Thursday, December 27, 2007

The reality of Rocky Point

From growth to ownership of land, Americans labor under 5 key myths about the area

Puerto Peñasco, in fact, has experienced unprecedented growth over the past 10 years, with developers successfully building and selling such resorts as Puerta Privada, Las Palomas and the Sonoran Resorts. To date, several thousand condominiums worth an estimated $2 billion or more have been sold or are close to delivery in Puerto Peñasco. Larger developers from other parts of Mexico, Spain and the United States have begun planning for the next stages of Puerto Peñasco real-estate development, and new development areas such as Las Conchas Resorts are being master planned for building over the next 25 years.

In 1993, in order to make its real estate more attractive to foreigners, Mexico passed laws to protect American and other foreign real-estate investors by allowing us to own condos, homes and land in Mexican coastal towns through a bank trust. A Mexican bank (all of which are now owned by large European, U.S. or Canadian banking conglomerates) holds the real estate in a trust, while the American acts as the sole beneficiary, enjoying all the same rights of ownership they would in Arizona. This bank trust lasts 50 years and then is renewable indefinitely and transfers to the beneficiary's heirs when he or she passes.

The Mexican government is expected to zealously protect this important revenue stream and continue to strengthen real-estate laws and protections for foreigners. In fact, Mexico's real-estate laws are now friendly enough that large U.S. lending institutions such as GMAC, GE and Citibank are willing to provide mortgages to Americans for real-estate purchases in Mexico, and title insurers such as Stewart Title and First American Title issue U.S. title insurance on Mexican real estate. To read more click here.

Published Dec. 16, 2007 12:00 AM