Land, Luxury, Leisure...Mexico

Would You Pay $70,000 for Your Vacation? Don't Laugh, Many Do

2007-05-01T11:34:00.000-05:00

Linda Landers and her husband, Jim, wanted to see the world but didn't have time to plan a complicated route hopping from one continent to another.

Then Linda learned about a $70,000 per person private jet trip that would allow the Arkansas couple to see nine countries in 23 days.

They booked immediately.

"It was such good value for what you got," Landers said, "even though it was a terribly expensive trip."

The Landers are members of an elite travel club that indulges in lavish vacations that go well beyond first class.

For those who can afford it, there are a growing number of options at the gilded top of the luxury travel market.

The Landers went on a trip, dubbed the Nine World Wonders, offered by tour company Abercrombie & Kent. It included stops at Easter Island, ruins in Cambodia, the lost city of Petra in Jordan and the pyramids of Egypt.

Linda works in home construction and interior design, and Jim is a doctor. She said that planning such a complicated trip would have taken a lot of time and research.

"We're both working so much. We didn't have time to fool with this," Landers said. We just wanted to get on the plane and relax."

Abercrombie & Kent took care of the couple's travel visas, hired guides, provided local currency at each stop and even arranged a private museum tour by the curator before the building opened to the general public.

"We didn't have to do a thing," Landers said. "It was like being the president of the United States for three and a half weeks."

Most Americans can't afford such a trip costing $140,000 per couple. That's more than three times the median household income, which stood at $46,242 in 2005, according to the U.S. census.

But those who can afford it are increasingly shelling out big bucks for grander vacations than those taken a generation ago.

A Growing Market

There is very little data on this market because it is so small, but what is out there shows the general luxury travel industry is growing at a steady clip.

On average, room rates for luxury hotels in the first three months of 2007 increased 7.2 percent to $292.51, while the overall hotel market went up 6.1 percent, according to Smith Travel Research, a hotel-benchmarking firm.

Luxury rooms were also occupied more often then regular rooms. The luxury segment increased occupancy by 2 percent, while the overall hotel occupancy rate stayed essentially flat, with a 0.3 percent increase.

"Luxury outperforms the general market," said Jan Freitag, a vice president with Smith Travel Research.

Even for Abercrombie & Kent, private jet trips are a very small part of the overall business. The company sells tours to about 20,000 people a year. Just 100 of those go for the private jet trips.
The company's first such trip was in 1989 and took travelers to seven world capitals, according to George Morgan-Grenville, president of Abercrombie & Kent's North American operations.

In the 1990s, the company ran private tours on the Concorde. After 9/11, there was not as much of an appetite for these trips, Morgan-Grenville said. But now the company is expanding the private jet trips again as the rich look for new and exotic adventures. Three were done this year, and six or seven are planned for next year.

Abercrombie & Kent's next private jet tour to South America will cost $73,750 per person. It sold out within three weeks of being announced.

"Nowadays, people want to be much more off the beaten track," Morgan-Grenville said, describing the trips. "The whole ethos of the baby boomer traveler, you can't cookie-cutter your services. Everybody wants something different."

That means that while there are 48 people on the tour, several small private side trips are built into the itinerary.

Morgan-Grenville said that his clients don't want to travel halfway around the world to go to a tourist restaurant.

"It's going to a little bistro that's tucked away down an alleyway that's not in a guidebook that doesn't have white-glove silver service," he said. "It might be a mom and pop little restaurant with four, five tables."

Morgan-Grenville explained that travelers today want to see more and more remote sites. But the farther outside populated areas they travel, the harder it is to find upscale amenities. In some places, Abercrombie & Kent has to fly in its own sheets and towels. Other times, creature comforts are sacrificed to lend a more "authentic air" to the experience.

"You can go and stay at a Four Seasons wherever you want. Today, it's not a novelty for people to do that. What is a novelty is having an incredible experience in an incredible location,"

Morgan-Grenville said. "The previous generation, they were very happy to be shown things. These guys, they don't want to see something. They want to participate in it."

The $30,000 Hotel Room

Other parts of the travel industry are also expanding their ultra-high-end products.
The Four Seasons hotel in New York has two presidential suites that cost $15,000 a night. The company won't provide detailed occupancy figures but says the suites are rented out more than half of the nights in the year.

For the past six years, the Four Seasons has been building a penthouse suite that will rent for $30,000 a night when it opens up this summer. The 4,300-square-foot room will have 24-foot floor-to-ceiling windows and cost $45 million to build, according to the hotel. Few details are being shared about the project, which will first be unveiled to the world in the pages of Architectural Digest.

Just a few blocks away, the Peninsula offers a two-bedroom Peninsula suite for $15,000 a night. If you've got a large, well-heeled group, a connecting suite can be added, bringing the nightly bill to $17,500.

If those rooms are booked, a rich guest can try the Mandarin Oriental across town, which offers a 2,640-square-foot presidential suite for $14,000 a night.

For those looking to escape the city, the Four Seasons Resort Punta Mita in Mexico offers a five-bedroom suite for $15,000 a night. The 9,150-square-foot suite offers its own entrance, a private gym and spa treatment area, home theater and pool.

"Entourage travel is a growing segment, not only among celebrities, which we certainly get our share of, but also among families and business groups," Christian Clerc, regional vice president and general manager for Four Seasons said in a statement. "Those typically traveling with an entourage seek privacy, luxury and the finest experiences the resort has to offer.

Representatives of the New York hotels said the suites were most often booked by families.

Luxury on the Rails and Seas

For those who want to travel and stay on the move while catching some sleep, there are also plenty of top-end options.

The Venice Simplon Orient Express has long been known for its luxurious train travel.

The company offers several routes today, with the longest being the famous Paris-Budapest-Bucharest-Istanbul leg. The five-night trip costs $7,690 one way.

While some seek high-end travel as a way to escape into their own private world, the Orient Express lets people promenade in their best.

"The historic decor of the train and its atmosphere means travelers can never overdress on the Orient Express," the company said. "Evening wear for gentlemen is a business suit or black tie, with formal dinner dresses for women."

Those looking for even more flexibility can charter their own yacht. Some of the larger vessels can be rented for up to $180,000 a week. That does not include food, liquor, docking fees or fuel, which usually add an extra 25 to 30 percent on top of the rental fee. The crew will also expect a tip of 15 percent to 20 percent. Some of the super-rich have shelled out a shocking $500,000 a week for a berth on these super yachts.

Kenny Wooton, executive editor of Showboats International, a magazine covering yachts 100 feet long and larger, called these yachts "the best-kept secret in travel."

These boats typically can pamper six to 12 people and include large bedrooms, living rooms, dining rooms and rooftop hot tubs.

Take Kaleen, a 130-foot yacht that charters for $80,000 a week from the International Yacht Collection in Fort Lauderdale, Fla. The main stateroom features a California king bed, walk-in closet and the bathroom has a whirlpool.

Remember, this is a boat.

"If you wake up at 4 o'clock in the morning and you want a sardine omelet and they don't have sardines onboard, they'll send a diver out to get sardines," Wooton said.

The other advantage: "If you don't like the beach, restaurants, the town, you move," Wooton said.

So, where is the luxury travel market heading next?

Morgan-Grenville said that travelers will seek more and more exotic places further off the beaten track.

But, he added, the next big market will be travel to outer space, most likely beginning with suborbital flights.

"Part of travel is to include what is generally termed as bragging rights," he said. "You have to remember that only 400 people have been into space."

IRS US TAX RULES YOU AND YOUR CLIENTS DO NOT KNOW ABOUT FIDEICOMISOS AND MEXICAN CORPORATIONS

2007-04-30T15:14:00.000-05:00

IGNORING U.S. INCOME TAX RULES ON OWNERSHIP OF MEXICAN PROPERTY THROUGH FIDEICOMISOS OR MEXICAN CORPORATIONS CAN COST THOUSANDS OF DOLLARS IN PENALTIES!

(Your clients probably do not know about this rule, but should)

There are three serious potential IRS tax problems which may cause you or your American real estate and business investors in Mexico to pay tens of thousands of dollars in penalties. Each of these problems areas is briefly outlined below and be immediately communicated to your clients or and future buyers and sellers..

Foreign Corporations: Though the rules are complex, generally if a US person (Citizen or permanent resident) owns ten percent or more of a Mexican corporation, they are required to filed Form 5471 with their personal U.S.

tax return each year. Though this form usually has no tax effect, failure to file this form on a timely basis results in a $10,000 penalty for failure this return in time or never filing the return. This penalty may only be abated for reasonable cause which is not clearly defined. There is another form which must be filed when assets are transferred to a foreign corporation.

It is also important to chose the proper type of Mexican corporation to own your real estate of Mexican business. The type of Mexican corporation most commonly used can result in double taxation of all income on your US tax return and the inability to pay the lower US capital gains tax and take foreign tax credits for the taxes paid in Mexico when the real property owned by the corporation is sold. If the correct Mexican entity is utilized using the U.S. "check the box" regulations it is possible to take advantage of the corporations losses on your U.S. individual tax return, and take foreign tax credits on Mexican taxes paid by the corporation.

Fideicomisos (Foreign Trust): If you own your Mexican real estate through a fideicomiso (as required by Mexican law) and are a U.S. citizen you are required to file Form 3520 and 3520A each year. If you fail to file form 3520 in a timely manner there is a late filing penalty of 35% of the value of the assets in the trust. If you fail to file 3520A in a timely manner
there is a penalty of 5% of the value of the assets in trust.

Form 3520A is is due on March 15th following the end of each calendar year.
It can be extended, but the extension request must be filed by the original
due date. Form 3520 is attached to your personal tax return.

Foreign Bank and Financial Accounts: Form TDF 90.22.1 must be filed
separately from your tax return with the U.S. Treasury for each year you have more than $10,000 in one or more foreign bank accounts, stock accounts or other financial accounts. On this form you report the name of the financial institution, account number, co-owners, and range of balances held in the account during the calendar year. This return is due June 30th, following the end of the calendar year. It is not filed with your tax return severe civil and criminal penalties can be assessed if you fail to file this form.

Upscale and undiscovered on Mexico's Pacific coast

2007-04-24T12:03:00.000-05:00

By MOLLY GLENTZER
Copyright 2007 Houston Chronicle

PUNTA MITA, MEXICO — It's hard to say exactly when Punta Mita charmed me in spite of myself.

Maybe when I took that first sunrise walk on an empty, pristine white beach. I picked up a free souvenir: a speckled blue spiny lobster shell. I climbed to the top of a huge rock and did a few sun salutations. There were rose petals blowing around, the remains of a romantic dinner the Four Seasons Resort had staged for some of its guests the night before.

Or maybe I was hooked that afternoon on another quiet beach, one with harder-packed, also pristine sand that was easier to walk on, when I spied a great blue heron perched on a rock out in the surf.

Or maybe it was the moment Fernando handed me a beer in a tall plastic cup.

I sat with friends on the prow of a sailboat for hire. We felt like models in a Nautica ad — hair blowing, soaking up the spray and the sun and letting our psyches rock with the boat as it crested big waves. And Fernando, a tan, thin, good-looking teenager with bleached blond hair, was chatting me up in broken English. I was thinking that he probably picks up a lot of business out here for later, after the boat docks.

You may like to play golf, or you may love lounging beside a pool in a tropical environment. But, ultimately, it's the lure of its wild water that makes Punta Mita special.

About 45 minutes north of Puerto Vallarta in the state of Nayarit, it occupies the end of a foot-shaped peninsula cradling Banderas Bay, with its sole (and soul) massaged by the Pacific. The 9 miles of shoreline here are naturally "scalloped'' into coves and inlets, giving the beaches an intimate scale.

Scrubbed and designed for U.S. vacationers, the 1,500-acre development is a project of Dine, the real estate subsidiary of the Mexican conglomerate DESC. (It's not to be confused with the more accessible nearby town of Punta de Mita.)

Punta Mita is relatively undiscovered for a good reason: Imposing gates monitor access to each of the dozen or so resort communities within the main entry.

The hum of construction is constant. New villas and condos — which account for most of the lodging choices — are coming on line fast. While this building boom may not please everyone, the developers do not plan to line the beaches with hotels.

The still-growing Four Seasons Resort Punta Mita is the only viable hotel choice for now. Open about six years, it's a jewel in the chain, with four gourmet restaurants, three beautiful pool complexes, a small spa and a Jack Nicklaus-designed golf course.

It's almost a shame you have to retire to an indoor room at night, given the stylish poolside cabanas that surround the adults-only pool area. They're outfitted with plasma-screen TVs, state-of-the-art sound systems, wireless Internet service and plush furniture. Champagne and caviar are served at the bars outside early each evening.

You know a place has arrived when the fashion world moves in. Punta Mita will get an added shot of glamour in June when Michelle Smith, the designer behind the upscale Milly line, unveils her Punta Mita Collection of chic dresses, swimwear, beach bags and sportswear at the Four Seasons.

A St. Regis resort with another Nicklaus-designed course is due to open in December — although when I visited in February, getting a beat on the layout required some imagination. The site consisted of strategically piled mounds of dirt, with a couple of concrete-block-construction offices.

I stayed at Las Palmas de Punta Mita, in one of 28 just-completed luxury villas along the Four Seasons' golf course. I enjoyed the indoor-outdoor bath, the sunny entry atrium and the gourmet kitchen but gravitated to the terrace and its plunge pool. It overlooked the fourth fairway, with a view of the Pacific and the golf course's famous ``Tail of the Whale'' green, which is perched dramatically on a small, rocky island. (During high tide, players access it by amphibious vehicle.)

Punta Mita Residential Concierge services can stock the fridge or send in a personal chef or a masseuse. Cheerful maids seemed to hover — each day, they sculpted the plush towels into animal shapes and laid them out with fresh bougainvillea blossoms.If you'd rather venture out to eat, several Residents Beach Clubs on the peninsula offer excellent waterfront meals, including delectable shrimp quesadillas, huge hamburgers and drinks.

You wouldn't know you were in Mexico if the friendly people didn't speak English with charming accents.

The exception is the small village where, according to our guides, Dine gave land to squatters who were living on the government-owned peninsula when development began. Aside from a few scruffy beachfront bars and restaurants, there's not much else for visitors there.

But natural wonders aren't hard to find, and outdoor activities are plentiful.

Walks along the beach turned up plentiful birds, the tracks of sand crabs and prints left by some kind of large cat — perhaps an ocelot. We also watched as a washed-up spotted boxfish became dinner for a black vulture. One night, a small fox darted across the road.

On the sailboat ride toward the nearby Marietas Islands, a sanctuary for marine life and birds that draws scuba divers and snorkelers, time-warp music blared over the boat's speakers: The Beach Boys' Good Vibrations, Simon and Garfunkel's Sounds of Silence. We were looking for humpback whales, which visit in the winter.

It might have been the music's weird influence, but I became giddy when we spotted humpbacks breaching in the distance — even though from our vantage point, without binoculars, I could see only waterspouts and poorly outlined tails.

Surfers have several good spots to catch the waves around Punta Mita. Sea kayaking, swimming with the dolphins, jeep safaris and canopy tours along zip lines in the Sierra Madre also beckon. There are plenty of things to keep vacationers busy for a week.

Or not. If relaxation is your goal, you can lose track of time here, blissfully, in a weekend.

Behold the Marietas Islands' blue-footed booby

2007-04-24T12:00:00.000-05:00

By PEGGY GRODINSKY
Copyright 2007 Houston Chronicle

The Marieta Islands, a craggy, wild, grassswept national park off Punta Mita on Mexico's Pacific coast, are home to another of the area's famous natural residents: the blue-footed booby (Sula neboxuii).

The seabirds' shockingly bright blue feet are thought to attract the opposite sex. "They dive from sometimes rather large heights into the water. It's very cool," said Dave Mehlman, director of the Nature Conservancy's Migratory Bird Program. "They turn into living feather arrows as they plunge into the water."

Many boat tours depart for the islands from Punta Mita; the trip takes 30 minutes or less. Tourists would be hard-pressed to walk through the village without being offered a boat trip.

Spend day in Sayulita for a different shopping experience

2007-04-24T11:52:00.000-05:00

Spend day in Sayulita for a different shopping experience

By MOLLY GLENTZER
Copyright 2007 Houston Chronicle

SAYULITA, MEXICO — If you have a shopping jones and don't want to leave Punta Mita, prepare to spend big bucks.

There are upscale shops for clothing, gifts, jewelry and art at the Four Seasons Resort. But for something a little earthier, take a day or half-day trip to Sayulita, a small village about 30 minutes to the south.

Here, white linen resort wear gives way to the black cotton and tattoos of a global surf crowd and leathery ex-pats. Many of these folks migrate to other climates in the summer, when it gets hot and humid. One jewelry store clerk told me she spends her summers in Thailand. Tough life.

Among the cool shops to check out: Pancha Mama is a beautifully styled shop for hip clothes, jewelry and nice stoneware. At Galería la Hamaca and Cólores, indigenous arts and crafts are the draw, and a portion of sales benefits community projects. Try Rústica and Joyería Sol for locally designed jewelry.

Colorfully garbed Huichol Indians set up shop around the small zócalo for the tourist trade, proffering pottery pieces adorned with intricate beadwork. Other locals drive through the streets, selling fresh shrimp and seafood from the backs of pickups.

Along the back streets at the far end of the beach, you'll find entrepreneurial artisans who make fine jewelry and other goods.

Surfboards are lined up along the beach, a happening spot for 20-somethings.

There are casual restaurants here, too, with tables in the sand. You won't find a Starbucks in Sayulita — yet — but you can satisfy that frappuccino craving with a serious shake from Choco Banana, beside the zócalo.

Café des Artistes can be a gastronomic adventure

2007-04-24T11:43:00.000-05:00

By MOLLY GLENTZER
Copyright 2007 Houston Chronicle

PUERTO VALLARTA, MEXICO — Even from the back seat of a van full of sunburned travel writers, Puerto Vallarta entices at night.

There's a carnivallike atmosphere along the famous Malecon promenade near the center of town. Turn inland a few blocks, and the quieter, narrow streets yield boutiques, art galleries and eateries that beg to be explored.

I felt like I was finally in "real" Mexico when we passed the ornate Our Lady of Guadalupe Cathedral. The doors were wide open, and dim golden light spilled onto the sidewalk along with voices from the small congregation inside, participating in a Mass.

Then came the best surprise of all — well worth an hour's ride from Punta Mita, indeed worth a trip from Houston: a religious experience of the culinary kind at Thierry Blouet's stylish Café des Artistes compound, carved out of a century-old home on the hill above the Malecon.

Comprising several "concepts" that have evolved over 16 years, Café des Artistes is a gastronomic adventure zone. The friendly, French-born Blouet — one of Mexico's top toques — delights in exotic ingredients.

In the main restaurant, Café des Artistes Gourmet Bistro, you're likely to find roasted sea bass consorting with spinach mousse and an eggplant marmalade; giant grilled scallops cavorting with a melt-in-your-mouth huitlacoche and potato Parmentier. Or Kobe beef with a pasilla chile sauce sharing a plate with a potato and bacon terrine, fried goat cheese and black beans. The cocoa and spice-spiked roasted piglet with a "hibiscus confit turnip" is another winner.

I could go on, but I'm getting hungry. Entree prices range from about 160 Mexican pesos ($14.50 U.S.) for a "Grand Vegetable Symphony" to 495 pesos ($45) for a 14-ounce rib-eye steak. A three-course, prix-fixe menu costs about $34, plus about $40 for house wine.

We were served (and served, and served) a tasting menu that would take pages to explain, each with its own wine — and I lost track of it all after the mirrored tray of a dozen or so deserts arrived and Blouet cheerfully brought out his best liqueur.

Although Blouet's meticulously-styled dishes clearly mark him as the "artiste" of the house, contemporary sculpture plays out the theme in several inviting environments. (You'll have to visit more than once to enjoy them all.) We ate under the stars in the lush, multilevel tropical garden. Another room is all candlelight, crystals and white walls. The Constantini Wine Bar, where 350 bottles are available by the glass, has a cool modern vibe.

Then there's Thierry Blouet Cocina de Autor, a stunning upstairs room that feels like the inside of a terrarium. Here, the chef and his army of sous-chefs whip up three-, four- and five-course tasting menus nightly that range in price from about $53 to $68 U.S. To finish off the evening, you can choose your own music in an intimate new Cigar and Cognac lounge.

Newcomers both friends and foes of Mexico's sea turtles

2007-04-24T11:36:00.000-05:00

By PEGGY GRODINSKY
Copyright 2007 Houston Chronicle

PUERTO VALLARTA, Mexico — You may not have flippers or a shell, but if you are among the growing number of tourists and expatriates captivated by the beautiful Pacific coastline north of Puerto Vallarta, you do have something in common with sea turtles: a taste for pristine, undeveloped, remote beaches.

Unfortunately, your needs and theirs may collide.

Three species of turtle — the Olive Ridley, Hawksbill and the critically endangered Leatherback — lay their eggs on the contiguous beaches of Litibu, Malinal, Punta Negra and Careyeros, a two-mile stretch of rapidly developing white beach and rock outcrops in the Mexican state of Nayarit.

Two years ago, expatriates living along those beaches began meeting over potlucks to talk about how to protect the natural turtle nursery. They've recently formalized a partnership with the nonprofit Grupo Ecologico Manos Unidas por Litibu A.C (Litibu Ecology Group). With the Mexican government's okay, expertise from biologists and backing from the expatriates, the group operates a turtle corral where the eggs can safely hatch.

"We want to establish the (nonprofit) before the hotels are developed, so that we can have some impact," said Susan Drexler-Price, an organizer of the grassroots homeowners group and former history teacher from Oakland, Calif. (Now, she runs the Pie in the Sky bakeries in nearby Bucerias and Puerto Vallarta.)

Sea turtles face a host of threats around the world. They get tangled up in commercial fishing lines and nets. Pollution makes them sick, literally. Some species are killed for meat, others for their shells.

In Nayarit, poachers steal the eggs for their alleged aphrodisiac effects, gulping them raw with lime and chili. Poached eggs can fetch as much as 10 pesos apiece, says Gilberto Galindo Castro, president of the Litibu Ecology Group and a biologist. At that price, a single nest containing about 100 eggs nets a poacher 1,000 pesos (about $90 U.S.). Compare that, he says, to Mexico's minimum daily wage of 45 pesos.

The Mexican government takes poaching seriously, he continued, assessing steep fines or jail time — "it's a worse offense than drugs" — but it lacks the manpower to prevent the crime in the first place or prosecute offenders in the second.

Rapid development endangers the turtles, too. Tourists, and locals for that matter, ride ATVs up and down the beach, potentially crushing the eggs. (Drexler-Price once stopped some riders to try to educate them. "So who are you?" one asked her. "The turtle bitch?" She jokes that she's considered making up T-shirts with the phrase.) Also, lights from mushrooming hotels and homes along the beaches confuse the new hatchlings, which make their way to the ocean by following moonbeams reflecting off the water. The longer it takes them to reach the ocean, the slimmer their chances of ever getting there.

During egg-laying season (June-December), volunteers from the Litibu Ecology Group, many of them university students, carefully move the eggs to the corral, meticulously recording numbers and nest locations. When the eggs hatch, which happens en masse, the newborns scurry across the beach to the sea. Volunteer Jamie Perkins says only one in 1,000 will survive to adulthood. Amazingly, eight to 10 years later, the female turtles return to their natal beach to lay their own eggs.

Efforts in Mexico to protect sea turtles are a patchwork of official and unofficial endeavors, according to Sea Turtle, Inc., a nonprofit based in South Padre Island. In the 1960s, Galindo Castro remembers "mucho, mucho" turtles on this two-mile stretch. (Careyeros, translates as "turtle hunter beach," indicating the turtles have come here, and men have killed them, for quite some time).

Then the government said it was okay to harvest them, and their numbers plummeted. When the government changed its mind and changed its policy beginning in 1990, Galindo Castro says the numbers went up again. Since that about-face, SEMARNAT (Mexico's equivalent of our Environmental Protection Agency) has operated a corral in Nuevo Vallarta, about 10 miles from Litibu, last year gathering eggs from some 4,000 turtle nests to better the hatchlings' chances for survival. His own group hopes to relocate eggs from 200 sea turtle nests in the coming season.

There are seven sea turtle species in the world. All are endangered, some, including the leatherback, critically. Why bother to save them?

"Biologists could tell you we don't know exactly what could happen ... if they become extinct, probably something dramatic," Jeff George of Sea Turtle Inc., said during a telephone interview. "We can't tell you exactly how (things) would fall apart, but we know enough about their diet to theorize."

He gave a "for instance." Some sea turtle species eat jellyfish like they are going out of style. If the turtles weren't around to eat the jellyfish, the jellyfish population would explode. The hungry jellyfish hordes, in turn, would gorge on zooplankton. That's bad, very bad, as plankton is vital for healthy seas. Or suppose the sea turtle species that George described as the "lawnmower of the ocean" went extinct. Its dietary habits ensure healthy seagrasses, where it just so happens fish lay eggs and shrimp spawn. Should those turtles disappear, it doesn't look so good for fish or shrimp, either. Or for us.

Sitting at a beachside restaurant not far from the nesting grounds she dreams of protecting, nibbling on chips and sipping a cool drink, Drexler-Price, a layperson, sums up. "Basically," she said, "it's our future."

Mexican fishing village retains rugged charm

2007-04-16T11:17:00.000-05:00

10:00 PM
PDT on Saturday, April 14, 2007
By JASON BLEVINS
The Denver Post

SAYULITA, MEXICO - Legend holds that those who drink the water in this whimsical fishing-village-turned-surf-hideaway will fall prey to the region's siren song, assuring not only several return trips but a lifetime spent snaring others under Sayulita's salty spell.

Wedged between dense jungle and the Pacific Ocean, this once-humble village has become the sandy metropolis of Nayarit, the coastal state north of bustling Puerto Vallarta.

That's not to say that 3,000-resident Sayulita is anything like its sprawling, resort-rich neighbor to the south. It's just that Sayulita's four square blocks of beachfront fun ranks as the largest village among Nayarit's bounty of not-quite-remote but lonely oceanfront hamlets.

Villa Amor overlooks the bay at Sayulita, Mexico. The village's hotels are cozy and affordable.

Sayulita's fishing economy slowly began to give way to tourism in the mid-1960s.

In the 1970s the government, as part of a nationwide urbanization effort, erected a town square in Sayulita and flanked it with new buildings. Still, the village spent three decades off the beaten path of barefoot tourists, happily hiding in the shadows of the big-box hotels emerging in Puerto Vallarta.

The quiet villages of Nayarit have always been popular with Mexican vacationers from Guadalajara and Mexico City, but among others, word of the region's treasures rarely trickled beyond the secretive sect of vagabond surfers.

But, as with every hidden paradise, word spread. Outside Magazine in the late '90s whispered to its half-million subscribers that Sayulita was top-shelf for anyone seeking a southern tropical getaway sans doorman.

Bulldozers started forging farther up the jungled ridges above the surf, clearing roads for palatial homes for outsiders. Cobblestone avenues in Nayarit's Sayulita, Punta Mita, San Francisco and even Lo de Marcos now host plenty of real estate offices.

Despite its "discovery," Sayulita remains rootsy with delicious food, comfy and affordable hotels, lodges and homes, and a mostly happy-to-see-you local population.

It remains the more rough-hewn, adventuresome alternative to Puerto Vallarta -- a perfect place for the folks more apt to name the scurrying sand crabs living in the bathroom and feed the geckos on the porch.

Golf growth moves beyond America and Britain

2007-04-13T11:16:00.000-05:00

From China to Mexico to Ukraine to Dubai, most fairways still are part of residential projects

By: Kevin Brass

Published: April 12, 2007

Now that Britain is saturated with fairways, greens and bunkers, David Hemstock, a golf course architect, travels the world looking for work.

"In the U.K. we're golfed up," said Hemstock, who has run his own design firm, David Hemstock Associates of Derbyshire, England, for 16 years. Once focused on business within the country, he now designs courses in China, India, Romania and even Ukraine, where he is helping to build that country's first courses.

"Odessa could be the new Bulgaria," Hemstock said, referring to the southwest Ukraine's potential as a sunny second-home market.

The continuing growth of luxury residential and resort development around the world is fueling a high-stakes competition in the traditionally staid community of golf course designers.

Architects are increasingly trying to top each other with elaborate layouts and spectacular water elements to woo homebuyers to international projects.

Today, three-quarters of all the golf courses planned or under construction are outside the United States, Britain and other traditional golf centers, according to industry estimates. With 17,000 courses already open in the United States, for example, the number of new 18-hole courses opening there plummeted to 119 in 2006 from a peak of 398 in 2000, according to the National Golf Foundation.

Of the courses being developed around the world, 70 percent are tied to real estate developments, a much larger proportion than ever before, according to Keith Carter, managing editor of Golf Inc., a U.S.-based industry magazine. And a well-known course architect can add more than 20 percent to the value of a development's houses and jump-start a project, industry executives say.

"The name gives credibility to a development," said Alan Mishkin, president of U.S.-based Abigail Properties, which is building Las Palomas, a residential and golf project in Puerto Peñasco, Mexico.

"Golf courses are not money makers," he said. "They're the sizzle on the steak" of residential developments.

The focus on houses - and the resulting demand for boldfaced names - has prompted a flood of pro golfers into the design business, led by stars like Greg Norman, Nick Faldo and Gary Player. In December the sport's biggest name, Tiger Woods, formally entered the competition with the announcement of his first signature course - part of a $7.5 billion residential and entertainment complex in Dubai.

