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Calling Mexico Home

Business is booming at south of the border developments offering sun, sand and sea.

Three bedrooms, two baths, Mexican architecture, US amenities .. with a Mexican community to enjoy.

You have white sand beach, pool, gated security, good restaurants and you're 30 minutes from an international airport … In California, you can't even find places like this, but if you could, it would be in the millions. Here it’s under $500,000.

It's called "Mexico Dreaming", as a Forbes FYI magazine headline put it, and it's not exactly new. Lured by nice weather, proximity to the US and the lower cost of living, Americans have a long history of settling in ex-pat colonies such as Ajijic and San Miguel de Allenda. But now beach resorts are getting into the act, promising to dramatically change the scale of migration. The Wall Street Journal reports that in 2005, foreigners were involved in 80 percent of all real estate transactions in Mexico. The Mexican Association of Real Estate Professionals estimates that the number of Americans who own homes in Mexico will leap from 1.5 million to 12 million within 20 years.

What's fueling this growth? During the 1990's, the Mexican government amended property laws, making it easier for foreigners to own property in Mexico, including land near beaches, streamlined procedures for buying, plus the increased availability of title insurance, made purchase safer and boosted confidence in the market.

Just as important, US baby boomers, 78 million strong, are now heading into their 60's and thinking about retirement. Many boomers have paid off their first mortgage and can tap equity in their homes, or are coming into inheritance money, freeing up funds to invest in Mexico. They're smart, investment-oriented buyers. "We see people in their 40's and 50's who already know about the legalities and financing options," he says.

In Puerto Vallarta, the boom began in 2003 when real estate sales in the Multiple Listing Service increased from $36 million to $92 million. Last year, that figure probably zoomed past $500 million. Most of the development is occurring north of the airport. A significant share is in Punta Mita, an exclusive area on the northern point of Banderas Bay where a Four Seasons resort is now flanked by a gated community of luxury homes and condos running $580,000 to $7.5 million.

We are happy to be in Barra de Navidad, Melaque and Costalegre where the growth is just starting. Prices are still affordable, beaches are still pristine, and there are NO stoplights. We are filled with small and friendly Mexican communities.

The typical ex-pat home in Mexico is getting bigger - many top 3,000 square feet - and contains an amazing package of amenities: DSL, cable TV, garage for cars, security guard, infinity pool and more.

Baja's Los Cabos, a former sportfishing outpost that has evolved into a bustling community has deluxe hotels, golf courses and high price homes have taken up the 20-mile corridor between Cabo San Lucas and San Jose del Cabo, whereas Costalegre is just getting started. We have an "Old Baja" feel. There's not much land left in Cabo for foreign developers, so they're coming here.

"The longer we stayed, the more we liked it," is a typical comment from our visitors. There's lots of activities, lots of Mexican charm, lots of reasons to think Barra de Navidad and Melaque are real towns that won't grow too fast and get spoiled.

More Information on Buying in Mexico: