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Tuesday
Apr282015

AcaCondos April 2015 Newsletter

Hello from Acapulco Bay!

As we are now winding down the peak tourist season we now had a chance to catch our breath and give you an update on all the things happening.

First, there was wonderful news that just came out this week.

Fideicomisso/Bank Trust

The lower house of Mexico's congress voted Tuesday to loosen longstanding restrictions on foreigners buying property along the coast and the nation's borders.  Many of you will know that for decades there has been a law that foreigners could not legally own property near the coast or the borders.

Instead, foreigners could get a Bank Trust (called a fideicomisso) by which the bank is the legal owner of the property but you lease it for 100 years.  This also roles over every year so you perpetually have a lease on the property for 100 years.

The fideicomisso, in our minds, was just a way for the government and banks to get extra money (about $500/year for the fideicomisso).  The fideicomisso was also a bit of a nuisance as it just added an extra step to the process of purchasing property in Mexico and added an extra 4-8 weeks to the purchase process.

While the legislation removing the fideicomisso hasn’t fully passed yet we are happy to see that this is a topic of discussion as any way to make it easier and/or cheaper to buy property in Mexico will greatly increase the amount of potential buyers and create a more robust market.

If they do remove the fideicomisso requirement I would expect property prices to rise significantly in the coming years as more people who were put off by not legally owning their property come into the market.

Mexico Tourism & Retirement Destination

The mainstream media in the US and other Western countries has been trying for decades to make Mexico look as dangerous as possible.

But it appears that many people are starting to see beyond that ruse as Mexican tourism rises and being the largest retirement destination for Americans, by far, shows.

Recently, the Huffington Post wrote a great article talking about these issues, saying, “Mexico is one of the biggest and most diverse countries around. There really is something for everyone ... lovely, temperate-climate mountain towns, a vibrant Renaissance-like capital city, rainforests and farmlands and yes, those absolutely gorgeous beaches.  Today's Mexico is not only amazingly diverse and exotic, it's also far safer than the media would have you believe. And we won't belabor this point because there is simply no way to convince the naysayers.”

They didn’t include Acapulco on their list of great retirement destinations but Acapulco has been a top retirement destination for decades and while it has lessened over time it only means that property prices are incredibly cheap compared to many other destinations and certainly an absolute bargain compared to most places in the US.

As just one example, here is an 837 square foot, one bedroom, one bathroom condo in San Francisco available for only $929,000!

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A little too small for your needs?  You can get this 1,050 square foot shack in Buena Vista, California, for only $1.1 million!

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What do similar condos or houses cost in Acapulco?

For $70,000 you can have an all new refurnished studio with kitchenette condo on the beach with a pretty nice view.

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A bit too small for your needs?  How about a 6 bedroom villa in one of the most exclusive areas in Acapulco?  It costs just a bit more than that shack in California, at $1.3 million, but I think you’d agree it is worth spending a bit extra.

It has a pretty nice view from the master bedroom and jacuzzi area.

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A nice reading area.

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A comfortable bar, with bartender, near the pool with an okay view.

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And its own service staff, which cost almost nothing, to attend to whatever you need.

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To be fair, though, even though this villa can be bought for $1.3 million due to the seller needing to sell, it is probably worth $2-3 million.  But it just shows you the opportunities in Acapulco to live like a king whereas, for about the same amount of money in places like California, you live in a shack by the pawn shop.

If you want to see more about this incredible villa (which is actually in the same neighborhood I live in) you can check it out here: http://www.acacondos.com/immaculatevilla

CONDOS/VILLAS/LAND

Acapulco is really beginning to see a renaissance now that most of the drug related problems that occurred in 2011 have long since past (and really weren’t anywhere near as bad as most people thought anyway).

As such, and recognizing that demand is rising, we are expanding our business beyond just condos into villas and even land.

We have not had time to put all the properties available on our upcoming new site but if you want to send us an email to sales@acacondos.com and let us know what you are looking for we are sure we can find you not only what you are looking for but at an amazing price.

Until next month, bye for now from paradise!


Jeff Berwick