"If the goal is to sell real estate, the smaller guys are probably not even going to have a shot" when it comes to selecting who will design a development's course, Carter said.

But some developers say they do not really want or need to pay top golfers for their projects, particularly because some stars have little involvement in the work other than showing up at an opening ceremony.

"I don't necessarily buy into it as a developer or as a golfer," said Brian Dobbin, chief executive officer of Newfound Property International, a London-based company that is developing projects in Canada and the Caribbean. "I want to go to a course because it is designed well."

In addition, fees for top designers are skyrocketing, prompting many developers to think twice before signing on with a big name.

The legendary golfer Jack Nicklaus, one of the granddaddies of the design business with more than 300 courses to his name, usually charges a minimum of $2.5 million, plus a cut of residential sales, for his signature on a course, according to Paul Stringer, senior vice president of business development for Nicklaus Design, which is based in Florida. (Architects's pay typically is 6 to 12 percent of the overall budget for the course, depending on the design services that are to be provided.)

And, following the market, international courses now represent 75 percent of the business for Nicklaus Design, up from 25 percent four years ago, Stringer said. The firm has 118 courses either under construction or in the planning stages, including 14 courses in Mexico and another 12 in the Caribbean. In addition to the Middle East and South Africa, Asia has also developed into a primary focus for the company, with new courses under construction in Vietnam and Cambodia.

"In the '80s we did a lot of work in Japan, and then that slowed down," Stringer said. "Now Korea is in the role of the new Japan."

The number of courses in Eastern Europe alone has grown to 134 in 2006 from fewer than 10 in 1992, according to a study by KPMG Advisory, a consulting company based in Bucharest. And as in the rest of the world, the majority of them are tied to residential developments.

To encourage growth in Eastern Europe and Russia, golf course designers are routinely stepping outside their traditional roles to join the development team early in the process, and in some cases they are even helping with financing.

"The competition is so fierce, you have to bring extra value," said Quentin Lutz, vice president for global business development of Arthur Hills/Steve Forrest & Associates, a U.S.-based design company.

Even the most basic project now requires a dramatically expanded set of skills, designers say. Beyond tee elevations and pin placements, designers have to be experts on water conservation, agronomics, government regulation and environmental policy.

"The planning process is much more rigorous these days," said Ken Moodie, president of the European Institute of Golf Course Architects, which is based at Chiddingfold Golf Club in Chiddingfold, England.

The good news for designers is that high demand for new courses is expected to continue.

According to a study by Ennemoser Consulting of Innsbruck, Austria, the number of golfers worldwide is expected to grow by 35 percent by 2010.

A bridge to success

2007-04-12T12:24:00.000-05:00

Ex-Chicagoan gives Mexican kids leg up with English fluency at his non-profit school

By Marla Dickerson
Tribune Newspapers: Los Angeles Times
Published April 11, 2007

PUERTO VALLARTA, Mexico -- A few years after retiring to this Pacific resort city, American David Bender was bored with golf. His new hobby, he decided, would be tackling Mexico's income inequality. He would do it by teaching English to Mexican children.

Mexico didn't ask for his help. And the former Chicago advertising executive knew nothing about running a school. But Bender saw working families hungry for affordable English-language instruction and upward mobility for their children.

Credit a seasoned adman for knowing his market.

In less than 5 years, Colegio Mexico-Americano has become the largest school in Puerto Vallarta. The non-profit's tuition is 70 percent less than that of the city's priciest bilingual academy. Enrollment has grown to 1,135 pupils and students, with dozens on the waiting list.

Friends who thought Bender had gone off the deep end were correct in one respect; the private institution boasts Puerto Vallarta's only Olympic-size swimming pool.

Not bad for a project that began in August 2002 with a few preschoolers learning their ABCs. It is vindication for Bender, 71, a preacher's son who never lost faith when the current campus was a weed-choked vacant lot with no funding and plenty of doubters.

"We saw a tremendous need," Bender said. "We are trying to build a middle class in Mexico."

Some might chafe at the notion of an American who speaks little Spanish presuming to remake Mexican society. But the school's enthusiastic reception here speaks of parents' desire for their children to learn English in a town where most of the good jobs require it.

There are few developing nations with more to gain by teaching its citizens English. About 85 percent of Mexico's exports go to the United States. Americans and Canadians constitute the majority of its international visitors. More than 400,000 Mexicans migrate illegally to the U.S. each year in search of work. The money these expatriates send home -- $23 billion last year -- is a pillar of Mexico's economy.

But while Hispanic nations such as Costa Rica and Chile have seized on English fluency as a key to global competitiveness, Mexico has done little to prepare its youngsters. The state requires just three hours a week of English instruction for three years during Mexico's equivalent of junior high school, often by teachers who don't speak the language well.

"Pencil. Window. Door. It was useless," said Jose de Jesus Alcantar Delgado, a Puerto Vallarta workman recalling his rudimentary lessons. Lack of fluency has kept him from higher-paying employment in the city's air-conditioned resorts.

Experts blame scarce resources, an inflexible teachers union and widespread resentment of U.S. hegemony. But Puerto Vallarta mother Kenia Salazar Torres isn't buying it. English is standard in elite academies where the children of Mexico's wealthy matriculate. Salazar wants the same chance for her three boys.

Her oldest son, Jose Rodolfo, 9, has a partial scholarship to Colegio Mexico-Americano. Salazar earns the rest by rising before dawn to prepare refried beans for local markets. Her husband, Arturo, is a ticket seller at the bus station.

Such stories keep Bender focused on his second career.

Raised in Pittsburgh, the grandson of a German immigrant farmer and son of an evangelical minister, Bender parlayed a magazine writing contest into a college scholarship. He got into advertising, eventually starting his own agency, Chicago-based Bender Browning Dolby & Sanderson. Bender prospered. He and his wife, Gloria, moved into an oceanfront home near Puerto Vallarta in 2000. It was time to slow down, enjoy the good life.

Conversations with the mostly Mexican congregation of his local church, the New Dawn Christian Center, led to the idea of launching a secular, non-profit, bilingual school that working-class families could afford.

Bender spearheaded a fundraising effort, hitting up friends in the U.S. for money to clear a junkyard and build three classrooms on rented land. Colegio Mexico-Americano opened its doors with 35 preschoolers and the goal of adding a grade every year through high school.

Valley company investing in Mexico

2007-04-11T14:55:00.000-05:00

The real estate market in Mexico is booming — and it’s about to explode. That’s the message three Valley entrepreneurs are sending to potential investors in Arizona, across the nation and around the world.

“Buying property in Mexico is a wonderful opportunity,” said Tim Kelley, chief operating officer of the IMI Group, a Phoenix-based investment and mortgage company at 2398 E. Camelback Road with offices in Austin, Texas, New York and business links in Germany and throughout Mexico.

“And it’s going to get even better,” Kelley added.

He cited the growing number of baby boomers in the United States who have a combined estimated spending power of more than $2 trillion dollars as the future group of investors.

Recent changes in Mexico’s property-ownership laws make it easier — and more secure — for U.S. investors.

Last year, three major money lenders, or financial groups, were offering loans for properties in Mexico. Today, the number has increased to nine, according to IMI Group.

The firm estimates U.S. citizens own $30 billion in residential real estate in Mexico, and another $5 billion is expected to be developed during the next two years.

Roy Nelson, associate professor of international studies at Thunderbird School of Global Management in Glendale, said Mexico’s economy is growing, helping fuel rapid development of real estate.

However, he believes the overall growth is not as rapid as most international — and Mexican investors — would like it.

“There are a lot of people, including Mexico’s President Felipe Calderón, who would like to see the country’s economy growing a lot faster, but there are political forces that are holding it back somewhat,” said Nelson, who also teaches at several Mexican universities.

Nelson echoes IMI Group’s opinion about real estate expansion, particularly in areas like Monterrey, Mexico, a magnet for foreign companies and growing real estate.

“Monterrey’s real estate prices are skyrocketing,” Nelson said. “A lot of people from the United States and Canada are buying property in Monterrey as well as other areas that attract tourists.”

The IMI Group — International Mortgage & Investment Company — was created two years ago by Kelley, a finance, real estate and construction expert who lived in Mexico for 10 years; Kevin Hardin, chief executive officer and veteran mortgage lender; and Tracy Smith, chief marketing officer and real estate entrepreneur who has been tracing Mexico’s economic expansion since he was a child.

“My family owned a home in Rocky Point, and we regularly vacationed there,” Smith said. Smith, a Valley native, said when IMI Group first started he tried to contact as many potential investors as possible. He and Hardin teamed up, then asked Kelley, who had sold real estate not only in Mexico but also in Chile, Portugal, Spain, Venezuela, Brazil, Colombia and Israel, to join them as well. The IMI Group was born.

The principals of IMI Group so far have sold more than $10 billion in mortgage loans and coordinated more than $200 million in construction projects, mostly commercial and residential, including condos. The company deals primarily with U.S. and Canadian investors buying second homes in Mexico and developers in Mexico.

The solid security of putting dollars in Mexican property was not always the case, however, Kelley said, but times are changing.

“In most of Mexico, Americans — or any other foreigner — can now own land outright with what’s called fee simple title, the same kind we have in the United States,” Kelley explained. He said there is a restricted zone — 31 miles from the ocean and 62 miles from the borders — where foreigners can’t hold fee simple titles.

Titles must be held in a trust that is perpetually renewable in 50-year terms. Kelley said this is virtually identical to a Deed of Trust, similar to what is available in Arizona.

There are also areas in Mexico that are set aside by the Mexican government for homesteaders in communal properties (Ejidos) which, in the past, have created legal disputes between Mexicans and foreign investors. “The fact remains that Mexico and the United States have fundamentally distinct legal systems, different politics, different languages and different customs,” Kelley said.

Mexico Facts

2007-04-09T13:29:00.000-05:00

Standards

Road Traffic:right side
Voltage:127V
Frequency:60 Hz
Plug types:A & B,
TV Systems:
System: NTSC M DVD-Region: 4

Geography

Bordering countries:
Belize 250 km
Guatemala 962 kmUS 3,141 km
Location: Middle America, bordering the Caribbean Sea and the Gulf of Mexico, between Belize and the US and bordering the North Pacific Ocean, between Guatemala and the US

Area: total: 1,972,550 sq km
land: 1,923,040 sq km
water: 49,510 sq km
Climate: varies from tropical to desert
Terrain: high, rugged mountains; low coastal plains; high plateaus; desert

Economy

GDP: $1.134 trillion (2006 est.)
GDP growth rate: 4.5% (2006 est.)
GDP per capita: $10,600 (2006 est.)
Inflation rate: 3.4% (2006 est.)
Currency: Mexican peso (MXN)
Exchange rates: Mexican pesos per US dollar - 11.024 (2006), 10.898 (2005), 11.286 (2004), 10.789 (2003), 9.656 (2002)

People

Population: 107,449,525 (July 2006 est.)
Growth rate: 1.16% (2006 est.)
Religions: nominally Roman Catholic 89%, Protestant 6%, other 5%
Languages: Spanish, various Mayan, Nahuatl, and other regional indigenous languages

Government

Capital: name: Mexico (Distrito Federal)
time difference: UTC-6 (1 hour behind Washington, DC during Standard Time)
daylight saving time: +1hr, begins first Sunday in April; ends last Sunday in October note: Mexico is divided into four time zones
Independence: 16 September 1810 (from Spain)

A Mystery: Chacala, Mexico, is a combination of locals and foreign residents acting in concert to benefit town

2007-04-09T12:20:00.000-05:00

By Christopher Reynolds
LOS ANGELES TIMES

CHACALA, Mexico - Sure, there’s a great beach here, fresh fish, tall palms and only about 400 locals to share them with. But let’s start with the treachery and deception.

“You wouldn’t believe the snakes. Snakes as big as your head,” said Ben Laird, a Wisconsonite who bought a vacation home here last year.

“People are poisoned in Chacala every day,” deadpans Richard Laskin of Hornby Island, British Columbia, who has been coming here for 10 years.

“Are you sure that was a whale?” asked Laskin’s friend Stu Reid, gazing offshore. “Could have been drums of toxic material.”

Then - having done their best to deter the reading public from invading their winter haven - these good-natured liars go back to their tropical idylls. Laskin and Reid tuck into their breakfast at the Mauna Kea Cafe, one of about 10 restaurants in Chacala, as they gaze down upon a canopy of green, a deep blue sea, and a few dozen pelicans swoop-commuting. .

The truth about Chacala is indeed intriguing, especially for a traveler who wants to meet Mexicans while vacationing in Mexico, who likes his coconuts straight from the tree, who doesn’t need the bright lights of Los Cabos or Cancun.

Chacala, a village 60 miles north of Puerto Vallarta on Mexico’s Pacific Coast, is built around the beach, a handsome half-mile crescent of jungle-adjacent sand. At the southern end of the beach, gentle surf murmurs over black volcanic rocks. In the middle of the crescent, a half-dozen palm-shaded restaurants serve fresh fish and shrimp (and keep a machete on hand for those new-fallen coconuts). To the north, two dozen battered fishing boats are tied to a modest dock.

In town, several lodgings have popped up in the past few years, most offering ocean views, modest amenities and nightly rates from $50 to $90. A little farther north, more than 25 luxury vacation homes, some of which rent by the night, have gone up in a gated compound called Marina Chacala.

What sets Chacala apart from so many other modest but growing Mexican beach destinations is this: Thanks to the arrival of three hippie siblings at the end of the 1970s, the town is awash in social experiments, many of them built around the idea that locals and tourists need to meet and learn from one another.

Under one 11-year-old program, called Techos de Mexico (Roofs of Mexico), six villagers have added upstairs rooms and terraces, most with ocean views, none more than a five-minute stroll from the beach. When not snapped up for the season by wintering Canadians, most of these rooms rent for $22.50 to $60 a night.

Other tourists can volunteer on community projects, attend yoga or meditation seminars or learn Spanish as guests at a 24-year-old beachfront retreat called Mar de Jade (pronounced Hah-day), which in winter is usually priced at $120 to $135 per person per night, double occupancy, meals included.

Still other visitors and expatriates have bankrolled a community library, paid for improvements at the elementary school, and developed a scholarship program that underwrites the transportation, books, uniforms and other education costs of more than 25 local youths.
(The public schools in Chacala stop at secondary school.)

But you don’t have to volunteer. Instead, you can spend $50 a night on a hotel room with an ocean view and lie around. Or spend $625 a night on a mansion that sleeps 10 and lie around in splendor.

You can take a $10-a-person boat trip to snorkel by the rocks off Chacalilla beach. You can fish for dorado or sierra or surf at La Caleta Point. You can kayak between rock formations and secluded beaches, go birding in a mangrove swamp to the north or drive half an hour east to the petroglyphs at Alta Vista. You can ride a horse through the jungle to a secluded beach or drive about two hours into the hills and see Lake Santa Maria, its waters collected in the caldera of an ancient volcano. Or you can stroll back and forth on that grand crescent of sand.

“Some nights, the sunsets just tear your heart out,” said Andee Carlsson, who moved here permanently three years ago from Washington state. Carlsson, who rents a room in one of the Techos houses, said she came because it was affordable and the gardening was year-round. She stays because “the people here make me feel good,” she said. “People just help you out, and you get to help people out.”

Until the first paved road connected the village to Highway 200 seven years ago, the only way into Chacala was by dirt road or boat. Now business is picking up and the occasional RV, rental car and taxi has joined the local traffic, including the cab that delivered me to my lodgings at dusk one day.

It had been a three-hour flight from Los Angeles to Puerto Vallarta, then a 90-minute ride, and my first thought, rolling into town, was, “Uh oh.” Two blocks of dirt roads, sleeping dogs and ramshackle storefronts. That was the commercial district.

Ahhh, but then I stepped out to the beach. It was nearly empty, a slight breeze blowing. The tall palms, the quiet, the loop of the beach between the rocky points at either end - this was a landscape to banish worry. In the restaurants along the sand, a small band of Canadian snowbirds lingered over seafood and cervezas. A little way up the beach, 20 RVs were parked in the palm grove next to the beach, their owners paying $5 a night for the privilege.

I know, I know. In your daydreams of tropical paradise, there are no RVs, except perhaps your own. But Chacala is fetching and comfortable, not fancy and immaculate.

“It’s still real Mexico down there,” said Laird, he of the imaginary snakes, gazing out at the town one afternoon from his home in Marina Chacala. “Chickens at your feet. And everybody knows everybody.”

Yet it’s growing by the day, and there’s all this experimentation. By many measures, Chacala’s modern history began 27 years ago, when Laura, Om and Jose Enrique del Valle arrived from Mexico City in pursuit of an implausible dream: On a patch of land at the southern end of the beach, they would build a retreat for foreigners that would increase cultural understanding and support a medical clinic.

Operating out of an old school bus, they put up eight rooms with shared bathrooms, light provided by candles and lamps, refrigeration by ice blocks. They called it Mar de Jade.

The partnership didn’t last. But the business has. These days, Mar de Jade could pass for a rich man’s vacation compound. Surrounded by gardens, it has 30 rooms, a spa, a couple of big meeting rooms, a shaded patio that seats 50 or so, a palm-shaded pool, a prime spot on the beach - and a medical clinic in nearby Las Varas that often draws volunteers from the numbers of medical professionals and students staying at Mar de Jade. Laura del Valle, a 56-year-old physician raised in Chicago and Mexico City, owns Mar de Jade and runs it with her 21-year-old daughter, Angelica.

These days, they house mostly med students and other volunteers in summer and mostly vacationing couples, families and groups in winter.

Laura’s half brother, Jose Enrique, has carved out his own niche on 21/2 acres next to Mar de Jade.

Drawing on his background as a builder, civil engineer and former tour guide, he and his wife, Carmen, built and opened Majahua, a four-room boutique hotel, spa and restaurant on a jungle slope, in 1996. Pronounced “Mah-hawa” and named for a jungle tree, it’s the only lodging in town where you’re likely to hear American jazz on the stereo, order a Mediterranean salad or wash your hands in one of those stone-bowl sinks you see in design magazines.

But it remains a jungle enterprise: Indoors or out, you may spy a spider or two. You spend a fair amount of time navigating the paths that connect the guest rooms to the dining area, the dining area to the beach, and the parking lot to everything else.

To many in town, Jose Enrique del Valle is best known as the coordinator of Techos de Mexico. Started in 1996, inspired by the work of Habitat for Humanity and largely bankrolled by donations from the north, it’s a construction-loan program to connect villagers with tourists and their dollars.

So far, the program has built four houses and expanded three others, spending $4,000 to $9,800 on each project, splitting revenues between landlords and the loan fund. Three landlords have already paid off their loans, including Concha Velazquez, who told me in Spanish that her family had been dependent on her husband’s uncertain income as a fish merchant. They opened Casa Concha in 2001, paid off their loan three years later, and now have three rental rooms.
The only real downside, said Jose Enrique del Valle, now 50, is that “it’s a lot of work. I’m exhausted.”

As the renovated schools and the library near the middle of town demonstrate, more activists have arrived in the Del Valles’ wake. One is Susana Escobido, who runs the Mauna Kea Cafe with her husband, Poncie, rents out a few rooms by the month, sells homes in the Marina Chacala development, and is co-founder of Cambiando Vidas (Changing Lives; www.chacala.org), which spends about $40,000 yearly (much of it raised among U.S. Rotarians) to help local schools, underwrite a learning center and fund scholarships. Twenty-seven local youths are studying on scholarships right now, from eighth-graders to college students.

“The Nayarit coast is just exploding, whether we’re ready for it or not,” Escobido said. “We want to make Chacala a community of entrepreneurs.”

So, plenty of eyes are watching the state-owned RV park at the edge of the beach - where a would-be buyer has proposed condos - and Marina Chacala, where unbuilt lots are priced at $200,000 and up. Developers there already have made enemies by blocking locals’ access to a beach that had been public.

Still, Escobido contends that some of those home buyers could be the village’s next philanthropists. “They don’t know it yet,” she said, “but they’re all going to be participating.”

Why Buy In Mexico

2007-04-04T12:21:00.000-05:00

Property values in México, like in the US, tend to increase year-over-year. As the demand for ocean front property in the US has outstripped supply, it has become an unobtainable commodity for the average person to afford. However, in México, there are numerous locations where one can still afford the ocean front home, condo or lot as prices started at a much lower point.

The increases over the last couple of years have, for the most part, eliminated what we would call cheap, but on a relative basis, you can still find a 4 to 10 times differential in prices when compared to the United States.

Additionally, Bancomex, the Mexican import export bank, asked me for a comparison of a 10 acre parcel in La Jolla, CA. My response was that there was none, but the type of property still exists in México. As with all property, the relative value and appeal of property in México comes down to the three key factors: location, amenities, and accessibility to the United States.

In addition to México's lower land costs, construction costs are lower, maintenance is cheaper, and ownership costs (taxes, utilities) are very low. A person can live like royalty on the saving from property taxes alone. For example, in most areas of México, property taxes are about 0.1%, so for a $1,000,000 home, a person would pay about $1,000 per year.

In Florida, property taxes are about 2.5% or $25,000 for the same million dollar home. So with the $24,000 or $2,000 per month differential, one could have a live in maid, pay the utilities, have the maid buy groceries, and have some mad money left over.

Purchasing property in any location requires an extensive amount of research, planning and preparation - México is no exception. A person should understand the laws, do significant diligence and work with true professionals who can guide you to a successful, safe property ownership in México.

Banyan Tree Invests in Chamela, 2 Hours South of Puerto Vallarta

2007-04-04T11:43:00.000-05:00

Banyan Tree to Joint Venture to Build a World Class Resort in Chamela with Golf

Banyan Tree Holdings is investing with a Mexican partner to develop approximately 500 acres in Chamela, approximately 2 hours south of Puerto Vallarta. The integrated resort will offer guests spectacular views of the protected islands around Chamela and will feature a world-class golf course and a high-end mix of Banyan Tree branded residences for sale.

I've been to the exact location and looked at it from a development perspective. It is a truly special location. The only draw back is it accessibility to the world; however, I guess after a few spa treatments, you will not care about the journey, only the destination. Banyan Tree has partnered with the Mexico Owner and has taken minority interest of 19.9% in the development and has an option to increase its investment to 30% of the development within a year and a half.
Banyan Tree is investing $200 million USD in Mexico to develop 4 projects. Besides the Chamela project, Banyan Tree also is developing Banyan Tree Los Cabos, Banyan Tree Punta Diamante in Acapulco and Banyan Tree Mayakoba in Rivera Maya. It is a leading developer, designer and operator of luxury resorts, hotels and spas worldwide.

Capital Gains

2007-04-03T11:55:00.000-05:00

We have heard different interpretations of the Mexican capital gains
tax and what we must do to avoid it, what is yours?

We have FM3s (working, not just retiring) and have had them and lived here for 11
years not owning any other house. Our rental business is a sole
proprietorship that pays all pertinent local, state and federal payroll
taxes, income taxes, etc. I have a permit from the city and a tax ID number.

Would the closing (the $ transfer) be in the US?

Here is something a local colleague, Wayne Franklin, wrote up to illustrate the UDI formula:

I'm going to show you two different sales.

Both have the same sales price for today, but different purchase prices:
one at $5,000,000 pesos (or approximately $455,000 USD)
and another at $7,000,000 pesos (or approximately $635,000 USD).

The calculations are for foreigners, as for Mexicans, they can be different
based on the Mexican's tax base rate.

The calculations assume an 8% brokerage fee.

Note that the Adjusted Purchase Price does NOT include any fiscal adjustment
that would also be applied since the purchase of the property, which would
effectively reduce the taxes to be paid. As to the real estate commission,
IVA is not factored in for this calculation.

$5,000,000 Peso Original Purchase Price:

Current Sales Price $9,000,000 March 2007

UDI Deduction ($5,737,809) (1.5M UDIs x 3.825206)

Amount Exceeding Deduction $3,262,191 (36.25% of sales price)

Adjusted Purchase Price ($1,812,500) ( 36.25% x $5,000,000)

Adjusted Real Estate Commission ($ 261,000) (36.25% x $720,000)

Total Gain $1,188,691

Capital Gains Tax Due $ 332,833 (28% x $1,188,691)

---------------------------------------------------------------------------
$7,000,000 Peso Original Purchase Price:

Current Sales Price $9,000,000 March 2007

UDI Deduction ($5,737,809) (1.5M UDIs x 3.825206)

Amount Exceeding Deduction $3,262,191 (36.25% of sales price)

Adjusted Purchase Price ($2,537,500) ( 36.25% x $7,000,000)

Adjusted Real Estate Commission ($ 261,000) (36.25% x $720,000)

Total Gain $ 463,691

Capital Gains Tax Due $ 129,833 (28% x $463,691)

In the first scenario, your REAL profit is approximately $3.3 million pesos
($9M, minus $5M, minus brokerage fees). That means that your REAL tax rate
is just over 10%! ($332,833 divided by $3,280,000) – remember, that's all
pesos.

If EVERYBODY had a 10% flat tax, I think we'd all be pretty happy about it.
In the second scenario, it's the same – just over 10%. While there are still
criteria to meet for this, you don't have to meet the most difficult
criteria item, which is to reside in the home for 5 years; only 6 or more
months.

All things considered, this is not such a bad deal.

As you can see, despite the fact that some think that the 1.5M UDIs is an
«exemption» to that amount and then you pay taxes on all the value that
exceeds that, this is not the case. So despite the fact that you may have
purchased a property exceeding the UDI exemption, the current law does have
benefits for you too.

These figures are based on the law as of today and can change at any time.
In addition, you MUST confirm all calculations in your particular situation
with the Notario Publico in your transaction as each case is different and
there may be idiosyncrasies of your deal that may affect your particular
situation. As you can see from these examples, owning property in Mexico is
still a very good investment.

Based on what I know, you have had title for 11 years and are very much in the clear.
As for a straight answer to the issue, I'm no lawyer, but as I understand it, like anywhere, capital gains tax codes are continually modified to fit the times and the big change this year is in the "no exemptions" code.

Last year you had to own the property as your primary residence for 6 months to avoid the tax. This year, they changed it to 5 years residency.

It is cooling speculation and the notarios have less latitude and are getting more organized/standardized.

------------------------------------------------------------------------

Starting January 2007 there are three levels of exemption:
Total exemption, Partial exemption and No exemption.

Total exemption
------------------------------------------------------
Proof of five year residency: FM2-3, business accounting/hacienda documentation, utility bills

No Exemption:
------------------------------------------------------
25% of the gross sales price or 28% of the net gain
Deductions:
brokerage fees
capital improvements

Partial Exemption
------------------------------------------------------
Proof of six month residency: FM2-3, business accounting/hacienda documentation, utility bills
The partial exemption is calculated using the Unidad De Inversion (UDI)
http://coinmill.com/MXV_calculator.html

Unidad de Inversion (UDI). Loans denominated in UDIs maintain their purchasing power and provide a real rate of return in pesos.

In 1995, during the devaluation, Mexico introduced a price-level-adjusting unit of account called the Unidad de Inversion (UDI), an index unit of funds.

It can be traded in many currency markets because its value changes with respect to currencies. Unlike currencies, it is designed to retain its purchasing power and not be subject to inflation.

The Mexican credit system (especially mortgages) uses the UDI rather than the peso because of its stability.

The UDI fluctuates daily and is currently at +/- 3 UDIs to the peso.

The new tax law describes a partial exemption of up to 1.5 million UDIs and can be calculated using a rather complicated formula that has variable worth gong over personally with a lawyer.

You will need a lawyer to get the most accurate assessment.

That it is difficult to get a straight answer is bad for everyone.

I think we both know you are perfectly exempt, but would like it in stone before making the big decisions.

The lawyers and Notarios we use can help with that.

but you should keep asking the questions Here is a link with good info

http://www.virtualvallarta.com/puertovallarta/realestate/re-articles/useful-information-for-th.shtml

and here are well reputed lawyers you can talk to

David Connell
CONNELL & ASSOCIATES
Hermenegildo Galeana #18
Col. Centro, Zihuatanejo, Gro.
C.P.: 40880 M e x i c o
Phone: 011 52 (755) 555 0400 or 554 1370
Fax: 011 52 (755) 554 2035
http://www2.blogger.com/www.mexicolaw.com.mx
dconnell@mexicolaw.com.mx

María Elizabeth O'Connor
Robles, Lazo y Gallardo, S.C.
Carretera a Mismaloya No. 479, Int.107
Edificio Scala
Puerto Vallarta, Jalisco 48380
Tel. 011-52-322-223-3218
Fax 011-52-322-223-2790
moc@rlg.com.mx
http://www2.blogger.com/www.rlg.com.mx

Javier de La Pena
Marina Las Palmas 2 Local 25
Acceso por Calle de Ancla.
Marina Vallarta, C.P. 48334.
Puerto Vallarta, Jalisco, Mexico.
Tel: 322 2091549
Fax: 322 2090544
Cel: 322 2275815
javierdelapena@yahoo.com

Other interesting reading:
http://www.pwc.com/extweb/service.nsf/docid/6A6886056BC7C8A6802570B3005D6FCF

Gringolandia — The U.S. Migrant Boom Hits Mexico

2007-04-03T11:35:00.000-05:00

April 2, 2007

By Kent Paterson

Elizabeth Rogers and Alex Kelly embarked on the trip of their lives. Selling their Chicago condominium, the couple flew to Puerto Vallarta, Mexico, this past winter for a needed break from the old work routine. Based in beautiful but expensive Banderas Bay, the young travelers visited beaches, endured roving street vendors and explored the wonders of the tropical Pacific coast, a place where the waters hop with migratory humpback whales, dolphins and sea turtles. Rogers was struck by the gay-friendly atmosphere. "A lot of rainbow-colored flags and that kind of thing, which is nice," said the young woman. "That's accepted down here, I think."

