Mexico Real Estate: Are Safety Concerns Fact or Fiction?
Published on:
Wednesday, December 02, 2009
Written by:
Glynna Prentice

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Mexico's real estate market and tourism industry have been hard hit by the global recession, concerns of drug violence and the swine flu. Are the safety concerns legitimate, or a myth reinforced by the media? Glynna Prentice from International Living seeks to debunk some of the misconceptions on safety in Mexico.

mazatlan real estate
Mazatlan, Mexico
Part of my daily routine here in Campeche, where I live in the Yucatán Peninsula, is to stroll to the historic center and chat with friends who own shops on the main street. I usually go in the late afternoon when the air is cooler and long shadows stretch across the cobbled streets and colonial buildings. It’s a nice walk, and very peaceful.

I used to pass lots of tourists along the way, but I don’t anymore. These days my friends mostly talk about how tourism is down, and with it their sales.

Tourism all over Mexico has slowed to a trickle this year. Part of this is due to the global recession, which has left people with less money to spend on travel. But mostly it’s due to bad press, to fears of swine flu and of drug violence. And it’s a shame, because it’s both inaccurate and undeserved.

It’s doubly a shame because those fears are making folks miss out on some exceptional bargains. Right now, you can get big savings on Mexico travel deals—discounts on hotel stays, air fares, restaurants and the like—to entice tourists back. The tourists who come all have a great time.

They find Mexico as beautiful and exciting as ever, and they marvel at the huge gap between what the media has told them and the reality they find.

So, for all of you who haven’t been lucky enough to see the truth first-hand, I’d like to do a little myth-busting.

Myth #1: You’ll Catch the Swine Flu in Mexico

Actually, you can catch the swine flu anyplace, because it’s spread all over the world. In June, the World Health Organization declared the swine flu—virus H1N1—a pandemic. In other words, it’s pretty much everyplace. In fact, these days you probably have a better chance of catching it in the U.S. than in Mexico, because there have been more confirmed cases in the U.S.

H1N1 may not even have begun in Mexico. But Mexican health officials first identified it. And Mexico, being a good global citizen, blew the whistle. Sadly, that decision has cost Mexico billions in tourist dollars.

Here’s the situation now: As noted, the WHO declared H1N1 a pandemic in June. Note that this doesn’t mean the disease has gotten more dangerous. The term pandemic just refers to how widely it’s spread.

Countries that had warned against travel to Mexico have largely lifted those bans. The U.S. Centers for Disease Control and Prevention, for instance, have removed their travel warning for Mexico and replaced it with a general global warning. Airlines that had canceled flights to Mexico when the flu first appeared have begun resuming their schedules.

The fall flu season has begun and, as expected, new cases of H1N1 are showing up in both the U.S. and Mexico. Vaccines are available in the U.S. already, and will be in Mexico by December (huge demand for the vaccine has slowed down delivery). In the meantime, Mexico’s public health department—which takes its job seriously—has been educating the public on how to cut down the spread of infection, like washing your hands often or staying home if you’re sick. (These simple measures are very effective, actually.) In addition, businesses like restaurants often hand out antiseptic hand gel to customers to make sure folks follow proper hygiene procedures. Mexico’s health officials also note that, from what they’ve seen so far, H1N1 is proving no more dangerous than the normal flu.

So chances are slim that you’ll catch the flu if you come to Mexico. But if you do, don’t worry. Mexico’s hospitals and doctors are first-rate, and they’ve all been prepped on this strain of flu.

Myth #2: Mexico is Violent

Many people already see through the media hype and take what they read and hear with a grain of salt. They realize that violence in border towns and drug areas doesn’t affect safety in places that are hundreds of miles away. To do so, as the media does, is like condemning Ohio for violence in Detroit.

But because the media keeps harping on it, we’ll say it again….

Only parts of Mexico are violent. These are the border areas, Mexico City, and a few other drug-related areas that have always been dicey. In other words, the usual suspects. We don’t recommend these areas.

Most of Mexico is still safe. The places we recommend—such as San Miguel de Allende, Ajijic, Puerto Vallarta and others—are probably safer than where you live now. Certainly Campeche is safer than anyplace I’ve ever lived before.

