NEWS - Live in Los Cabos Real Estate & Development

Oh, Summer is here!

Jeremiah Blackwell — Tue, 20 May 2008 00:57:00 GMT

For most of North America... it is Spring, but I tell you... Summer has started in Cabo. Things you know the season has changed: You don't need a blanket at night anymore. The AC units are going full force in every store you go into. The surf starts...(read more)

PRICE REDUCED: Lot / Land For Sale in Gringo Hill

Jeremiah Blackwell — Mon, 17 Mar 2008 15:27:00 GMT

More than 1/3 acre!

• lot / land - $215,000 - Ocean View Lot

Gringo Hill, San Jose del Cabo - Great Ocean View lot in San Jose del Cabo Corridor in the highly sought after Gringo Hill neighborhood of Costa Azul. Right next door to Querencia this Costa Azul hills lot is walking distance to Zipper’s and The Rock, some of the best surfing beaches in Los Cabos. The slope of this lot affords fabulous views while at the same time is gentle enough to allow for easy access and building. It is ready for your dream home.

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Cabo Vacation Reservation

Jeremiah Blackwell — Sat, 02 Feb 2008 03:20:00 GMT

It is not hard to imagine the tranquility of our beautiful blue waters and white sand beaches, early morning sunrises and lazy afternoons sipping margaritas. Life is short, why settle for anything less than the absolute best. Los Cabos is your destination....(read more)

Mexican Housing Booms Despite US Crisis

Jeremiah Blackwell — Fri, 01 Feb 2008 23:30:00 GMT

By THERESA BRADLEY, Associated Press Writers – Jan 20, 2008

MEXICO CITY (AP) — In her bustling corner real estate brokerage, Ana Laura Pulido is doing her best business in years, enjoying a sort of Mexican immunity from the U.S. housing crash.

"It's a time of hope," said Pulido, who has sold hundreds of homes to middle-income families since 1992. "The buyer today is more aware. People buy with more ease, they can plan long-term."

Long thrashed by swings in the U.S. economy, Mexico now boasts a thriving housing sector whose record growth leads Latin America — a sign of increased economic stability and an outlet for investors looking to escape the U.S. downturn.

Giants including the California Public Employees Retirement System, the largest U.S. public pension fund, are already bankrolling projects in Mexico, where they see "more bang for the buck," said Clark McKinley, spokesman for CalPERS, which has invested more than $300 million in Mexican real estate funds.

The trend could even slow emigration from Mexico, by generating millions in jobs and personal savings as a fresh supply of loans gives many their first chance to own a house.

President Felipe Calderon has set a national goal of a million new mortgages a year by 2010. On Monday, he unveils a set of measures to ensure growth continues, with plans to boost Mexico's small resale market and combat the urban sprawl that has begun to carpet valleys with hundreds of thousands of matchbox rowhomes.

Behind the boom are six years of economic growth and stability, and a national shortage of 6 million dwellings. While interest rates are falling, just 6 percent of Mexico's 25.7 million homes are financed with mortgages — compared to about 67 percent in the U.S. Most Mexicans still inherit their homes, buy them with cash, or build them by hand.

That pent-up mortgage demand in a nation of 108 million means lenders can be choosy, enforcing strict standards that held delinquency rates below 4 percent in third quarter-2007, compared to 5.6 percent in the U.S.

"Mexico is in the early stages of expansion," said Juan P. De Mollein, managing director for Latin American structured finance at Standard & Poor's. "There are still plenty of points for evolution because there's still plenty of demand."

In the U.S., lenders looking to expand their portfolios granted risky mortgages to borrowers with weak credit, but in Mexico, that "subprime" category doesn't exist, because lenders don't need it to grow. Also, few Mexicans flip homes or refinance mortgages, keeping the market more stable.

"Mexico doesn't have a credit issue. We can still choose our borrowers because demand is so great," said Mark Zaltzman, chief financial officer at Su Casita, one of Mexico's largest mortgage lenders.

A recession north of the border could choke U.S. investment in Mexico, curbing job creation, discouraging new homebuyers and stalling housing growth.

But that won't likely lead to mass layoffs and defaults, said Rafael Amiel, managing director for Latin America at the financial consultancy Global Insight. Mexico simply has too much room to grow, and expanding local markets have insulated it somewhat from U.S. downturns.

Housing demand could swell more as migrants are pushed home by the souring U.S. economy and crackdown on illegal immigration — generating four new jobs for every home raised, said Carlos Gutierrez, Mexico's housing policy director.

All this represents a major change from 1994, when Mexico devalued the peso, sending inflation and interest rates soaring, forcing homeowners into default and pushing banks to the brink of collapse. Credit was so tight that most Mexicans paid cash upfront or constructed their own homes, often adding one room at a time.

Since then, Mexico has seen a housing recovery built on a mix of government initiatives, private investment and a winning gamble by a new group of entrepreneurs who took a local approach to mortgage lending, using knowledge of family and neighborhood connections to make sure loans got paid.

