What's new in Real Estate?

BY: CYNDI WILLIAMS

Might be time to take another look at the peso loan. We visited a couple of our local banks this week to check out what they are offering for financing options and we must say they surprised us.  Although the peso loan has been available for years to both Nationals and Gringos the terms were a bit unrealistic, making bank loans not so attractive.

Well again, the times they are a changing.  There are now 20 year fully amortized loans starting at around 8% interest with no pre-pay penalties.  No longer are the peso loans negative amortization like days of past.  Down payments start at 10% and work up to 20% based on the loan amount.  In some cases if you strike up a good enough deal, (appraisal is higher than purchase price), they work with zero percent down.  Buyers are responsible for normal closing costs.

Better yet, these loans are backed with all kinds of insurance, life insurance, unemployment insurance, and work interruption insurance.  If anything happens to interrupt your payments the insurance kicks in and if you kick the bucket the property is free and clear for your heirs.

 Gringos need to be living in Mexico for a minimum of one year and need three months bank statements, and the more you have stashed in your account the higher the loan amount you qualify for.  Good credit is important and can be established by being a responsible credit card holder. 

Here's the deal if you are considering a bank peso loan:  Go to the bank and apply for a credit card or two.  Open an account in pesos and dollars.  Use your credit card for three to six months, paying on time.  Keep as high a balance in your accounts as you can and in six months go buy a house.  Warning:  Funds must be earned in Mexico so looks like you have to live and work here. 

Puerto Los Cabos Village moving right along. The long struggling condominium project located at the main intersection of Cabo (across from the soccer fields) has finally gained some ground and it looks like it is going to make it.

 Phase 1 is completely sold out and Phase 2 is kicking off its new sales program under the direction of the Cabo Gold team.

 The project has limped along for years having the misfortune of being released during the worst of the economic crisis of 2008.  The developer has shown amazing strength in weathering one of our worst financial storms.  Puerto Los Cabos Village offers large two  and three bedroom units beautifully appointed with the highest quality finishes. 

With prices starting in the low to mid $200,000s there is no better bang for the buck than this development.  Stop by their on site sales office and take a look for yourself.  Tell them the Gringo Gazette made you do it.

Magdalena Bay Not A Secret Anymore! Hat's off to you, Ed Eudis!

 After years and years of hard work you finally made it happen.  The first new development in Magdalena Bay is now ready for market.  Where's Mag Bay?  Up north a bit we say.  Known as one of the migrating whales’ favorite playgrounds.  Featured in many National Geographic and Nature Channel bits and now home to the beachfront development known as Magdalena Secret.  These are totally off the grid, environmentally friendly and green built beachfront homes starting in the low to mid $200,000s.  They are architecturally intriguing casas beautifully designed and finished without any monthly CFE payments.  A perfect getaway for our locals, a favorite of environmentalists, and the best bay in Baja to bond with our whales.

It's a Sellers market!  NOT!!!! Funny thing happened the other day.  Someone told us they heard we were turning from a buyers’ market to a sellers’ market, so we asked them, where did you hear that?  Answer, "they read it somewhere". Sorry, bad read. And it wasn’t in this rag.

It is still a buyers’ market and expected to stay as such until supply at least equals demand. Considering all the new construction we see everywhere we are betting it is going to be awhile more before any scales start tipping.  A thorough look into the MLS data base reveals reported sales for all of southern Baja in the last 30 days.

The breakdown is:

Houses 15, median price of $395,000 USD, median days on the market 200 and list vs sales price minus 19%.

Condos, 19.  median price of $214,500 USD, median days on the market 457 list vs sales price minus 15.5%.

Land sales, 13 with a median price of $40,000 USD, median days on the market 356 and list vs sales price minus 27%. 

Current active inventory (properties listed:) 2,993.

These statistics again are for all of Southern Baja.  That's Mulege to Land's End in Cabo.  The stats leave no room for doubt!  This is very much a buyers’ market.  Pay attention all you buyers, it is a great time to jump in now.  Sellers, trust your Realtor rather than what you read somewhere.  We promise to be the first ones to let you know when the scales tip to your side.