Hello potential investors Please see the links and info below for the suite that I have for sale that is located in San Jose del Cabo, Mexico (#203-Villa 2 El Zalate) It is 15 minutes from the airport and 20 minutes. drive to Cabo San Lucas.
Or our suite video for our rental suite #402 Villa 4 http://www.youtube.com/watch?v=36_ZO1Csky4&feature=youtu.be
Or our suite web site that I created www.sonjapedersen.com/cabo .
The property is located 1 KM South from San Jose Del Cabo, Mexico and about 29 KM North of Cabo San Lucas. http://www.6717000.com/cabo/maps.html For comparisons sake, we will use suite #302 Villa 4 that sold at $380,000 (without parking stall parking stalls are around $40,000-$50,000 extra). Suites 302 and 502 suite are both 2 bedroom, 2 bath & are 1396 sf in size (1000 sf inside & 400 sf patio see floor plan link below).
For example if you can pull the money out of Canada or the US from one of your existing properties at an interest rate of approximately 3%.
If you were to finance the full amount of $430,000 (including the garage) in Canada or the US at 3%, your payments would be around $2,030/mo.
Maintenance Fees are $443/mo (2014), Taxes $50/mo, Management fee $50/mo, Utilities $250/mo (Satellite, Electricity, Telephone, Internet) = total is approx. $800/mo
Therefore your cost to own this investment is $2800/month.
We are generating $45,000/year or $3750/mo from rental income for our suite #402-Villa 4 for the last 3 years & We use the condo at least 2-3 months a year personally. The bottom line you can make up to $1000/month net income on this investment after all expenses or in other words your $150,000 that you are investing is giving you a return of $1000/mo.
Prices have come down in Cabo 40% in the last 7 years this is the bottom of the market & prices are starting to creep up again. There have been no sales in El Zalate from 2009 2012. In 2013 there have been 4 sales with #402 Villa 4 selling for $380,000 (no garage) Suite #301 Villa 1 which is a 700 sf 1 bed also just sold for $300,000 with no garage in December 2014.
Cabo has 330 days of sun a year and the average temperature is 25 degrees with no humidity (except in July/August & September). Cabo has all the modern conveniences of Canada (Costco, Home Depot, Sams Club, Walmart) and is very safe as compared to mainland Mexico (Check out the Drug Cartel map in the middle of this site http://www.6717000.com/elzalate/)
Properties can be registered through a trust (Fideicomiso) or in Fee Simple (The laws just recently got changed in Jan 2014 re the fee simple process I need to look into this some more but most accountants in Mexico suggest that the purchase should be thru a Fideicomiso) - Please call me if you have any more questions at 604-671-7000. More info on the trust at http://www.banderasnews.com/1310/re-tropicasa-mexico-real-estate-fideicomiso.htm
Here is a link to the web site that I developed for this complex http://www.6717000.com/elzalate/
Check out a video of the area http://mexicomyspace.ning.com/group/cabosanlucas?xg_source=activity
Or another video of the area that a local real estate agent put together; http://www.youtube.com/embed/rUWd_qTXEeo
Or our personal Condo (#402) that we currently rent out making $45,000/year in rental income & we use it for 2-3 months a year: www.6717000.com/cabo/
The link to the suite that is for sale is: www.6717000.com/elzalate/forsale/index.html
SOLD $600,000 - Suite #301 Villa 4 2100 sf (For Sale $625,000)
Sold at $380,000 - Suite #302 Villa 4 1400 sf no garage
(was For Sale $460,000) http://www.6717000.com/elzalate/forsale/villa302/index.html
Sold at $380,000 (Dec 2013) - Suite #403 Villa 4 no garage www.6717000.com/listings/condos/30470-403-4-el-zalate-other.html
To View all El Zalate MLS Listings to compare click this link & follow the instructions http://www.6717000.com/elzalate/construction.html
To view all El Zalate VRBO rentals click www.vrbo.com/vacation-rentals/mexico/baja-california-sur/san-jose-del-cabo/el-zalate
http://www.6717000.com/FP31571-31571-40losvallesclubcampestrother - Another property (House) at Club Campestre Gated Community in the Los Valles neighbourhood that I am selling (5 minutes away).
http://www.6717000.com/elzalate/villas/villa1/index.html - Villa 1 floor Plans
http://www.6717000.com/elzalate/villas/villa2/index.html - Villa 2 floor plans
http://www.6717000.com/elzalate/villas/villa3/index.html - Villa 3 floor plans
http://www.6717000.com/elzalate/villas/villa4/index.html - Villa 4 floor plans
What is the Cabo Corridor?
It's the 20 mile stretch between the two towns of Cabo San Lucas and San Jose del Cabo. It is where many of the hotel resorts, golf courses, and housing developments lie. When looking for real estate here in Cabo you will definitely have to consider the many projects situated either on the beach or back up into the mountains offering fantastic views of the Sea of Cortez.
To really understand how ownership in Mexico works, it is
important to understand the history of property ownership and its evolution
in Mexico. If you picture a country that has been dominated by foreign owners
since the early 1500's, you will begin to see why Mexico is so protective of
its most valuable resource...land.
A REALITY CHECK ON MEXICO
Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media - over the last few years - has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media is particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During this two-week period, over 120,000 young American citizens pour into Mexico and leave behind hundreds of millions of dollars.
It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities, Tijuana, Nogales, and Juarez. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. In a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine's Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.
What is just getting underway is what many are calling the "Largest southern migration to Mexico of people and real estate assets since the Civil War" A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000..
Mexico has avoided completely the subprime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The higher end markets ($2-20 million) in many of these destinations are going through a modest correction. The Baby Boomers market here is between $200,000 and $600,000.
Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans have never heard of Carlos Slim until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Mexico's resilience is to be admired. When the U.S. Federal Reserve granted a $30 billion loan to each of Mexico, Singapore, South Korea, and Brazil, Mexico reinvested the money in Treasury bonds in an account in New York City.
The following is a quote from Rosalind Wilson, President of the Canadian Chamber of Commerce. "The strength of the Mexican economic system makes the country a favorite destination for Canadian investment".
OPPORTUNITIES: WHY LOS CABOS?
The answer is simple and old fashioned: SUPPLY AND DEMAND.
The area Los Cabos is an investor's dream. This area has the comprehensive infrastructure in place, world class hospitals and dental care, nonexistent crime, international airport, first class private bilingual schools and higher than average appreciation potential. Like many areas in Mexico there is large demand for full and part time retirement living and a lot of construction underway to meet this demand. Pre construction of course is where the best bargains are available.
Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The demand for full and part time living by American and Canadian Baby Boomers is evident throughout the country. The top two choice locations are ocean front, and ocean view. This makes Los Cabos the ideal place to shop with Cabo San Lucas Real Estate for Cabo Homes.
Mexico, with the world's 13th largest GDP, is no longer a "Third World Country", but rather a fast growing, economically secure state. Los Cabos leads the way for investment opportunity. Make your next vacation destination Los Cabos. Rent one of the many Houses in Cabo and get a feel for the incredible lifestyle as well as investment Los Cabos offers.