I’ve walked around cities all over Mexico by day and by night, and I’ve always felt safe. I take normal, sensible precautions, but otherwise I don’t worry. Other expats I’ve spoken with tell me the same thing. Random violence of the kind we know from the U.S.—muggings, for instance—is extremely rare here. It’s just not something you worry about. And the drug war? Unless you’re dealing or buying, you’re likely safe.

Reality: Mexico is Still as Great a Destination as it Always Was

Fundamentally, Mexico hasn’t changed. It’s still beautiful, exotic, and welcoming…and offering a high quality of life at a fraction of what you pay north of the border.

And traveling to Mexico now is a better bargain than ever, thanks to all the special offers. So do yourself a favor and take advantage of them. Because—like the media frenzy over the swine flu—they won’t last forever.

This article has been republished from International Living. You can also view this article at International Living, an international real estate analysis site.

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New Hotel and Homes by Lori Rackl (12/02/09)

Posted by Rich McClarty

New hotel and homes headed for San Miguel
Comments

December 2, 2009
BY LORI RACKL Travel Editor

The old town of San Miguel is about to get a new hotel.

Slated to open next year, the luxury resort Rosewood San Miguel de Allende and Artesana Rosewood Residences could go a long way to boost tourism in an area dominated by small boutique hotels and B&Bs.
» Click to enlarge image
Luxury villas and a 63-room hotel make up the Rosewood Artesana development, slated to open next year.

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Construction is under way on a 63-room hacienda-style hotel with a 23,000-square-foot spa and fitness center — the size and scope of which are lacking in a town that has no Four Seasons and Ritz-Carltons or Hyatts and Hiltons.

Plans also call for 121 two- to five-bedroom villas to surround the hotel. The first 27 of the villas, which owners can put into Rosewood’s rental pool, are scheduled to be finished when the hotel opens in October.

The project is spread over 14 prime acres in central San Miguel near the Instituto Allende, a popular school offering Spanish and art classes, among other things. Rosewood will partner with the school to offer cooking and artistic programs for hotel guests and villa residents, said Artesana sales director Richard York.

“This isn’t just a country club,” York said. “This is for folks who want to roll up their sleeves and get paint on their hands.”

It’s also for folks with deep pockets. The villas start at $513,000 for a two-bedroom unit and top out at $2.75 million. York anticipates about half of the buyers will be American. Hotel rates will be set next year.

York expects the development to be a hit with families thanks to its pedestrian-only streets and facilities and programs tailored to children — things that historically have been missing in San Miguel and, as a result, have made it more of a couples’ destination.

The Artesana project will be the third property in Mexico for Dallas-based Rosewood Hotels & Resorts, which also has Las Ventanas in San Jose del Cabo and Rosewood Mayakoba south of Cancun; (800) 519-7683, artesanasanmiguel.com.
Information for this article was gathered on a research trip sponsored by Rosewood San Miguel de Allende and Artesana Rosewood Residences.
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Mexican Healthcare Lures Americans by (11/19/09)

Mexico's health care lures Americans

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By Chris Hawley, USA TODAY
MEXICO CITY — It sounds almost too good to be true: a health care plan with no limits, no deductibles, free medicines, tests, X-rays, eyeglasses, even dental work — all for a flat fee of $250 or less a year.

To get it, you just have to move to Mexico.

As the United States debates an overhaul of its health care system, thousands of American retirees in Mexico have quietly found a solution of their own, signing up for the health care plan run by the Mexican Social Security Institute.

The system has flaws, the facilities aren't cutting-edge, and the deal may not last long because the Mexican government said in a recent report that it is "notorious" for losing money. But for now, retirees say they're getting a bargain.

"It was one of the primary reasons I moved here," said Judy Harvey of Prescott Valley, who now lives in Alamos, Sonora. "I couldn't afford health care in the United States. … To me, this is the best system that there is."

It's unclear how many Americans use IMSS, but with between 40,000 and 80,000 U.S. retirees living in Mexico, the number probably runs "well into the thousands," said David Warner, a public policy professor at the University of Texas.

