What's new inm Real Estate?

May 2, 2016 Edition

The Hard Rock Hotel and All Inclusive Resort is Ready, Set, Go! Diamante scored big on this one when their resort was chosen to be the site of the 4th all inclusive Hard Rock Hotel in Mexico. Could have something to do with the more tha 1.5 miles of pristine white sandy beach, two of the top rated golf courses, and the awesome lagoon.   Groundbreaking is scheduled for this month, May 2016. 

 Hard Rock is going  all out on this one with over 600 rooms ranging from deluxe standard rooms to Rock Star suites all loaded up with sleep like a rock bedding, hydro tubs and yes fully stocked mini bars, in room wine and liquor dispensers and 24 hour room service.  The mega resort will also include numerous swimming pools, restaurants filled with their signature music memorabilia and music venues.  All of this within the private Diamante development yet less than 10 minutes to the bustling town of Cabo San Lucas.  Good Catch Diamante!

Zero percent financing???? Yep, you heard right!  Short term zero percent financing anyway.  The Copala development is offering developer financing that in comparison to some of the not so attractive institutional financing actually makes sense.  Finally someone gets it.  Here's the skinny; pick your house or condo and they will build it. During the construction period of 4 to 24 months (depending on your choice of product), you pay down 50% of the purchase price.  Once your dream casa is delivered, their financing begins with zero percent interest for the first 24 months.  You can choose to finance for up to 15 years fully amortized, (no sneaky balloon payments).  The interest kicks in at month 25 but only 3.5% for years 3-5.  Years 6-10 jump to 5% with years 11-15 at 6%. It is obvious Copala has thought through the financing hurdle (or lack of adequate financing) thoroughly as they are also offering their competitive financing in both the peso and Canadian dollar.  3 currencies to choose from all at reasonable terms and rates.  Kudos to you Copala for making home and condo buying attractive and obtainable to our local and foreign buyers.

Don't forget the 16% IVA! Thinking of buying or selling that commercial property?  Time to break out the calculator.  We discovered so many of our buyers and sellers are unaware that commercial property transactions are subject to that ugly IVA. Sales tax.

Take the price and add 16% right to the top of that.  Not a pretty picture and no wonder we do not see much in the way of a commercial real estate industry here in Los Cabos. It seems sellers like to put signs in the windows reading Se Vende, buyers like to call sellers direct thinking that they get a better deal without using an agent and a deal is made.  Time to sign the closing papers and surprise!   The buyer now has to pony up an additional 16% of the purchase price at the time of closing.  There is no way around this tax, well not legally that we know of.   Heads up commercial property seekers, make sure you take this tax into consideration before finalizing your purchase transactions.

BCS Realtors soon to be licensed! Or they will not be practicing Real Estate.  That is what our State Senator Sergio Covarrubias told a group of our top realtors at the AMPI meeting held at the Hacienda on April 20th.  After years and years of real estate professionals working with law makers to draft a licensing law that is fair to all parties, it appears we may have succeeded in producing a final draft.  Senator Covarrubias explained the process of bringing this document to law and the effects and results once the final vote is in.  All persons practicing Real Estate in the State of Baja California Sur will be licensed in accordance with the state guidelines. 

 True, we still do not have a defined understanding of the requirements to achieve the license to practice but the Senator promised that was soon to come.  First we must pass the law which when done will be in effect the following day.  The Realtors will then have a 6 month window to complete the education and testing requirements, (still unknown), in order to be registered as a licensed real estate professional. Non licensed Realtors will not be able to receive compensation for professional services and will be subject to sanctions for attempting to perform real estate duties. 

The licensing law is seen by many as a good thing for the industry or will be once we figure out what will be required to achieve such.  Just think, your waiter on the beach will no longer be able to sell you a property they do not really own and collect a commission. All good!   Senator Covarrubias was quite optimistic that the proposed law could be finalized within four to six months.  Should this be the case, be patient with your Realtors as they will all be hard at the books for a little while and then again every three years as continuing education will also be required.  When all is said and done our buyers and sellers will benefit tremendously by knowing their agents are true professionals held to the highest of ethics and standards.  Get ready people, licensing IS coming!

One of our Members shines Internationally! Santa Fe, New Mexico-Linda Neil of our capitol city of La Paz  has been appointed to the Board of AREA. (Associated Realty of the  Americas) This is a small group  ( 116 members, by invitation only) of successful and top level Realtors® in North America.  Other members  of the new Board include, the Colorado Real Estate Commissioner, a Past President of NAR, the President of the Texas Association of Realtors etc., etc. This was announced at the two day annual general meeting, held here this week..

AREA is a small; group (116 members by invitation only) of top level Rrealtors® that primarily functions as a referral network, but has a heavy educational component. Efforts are made to help improve professionalism in the real estate industry.

 By Cyndi D. Williams, Broker/Owner, Cabo Premiere Investment & Real Estate. 624-158-8650 Mex Cell.