos’ successes. Each state soon will be working to follow suit with the licensing process Sonora has mandated for all agents. Everyone I listened to commented that the efforts we are pioneering are inspiring officials throughout Mexico, because with licensing, we will be able to enforce accountability. We are gaining huge momentum not only in the respect from Mexico’s federal government but throughout the international real estate world because of our commitment to higher standards and accountability. AMPI national is very interested in learning from what we are doing.

We have established a Sonora Committee of AMPI presidents that has begun to research the possibilities of creating a pool of AMPI certified instructors that can help us with continual education in order maintain the highest of standards. We agreed to create a committee within AMPI where agents representing coastal cities, can discuss issues relative to their specific needs, such as Federal Zone issues and Fiedecomisos.

In Hermosillo, AMPI presidents from Sonora recently met and shared some great ideas. We will continue working together because the licensing process affects all of us. We discussed how we can together make it as beneficial as possible. It was agreed upon that the enforcement part of the process needed to be addressed as soon as possible and that AMPI should assist the state with mandates of compliance as well as the obligation only work with those complying with the law. Leaders from Hermosillo, San Carlos, Guaymas, and Puerto Penasco all then met with the Secretary of Economy of Sonora and had an inspiring dialogue. We were invited to share our concerns with Lic. Rodolfo Elias Calles, Sonora’s representative in charge of the Real Estate licensing process. I enjoyed this meeting because he listened, he cared and he respects our experience and welcomes our assistance in the betterment of our profession which helps us protect our buyers and sellers. We all left the meeting certain that we were on the right path, and that together we really can make a difference.

Licensing is a giant step towards maintainable ethical standards. The diplomado course is the educational arm of the process. This state sponsored course is intended to provide actual and current technical and administrative skills to participants allowing them to improve their performance in real estate activities. It analyzes the legislation of both the federal and state judicial dispositions regarding Real Estate property, as well as covers issues pertaining to taxation, city development, appraisals, trusts, sales strategies, and ethics in the real estate field. The instructors are all national leaders in their respective professions, and came from all over Mexico. This class has forced 40 agents at a time to sit in a classroom for 109 hours and grow together. It has created such a unity among the agents that a movement started to align two real estate associations in Rocky Point. As of today we have had many meetings with the leaders of both groups. Our efforts have changed from better ways of working together to actually starting the process of becoming one organization. I believe this synergy was advanced by the friendships started within the diplomado classes.

The two real estate associations that exist in Rocky Point are both based on the values of high ethical standards and accountability. However, if two associations have similar agendas yet do not communicate properly, they are not working as effectively as they can. AMPI is Mexico’s National Association of Realtors and PPREA (Puerto Peñasco Real Estate Association) is an association of local professionals. We each have our own “Multiple Listing Services”, like systems, and we both understand the need for one source of information to better serve our clients. Both have done well in their quests. However, it is understood by all, that the need for one association is best for members and the real estate community as a whole. Together we can make a difference.

It is our position that any person who receives income based on commissions from sales of real property should be held liable for their actions under the law as it is applied to licensing and the standards that we represent. A realtor is one who has been approved by the National Association of Realtors. (Now International Association of Realtors) AMPI members are allowed to call themselves Realtors, which is a protected brand, not thrown around loosely. Our members will only work with other professionals in compliance with the laws of Sonora. The value to a buyer and seller is in the accountability factor.

Kent White

Realty Executives

A.M.P.I. President

Single Story For Sale in Santo Tomas

Kent White — Fri, 09 Nov 2007 04:16:00 GMT

• 2,836 sq. ft., 2 bath, 2 bdrm single story -

Santo Tomas, Eastern Beaches - The Estrella Las Dunas Condominium project is now under construction at Santo Tomas. In the area of the old beach club, this attractive, secluded low-rise complex is taking shape on the most pristine beaches the Sea of Cortez has to offer.
Featuring 1, 2 and 3 bedroom units, each Estrella Condo includes a private patio or balcony facing the sea.

Numerous amenities will be integrated into the condo area. These include a resort-sized pool, heated spa, outdoor barbeque facilities, outdoor bar and an amphitheater/beachclub facility for events. The adjoining Fitness/Recreation Center will offer several fully equipped exercise areas together with specialized areas for spa services. The lounge in the Center will provide a place to play games, have a drink, have a bite to eat or simply relax while enjoying the spectacular views of the Sea of Cortez.

Located just one hour south of Rocky Point, Santo Tomas is the absolute getaway from the crowds. The Estrella Condos are a welcome, new dimension to the Santo Tomas experience. We invite you to take a look and visit, then let us know how we can assist you to become part of our community.

Kent White

Realty Executives

What is AMPI and why is it important to Mexico and its Investors

Kent White — Thu, 25 Oct 2007 03:43:00 GMT

AMPI, the most widely accepted real estate organization in all of Mexico has made phenomenal progress here in Puerto Peñasco. This internationally respected association of real estate professionals officially became a reality last March and has already become one of the largest associations of any kind ever in Rocky Point with over 100 members. Our local chapter has representation from all of the major real estate companies that operate in and around Puerto Peñasco.

AMPI, having the full endorsement and cooperation of the federal government has the ability to regulate and oversee the ethics of its members. Only credible licensed realtors with continual AMPI approved educational courses can maintain membership of this organization. It is this proactive entity that will take the real estate industry into the future.

The timing could not be better for the positive development of a town that is expected to be one of the hottest resort communities in this hemisphere. Economists from Mexico City have projected our growth explosion to continue for years to come. These expectations are based partially on the fact that we have experienced such astounding progress on drive in traffic alone. The international audience is just starting to look our way with the official announcement of the approval of the Puerto Peñasco Airport, the Coastal highway to be completed in the very near future, connecting us to California, and the Nautical ladder which will encourage more oceanic tourism like small cruise ships.

Rocky Point has seen a housing boom rarely seen before anywhere in the world. Ten years ago there were no condo projects with more than 100 units. In 2000 there was only one project of any large scale. This changed in 2001. Now Sandy beach alone has over 1,600 condos sold, and over 30 condo towers are in some stage of vertical development.