"They take very good care of us," said Jessica Moyal, 59, of Hollywood, Fla., who now lives in San Miguel de Allende, Mexico, a popular retirement enclave for Americans.

The IMSS plan is primarily designed to support Mexican taxpayers who have been paying into the system for decades, and officials say they don't want to be overrun by bargain-hunting foreigners.

"If they started flooding down here for this, it wouldn't be sustainable," said Javier Lopez Ortiz, IMSS director in San Miguel de Allende.

Pre-existing conditions aren't covered for the first two years, and some newer medicines and implants are not free. IMSS hospitals don't have frills such as televisions or in-room phones, and they often require patients to bring family members to help with bathing and other non-medical tasks. Most doctors and nurses speak only Spanish, and Mexico's overloaded court system doesn't provide much recourse if something goes wrong.

But the medical care doesn't cost a dime after paying the annual fee, and it is usually good, retirees and health experts say. Warner said most American retirees enroll in IMSS as a form of cheap insurance against medical emergencies, while using private doctors or traveling back to the USA for less urgent care. Medicare, the U.S. insurance plan for retirees, cannot be used outside the United States.

Program prompts relocation

The program has helped people such as Ron and Jemmy Miller of Shawano, Wis. They decided to retire early, but knew affording health care was going to be a problem.

Ron was a self-employed contractor, and Jemmy was a loan officer at a bank. At ages 61 and 52, respectively, they were too young to qualify for Medicare, but too old to risk not having health insurance.

"We knew that we couldn't retire without Medicare," Jemmy Miller said. "We're pretty much in Mexico now because we can't afford health care in the States."

The couple learned about IMSS from Mexico guidebooks and the Internet. They moved to the central city of Irapuato in 2006, got residency visas as foreign retirees, and then enrolled in IMSS.

The IMSS system is similar to an HMO in the United States, Jemmy Miller said. Patients are assigned a primary care physician and given a passport-size ID booklet that includes records of appointments. The doctor can refer patients to specialists, a bigger hospital or one of the IMSS specialty hospitals in cities such as Guadalajara or Mexico City.

In 2007, Ron Miller got appendicitis and had emergency surgery at the local IMSS hospital. He was in the hospital for about a week and had a double room to himself. The food was good, the nurses were attentive, and doctors stopped by three or four times a day to check on him, he said. At the end of it all, there was no bill, just an entry in the ID booklet.

The Millers may soon move back to the United States, but Jemmy Miller said they want to try to maintain the IMSS coverage. "If something big really comes up, we'd probably come back to Mexico," she said.

Different levels of care offered

IMSS is one of several public health systems in Mexico, each with its own network of hospitals and clinics. The program, which was founded in 1943, is funded by a combination of payroll deductions, employer contributions and government funds. It covers 50.8 million workers.

IMSS facilities are a step up from the state hospitals, but not as advanced as Mexico's private hospitals, which are often world-class, said Curtis Page, a Tempe, Ariz., doctor and co-author of a book about health care in Mexico.

Most patients seem grateful nonetheless. When Michael Kirkpatrick, 63, of Austin, fell off his motorcycle near his home in San Miguel de Allende, IMSS surgeons gave him a stainless-steel artificial hip.

There was no physical rehabilitation after the surgery, just a checkup a few weeks later.

"There was not the kind of follow-through and therapy that you would expect if you were doing this in the first world," Kirkpatrick said. "But it was satisfactory. The hip feels good."

Bob Story, 75, of St. Louis, had prostate-reduction surgery at an IMSS hospital in Mazatlán and discovered that patients were expected to bring their own pillows. It was a small price to pay, he said, for a surgery that would have cost thousands of dollars back home.

"I would say it's better than any health plan I've had in the States," he said.

Hawley is Latin America correspondent for USA TODAY and The Arizona Republic

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The Truth About Mexico by Linda Ellerbee (06/07/09)

One Respected Journalist Puts All The Hype in Perspective

Puerto Vallarta News NetworkVallarta Living | May 2009

Mexico: One Journalistďż˝s View
Linda Ellerbee - PVNN

Click HERE for more of Linda's comments on our special May edition of Banderas Beat: The Bay of Banderas: Be Here. Be Happy. Be Home. (Video Diva Productions)
Sometimes Iďż˝ve been called a maverick because I donďż˝t always agree with my colleagues, but then, only dead fish swim with the stream all the time. The stream here is Mexico.