Lodged in a Puerto Vallarta condo, the Rogers-Kelly team quickly stumbled across the pricey real estate market that defines Puerto Vallarta and surrounding areas. Timeshare vendors hustled the couple, and ads for expensive properties leaped into their eyes from the pages of slick magazines and newspapers. "There is undeveloped land, developed land, high rise condos, gated communities," Kelly observed.

Finding Puerto Vallarta a pleasant stay, the midwestern couple nevertheless departed for the next leg of their world journey. Other US visitors, however, are purchasing homes and remaining in Puerto Vallarta for the long haul.

Mark Anthony Venegas should know. A native of Carlsbad, New Mexico, Venegas lived in San Francisco before moving to Mexico in 2003. Now heading a "full-service" real estate company in Puerto Vallarta, Venegas brokers properties, helps potential customers get financing and arranges for new homes to be built on empty lots. One division of Venegas' business caters to gay homebuyers.

Seated in the air-conditioned comfort of his office in Puerto Vallarta's Olas Alas neighborhood, Venegas pointed to the push of the "rat race" and the pull of community, typified by a traditional family-centered culture, as attractions that convince gringos to move south. And as in his case, the prevailing state of politics north of the Rio Grande is a growing part of the picture, Venegas said.

"I love the US. It's the greatest country in the world. However, it's going through some difficult times right now with the Bush administration and the war and everything else,” he said. “And so yes, I do believe there are a lot of expatriates that are down here dissatisfied with what's happening in the US."

Ken Grover, a longtime US-born resident of Puerto Vallarta who works in the marketing business, observed that an earlier gringo migrant wave tended to be polarized between affluent migrants and poor ones. "There were two extremes," Grover said. Nowadays, a lot of the newer migrants are better-off baby boomers who are still forced to stretch their dollars, according to Grover. Still, a respectable number of the new Mexican residents must work for a living — just like their darker-skinned neighbors. For some, trying to survive on pesos is a bitter jolt of reality.

Almost entirely ignored by a press more interested in undocumented Mexicans in the United States is the phenomenon of US-born workers who labor away in the service and professional sectors without the proper papers. A company that runs a Puerto Vallarta call center promises Canadians and Americans "help in attaining the proper work documentation necessary."

The New Migrant Wave

A recent, path-breaking article published in Dissent magazine described a group that doesn't learn the new language, displays its native flag, maintains its traditional customs, and even celebrates its old holidays in the new country. "Some live and work without proper documentation and have even been involved in the illegal transport of drugs across borders," stated the piece. Sound familiar?

Written by Sheila Croucher, a professor of political science at Ohio's Miami University who is studying US migration to Mexico, the article delved into the complex aspects of the new Gringolandia south of the border. Professor Croucher found that many of the same issues that surround the Mexican immigrant community in the US ring true with the US immigrant community in Mexico as well. As Croucher summarized it in an interview with Frontera Norte Sur, "The precise things that politicians and pundits are railing against in the US."

Nobody knows for sure how many people of US origin reside in Puerto Vallarta and other regions of Mexico, but Croucher said that one US State Department estimate made several years ago pegged the number at about 600,000 souls. Since 9-11, the US government has become reticent about disclosing information concerning US citizens living abroad, Croucher added.

In addition to the older haunts of San Miguel de Allende and Lake Chapala in central Mexico, newer gringo "clusters" are emerging along the Baja California peninsula, at Rocky Point (Puerto Peñasco) in Sonora, around Banderas Bay in Jalisco and Nayarit, in Zihuatanejo-Ixtapa and Troncones in Guerrero, and along the Mayan Riviera on the Caribbean Coast.

Mirroring Mexican immigrant communities north of the border, US migrant communities in Mexico boast their own social and civic organizations, participate in the political life of the old country and enjoy access to native-language newspapers, radio programs and cablevision.

The 2004 US presidential campaign signaled the new importance of the US migrant population in Mexico. Speaking by telephone from Mexico City, Croucher recounted how the Democratic Party dispatched former Clinton Administration official Ana Maria Salazar to round up the expatriate vote, while the Republican Party sent President Bush's nephew, George P. Bush, to rally his party’s faithful. In the town of San Miguel de Allende alone, the Democrats raised US$10,000 for Kerry's bid, Croucher added.

"After 2000 it became clear to people how close the elections could be and the importance of the vote abroad," Croucher affirmed.

A good percentage of the US migrants complain about the drift of politics as well as the propensity for over regulation back in the states. A young woman from the United States, who preferred to identify herself only as Denise, has tasted the world from Pakistan to Puerto Vallarta. The world traveler contended that the strict security measures on US borders symbolize the end of liberty as we once knew it, and represent a closing window on the rest of the global community.

"It's a freedom thing, nobody likes to be controlled," she said. "In the states, it's black and white. Here there is a gray area. If you get stopped in the states, you always get a ticket."

For Croucher, economics, specifically health care costs, are far more influential in driving US citizens to Mexico than either George W. Bush or the local street cop. Many Mexican dental clinics and doctor's offices in the border region and points south thrive on a growing US clientele. Fees are reasonable, prescription medicines are affordable, appointments are given in minutes or hours instead of weeks or months, and the quality of service is good, “Americans I talk to have nothing but positive things to say about health care in Mexico." Croucher said.

Considering that the looming mass retirement of the baby boomers coincides with the growing meltdown of the US health care system, Croucher noted a certain irony in the snappy remarks of commentators who accuse Mexico of exporting its problems to the US. "We're exporting our problems abroad," Croucher contended.

Canadians are also moving to Mexico, but many are more apt to complain about Washington than Ottawa.

Mexico For Sale

"The entire country of Mexico is booming with Americans investing," realtor Venegas concluded. He was quick to add that foreigners interested in buying property in Mexico have it easier than anytime in the past. Even though the nation's Constitution prohibits foreign land ownership near coasts or borders, foreign buyers can now obtain renewable, 50-year trust deeds that grant all the rights of buying and selling. Mexican banks, most of which are now owned by foreigners, administer the properties for annual fees that average about US$500 for individual homes.

Low property taxes coupled with the availability of Mexican home mortgages in the United States are two incentives for foreign buyers. In contrast to the United States, however, prospective homeowners must plop down a bigger cash down payment — something in the neighborhood of 20 percent. With prices for condos and homes quoted in five or six figures, buying a property in Puerto Vallarta and many other markets is not for the budget-minded.

A local trade publication, the Vallarta Real Estate Guide, recently estimated that real estate sales in the Puerto Vallarta-Banderas Bay region jumped from US$400 million in 2004 to US$550 million in 2005. "Gold Rush Days are Here Again," ballyhooed the publication. Familiar US real estate companies including Century 21, Prudential and Coldwell Banker have representatives throughout the country, and friendly, English-speaking salesmen and women regularly emerge from their strategically placed offices in front of the tourist pedestrian traffic.

Locals report that some Mexican landowners and homeowners are cashing in on the real estate market, selling off their properties in trendy places like Puerto Vallarta's old downtown, or "Gringo Gulch," as it is called. Locally home prices are beyond reach for the average Mexican citizen, according to Marina Perez, a Puerto Vallarta environmentalist and longtime resident. Consequently, many Mexicans fall into the old Third World practice of purchasing cheap land or squatting on empty lots located on urban outskirts.

"Puerto Vallarta has always been expensive, but with all this going on home prices are going through the roof. The average citizen can't obtain a decent house, unless it is through low-income government programs," Perez said. "So what happens to the people who come without money and don't have access to the government housing programs? They go up on the mountain and get a lot. It doesn't matter to them whether or not they have electricity, water or sewage."

The lure of the shantytown is not surprising. After all, wages in the service-oriented tourist industry are low. A young Wal-Mart worker, who holds what is regarded as one of the "better" jobs in Puerto Vallarta, reluctantly disclosed earning a few hundred dollars a month — a pitiful income in a city whose prices mimic those in the United States. Wal-Mart workers are instructed by the company not to reveal their salaries to strangers or reporters, she added. In San Miguel de Allende, Croucher found a similar economic dynamic. "Mexicans will say yes, there are more jobs in the service industry, but we shop in the same stores and pay the same prices."

In the broader picture, a combination of high real estate prices but low property taxes could be depriving municipalities like Puerto Vallarta and San Miguel de Allende of much-needed sources of extra revenue. Many foreign owners reside in their properties only part of the year and attempt to rent them out to other foreigners at other times, frequently demanding dollars that are then deposited in US banks. In a reversal of J. Ross Perot's NAFTA-induced "giant-sucking sound," it's a cash flow that trickles out of the local Mexican economy in ever-greater amounts.

In the Long Term

Of course, it's way early to assess all the cultural, economic, social and even political impacts of the gringo population boom in Mexico. In places like Puerto Vallarta, the trappings of culture, music, language, cuisine, social behavior, and even spatial ambience are undergoing visible and audible transformations. In nightclubs, the music of Shakira easily mixes with the blues of Eric Clapton. On the streets, English words increasingly infiltrate signs and scream from billboards. Franchises of Hooter's, Wal-Mart, Burger King, McDonald's, and Dominos continue to sprout up everywhere.

Like Mexican immigrants who find familiar product brands and culturally-popular businesses like hairstyling salons in the barrios of El Norte, US immigrants in Nueva Gringolandia have ready access to services from home, whether through the Internet or on the ground. The ageless, rowdy boomers who tear down the roof every night at the tequila-soaked Andale! bar in Puerto Vallarta, can then soothe their hangover seared aching muscles with a California-style massage the next day.

Stirring deeper, morsels of low culture and high culture swirl in the expanding stew. Reminiscent of upscale Southern California or Bay Area eateries, Alaskan crab legs, fusion cuisine and Asian flavors are now regular menu items. A hip new restaurant in Puerto Vallarta offers spicy duck quesadillas concocted with Oaxaca cheese, mushrooms and chile-Hoisin sauce.

A tense, uncertain cosmopolitanism is emerging on Mexico's West Coast. English, Spanish and Canadian French are frequently heard in the same social venue, while Mexican indigenous languages spoken by street vendors trying to hawk handicrafts or gum to the better-off foreigners are heard off to the side. Before too long, expect Chinese to be part of the regular linguistic fare. Unlike the hot button issue of Mexican flags in the US, displays of US, Canadian and Mexican flags wave together without raising major hackles in places like Zihuatanejo or Puerto Vallarta.

On the artistic and literary fronts, the newcomers are making their mark too. Puerto Vallarta's spacious public library, which offers free Internet access, was built with the financial assistance of foreigners. English-language books are available for borrowers to take home. While it might be said that Mexico is suffering a "technical brain drain" because of the migration of many professional Mexicans to the United States, it might be stated too that the US is now beginning to suffer an "artistic brain drain" due to the flight of creative individuals. "I think there are a lot of wonderful writers, artists, intellectuals that are coming down," Puerto Vallarta long-timer Ken Grover celebrated.

Some lament what they regard as the contamination of Mexican culture by rampant consumerism imported from the United States. Credit cards are back in fashion in Mexico, and status symbols prevail. According to world "citizen" Denise, a money game goes on between Mexican nationals and migrants. "You get a lot of Americans here who think they can overrun Mexicans with money," she added, "but Mexicans aren't stupid. They'll charge them double for everything."

In comparison to the immigration debate-polarized US, Miami University's Sheila Croucher hasn't detected a nationalistic resentment in Mexico boiling up against the gringo migrants — at least until now. According to Croucher, natives of San Miguel de Allende maintain that the gringo presence allows the town to economically survive. Intriguingly, Croucher has heard more put-downs against the newer arrivals voiced by longer-established gringos. "The idea," she mused, "that these newcomers are messing up 'our' authentic Mexican towns."

Amended laws let foreigners buy on beach

2007-04-02T16:36:00.000-05:00

By Tom Carter
THE WASHINGTON TIMES
April 1, 2007

The Mexican Constitution forbids foreign nationals from owning land within 31 miles of the coast.

However, in 1994, the government amended the constitution and created legal mechanisms allowing foreigners to safely invest in beach property.

"There are big incentives for foreigners to invest in residential property," said Alvaro Palma, general manager of Stewart Title Guaranty of Mexico. "You need patience. You need to understand you are dealing with a different legal system, but it is safe and simple and workable."

In short, land close to the border or near the coast is in the "restricted zone" and can be "owned" only by foreigners through a 50-year renewable bank trust called a "fideicomiso," or by purchasing communally owned "ejido" land with the help of a Mexican national known as a "presta nombre."

When buying property through a Mexican bank trust, the bank holds the title to the land for the buyer, who in effect has full ownership. The buyer has full use of the property, can sell or improve it, give it away or convey the property. The trust is renewable every 50 years.

"You have the same rights that you would have under fee-simple land. You can mortgage it, give it to family members, everything you can do with fee simple. It is a renewable 50-year trust, and it is absolutely safe," said Tom Kelly, a former real estate editor for the Seattle Times and author of "Cashing in on a Second Home in Mexico." Most real estate in the United States is fee simple, meaning the owner is the absolute owner.

Putting his money where his advice is, Mr. Kelly recently bought an ocean-view plot in the Cascadas de Manzanillo development. First American Title of Sunrise, Fla., provided the master title.

Depending on who you ask, buying "ejido" land is considerably riskier, but more Americans are taking that risk.

Ejido land is land that is communally owned in poorer Mexican agricultural and fishing communities. The ejido committee can give title to individual Mexicans, who may or may not by permitted to sell it. With proper documentation, ejido land can be sold to foreigners. This is done through a "presta nombre," which means "borrowed name." It uses a Mexican national, who acts as the name on the title, but retains no rights.

In 2000, some 250 U.S. "land owners" were evicted from property with a questionable title in Punta Banda, Baja. They lost the homes they had built and their investment. The development was not on ejido land, but illustrates that navigating Mexico's property and legal system can be treacherous.

Internet Web sites on "what can go wrong" when purchasing Mexican real estate are full of warnings that when using a presta nombre, U.S. buyers are purchasing with no guarantees that their investments are protected.

That said, hundreds of foreigners do buy ejido land. Given time, money and the proper documentation, ejido can be "regularized," or turned into fee-simple land with a clear title. When that happens, it must be held in a bank trust.

"I bought ejido land. I suppose it is possible that there could be trouble in the future," said Gordon Preston in Chacala. "I am very comfortable with my presta nombre. I expect it will be regularized soon."

Garcia Realty in Sayulita said that over the years it had sold more than 200 prime ejido plots and houses to foreigners using the Garcia family members as presta nombre. The presta nombre has no legal rights to the land, but Garcia Realty receives a real estate agent's commission on each property sold.

"Our business is not just a job. Our home is here, and future generations of the Garcia family will inherit our reputation," according the Garcia Web site, noting the family has been in Sayulita for more than 80 years. "Customer relationships, based on mutual trust and confidence, will remain our top priority."

"When I bought, I was totally ignorant, and I could have really been ripped off," Harvey Craig said of Garcia Realty. "I was lucky. It is important to go through a reputable and trustworthy Realtor."

Lectures shed light on exotic trips

2007-04-02T12:42:00.000-05:00

Nancy Lanthier, Vancouver Sun
Published: Saturday, March 31, 2007

Two local lectures in April will shed light on travel opportunities -- one to explore the little-known Southeast Asian country Myanmar (formerly Burma), the other to experience a spiritual ceremony in Mexico.

CanWest contributor Andrew Renton describes Myanmar in a press release as "a magical yet contentious country." The well-known writer -- who takes impressive photographs and shares a good yarn -- offers tips on experiencing the best of this exotic place (bordered by China, Laos, Thailand and India). The talk will take place April 4 at 7 p.m., at Vancouver Public Library (350 West Georgia); tickets are $12; for more information, call 604-732-0054.

- - -

A talk on participating in the Mexican "Ceremony of Fire" -- said to be a life-changing experience -- is presented by Wirrarika Conexion, April 18 at 6 p.m. and April 21 at 4:30 and 6:30 p.m. at the Vancouver Public Library (350 Georgia St.).

Operated by Juan Carlos Quintero and his partner, Wirrarika says in a press release that it guides travellers deep into an indigenous culture to experience a spiritual journey guided by a shaman.

"This is somewhat exclusive," writes Quintero in a recent e-mail, "since these ceremonies are not easily accessible."

For those interested in "expanding their spiritual knowledge," the journey takes place May 24 to 26, in Chacala, Nayarit, a small fishing/tourist village set on a beach near Puerto Vallarta.

nlanthier@png.canwest.com

Real estate advances lure foreign investors

2007-03-28T10:44:00.000-06:00

Wire services
El Universal
Martes 27 de marzo de 2007

Experts say that the process of buying property in Mexico has changed substantially in recent years. For instance, title insurance and the wide availability of mortgages have added a new level of security, and has led to an increase in the number of foreign buyers.

Still, buying in Mexico remains a complicated and sometimes frustrating process for the uninitiated.

Stewart Title, which began offering title insurance in Mexico in 1993, has had its Mexico business triple in the past three years, said Mitch Creekmore, a senior vice president at Stewart International and co-author with Tom Kelly of "Cashing In on a Second Home in Mexico." "You have to do your own due diligence,"Creekmore said.

Longtime participants in the real estate business cite these common obstacles:

-There are restrictions on foreign ownership of land within 50 kilometers, or 31 miles, of the coast and 100 kilometers of the border.

- In most cases, any residential buyer who is not a Mexican citizen must place the property in a Mexican bank trust, or fideicomiso, which is controlled by the buyer and easily renewed after 50 years.

-The national real estate association, Asociacion Mexicana de Profesionales Inmobiliarios, recently signed an agreement with the National Association of Realtors in the United States that allows its members to use the Realtor designation. But there still is little oversight.

"You have to have a reputable broker, period,"said J.P. Money, who runs www.mls4rivieramaya.com, a property listing service. "Ask for references, and ask people who have bought from them before."

-Although the practice is technically illegal, it is not unusual for a seller to record a much lower purchase price to avoid taxes and then an unsuspecting buyer, trying to resell the property, is called upon to pay tax on the recorded increase in value.

"Buyers need to be sure the full price is recorded on the deed,"said Linda Neil, founder of the Settlement Company, a transaction consultancy based in La Paz, Mexico.

-Some buyers are shocked to find that closing costs can be as much as 10 percent of a property´s value. Fees for condominium associations and maintenance also may add to a transaction´s overall expense.

-Tracking a property´s title can be difficult. Large tracts often are controlled by ejidos - collectives of landowners - and in some cases sellers do not have full title to the land.

"Probably the biggest land mine is distinguishing the difference between private property and ejido land,"Neil said. "If title insurance won´t cover the title, that´s a big red flag."

Advice for the small foreign investment in Mexico

2007-03-28T10:24:00.000-06:00

You can skip if you don't want to do business in Mexico.

THE RULES

-AVOID LAWYERS

-DO YOUR OWN HOMEWORK

-UTILIZE GOVERNMENT AGENCIES FOR FOREIGN INVESTMENT

Lawyers in Mexico, as in the United States, should be avoided; however, at times they can be a very "necessary evil" - as the saying goes.

My work as a consultant at a Mexican law firm and my experience as a foreign investor in Mexico, over the past fifteen years, has taught me that in order to succeed you must educate yourself regarding the rules of the game; of course, this is true of investing in any country. The U.S. businessman at home understands enough about his country's civil laws and tax code to intelligently manage a legal or fiscal professional. The foreign client is vulnerable to professionals overcomplicating their matter, overcharging for services or shortcutting the legal process. The client often ends up paying government fines for non compliance and repays someone to do the work correctly.

Education is the operative word for neophyte foreign investors. There are over 500 seminars annually on Mexican investment that are scheduled throughout the Americas. Choose one that includes a comprehensive discussion of the following: foreign investment as it pertains to establishing a foreign owned business, tax laws and international tax reporting agreements between the U.S. and Mexico; how to use bank trusts for acquiring coastal and border property as a foreigner, and how to purchase property as a foreign owned Mexican corporation. Avoid a one day crash course on investing in Mexico.

The comprehensive conferences I have organized in Baja California always require two to three days to cover the subjects properly. Handouts should include a copy of Mexican foreign investment law in english and an outline of tax obligations in Mexico for foreigners. The U.S.-Mexico Chamber of Commerce is a good organization to check with, in addition to their own seminars and trade shows, they can advise you on the quality of other workshops.

Ron Sharpe is a furnishings factory owner in Rosarito, Baja California who speaks very little Spanish and has never used a lawyer either to establish his successful business or in the running of same. What Ron has is patience and dogged determination. He tirelessly goes to Mexican authorities for assistance. He finds that his lack of Spanish and desire to do things himself strikes a responsive chord and produces an extra effort on the part of bureaucrats to help him. Ron is unique in this regard. Speaking Spanish, in most instances, is imperative for successfully running a business in Mexico. Entrepreneurs, who do not speak Spanish can choose a total immersion program from one of the hundreds of fine foreign language schools throughout Mexico. My clients have typically become fluent within six weeks of training.

Exploiting governmental resources

If you are a U.S. citizen the first agency to contact would be the department of trade in your state. Somebody in the state commerce or economic development department has the responsibility for advising you on commerce with Mexico. The Small Business Administration has computerized training programs on international trade and, in the Western United States, have folks who are knowledgeable about trade between the U.S. and Mexico. These agencies are a good resource for identifying educational opportunities close to your home and typically have someone they work with on the Mexican side of the border to refer to as well.

Another important resource, already mentioned, is the U.S./MEXICO Chamber of Commerce with offices in most major cities throughout the U.S.. In Mexico BANCOMEXT is the trade bank with offices in the major cities, i.e., Tijuana. They are are staffed with english speaking investment counselors and provide a library with directories to help foreign investors find suppliers and or joint venture partner candidates in specific industrial sectors. Bancomext also provides guidance in seeking loans for international trade ventures.

Most small investors who seek my help are usually not investing out of a singular desire to do business. They are mostly motivated by a love of Baja where they have spent great vacations and want to spend more or all of their time here. My advice is to proceed slowly. Try living for a while in the area you have selected for your future Mexican home and spend some time talking to Mexican officials at the state and municipal levels to determine their attitude toward foreign investors. Also, seek out foreign and native entrepreneurs in the area to test out your business ideas and seek their advice on market feasibility and potential problems.

Living and doing business in Mexico area, over an extended period of time, is always quite different than vacationing there. You may discover the area is too remote and lacking in services to fill your long term needs either business or personal.

I am more than happy about my decision to move to Ensenada, where my first investment was a vacation home. I soon realized when my "getaway" became my primary home that my beach property, with no nearby business services, was too remote a location. I also learned that it was great living there on holidays but not on a permanent basis - (too quiet for this Oakland homeboy), so I ended up renting an apartment in town.

Being close to international business resources is important when doing due diligence. For prospective foreign investors the following resources are available in Mexico: State Economic Development and Tourism, Department of Foreign Investment (if considering a tourism related business), bankers and of course lawyers and accountants recommended by foreign entrepreneurs and government officials. Other agencies to solicit counsel from are Mexican chambers of commerce: CANACO, for retailers; CANACINTRA, industrialists; COTUCO, tourism; and an Association called COPARMEX, a small business organization to assist small to medium sized businesses in Mexico. COPARMEX can help with legal, accounting, and bilingual personnel selection and training. All of these agencies have offices in major Mexican cities.

TAKE YOUR TIME, DO YOUR HOMEWORK AND SELECT PROFESSIONALS CAREFULLY and like any business anywhere - LOTS OF LUCK!

Healing sanctuary does good works in Mexican village

2007-03-26T12:35:00.000-06:00

Mar de Jade offers foreign visitors a unique space to rejuvenate and relax -- and to perform service

Nick Gallo, For Vancouver Sun;
West News Service
Published: Saturday, January 28, 2006
Article tools

Fluent in English and Spanish, she's besieged with entreaties in both languages. A California guest wants to discuss a videotaping project. A Mexican mask maker appears, hoping to sell crafts. Then a barefoot villager approaches, needing help for an infection. "Tetracyclina," says del Valle, rushing off to find antibiotics. Finally, my curiosity piqued, I join the line of beseechers: "So, Laura," I ask, "what's your story?"

Thus, del Valle launches into her experiences at Chacala. A family physician who grew up in Chicago and Mexico City, she was travelling on vacation in the early '80s when she discovered Chacala, then an isolated settlement of fishermen who lived on ejido, or communal, land. A one-acre plot was for sale, which Del Valle snapped up.

Eager to practise community medicine, she used a blend of western medicine and wholistic methods to treat villagers out of a palapa shack. Local farmers believed she possessed the powers of a curandera, a healer who can cast spells. Del Valle didn't dissuade them, approving of traditional healing rituals, such as boiling herbs by the light of the moon.

In the early '90s, del Valle began to modernize Mar de Jade, putting in a well, electricity and the first modern guesthouse. Additions followed every few years. A lifelong Zen Buddhist, del Valle built a meditation hall in 1994 and found Zen teachers such as Norman Fischer of the San Francisco Zen Center to conduct group retreats.

Passionate and visionary, del Valle was creating something new in the wilderness: a combination vacation spot, spiritual retreat and community-immersion experience. Soon, alternative-minded travellers were arriving for yoga workshops and human-potential sessions.

Guests volunteered at the health clinic, founded a library in the village and pioneered Techos de Mexico, a program that helps villagers generate income by renting out rooms to tourists. "We've had a lot of really good-hearted people stay here -- people who want to make a difference," says del Valle.

Today, many travellers continue along that path, but things are evolving.

"We've always tried to strike a balance between learning and serving with relaxing and enjoying," del Valle says, breaking into a smile: "Self-renewal takes different forms."

The next morning, I awake clear-headed and fever-free, ready to rejoin the human race.
IF YOU GO:

- Travel: The closest international airport to Chacala is in Puerto Vallarta. Rental cars are available for the 90-minute drive north. Taxis cost $80 for up to four people. Northbound buses ($7) leave the Puerto Vallarta bus station, about a kilometre north of the airport, and stop at Las Varas. Grab a taxi ($10) in Las Varas for the 15-minute ride to Chacala.

- Accommodation: Mar de Jade offers spacious suites and guest rooms that start at $200/night US for two people, which includes three meals per day per person. Contact www.mardejade.com; toll-free, 1-800-257-0532. Inexpensive bungalows for rent through Techos de Mexico (www.playachacala.com).

- Retreat: The Praxis Spiritual Centre of B.C. will hold a Meditation and Creative Spirit retreat at Mar de Jade Feb. 25 to March 1. Participants will learn a simple, integrated daily meditation practice and participate in creative arts activities. Tuition is $650 US. Seven nights accommodation and three meals/day cost $700 US. Phone 1-250-860-5686, e-mail infopraxiscentre.ca or visit www.praxiscentre.ca.

FOLLOW THE READER: Mexican resort: Good time and good works

2007-03-26T12:30:00.000-06:00

Sunday, March 26, 2006

My wife and I had a wonderful vacation on the Pacific Coast of Mexico. The resort of Mar de Jade is on Playa Chacala, about 1 1/2 hours north of Puerto Vallarta, on the edge of a jungle that has overgrown the volcanic landscape. We read about it in Moon Handbooks' Pacific Mexico book.

The resort has a beautiful ocean beach, swimming pool, hammocks, lovely rooms, healthy food, interesting guests, helpful management, optional daily excursions, Spanish lessons, yoga or just relaxing, all at a reasonable cost. The resort welcomes groups that have a common interest, such as yoga or singing or meditation.

Mar de Jade is owned by Laura del Valle, a Mexican doctor who established a rural health clinic with the aid of the income generated by the resort. She also runs a free after-school program for children who get a meal and care through the afternoon hours. She plans to generate work for local woman in this small community, which has no luxury hotels, restaurants, boutiques or crowds. She also offers a unique way of celebrating birthdays that you will have to find out about on your own, but that I experienced.

Del Valle is looking for volunteer help at both the clinic and the resort, and offers a discount for a few hours of work a day. Whether you just relax like we did or actually volunteer, you salve your social conscience and contribute to the welfare of the region. It's much better than a tax deduction.

Doubles start at $200 per night plus 10 percent room tax, including accommodations for two and three buffet-style meals per day.

Contact: PMB 078-344, 827 Union Pacific, Laredo, TX 78045-9452. (800) 257-0532, http://www.mardejade.com/.

Chacala: A hidden paradise on the Pacific coast

2007-03-26T12:12:00.000-06:00

By: Nicolás Treido

The south coast of Nayarit is covered with points, bays and inlets with some outstanding rugged slopes. The sierra is close to the shoreline and it sometimes seems to be tossed in the waves.

Chacala is one of the most beautiful beaches along this coast and unlike many of the others, it does not have a mosquito problem.

There are several almost virgin beaches on the Pacific coast of Nayarit that are possible to access almost all year round, however, some are quite difficult to get to during the rainy season.
Chacala beach is surrounded by palm trees, and as one goes deeper into the jungle there are mahogany, parote, rosamorada and other exotic trees, as well as mango and banana orchards.
As you walk through the jungle, you can see the occasional beaver, armadillo, puma, ocelot and rattlesnake, as well as innumerable species of tropical birds.

Chacalilla beach is less than 1 km from Chacala beach; this is the perfect place for swimming, snorkeling and kayaking.

But apart from Chacala’s natural attributes, the most important offering it has is its people. They are hardworking, enterprising and have a pioneer spirit. A good example is Doctor Laura Del Valle who arrived here some twenty years ago. Today, she is the manager of Mar de Jade, a small inn, whose main house facing the sea is built in the Mediterranean style. The good doctor tells us that the place was built in the spirit of social labor and as a sign of gratitude for the natural surroundings.