Several towers were sold out in a matter of hours. One tower sold its 109 units in 3 hours and another, 114 in 4 hours. Condos seem to be the most sought after investment properties going in today’s market, partially due to the low maintenance and ease of rental income. Many condo owners boast amazing financial returns in the short term “Rental pool” market.

A new concept gaining popularity by a huge market segment is interval ownership. This is not time share. Interval Ownership, also known as fractional ownership or equity share is a practical concept, which offers the opportunity to own a fully furnished home at a fraction of the cost of purchasing an entire second home. Each purchaser as a shareholder owns an exclusive interest in a home and is entitled to occupy the unit each year for the time interval purchased. There are several large scale developments exclusively marketing this concept.

With newly available mortgage money at reasonable rates more and more people are able to take advantage of the current growth explosion we are experiencing. Others are turning self directed IRAs into real estate investments. Some people have chosen to split ownership on properties with friends, family members or other investment groups. If one truly wants an investment that they can enjoy, Puerto Peñasco is becoming a simple alternative to the less than predictable stock market.

It is very important to work with a reputable real estate professional, as bad investment council can haunt individuals throughout their investment period. The information is out there, and good sound advice is available. The unprecedented investment potential can be achieved, but it is so important to seek the advise of a real estate professional that has the training and the ethical standards that AMPI ensures. Rocky Point is a great place for anyone interested in owning a second home or a secure investment that allows staying at, and enjoying their own portfolio.”

Kent White

Realty Executives, Sonora

kentoblanco@gmail.com

President AMPI, Puerto Peñasco

SANTO TOMAS, SONORA MEXICO's AMAZING BEACHFRONT SECRET

Kent White — Sat, 20 Oct 2007 19:08:00 GMT

SANTO TOMAS, SONORA’S BEST BEACHFRONT SECRET

There are many communities south of Puerto Peñasco that are drawing attention. Most of these developments will show great returns for those who do their proper homework. One that is arguably leading the pack is Santo Tomas. Santo Tomas is happening now.

Las Dunas is the first phase of Santo Tomás, a dramatic combination of 3,360 acres of beautiful Sonoran desert, with 2½ miles of the most pristine swimmer friendly beaches in the state of Sonora. This beautiful setting is located on the edge of a fertile agricultural area where grapes, olives, citrus fruit & most of the country's asparagus are grown.

There are about 20 homes completed and many more in the planning stage in section one. More than two-thirds of the 121 custom building lots in the first 2 phases have been purchased. The average size is 11,384 sq. ft., the smallest is 9,600 sq. ft. Section two consists of 9 oversized beachfront lots ranging from 14,000 to 15,000 sq. ft., and 11 hilltop estate lots which range from 16,000 to 28,000 sq. ft. Section two was just made available for purchase, and believe it or not the beachfront lots start out at $350,000. This is a big difference to the pricing in Puerto Penasco which are hovering around a million dollars for beachfront in most any community. This is really special since the lots in Santo Tomas have underground electricity, drinkable water, and a banktrust available on every lot. This fact cannot be said about any lot in the Puerto Peñasco community or anywhere else for hundreds of miles.

Aguila is the newest community at Santo Tomas. Nestled on the base of the dunes southwest of Las dunas section two, Aguila will be comprised of three phases. The first phase, which will be available for pre-sales soon, will consist of 107 homes. Aguila will offer new possibilities at Santo Tomas, with beautifully designed homes ranging in price from $125,000 to $300,000, (Including the lot!) For the first of time they are offering a complete lot and home package with 11 different models available. Homeowners will be able to select from innovative home designs that combine comfort and value with the spectacular views of Santo Tomas. Homes range in size from just under 1000 to over 2600 square feet, and will be similar in look and feel to existing homes in Las Dunas. Aguila will offer its residents a variety of amenities. A community pool, picnic areas, barbecue grills, walking paths, HOA, and easy beach access are a few of the features that are planned for this community. Aguila will follow in the Santo Tomas tradition of environmentally sensitive design and construction.

The Estrella Las Dunas Condominium project on the north end of Las Dunas is now under construction at Santo Tomas. In the area of the old beach club, this attractive, secluded low-rise complex is taking shape on the most pristine beaches the Sea of Cortez has to offer.

Featuring 1, 2 and 3 bedroom units, each Estrella Condo includes a private patio or balcony facing the sea. Numerous amenities will be integrated into the condo area. These include a resort-sized pool, heated spa, outdoor barbeque facilities, outdoor bar and an amphitheater / beachclub facility for events. The adjoining Fitness/Recreation Center will offer several fully equipped exercise areas together with specialized areas for spa services. The lounge in the Center will provide a place to play games, have a drink, have a bite to eat or simply relax while enjoying the spectacular views of the Sea of Cortez.

Article by Kent White

SPECIAL DEALS IN SANTO TOMAS

READ COMPLETE ARTICLE

HIRE A LICENSED REALTOR IN MEXICO

Kent White — Thu, 19 Jul 2007 05:12:00 GMT

HIRE A LICENSED REALTOR IN MEXICO

After years of discussion it is now a reality. You can get representation from a licensed real estate professional in Mexico. Mexican officials are watching closely as the state of Sonora works towards total accountability from its real estate professionals. Sonora’s push towards licensing is led by Sonora’s Governor Eduardo Bours Castelo, and overseen by Secretary of Economy of the State of Sonora, Internal Trade Department, Lic. Rodolfo Elias Calles Dingfelder.

About a year ago Mexico’s National Association of Realtors, called AMPI started requiring its members to be certified at the state level. This certification included criminal background checks, (For foreigners this means background checks in their country of origin, as well as Mexico.), fingerprinting, as well as continuing education classes to insure the highest level of trust and security.

Because of AMPI’s quest for accountability from its members, the now international association of realtors, NAR, includes AMPI members as equals. With this accreditation made official in Washington in October of 2006, AMPI members are allowed to call themselves Realtors, which is a protected brand that is not thrown around loosely.