You would have to be living on another planet to avoid hearing how dangerous Mexico has become, and, yes, itďż˝s true drug wars have escalated violence in Mexico, causing collateral damage, a phrase I hate. Collateral damage is a cheap way of saying that innocent people, some of them tourists, have been robbed, hurt or killed.

But thatďż˝s not the whole story. Neither is this. This is my story.

Iďż˝m a journalist who lives in New York City, but has spent considerable time in Mexico, specifically Puerto Vallarta, for the last four years. Iďż˝m in Vallarta now. And despite what Iďż˝m getting from the U.S. media, the 24-hour news networks in particular, I feel as safe here as I do at home in New York, possibly safer.

I walk the streets of my Vallarta neighborhood alone day or night. And I donďż˝t live in a gated community, or any other All-Gringo neighborhood. I live in Mexico. Among Mexicans. I go where I want (which does not happen to include bars where prostitution and drugs are the basic products), and take no more precautions than I would at home in New York; which is to say I donďż˝t wave money around, I donďż˝t act the Ugly American, I do keep my eyes open, Iďż˝m aware of my surroundings, and I try not to behave like a fool.

Iďż˝ve not always been successful at that last one. One evening a friend left the house I was renting in Vallarta at that time, and, unbeknownst to me, did not slam the automatically-locking door on her way out. Sure enough, less than an hour later a stranger did come into my house. A burglar? Robber? Kidnapper? Killer? Drug lord?

No, it was a local police officer, the "beat cop" for our neighborhood, who, on seeing my unlatched door, entered to make sure everything (including me) was okay. He insisted on walking with me around the house, opening closets, looking behind doors and, yes, even under beds, to be certain no one else had wandered in, and that nothing was missing. He was polite, smart and kind, but before he left, he lectured me on having not checked to see that my friend had locked the door behind her. In other words, he told me to use my common sense.

Do bad things happen here? Of course they do. Bad things happen everywhere, but the murder rate here is much lower than, say, New Orleans, and if there are bars on many of the ground floor windows of houses here, well, the same is true where I live, in Greenwich Village, which is considered a swell neighborhood ďż˝ house prices start at about $4 million (including the bars on the ground floor windows.)

There are good reasons thousands of people from the United States are moving to Mexico every month, and itďż˝s not just the lower cost of living, a hefty tax break and less snow to shovel. Mexico is a beautiful country, a special place.

The climate varies, but is plentifully mild, the culture is ancient and revered, the young are loved unconditionally, the old are respected, and I have yet to hear anyone mention Britney Spears, Lindsay Lohan, or Madonnaďż˝s attempt to adopt a second African child, even though, with such a late start, she cannot possibly begin to keep up with Angelina Jolie.

And then there are the people. Generalization is risky, butďż˝ in general ďż˝ Mexicans are warm, friendly, generous and welcoming. If you smile at them, they smile back. If you greet a passing stranger on the street, they greet you back. If you try to speak even a little Spanish, they tend to treat you as though you were fluent. Or at least not an idiot.

I have had taxi drivers track me down after leaving my wallet or cell phone in their cab. I have had someone run out of a store to catch me because I have overpaid by twenty cents. I have been introduced to and come to love a people who celebrate a day dedicated to the dead as a recognition of the cycles of birth and death and birth ďż˝ and the 15th birthday of a girl, an important rite in becoming a woman ďż˝ with the same joy.

Too much of the noise youďż˝re hearing about how dangerous it is to come to Mexico is just that ďż˝ noise. But the media love noise, and too many journalists currently making it donďż˝t live here. Some have never even been here. They just like to be photographed at night, standing near a spotlighted border crossing, pointing across the line to some imaginary country from hell. It looks good on TV.

