Real Estate Outlook, 2nd half of 2010

In the beginning for the year I was convinced that we are close to the bottom and price reductions will slow down during the year. I have to admit that I was wrong. Today I believe that we will see more pressure in the Los Cabos Real Estate  market for the rest of the year. Although the absorption rate has dropped in the recent months from 378 to 258 months there is a lot of real estate out there. This will keep the pressure on and we will still be in a buyers market for quite some time. Currently there are almost 2,200 active properties on our local MLS. The sold to list ratio is at a 79%. We have already seen prices adjusting over the last couple of years and still offers come in a 20% – 30% below asking price. Touring activity has been slow over the last few months. As we are going into our hurricane season I don’t expect to see much improvement until November/December 2010 when tourist start coming back to our beautiful resort towns.

For more information please contact us:

Posch & Parks

Prudential California Realty,
Cabo Gold Division
Plaza del Rey, Suite # 12
Cabo San Lucas, BCS, Mexico
martin@prucabogold.com
adali@prucabogold.com
www.buyingincabo.com
www.prudentialcasanirvana.com
www.prudentialcasavalentina.com
Office: 011 52 (624) 104 3225
Cellular: 011 521 (624) 147 5857 Martin Posch
Cellular: 011 521 (624) 147 7532 Adali Parks
Vonage: 1 (619) 819 7986
e-Fax: 1 (619) 923-2316
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Capella Pedregal, Cabo San Lucas, BCS, Mexico

Capella Pedregal is the newest kid on the block in Cabo San Lucas. If you are interested in a fractional program you can’t miss to look at Capella Pedregal. From the time when you enter their main gate, when you pass through the tunnel and finally you get to the resort on the Pacific side you can feel the good vibe. All the people on site are extremly friendly and they seem to read your mind. Before you even have a chance to order a new drink it has already been served. The word-class spa, the state of the art gym, the pool areas and the restaurants on site make this an one of a kind resort. So if you are interested to look at Cabo San Lucas Real Estate and you are interested in a fractional program a realtor in Cabo San Lucas a call and let him show you the hidden paradise.

Outlook 2010 – Los Cabos Real Estate

Obviously the tough economic situation up north has hit our town very hard during the last 18 months. Finally the construction in down town is finished and it looks very nice. No more hassle to get through or into town. The construction makes life easier for all of us down here.

If you missed the opportunity early in this century to purchase property in our town right now is a great time to do so. It is the best time in many years to come and visit the tip of the Peninsular. You will be amazed about the great hotel deal you get, you will be amazed about the great rentals that are available and you will be surprised about the many opportunities in real estate. Prices have adjusted up to a 40% over the last 18 months. Prices have been affected in the low, middle and high end. I believe that we are close to the bottom and we won’t see much further price decreases. But I also believe that the market will remain soft for 2010 and we won’t see prices go up for a while. There is just too much inventory out there. Although there is still construction going on, many of the new projects have stopped and there will be very limited new inventory getting into the market.

There are opportunities for buyers and sellers out there. Serious sellers will find buyers and vice versa. If you are not seriously considering selling your property don’t even bother to put it on the market. Serious buyers will not take your property in consideration if you are not serious about selling it.

Sales are starting to happen again. After a very slow summer we have been busier over the last couple of months then we have been combined for the rest of the year. People are starting to look into real estate again and opportunities are being picked up by serious buyers.

As I mentioned in my 2009 outlook Los Cabos is and will be the leading resort community in Mexico for wealthy travelers for many years to come. New resorts are trying to copy the concept of our market all over Mexico. Los Cabos is a REALITY. We are not “going” to have marinas, golf courses, luxury resorts, beach clubs and world class dinning. We already have two fully operating marinas, numerous world class golf courses, we do have some of the best hotels in ALL of Mexico (One&Only Palmilla, Esperanza and Las Ventanas). Many beach clubs are up and running and vacationers have been enjoying them for a while.

Remember; location, location, location is all that really counts. There in ONLY one Los Cabos and the name has already been branded and is well known throughout the world. With over 300 sunny days per year, an average temperature of almost 80 degrees, surrounded by the Sea of Cortez and the Pacific Ocean makes Los Cabos one of the most desirable resort communities in North America. We are only a few hours away from most of the larger US cities and I believe that Cabo San Lucas or Los Cabos Real Estate market will continue to be one of the most sought after over the next few years.

Changing the Real Estate Industry in Mexico

There is a new generation of professionals here in Los Cabos that have realized that we urgently need continues education.

Let me explain to you what the exam really is and how it will change the future of our industry here in Mexico.

This recognition is authorized by the Secretary of Public Education (SEP) and is an examination of KNOWLEDGE and is a DEGREE, not a license. The degree can be obtained by successfully completing a college level curriculum at any one of several universities throughout the country. Under Agreement 286, an equivalency examination has been authorized to be given by CENEVAL, (National Evaluation Center for Higher Education). The purpose of the examination is to recognize prior studies and experience. The very first examination was held in various cities throughout the country on Wednesday, August.27th and about 300 persons took the exam. 150 of them passed the exam.