“Mar de Jade is a unique experience for those who want to live simply in a beautiful tropical paradise”.

She adds: “The funds it generates and the donations given by some of the visitors allowed us to open a clinic in Las Varas, in a building donated by the Municipality.” Another interesting point is that all houses in Chacala are built with an extra bedroom for receiving visitors. Mr. Del Valle, who came up with this idea, says: “This project is not only to do with building houses; it’s about building a new life for the town, so that the inhabitants are able to build a future for themselves. This project encourages the people to stay in the town and earn a little bit more money from their guest room. The owners are given hotel training so that they can administer the renting of the rooms.

Developing a town and making money does not have to destroy the environment. This project seeks to develop the economy of the town and make it self-sustainable. A community with economic resources and good planning is a community able to dispose of its garbage, install drains, drinking water or simply attend to nature, which is what makes the place so attractive.

“Techos de México” (Roofs of Mexico) is a franchise whose objective is to obtain financing and to organize and train the local community so that it is able to obtain the benefits of the tourism market and promote community tourism services.

We are very grateful to all those who have made contributions to the common fund and who have made interest-free loans.”

Chacala is a good example of how the community can become involved in a tourism project and how an infrastructure can be built.

There are various different options for accommodation in this beautiful spot on the Nayarit coast: there are the community rooms, if you want to mix with the local families; there’s the Mar de Jade or the Casa del Agua, at the extreme south end of the beach; here the architecture blends in perfectly with the natural contours of the land.

There are superb views from here of the sea through the palm, fig and the other tropical trees. Given all this, we strongly recommend this small, tranquil paradise for a restful vacation and for its delicious seafood and fish dishes.

Passport woes foiling travel plans abroad

2007-03-26T12:04:00.000-06:00

By Mary Garrigan, Journal staff

A new mega-processing passport center capable of producing 10 million of the travel documents annually opens in Arkansas in April, but it comes two months too late to save the Mexican vacation plans of one Hill City family.

Jeff Parker of Rapid City talks with Carole Coon about the waiting period for passports Wednesday afternoon at the Post Office in Rapid City. The current waiting period for U.S. passports is 10 to 12 weeks.

“We wanted to take the kids to Mexico,” Bill Kilcoin said last week of his family’s planned March 10 vacation to Puerto Vallarta that had to be postponed and rescheduled when high demand for U.S. passports left three of their seven-member vacation party without the necessary travel documents.

The number of Americans applying for passports has increased dramatically since Congress passed the Western Hemisphere Travel Initiative, an anti-terrorism measure which requires that Americans have passports to re-enter the country when they travel by air from Mexico or Canada. People may still travel to those countries by car or cruise ship without a passport, but in 2008 that will change, too, according to local travel agent Jeanie Peterson of AAA Travel.

A deluge of applications that began in January and continues through April as college students made plans for spring break and tourists gear up for the summer travel season is causing unprecedented delays in the processing time.

“It’s taking up to 12 weeks to get a passport, and the closer we get to summer, the worse it may get,” Peterson said. “Expediting it still takes two weeks or more. We used to get them in three to four days.”

The State Department tells travelers to allow eight to 10 weeks for routine processing, and three to four weeks for expedited processing. Passport guidelines used to advise a six-week or two-week wait, depending on the processing fee paid.

The application fee for a new passport for ages 16 and older is $97. It is good for 10 years. The fee to expedite service is an additional $60, plus delivery fees.

Paying the extra expediting fee did not help the Kilcoins with their passport problems.
Bill and Linda Kilcoin got the first passports of their lives issued in January after only a 10-day wait, in plenty of time for a trip to Jamaica. But when they sent in passport applications on Feb. 9 for their children and granddaughter who they wanted to take to Mexico, they ran into bottlenecks in the system.

With a March 10 departure date looming and no passports in sight, the Kilcoins were advised by the Seattle passport agency to reapply for expedited passports. “A guy there said he would hand carry the applications where they needed to go and have them back to us in 48 hours,” Kilcoin said.

They did as instructed, and also rescheduled their airline reservations for a later date, at a cost of $150 per ticket for seven people. Then they waited for the missing documents to arrive in the mail.

“We got to know the night clerks and staff at the post office passport office very well,” said Kilcoin. “They were just bending over backward to get us our passports. The Rapid City post office was really very helpful.”

Despite the expedited processing, the documents still did not arrive in time for a March 12 flight.
“We got the passports on March 14,” Kilcoin said. “There must have been a hell of an influx in February, with everybody looking to go on spring break. They had to have just got swamped.”

Kilcoin said the Seattle passport agency blamed the bottleneck on a Los Angeles bank that has the contract to handle the checks and fees, but he thinks the State Department should not make new passport rules unless it can handle the resulting influx.

“Uncle Sam’s saying, ‘It ain’t our fault.” They can blame a private contractor for the bottleneck,” he said.

To handle demand, the National Passport Center is operating 24 hours per day in three shifts, and its 16 passport agencies are all working overtime. The NPC has hired more than 250 passport adjudicators in the last two years, and will hire an additional 86 this year. In March, 49 new adjudicators joined the staff. The new Arkansas facility is expected to alleviate backlogs.

Peterson predicts passport headaches will continue for the next year or two, as passports become routine for Americans. So many Americans drive across borders for recreation or medical reasons and, eventually, everyone will need a passport. “It’s coming. One day, all Americans will have a passport, just like Europeans do,” she said.

As peak travel times approach, Peterson warned that “this is only going to get worse” and advises travelers to plan ahead. The increased volume also increases the chance for human errors on the documents.

“When you get your passport back, we’re telling people to check everything on it to be sure it is correct,” she said. One female customer found her passport listed her gender as male.

Passport delays have not scared people away from travel, however.

“Our business is way up this year,” Peterson said.

The Kilcoins still plan to cross the border.

Despite the aggravation and expense of paying more money for a shorter vacation, the Kilcoin family is heading to Puerto Vallarta on April 6.

Have passport, will travel.

Nervous Nellie vs. Mr. Wing-It

2007-03-26T11:42:00.000-06:00

One couple, two conflicting approaches to travel: Can this Mexican vacation be saved?

By M.L. Lyke
Special to The Washington Post
Sunday, March 25, 2007; Page P01

I never thought of myself as a travel wuss, but there I was, busted, browsing for rentals at an Internet cafe in the little Mexican tourist town of Rincon de Guayabitos.

"Get off!" said my road partner, Bob, the man who loves nothing better than tooling down a Mexican highway on a local bus, prepared for nothing but the next big adventure. No itinerary, no plans, no reservations. That's travel heaven for Mr. Wing-It.

For me, it's travel hell. I'm a need-to-know girl.

We cut a deal. We had two weeks in Mexico to tour the sweet little beach towns north of Puerto Vallarta. The first week, we did it my way, staying at a multi-story villa in the surfing town of Sayulita with three other couples. Our friend Jay -- an uber-organizer who actually logs the contents of his freezer on a computer spreadsheet -- booked the stuccoed manse a year in advance. By Day 2, we were already planning breakfasts and dinners for the rest of the week. We had grocery lists, a book to tally expenses and Jay to work them out to the peso.

It was safe, comfy, predictable, right down to 5 o'clock happy hour. Guacamole, chips, margaritas, every night. The only variable was peanuts.

Everything was under control, including me. I'd taken precautionary antibiotics -- all I have to do is look at a map of Mexico to get turista -- and had an extra-large bottle of spray-on sunscreen. I arose every morning at 9 a.m. to watch the surf heave, crest and break below, then stretched, sipped coffee and lost myself in a novel.

Ahhh. The beauty of routine.

On Day 7, I kissed it all goodbye. It was Bob's turn.

* * *
Our friends taxied south to the Puerto Vallarta airport, dropping us off on the side of coastal Highway 200 to catch a bus north to . . . "Where exactly are we going, Bob?"

I believe, as we stood by the road, dusty, sweating in the midday heat, he said, "Trust me."

Maybe it was "Don't worry, be happy."

When the bus finally came, I bumbled on with my duffel and backpack. Old men reached up to help me with the bags. Young girls smiled, patting the seats next to them. "Hola." "Gracias." It was a bath of Mexican goodwill. I tried to relax, but questions niggled the Nervous Nellie inside me as we rattled up the highway on a Saturday afternoon toward Rincon de Guayabitos. It would be weekend, high season, in a hopping tourist beach town. Would there be room at the inn? Or would we end up in some cockroach-infested room with sagging mattresses, stained sheets and a view of the town dump?

Couldn't we just, like, call ahead?

I love planning trips. Browsing online on a gray winter day, I picture myself swinging in a hammock in the exotic Mexican garden spa found on Hotels.com, or catching the warmth of first morning sun through the arched windows of the cliffside condo on Vacation Rentals by Owner.

That's fantasyland to Bob. He likes his investigations on-site, eyeball to keyhole, and that's what we did after we stepped off the bus in Rincon, into the hotel zone. Boy, was I wrong. "Si Vacantes" signs were everywhere along the oceanfront. Nellie had a home for the night.

Our unit at Bungalows Anai, recommended in the guide, wasn't cheap for Mexico -- about $75 a night -- and it wasn't fancy. The light fixtures were crooked, the refrigerator rusted, the faucets oxidized and the glasses chipped. But the place was clean, with air conditioning and fans, and we had a nice view across a manicured garden and a pool to the busy beach, where vendors pedaled bicycle carts full of inflatable water toys and skewered shrimp, and volleyball players set and spiked. Water-bike hot-doggers made roostertails in the surf, the machine whine mingling with the tinkle of ice cream carts and the distant buh-boom of rap blasting from trucks cruising the main drag.

If Sayulita was Laguna Beach, this was Coney Island. We were soon longing for seclusion, peace and quiet.

Bob pulled out his Lonely Planet guide, and his finger drifted north to Chacala, a fishing town on a cup of a bay surrounded by jungle. It was tiny, a speck, a guidebook paragraph -- so remote it didn't even merit a turn-off sign on the main highway. I was convinced we didn't have a chance at finding an empty room. And that's when I sneaked onto the computer in a Rincon Internet cafe and got busted.

Bob looked at me with a mix of sympathy and disgust. He may have used the word "cheater."

Contrite, I clocked off the computer, waved down a taxi and away we rumbled, leaving behind the buh-boom and blow-up beach toys and heading north into the lush groves of mango and jackfruit that crawled up the sides of an ancient boulder-strewn volcano overlooking remote Chacala Bay.

Six miles off the main highway, the taxi dropped us off on the dirt road serving as Chacala's main drag, in front of a deeply tanned couple who looked bemused when I asked them, a bit anxiously, if there was anywhere to stay in the town.

They pointed at the cobbled side streets above us, to a hotel, condo rentals, the half-dozen Mexican homes that take in tourists. They pointed down the beach to a holistic retreat center called Mar de Jade. "There, and there, and there." Then they pointed to a place about 20 steps away. "And here."

"Here" turned out to be a sweet beachside hotel called Las Brisas. "A hole diferent Vacations"(sic) read the hotel's brochure, in English translation.

For about $55 a night, we had a humble but pleasant little room with air conditioning, a DVD player and free movies, and two comfy queen-size beds. Downstairs, under the thatched roof, was a full bar, with good selection and generous pours, and a restaurant that served huevos rancheros for breakfast; fish, shrimp and lobster fresh off the boats for dinner. We ate barefoot, toes curling in the sand.

Las Brisas drew a crew of regulars from Canada and the States who set up every day on the loungers out front, deep-tanning, working crosswords, splashing in the gentle surf -- one called it a "kiddie pool" -- and spending long hours staring across the fine golden beach and out to sea. Looking at what?

Maybe big waves, ships, whales. Maybe, after the second cerveza, marlin and mermaids. Maybe, after three, old loves and lost lives.

I soon unfolded onto a lounger in this unexpected paradise and joined them in the Long Watch, eyes glued, mind unglued. As hours turned into days, and days melted away, I found myself mulling the nature of travel. I thought about all the great wanderers through time: Odysseus, Marco Polo, Kerouac, Frodo. I thought about the thrill of discovery that attends the adventurer, about the differences between trips and journeys, between tourists and travelers, between those who need to know and those who let it go.

* * *

I finally put niggling Nellie to rest on Day 5 of Week 2 during a crazy side trip that started with an early-afternoon taxi-dash to nearby Las Varas for a look around. Once there, we spotted the big bus station across the main highway. We wandered inside and, for the heck of it, plopped down 50 pesos each to bus it to the inland colonial capital city of Tepic.

We thought the trip might take a half-hour. It took almost two. I started worrying: We'd have to return in the dark, the buses wouldn't be running, we'd never find a cab back to Chacala from the station.

I was alternately chewing on my fingernails and gazing at my watch when I suddenly stopped and actually looked out the window at the beauty passing by. There were lush jungles, fields of sugar cane, rugged volcanic peaks. I saw pretty little towns with walls painted bus yellow and rose red. I saw bullrings and cemeteries with giant white crosses and pink memorial wreaths still wrapped in plastic. There were big blue birds with long tails and lush green trees fruited with tangerines.

There was a world going by, begging my attention.

And it didn't require advance booking.

I took a deep breath and settled in. Finally, I got it. I wasn't a hundred miles down the highway heading home; I was here, on a bus, off the clock, going nowhere in particular.

In all my fretting over the future, I'd been missing out on the romance of the moment.

We arrived in Tepic about 3 p.m. and quickly caught a taxi to the Plaza Principal, a town square surrounded by stately stucco buildings from the 1800s and a large neo-Gothic cathedral, dedicated in 1750. At one end of the plaza, we found shy Huichol artists, down from the mountains, selling intricate beaded masks and shamanistic yarn paintings at prices half those in Sayulita galleries. On recommendation of a government guard, we climbed up to the roof of a 200-year-old hotel to dine on velvety filet mignon in an excellent open-air restaurant, La Gloria, overlooking the town square.

Down below, as the sun set and the old wrought-iron lamps went on, couples gathered, a mariachi band began to play and dancers in big ruffled skirts and hand-tooled cowboy boots high-stepped and twirled in the fading light. We wandered down, and I, too, found myself dancing in the dark, not giving a thought to when, or if, we would ever get back.

We did, easily enough. The buses ran. The taxis were waiting at the station. I arrived back in little Chacala feeling light, liberated, ready for more adventure.

Mr. Wing-It caught my smile and couldn't help putting in the last word.

"See?" he said. "It all works out."

M.L. Lyke last wrote for Travel about La Manzanilla, Mexico.

Apple Vacations Honored by the Government of Nayarit, Mexico

2007-03-26T11:34:00.000-06:00

Riviera Nayarit Poised to Become a Premier Vacation Destination

PHILADELPHIA, March 22 /PRNewswire/ -- Apple Vacations, the nation's leading tour operator to Mexico, was honored this week for its contributions to tourism development in Mexico, specifically in the State of Nayarit, located just north of Puerto Vallarta on the central West Coast of Mexico. The award was presented by Governor Ney Gonzalez Sanchez of the State of Nayarit, which is poised to become the one of the leading new tourism destinations in Mexico.

Receiving the accolades, Apple Vacations' Chairman and C.E.O. John Mullen noted the tremendous growth opportunities for travel to this developing region of Mexico. "With the continued planned development in this emerging vacation destination, Apple Vacations will support the State of Nayarit with a commitment to double the number of passengers to the region within the next five years." Part of the support includes an increase in the number of dedicated charter flights from U.S. cities to Western Mexico, and plans to offer new nonstop flying from East Coast gateways including Philadelphia and Baltimore. This is in addition to nearly 20 weekly flights from Cleveland, Chicago, Minneapolis, Detroit, Milwaukee, St. Louis, and Dallas.

The visit to Philadelphia by Governor Sanchez and other state officials, including the Minister of Tourism, marked the official launch of a major initiative, the introduction of a distinct new tourism region known as Riviera Nayarit.

Riviera Nayarit, just north of world-famous Puerto Vallarta on the Pacific Coast, is largely undeveloped and is being carefully planned to ensure the natural resources are protected.

Stretching from Punta de Mita all the way to the ancient fortress of San Blas, Riviera Nayarit provides a more laid back vacation experience. Eco-tourists can discover mangroves and habitats for hundreds of birds, dolphins and sea turtles. Accommodations are built with the utmost care in preserving the ecosystem, and range from quaint posadas on the beach to upscale luxury resorts. Activities include its world-renowned surfing, shopping at boutiques featuring local artwork and traditional handicrafts, golf, whale watching, hiking, horseback riding, and endless miles of unspoiled beaches and golden coastline waiting to be discovered.

"The tourism development in Riviera Nayarit is on par with what we saw happen in Quintana Roo, with the development of Riviera Maya over a decade ago," said Mullen. "This is where vacationers will want to go -- it is the 'new' Mexico and Apple Vacations plans to be at the forefront of bringing passengers to this exciting, up and coming region."

About Apple Vacations

For nearly 40 years, Apple Vacations has provided convenient, affordable vacation packages from all major U.S. cities to the most popular sun destinations. Apple Vacations was the first tour operator to deliver one million passengers to Mexico in the early 1990s. In 2006, Travel Weekly named Apple Vacations Best Tour Operator to Mexico. For more information about vacations to Mexico, visit http://sev.prnewswire.com/travel/20070322/CGTH03822032007-1.html# .

If you go: Chacala, Mexico

2007-03-22T11:53:00.000-06:00

GETTING THERE

To go to Chacala from Puerto Vallarta, a taxi is easiest and costs $80-90, one-way. (It's a 90-minute drive.) Or for a fraction of that you can take a bus from the airport up Highway 200 to the neighboring town of Las Varas, then catch a collectivo vehicle to Chacala. Or you can rent a car at the Puerto Vallarta airport; all the major rental-car companies are there.

LODGING

Chacala Vacation Rentals, 760-300-3908, www. casapacifica chacala.com. Several luxurious houses in the gated Marina Chacala development are available for short-term rental, from $150 (for a one-bedroom unit) to $625 per night (for Villa Tesseri, which includes a house and guest house, sleeps 10 to 12 and features a swimming pool and a commanding view).

Majahua, on the beachfront (011-52-327- 219-4055, www.majahua. com), has four "suite" units (one has two bedrooms and two bathrooms) in a pair of buildings on a jungle slope down to the beach. Uneven paths make it risky for children and anyone with mobility problems, but the secluded setting and spa attract yoga groups and other escapists. Breakfast included. $110-$300 per suite nightly.

Mar de Jade, on the beachfront (800-257-0532; www.mardejade.com), has 30 units, neighbored by garden, pool and beach. Units have no phones or TVs, and most are fan-cooled, although air conditioning will be added to a few rooms this year. Family-friendly. Spa facilities. Three kayaks. Meals included in rates. Winter rates $110-$135 per person per day, based on double occupancy, or $135-$180 per day for singles.

Casa Chacala (Golfo de Mexico street, 011-52-327- 219-4057; www.casa chacala.com) opened three years ago with six units and a pool. Has air conditioning (a rarity), and word is that televisions are coming. Doubles begin at $50.

Several other hotels fall into this general class, the largest and newest being the 18-room Hotel Paraiso Escondido (also on Golfo de Mexico; 011-52-327-219- 4098, www.paraiso escondidochacala.com). Doubles start at $70.

The Techos de Mexico program (www.techosde mexico.com or www.chacala budget rentals.blogspot .com) has rooms priced at $22.50-$60 nightly. Most include kitchenettes and terraces with ocean views; all are within five minutes' walk to the beach, but housekeeping, telephone access and billing practices vary. Not much English is spoken.

EATING

Majahua has no roof and a pebble floor, but it's the fanciest restaurant in town, open for breakfast, lunch and dinner. Main courses $6-$13.

Las Brisas, beachfront, is a favorite with English speakers. Main dishes $5.50-$18.
Mauna Kea Cafe, on Los Corchos, just off Islas Marias, is a breakfast spot (8-10 a.m.). Prices $4.50-$7.

Beyonce and Jay Z's Mexican Holiday

2007-03-21T15:35:00.000-06:00

It pays to be Jay Z. Oh, in so many ways, it pays.
Not only is the man loaded on his own, but his girlfriend is rich, too, and she recently used her hard-earned dough to treat him to a vacation.

Vacation from what? The hard work of getting richer, we guess.

Beyonce whisked Jay off to Mexico earlier this month to see "his favorite group" Coldplay perform in Mexico City and for a little bit of beach time. They reportedly dropped $11,000 a night on a villa--a stand-alone private residence, perhaps, but more likely one belonging to the Four Seasons in town.

The resort has private villas in the hillside and by the beach. They're not so forthcoming with prices on the web, which means the cost could easily be up there in the $11,000 range.

Punta Mita is on Mexico's Pacific Coast, 45 minutes from the mouthful that is Licenciado Gustavo Díaz Ordaz International Airport in Puerto Vallarta.

Idyllic resort, rooted in real life

2007-03-19T12:53:00.000-06:00

Christopher Reynolds, Los Angeles Times

CHACALA, MEXICO - Sure, there's a great beach here, fresh fish, tall palms and only about 400 locals to share them with. But let's start with the treachery and deception.

"You wouldn't believe the snakes," says Ben Laird, a Wisconsonite who bought a vacation home here last year. "Snakes as big as your head."

"People are poisoned in Chacala every day," deadpans Richard Laskin of Hornby Island, British Columbia, who has been coming here for 10 years.

"Are you sure that was a whale?" asks Laskin's friend Stu Reid, gazing offshore. "Could have been drums of toxic material."

Then -- having done their best to deter the reading public from invading their winter haven -- these good-natured liars go back to their tropical idylls. Laskin and Reid tuck into their breakfast at the Mauna Kea Cafe, one of about 10 restaurants in Chacala, as they gaze down on a canopy of green, a deep blue sea and a few dozen pelicans swoop-commuting.

The truth about Chacala is indeed intriguing, especially for a traveler who wants to meet Mexicans while vacationing in Mexico, who likes his coconuts straight from the tree, and who doesn't need the bright lights of Cancun.

Chacala, a village 60 miles north of Puerto Vallarta on Mexico's Pacific Coast, is built around the beach, a handsome half-mile crescent of jungle-adjacent sand. At the southern end of the beach, gentle surf murmurs over volcanic rocks. In the middle of the crescent, a half-dozen palm-shaded restaurants serve fresh fish and shrimp. To the north, two dozen battered fishing boats are tied to a modest dock.

In town, several lodgings have popped up in the past few years, most offering ocean views, modest amenities and nightly rates from $50 to $90. A little farther north, more than two dozen luxury vacation homes, some of which rent by the night, have gone up in a gated compound called Marina Chacala.

The big difference

What sets Chacala apart from so many other modest but growing Mexican beach destinations is this: Thanks to the arrival of three hippie siblings at the end of the 1970s, the town is awash in social experiments, many built around the idea that locals and tourists need to meet and learn from one another.

Under one 11-year-old program, called Techos de Mexico (Roofs of Mexico), a half-dozen villagers have added upstairs rooms and terraces, most with ocean views. When not snapped up for the season by wintering Canadians, most of the rooms rent for $22.50 to $60 a night.

Tourists can volunteer on community projects, attend yoga or meditation seminars or learn Spanish at a 24-year-old beachfront retreat called Mar de Jade, which in winter is usually priced at $120 to $135 per person per night, double occupancy, meals included.

Still other visitors and expatriates have bankrolled a community library, paid for improvements at the elementary school and developed a scholarship program that underwrites the transportation, books, uniforms and other education costs of more than two dozen local youths.

(The public schools in Chacala stop at secondary school, and high school diplomas are as rare as air conditioning.)

But you don't have to volunteer. Instead, you can spend $50 a night on a hotel room with an ocean view and lie around. Or spend $625 a night on a mansion that sleeps 10 and lie around in splendor.

You can take a $10-per-person boat trip to snorkel by the rocks off Chacalilla beach. You can fish for dorado or sierra or surf at La Caleta Point. You can kayak between rock formations and secluded beaches, go birding in a mangrove swamp to the north or drive half an hour east to the petroglyphs at Alta Vista.

You can ride a horse through jungle to a secluded beach or drive about two hours into the hills and see Lake Santa Maria, its waters collected in the caldera of an ancient volcano. Or you can stroll on that grand crescent of sand.

"Some nights, the sunsets just tear your heart out," says Andee Carlsson, who moved here three years ago from Washington state. Carlsson, who rents a room in one of the Techos houses, said she came because it was affordable and the gardening was year-round. She stays because "the people here make me feel good," she says. "People just help you out, and you get to help people out."

Until the first paved road connected the village to Highway 200 seven years ago, the only way into Chacala was by dirt road or boat.

I arrived after a three-hour flight from Los Angeles to Puerto Vallarta, then a 90-minute ride, and my first thought, rolling into town, was, "Uh-oh." Two blocks of dirt roads, sleeping dogs and ramshackle storefronts. That was the commercial district.

Ahhh, but then I stepped out to the beach. It was nearly empty, a slight breeze blowing. The tall palms, the quiet, the loop of the beach between the rocky points at either end -- this was a landscape to banish worry.

"It's still real Mexico down there," said Laird, he of the imaginary snakes, gazing at the town from his hilltop home in Marina Chacala. "Chickens at your feet. And everybody knows everybody."

Yet it's growing by the day, and there's all this experimentation.

The implausible dream

By many measures, Chacala's modern history began 27 years ago, when Laura, Om and Jose Enrique del Valle arrived from Mexico City in pursuit of an implausible dream: On a patch of land at the southern end of the beach, they would build a retreat for foreigners that would boost cultural understanding and support a rural medical clinic.

Operating out of an old school bus, they put up eight rooms with shared bathrooms, light provided by candles and lamps, refrigeration by ice blocks. They called it Mar de Jade.

The partnership didn't last. But the business has. These days, Mar de Jade could pass for a rich man's vacation compound. Surrounded by gardens, it has 30 rooms, a spa, a couple of big meeting rooms, a shaded patio that seats 50 or so, a palm-shaded pool, a prime spot on the beach -- and a medical clinic in nearby Las Varas that often draws volunteers from the numbers of medical professionals and students staying at Mar de Jade. Laura del Valle, a 56-year-old physician raised in Chicago and Mexico City, owns Mar de Jade and runs it with her 21-year-old daughter, Angelica.

These days, they house mostly med students and other volunteers in summer and mostly vacationing couples, families and groups in winter.

Laura's half brother, Jose Enrique, has carved out his own niche on 2 1/2 acres next to Mar de Jade.

Drawing on his background as a builder, civil engineer and former tour guide, he and his wife, Carmen, built and opened Majahua, a four-room boutique hotel, spa and restaurant on a jungle slope, in 1996. It's the only lodging in town where you're likely to hear American jazz on the stereo, order a Mediterranean salad or wash your hands in one of those stone-bowl sinks you see in design magazines.

But it remains a jungle enterprise: Indoors or out, you may spy a spider or two. You spend a fair amount of time navigating the footpaths that connect the guest rooms to the dining area, and the dining area to the beach. And if the hot water runs out during your shower, that'll be because the propane tank has run out and it's time for somebody to lug a full one up the hill.

To many in town, Jose Enrique del Valle is best known as the coordinator of Techos de Mexico. Started in 1996, inspired by the work of Habitat for Humanity and largely bankrolled by donations from the north, it's a construction-loan program to connect villagers with tourists and their dollars.

So far, the program has built four houses and expanded three others, spending $4,000 to $9,800 on each project. Three landlords have already paid off their loans.

The only real downside, says Jose Enrique del Valle, now 50, is that "it's a lot of work. I'm exhausted."

But as the renovated schools and the library near the middle of town demonstrate, more activists have arrived in the Del Valles' wake. One is Susana Escobido, who runs the Mauna Kea Cafe with her husband, Poncie, rents out a few rooms by the month, sells homes in the Marina Chacala development and is co-founder of Cambiando Vidas (Changing Lives; http://www.chacala.org)/ which spends about $40,000 yearly to boost local schools, underwrite a learning center and fund scholarships.

A boom in visitors might well boost local living standards. But many repeat visitors and locals say that if the wider world learns more about this place, the wider world will elbow its way in, change it beyond recognition and cut the locals out of the action.

So plenty of eyes are watching the state-owned RV park at the edge of the beach, where a would-be buyer has proposed condos, and Marina Chacala, where unbuilt lots are priced at $200,000 and up. The developers there have already made enemies by blocking locals' access to a small beach that had been public.

My last morning here, I hiked up the old volcano slope behind Majahua, marveling at the thickening jungle.

The foliage around Chacala is thick partly because of a tree known as the strangling fig. It begins as a parasitic seed lodged in the trunk of a host tree, then sends tendrils down, hits dirt and starts growing like mad, first embracing then enveloping its host, zooming to 50 feet or more.

The figs love palm trees. And because Chacala is full of palms, it's also full of these tree couples in towering embrace. Reference books say the host trees usually die first, but locals say the entangled pair can grow and prosper together for years.

I'm glad to hear that, because when you take your beachfront seat to laze away a Chacala afternoon, you want to believe these palms and this place will last.

Entrepreneurial spirit on the Nayarit coast

2007-03-19T12:49:00.000-06:00

-- Christopher Reynolds
Posted March 18 2007

To many in town, Jose Enrique del Valle is best known as the coordinator of Techos de Mexico. Started in 1996, inspired by the work of Habitat for Humanity and largely bankrolled by donations from the north, it's a construction-loan program to connect villagers with tourists and their dollars.

