Strong Dollar - Great Time To Build In Baja

The Strength of the DOLLAR makes this the BEST time to Build that Dream Home in Mexico!
BY: CHERYL MILLER

For over the years between 2003 and most of 2008, the US Dollar and the Mexican Peso enjoyed a stable exchange rate between 10.0 and 11.0 pesos per dollar. Sometime in December 2008, the exchange rate, based on several economic factors, dramatically changed with the dollar slipping to 9.0 pesos per dollar, only to rise to a record 19.13 pesos per dollar in a very short period in 2016. The exchange rate is still high compared to the dollar, around 17.5:1.  This means that your dollar will currently buy approximately 35-40% more than 2014.

Although, construction starts in 2016 are now on the rise, one effect of the economic recession in the US which began to affect our market since the first quarter of 2008, the Swine Flu, and the pursuant slow down or stoppage of large construction projects in the hospitality and tract-home industries, the hurricane, is that it has reversed the once ZERO (actually, it was a negative back in 2007) unemployment rate, enjoyed for so long here in Los Cabos and Baja California Sur, to thousands of unemployed, or under employed workers. Many have returned to their families on the mainland, but the majority have made Los Cabos their permanent homes and are now part of a new competitive market place within the construction industry. It´s the old supply and demand theory! You are now in the driver´s seat. Negotiation for labor is still possible. Bidding is now in your favor, at least for now!

Material supply houses, contractors, architects and engineers are also part of the equation for potential bargains on materials and their services. With many lots now being price adjusted downward, it is a homebuilder´s market NOW!

As of 2016, the new starts of condominium projects and hotels potentially marks the beginning of the close of this window, so don’t wait too long.

Land prices are at an all-time low, as well.

Want to build your dream home in paradise? Now is the time!

By Cheryl Miller, Broker of Baja Realty and Investment,  Architect,  624-122-2690, info@forsaleinbaja.com, www.forsaleinbaja.com.