Another thing. The U.S. media tend to lump all of Mexico into one big bad bowl. Talking about drug violence in Mexico without naming a state or city where this is taking place is rather like looking at the horror of Katrina and saying, "Damn. Did you know the U.S. is under water?" or reporting on the shootings at Columbine or the bombing of the Federal building in Oklahoma City by saying that kids all over the U.S. are shooting their classmates and all the grownups are blowing up buildings. The recent rise in violence in Mexico has mostly occurred in a few states, and especially along the border. It is real, but it does not describe an entire country.

It would be nice if we could put whatďż˝s going on in Mexico in perspective, geographically and emotionally. It would be nice if we could remember that, as has been noted more than once, these drug wars wouldnďż˝t be going on if people in the United States didnďż˝t want the drugs, or if other people in the United States werenďż˝t selling Mexican drug lords the guns.

Most of all, it would be nice if more people in the United States actually came to this part of America (Mexico is also America, you will recall) to see for themselves what a fine place Mexico really is, and how good a vacation (or a life) here can be.

So come on down and get to know your southern neighbors. I think youďż˝ll like it here. Especially the people.

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Spring Break in Mexico: Do the Math, Kids by Frank Koughan (03/29/09)

Don't Believe the Hype

Spring Break in Mexico: Do the Math, Kids

By Frank Koughan, former CBS News "60 Minutes" producer who has been living in
Queretaro since 2006

>....According to the State Dept., 669 Americans died "non-natural deaths" in
Mexico in the three years between Jan `05 and Dec `07, which accounts for 30% of
"non-natural" American deaths around the world. Sounds scary, but then Mexico
also accounts for 30% of the foreign trips taken by Americans, so what do you
expect? Furthermore, we're talking about 45 million American visits to Mexico,
so while 669 deaths are a tragedy, they are not exactly a killing field. Based
on these numbers, the survival rate for Americans in Mexico would appear to be
99.9986%

>Breaking that State Dept's numbers down a little further, though, we see that
58 percent (389) of these "non-natural deaths" were from accidents - car, plane,
boat or "other." Eighty-five Americans drowned here in this nation full of beach
resorts. Fifteen died of drug overdoses and 61 Americans - nine percent of the
total - committed suicide! Admittedly, life here can be frustrating sometimes,
but any tourist who kills himself here should, in all fairness, not be counted
against Mexico's total.

>The number of Americans who decided Mexico would be a great place to kill
themselves is nearly half the number of those who had that decision made for
them. According to the State Dept, a grand total of 126 Americans were murdered
in Mexico during those three years - just slightly less than the 45,000 killed
north of the border during the same period. So while your chances of not dying
here may be 99.9986%, your chances of not being murdered here are 99.9997%.
Anyone who considers those to be dangerous odds would be advised not to spend
spring break in Las Vegas, either....[taking out those who were suicides or
actively involved in drugs] we're really talking about seventy murders in four
years, during which time Americans made 60 million visits to Mexico, which has a
population of about 120 million. For the record, that's ten percent fewer
murders than took place in Houston, population 2 million, in the first three
months of 2008.

>....The state of Querďż˝taro, where I live, is very small ďż˝ a little over a
million people ďż˝ and at any given time there are about 50,000 Queretanos working
in the United States. In 2007, forty-one of them were shipped home for burial by
the Mexican embassy. Strangely, no one here ever tries to talk me out of
returning home for a visit.....>

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Buying the Listing by Blogger (01/20/09)

Buying the Listing! Understanding Deceptive Listing Techniques.

Interested in "Buying a listing?" I'm not. I have a conscience! All of us in real estate have at one time or another gone up against other agents on a listing appointment that has other ideas. While I diligently prepared my presentation I crunch the numbers to present the most accurate of market analysis for the seller. I also get in the car and drive buy the properties, take photos, and then I compare my presentation. I use actual homes in the neighborhood that are comps for the subject property that I was vying to list. I leave no stone unturned for the best suggest list price possible!

In more recent times, I have shortened the term of the recent sales to less than 6 months time-frame. This way I can give the most accurate picture of what a seller can realistically expect to obtain when selling their home. Does that sound reasonable? Occasionally I go up against other agents that have a different way of winning. Their strategy is lying.

