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.

Les

Additional Info on Cabo Real Estate

During the last ten years, property in Mexico has become a lucrative and viable investment strategy, bringing with it a new breed of sophisticated investors. U.S. title insurance, bonded escrow accounts and comprehensive title searches are "in"... promises and handshakes are "out".

Owning property in Mexico is easier and safer than ever, because now there are established and well defined rules regarding non-Mexicans owning land in Mexico. These rules are in place to protect your ownership rights and to promote the sale of real estate to foreign investors. The key is a safe, established and perpetually renewable Mexican Property Trust called a "Fideicomiso".

What is a "Fideicomiso" or Mexican Property Trust?
With the advent of North American Treaty Agreement, the Mexican Government recognized that it was critical to make foreign investment in Mexico safer and easier than ever. Because the Mexican Constitution prohibits foreigners from purchasing or owning real estate within 60 miles of an international border or within 30 miles of the Mexican Coast, a new, safe method of holding title was created. This new instrument, modeled after the one in Monaco, allows ownership through a Mexican Property Trust, called a "Fideicomiso". This is a trust agreement, much like an estate trust, giving you all the rights of ownership.

The Department of Foreign Affairs in Mexico City issues a permit to a Mexican Bank of your choice, allowing the bank to act as purchaser for the property. The bank acts as the "Trustee" for the Trust and you are the "Beneficiary" of the Trust. This is not an asset of the bank; they simply act as the Trustee to hold the Trust. Much like Living Wills or Estate Trusts in the U.S., the Mexican Bank, or Trustee, takes instructions only from the Beneficiary of the Trust (You). The Beneficiary has the right to use, occupy and possess the property, including the right to build on it or otherwise improve it. The Beneficiary may also sell the property by instructing the Trustee to transfer the rights to another qualified owner, or bequeath the property to an inheritor. The initial term of the trust is 50 years, and it can be renewed for an additional periods of 50 years indefinitely, providing for long-term control of the asset.
You have all the rights of a property owner in the U.S. or Canada, including the right to enjoy the property, sell the property, rent the property, improve the property, etc. This is not to be confused with a "land lease." The property you buy is placed in a trust with you named as the Beneficiary of the trust - you are not a lessee. If the property you purchase is already held in a Trust, you have the option of assuming that Trust, or having the property vested in a new Trust.

How Long Does It Take To Get A Trust?

On average, you can obtain your Trust within 60 days and in some cases, in as few as a few weeks.

You would be amazed how many people have only a simple buy/sell agreement between themselves and the seller as evidence of ownership. This is not a safe method of ownership and is not recommended .

Always get your Trust.

When Do I Pay For My Property?

When you have clear title, exactly like you would anywhere else. By using our U.S., bonded, third party Escrow service your money is held in an individually numbered, bonded and insured escrow account until your Trust is complete and the property rights have been transferred to you.

We do not recommend that you release funds to a seller unless you have received your Trust first. Purchasing property without receiving a Trust is simply buying without receiving the title in your name, which is risky and not recommended.

Fact: Until you have received your Trust, and rights to the property have been transferred to you, the legal owner of record in Mexico is still the previous owner.

Fact: You cannot bypass Mexican Taxes or fees by not getting your Trust, even if you sell the property to someone else before you have your Trust in place.

Do I Need Title Insurance?

Whether you buy real estate in the U.S. or Mexico, title insurance for every property you purchase is recommended. You have insurance for your car, your home and your health, why not purchase it for one of your largest investments, your property.

Fact: U.S. Title Insurance is available for properties in Mexico purchased by U.S. Citizens.

Fact: Just because you have a Trust does not ensure you have free and clear title.
In a Title Insurance search, the property's title is searched all the way back to the Mexican Revolution. Most title searches to secure a Trust only go back one or two owners of record.

How Can I Own My Property?

In the Trust document, you must name the Beneficiary or foreign owner for the property. This can be you personally, multiple partners, a foreign corporation, an estate trust, a living will, or other entity. The Trustee of the Trust (the Mexican Bank) will take direction from whomever you name as the Beneficiary.

Fact: You can name a U.S. Corporation as the Beneficiary of the Trust. This is perfectly legal.

Fact: If you sell more than 25% of the shares in the U.S. Corporation, you have created a real estate transaction in Mexico, and all Mexican Taxes apply.
(This is Article 151 of the Mexican Revenue Code and is also declared in the International Tax Treaty between the U.S. and Mexico. If this is done, and you do not pay the Mexican Taxes, you will have created a tax burden over the property for the new owner.)

Fact: You can own a property in a Mexican Corporation and take title fee simple only if the property is for development or investment purposes.

Fact: You cannot own property through Mexican Corporation to by-pass the Trust process.

Fact: It is against the law for a foreigner to own property in a Mexican Corporation for residential purposes.

Click Here For: The History of Real Estate Ownership in Mexico