The latest in a long series of events leading towards the actual licensing is a course sponsored by the state that is 109 hours of intense real estate studies. The topics included in this month long crash course were intended to provide actual and current technical and administrative skills to participants allowing them to improve their performance in Real Estate activities. So as, analyzing the legislation of both the federal and state judicial dispositions regarding Real Estate property, as well as talking over issues pertaining to taxation, city development, appraisals, trusts, sales strategies, and ethics in the real estate field. The instructors were all national leaders in their respective professions, and came from all over Mexico. This real estate diplomado course was held at Puerto Peñasco’s university Instituto Tecnologico Superior de Puerto Peñasco.

The first graduating class in Puerto Peñasco, Sonora finished with 26 students in attendance. It was an intense month of long days, but the content was extremely viable information that anyone calling themselves a real estate professional in Mexico should understand. Rocky Point currently has about 200 people practicing as real estate agents.

With licensing a reality, the security of future investments in Mexico will continue to grow exponentially. The resort communities have been discovered by investment pioneers and speculators for a number of years, and every year as the comfort level of ownership becomes more and more understood the number of property owners grows as well. However, for years there have been people without any accountability representing properties that have less than positive status. There are several projects in Rocky Point right now, some with good intentions that will probably have problems succeeding. It is the responsibility of Real Estate professional to educate would be buyers with full and integral disclosure of the securities that are in place to protect them, as well as any underlying facts that may surface. With the credentials available, and now law, any investor should make sure that the person asking for their money can show them a license. It will be one of the responsibilities of Mexico’s National Association of Realtors, AMPI, to oversee and report violations to local and state officials regarding non licensed individuals involved in Real Estate transactions. The actual penalties; Fines, deportations, and other severe consequences will be levied by local authorities, AMPI has been asked to report directly to those officials.

REFERALS MADE EASY

Kent White — Sun, 01 Jul 2007 03:51:00 GMT

There is a tremendous untapped market of people investing in beachfront resort communities, buying condos, retirement homes, land and commercial properties. Today some of your office’s clients find our market on their own as they travel here to vacation. Each year 1.5 million people visit the Puerto Peñasco area. "Sonora expects to see visitation grow to 9.6 million people annually by 2009", As seen in the AZ Daily Star front page business section May 3rd, 2007. With the new infrastructure, entertainment, and better access (international airport, coastal highway & marina) more people will visit here every year. Why wait for your clients to find this piece of paradise through word of mouth and buy here without you getting in on the business? Agents in your office may have clients with these needs today but don’t know they could offer these opportunities to them. We offer a 25% referral fee for real estate agents sending clients. This could be a nice piece of business for you as it is a very unique opportunity in a beach community a short drive for most of your clients.

We have established a website, www.executive-referrals.com, to support you with this referral business. On this website you will find:

Information about Puerto Peñasco

Pictures of the area and information about the city, places to stay, places to eat, things to do, phone numbers for local services, and directions on how to get here.

Access to Realty Executives local listings and our Mexico MLS system

Information about buying in Mexico – You can own property and Yes it is safe

Helpful information that all buyers need to make their decisions

Information on the referral business including forms you can send to your clients.

When clients come to us directly we ask who referred them. This is the center piece of our business model. There is a huge untapped referral business and a key element is how we protect your interests in working with us. We will support you in this referral business every way we can. Your referred clients will be distributed to agents specialized in the clients specific needs.

You will find several examples of letters and forms found on our website that you can customize for your clients as needed. Further support could include office visits for presentations or training, phone calls, updating the web page to tailor information for your agents and clients.

Thank you for taking the time in reviewing this opportunity. If you believe in this opportunity or want to know more please contact us.

What is a Bank Trust or Fideicomiso

Kent White — Fri, 29 Jun 2007 22:05:00 GMT

MEXICAN BANK TRUST OR FIDEICOMISO

The Fideicomiso or Mexican Bank Trust is a mechanism that enables foreign persons or companies to purchase property in Mexico. The trust mechanism was created to allow foreign investors to participate in Mexico's rapidly expanding sectors, while exercising complete and legal control over their investments while complying with Mexico's investment laws.

The trust is a property interest held by a Mexican bank. The sole purpose of the bank is to manage the property for the benefit of the owner of the trust. Real estate investment trusts enable foreign entities to invest in Mexico's coastal and border areas which were once restricted from foreign investment of any kind.

Only Mexican banking institutions authorized and regulated under Mexican laws can serve as trustees. The beneficiary of the trust, the foreigner, retains the use and control of the property held in trust and makes the investment decisions with respect to the property. This can include the decision to transfer such property interest to another foreigner realizing all of the economic benefits that accompany equity ownership in Mexico's attractive coastal properties.

Trusts are established for initial 50 year periods and can be renewed indefinitely for additional 50 year periods. The beneficiary may transfer or assign his beneficial interest to any person and keep the profits from the sale of the property subject to applicable tax laws and expenses for the sale. Property held under a trust can be passed on to future generations and the person to which the bequest is made is not burdened with an inheritance tax.

Fideicomisos are an easy and safe way for you to own property in Mexico. They are government sanctioned and offer strong protection. Potential investors are encouraged to contact us for assistance in setting up your Mexican bank trust

Where to Eat

Kent White — Fri, 29 Jun 2007 06:01:00 GMT

Where to Eat

La Curva Restaurant - Home of some of the best, biggest economical Mexican food combination plates in town, good fish plates. Good service, Great Margaritas, live Mariachis music many nights.

Margaritavilla - Cheap daily food specials, Great burgers, Thai Food, and at night grill your own steaks & chicken out on the patio Moderate

Casa del Capitan - It sits up on the 'head of the whale' Great fish combination plates, shrimp, steaks, drinks, music & the best views in Peñasco! It has a breathtaking view of the sunset and the city!

Costa Brava Restaurant - Class, ocean views, live music, exceptional seafood, good portions

Friendly Dolphin - Exceptional seafood & Mexican dishes, fun outdoor patio upstairs, old Mexico decor & atmosphere. One of the owners often sings & plays guitar for the customers.