So far, the program has built four houses and expanded three others, spending $4,000 to $9,800 on each project, splitting revenues between landlords and the loan fund. Three landlords have already paid off their loans, including Concha Velazquez, who told me that her family had been dependent on her husband's uncertain income as a fish merchant. They opened Casa Concha in 2001, paid off their loan three years later and have expanded to three rental rooms.
The only real downside, says Jose Enrique del Valle, now 50, is that "it's a lot of work. I'm exhausted."

But as the renovated schools and the library near the middle of town demonstrate, more activists have arrived in the Del Valles' wake. One is Susana Escobido, who runs the Mauna Kea Cafe with her husband Poncie, rents out a few rooms by the month, sells homes in the Marina Chacala development and is co-founder of Cambiando Vidas (Changing Lives; http://www.chacala.org/), which spends about $40,000 yearly (much of it raised among U.S. Rotarians) to boost local schools, underwrite a learning center and fund scholarships. Twenty-seven local youths are studying on scholarships right now, from eighth-graders to college students.

"The Nayarit coast is just exploding, whether we're ready for it or not," Escobido says. "We want to make Chacala a community of entrepreneurs."

Need a U.S. passport fast? Be prepared to pay

2007-03-19T12:27:00.000-06:00

By Jane Engle, Los Angeles Times Staff Writer
March 16, 2007 Related Stories

MARGARITA in hand, you are lounging on a stretch of sand near Puerto Vallarta, Mexico. Not a care in the world.

Except this: That's your dream, but the reality is that you don't have a current passport, and you're due to fly to Mexico in a month. Uh-oh. You'd better dump the drink and grab your checkbook — and the Alka-Seltzer. Trying to get a passport on short notice can be a nail-biter that costs hundreds of dollars — if you can get one at all.

Swamped by applications, caused partly by new rules that require passports for air travel to Mexico, the Caribbean and Canada, the State Department is taking longer to issue the documents.

Getting a passport can take 10 weeks instead of the usual six from the time you apply, officials said earlier this month. Even if you pay extra for expedited service, you may wait four weeks or more instead of the usual two.

And that's just the official estimate. Any number of problems — errors on the application form, computer breakdowns, weather that hinders mail delivery or staffing problems at processing centers — can stretch the wait, possibly forcing you to cancel your trip.

Even doing that costs money: Airlines may charge you $100 or more to change your ticket. For all these reasons, you should apply for or renew your passport at least three months before you go abroad, several experts told me.

Better yet, start the process now, even if you have no trips planned. After all, a passport is good for 10 years, and who knows when you might travel?

If you have less than six months left on your passport, renew it before your next trip, or you may be refused a visa or even turned back at the border by some countries, which worry that you'll overstay your welcome.

If you delay, costs can snowball. Here's the tally:

•$97: total government fees for a new passport for a traveler 16 or older; renewals are $67.

•$60: fee for expedited service, paid to U.S. passport agency.

•$45.78: estimated total fees for FedEx Standard Overnight two-way shipping between Los Angeles and the National Passport Processing Center in New Castle, Del. (Fees vary by company and date.)

This shipping method is recommended for expedited service.So far, we're up to $202.78 for a new passport and $172.78 for a renewal. But what if you need your passport sooner than three or four weeks?

You have two options. The State Department says that if you are scheduled to leave the country within 14 days, you can call its toll-free line, (877) 487-2778, to make an appointment at one of its Regional Passport Agencies, including one in Los Angeles. Making an appointment is free. But if you don't live near a regional office or can't get an appointment soon enough, your other option is to engage a private expediting company.

Such companies can help you get a passport more quickly. Their secret? Each passport agency allows expediters to file a certain number of rush applications per day on behalf of their clients. These applications may be processed in as little as a day, depending on the agency.

Expediting companies extract the final cha-ching from passport procrastinators.
•$99 and up: typical service fees by expediters. These vary by company and by how quickly you need your passport.Yikes!

By delaying, your $97 passport now costs more than $300. Whether to work with an expediter is a judgment call. Most big ones work mainly on contract with businesses and nonprofits, so as an individual client, you fall last on their list.

"We always take care of our top customers first," said Steven Diehl, vice president of business development for CIBT, one of the largest expediters, based in McLean, Va. "Then we take care of our retail clients, if we have any spaces left." Your $99 doesn't ensure that you'll get your passport on time, either.

"We give a guarantee on our services, but we can't guarantee the government's service," said Jan Dvorak, president of another big expediter, Travisa visa service, in Washington, D.C. He said his percentage rate of success in meeting deadlines was "in the high 90s."

When shopping for an expediter, ask how long it's been in business and whether it belongs to the National Assn. of Passport & Visa Services, www.napvs.org, a nonprofit trade group in Silver Spring, Md. (Not all companies belong, but many bigger ones do.)

2007-03-19T12:08:00.000-06:00

By Jane Engle, Los Angeles Times Staff Writer
March 16, 2007 Related Stories

Demand surge delays U.S. passport applications How to apply for a U.S. passport MARGARITA in hand, you are lounging on a stretch of sand near Puerto Vallarta, Mexico.

Not a care in the world. Except this: That's your dream, but the reality is that you don't have a current passport, and you're due to fly to Mexico in a month. Uh-oh. You'd better dump the drink and grab your checkbook — and the Alka-Seltzer. Trying to get a passport on short notice can be a nail-biter that costs hundreds of dollars — if you can get one at all.

Swamped by applications, caused partly by new rules that require passports for air travel to Mexico, the Caribbean and Canada, the State Department is taking longer to issue the documents.

Getting a passport can take 10 weeks instead of the usual six from the time you apply, officials said earlier this month. Even if you pay extra for expedited service, you may wait four weeks or more instead of the usual two.

And that's just the official estimate. Any number of problems — errors on the application form, computer breakdowns, weather that hinders mail delivery or staffing problems at processing centers — can stretch the wait, possibly forcing you to cancel your trip.

Even doing that costs money: Airlines may charge you $100 or more to change your ticket. For all these reasons, you should apply for or renew your passport at least three months before you go abroad, several experts told me. Better yet, start the process now, even if you have no trips planned.

After all, a passport is good for 10 years, and who knows when you might travel?

If you have less than six months left on your passport, renew it before your next trip, or you may be refused a visa or even turned back at the border by some countries, which worry that you'll overstay your welcome.

If you delay, costs can snowball. Here's the tally:

•$97: total government fees for a new passport for a traveler 16 or older; renewals are $67.

•$60: fee for expedited service, paid to U.S. passport agency.

•$45.78: estimated total fees for FedEx Standard Overnight two-way shipping between Los Angeles and the National Passport Processing Center in New Castle, Del. (Fees vary by company and date.)

This shipping method is recommended for expedited service.So far, we're up to $202.78 for a new passport and $172.78 for a renewal. But what if you need your passport sooner than three or four weeks?

You have two options. The State Department says that if you are scheduled to leave the country within 14 days, you can call its toll-free line, (877) 487-2778, to make an appointment at one of its Regional Passport Agencies, including one in Los Angeles. Making an appointment is free. But if you don't live near a regional office or can't get an appointment soon enough, your other option is to engage a private expediting company.

Such companies can help you get a passport more quickly.

Their secret? Each passport agency allows expediters to file a certain number of rush applications per day on behalf of their clients. These applications may be processed in as little as a day, depending on the agency.

Expediting companies extract the final cha-ching from passport procrastinators.

•$99 and up: typical service fees by expediters. These vary by company and by how quickly you need your passport.Yikes! By delaying, your $97 passport now costs more than $300. Whether to work with an expediter is a judgment call.

Most big ones work mainly on contract with businesses and nonprofits, so as an individual client, you fall last on their list. "We always take care of our top customers first," said Steven Diehl, vice president of business development for CIBT, one of the largest expediters, based in McLean, Va. "Then we take care of our retail clients, if we have any spaces left." Your $99 doesn't ensure that you'll get your passport on time, either.

"We give a guarantee on our services, but we can't guarantee the government's service," said Jan Dvorak, president of another big expediter, Travisa visa service, in Washington, D.C. He said his percentage rate of success in meeting deadlines was "in the high 90s."

When shopping for an expediter, ask how long it's been in business and whether it belongs to the National Assn. of Passport & Visa Services, www.napvs.org, a nonprofit trade group in Silver Spring, Md. (Not all companies belong, but many bigger ones do.)

Buying abroad: Mexico becomes a bit easier

2007-03-19T11:48:00.000-06:00

While it still can be an adventure, experts say that the process of buying property in Mexico has changed dramatically in recent years.

By Kevin Brass Published: March 15, 2007

Sarah Booth acknowledges that she was scared the first time she bought property in Mexico.

She had heard the stories of frauds and shady transactions, and her Spanish was limited to asking for restaurant checks. But two years ago she fell in love with a 45-square-meter, or 500- square-foot, condominium a block from the beach in Puerto Vallarta, which she bought for $115,000.

Now she owns three properties in Mexico.

"I just decided I'm going to risk it and jump in," said Booth, 38, a former property manager from Whistler, Canada. "You have to have a sense of adventure."

While it still can be an adventure, experts say that the process of buying property in Mexico has changed dramatically in recent years. Title insurance and the wide availability of mortgages have added a new level of security to transactions and encouraged an increase in the number of foreign buyers.
Buying abroad: Mexico becomes a bit easier
A Norman manse with theatrical élan
Stewart Title, which began offering title insurance in Mexico in 1993, has seen its Mexico business triple in the past three years, said Mitch Creekmore, senior vice president for business development at Stewart International and co- author with Tom Kelly of "Cashing In on a Second Home in Mexico."

But buying in Mexico still can be a complicated, frustrating process for the uninitiated, experts warn. Until recently, escrow accounts were rare, and agents still are not licensed, adding a level of uncertainty for first-time buyers.

"You have to do your own due diligence," Creekmore said.

Booth discovered one of the complications when she tried to resell a 35- square-meter condo in Puerto Vallarta. The transaction was delayed for 10 months while she waited for local government officials to produce a copy of her deed.

"It can be frustrating," Booth said. "You have to have patience."

And beyond patience, it is important to recognize the potential obstacles in Mexico property deals, longtime participants in the real estate business say.

Some examples:

There are restrictions on foreign ownership of land within 50 kilometers, or 31 miles, of the coast and 100 kilometers of all borders, including all of Baja California. In most cases, any residential buyer who is not a Mexican citizen must place the property in a Mexican bank trust, or fideicomiso, which is controlled by the buyer and easily renewed after 50 years.

The national real estate association, Asociación Mexicana de Profesionales Inmobiliarios, recently signed an agreement with the National Association of Realtors in the United States that allows its members to use the Realtor designation. But there still is little oversight of operating practices.

"You have to have a reputable broker, period," said J.P. Money, who runs www.mls4rivieramaya.com, a property listing service for the Riviera Maya. "Ask for references and ask people who have bought from them before."

Capital gains tax can take a large bite out of rosy profit estimates. This year the tax rate is 28 percent, although there are ways to structure a transaction to avoid paying, especially if the house is a primary residence.

Although the practice is technically illegal, it is not unusual for a seller to record a much lower purchase price to avoid taxes — and then an unsuspecting buyer, trying to resell the property, is called upon to pay tax on the recorded increase in value.

"That is very, very common in most of Mexico," said Linda Neil, founder of Settlement, a transaction consultancy based in La Paz, Mexico. "Buyers need to be sure the full price is recorded on the deed."

Some buyers are shocked to find that closing costs can be as much as 10 percent of a property's value, especially along the coast. Undisclosed fees for condominium associations and maintenance also may add to a transaction's overall expense.

Tracking a property's title can be difficult. Large tracts often are controlled by ejidos — collectives of landowners — and in some cases sellers do not have full title to the land.

"Probably the biggest land mine is distinguishing the difference between private property and ejido land," Neil said. "If title insurance won't cover the title, that's a big red flag."

Spring breaker-free beaches

2007-03-19T11:35:00.000-06:00

Looking for a sandy escape but loath to share your stretch of beach with beer-guzzling college students?

We don't blame you. Over 100,000 students travel to resort areas throughout Mexico each year on spring break, according to the U.S. Department of State. Other favorites include Nassau, Bahamas; Panama City, Fla.; and San Juan, Puerto Rico. Most see rambunctious revelers from mid-March to mid-April.

Then there is Cancun. Arguably the mother of all spring break destinations, it is living up to its reputation by hosting MTV Spring Break 2007 through the end of this week. But there's little doubt the party will carry on long after the cameras are packed away.

Fortunately, for those seeking a more peaceful setting than the satellite set of Total Request Live, there is a select group of properties across Mexico, the Caribbean and the southern half of the U.S. that cater to a more sophisticated, upscale clientele.

One such locale? Barbados. Brokers at the Sandy Lane-based Altman Real Estate company, which rents out several high end villas along the West Coast of Barbados to honeymooners, families and sometimes larger groups, take extra precautions when interviewing potential clients in the spring. "Our reservations agents will not permit a house full of college-age revelers," says Jan Gordon, the company's marketing consultant. If a group of college kids finagle a reservation and arrive, the house manager, who greets all guests at the airport, can refuse to escort them back to the villa. The island in general emits a super-posh vibe, ensuring public beaches aren't riddled with breakers.

Other spots, including the Ritz-Carlton on Amelia Island, are relying on reputation--and price--to draw in a quieter crowd. With an oceanfront room and the presidential suite ringing in at $659 and $3,200 per night, respectively, cash-poor students might well be deterred.
"We think of this as a coastal retreat," says Farley Kern, director of public relations at the resort. "The prevailing feeling on the island is quiet, casual and comfortable--it's not that typical spring break scene."

The Ritz has upped its own ante by relaunching the highly acclaimed Salt restaurant this past December. The revamped menu, created by Catalonian chef Jordi Vallez, has received a five-diamond rating from AAA, the highest in Florida. Those seeking tequila shooters best look somewhere else.

Mexicali Masterpiece But the ultimate escape from spring break enthusiasts just might be the Casa Triton in Careyes, Mexico.

© Villa AmanecerLos Cabos is a favorite among Californian college students, so it’s no wonder upper-crust escapists find refuge on The East Cape, just an hour south. Here rests the secluded Villa Amanecer de los Sueños. It comes equipped with a jacuzzi, barbecue and incredible views of the Sea of Cortez. Each bedroom includes its own patio, bath and king-size bed.

At $75,000 per week, guests of this out-of-the-way villa experience the convenience of a personal chef, butler, driver and masseuse as well as the opportunity to partake in all sorts of outdoor activities, from whale-watching to horseback riding. The six-bedroom house, noted for its aesthetic appeal in publications including Architectural Digest, books up fast, says reservations manager Wayne Hudson, especially in spring, its most popular season.

Bahamian Beauty Developers are expecting spring to also prove a prime period for The Cove Atlantis -- the highly-anticipated Bahamas resort opening next month.

George Markantonis, president and managing director, Kerzner International Bahamas, is hoping to create a scene at The Cove that’s “more luxurious, more edgy and truly different than anything that exists right now in the resort category,” he says.

The property has 600 suites (featuring French balconies and step-down living rooms), as well as outposts of celebrity chef Bobby Flay’s Tex Mex Mesa Grill restaurant and hip Las Vegas nightclub Aura.

But however hot these Cove spots might become, don’t expect students to pop up at the next table. A week-long stay in a two-bedroom Azure suite will run you upward of $9,000.

Beachy Keen Over on the West Coast, vacationers will find a discreet alternative to the busy streets of Los Cabos, another popular spring break site. The Villa Amanecer de los Sueños, right on the Sea of Cortez, is just an hour south. An enclave boasting incredible ocean views, it also boasts modern furnishings that include marble floors and granite countertops.

But perhaps most important of all, it has access to pristine private beaches. Which means it's certain you won’t have to relive your college years this vacation season--unless you want to.

Real Estate: We'll See Blood in the Street Before This Bubble Bursts

2007-03-16T11:41:00.000-06:00

Stockerblog submits: In my opinion, the real estate market has a long way to go before bottoming out. Why? Because owning real estate is not like owning stocks. There is no liquidity. In addition, the real estate bubble took several years of froth before it peaked. I remember back in 2002, there was a lot of house flipping going on. People were buying two or three houses in new developments and reselling them before the houses were even built. I kept thinking this can't last much longer, but it did.

Then in 2003, I heard from friends about listing houses for sale and getting multiple offers of $10,000 to $20,000 above asking. I kept thinking this can't last much longer, but it did. In 2004, people were telling me about getting five to ten offers of $50,000 to $100,000 over asking price. I read articles in the newspaper about a couple that bought a two bedroom, one bath fixer in Silicon Valley for $1.2 million. I kept thinking this can't last much longer, but it did.

Finally in 2005, I got cold called about a rental property that I owned, asking if I wanted to sell. I asked how much they thought I should list it for and they said it was worth $440,000. I said that I wanted to list it for $639,000 and they thought I was crazy. I then received a call from my former secretary who said she just got her real estate license. I told her I would give her the listing if she would list it at the price I wanted, and of course she jumped at the chance. That summer, I got two offers over the asking price. If that wasn't the top of the market, then I didn't know what was and nor did I care. As it turned out, it was the top.

Now I see examples such as a house in my neighborhood that was put on the market last year for $1.1 million, later reduced to $939,000, later reduced to $829,000, the listing expired and picked up by another broker who listed it for $799,999, yet it is listed on zillow.com as being worth only $685,000. I'm sure you've seen and heard other stories in your area.

The froth in real estate lasted for several years before the turn; now I think we have to see blood in the street for several years before this is over. Readers of my previous article about shorting the sub-prime lenders, and the followup article about the 26% return in four days, created an interest from readers about other possible shorts, or put purchases. The short party for sub-prime may be almost over but there are other areas of real estate where this drop could reverberate, such as residential construction.

Here are three worth investigating as possible shorts:

Ryland Group Inc. (RYL) is a California based homebuilder and mortgage lender. Quarter revenues dropped by over 11% year over year, and their quarterly earnings sank by 40.4%. The stock is currently at 43.10, way above book value of 35.46. They owe almost a billion dollars in total debt.

Meritage Homes Corp. (MTH) is a single family homebuilder based in Arizona which concentrates primarily in the southwest, with developments in Arizona, California, Nevada, Texas, Colorado, and Florida. [My personal opinion is that Nevada will get hurt the worst in terms of the real estate markets.] Meritagehad a 21% reduction in quarterly revenues and over a 90% drop in revenues. Operating cash flow is a negative $21.9 million.

Brookfield Homes Corp. (BHS) is a luxury and move-up homebuilder that operates in California and the Virginia area. Quarterly revenues dropped 29.8%, quarterly earnings dropped 49.8% and the stock sells for 2.3 times book value.

FundVallarta Announces Online Resource For Mexico Real Estate Investment

2007-03-16T11:38:00.000-06:00

NewswireToday - /newswire/ - Leander, TX, United States, 03/15/2007 - fundVallarta announces a full online resource for discovering real estate investment opportunities in Puerto Vallarta, Mexico. With conditions similar to the property boom in California, Puerto Vallarta is poised to become an international performer.

Historic property investments may point to a significant current investment opportunity in beachfront property in Mexico.This is the best beachfront coast line for real estate investment and vacation getaways in the world. fundVallarta.com (fundVallarta.com) has been monitoring the trends in beach front property and believes that Puerto Vallarta is not only desirable property, but has the potential to be a significant investment opportunity.Did you know?Puerto Vallarta has a population of 350,000 with 2 million visitors annually.

Puerto Vallarta has been named the best beach in Latin America by Travel and Leisure Magazine Readers Survey (all 25 miles).Humpback whales winter in the Bay every year. Dolphins, giant mantas, sea turtles, and over 100 species of birds also live here.

The Puerto Vallarta area and surrounding region has a very active real estate market.

Source: Virtual VallartaDan Ralph, Director, US Marketing and Investor Relations, has a very exciting story to tell. His award winning investment strategies have helped to finalize millions of dollars in property acquisitions each year. Regarding the potential boom in ocean front property in Puerto Vallarta, Dan Ralph notes, "[This is the best beachfront coast line for real estate investment and vacation getaways in the world."

In addition, Dan has developed a website to assist those who may find themselves interested in real estate investment opportunities in Puerto Vallarta. The real estate investment boom in Mexico can provide personal enjoyment in the, "beautiful Bay of Banderas, which comprises over 50 miles of pristine coastline between Yelapa, Jalisco to the south and Rincon de Guayabitos, Nayarit to the north. Guayabito is located in the heart of the Gold Coast of Nayarit, which is considered to be the present day 'California of Mexico'."The partnership at fundVallarta.com is well versed in both American and Mexican property laws and cross-cultural investment opportunities.Dan's website provides a listing of current offerings along with a comprehensive knowledge-based resource center providing applicable articles for your consideration. A blog is also available to help answer any questions you may have.

About Dan Ralph: Director of fundVallarta.com US Marketing and Investor Relations - He was a 6th round draft pick for the NFL team, the Atlanta Falcons before being traded almost immediately to the St. Louis Cardinals. While an injury cut his professional football career short, he brings skills learned playing sports to the investment table. He is a quick thinker with a no-nonsense business approach. He was honored with the Stock Broker of the Year award and he is a top producer for Mexican real estate sales. He founded the leading audit company used by General Motors in addition to another eight successful marketing companies.

$900 Billion Invested in Global Real Estate during 2006

2007-03-15T16:25:00.000-06:00

Global Commercial Real Estate Investment Rose 38% in 2006 to $682 Billion;
U.S. Total Transaction Volume Rose 32% to $271 Billion in 2006
Jones Lang LaSalle Issues 'Global Real Estate Capital' Report
CHICAGO, March 12 /PRNewswire-FirstCall/ -- Jones Lang LaSalle's latest
global real estate capital report, released today, records global real
estate investment of US$682 billion in 2006, a surge of 38% over 2005, and
nearly double 2003 volumes. Globalization of the asset class continued
relentlessly as 42% of investment value now involves a cross-border
transaction (i) (up from 34% in 2005), and 29% were inter-regional (up from
23% in 2005) (ii).

Already a new annual record for the asset class,
investors posted an additional $218 billion to the total transaction volume
with residential and entity-level deals accounted, bringing the total
aggregate global real estate investment volume to $900 billion -- the
strongest ever performance by global real estate markets.

Tony Horrell, CEO of Jones Lang LaSalle's International Capital Group,
commented: "There is currently a large overhang of investment targeting the
sector with $4 of money chasing every $1 of product. Global real estate
markets performed very strongly throughout 2006, and it was the first year
that all major developed and emerging market returns were both aligned and
positive. Investment was driven by increased allocations to the asset
class, growth in investible for investment and by the increased attention
of opportunistic private equity players who identified relative value in
the sector. These increased flows into real estate gave rise to two notable
phenomena in 2006 -- an increasing number of 'mega-deals' and continued
globalization of the asset class."

The United States accounted for 40% of global transactions by value and
the UK accounted for 15%. The German and Japanese markets have almost
doubled their share of global volumes to 9% and 8% respectively, and the
German market now attracts the same share of global cross-border investment
as the U.K.

United States: A Domestic View

Total transactions in the United States were US$271 billion, up 32% on
2005 levels. Manhattan, by far the largest market in the United States (14%
of national market), experienced strong transaction growth with investment
increasing by 61%.

The volume of cross-border border transactions in the United States
more than doubled to $65 billion, and accounted for 24% of total U.S.
transaction volume (up from 14% in 2005). However, a significant portion of
this activity was sell-side transactions completed principally by German
and Global funds (defined as funds originating from multi-regions) as the
Germans freed up liquidity by selling significant U.S. holdings. Manhattan
captured a disproportionate share of cross-border investment -- accounting
for 21% of total cross-border investment into the United States -- spurred
by the sub-six percent vacancy rate in Midtown, tightening conditions in
downtown and additional demand for space extending into New Jersey as
tenants compete for a finite amount of availability.

The United States remained the largest investment destination of cross-
border transactions with 23 percent of the total global real estate
transactions by value, followed by the United Kingdom (18%), Germany (18%)
and France (8%). In the United States, global sources of capital easily
accounted for the most cross-border purchases in 2006, with $17.2 billion
(43% of cross- border purchases), followed by Canada with $4.6 billion
(11.7%), the U.A.E at $4.3 billion (10.8%), Germany at $2.8 billion (7.0%)
and Australia with $2.7 billion (6.8%). On the cross-border sell-side,
German investors and global sources of capital tied for most active in
2006, each selling $11.1 billion (31% each of cross-border sales) of U.S.
properties. Following were Canada with $3.1 billion (8.7%), Japan at $2.4
billion (6.8%) and Australia at $1.4 billion (4.1%). On a net-investment
basis, global sources led by buying $6.1 billion more in U.S. properties
than they sold in 2006, followed by the U.A.E. with net investment of $3.8
billion, Hong Kong investors at $2.2 billion, Canada investors at $1.5
billion and Australian investors at $1.3 billion. Total cross-border
purchases in the United States rose 86% to US$39.6 billion, up from $21.3
billion in 2005.

"Given the liquid and transparent real estate market in the United
States, we continue to see record-setting capital inflows from overseas
investors into high-quality product in high performing markets such as New
York," said Steve Collins, Managing Director of Jones Lang LaSalle's
International Capital Group. "With the favorable exchange rates for foreign
investors, we expect U.S. properties throughout the major markets, and
specifically in Manhattan, D.C., Boston, Los Angeles and Chicago, to
attract strong international investor interest in 2007 with little end in
sight."

U.S. Market Highlights

Cross-border investment increased in nine of the nation's top 10
markets by volume in 2006, except in Los Angeles where economic recovery
concerns linger. Manhattan experienced the largest yearly gains with total
investment of $37.3 billion and, of that, cross-border investments more
than tripled to $14.8 billion. Total investment was also up strongly in
Boston (81%) with cross-border surging more than five-fold to $4.9 billion;
in Atlanta (31%) with cross-border transactions nearly tripling to $1.9
billion; in Chicago total volume increased (30%) to $16.2 billion while
cross-border activity doubled to reach $3.8 billion; and in Dallas (20%)
with cross-border transactions more than doubling to $1.8 billion.

Report highlights:

-- North and South America: Direct commercial real estate investment in
the Americas reached US$283 billion in 2006, up 31 percent on 2005.
Cross-border investment represented 25 percent of total investment (up
from 16% in 2005) and inter-regional investment reached 22 percent of
total investment (15% in 2005). Investment markets in the Americas
region are overwhelmingly located in the United States (96% of the
region's transactions by value). Other investment markets include
Canada and the rapidly growing cross-border markets of Latin America -
dominated by Mexico and Brazil.

-- Private Equity Fueling the Market: private equity investors have
rapidly accumulated portfolios by pursuing entity-level deals. This
phenomenon, particularly prevalent in the United States, saw the
privatization of REITs and other listed real estate owners valued at
over US$48 billion in 2006. In February 2007, Blackstone purchased
Equity Office Properties Trust, the world's largest REIT, for US$39
billion highlighting both a potential arbitrage between public and
private markets and opportunistic investors' enormous appetite for
real estate assets.

-- Cross-Border Investor Mix: The mix of cross border investors in the
Americas changed significantly in 2006, with Australian, German and
Hong Kong investors dramatically reducing their purchasing activity.
Major cross-border purchasers in 2006 included Global funds (US$18
billion), Canadian funds (US$5 billion), and Middle Eastern funds
(US$5 billion). German funds sold real estate valued at US$11
billion, principally located in New York, Boston and Chicago and
purchased assets valued at US$3 billion (Chicago and Philadelphia).
Australian funds, having dominated the United States cross-border
market in 2005, reduced their purchase activity to US$3 billion
(predominantly retail) and shifted their attention to Europe.

Looking ahead, Steve Collins concluded: "Total transaction and cross-
border volumes continue to rise globally, and real estate continues to
produce a stable return that is paying off for investors across the globe.
We expect 2007 to be at or near the record volumes of 2006. With the
weakened dollar, we also expect an increased level of cross-border
investment into the United States, and the probable return of German
buy-side investing."

Collins also noted that investment vehicles have opened up in the
United States that should impact growth in global transaction volumes. "The
emergence of the Collateralized Debt Offerings (CDO) market provides
investors -- specifically highly leveraged Opportunity Funds -- the
opportunity to place additional, cheaper, non-taxable debt on an investment
without encumbering the other financing positions. This will allow buyers
to increase returns because they can now push underwriting values to higher
levels due to this inexpensive new debt in the marketplace."

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE: JLL), the only real estate money management
and services firm named to FORTUNE magazine's "100 Best Companies to Work
For" and Forbes magazine's "400 Best Big Companies," has approximately 150
offices worldwide and operates in more than 450 cities in over 50
countries. With 2006 revenue of over $2.0 billion, the company provides
comprehensive integrated real estate and investment management expertise on
a local, regional and global level to owner, occupier and investor clients.
Jones Lang LaSalle is an industry leader in property and corporate facility
management services, with a portfolio of more than 1.0 billion square feet
worldwide. LaSalle Investment Management, the company's investment
management business, is one of the world's largest and most diverse real
estate money management firms, with approximately $40.6 billion of assets
under management. For further information, please visit our Web site

http://www.joneslanglasalle.com/ .

(i) Cross border investment is where purchaser, vendor or both originate
from outside the country where the asset is located.

(ii) Cross border investment is classified as 'intra-regional' investment
(both purchaser and vendor originate from the region where the asset
is located) and 'inter-regional' investment (purchaser, vendor or
both originate from outside the region where the asset is located).

Methodology:

Previously reported transaction volumes were revised in
2006 to exclude the investment grade residential sector. The report
now focuses on the commercial real estate sectors popular with inter-
regional investors, and excludes multi-family residential real
estate.