They lie to the seller and give them the false hope that their home is worth substantially more than any other agents are quoting. These agents are so optimistic about the lie that the seller believes their optimism instead of seeing it for the deceit it is. When one agent give a much higher number, they automatically eliminate all of the other agents out of competition. It is called "Buying the listing!" It is also a violation of the Realtor Code of Ethics. It also gives false hope to the seller that really wants to believe that obtaining the higher sales price is realistic. What does the seller know about prices anyway?

The next part of the game that takes place when an agent buys the listing is to let the seller beat themselves up about price. The seller notices no one is coming by, and ask the agent what improvements could they make to enhance the sale of their home? Maybe even what about a price reduction? Would that help? A small price reduction on a grossly overpriced home is like bleeding to death by a paper cut! It is incrementally painful for the seller.

The more obvious approach of the deceptive listing agent is to comeback to the seller in a few weeks, and say "No one is looking at your home, we need to lower the price. Since no other agents are involved the seller must start to price the home where it belonged in the first place.

When I go on a listing appointment, and I know I am interviewing against other agents and I suspect the other agent is trying to buy the listing at a much higher sales price. I tell the sellers first of all, I am not interested in taking your listing at a price it will never sell at. The other item I tell them, "If the other agents feels so strong about that higher price...it should be no problem for him / her to place this verbiage in the listing agreement..." I write something similar to the following out before I leave.

"It is fully understood between sellers, and listing agent that at no time during the listing agreement will the listing agent approach seller for a price reduction!"

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From Austin Newspaper by Rich McClarty (01/05/09)

Home > Uncovering Mexico > Archives > 2009 > January > 05 > Entry
Mexico - How bad is it really?

By Jeremy Schwartz | Monday, January 5, 2009, 09:30 AM

I just got back from a two week vacation in my native New England and by far the most frequent question from friends and family was: Is Mexico really as bad as I think it is?

The image of Mexico that has reached the great northeast is one of extreme violence, a country engulfed by chaos, where walking outside is to risk being hit by a stray bullet. Itďż˝s not hard to see how this has happened: the last year has indeed been the bloodiest on record, with more than 5,000 drug related killings, twice as many as in 2007. And the violence has been the dominant theme of journalistic coverage of Mexico: Newsweek reporters go on CNN and talk of a ďż˝failed stateďż˝ south of the border. The cover of last monthďż˝s Forbes magazine depicts a country spiraling into chaos. A recent Los Angeles Times story speaks of the ďż˝Afghanistan-izationďż˝ of Mexico. Small wonder then that many Americans see Mexico as little more than a hellish mix of corruption and violence.

I told my friends and family that the reality here is far more nuanced. While there are certainly some failed cities - I would never tell loved ones to go anywhere near Ciudad Juarez or Tijuana or Culiacan - most of the country is still stable and peaceful. As violent as the drug war has become, its victims are still overwhelmingly connected to the cartels. Few innocents are caught in the cross-fire. I wouldnďż˝t necessarily recommend a sightseeing trip to certain border towns or through the remote mountains of the Sierra Madre, but tourists should feel comfortable booking a trip to places like Puerto Vallarta or Oaxaca or Veracruz.

In many parts of the country, the drug war remains confined to the headlines. In recent months Iďż˝ve traveled without incident to the seaside town of Tulum on the Yucatan Peninsula, colonial Puebla outside of Mexico City, cobblestoned San Miguel de Allende in Guanajuato and the humid, lowland capital of Villahermosa, in the state of Tabasco. In all four places, life was largely being lived as usual. Even in big, bad Mexico City, where I live with my wife, violence, or fear of violence, is not the dominant feeling, despite the headlines.

Viewing Mexico as an ungovernable chaos is to make a caricature of this vast, complex country. And as I told my friends and family, it can prevent you from enjoying the magic that still courses through Mexicoďż˝s veins.

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Clients Speak by (07/10/08)

Dear Rich:

I am so happy that I listed with Select.

I really appreciate the professionalism of your operation and the fact your entire sales force came to look at my house today.