Happy Frog - Exceptional seafood, a favorite of many locals, unknown to most tourists

Hacienda Las Fuentes – Fast becoming one of the favorite local restaurants. Great cuisine, with fabulous attention to detail and presentation. Some New Mexico cuisine, with an old Mexico charm

Lighthouse - Great view, very good food and some of the best live jazz, easy listening & dancing music for the 'mature' crowd in Peñasco!

Lilly's Restaurant - Good food, nice views, inside & outside patio seating, good margaritas, a place to 'be seen' & a place to watch the throngs of tourists, locals and vendors on the Malecon ('boardwalk') just down from fish markets! The staff is service oriented

Bryan’s – Sports Bar. All the games all the time on 5 HD TV’S. American style sports bar, plus great food and wide selection of drinks. Serving food until 12 am.

Max’s – Famous for breakfast and lunch. Now serving international cuisine, steaks, pastas and pizzas. Open from 8 am to 10 pm. Plus wireless network computers at your service!.

The Reef – Sandy Beachfront restaurant with classy piano bar upstairs, high end wines, exquisite international cuisine. Known locally as a place to entertain those special clients.

El Catorce - Mexican food restaurant with some of the old favorite American dishes. Great food, wonderful service and atmosphere. Comfortable Mexican atmosphere

History of Mexican Real Estate Law

Kent White — Fri, 29 Jun 2007 05:45:00 GMT

History of Mexican Land Laws

Let me start by giving you a brief history of Mexican real estate laws.

1917: The constitution of 1917 proclaimed that all land in Mexico would either be ejido (communal) or owned by Mexican nationals only. Ejido land was given to every village in Mexico and could not be sold. This law was put into effect for the past problems with the Spanish, French, and Americans, controlling both land and waterways in Mexico.

Perhaps another reason for the restricted zone was that the Mexicans were somewhat concerned about having lost so much territory to the U.S. in the 19th century- about 1/3 of their country: Texas in 1845, and in 1848 through the treaty of Guadalupe Hidalgo the territory that became California, Nevada, Utah, most of Arizona, and parts of New Mexico, Colorado, and Wyoming. The treaty was signed shortly after Americans forces captured Mexico City. The U.S. paid $15,000,000 for all of his land. And in 1854 through the Gadsden Purchase the U.S. acquired the rest of what is now Arizona and New Mexico. It's not surprising that Mexico was a little nervous about allowing foreigners, especially Americans, to acquire any more land.

1973: A constitutional amendment known as the Foreign Investment Law allowed foreigners to purchase real estate anywhere in Mexico, except the restricted zone. The restricted zone consists of areas within 100 km (64 miles) from international borders or within 50 km (32 miles) from the coastline. The problem with this amendment was that most of the foreigners wanted to purchase specifically in the coastal and border areas

1993: Mexico amends the constitution to allow foreigners to purchase real estate within the restricted zone by means of fideicomiso (bank trust).

The first paragraph of Article 27-1 states, "Only Mexicans by birth and Mexican Companies have the right to acquire ownership of lands, waters and their easements, or to obtain concessions for the exploitation of mines or waters". Moreover, the same paragraph states, "The Mexican government may grant the same property rights to foreigners provided they agree before the Ministry of Foreign Affairs to consider themselves as Mexican nationals with regard to said land and waters and not to invoke the protection of their governments in matters relating thereto, under penalty, in case of default to comply with this agreement, of forfeiture of the property they had acquired to the benefit of the nation". This is known as the Calvo Clause, which is constitutionally mandated, and is contained in all bank trust agreements.

1994: The NAFTA trade agreement between the United States, Canada, and Mexico is passed. In this same time period President Bill Clinton gave a multi-billion dollar loan to'" Mexico. Mexico implemented a constitutional amendment, which allows corporations to be 100% foreign-owned. (A corporation may own property in a restricted zone without a fideicomiso.)

This is a great benefit for foreign business owners. However, this is not the answer for everyone. Commercial property carries higher water, electric and phone rates. You also are required to do additional government reporting and tax payments. You cannot own a single-family residence in a corporation. The government has cracked down on purchasing property in a corporation unless it is actually for business use. The trust deed is just as safe and seems to produce fewer problems with the government.

Trusts

Now that you understand your right to purchase property in Mexico through a fideicomiso, most commonly referred to as a bank trust. Let me explain how the bank trust works.

The fideicomiso is set up through a Mexican bank for a period of up to 50 years and can be renewed for 50 years. To acquire the land the purchaser must obtain a permit from the Ministry of Foreign Affairs. The buyer can lease, sell or transfer the property to another family member, and if he dies, his property can be passed to an heir. At the end of the 100 years the property can be sold.

In the trust there are three elements: The trust Settlor (Fideicomitente) which may be a physical or legal Mexican person, who is the owner of the property which is to be placed in trust; the Trustee (Fiduciario) which, by law may be only a credit institution and which holds the raw real estate; and the Beneficiaries (Fideicomisarios) the legal or physical foreign persons who are the beneficiaries of the trust who obtain the use and benefit of the property.

The bank (known as the trustee) holds the trust deed (known as the escritura) for the person or persons purchasing the property (known as the beneficiaries). This property is not part of the bank's assets and cannot be subject to any lien or attachment for any bank obligations. The beneficiary has all ownership rights to the property and may sell, lease, mortgage or pass on to their heirs as desired under law. A bank trust is not a lease.

The Mexican government established the trust agreement as a way of protecting foreigners interested in owning property in Mexico. The reasoning was that by making ownership pass through the trust process, there would be an automatic review of the transaction to ensure it was legal and unencumbered. The bank is required to check ownership, insurance and indebtedness of the property, providing further protection to the foreign owner.

Trusts are renewable at any time by filling out a simple application with the bank. It was never the intent that these properties pass back to the government at the end of the trust period. This is a common misconception and fear of most buyers.

It may help in understanding the Bank Trust to compare it with the Deed of Trust, a type of financing instrument used in the U.S. People who buy homes, paying the full amount upfront, receive their titles right away. However, this rarely happens. Under a deed of trust the buyer of a house has only "equitable title," or an equity interest, with the right to use but only a restricted right to sell, until the loan is paid off, after which the owner receives the actual fee simple title. Until then it is held by a trustee, usually a bank or title company. In Mexico the Bank Trust is also held by a trustee, but the buyer never receives the actual title. Realistically many homeowners in the U.S. never receive title to their properties either, because they sell or refinance their homes before the30-year term of their loan is complete:

The following chart will help show the comparisons between U.S. and Mexico:

U.S.

Purchase Contract

Contract & Earnest money held

by Escrow

Escrow Instructions

Deed of Trust or Fee Simple

Title

Mexico

Transfer of Trust Rights

Down Payment made to seller

Documents held by Notario

Bank Trust (for all foreigners in the restricted zone) or Fee Simple Title (for Mexicans).

"Punta Banda"

Some 400 American families were evicted from homes in the state of Baja Norte, south of San Diego, because there titles were in dispute. The press gave negative publicity to Mexico, but the truth is the buyers simply did not due diligence when acquiring this land.

Watch out for land collectives known as ejidos. It's the same as buying on an Indian reservation. There's no deed. That is what happened to the Americans in Baja Norte. The evictions of American residents at Punta Banda should clearly signal the fact that in any country, including the United States, title discrepancies exist, lawsuits get filed, and in some rare cases, buyers lose their property. "Catastrophic failure of title" doesn't happen often, but in the case of Punta Banda, it clearly has occurred. In order for us as Americans to be an educated and prudent buying public, it is extremely important that we understand the issues concerning the Punta Banda case and owning residential real estate in Mexico from a general perspective. American's should not fear buying property in Mexico. Owning a house a condo, or buying a residential lot on the beach can be a secure, legally entitled, publicly recorded, and hopefully profitable investment. Their are hundreds of thousands of Americans who have obtained property in Mexico by following the rules and have had no problems, My intention for bringing up this most unfortunate situation with "Punta Banda" is to draw your attention to the importance of following the law while purchasing property in Mexico, or anywhere else for that matter. By reading the following material you should have a good understanding of the appropriate steps needed to have a successful real estate property transaction in Mexico.

Purchasing Procedure

One of the first things you should request when purchasing property in Mexico is a copy of the lien certificate (certificado de libertad de gravamen) on the property. It should indicate the owner of record, surface area and classification of property type, the legal description, and whether there are any liens or encumbrances filed on record against the property. The buyer can also request a certificate of no tax liability (certificado de no aduedo) from the local taxing authority.

Legal Steps To Purchase Real Estate In Mexico:

1. Offer and acceptance and/or promissory agreement

In accordance with Mexican Law, a letter of intent fulfills the requirements for it to be considered to be a valid contract, with the condition that there has been mutual consent on the part of both the seller to transfer a specific property and the buyer to acquire it.

2. Title Search and Conditions of the Property

This will ensure that none of the information of the Public Registry of Property and Commerce regarding the property is overlooked.

3. Requirements for closing and formal execution of a standard real estate Transaction in Mexico

A. Certificate of No-Encumbrances. This certificate will enable the Notary to assess that the property does not have any lien or encumbrance, or any claim pending over it, and thus can be transferred with a clean title. It is obtained directly at the Offices of the Public Registry of Property and Commerce and basically it must contain at least the following information: I) the number of years of documented history made on the property; II) the surface area of the property in accordance with the records; III) the metes and bounds of the property; IV) the name of the owner; V)classification of the property (urban or rural); VI) a legal description of the property (such as if it is owned in a trust or by several owners); VII) the name and signature of the registar and VIII) the official seal of the Public Registry of Property and Commerce.

B. Certificate of No- Tax Liability: This certificate will enable the Notary Public to assess that the property tax has been paid prior to the transfer of the property.

C. Property Appraisal and Site Survey: In accordance with the Real Estate Law ("Ley de Catastro"), it is mandatory to carry out a site survey on the property and do an official appraisal. The appraisal must be done estimating the commercial value of the property, ,; considering its surroundings, a market survey and zoning regulations.~~

4. Notary Public and Public Registry of Property and Commerce

The function of the Notary Public is to act as an extension of a Judge or the Government. His duty is to ensure that a real estate transaction is formally executed in compliance with all legal requirements. Upon the execution of the transaction, the deed of title must be recorded at the Public Registry of Property and Commerce of the domicile in which the real estate, subject matter of the transaction, is located.

A Mexican "notario" is an attorney who, after passing rigorous examinations, is commissioned by the government as a public notary. A notario holds high office for life, unless he or she is removed for cause. The notario fulfills a public function delegated by the government. Although licensed as an attorney, the notario is not in a position to provide either of the parties with legal advice. The notario's responsibilities include collecting and reviewing the sales contract, property tax and water payment receipts; ordering a bank appraisal: freezing the property's file at the local public registry (no documents may be recorded in a property's file during three consecutive thirty-day periods); reviewing the property's file to verify the legal ownership and search for liens, encumbrances or anything that could affect the title (as the majority of public registries are not automated, this procedure can take from 60 to 90 days); requesting the public registry to issue a "Certificado de Libertad de Graveneres" (Certificate of Freedom from Liens and Encumbrances); and performing the closing at this office where the notario handles the transfer of the deed, tax withholding on the underlying real estate transaction, and the recording of the documents at the public registry.

The Most Common Choices For Purchasing Real Estate In Mexico:

1. General Purchase Sale Agreement

A purchase sale agreement occurs when one of the contracting parties obligates itself to transfer the ownership of property and the other agrees to pay a certain price in consideration of the property rights. The contract is perfected and binding between the parties as soon as the property and its price are agreed upon, even when the property has not yet materially been delivered and the price paid. All such contracts must meet specific requirements in accordance with Mexican law in order to exist and be valid.