Annual figures, like-for-like comparison:

Total Cross-Border

2003 $354 billion $90 billion
2004 $393 billion (+11%) $114 billion (+26%)
2005 $475 billion (+21%) $164 billion (+43%)
2006 $682 billion (+38%) $288 billion (+73%)

Just say yes to a vacation in Sayulita

2007-03-14T13:19:00.000-06:00

By: Elliot Rowe, Contributor

Hidden in one of the coves on Mexico's western coast is the little oceanfront village of Sayulita. This beautiful gem, just a half an hour drive north of Puerto Vallarta, is a fishing village and also an isolated vacation spot that's home to the occasional surfer.

Most businesses, art galleries and about everything else in town are situated around a few central streets, but life in the village moves at a snail's pace. Even though there are a large number of rental houses and a few hotels, it still hasn't lost its small-town charm.

The best time to visit Sayulita (or any other tiny Mexican village for that matter) is during the town's Holy Week. My family visited during a yearly celebration centered around Easter and there's a nightly event for a week. When the sun sets, Sayulita comes alive with loud music and attractions that the town enjoyed during Holy Week. Be prepared for a late night - the party lasts until 2 a.m.

If the sun and humidity prove to be too much, the omnipresent Playa de los Muertos beckons you to venture in and snorkel. Don't be fooled by the name, the beach is inviting with gentle waves that are perfect for beginner surfers.

Should you decide not to get wet, there are plenty of things to see and do around town. During the afternoon, you could watch the fishing boats ram into the beach at full speed and bring in that night's dinner.

When it's bedtime, few things are more comforting than hearing the sound of the night's gentle breaking waves, even if it is heard through mosquito nets. The mosquito nets are necessary to keep the annoying bugs away, but other than that inconvenience, the rooms at the hotel Villa Amor are remarkable. Given the tropical beauty of the hotel and the views from the room, leaving it is difficult at best. The adobe-style terrace opens to overlook the Sayulita bay.

Because the hotel is in a secluded area a half-kilometer away, windows were open. In fact, the only enclosed rooms were the bedrooms. To hell with shower curtains, even the bathing area opened up to face the bay. The view from the kitchen is the best view of all and separates itself from the rest of the terrace. It sat under its own little grass-covered cabana enclosure.

Unbeknownst to many visitors are the ever-present indigenous natives. These misunderstood inhabitants have been known to procure valuables from vacationers.

During my family's stay, one managed to pilfer my mother's purse, but not before she scared him off. The hotel owner later told us that the natives were a superstitious bunch and that our assailant fled in part because he saw himself in the makeup mirror my mother kept in her purse. To them, seeing their reflection is supposedly a bad omen with the risk of losing their soul to the mirror. The natives still hold fast to their traditions and live independent of the town in the jungle, but they were hardly menacing.

Other than the town's beauty, Sayulita appealed to me on a much more personal level. The whole town emitted a rustic, laid-back feeling that said, "Relax, we'll finish our work later. Let's grab a taco and enjoy the scenery." If you're ever apt to get away from the busyness of city life and slow down for a week, might I suggest Sayulita? It's something you have to get off the cruise ship and out of the resort city to see, but it's well worth the adventure. Who knows - you may even find another little village by the sea just waiting to be explored.

Chacala, Mexico

2007-03-13T11:59:00.000-06:00

Discovering nature and community in a small seaside Mexican village

This article appeared in the Chicago Tribune in 1998 and the Philadelphia Inquirer, San Jose Mercury News, Denver's Rocky Mountain News and the Seattle Times, all in 1997.
Filed Feb. 1, 1997
By J.D. Lasica

CHACALA, Mexico — There is the kind of Mexico vacation where you sunbathe at poolside, sip pina coladas, then hightail it back to the States without having to utter more than an occasional gracias or por favor.

Then there is Chacala.
Chacala will never be another Acapulco, and that's just fine with the 200 residents of this sleepy fishing village 60 miles north of Puerto Vallarta.

Travelers who have chanced upon it know Chacala (cha-KAH-la) as one of the great undiscovered pleasures of Mexico — a rustic slice of paradise where jungle birds, sand crabs, stingrays and fruit bats all compete for the senses.

A couple of visitors weary of the artificial tourism scene at the usual resort destinations traveled here recently and found a tropical setting that lifted the spirits and fired the imagination. For Chacala offers not only pristine beaches and a thick tropical rain forest but also a cultural voyage into the soul of small-town Mexico.

After a 90-minute ride from the airport in Puerto Vallarta, our taxi turned off the main highway and barreled down the bumpiest, most pockmarked road my wife and I had ever seen. Talk about getting away from it all.

We pulled into Mar de Jade, a combination vacation retreat, medical training facility and Spanish immersion school that rises from the volcanic rocks at the south end of mile-long Chacala Bay.

Dr. Laura del Valle, 48, a former San Franciscan, founded Mar de Jade in 1983 as a place to house American medical students who volunteered their time at a nearby community health clinic as part of a work-study program. Today, Mar de Jade (Spanish for "Sea of Jade") has grown into a multifaceted tourism center that can house up to 50 guests at a time.

A spirit of community and volunteerism sweeps through daily life here, giving Mar de Jade the air of a bilingual, consciousness-raising commune. Visitors are invited to help out with dish duty once or twice during a stay, longer-staying guests work off their room and board by helping out around the compound, and Spanish is encouraged (though not required) during the three meals a day on the outside veranda.

Visitors can choose the kind of vacation they want. I've been there twice now, and on both occasions I've encountered weekend vacationers who wanted merely to be left alone to wander Chacala's empty beaches or steamy jungle trails. Others readily embraced the family spirit of the place, learning the names of staff members and other guests, then joining in for a midnight bonfire on the beach under a velvet canopy of twitching stars.

Not everyone who visits Chacala stays at Mar de Jade. Cabin cruisers and yachtsmen who ply the warm waters off the west coast of Mexico discovered the charms of Chacala Bay long ago.
Steve Horne, his wife, Donna, and their 7-year-old daughter, Laura, moored their 30-foot sailboat in the harbor last night after a month-long trip down the coastline from their home in Ventura, Calif.

"We've been looking for a place like this," Steve Horne says. "No amenities, just a back-to-nature experience. The thing I like about Chacala is, it's not even on the maps."

On this spring day, two dozen people — Mexicans and a smattering of Americans — are spread about on the beach. Six boys from nearby villages are playing a rough-and-tumble game of soccer under the fronds of coconut trees while two smaller boys and an Anglo girl build a sand castle at the water's edge. Another local boy, Valentine, lets his friends bury him up to his neck before they ditch him to go boogie-boarding.

Further up the beach, two American girls chase a sandpiper before it flits off. The girls' parents entreat us to join them for lunch at Las Brisas, one of the half-dozen palapa thatched huts that line the bay. Their names are Paul and Betsy Mead, and they're visiting Paul's mother in nearby Guayabitos. We become quick friends.

We order a lobster and cerveza ($7 apiece) and watch their girls, 6-year-old Amanda and 8-year-old Paige, skitter like waterbugs in the warm, silky waves. Then Amanda approaches our table, holding a thin branch to balance her slimy quarry.

"Look," she says. "It washed up on the beach."

Betsy Mead sets down her beer and inspects the limp, black-spotted eel. "All right, honey, now put it back."

Amanda giggles and skips off. I ask whether they worry about their girls' safety.

The Meads, who live in Sonoma, Calif., look at each other. "We watch them," Paul says.
Betsy leans forward. "I don't understand people who shelter their kids from an experience like this. They're having the adventure of their lives."

She laces a tortilla chip with cilantro. "Want to know why this is a magical place for kids? Papas fritas, great ketchup, chocolate milkshakes — and all this nature." High overhead, a flock of 14 pelicans flies in razor-straight I-formation.

"Just be prepared," she adds. "Don't leave home without some cortizone cream, an antihistamine, children's aspirin, sunscreen, some good water shoes, and something to drink and nibble on."

Paul discloses that he and Paige were bitten by jellyfish yesterday. Lime juice reduced the swelling and Tylenol dampened the pain.

Paige shows the little wound on her back and reports, "It was like two bee stings!"

By late afternoon, after a refreshing swim, we decide to remain in Chacala rather than return to Mar de Jade for dinner. We watch dozens of sand crabs burrow out of the wet sands as the tide recedes.

Finally, after a tangerine sunset, we head back to our adobe-style bungalow. There are few frills here: no TV, no newspapers, no air conditioning (the cool ocean breeze works fine), and no telephones, though there is electricity and running water.

We enter the room and I reach for the light — but the lightswitch moves. I get my flashlight and see what it really is: a small scorpion.

We catch it in a jar and store it outside for the night. A flyer in our room informs that a scorpion bite will cause two days of numbness. It advises: "To avoid scorpion bites, shake out your clothes, shoes, towels, etc. before using them and keep your suitcases closed."

We climb into bed and fall asleep quickly to the hum of insects in the rain forest that slants down to the edge of our hut.

The next day, a Saturday, we split up. A few guests go horseback riding along a long stretch of white beach to the south, while others go boating through mangrove swamps to the beach town of Guayabitos, still others go snorkeling off the coral beaches of San Blas or Chacalilla, and Del Valle and a handful of students trek to visit a Huichol Indian shaman in the Sierra Madre.

Mary and I set off on foot for Las Cuevas (The Caves), an isolated inlet about 90 minutes' journey. We pass a boy with a machete at a coconut puesto, or stand, before we find the trail that disappears into the rain forest. The brush thickens and jungle birds whistle and twirrhl in the branches above.

After a time we enter a meadow which is all that remains of an extinct volcanic crater. We make a wrong turn and run into a herd of bulls, but they are grazing and don't bother with us.

We find Las Cuevas, a serene cove that is now at low tide, letting us swim in the startlingly clear turquoise waters and explore the dark caves that peer out from the rim of the inlet.

There is one other visitor here, one of the medical students who has the day off from her chores at Casa Clinica in the neighboring town of Las Varas. The free, nonprofit clinic, operated by the staff of Mar de Jade, provides medical care to the families of local fishermen or landless farmers who work in the fruit or tobacco fields. All the medical attention is supervised by a doctor.

Beth Riley, 33, a pediatric nurse practitioner in the emergency room of Children's Hospital in Denver, says of her volunteer work: "It's an eye-opening experience — a cultural education for both us and the locals. We learn about treating patients in a community setting, and they're just grateful we're here."

She rolls over on her blanket. "But today, I'm just working on my tan."

Mexico: A dream takes root in Chacala, near Puerto Vallarta

2007-03-13T11:55:00.000-06:00

By Christopher Reynolds, Los Angeles Times
February 24, 2007

By many measures, this modern history of Chacala began 27 years ago, when Laura, Om and José Enrique del Valle arrived in this village 60 miles north of Puerto Vallarta in pursuit of an implausible dream: On a patch of land at the southern end of the beach, they would build a retreat for foreigners that would boost cultural understanding and support a rural medical clinic.
Operating out of an old school bus, they put up eight rooms with shared bathrooms, light provided by candles and lamps, refrigeration by ice blocks. They called it Mar de Jade.

The partnership didn't last. But the business has. These days, Mar de Jade could pass for a rich man's vacation compound. Surrounded by gardens, it has 30 rooms, a spa, a couple of big meeting rooms, a shaded patio that seats 50 or so, a palm-shaded pool, a prime spot on the beach — and a medical clinic in nearby Las Varas that often draws volunteers from medical professionals and students staying at Mar de Jade. Laura del Valle, a physician raised in Chicago and Mexico City, owns Mar de Jade and runs it with her daughter, Angelica.

These days, they house mostly med students and other volunteers in summer and mostly vacationing couples, families and groups in winter.

Meanwhile, Laura's half brother, José Enrique, has carved out his own niche on 2 1/2 acres next to Mar de Jade.

Drawing on his background as a builder, civil engineer and former tour guide, he and his wife, Carmen, built and opened Majahua, a four-room boutique hotel, spa and restaurant on a jungle slope, in 1996. Pronounced "Mah-hawa" and named for a jungle tree, it's the only lodging in town where you're likely to hear American jazz on the stereo, order a Mediterranean salad or wash your hands in one of those stone-bowl sinks you see in design magazines. But it remains a jungle enterprise: Indoors or out, you may spy a spider or two. You spend a fair amount of time navigating the footpaths that connect the guest rooms to the dining area, and the dining area to the beach, and the parking lot to everything else. And if the hot water runs out during your shower, that'll be because the propane tank has run out and it's time for somebody to lug a full one up the hill.

To many in town, José Enrique del Valle is best known as the coordinator of Techos de México. Born in 1996, inspired by the work of Habitat for Humanity and largely bankrolled by donations from the north, it's basically a construction-loan program to connect villagers with tourists and their dollars.

So far, the program has built four houses and expanded three others, spending $4,000 to $9,800 on each project, splitting revenues between landlords and the loan fund. Three landlords have already paid off their loans, including Concha Velázquez, who told me in Spanish that her family had been dependent on her husband's uncertain income as a fish merchant. They opened Casa Concha in 2001, paid off their loan three years later and have expanded to three rental rooms.

The only real downside, says José Enrique del Valle, now 50, is that "it's a lot of work. I'm exhausted."

But as the renovated schools and the library near the middle of Playa Chacala demonstrate, more activists have arrived in the Del Valles' wake. One is Susana Escobido, who runs the Mauna Kea Café with her husband, Poncie; rents out a few rooms by the month; sells homes in the Marina Chacala development; and is co-founder of Cambiando Vidas (Changing Lives; http://www.chacala.org/ ), which spends about $40,000 yearly (much of it raised among U.S. Rotarians) to boost local schools, underwrite a learning center and fund scholarships. Twenty-seven local youths are studying on scholarships right now, from eighth-graders to college students.

"The Nayarit coast is just exploding, whether we're ready for it or not," Escobido says. "We want to make Chacala a community of entrepreneurs. These kids, because they'll have an education, are going to think like businesspersons."

A boom in visitors might well boost local living standards. But many repeat visitors and locals say that if the wider world learns more about this place, the wider world will elbow its way in, change it beyond recognition and cut the locals out of the action.

So, plenty of eyes are watching the state-owned RV park at the edge of the beach — where a would-be buyer has proposed condos — and Marina Chacala, where unbuilt lots are priced at $200,000 and up. The developers there have already made enemies by blocking locals' access to a small beach that had been public.

Still, Escobido contends that some of those home buyers could be the village's next philanthropists. "They don't know it yet," she said, "but they're all going to be participating."

Visitors help Mexicans build stable futures

2007-03-13T11:43:00.000-06:00

WORLD BRIEFINGS

By Tom Carter

THE WASHINGTON TIMES

March 13, 2007

CHACALA, Mexico

Nine years ago, Aurora Hernandez Blancarte's family lived in a dirt-floor shack, six miles from a paved road, and although her husband is a fisherman, the family sometimes went hungry.

"During the rainy season, when the fishing is no good, we didn't even have enough money for tortillas," said Mrs. Hernandez Blancarte. "Now, we eat well. I can send my girls to private school. I can take them to the doctor. And that is our first car," she said, proudly, pointing to the family's new Toyota pickup. Mrs. Hernandez Blancarte owes her family's bright orange home, adjacent guesthouse and fortune to a program called Techos de Mexico -- Roofs Over Mexico -- founded by Mexican social activists from the 1960s and modeled after Habitat for Humanity, but designed to meet the needs of Mexico's poor.

Twenty-seven years ago, Laura del Valle, a medical doctor, and her brother Jose Enrique bought a piece of jungle property at the south end of the beach at Chacala, a small fishing village of about 300 people overlooking a scenic bay about 60 miles north of Puerto Vallarta. Dr. Laura, as she is universally known in Chacala, studied medicine in Mexico City during the turbulent 1960s. She lived with a Japanese Zen master who took his students to the rural poor in the mountains of Oaxaca. Influenced by the social consciousness at the medical school, she took her skills into the Mexico City slums.

After buying the property, Dr. del Valle invited Mexican and U.S. medical students to Chacala to spend their summers in palapa huts -- covered with hand-woven fan-palm leaves -- on the beach and volunteer in local clinics. The experience taught the students how to record health histories in Spanish, exposed them to primitive medicine and gave Chacala residents much-needed health care.

Volunteering in luxury

The palapa huts have evolved into a luxurious hotel, spa and conference center. At Dr. del Valle's Mar de Jade, Birkenstocks, yoga pants and New Age patter among aging U.S. baby boomers is the norm -- as is the tradition of volunteering in the community.

Dr. del Valle said Mar de Jade has brought in "easily over 1,000 medical students," hundreds of volunteer builders from U.S. Rotary clubs, as well as New Agers who want to practice yoga, lie on the beach, and make a social contribution on their vacation. Mary Ann Day, a retired merchant seaman from Alaska's ferry system, began visiting Chacala 17 years ago.

"I started volunteering here before Mar de Jade was a spa. I did translation for the medical students. Laura and Jose are just the best people. They inspired me to come here and help," Miss Day said. She bought a home and now spends her retirement working the Internet, soliciting donations and corralling Canadian and American tourists to paint, or work in the sparkling new book-and-tools lending library, built by Rotarians, or teach local youngsters how to use a computer or pick up trash.

Miss Day's efforts have evolved into a $40,000-a-year scholarship program called Cambiando Vidas (Changing Lives), for the children of Chacala. It now has 29 children in junior high, high school and college, including four of the first college graduates in Chacala's history.

Housing and income With Dr. del Valle addressing medical needs at the Mar de Jade clinic in nearby Las Varas and Miss Day supporting education, Jose Enrique was interested in local housing issues. Many of Chacala's 300 residents lived in log huts, with dirt floors and palm-frond roofs. Many still do.

"I did my thesis is engineering, social psychology and housing. We live in a country that has many problems in housing," said Mr. del Valle, Techos founder and the proprietor of the upscale Majahua bed, breakfast and spa, next door to Mar de Jade, in the jungle above the beach. In 1995, Mr. del Valle was introduced to Habitat for Humanity, the U.S. charity that organizes volunteers and builds homes for the poor. It seemed a natural for Chacala.

Mexicans value land and housing, and there is a long tradition of stocking bricks and mortar, rather than putting money in the bank. When enough raw material has accumulated, Mexicans gather friends and neighbors to "self-build" their homes, but for Techos de Mexico he made a major change.

"Habitat for Humanity does not allow their houses to be used for commercial purposes. I believe that a house can be used for business," he said.

His idea was to use microloans to build small homes, plus two or three budget-style rooms that could be rented to tourists, giving the family a home, as well as an income.

"Many countries have bed and breakfasts. France, Italy -- why not Mexico?" asked Mr. del Valle. He called a meeting to outline his idea, and 35 Chacala families attended.

Points to the poor "We formed a committee and developed criteria. We visited each family. It was all open and transparent. Basically, the worse your house, the more points you got," he said, in determining the building order.

If the applicant had a dirt floor, the family was awarded five points, a cement floor, three points, and a tile floor, zero points. If the dwelling had a rough-hewn log walls, five points, brick walls, three points, plaster walls, zero points, and so on.

The family's social condition also was evaluated. A woman with an absent husband -- perhaps seeking work in the United States -- and two or three children younger than 11, or with disabilities, would earn high points.

Newlyweds living with their parents were awarded big points. "But this is a fishing village. Even if you were living in a shack, if your family had three boats and 1,000-horsepower engines, this would bring your points down," Mr. del Valle said.

The fact that U.S. tourists in Mar de Jade financed the $4,000 to $9,000 Techos loans scared some families from the program.

"Because Americans were putting up the money, many were afraid Americans would come down and take their homes, so only five of the original 35 stayed in," said Mrs. Hernandez Blancarte, whose Casa Aurora was the third Techos built.

Another of the five was Concha Velazquez, who had three youngsters and a husband in the United States. All Techos rooms are tiled. "It is like a home-stay. We have become part of Concha's family," said Cheryl Watts, of Kalispell, Mont., who has been spending winters at Casa Concha for the past few years.

Booming B&Bs
The del Valles recruited volunteer labor from their guest registries, and Techos bed-and- breakfasts began springing up. In all, seven were built, and other families who did not participate in the Techos program, simply copied the idea and built on their own. Now, nearly 20 B&Bs operate in Chacala.

Lodging originally cost about $10 per night, but now runs $25 to $50 a night for the larger rooms with private bath, kitchen and a view of the bay. By contrast, rooms at Mar de Jade and Majahua start at $100 a night and go beyond $300 a night.

"We had to put in our own labor. But I was lucky. American plumbers and electricians were volunteering when my Techos was built," said Mrs. Hernandez Blancarte. "If it weren't for Techos, we'd still be living in that shack," she said, pointing at the one-room log hut with a dirt floor and tin roof where she and her family once lived.

She said her three guest rooms are filled almost all year, many with long-term rentals. She has repaid the $7,000 loan used to build her house. Because she is considered good with money and scrupulously honest, Mrs. Hernandez Blancarte has been drafted to act as accountant and treasurer for several of Chacala's civic organizations.

"Our guests come back every year. We now have to turn people away. Even in the rainy season, I am full. I had a good September this year because we had good surf," she added.

With Chacala transformed into a growing tourist destination, Mr. del Valle is in discussions with several Mexican and U.S. universities, hoping one will adopt the Chacala model and use university resources and students to reproduce the Habitat for Humanity and B&B hybrid throughout rural Mexico.

"I am 50 years old and exhausted," said Mr. del Valle, sitting on his shaded terrace overlooking the Pacific. "I want a university to take this over. To take it further.

"To make this work, you need lawyers, architects, social workers, volunteers."

Avoiding the Cookie-Cutter Look

2007-03-09T12:10:00.000-06:00

By AMY GUNDERSON
Published: March 7, 2007

For all the appeal that a gated community holds for a second-home owner — recreational amenities, a sense of security — a planned development can sometimes put a home buyer in the architectural equivalent of a straitjacket.

Building or remodeling a home in such a community can mean going head to head with the development’s architectural review board, which can sometimes literally send an owner back to the drawing board. A new owner must often wade through design guidelines that govern the basic aesthetics and might even dictate total square footage, the size of a second level, the type of landscaping permitted, the amount of exterior stone required, the shape of archways and the maximum roof pitch.

“We have our fair share of gated communities, and they really box you in architecturally,” said Scott Jarson, an agent with Jarson & Jarson Real Estate in Scottsdale, Ariz.

While an architectural board in a gated community has the final word on design, construction doesn’t require resigning yourself to a cookie-cutter home. Architects and designers are quick to say that while such boards can be exceedingly strict, ways can still be found to give your home unique touches and ensure that it won’t be a mirror image of the house next door.

Be Realistic

Want a flat-roofed modernist house in a community of Mediterranean-inspired retreats, or a Cape Cod next to a Southwestern desert pueblo? Think again. On the other hand, a Tuscan-style home can partner well with a Mediterranean.

Gated communities are likely to limit homes to four or five styles, said Mark Candelaria, the owner of Candelaria Design Associates, a Phoenix architecture and design firm that does most of its work in gated communities. But not every development has a strict rulebook. For instance, Bighorn Golf Club in Palm Desert, Calif., a community with two golf courses, has a diverse grouping of homes.

“Bighorn is one of the more flexible clubs to work with in regards to guidelines,” said Kristi Hanson, an architect who has designed more than 40 homes in the development, where three-quarter-acre lots now sell for $2 million. “They really consider those to be a guide rather than rules.”

Tuscan-style houses and desert contemporaries share the community, including one, designed by Ms. Hanson, on which construction is beginning. “It’s very contemporary,” she said of the 18,000-square-foot house. “There is not a straight wall in the place.”

Play With the Layout

The size of the home is dictated in part by setbacks (how close a house can be to the property line) as well as limits placed on height and on the square footage of a second level. But terrain also dictates layout.

Mountainside homes, and even desert homes designed to capture surrounding vistas from a steep slope, can have varied elevations. Capturing those views can inspire an architect.

Mr. Candelaria designed a Scottsdale house that encompassed views of mountains, a golf course and the desert landscape. “The style the house needed to be was rural Mediterranean,” he said, “so we took the idea of a little village and angled one part of the house with another part. In doing that, we created courtyards.”

Since the interior courtyards were beyond the purview of the architectural board — which did regulate exterior landscaping — the owners had free rein on the types of plants they wanted in the courtyards.

Go Big on Custom Details

The way to make a house stand out from its peers lies in the details. After all, your neighbor is unlikely to choose the same features, and yet they may still pass muster with the architectural board. “Bringing in more detail is what ends up setting it apart,” Ms. Hanson said. “I might do intricate ironwork, really interesting light fixtures that you can’t buy out of a catalog, or really beautiful carved columns that are wood or stone.”

Juan Collignon, an architect, has designed homes in Mexico and the Caribbean, including six in Punta Mita, a gated development on Mexico’s Pacific Coast, where home sites start at $1.6 million for a half-acre ocean-view lot. He, too, emphasizes that true uniqueness is in the smallest touches.

While the building aesthetics in Punta Mita, for instance, require owners to put up haciendas or airy Pacific-style houses, handmade features make each house special, Mr. Collignon said.

Everything from the front door to the walkway leading to the house can be wrought by hand, he said. “Not one looks alike,” he said, “even if they were made by the same craftsman.”

A material like stone lends itself to an interpretive approach. “There is such a variety of stone colors, styles, the way the stone is laid, and how much mortar is used,” said Kevin Culhan, an architect-builder in Greenville, S.C., whose company is called Allora. “Clients come in and think they have to look like the other 15 houses they just looked at in the community. We’ve been able to say, here are some alternatives.”

Negotiate, and Compromise

If Mr. Culhan thinks a plan will have trouble getting an architectural review board’s approval, he requests a preliminary meeting with board members and gets ready to negotiate. He has persuaded boards to be flexible on window size and styles, and once helped a client build an Asian-influenced house in the Cliffs, a South Carolina community where homes generally look like mountain cabins. “The owners wanted a bright red trim,” Mr. Culhan said. “We had to compromise on a rusty red to make both parties happy.”

If the real estate market is slow, getting changes approved by a board can be easier. “The market can really force developers to not be so strict,” Mr. Candelaria said. “If the market is soft, they get nervous and let their guard down.”

Focus on the Inside

The reach of a design review board usually doesn’t extend inside. That’s one reason homes can often have two personalities. But at least make sure the exterior and the interior complement each other.

Buying a house with a Spanish-colonial exterior, for instance, and giving it a midcentury-modern interior might be discouraged by a designer, on the ground that the jarring contrast in styles would make resale problematic.

Make Sure It’s What You Want

Before you buy, be certain that the development is right for you. If you bristle at restrictions, and want to have a freer hand, a gated community, even one with a championship golf course outside your door, may not be the right place for you to call home.

“If the concern is security,” said Mr. Jarson, the Arizona-based real estate agent, “we can always incorporate that into private gates.”

Mexico publishes bid guidelines for massive new dam

2007-03-06T12:20:00.000-06:00

Mexico has published guidelines for the construction of La Yesca, which will be the nation's largest hydroelectrical plant that could create 10,000 direct and indirect jobs, the Mexican government announced Tuesday.

The Federal Electricity Commission said the reservoir would have a 220-meter boundary wall, the tallest in the world of its type. It will dam up nearly 2.4 billion cubic meters of water, equivalent to two years of Mexican water consumption.

The bidding targets include the construction of a concrete dam curtain, work related to it, and the installation of two 375-MW hydroelectrical units. The successful bidders will be announced on July 31.

The reservoir will be on the Santiago River on the border between the Mexican states of Jalisco and Nayarit, with the capacity to generate 750MW, equivalent to 12.5 million lightbulbs.
Mexican former President Vicente Fox, who left office last November, said last year the building work could draw some 850 million U.S. dollars to the area.

Electric company accepts Nayarit power plant bids

2007-03-06T12:14:00.000-06:00

Mexico´s state-owned electricity company began accepting bids for a hydroelectric power plant that may cost US$850 million as the country seeks to diversify its electricity supply away from natural gas generation

Wire servicesEl Universal

Jueves 01 de marzo de 2007

Bloomberg News

The winning bid will be announced in three months, Alfredo Elias Ayub, chief executive officer of the Federal Electricity Commission, said in an interview today on Radio Formula.

The project is part of an effort by President Felipe Calderón to boost spending on infrastructure to create jobs and spur economic growth. Last year, the construction industry expanded 6.9 percent, the highest rate since 1997.

"We want to get started before the first 100 days of the Calderón government," Elias said. "Infrastructure projects are fundamental for the country to be competitive and to generate jobs."

The project, called La Yesca, will generate 750 megawatts of electricity and consists of a 220-meter (722-feet) high dam. La Yesca will take about five years to build and create 10,000 jobs, with many workers from El Cajón, Elias said.

La Yesca is 40 kilometers from El Cajón, a hydroelectric plant with a 186-meter dam that´s about to begin operations in the western state of Nayarit. The commission said today it paid US$525 million to a unit of Empresas ICA SAB, Mexico´s largest construction company, for completing the first part of El Cajón.

CFE, as the federal power company is known, said it raised the money by selling 30-year peso-denominate bonds in the Mexican market and by selling debt to international investors.

The federal company attempted to bid out La Yesca last year and canceled the process because offers were either too expensive or didn´t meet technical specifications. The CFE has relaxed some bidding regulations that will allow Mexican companies to participate without teaming with foreign partners, Elias said.

"This should be good news for the Mexican construction industry," he said.

The CFE is trying to move forward on another hydroelectric project called La Parota in the southern state of Guerrero. That project has been blocked by lawsuits filed by members of small, collective farms in the area.

Breaking for the Beach

2007-03-06T00:04:00.000-06:00

Katie Levine '07 shares some last-minute tips for spring break 2007
Katie Levine '07

After three years of jealously watching people come back tan and happy after spring break week, I am finally taking my own spring break vacation to Puerto Vallarta, Mexico, this year.