Several people asked about square footage and values so I thought it would be helpful to share with them the spreadsheet we worked out together.

Many thanks for your visit today and for your input. Select is clearly a class act.

Gail

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Rosewood by (07/04/08)

Developer sweet talks San Miguel citizens Print E-mail
Written by Bob Kelly
Saturday, 05 July 2008

A U.S. developer is heading off potential criticism of its 234-million-dollar luxury resort complex and residential project in San Miguel de Allende by falling back on one of the adages of public relations: do good and take credit for it.

At the ground breaking June 28, Bald Mountain of Aspen, Colorado emphasized the economic benefits it said will result from its plans and the contributions it is making to environmental and community projects in San Miguel.

In all, the Rosewood resort and Artesana Residences will generate nearly 14 million dollars in local, state and federal payroll, property and sales taxes through 2012, said Scott Writer, a principal in Bald Mountain.

The development will generate additional tax income by creating 800 to 900 construction jobs and nearly 500 permanent jobs, making it one of San Miguel's largest employers, he said.

Bald Mountain has donated more than 600,000 dollars to the community, with more to come, he added, with one third of that going to DIF, a government agency helping low-income families. It also will contribute one-tenth of one percent of all sales to a non-profit foundation to benefit the community.

The company will be the first developer required to contribute 10 percent of its construction costs for residences to a new fund that will finance homes for workers who can't afford one, said Mayor Jesus Correa. "This won't make me popular with developers," he quipped.

Correa said his goal is to make it possible for new generations to enjoy the San Miguel tradition of living "tranquilly, happily and safely in this beautiful city."

Bald Mountain inherited opposition to reported plans of the property's previous owner to cut down more than 200 old trees and to build high-density homes and condomiums on the grounds of the former Aristos Hotel next to the historic Instituto Allende, a short walk to the landmark central historic district.

Bald Mountain will plant some 250 trees on site or in other locations to replace those cut down, many of which were diseased or dying, Writer said. The company also has committed about 240,000 dollars in cash and services to the municipal ecology department to improve Parque Cloutier and has contributed services worth 430,000 dollars for the creation of the fountain and glorieta and other work at the intersection of Calles Cardo and Aldama, adjacent to its property.

During construction, the company said, it will control dust and prevent storm water pollution and donate excavated soil to the municipality for improvement of public places.

Answering another concern, the only construction entrance will be off Calle Cardo, with no construction traffic on the parallel Paseo de Parque, a mostly-residential street leading to the city's largest park, Parque Juarez.

Ricardo Vidargas, president of "Va Por San Miguel," a development and environmental watchdog group, said at the groundbreaking that "we're going to keep an eye on what they are doing and make sure they live up to their promises." Vidargas lives next to the project.

Bald Mountain's goal is to create a resort and residential community that complements the colonial architecture and artisan tradition of San Miguel, Writer said.

Rosewood Hotels and Resorts of Dallas will operate the resort and residences. The resort, scheduled to open in the fall of 2010, will include 63 guest rooms and suites, casual and fine dining restaurants, a rooftop lounge and tapas bar and a wine and tequila cellar, as well as swimming pools, a spa and fitness center, meeting rooms, event facilities, and public space for rotating art exhibits.

The residences, now on sale, will range from 1,800-square-foot casitas to 8,000 square-foot villas. Initial prices are from 850,000 dollars to just under three million. More than 500 people already have expressed interest, said Harold Shand, director of sales for Playground, the sales agents, with about 70 percent coming from the U.S. and 30 percent from mainly Mexico City and Monterrey.

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TOP 10 SAN MIGUEL REAL ESTATE TIPS by Richard McClarty (05/13/08)

TOP 10 SAN MIGUEL REAL ESTATE TIPS

1. You can take title directly to property in San Miguel.

Foreigners can buy property directly in Mexico's interior. The Mexican Constitution of 1917 designated the area within 100 kilometers (62 miles) of Mexico's borders and within 50 kilometers (31 miles) of the coastline as off limits to direct real estate ownership by foreigners. For many years this area was known as the Prohibited Zone. Because of recent beneficial legislation the area is now referred to as the Restricted Zone.