There are two types of elements to the contract:

A. Essential Elements:

The essential elements of any purchase sale agreement: consent which is granted by the seller's agreement to transfer the real estate to the buyer, and in turn, the buyer's consent to pay a certain price; and object which is the purpose of the title transfer of the real estate on the one hand, and the payment of a certain price as consideration of the transfer.

B. Validity Elements:

The validity elements are: legal capacity that refers to the legal rights of the parties to enter into the contract; and legal form, which are the formalities with which a transfer complies in order to be perfected. For example, real estate transactions must be in writing, and in order for such to be binding before third parties, they must be recorded at the Public Registry of Property and Commerce.

Basically, the fundamental obligations of the seller in a purchase sale agreement, are: a) to deliver the property being sold to the buyer; b) to guarantee the quality of the property; and c) to guarantee the title (with cure in case of eviction).

On the other hand, the buyer's principal obligation is to comply with the payment of the price in the terms place, and form agreed in the agreement.

2. Installment Sales Agreements withholding transfer of title:

In this kind of agreement, the seller reserves title of the property until full payment of the sale price is made, but the buyer may use and enjoy the real estate until full payment is made. Usually, this kind of agreement includes installment payments. There are some advantages in using this kind of agreement: First, the agreement can be recorded at the Public Registry of Property and Commerce as being enforceable and binding before third parties. Second, the seller is not able to sell the property while the purchaser is in compliance with the sales agreement, usually meaning that he is current in his payment obligations to the seller. Finally, the obligations of the parties are subject to what in Mexican Law is commonly known as "Condicion Suspensiva" (suspensive condition), which conditions the agreement to full payment of the price to the seller.

3. Irrevocable Real Estate Trust Agreement:

This is better known as a "fideicomiso" and is the most common instrument for the acquisition of real estate property within the restricted zone, usually for residential purposes. The seller, "trustor", will transfer property to a Mexican bank institution, the "trustee", by means of an irrevocable trust agreement. The trustee will hold the property on behalf of a designated beneficiary (usually the buyer). The bank is obligated to administer the rea) estate only for the benefit of the beneficiary, who holds the right of use and enjoyment of the real estate, as an owner. The bank holds title to the property btitthe beneficiary is entitled to use it and even sell the property held in trust to any eligible buyer, providing that he instructs the bank to do so.

Contract Legalities

A legal real estate contract has 5 necessary parts:

Competent parties- This is usually defined as "being of legal age and sound mind." In Mexico another factor comes into play-language. A person who doesn't understand Spanish, the legal language of the country, no matter how mature or intelligent, is not competent in any practical sense. Therefore, the contract must be translated into English.
Lawful Objective- This means that contracts can be voided if it is discovered that the intent has been to set up a drug business, a house of prostitution, or some other illegal operation. If one doesn't own a property, it can't be lawful to try to sell it.
Offer and Acceptance- This means that a contract must be signed by both parties. It must also have a date when it takes effect and must specify the place where it is signed.
Legal Description- Legal descriptions can take several different forms-metes and bounds, lot and block, government survey-but the key is that the property must be readily identifiable.
Consideration- Consideration accompanies a contract as an evidence of good faith. It usually means money, although it can take the form of a promissory note, another piece of property, an item of value like a car or boat, or even such an intangible as "love and affection."

Title Insurance

Purchasers of Mexican real property can now receive Owner's Policies of Title Insurance that can be issued on both sides of the border from various companies to both U.S. and Mexican buyers. Most title insurance policies today are U.S. contracts of. indemnity guaranteeing ownership rights as vested in a fideicomiso (bank trust) for residential property acquired by foreign buyers in the prohibited zone, or for properties held in a Mexican corporation for non-residential purposes {i.e. industrial and commercial). Mexico is not unlike the U.S. in that there is a definitive legal framework for ownership of land by foreigners known as the New Foreign Investment Law (Dec. 28, 1993) and as mandated under Article 27 of the Mexican Constitution. In addition, there is formality and compliance in the development of real property. Regulatory statutes and procedures are mandated on a state-by-state basis and require a series of official approvals, permits, and authorizations, coupled with public disclosure and written notification by the governing public agency.

American title Insurance is available for Mexican real estate whether acquired directly or through a trust. The cost of the insurance depends on whether the property you are purchasing is covered by a master title commitment. The best way to protect yourself is to get title insurance. Most Mexican companies don't sell it, but Houston based Stewart title Guaranty, Lawyer's Title, and Fidelity National Financial does. The insurance runs about $4 to $7 for every $1,000 of property value, versus $3 to $4 in most of the U.S. In addition to title insurance, property insurance is also available in Mexico and the rates are relatively low.

Taxes

Property taxes are very low in Mexico as a whole. The property tax, known as a predial is .1 % of the assessed value. Taxes are paid annually, with the assessed value determined at the time of sale. If you purchase a property with an assessed value of $l00,000 US dollars your annual tax rate would be $100.00US dollars. The reason taxes are so low is due to the fact that they have never been a source of revenue for the Mexican government

Real Estate Acquisition Tax (transfer tax): Individuals or companies purchasing real estate, consisting of land, or land and its improvements in Mexico, are subject to the payment of a real estate acquisition tax calculated at the rate of 2% of the value of the property (the rate may vary from state to state from 2% to 3.3%). All purchasers of real property must pay this tax whether the acquisition is carried out through a purchase and sale agreement, donation, trust, assignment, mergers of companies, split-off, or payment in kind.

Mexican real estate is subject to a 20% capital gains tax on the gross proceeds from the sales without any deduction. There is another option; net basis taxation up to 35% (depends on the state and the interpretation of the notary). Under this tax plan, gain is calculated by deducting from the gross proceeds (1) the original cost of acquisition, (2) the cost of improvements, (3) notarial expenses and other costs of sale, including appraisal costs, and (4) commissions. The original cost is separated between land cost and cost of buildings, with at least 20% allocated to land. The cost of buildings and any other improvements is then decreased at 3% per year between the date of acquisition and date of sale, but the cost is not decreased below 20% of the original amount. The cost of the land is increased based on changes in the National Consumer Price Index.