Many other Providence College students have similar trips in mind. There are only a few days left before break, and if you are anything like me, you are almost delirious with excitement. But anticipation is not enough to make your trip successful. There are all kinds of things you should take into account before taking a trip (especially if you are flying or leaving the country), and I am here to help you make sure your trip is as fun and safe as possible.

Most people already have their vacations planned, but what are the hot spots for college students in 2007? Old favorites like Cancun, Acapulco, and Florida are still going strong. However, new passport regulations have put places like Hawaii and Puerto Rico (a U.S. territory where the drinking age is only 18) back on the map for spring breakers.

But don't forget about other great vacation spots like Jamaica, beach resorts all over Mexico, the Bahamas, ski resorts, cruises, and Europe. If you are leaving the country for your spring break trip, the most important thing to have is a current passport.

A new law, effective Jan. 23, says that all persons (including U.S. citizens) traveling by air to the United States from Mexico, Canada, Central and South America, the Caribbean, and Bermuda will be required to present a valid passport when re-entering the country. So once you are on your trip, make sure you take good care of your passport because you cannot get back into the U.S. without it.

Don't forget to check out the laws and customs of the country you are planning on visiting. Foreign laws could be different than ours, and the government officials wherever you travel are not going to care if you are a U.S. citizen. If you think you may be engaging in risky behaviors, make sure you know what is legal and illegal where you are traveling. The U.S. government reports that every year, approximately 2,500 Americans are arrested abroad-and we do not want any PC students contributing to that number.

The Department of State operates a Web site that has specific tips for student travelers during spring break: http://travel.state. gov. Check it out for detailed information on regulations (especially concerning Mexico) and phone numbers for U.S. consulates abroad. If you plan on flying to your spring break destination, make sure you are aware of all restrictions on air travel.

Know the permitted and prohibited items; otherwise, you may slow down the process of check- in or even lose some of your belongings. Most items-aside from the obvious weapons, chemicals, and explosives-are allowed in checked baggage. However, you are not allowed to carry lighters with fuel in either checked or carry-on luggage. You are now permitted to have liquids in your carry-on, but be aware of the 3-1-1 rule, which says that you may only carry bottles of three ounces or less in one quart-sized, clear, plastic, zip-top bag. Each passenger is only allowed to have one of these bags. The liquids must be in their original packaging, so that they can be easily identified at the security checkpoints. If you are unsure about these rules or don't feel like going through the trouble, just store all of your liquids in checked luggage. For questions about luggage and flight restrictions, call your airline or visit its Web site. Information about flying, including a complete list of prohibited items, is also available on the Transportation Security Administration Web site at http://tsa.gov. Make sure you pack appropriately for where you are going.

Obviously, do not bring gloves to Mexico or a bathing suit on your skiing trip! Only you know what your plans for your trip are, so bring clothes that are appropriate for what you will be doing.

Try to make sure you bring everything you will need for your trip, and avoid buying supplies once you get to your destination. They may not have exactly what you want, and will probably be more expensive. Pack lightly, but smartly. Try to pick out outfits instead of just throwing a bunch of clothes into your suitcase. This way, you will know you have exactly what you need. A helpful tip is to make a list of everything you think you will need and check it off as you put things in your suitcase. This will make it harder to forget to pack something you know you need.

All this aside, my number one tip for spring break 2007 is to have fun! No matter where you are going, make sure you have a great time. But you can still have fun without forgetting about safety-be aware of your surroundings and don't go anywhere alone in a strange place. However, don't get preoccupied with this and scare yourself. Especially for all of the seniors: Make this week a college memory you will never forget.

U.S. lenders aren't racing to capture Canada

2007-03-05T23:22:00.000-06:00

Published Wed, 28 Feb 2007 12:00:00 GMT

Currency, loan enforcement complicate situation

Tom KellyWhile U.S. mortgage lenders are heading south of the border to finance real estate in Mexico and Central America, the push to penetrate the Canadian mortgage market is considerably cooler -- even with the 2010 Olympic Games in Vancouver just around the corner.

Retirees and aging baby boomers "from the states" are drawn to Canada for its wonderful skiing, health care, bargain medicine, terrific sailing and clean air, but the numbers of second-home buyers and older full-time residents have not been as attractive to lenders as the pool of thousands of snow birds who head south.

Americans can borrow from Canadian banks and vice versa. But trying to finance Canadian property with U.S. funds becomes difficult. Location, security in the property and the ability to enforce simply make the package unattractive to most U.S. lenders. GMAC, one of the more interested international mortgage participants, recently introduced a 30-year, fixed-rate loan in Mexico, but officials say they are "not that close" with a Canadian product.

If you are thinking about borrowing in Canada to buy a condo so you can enjoy mountain views and the skiing, don't expect to see the loan options available that are common in the United States. Most Canadian conventional loans are written with a 5-year term. There are some 7- and 10-year options available but the most popular loans right now are 6-month, 1-year, 3-year and 5-year loans (comparable to our adjustables and known as "open"), each typically amortized over a period of 25 years.

"Open" does not mean the borrower's monthly payments adjust as the monthly market fluctuates; it means the borrower can prepay the loan at any time. Borrowers pay more for an open loan. Fixed-rate loan rules allow for prepayment only once a year. When a loan reaches its term, the lender usually renews it.

Shorter loan terms encourage borrowers to consider paying off loans as soon as possible, giving the consumer more of a stake in the property. This accelerated equity makes more sense to Canadians than it does to U.S. taxpayers because Canadians are not able to deduct home-loan interest from their taxes. For some American consumers, the mortgage-interest deduction is the only major write-off available.

Many investment advisors say that folks looking to purchase property abroad -- for investment or a principal residence -- often refinance or take out a home-equity loan on a property in the United States and pay cash for the "offshore" home. That way, all financing questions are eliminated and the interest on the home-equity loan or refinance often is tax deductible.

If you are looking at the Canadian property solely as an investment, research the capital-gains ramifications if you expect to execute a tax-deferred exchange. You may be able to rent the getaway -- especially if it's in a popular location such as Whistler where snow skiers can be seen on the mountain-top glacier nearly 12 months a year -- but it will not qualify as a "replacement property."

With investment property in the United States, you can defer your capital gain if you buy a "like kind" property of equal or greater value than the one you sold, provided you identify it within 45 days and purchase the replacement property within 180 days from the day you sold the first property. The Internal Revenue Service says any property outside of this country is not "like kind" so no capital gains taxes can be deferred.

Americans face two large issues when investing in real estate abroad. First, you have the appreciation or depreciation of the real estate itself -- or the "property side" of the decision. You also have the currency risk when you sell the property and bring the money back into this country. If the Canadian dollar slides, you run the risk of losing money on that investment. However, if the Canadian dollar improves against the U.S. dollar, your investment suddenly rises significantly.

While a U.S. dollar is not worth as much in Canada as it was the past several years, Canadian recreational real estate is appreciating. Not only has the Vancouver-Whistler corridor been booming, but European investors are encouraging their clients to consider the eastern provinces of Newfoundland, Prince Edward Island, Nova Scotia, New Brunswick, Quebec and Ontario as recreational investments.

However, you won't find a lot of U.S. lenders waiting to lend you the money to buy.

Procopio's real estate conference draws industry leaders from throughout North America

2007-03-05T22:46:00.000-06:00

By GEORGE DECKER, Special to the Daily Transcript
Tuesday, February 27, 2007

On Feb. 17, the Procopio International Tax Institute presented the information-packed, full-day conference, "Investing in Mexican Real Estate 2007 Outlook: Residential Properties & Development." The conference at the University of San Diego's Joan B. Kroc Institute for Peace & Justice attracted individuals from throughout the United States, Mexico and Canada who are both involved and interested in the Mexican real estate industry.

Why residential Mexican real estate? The market for vacation and recreational properties in Mexico is booming. Most of the activity is centered on new markets such as Puerto Peñasco, Puerto Vallarta, Los Cabos and San Felipe in Baja California, according to a report by Softec in April 2005. While the industry is expanding rapidly, the potential pitfalls are many. At the conference, expert panelists shared their knowledge and insights on how to avoid these pitfalls and successfully conduct cross-border Mexican real estate transactions.

The conference's 11 courses covered a wide range of timely topics, including acquiring residential properties in Mexico (due diligence, letters of intent and purchase agreements); cross-border construction contracts; selling and marketing the project in the United States; Mexican land entitlements and permitting, including zoning considerations; tax consequences of sales and other dispositions of Mexican real estate; Ejido property conversions; fractional and partial ownership; escrows and deposits; FIBRAs; and Mexican Fideicomisos (residential and business trusts).

Expert panelists included real estate and tax attorneys from Mexico, the United States and Canada; developers and design professionals from both sides of the border; and government officials. Former U.S. Ambassador to Mexico Jeffrey Davidow, now director of the Institute of the Americas, gave the conference's keynote speech on Mexico's political and economic future in the wake of last year's election of Felipe Calderón as president.

The Procopio International Tax Institute, led by Patrick W. Martin Esq., and Enrique Hernández-Pulido Esq., of the law firm Procopio, Cory, Hargreaves & Savitch LLP, has presented several conferences in both the United States and Mexico on investing in Mexican real estate. The next conference is scheduled to take place in September in beautiful Cabo San Lucas, Mexico. As the conference draws near, please visit www.procopio.com/IMRE to register or access more information.

Procopio, Cory, Hargreaves & Savitch LLP was established in 1946 and is now one of the largest business law firms in the San Diego region. With offices in San Diego and Carlsbad, Procopio's more than 100 experienced attorneys provide comprehensive legal services in the areas of construction; corporate and securities; environmental and land use; financing, restructuring and bankruptcy; intellectual property; labor, employment and benefits; litigation; patent prosecution and counseling; real estate; tax; and trusts, estates and probate. For additional information, visit www.procopio.com.

10 real estate tax breaks you should know

2007-03-05T19:41:00.000-06:00

Published Fri, 2 Mar 2007 12:00:00 GMT
Realty Tax Tips-Part 8: Mortgage costs top list
Robert J. Bruss

Read Have you ever forgotten to claim a real estate tax deduction? I did. Years ago, after I filed my income tax returns I remembered a mortgage interest deduction of about $4,500, which I totally overlooked. To claim my tax refund, I had to file IRS Form 1040X to amend my tax return.

As a result, I then learned the IRS hates to part with tax dollars already collected. I had to provide details of my additional deduction.

Fortunately, that was easy because it was a mortgage interest deduction for a recently acquired rental property. I photocopied the lender's IRS Form 1098, mailed it to the IRS, and about a month later received my tax refund.

Just so you never make a tax-deduction mistake like that, here are the "top 10" most often forgotten real estate tax deductions:

1. DEDUCT LOAN FEE "POINTS" PAID TO OBTAIN A "HOME-ACQUISITION MORTGAGE."
If you bought a house or condo in 2006 as your principal residence, you probably paid the mortgage lender loan-fee "points." One point equals 1 percent of the amount borrowed.
When the purpose of the loan was to acquire your residence, the loan fee is tax-deductible as itemized interest. However, many mortgage lenders "forget" to include this loan fee, which can be several thousand dollars, on the borrower's year-end IRS Form 1098 mortgage interest report.

For example, suppose you obtained a $300,000 mortgage to buy your house or condo (not a rental property). You paid a one-point loan fee of $3,000 to the lender. Because it was a primary-residence, home-acquisition mortgage, that $3,000 fee qualifies as a Schedule A itemized interest deduction on your tax returns.

Doublecheck the lender's 1098 interest report to be certain it includes loan-fee points. If not, add them to your itemized deduction. The best proof is your closing settlement statement.

2. DEDUCT AMORTIZED MORTGAGE REFINANCE FEES PAID TO THE LENDER.
If you refinanced your home loan in 2006 (probably to get rid of an adjustable-rate mortgage or reduce your interest rate), or obtained a new or refinanced mortgage on a rental investment property and paid the lender a loan fee, usually called points, that fee is deductible over the life of the mortgage.

The reason many borrowers pay a loan fee on a refinanced mortgage is paying points slightly lowers interest rate. The general rule is for each one point (1 percent) loan fee paid, the interest rate should drop at least one-eighth to one-fourth percent.

But it is very easy to forget this deduction because it is often a small annual amount. Suppose you refinanced your home loan (or the mortgage on your vacation second home). Because it was not a home-acquisition mortgage, the loan fee must be amortized (deducted) over the life of the mortgage.

To illustrate, if you paid a $2,000 loan fee to obtain a new 30-year refinanced mortgage, you can deduct $66.66 each year for the next 30 years. Because it's not much of an annual deduction, which is easy to forget, it's often wiser to obtain a "no fee" mortgage rather than pay a loan fee for other than a home-acquisition mortgage.

3. DEDUCT MORTGAGE PREPAYMENT PENALTY YOU PAID.
If you had to pay your mortgage lender a prepayment penalty, either to refinance or sell your property and pay off the old mortgage, that prepayment penalty is tax-deductible as mortgage interest. Some home loans have these prepayment penalties during just the first few years, but investment property mortgages often have them for many more years.

4. DEDUCT PRIOR HOME-LOAN REFINANCE FEES.
If you have not fully deducted mortgage refinance loan fees from a previous refinance, or you paid in full a mortgage on any property with undeducted loan fees, remember to deduct those fees in the year the mortgage was paid in full.

To illustrate, if you refinanced or sold a property in 2006 with $3,000 of remaining undeducted mortgage loan fees, that $3,000 became fully deductible in the year the mortgage was paid in full (either by refinancing or by sale of the property).

5. REMEMBER TO DEDUCT MOVING COSTS IF YOU CHANGED JOB LOCATION AND YOUR RESIDENCE IN 2006.
Whether you are a renter or a homeowner, if you changed both your job site and your residence location in 2006, you might be eligible for the often-overlooked moving-expense deduction.

To qualify for this sometimes-huge tax deduction of several thousand dollars, your new job location must be at least 50 miles further away from your old home than was your old job site. The residence change must occur within 12 months before or after the job location change. It doesn't matter if you change employers or become self-employed.

For example, suppose it was three miles from your old home to your old job location. But your employer moved to a new location, which is 60 miles from your old home. If you also changed your residence location within 12 months, your moving costs qualify in this example as tax deductions because the new job was more than 53 miles away.

Use IRS Form 3903 to calculate and claim your moving-cost deductions. However, as this form explains, you must work at least 39 weeks during the next 52 weeks in the vicinity of the new work site. If you are self-employed you must work at least 78 weeks during the next 104 weeks in the area of your new job location. Either spouse can qualify, but part-time work doesn't count.

6. DEDUCT ANY UNINSURED CASUALTY LOSS.
Another often-forgotten tax deduction has the misleading name of a casualty-loss deduction.

If you suffered a fully or partially uninsured "sudden, unusual or unexpected loss" in 2006, you qualify. Examples include losses from fire, flood, hurricane, tornado, earthquake, mudslide, theft, accident, water damage, riot, vandalism, embezzlement, snow, rain and ice.

However, slow losses do not qualify, such as termite damage, rust, erosion, mold, corrosion, dry well, moth damage, dry rot, beetles and Dutch elm tree disease.

The casualty-loss tax deduction must exceed 10 percent of your 2006 adjusted gross income, plus a $100 "floor" per casualty event. To illustrate, suppose your uninsured casualty loss was $5,000 and your 2006 adjusted gross income was $30,000. That means you qualify for a deduction of $5,000 minus $3,000 minus $100, or $1,900.

7. DEDUCT PRO-RATED PROPERTY TAX IN YEAR OF HOME SALE OR PURCHASE.
Many home sellers and buyers forget to deduct their share of the pro-rated property taxes in the year of sale or purchase. Your best proof of payment is the closing settlement statement, even if the other party to the sale actually paid the tax collector.

8. DEDUCT PRO-RATED MORTGAGE INTEREST FOR HOME SALE OR PURCHASE.
If you bought or sold your home in 2006, and you assumed an existing mortgage, bought "subject to" or relinquished a mortgage, remember to deduct your share of the pro-rated mortgage interest for the month of the home sale or purchase. Again, the closing settlement statement is the best proof.

9. DEDUCT PREPAID PROPERTY TAXES AND MORTGAGE INTEREST.
My personal favorite, often-overlooked deduction is prepaid property taxes and mortgage interest.

For example, in December 2006 I prepaid my January 2007 mortgage payment, thus entitling me to deduct the substantial amount of prepaid mortgage interest. In addition, I prepaid my 2007 property taxes in 2006, entitling me to another large 2006 tax deduction. However, not all local tax collectors will accept property tax prepayments.

10. IF YOUR HOME IS ON LEASED LAND, DEDUCT GROUND RENT.
Thousands of homeowners are not aware of this little-known tax deduction if they pay ground rent.

To qualify, Internal Revenue Code 163(c) permits homeowners living on leased land to deduct their ground rent payments if (a) the ground lease is for at least 15 years, including renewal periods; (b) the land lease is freely assignable to the buyer of the home; (c) the land owner's interest is primarily a security interest (similar to a mortgage); and (d) you have a current or future option to buy the land beneath your home.

If your situation meets all four of these tests, your ground rent payment to the landowner is tax-deductible as itemized interest. However, if you rent a "lot" or "pad" in a mobile home park, your monthly rent paid to the park owner is not deductible unless you have a 15-year or longer lease with a land purchase option.

HOMEOWNER NONDEDUCTIBLE PAYMENTS.

Nondeductible payments into a mortgage escrow impound account held by your mortgage lender are not immediately deductible.

However, when the mortgage lender remits money from your escrow account to the local property tax collector, then the property taxes paid become deductible. But personal-residence insurance payments are not tax-deductible.

Of course, if you pay your property taxes direct to the local tax collector, as millions of homeowners do, your property tax payment becomes deductible when paid.

If you bought or sold a home in 2006, you probably paid closing costs such as a transfer tax, recording fees, escrow, title or attorney fees, sales commission and other nondeductible charges.

Home buyers should add these nondeductible fees to their purchase price cost basis. But home sellers should subtract these nondeductible costs from their gross sales price. Full details on these and other homeowner and real estate tax deductions are available from your tax adviser.

Retreat in Mexico: Pilates in Paradise

2007-03-05T19:36:00.000-06:00

Looking for an alternative destination for spring break? After surviving winter wouldn't it be nice to take a little vacation - relax and eat well (and by well I mean healthy) and do some Pilates? Well, Ellie Herman Studios has just the retreat for you.

Seven days, taking 2 Pilates mat classes a day along with a guided beach walk could be just the thing to get you pumped and primed for upcoming spring and summer activities. The retreat is fine for both beginners and advanced students.

Pricing starts at $1300 for a shared double room at the Mar de Jade vacation/retreat center in Chacala, a stunning beach on Mexico's Pacific Coast, an hour and a half north of Puerto Vallarta.

The EHS staff is full of knowledgeable and energetic Pilates instructors. They will work you, but you will be in paradise, which should lessen the burn. Sounds wonderful to me since it combines two of my favorite things: Pilates and vacation.

Retreat dates: March 17 - 24th, contact EHS studios directly to reserve your spot.

http://www.ellie.net/store/EHSstoreRetreats.htm

Death, taxes and Mexico

2007-02-28T11:45:00.000-06:00

Tuesday, February 27, 2007

No one expects to live forever. Yet some naively think that moving to Mexico will kill their obligation to pay income taxes. In fact, U.S. citizens have to pay annual income taxes on all income earned from any source anywhere in the world, no matter where they live. While Americans moving to Mexico may escape the rat race, they still don't avoid death and taxes.

Of course, the all-American game of reducing and/or deferring taxes legally becomes just that much more interesting (read: complex) once two federal governments are involved.

Deciding issues related to estate taxes, life insurance, annuities, business or personal deductions and expenses requires specialized tax and legal counseling. Some experts recommend expatriates establish an offshore asset protection trust, while in other cases the creation of a foreign or domestic company is the best strategy. These are decisions to be made before crossing the border to buy real estate. And, then there is always the matter of citizenship.

It was widely reported that investment fund legend John Templeton, Kenneth Dart of Dart Container and Campbell soup heir John Dorrance III all renounced their citizenship and, in turn, legally escaped U.S. income and estate taxes. U.S. citizens have a constitutional right to acquire citizenship from other nations as well as the right to end U.S. citizenship. Not surprising, the U.S. government assumes that American citizens want to remain citizens. So, before a U.S. citizen can become expatriated, obvious proof of that intention is required in the form of a deliberate act. One must officially must renounce legal citizenship by visiting a U.S. embassy or consulate abroad, answering a standard questionnaire, then signing a formal document requesting an end to U.S. citizenship.

U.S. law also affords American citizens the right to dual citizenship. That is, U.S. persons have the right to acquire a second citizenship and passport. That dual status can be useful for those who engage in offshore business or make their home abroad. In Mexico, it relatively easy to acquire Mexican citizenship after having made Mexico one's primary residence for at least five years. This requires documentation and, for property owners, important tax implications.

Not to be denied control of their constituents' income, the U.S. Congress has considered following the Canadian model by imposing capital gains tax on all the property owned by a U.S. person who relinquished U.S. citizenship with the intent to avoid U.S. taxes. The American Jobs Creation Act presumes that anyone who ends citizenship who paid more than US$124,000 in net taxes for the previous five years or has a net worth of more than US$2 million is a tax expatriate and left to avoid taxes. Moreover, former U.S. citizens who return to the United States for more than 30 days will still be taxed on their worldwide income.

In the final analysis, there are only two ways to avoid the IRS -- formally relinquish U.S. citizenship and the right to visit the United States for more than a month at a time, or death. Just moving to Mexico won't do it. Nevertheless, the good news is wherever Americans choose to live, we will all stop paying taxes eventually.

'Learn how to shop for Baja real estate' weekend cruise planned for July

2007-02-28T11:26:00.000-06:00

By O'SULLIVAN INTERNACIONAL INC.
Tuesday, February 27, 2007

Ever wonder if retiring in Mexico is an option? Who would you ask to get basic questions answered: Can Americans own land? (Yes). Who can explain the process clearly? (Specialists). Are American property owners' and buyers' rights protected under Mexican law?

Investing in a foreign country has complexity requiring specialized knowledge and skills. Before considering a real estate purchase, foreign buyers in Mexico must assemble a variety of U.S.-Mexico transactions and legal linkage specialists -- attorneys, accountants as well as banking and finance professionals. Moreover, these specialists have to be good at working as a binational, bilingual and multicultural team.

More trouble than it's worth? The fact is there are fundamental differences in the way people buy real estate in the United States compared to Mexico. Many Americans buying in Mexico take risks they would never dare take in the United States. They fail to prepare their finances, taxes and bank accounts before they shop and then buy compulsively. They buy without having anyone defending their interests in Mexico. That's stupid. Real estate salespeople in Mexico tend to underplay the initial cost and complexity of U.S.-to-Mexico real estate transaction. Many serve as the sellers' representative while acting as if they are the buyer's agent.

Tip 1: Because there are no licensing requirements for real estate agents in Mexico, buyers require a competent and honest Mexican attorney -- preferably bilingual.

Tip 2: The buyer's attorney writes all contracts in English first to get the buyer's approval. The English version is then officially translated into Spanish to be enforced under Mexican law.

Buyers need to do their homework. They should attend a seminar to learn about the legal requirements of both countries: taxation, banking, judicial, etc. Many seminars are offered by competent real estate franchises and brokers. Buyers should also do a market analysis by visiting the area personally, recognizing that property value comes with education, experience and sound judgment.

How better to learn how to shop for real estate in Mexico than by taking a weekend Royal Caribbean Cruise from Los Angeles to Ensenada and back? We have reserved just 20 spots for our inaugural cruise seminar in July. It's a wonderful weekend of pampering, travel and business all in one.

After leaving the Los Angeles Harbor Friday after work, we wake Saturday morning in Ensenada, Mexico. After breakfast, we take a custom bus tour of the best-of-the-best Baja Gold Coast realty. Leave your wallets, purses and pens behind, this is not a buying tour. This is a no-pressure educational seminar to teach how to shop for Baja real estate. On the way, we'll see where Donald Trump is building the tallest buildings in Baja, the "Russell Crowe perch" (Crowe lived in a luxury condo next to the Fox Studios Baja while filming "Master and Commander") and the place where the likes of Carlos Santana once called home.

The next day back on board ship we'll give a series of brief presentations by binational services specialists -- attorneys, accountants and others who will make themselves available to answer all your questions. Since everyone wants to spend time on the ship eating the delicious food, enjoying the fantastic entertainment and playing, we promise to keep these presentations succinct and Q&A comprehensive. Your critical legal and tax questions will be answered, you'll understand how to recognize value, and learn how to negotiate a good deal and walk away from a bad one. That alone could save you the cost of the entire weekend.

This weekend cruise is an ideal way to decide if buying real estate in Mexico is the right thing to do, how to do it safely and what standards to expect. You'll understand the process, prices and protections. If you do buy, this cruise will be the best way to ensure that your rights and interests are protected in Mexico. If you don't buy, you'll have an interesting and enjoyable weekend.

If you would like more information on the cruise or are considering investing in Mexican real estate, contact O'Sullivan Internacional Inc. at shrinktheplanet@gmail.com.

Resort community Punta Mita builds on growing real estate demand in Mexico

2007-02-28T11:19:00.000-06:00

By MARTIN ELDER, Special to the Daily Transcript
Tuesday, February 27, 2007

The demand for Mexican real estate continues to grow at the high end, leading to wider availability of mortgages and positioning Mexico as one of the fastest rising real estate destinations in Latin America. This claim was made in a recent report by leading financial and real estate experts from Credit Suisse, Mexico Mortgage Market and U.S.-based consultancy Ernst & Young.

An example of such real estate can be found at Punta Mita, a master-planned luxury resort and residential community.

"With the recent slowing down of the U.S. real estate market, savvy buyers are starting to look beyond the U.S. border for new real estate options," said Lynne Bairstow, director of marketing and operations for Punta Mita and its developer, DINE. "Demand for real estate in Mexico and Punta Mita has increased dramatically as it becomes an ideal option for resort home ownership."

The Four Seasons Punta Mita Private Villas, ranging in size from 6,475 to 7,995 square feet, are distinguished by private infinity edge plunge pools, gourmet kitchens and spacious covered terraces and patio areas.

Several factors have played a key role in Punta Mita's popularity as a top-choice real estate investment, including proximity and easy access, Mexico's political and economic stability, and excellent real estate values.

Punta Mita is located 45 minutes northwest of Puerto Vallarta, on the Pacific Coast of Mexico. It lies at the northern tip of Banderas Bay, Mexico's deepest natural bay and is bordered by the rugged Sierra Madre Mountains to the east. The resort and residential community covers more than 1,500 acres on a spear-shaped peninsula surrounded on three sides by white sand beaches, Pacific Ocean waters and lush tropical flora.

The surrounding area of Punta Mita and Puerto Vallarta are known for a wide range of interesting activities, including scuba diving, sailing and windsurfing, swimming with dolphins, whale watching, jeep safaris, horseback riding, cultural tours, fine dining, shopping and nightlife. Punta Mita's excellent infrastructure is strictly held to U.S. standards. It includes a secure water supply, an on-site medical center, fiber optic cable phone service, an ecologically sound wastewater treatment plant and other benefits.

It is currently home to The Four Seasons Punta Mita Resort, various residential homes and the Jack Nicklaus Signature Golf Course at Punta Mita, ranked World's Best Golf Resort by readers of Conde Nast Traveler in 2006 and one of the best golf courses by Travel + Leisure Golf in 2006. The master plan of Punta Mita includes several luxury developments in the works, including the St. Regis Resort & Residences (December 2007) with a second Jack Nicklaus Signature golf course, the La Solana Resort (expected to open in 2009) and a variety of exclusive residential offerings and estate lots to complete this very privileged resort community.

"While the Los Cabos area has been an established, well-accepted and popular ownership destination for North American buyers, attention is now shifting to Punta Mita, Mexico's newest and most exclusive luxury real estate destination," Bairstow said. Over 95 percent of Punta Mita's owners are U.S. citizens.

Punta Mita Properties' team of real estate experts can clearly explain all necessary information and paperwork for Americans and foreigners to purchase real estate in Mexico, including trust deeds title insurance, real estate taxes and financing.

Punta Mita offers a wide selection of ownership options, including full-ownership condominiums (starting at $575,000), town homes, villas and luxury beachfront estate lots (priced up to $7.2 million) at Kupuri, the destination's newest residential community.

Mexico: In Playa Chacala, sun, sand and something more

2007-02-26T12:11:00.000-06:00

By Christopher Reynolds, Los Angeles Times
February 24, 2007

Sure, there's a great beach here, fresh fish, tall palms and only about 400 locals to share them with. But let's start with the treachery and deception."You wouldn't believe the snakes. Snakes as big as your head," says Ben Laird, a Wisconsonite who bought a vacation home here last year.

"People are poisoned in Chacala every day," deadpans Richard Laskin of Hornby Island, Canada, who has been coming here for 10 years."Are you sure that was a whale?" asks Laskin's friend Stu Reid, gazing offshore. "Could have been drums of toxic material."

Then — having done their best to deter the reading public from invading their winter haven — these good-natured liars go back to their tropical idylls. Laskin and Reid tuck into their breakfast at the Mauna Kea Café, one of about 10 restaurants in Chacala, as they gaze down upon a canopy of green, a deep blue sea, a deep blue sky and a few dozen pelicans, swoop-commuting between the two.

Sometimes, a lie is really just an invitation. And the truth about Chacala is just as intriguing, especially for a traveler who wants to actually meet Mexicans while vacationing in Mexico, who likes his coconuts straight from the tree, who doesn't need the bright lights of Los Cabos or Cancún.