In order to take the examination the applicant must be at least 30 years old, have a high school degree, a letter of recomendation from a professional association, a notary public or other official in the profession. The applicant may be a Mexican citizen or a foreign person, legally authorized to promote and sell real estate in Mexico. If a foreigner, the high school graduation certificate must be revalidated by the Secretary of Public Education in Mexico. This is a process that can be done in the capital of the state where the applicant resides.

The examination is in Spanish and consists of 177 true/false and multiple choice questions. Subjects covered in the exam are: Administration of a Brokerage, Administration of Sales, Property Management, Promotion and Marketing, the Legal Aspects of Titles and Transfers, Real Estate Finance, Accounting and Economics. Study groups are being formed to prepare for these examinations.

At this point, an examination in English is not contemplated. It is argued that a Mexican seeking a real estate license in the U.S. or Canada will not expect an exam to be in Spanish. The baby boomer and foreign investor market in the tourism areas of Mexico is becoming increasingly important to the economy of the country, however. For this reason it is important to know the number of foreign agents working in Mexico, and to review the manner to obtain the Cedula Profesional in Mexico.

Being able to take the examination in English will not be a simple process, nor will it happen overnight. This examination, however, is important, and either a diploma from an authorized university or successful completion of the examination will become a requirement to do business in real estate in Mexico at some point in the future.

While the Cedula Professional is not required in order to do business in Mexico, it probably will become a requirement within the next few years as the individual states enact licensing laws. For example, in Sinaloa, which has established its license law, the Cedula Profesional is a requirement for licensing.

AMPI Los Cabos has taken on the burden to keep this education going. A lot has been a great experience for all of us and professionals that are going to take the exam in the future will benefit for the experience that we have gained through the last few weeks.

Ultimate Luxury Lifestyle

The Villa Las Palmas Collection

Cabo San Lucas, Pedregal, Baja California Sur, Mexico

We believe that in order to attain the ultimate luxury lifestyle, one deserves to think in threes: An amazing 13,000 square-foot villa with breathtaking views, fully furnished and staffed. A 60 yacht with an experienced crew at your disposal. And the luxurious elements and service of a six-star resort, including swift personal ground transportation. There are many ways to experience Cabo San Lucas and to enjoy second-home ownership, however only The Villa Las Palmas Collection from E3Escapes has created the perfect combination of these two opportunities.

Fully staffed 13,000 sq.ft. of distinctive and wonderfully integrated architecture into the lavish Villas Las Palmas. Views of Cabo Bay and the gleaming Sea of Cortez.

A 60 ft. Hatteras luxury sport fishing yacht is part of your dream vacation home. It comes with a full time crew and is available to you whenever you are in Cabo.

This unique fractional opportunity bestows upon you services and benefits of a world-class resort, while keeping intact your privacy and pride that comes with ownership.

VILLA LAS PALMAS

Distinctive but wonderfully integrated architecture is a signature of the lavish Villa Las Palmas. But strong integration is necessary in a property whose stature measures 13,000 square feet. Two of it six suites are separate casitas, beautiful enclaves perfect for the privacy-seeking among you. Of course, almost all of its suites have beguiling ocean views, looking out to the handsome harbor in Cabo San Lucas and the gleaming Sea of Cortez beyond.
Luxury touches are everywhere, with no false step of showiness, only style. Marble and travertine grace the floors as well as the counters, where granite also makes its winning statement. As is fitting with a villa of this size, there are many additional amenities, like a movie room, game room with full billiard table and fully equipped exercise room.
But do not spend all your time admiring the graces of indoors: step onto the balcony and behold the breathtaking Sea of Cortez with Cabo San Lucas and the marina spread out before you. Right there at your feet; an infinity edge pool with a swim-up bar, surrounded by outdoor amenities as abundant as even the most spoiled imagination could devise. With so many comfortable spaces around the property, lounging about in the sun or shade and admiring the views gives you the feeling of a sweet.

SPARTACUS AT SEA

Spartacus is a spectacular luxury sport fishing yacht with 3412 Caterpillar Turbo engines allowing for a top speed of 32 knots. The vessel features many plush amenities making your excursion one that is both fun and relaxing. The entire interior is finished in cherry wood. The salon is comfortable with an L shaped Italian leather seating arrangement, dinette for six, complete galley with trash compactor, two refrigerators , two freezers, Direct T.V that functions even whilst at sea, both on the bridge and down below, Sirius Radio, DVD, VHS, CD player, iPod plug in so you can bring your favorite tunes and satellite telephone.
The master stateroom has a queen size bed, with bathroom en suite with a shower/tub and Direct TV. The VIP guest stateroom has a double bed, own bathroom and T.V with VCR. The third stateroom can be used for guests or as crews quarters, own bathroom with shower; washer and dryer also aboard.
The Spartacus at Sea has all Shimano Reels and Calstar Rods except for the 130 class rods which are made by Seeker. Two bait tanks are located in the cockpit, plus another on the bow of the boat for a capacity of 250 baits, when needed, nine tuna tubes make sure you never run out of large bait when necessary. The cockpit has an icemaker for keeping your fish cool in the hold, plus a tackle center with a selection of 500 lures. Two GPS, side scanning sonar, water maker, two generators, 38 ft tuna tower.  The bridge is large with ample, shaded seating for guests to spend time up top.