Rather than build public housing, the government restructured mortgage-lending laws, setting stricter credit guidelines, standardizing appraisals and urging lenders to raise cash on financial markets. It also overhauled Infonavit, a public agency that grants more than half Mexico's mortgages, funded by a 5 percent payroll tax. Some 20,000 jobs were outsourced as the agency more than doubled new loans to 458,700 in 2007, director Victor Borras said.

And when commercial banks ran for the border, a new kind of lender stepped in, known as "sofoles," for the Spanish acronym for "limited financial association."

Taking advantage of Mexico's tight family ties and government credits, these nonbank mortgage lenders set up neighborhood offices, requiring relatives to co-sign loans and collecting late payments door-to-door, proving profits could be made.

Banks have since returned, and blossoming competition drove average 15-year mortgage rates to 12.5 percent in November — a deal in Mexico, where rates topped 65 percent in 1995. Construction is booming too, as just 30 percent of new homes were self-built by their owners last year, down from 50 percent in 2004, Gutierrez said.

While big banks target higher-income borrowers, sofoles are pioneering mortgages for street vendors and taxi drivers, who work in the huge informal economy without documented salary or credit histories. Sofoles study spending habits to establish their income, offering trial payment periods to prove borrowers can afford payments on entry-level homes that range from $17,000 to $37,000.

Another huge potential market is the estimated 11 million Mexicans in the U.S., who can now buy "cross-border" mortgages to pay off homes in Mexico, increasing their control over the earnings they send relatives and cutting the time they need to work in the U.S. to build a future back home.

Even as home lending soars, overall debt remains low, making a Mexican credit bubble unlikely. Major mortgage insurers, including U.S.-based AIG United Guaranty and Genworth Financial, now back Mexican loans, slashing risk and making it easier for lenders to bundle and sell debt to investors as mortgage-backed securities — raising capital to grant yet more loans.

Nearly $5.8 billion of these securities have been sold since 2003, offering investors an alternative to tumbling U.S. markets and giving Mexico's nascent pension funds, which have relied on lower-yielding government bonds, a place to store assets long-term.

Mexico's housing sector is still full of risks, including land ownership disputes, infrastructure delays and limited access to water. The emphasis on private building has concentrated developments in wealthier states, while masses of poorer people still live on dirt floors.

Even so, millions of first-time homebuyers now have an asset to leave their children, or to use as collateral to finance future spending, fueling growth.

"I always had in my head that the only thing you can give your kids as inheritance is an education and a house," said Antonia Correa. The 37-year-old receptionist paid $7,200 down on a three-bedroom stucco townhouse in a sprawling new development in Cuautitlan, outside Mexico City.

"You could be short on things," she said. "But a roof is the best. It's your world, your home."

Single Story For Rent/Lease in Mar Y Sol

Jeremiah Blackwell — Fri, 25 Jan 2008 22:28:00 GMT

Across from the Beach, Stellar View

• 1,200 sq. ft., 2 bath, 2 bdrm single story - $99 USD Daily - Most Affordable Ocean View

Mar Y Sol, San Jose del Cabo - Phenomenal 180 degree view from Punta Palmilla to the East Cape. 2 bed, 2 bath very nice corner unit. Beautifully remodeled fully equipped kitchen with granite counters. Flat screen TV's in each room. Fully furnished with new furniture throughout.

Enjoy your Cabo vacations basking in the view of the Sea of Cortez, that others pay millions for.

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Single Story For Rent/Lease in Andalaya

Jeremiah Blackwell — Mon, 01 Oct 2007 06:00:00 GMT

Cabo Retreat Condo

• 1 bath, 1 bdrm single story - $195 USD Daily

Andalaya, Pedregal - Nestled in the private community of Pedregal, the wonderful Condo Obelisco awaits you. Conveniently located within walking distance to the center of town - you will be close to everything that Cabo San Lucas has to offer.

Tastefully decorated and containing all the amenities you will need to make your stay a relaxing and enjoyable one, this condo is truly special. Newly furnished and painted, the condo features an oversized patio off of the living room which overlooks our beautiful pool and has an incredible view of the water and harbor - especially nice when cruise ships are in! Sit outside and relax with a margarita or simply lay back and soak in some Cabo sun!

Full dining room and kitchen
New refrigerator, microwave and stove
Stackable washer and dryer
TV, Stereo, DVD and CD Player

The condo complex is full of lush landscapes and features a very well maintained pool area that has chaise lounges provided along with a palapa bar to retreat into the shade. BBQ facilities are also located at the pool area.

The basic rates range from a standard rate of $175 a night to $250 a night for Holiday rates. Holidays include Thanksgiving, Christmas, New Years, Memorial Day, Fourth of July and Labor Day.

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Single Story For Rent/Lease in Mira Vista

Jeremiah Blackwell — Sat, 01 Jan 2005 06:00:00 GMT

Right in front of Zippers!

• 1 bath, 1 bdrm single story "Beachfront Bungalow" - $135 USD Daily

Mira Vista, San Jose del Cabo - Beachfront condo right in front of Zippers surf spot. You can't stay in a better condo complext for a surf vacation. Only steps from your last wave.

This condo sits in a lush tropical garden just steps from the Sea of Cortez. The pool is just a few yards from the beach and surf. Restaurants are nearby and you have easy access to all!

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