Formula for capital gains tax: A V2(appraised value 2) -A Vl(appraised value 1)- Improvements - Cost of the Sale=Taxable Amount x 28%=Tax Due

Your FM2 or FM3 can help you to avoid capital gains taxes when selling your property. If someone proves they were living on their property for two years in Mexico, they can avoid paying any type of capital gains.

Individuals in the restricted zone, who are residents of Mexico (have an FM3), and who rent their rights in trust property (fideicomisos) must make provisional payments on their Impuesto Sobre la Renta (Tax on Rents)for income generated from cash deposits, credits, exchanges coming from rents or sub-rentals. The calculation will be based on one of two methods; one option is to pay 1 % (on average, based on state) of the gross amount received during a three-month period, or you can opt to pay around 35% (on average, based on state) of your net profit.

In order for any authorized expense to be deductible, the taxpayer must obtain an official invoice, which is known as a FACTURA. This receipt must be printed on the press of a government-authorized printer and will contain the RFC number (taxpayer ID number) of the individual or company issuing the receipt.

Authorized items for deductions are the following:

1. Property taxes, as well as any contributions or local taxes for improvements, planning or public works expenditures.

2. Maintenance costs that are not related to improvements or additions; water payment when not paid by the tenant who occupies the property

3. Interest paid for loans obtained for the purchase, construction, or improvements of the property

4. Employees directly employed at the rental property. Salaries, commissions

and /or fees are deductible, as well as taxes and benefits paid on those salaries.

5. Insurance premiums on the properties

6. Investment in construction, including additions and improvements (these expenses are amortized at the rate of 5% per year for construction and 10% for installation expenses or improvements.

Mexican residents must file a declaration with authorities by the 17th of each month. An annual declaration is due no later than April 1st the following year and the difference between provisional payments made and total tax due, based upon global Mexican income, and is due with the annual return.

Mexico has signed a number of treaties to avoid double taxation with other countries and their benefit can be applicable depending on the type of transaction. Taxes that are paid on Mexican income are generally deductions on U.S. and Canadian income. It is wise, however, for the foreign taxpayer to check with his or her personal accountant to determine how to declare these foreign tax payments.

Financing

The lack of mortgage financing has caused developers to realize that a fideicomiso de guarantia (guaranty trust) works best for all parties. This mechanism, similar to the U.S. deed of trust process, alJows for the conveyance of the property in Mexico with a first and second beneficiary established in the bank trust when the seller offers financing. In other words, a legal transfer of real estate that can be recorded in the public registry of property and is fully insurable from a title insurance policy standpoint. In this manner, both the seller and buyer are protected in this conveyance methodology. In the past, sellers would only transfer the property when they were paid off.

Immigration

After you have purchased your home in Mexico and decide you don't want to leave. You must apply for your immigration papers, or FM3. The FM3 grants nonimmigrant status and is applied for through the local immigration office.

Interval ownership

Kent White — Fri, 29 Jun 2007 05:38:00 GMT

INTERVAL OWNERSHIP

Have you ever considered purchasing that dream resort home, only to get discouraged with the realization that the cost of the “Dream” is hard to justify with your pending budget? Well, if your vacation schedule allows you specific times of freedom, why not simply purchase specific times as well, with interval ownership.

Interval Ownership is a simple, practical concept, which offers the opportunity to own a fully furnished home at a fraction of the cost of purchasing an entire second home. Each purchaser as a shareholder owns an exclusive interest in a home and is entitled to occupy the unit each year for the time interval purchased. Most often ownership is divided into quarter or eighth shares. Quarter share ownership for example allows you one week every month, eighth share one week every two months, twelfth share, four weeks a year. The concept of interval ownership discussed here reflects actual equitable ownership and not simply allotments of time, as found with “Time shares” sales. Owners may rent, sell or exchange their weeks just like any other real estate, and unlike most time shares these rights last forever. The investment also grows with appreciation just like other real estate investments

A one-time purchase guarantees vacations forever at today's prices, with no repair or maintenance problems or seasonal openings and closings. Your vacation begins the moment you arrive, and all you are required to bring is your toothbrush. Most units actually have individually allocated lock-out closets for each owner. As vacation costs rise, your one time investment in vacation ownership will prove a remarkable value.

Through an annual operations fee, owners share the maintenance cost to ensure the quality of the property stays the same. This fee covers the property management, upkeep of units, refurbishing, utilities and maintenance. This is a small annual expense when you consider that on your vacation you will enjoy the luxuries of home such as a Plasma TVs, DVD’s exquisite furnishings, and spacious accommodations. Units are typically refurbished yearly; furnishings and equipment are replaced as required.

Many families now own second homes. However, some decide that full ownership of a second home is not practical due to availability of disposable income, problems associated with caring for a second home from long-distance, or simply from the short periods that families actually use the second home. For these families "Interval Ownership" offers the ideal alternative.

Brad Toland explained, “We always wanted to own on the beach in Rocky Point, where we enjoy entertaining both clients and family. We looked at purchasing a home in Las Conchas but the cost was a bit prohibitive. Equity sharing, in our case an eighth share, was a perfect solution. We have our home six weeks per year and also as importantly, share in the maintenance cost as well.”

In Puerto Peñasco this concept is growing, as more and more investors are seeing the benefits of sharing equity in high end real estate purchases. Some homes are being sold in equitable increments with simple contracts explaining each investor’s ownership rights.

The more secure investments of this kind actually allow investors to own shares of stock in L.L.C’s, or Mexican corporations that hold title to the property. One project is actually discussing individual trusts to its quarter share holders, a concept never before done in Mexico. Rodger Clifton, a respected leader in interval ownership projects here in Rocky Point, expressed his concerns towards the safety of investors who purchase in the unregulated interval ownership projects. Some of the projects here have such positively thought out CC&R’s that just about every situation is covered for investment safety and growth. It is very important to discuss your situation with an agent or agency that specializes in these investments. In Rocky Point there is now an association of real estate professionals called AMPI that can steer you in the right direction. AMPI, the most widely accepted real estate organization in all of Latin America has made phenomenal progress here in Puerto Peñasco. This internationally respected association of real estate professionals officially became a reality last March and has already become one of the largest associations of any kind ever in Rocky Point with over 100 members. Our local chapter has representation from all of the major real estate companies that operate in and around Puerto Peñasco. Only credible realtors with continual AMPI approved educational courses can maintain membership of this organization. It is this proactive entity that will take the real estate industry into the future.

Once you have taken a look at what your normal vacation pattern is, it’s easy to determine whether interval ownership is right for you, or which package you will want to own. Next consider which one of the projects will best accommodate your needs. Right now there are hundreds of opportunities available right here in Puerto Peñasco to own your share of paradise, and you can feel confident that your investment will grow with prime real estate in Mexico. Start enjoying endless vacations, with priceless memories and moments shared by family and friends forever.

Kent White

Realty Executives Rocky Point

AMPI Section 51

Here's How To Build Your Case for a Mexican Homestead Tax Exemption

Kent White — Fri, 29 Jun 2007 03:33:00 GMT

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Here’s How to Build Your Case for a Mexican Homestead Tax Exemption!

By Raoul Rodríguez-Walters, CFP ®

“How can I obtain a capital gains, or homestead, tax exemption on the sale of my Mexican real estate?” is one of the most frequently asked questions by expatriate residents in Mexico when they contemplate selling their homes.

Residents may not be aware that the requirement that you live in your Mexican home for two years before it can be sold as a qualifying property under the homestead exemption was eliminated by tax reform in 2002. And, different interpretations by Notarios (the attorneys responsible for preparing and recording deeds of title and for calculating taxes on real estate transactions) may have sparked the current concern in the expatriate community about the so-called “capital gains” tax. A new awareness and sensitivity to how it’s applied, especially to foreign sellers, seems to have created the confusion.

Answers differ depending on where in Mexico you are selling property. For instance, in Los Cabos, foreigners are almost never granted the homestead tax exemption by Notarios. In Mexico City , homestead exemptions are almost always granted to foreigners. And, in San Miguel, the homestead exemptions are granted on a case-by case basis to the extent that the sellers comply with certain legal requirements.

What it boils down to is the tax status of the seller, not his or her residency status.

What Notarios Decide is Critical

Under Mexican Income Tax Law, Notarios are jointly liable with the seller for all taxes due on the sale of real property in Mexico . If Hacienda (the equivalent to the Treasury Department in the US ) decides the Notario did not calculate these taxes correctly, the Notario may be required by the tax authorities to make up the difference. Obviously, when they are doing dozens of transactions each year, very possibly involving millions of U.S. dollars, Notarios have to be very careful and will generally take a conservative approach.

The homestead tax exemption is still available to resident taxpayers in Mexico , and it is the Notario who decides who meets the requirements of tax residence. To make this determination, Notarios can base their decision on two different sets of laws: Mexican tax laws and Mexican immigration laws.

Who is a “Tax Resident”?

How foreign nationals who reside in Mexico are taxed in this country depends, first of all, on the tax treaties Mexico has signed with other countries. Often, tax treaties override any national legislation. In the case of U.S. citizens, therefore, one must review the Mexico - U.S. Tax Treaty, as amended in November 2002.

Article 4 of this treaty states that a “tax resident means any person who, under the laws of that state, is liable for tax therein by reason of his domicile, place of incorporation, or any other criterion of similar nature.” This article goes on to state that if the taxpayer is a resident of both states he or she will be considered a resident of the country where he or she has a permanent home.

A tax resident in Mexico is distinctly different from someone who is a legal resident, although often a legal resident generally is also a tax resident.

Article 9 of the Fiscal Code of Mexico , amended for 2004, establishes that tax residents are those “who have established an abode in Mexico ”.

If they have two homes available to them, one in Mexico and another one abroad, they will considered a tax resident of the country where the taxpayer has his or her center of vital interests.

Mexico will consider that that the center of vital interests is Mexico if over 50% of the taxpayer’s income is derived from sources inside of Mexico

Expatriate tax residents have all the obligations and benefits of all other tax residents in the country, including the homestead exemption contained in Article 109 of Mexican Income Tax Law, which identifies that the transfer of certain properties are exempt from taxes, including: “Those resulting from the transfer of…the taxpayer’s home….”

Where the current confusion arises is that some Notarios are of the opinion that the homestead exclusion is available only to legal permanent residents, and they make their tax liability determination on the basis of immigration law, not tax law.

What Constitutes “Legal Residency” in Mexico ?

Legal permanent residence is granted pursuant to Article 48 of the General Population Law and is evidenced by possession of an FM-2 visa. Temporary visitors on an FM-3 visa pursuant to Article 42, or on a tourist visa, are not considered permanent legal residents. In fact, the FM-3 document specifically states that the holder does not automatically acquire residency by merely holding the visa.

Building a Case for the Exemption

Your Notario will carefully examine a “fact pattern” before deciding if you qualify for a homestead tax exemption when you sell your Mexican residence. By complying with as many of the points below, you can greatly increase your chance of obtaining a homestead exemption on your Mexican property:

AMPI Property Listings

Kent White — Tue, 16 Jan 2007 21:08:00 GMT

Note that this information is outdated.

Another site is the AMPI (MLS) website, below, where you will find all listings for Real Estate companies that have joined AMPI Stands for Mexican Association of Professionals in Real Estate, AMPI is a National Association with 53 Chapters throughout Mex. Click the "Property Search" tab on the green line, choose the location by adding the areas in the left box to the box on the right (Sandy Beach, Playa Encanto, Playa La Jolla, and in town are some of the more popular areas). then choose the range and the type and search. read more...

Puerto Penasco, Sonora Mexico

Kent White — Tue, 16 Jan 2007 18:40:00 GMT

What do you like best about Puerto Penasco (Rocky Point)?

For me, it is the great year round weather, protected from major storms and earth quakes, being on the ocean and the laid back beach life style.