6-STAR-SERVICES

Peace, comfort, ease, attention; without a second thought. That is the essence of 6-star service. Shared ownership of The Villa Las Palmas Collection allows you to spend your time enjoying every aspect of your investment, not maintaining and managing it. From cleaning to refurbishing to accounting, every aspect is simple and stress free.

This unique fractional ownership opportunity bestows upon you the services and benefits of a world-class resort, but with the added privacy, freedom and pride that only comes with ownership. And during each visit, you will be privy to a first-rate staff who are completely dedicated to your home, your needs, your wishes.
Starting with your first visit and with every visit thereafter, your staff will be quietly learning your preferences and remembering your style on a personal level. They will provide your family, friends and guests with every luxury and comfort you can dream up, before you even think to ask for it.
Let your Guest Experience Coordinator put together an entertaining evening at home, or a private evening of dining at your favorite spot in town. Have a massage on the balcony. Plan a gourmet menu with your personal chef. Or have your driver take you in to town for a day of shopping.

Anything you can think of that would help make your stay a truly 6-star experience, consider it done.

Price: $699,000 USD for 1/12 share (4 weeks)

Is is safe to travel to Cabo?

I’ve gotten a lot of e-mails recently from clients and friends worried about the safety in Cabo.

I’ve been living here since 1998 and I’ve had never any problems with regards to my safety. Los Cabos is still a very small place and it is much securer and any city in the United States.

 

Please remember we are far away from mainland Mexico and especially the boarder towns. Please keep in mind that Los Cabos is a 1,000 miles south of the boarder.

 

Los Cabos is a tourist destination and you will be in safe hands down here. So please don’t let you drive crazy from all the bad press that you’ve been getting recently especially in the US media. Cabo is still one of the safest places in Mexico and you don’t have to worry about your safety while you are visiting.

 

If you want to have more information with regards to listing your property or buying a property while you are here please contact me   HERE

Los Cabos Real Estate Outlook for 2009

As most of our buyers are from the US, the question is not if we are going to be affected, but “How much will we be affected in 2009?”

 

So far our high end market has held up fairly well. I believe that this is due to the lack of leverage that we have in our market. Please remember that US financing has only been available for the last couple of years here in Los Cabos. Only a very small number of transactions have been financed and therefore we should not see the price pressure that you have seen in some US markets.

 

Los Cabos is and will be the leading resort community in Mexico for wealthy travelers for many years to come. New resorts are trying to copy the concept of our market all over Mexico. Los Cabos is a REALITY. We are not “going” to have marinas, golf courses, luxury resorts, beach clubs and world class dinning. We already have two fully operating marinas, numerous world class golf courses, we do have some of the best hotels in ALL of Mexico (One&Only Palmilla, Esperanza and Las Ventanas) with a forth hotel to come (Montage Hotel & Resort, scheduled for 2010). Many beach clubs are up and running and vacationers have been enjoying them for a while. 

 

Remember; location, location, location is all that really counts. There in ONLY one Los Cabos and the name has already been branded and is well known throughout the world. With over 300 sunny days per year, an average temperature of almost 80 degrees, surrounded by the Sea of Cortez and the Pacific Ocean makes Los Cabos one of the most desirable resort communities in North America. We are only a few hours away from most of the larger US cities and I believe that Cabo will continue to be one of the most sought after destination over the next few years.

 

We see improvements in our infrastructure such as the expansion of the airport. Currently there are 75 flights arriving daily at the International Airport and with the new Taxi Way that was completed earlier this year we will be able to receive up to double that number of flights in the near future. A new terminal is currently under construction and will guarantee tourists a pleasant arrival in Los Cabos. The Private Airport is one of the busiest terminals in all of North America during the winter months, second only to Toluca (State of Mexico) in number of flights arriving in all of Mexico.

 

The first time in over 5 years we are in a buyer’s market and it appears this will continue into the 09 season. In the past, many Buyers have paid cash for their vacation homes here in Cabo and therefore are not in need to sell their homes. The Owners that want or have to sell their homes will create opportunities for Buyers. You will never be able to buy exactly at the bottom of the market, but I believe that 2009 will provide great investment opportunities.

 

Properties in “amenity rich” communities will be driving the market in the years to come. Currently there are many new developments being built and with the lack of access to capital I recommend that you do your due diligence before you purchase in a new development. Only go with proven developers that have their infrastructure, amenities and title in and be very careful with “weak promises” that developers make.

 

If you want to sell your home in this season make sure it is properly priced. Your home will NOT sell if it is priced out of the market. Remember, we will be in a Buyers market and the Buyer will dictate the price.

 

I’ve been in real estate for over 8 years here in Cabo and witnessed how the area developed after 9/11. I’m convinced that once things turn around up north, Los Cabos will be positioned stronger than ever.

 

If you want to know more about my blog, my listings or the Prudential “Fine Homes” division then please click HERE

 

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