2. There is no MLS (multiple listing service) in San Miguel.

Despite what some agencies might lead you to believe there is no MLS in San Miguel. If an agency tells you they are a member of MLS you are starting your business relationship based on a myth and you may want to keep looking. Listed properties are either exclusive to one agency or listed with multiple agencies, known here as an ďż˝Open Listingďż˝. Select Real Estate pioneered the exclusive listing in SMA and our combination of exclusive and open listings means we can show you more homes than any agency in town. Many agencies will just show you ďż˝theirďż˝ listings Select can show you everything you want to see.

3. Most prices for real estate you will see are in US dollars.

Advertised prices are normally in USD and most transactions are closed using US dollars.

4. Mexico has no formal licensing of real estate agents.

Though foreigners need permission from the Mexican government to work in real estate, no licensing exists. For this reason, caution is advised in selecting an agent. Make sure you are comfortable with the ethics and the business experience of any agent before selecting one. San Miguel has an abundance of ďż˝street realtorsďż˝ i.e. taxi drivers, waiters, etc. that are not affiliated with any real estate office, have no actual experience, but are more than happy to try to sell you property. All Select agents have a minimum of a college degree and years of business experience. In fact, most Select agents have an MBA or PHD.

5. Mortgages in Mexico are rare.

While mortgages in Mexico do exist, they are rare. The upfront costs and interest rates are much higher than the US and for the most part American and Canadians will find the costs objectionable. In four years, Select has sold as many or more houses that anyone in San Miguel and have had only one Buyer obtain a traditional mortgage. Occasionally Seller financing with a substantial downpayment is an option, but most deals here are done all cash.

6. Property measurements are most often in meters.

As a guide, 1 acre equals 4046.86 square meters. One square meter equals 10.7639 square feet.

7. A Notario (notary) is needed to close any sale.

A Notary is needed to close any sale. In Mexico, a Notary Public is a quasi-governmental official who reviews all documents of importance with respect to the sale of real estate. A Notary Public in the United States typically has minimal training and responsibility. In the U.S.A, a notary typically attests to the fact that a person has signed a document.
The training, function and responsibility of Notary Public in Mexico is completely different. In Mexico, a Notary Public is appointed by the governor of a Mexican state for life. In order to seek appointment, the person must be a Mexico licensed attorney. This involves attending law school in Mexico, obtaining a law degree, passing an exam and being admitted to the bar in Mexico. To hope for appointment, the prospective Notary Public must then work as an apprentice for several additional years with a Notary Public.

8. Expect to pay approximately 2% of the sales price in closing costs.

Traditionally in Mexico, the Seller pays the real estate commission and the Buyer pays the closing costs. While Notarios charge varying rates, you should plan on approximately 2% of the purchase price to cover the expenses related to closing.

9. Building is an option under certain circumstances.

Many clients are interested in having a custom home built in San Miguel. Select can assist you in that process and put you in touch with reputable builders. However, we strongly recommend that clients wishing to build plan on being in San Miguel during the building process to monitor progress, quality and specifications. The ability to speak Spanish is also very helpful in building your home. There are also new companies that will act as your intermediary while building if you will not be in San Miguel. We can assist you in identifying those companies as well.

10. Use the internet wisely.

Most real estate companies in SMA have websites that can be very valuable in your home search. However, many of these sites are not updated regularly and may feature homes and home prices from many moons ago, some several years. Also, many of the sites feature homes that have already been sold. These ďż˝dealsďż˝ are meant to lure you in to a call. Upon arriving for your appointment will you be informed that home is no longer available, but that they have many more options (more expensive and less desirable) to show you. Select updates our website daily and our site is the only in SMA featuring 360 virtual tours to give you a real flavor of the homes you might like and eliminate those you do not.

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Select Real Estate Blog by Richard McClarty (05/13/08)

Select Real Estate announces new blog for their customers

In our ongoing effort to help our customers find the real estate properties they are looking for and to keep them informed on new trends in the industry, we have installed a blog system that will be updated on a regular basis with current information pertaining to the real estate market in San Miguel De Allende Mexico.

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