Chacala, a village 60 miles north of Puerto Vallarta on Mexico's Pacific Coast, is built around the beach, a handsome half-mile crescent of jungle-adjacent sand. At the southern end of the beach, black volcanic rocks murmur in gentle surf. In the middle of the crescent, half a dozen palm-shaded restaurants serve fresh fish and shrimp (and keep a machete on hand for those new-fallen coconuts). To the north, two dozen battered little fishing boats are tied up at a modest dock.

In town, several lodgings have popped up in the last few years, most offering ocean views, modest amenities and nightly rates from $50 to $90. A little farther north, more than two-dozen luxury vacation homes, some of which rent by the night, have gone up in a gated compound called Marina Chacala.

But what sets Chacala apart from so many other modest but growing Mexican beach destinations is this: Thanks to the arrival of three hippie siblings here at the end of the 1970s, the town is awash in social experiments, many of them built around the idea that locals and tourists need to meet and learn from one another.

Under one 11-year-old program, called Techos de México (Roofs of Mexico), half a dozen villagers have added upstairs rooms and terraces, most with ocean views, none more than a five-minute stroll from the beach. When not snapped up for the season by wintering Canadians, most of these rooms rent for $22.50 to $60 a night.

Other tourists can volunteer on community projects, attend yoga or meditation seminars or learn Spanish as guests at a 24-year-old beachfront retreat called Mar de Jade (pronounced Hah-day), which in winter is usually priced at $120 to $135 per person per night, double occupancy, meals included.

But you don't have to volunteer. Instead, you can spend $50 a night on a hotel room with an ocean view and lie around. Or spend $625 a night on a mansion that sleeps 10 and lie around in splendor .

You can take a $10-per-person boat trip to snorkel by the rocks off Chacalilla beach. You can fish for dorado or sierra or surf at La Caleta Point. You can kayak between rock formations and secluded beaches, go birding in a mangrove swamp to the north or drive half an hour east to the petroglyphs at Alta Vista. You can ride a horse through jungle to a secluded beach or drive about two hours into the hills and see Lake Santa María, its waters collected in the caldera of an ancient volcano. Or you can stroll back and forth, with refreshment breaks, on that grand crescent of sand.

Ahhh, seclusion

Until the first paved road connected the village to Highway 200 seven years ago, the only way into Chacala was by dirt road or boat. Now, business is picking up and the occasional RV, rental car and taxi has joined the local traffic, including the cab that delivered me to my lodgings at dusk one day.

It had been a three-hour flight from LAX to Puerto Vallarta, then a 90-minute ride, and my first thought, rolling into town, was, "Uh oh." Two blocks of dirt roads, sleeping dogs and ramshackle storefronts. That was the commercial district.

Ahhh, but then I stepped out to the beach. It was nearly empty, a slight breeze blowing. The tall palms, the quiet, the loop of the beach between the rocky points at either end — this was a landscape to banish worry. In the restaurants along the sand, a small band of Canadian snowbirds nursed seafood and cervezas. A little way up the beach , 20 RVs were parked in the palm grove next to the beach, their owners paying $5 a night for the privilege.

Looking for a meal one night at about 7:30, I found nearly every restaurant closed. They've had electricity here for years, but from the look and sound of the beachfront after sunset, you'd think they were still waiting for it.

Intrigued by the gated luxury homes of Marina Chacala, I greeted one homeowner from Seattle and soon was getting a tour of his nearly completed villa, the onyx spiral staircase as well as the 400-square-foot bathroom in the upstairs master bedroom.

Remember, however, that the nearest ATM is six miles up the road in Las Varas. Dozens of residents still live in dirt-floor houses, roosters greet each dawn, and the dominant architectural style is brick box, not Spanish Colonial. Outside of Las Brisas restaurant, the gated grounds of Marina Chacala and the lodgings Mar de Jade and Majahua (where I stayed), little English is spoken.

But in four days, I never met anybody from Southern California, saw only one jet-powered ski in use and was never invited to go parasailing or purchase a time share.

"It's still real Mexico down there," said Ben Laird, he of the imaginary snakes, gazing out at the town one afternoon from his hilltop home in Marina Chacala. "Chickens at your feet. And everybody knows everybody."

International real estate sales challenge brokers and customers

2007-02-26T11:08:00.000-06:00

Agents broaden their skills and knowledge of global methods to attract clients

Poetry may be lost in translation, as Robert Frost declared, but in the world of international real estate, other things can be endangered too.

A lack of familiarity with title or contract procedures — by the agent or by the buyer — can be just one of the problems when different languages and cultures are involved in a transaction.
And such challenges have never been more evident, especially in the United States. The country's immigrant population continues to have a strong presence in the domestic market and the weak dollar, particularly against the euro, is luring many second-home buyers and investors from abroad. In addition, U.S. baby boomers are retiring and many of them are looking overseas for their next homes.

"The home buyer of the future is no longer 'there.' The global market is 'here.' That's been the real sea change," said Miriam Lowe, vice president of international operations with the National Association of Realtors. "Not white, not English-speaking. More diverse."

And as a result, the association is finding that more agents at home and around the world are interested in its specialty programs, Lowe said.

The Certified International Property Specialist program, which has been in existence for some years, teaches brokers how to work with foreign clients; the Transnational Referral System, a program started in 2004, connects agents with one another, educates them about the etiquette of referrals and holds them accountable for paying referral fees, a practice that is not standardized throughout the world.

"In countries where the commission rates are very, very low, they're beginning to open their eyes to the opportunity to make some income on referrals to the U.S.," Lowe said.

And while some agents said they had yet to see their first referral, others have had a different experience. Julie Kerschner, an agent based in Arizona and in Los Cabos, Mexico, said all of her business now comes from referrals — many in the United States but also some from Japan, South Africa, Thailand and New Zealand.

Raymond Covyeau, a Chicago agent who has an international specialist certification, said, "When I was trying to do this 20 years ago, you were dependent on the telephone and the fax." Agents interested in international business did attend annual meetings to network, but that was about it, he said.

In contrast, last year there were 2,275 certified specialists worldwide, about twice the number that existed in 1999, according to association data.

And 1,300 of those were in the United States, a number that has grown 20 percent a year during the past two years, Lowe said.

Other countries' real estate organizations also are offering training and forming strategic alliances. In November, the Association of Real Estate Professionals in Mexico entered a reciprocal membership agreement with its U.S. counterpart, said Gerardo Paredes, president of the Mexican chapter of the International Real Estate Federation.

Paredes explained in an e-mail that a member of the Mexican association now is automatically a member of the U.S. group too, entitled to attend training programs and to be involved in other activities.

While the level of the U.S.-Mexico affiliation is unusual, the U.S. association also has bilateral partnerships with associations in more than 50 countries.

Buyers are the ones who benefit most from the arrangements, say agents — and people who have purchased property recently.

"When somebody speaks your language and you understand 100 percent what they're saying, you feel a little more comfortable," said Gary Marsden, a car dealer from Wisconsin who last year paid $350,000 for a three-bedroom, three-bathroom condo a half-mile from the beach in Los Cabos, Mexico.

He had traveled to Mexico on business and loved it, but only flirted with the idea of buying a retirement home there because of the possible risks: "Trying to get the people to live up to what they say. You've got to make sure you're holding money back and that everything is there that's supposed to be there," he said. "Things can get a little slipshod."

After some aspirational Web surfing, he found Kerschner, who was certified as a specialist three years ago and now attends regular member breakfasts.

"She knew the local ropes," Marsden said. "It's about much more than selling a house down there. Doing business with a foreign and local government, it's just a totally different way."

To be certified, brokers must take seven days of seminars on real estate in Asia, the Middle East and other regions, pass a test and complete three international transactions. Courses cost an average of $1,200 and are available online.

Participants said they picked up various kinds of information: Which countries use which sales standards? What happens if you don't receive a referral fee? Who has reliable information on the resort market in Brazil or could help draw up legal papers in Bulgaria? And how to manage your country's image when prospective clients are thousands of miles away?

"There are some barriers which, in some particular cases, affect the growth and speed of international transactions," Paredes wrote, saying that stereotyping in the media was just one of the things deterring the growth of Mexico's commercial real estate market. "These legal and cultural differences can be solved with appropriate broker training."

Agents who complete the certification program then pay fees for online resources and networking opportunities.

Not everyone sees an increase in business after the classes. "I don't do much by the way of international. We're in the Midwest. It's not the same as Florida, California, New York City," said Donald Sturgeon, an agent in Cedar Rapids, Iowa, who has international certification.

But many agents have had a better result. "This designation gives me legitimacy," said Henda Salmeron, a residential agent in Dallas who went through the training in 2004. "It illustrates to foreigners that I've made a commitment to helping them and working with an international clientele."

The Dallas market is driven by buyers from Mexico and Latin America, but Salmeron works primarily with clients from France, Australia, England, Israel and her native South Africa.

"I have won business because I've competed with agents who didn't have this," she said of the certification status. "I think the designation does give me the opportunity to think about ways to do business, more so than the ways you would if you didn't have the training."

She described the difficulty of working with a couple from Bosnia who did not speak English or any of her three other languages: Dutch, German and French. She used a translator, but it still was hard to guide them through the process of buying a home, let alone convey the intricacies of U.S. legal and financial practices, she said.

"Even locally, we have nuances, so when you're dealing internationally, you have to be even more careful," Salmeron said.

First U.S. PGA Tour event in Mexico opens with shot at 'Devil's Mouth'

2007-02-23T15:46:00.000-06:00

PLAYA DEL CARMEN, Mexico: The first U.S. PGA Tour event in Mexico doesn't have Tiger Woods, Phil Mickelson or the prestige of the Match Play Championship that also is being held this weekend.

Instead, it boasts the "Devil's Mouth."

With white sand in front and mossy grass dripping over various shades of limestone around the sides, the "mouth" actually is the opening to an underground, cave-like passageway that comes out behind the second hole.

Known as a "cenote," it's the first of many natural delights found on El Camaleon, the Greg Norman-designed venue for this slice of U.S. PGA Tour history, the Mayakoba Golf Classic, which opens Thursday.

"It gives character right away," Norman said. "It's an opening statement: 'Here it is!'"

Viewed from tee-to-green, the area is shaped like an upside-down egg. It is about 30 yards long and 20 yards wide. It's steep, too, something not truly appreciated until standing on the green side and looking back toward the sandy front.

This week, it's also marked as a hazard with three stakes and a painted circle — all red, of course.

As striking as it is, the intimidation will be mostly for show this week.

The mouth is unlikely to swallow many shots, seeing as it is 320 yards from the tee of this 554-yard, par-5 hole. Pros should easily be able to keep their drives short or wide, then have little trouble clearing it with their second shots.

Still, during practice rounds and perhaps even the real ones, carts parked all around the area and walkers came by, too, to take a peek and wonder about this natural wonder.
"It's a bad place to be when you're playing golf, but it might be a fun place to be with your girlfriend," joked one caddie.

Norman recommended doing more than just looking at it.

"You can walk through all the bats and bat (droppings)," he said with a smile befitting his Shark nickname. "Go right ahead. I've done it."

It doesn't take going all the way through to appreciate the cenote.

From just a few feet in, thousands of stalactites are visible, some still dripping water. There is more water gurgling in pools, with plants growing out of rocks and thick roots of trees that are hundreds, if not thousands, of years old.

And, yes, there are a few shiny white golf balls.

"A lot of people don't go down there because it's hard to understand what exactly it is," said Douglas Goubault, the course's director of golf. "Once you get down there and start to see the depth of it, see how cool it is ... it's beautiful."

The story of how it was discovered is pretty cool, too.

Developers knew all along about underground structures because many of them were used to form a Venice-like canal system throughout this resort community along the Riviera Maya. But it wasn't until the course already was laid out and bulldozers were shaping the holes that this cenote presented itself.

The introduction came when a machine rolled over and the ground gave way. Once the rubble was cleared, workers saw the water-filled cave.

There was little thought given to filling it in. Norman believes in disturbing the environment as little as possible; besides, the key to all real estate is location, location, location, and a natural obstacle like this is tough to beat.

"The whole design stayed exactly as it was," Goubault said. "It was just perfect. It's just a wonderful characteristic to have."

Goubault grudgingly calls the cenote the signature piece of the course, noting that there are many more, such as the two holes facing the Caribbean Sea and many more lined by mangroves, areas densely packed with trees and other vegetation. Anyone venturing into the mangroves to find a wayward shot is more likely to discover an iguana or one of the course's namesake chameleons.

Although the world's top 64 players are at the Match Play in Arizona, the field for this event includes more than 40 U.S. PGA Tour winners. Those guys have combined for 148 victories, including nine majors, two by Lee Janzen.

There are also entries from 12 countries, with Latin America representatives from Mexico, Paraguay and Argentina.

"This probably already is or is going to be the biggest tournament, the most important tournament, in Latin America," said Carlos Franco of Paraguay.

Mexico sees rise in foreign investments

2007-02-23T15:39:00.000-06:00

Multinationals pumped in $18.9 billion in 2006, up 6.4%, according to government projections.

By Marla Dickerson, Times Staff Writer

February 22, 2007

MEXICO CITY — Foreign direct investment in Mexico probably increased 6.4% last year as U.S. manufacturers continued to ship production south of the border, the government said Wednesday.

But the infusion of $18.9 billion by multinational companies paled in comparison with the economic contributions of another set of "investors": immigrant workers who sent home $23 billion from their mostly low-wage jobs in the U.S.

"It's an OK number. Not spectacular," said Alberto Ramos, emerging-markets analyst at Goldman Sachs in New York, referring to foreign companies' spending on factories, equipment and real estate in Mexico last year. The preliminary figure released by the Economy Ministry was identical to the foreign direct investment recorded by the Bank of Mexico in 2005.

Officials said they expected an upward revision in the 2006 figure in coming weeks, leading them to project an increase from the previous year. The manufacturing sector accounted for 61.3% of the inflows in 2006.

The Big Three U.S. automakers and Toyota Motor Corp., in particular, have invested heavily in Mexico in recent years to take advantage of its lower labor costs and proximity to the U.S., the world's No. 1 automobile market. U.S. companies remain far and away the largest foreign investors in Mexico, providing nearly 64% of direct investment last year. Mexico has attracted more than $200 billion in foreign direct investment since the North American Free Trade Agreement was implemented in 1994.

The Economy Ministry said in a statement that the projected uptick in 2006 reflected "the confidence that international capital has in [Mexico's] economic and political direction."

Analysts such as Ramos characterized the performance as respectable but said Mexico needed to make changes to its tax code, labor laws and energy sector to garner significantly higher levels of investment. Indeed, the importance of remittances to the economy is considered a sign of weakness.

Meanwhile, investors increasingly are looking to the dynamic economies of Asia to build factories and set up businesses. As recently as 2000, the countries of Latin America and the Caribbean nabbed 41% of all foreign direct investment in the developing world, according to figures from the United Nations Conference on Trade and Development.

In 2005, that share had fallen to 31%; Asia's share jumped to 60% from 55% during the same period. "Latin America is losing importance and relevance," Ramos said. "Populism and political instability have eroded the region's appeal for foreign investors to commit capital."

The 'Americanization' of Mexico

2007-02-20T12:39:00.000-06:00

New English-language journal takes advantage of the growing population of U.S. expatriates living south of the border

Los Angeles Times

MEXICO CITY — The signs are unmistakable: an NFL game at Azteca Stadium, soaring land prices from Ensenada to Merida and a Starbucks infestation of the swanky Polanco neighborhood.

Though most U.S. residents are aware of the growing "Latinization" of the United States, a parallel phenomenon is taking place on the other side of the border. Already, at least half a million U.S. expatriates and long-term visitors make their homes in Mexico (plus another half-million Canadians). That number will soar as millions of retired baby boomers stampede south in the coming decades, remaking the cultural landscape in their own image.

Yet one thing this exile community has conspicuously lacked, until now, is a major English-language print journal to call its own. A handful of English-language newspapers and magazines from the United States are available here, including The New York Times and the Miami Herald's international edition. But Mexico's oldest, most visible niche English publication, the 53-year-old tabloid-style News, folded four years ago and hasn't fully been replaced.

That situation surprised Margot Lee Shetterly, 37, and her husband, Aran Shetterly, when the couple began scoping out a blueprint for Inside Mexico, the free, English-language monthly newspaper they launched last November.

"We were frankly surprised at the numbers, for the sheer size of the market," says Margot Shetterly, the company's president and managing editor, who like her husband never had worked for a newspaper before. "This is the kind of opportunity that comes along only once in a lifetime."

The couple seem determined to make the most of their singular chance.

Working out of their home in the fin de siecle Roma neighborhood with a core staff of eight, evenly divided between U.S. residents and Mexicans, they've produced a lively, attractive, 40-page gazette that offers something for both first-time sightseers as well as gringos who've gone fully native.

Unlike other past or present English-language papers, Inside Mexico targets ex-pats as much as casual tourists and businesspeople. And its feature-y writing style and emphasis on the arts, culture and lifestyles rather than hard news is more redolent of magazines than newspapers.

The print run of 20,000 is distributed at coffee shops, hotels and other touristy venues. But it's also being distributed in expatriate haunts and major beach resorts around the country. The couple also plan to open a radio station and have started distributing a weekly newsletter, the Tip, which goes out to 10,000 readers. Their Web site (http://www.insidemex.com/) also is attracting thousands of hits.

Heavy on profiles, features about cultural happenings and guides to the city's hot bars and restaurants, Inside Mexico takes some of its style cues from urban magazines such as "New York." But the Shetterlys, who write for the paper when they're not running it, say their true editorial model is the Village Voice or the Chicago Reader.

To that end, they vow that they will tackle hard-news topics such as Mexico's rampant drug-related violence and the real-estate scams that have afflicted some U.S. retirees in search of a Baja or Puerto Vallarta dream house.

"We may want to be an established presence ... before we take too many risks," says Aran, who holds the titles of the paper's editor in chief and CEO.

It all fits the Shetterlys' can-do, let's-put-on-a-show-in-a-barn approach to their work and shared life adventure. Aran, a rural Maine native, says he honed a passion for Latin culture while living in Cuba to research a book on William Morgan, an Ohioan who fought in the Cuban Revolution but had a falling-out with the revolutionary leadership and was executed in 1961.

Margot parlayed a University of Virginia degree in finance into jobs on Wall Street and at an HBO Web site. Then came Sept. 11, 2001. Three months later, the Web site was closed and Margot was off on a year-and-a-half sojourn that took her to Brazil, Venezuela and Belize. She and Aran met while working at a New York software company. "We've both done a little bit of everything," Margot says.

Big, Houston-based title company expands into southwest Texas

2007-02-20T12:32:00.000-06:00

February 18, 2007

By Bill Sontag

Feature Writer

As with many financial institutions, real estate agencies, and international trade groups, Stewart Title Guarantee Company, Houston, is expanding title insurance services – and many other products – along the U.S. Mexico border.

Stewart is described on the company’s Web site – www.stewart.com – as a “technology driven, strategically competitive, real estate information and transaction management company.”

The Houston firm’s relationship with Southwest Abstract Company, 115 E. Losoya St., Del Rio, is merely a continuation of a warm, 50-year collaboration. Despite the recent celebration of that golden anniversary, there’s no substance to a circulating rumor that Stewart is angling to own Southwest. “We’re not selling to anyone,” said Blake Lewis, Southwest Abstract vice president, Feb. 5.

Southwest Abstract has been in downtown Del Rio since 1910, Stewart Title got underway in 1893, and neither company has designs on any strategy other than continuing a range of services unique to southwest Texas consumers. But Stewart acted differently in other border cities last month when the company announced the acquisition of Border Title Group of Laredo.

Stewart’s purchase of Border Title included satellite offices in Eagle Pass, Alice, Carrizo Springs, Crystal City and Zapata, expanding on the company’s inventory of 9,500 offices worldwide.

Stewart pledged to retain existing management and staff at all the offices, suggesting the company’s new moniker, Stewart Border Title LLC, was little more than a name change.

Stewart offers a dizzying array of services through a vast network, including courthouse record technologies, flood zone determinations, financial services, GIS mapping, water rights title insurance, and title insurance of several kinds. Among the firm’s list of 22 service categories, one stands out of particular interest along the U.S.-Mexico border.

Mexico title insurance – guaranteeing the accuracy and security of land title to purchasers of land south of the Rio Grande – is not a big revenue generator for Stewart Border Title or Southwest Abstract, but it can be critical to those who need it.

Neither the Eagle Pass nor the Del Rio offices sell title insurance directly, but refer requestor information to the Houston headquarters to effect transactions. “We will tell people that it’s something else we can facilitate for them, but it’s not something we’re actively marketing,” Lewis explained.

International Living magazine lists only two title insurers working in Mexico on behalf of U.S. clients, First American Title Insurance, Dallas, and Stewart Title and Guarantee, Houston.
“We’ve probably had only five inquiries about Mexico land title insurance in the past six months,” Lewis said. “But just knowing what I know in this business, people even remotely thinking about buying real estate in Mexico would be crazy not to have title insurance.”

Arturo De Los Reyes, manager of Stewart Border Title Group, 703 Main St., Eagle Pass agrees with Lewis about the importance of insuring title to land purchases in Mexico. De Los Reyes and eight title insurance associates refer such requests from the United States to the Laredo office of Stewart Border Title, and inquiries from within Mexico are directed to Stewart offices in Mexico City, Monterrey, Guadalajara and Cancun.

“We started doing business over there because of all the international U.S. companies starting up business in Mexico, such as Wal-Mart, H-E-B, Sears, McDonalds, Whataburger, and Burger King,” said De Los Reyes. “All those franchises started looking for the same product in property purchasing that they had [available] in this country, namely to buy insurance to secure their title.”

But, again, when inquiries surface about title insurance in Mexico, De Los Reyes and his staff refer the requests to other offices. In Eagle Pass, his bread-and-butter revenue stream comes from traditional land purchases in the United States.

“We do a lot of commercial and residential title insurance, and ranches are a big part of our work here, too,” said De Los Reyes. “Commercial real estate is doing very well here now, and there are a lot of transactions going on in Eagle Pass for retail sales property.” The office transacts about 1,200 real estate deals annually.

With his Del Rio staff, Lewis hopes to dispel myths about land purchases in Mexico, particularly the persisting notion that Americans – or those without Mexican citizenship in general – are prohibited from buying land there. “People were just never aware that they could, but some of these rules have changed over the last few years,” Lewis said.

Marisol Fuentes, a Mexican attorney with U.S. citizenship working as escrow assistant for Southwest Abstract, explained that Americans have always been able to purchase land in the interior of Mexico. The confusion arises along a narrow strip of land, 100 kilometers or about 60 miles in width, circumnavigating the Mexican border with the U.S. and Guatemala, and inland from Gulf of Mexico and Pacific Ocean shorelines.

Within that perimeter ribbon, Article 27 of the Mexican Constitution of 1917 prohibited sale of land to foreigners, but a 1933 amendment and a 2000 interpretive rule modified the prohibition. The new “special procedure” – entitled fideicomiso, or trusteeship – enables land purchases when handled by Mexican banks acting as trustees for the transaction.

Lewis explained that, historically, property purchases were somewhat protected by “title opinions” rendered by attorneys, and his firm would prepare an abstract of title ownership – rather like a lineage of land possession – on which the opinions were based. “Title insurance came along to protect land purchasers against any missing information in the abstract to the title opinion,” Lewis said.

“Missing pieces of information” are compelling reasons for arranging title insurance today, particularly when buying outside the United States, Lewis explained.

Access makes Puerto Vallarta a perfect snowbird perch

2007-02-19T13:27:00.000-06:00

Tom Kelly
Herald columnist

Who were the first snowbirds? It depends on where you ask the question.

Historically, snowbirds have been retirees who escape the cold of winter for a warmer climate. Residents of the East Coast tend to say they were the first to dodge the snow by heading to Florida and the Caribbean. West-Coasters picked up the trend much later and invaded Arizona and southern California. The term snowbird also is given to a significant number of Canadians who make Victoria, B.C., their home in January and February.

Snowbirds usually are able to be away from home for long periods of time, often can afford to purchase a second home and have even been known to use their primary and second homes for creative tax purposes and income streams.

David Collins, chairman of Active Living International, a company specializing in the research and development of active adult communities, is an expert in predicting where snowbirds will prefer to land. His company's recent assignments have included a study of the 50-and-older housing market for Mexican developer CEMEX and the construction of a 150-unit retirement resort for Sensara Partners on Spain's Costa del Sol. The Spanish development, which opened in 2005, was honored by the National Association of Home Builders and was named the best retirement housing project in Europe.

The Mexican project, called Sensara Vallarta, is the first active adult community for people 50 and older to be developed in Mexico. It contains 250 luxury condominiums inside the grounds of the El Tigre Golf Course near Puerto Vallarta. The complex, designed by Mexico City architect Jose Vigil, who conceived many of the homes in nearby exclusive Punta Mita area, is a 15-minute drive from the Puerto Vallarta airport.

Why Puerto Vallarta? What makes this destination the choice over so many wonderful communities in the sun south of the border?

"In addition to the sun, Puerto Vallarta is all about access," Collins said. "There are more than 15,000 air flights a year now, and the prices are still reasonable for the type of person our developments target. Cancun definitely is a market, but it's more of a hotel market. Los Cabos is really more higher-end and not that easy for a lot of people to get to."

Active Living International's presence has led to additional interest in the Puerto Vallarta area for developers of the over-50 market. Front Porch Development, a Burbank, Calif.-based company specializing in the senior market, is partnering with Mexico-based Plenus for a project called Luma, a 440-residence community on the ocean in Nuevo Vallarta.

According to Active Living International, active adults are defined as people older than 50 with an independent, comfortable and active social life. They are physically fit and have a variety of interests, including travel, golf, tennis, swimming and socializing. Active adults think in terms of longevity rather than life expectancy. They typically retain their own homes but plan to acquire a second home and may downsize their living arrangements without sacrificing quality or convenience. They want quality, upscale options and amenities for a vacation or retirement lifestyle.

Sensara condominiums start at approximately 1,312 square feet for one-bedroom units and range up to 2,786 square feet for three-bedroom homes. Luma's condos start at 1,678 square feet for bedroom units and range up to 5,498 square feet for penthouses. Prices for both developments start in the $300,000 range, with the Luma penthouses commanding more than $1.2 million. For more information, go to www.mexicobuyersguide.com.

Active Living chairman Collins said Sensara Vallarta is designed for the homeowner who wants a luxurious, tropical escape from the stress of the real world that also has access to an unmatched range of activities and amenities. In addition to their own pools, clubhouse and restaurant, residents of Sensara homes will have memberships for Paradise Village's new sports club, plus entry to the Playa Royale Beach Club, which stretches along the Bay of Banderas.

Luma's waterfront residents also will have first-rate amenities including high-tech security, American-style health care, high-speed Internet, English-speaking staff and a "personal lifestyle" concierge program.

By definition, snowbirds take flight for the sun. However, with second-home prices rising in the U.S., the lure of the sun must include reasonable costs, available health care and non-negotiable, quality amenities. The world's leaders in over-50 projects are now betting on Mexico, and other countries south of the border certainly will follow.

Tom Kelly's book "Cashing In on a Second Home in Mexico: How to Buy, Rent and Profit from Property South of the Border" was written with Mitch Creekmore, senior vice president of Houston-based Stewart International. The book is available in retail stores, on Amazon.com and on tomkelly.com.

U.S. Developer Plans 400-Unit Full-Ownership Property for Seniors in Mexico

2007-02-19T12:32:00.000-06:00

February 15, 2007

By Barbra Murray, Contributing Editor

Front Porch Development Co. has announced it will develop a 400-residence full-ownership property, targeted to the over-50 active adult community in Nuevo Vallarta, Mexico. Burbank, Calif.-based Front Porch Development claims to be breaking new ground as it will be the first American developer to penetrate the Mexican active adult full-ownership market with the waterfront development. Luma will be part of the English-speaking Paradise Village resort community, which sits along the Bay of Banderas about a half-hour from Puerto Vallarta. The property will feature a wellness center, meeting space, a café and bar, a library, a sports room and an art gallery. Additionally, the development will be designed to avoid disturbing the area's plant and animal life.

Front Porch Development is joining forces with Mexico-based real estate company Grupo Krone on the development of Luma. Grupo Krone has a presence in Mexico and the United States.

Front porch is a development partner of the non-profit senior living real estate company Front Porch, which has a portfolio of 13 retirement communities in California, Florida and Louisiana.

Marketing for Luma will be predominantly focused on prospective buyers in North America, but potential residents in Mexico will be targeted, as well. Construction is on target to begin this fall with a projected completion date of fall 2008 for the first series of residences; the remainder of the development will be finished within four years of construction start.

Mexico Aims at Tourism with Money

2007-02-19T12:10:00.000-06:00

Cancun, Mexico, Feb 15 (Prensa Latina) Mexico wants to give a shot of 1.3 billion dollars to its tourist sector this year with important investments, in order to become among the five most visited countries of the world in a short time, said national executives.

Miguel Gomez Mont, president of the Fund to Foster Tourism (FONATUR), made this declaration to specialists and reporters on Thursday, before taking part in the fifth National Forum in Cancun.

Eleven Mexican states will benefit from the monetary infusion, as the plan is to surpass the 22 million foreign tourists last year with more varied offers.

Far beyond Pacific and Caribbean spas like Acapulco and Cancun, favored destinations will be Aguas Calientes, Coahuila, Baja California Sur, Nayarit, