The Modern US Mexico Land Grab, What It Means To All

A hundred and sixty years ago, the U.S. took over almost a third of Mexico, paying $15 million for territories that became California, Nevada, Utah, Arizona and Texas. Today, U.S. citizens are moving into Mexico again, but this time they’re paying $1 million for oceanfront homes or $300,000 for condos in amenity-rich resorts.

The 19th century land grab was resented by Mexican nationals for obvious reasons. As for the current invasion; “We are loving it!” say a number of Mexican high-end developers who are putting up American-style residential communities along the coastal lines in Mexico.

Robb Gordon, a professional photographer from Malibu, Calif., bought a villa last spring in the Costa Baja Resort & Marina near La Paz. “My wife and I can get there once a month because La Paz is only a two-hour flight from Los Angeles,” he says. “The water is 80 degrees, and it’s more beautiful and clear than the Caribbean. We love Mexican culture and we feel safer there than anywhere else in L.A.”

One reason for Mexico’s popularity is, of course, the price. Additionally, the political climate is stabilizing. The recent election of U.S. Harvard educated Felipe Calderon as President bodes well for cross-border relations, and of course, a strong Mexican economy.

Buying property in Mexico is getting easier and safer. Although the purchase of property along the Mexican coast is still a complicated process, American title insurance companies, including First American Title Corp., Stewart Title Insurance Co. and the Chicago Title Co. are now providing documentation of ownership and acting as escrow agents while residences are being built.

Just a few years ago, the only way to buy housing in Mexico was to pay cash. Today, major U.S. lenders are writing mortgages on Mexican property.  New and innovative programs provided by more aggressive lending standards such as No Condo Regime Requirement and Pre-Sale Financing (with 40% finished product) are opening more opportunities for condo purchasing through mortgage loans and permitting developers to capitalize themselves in the project development process.

Finally, South-of-the-border resort communities feature marinas, fitness centers, spas and golf courses designed by familiar names like Jack Nicklaus, Gary Player and Greg Norman, just like those closer to home. (Julie Bennett, Wall Street Journal)

What lies ahead is a continuous land grab by Americans and Canadians, which in turn will be Europeans and other foreigners once the banking industry sees fit to open their financing options to those groups.

Enrique (Henry) Saldana
Tel: (984) 116-8528
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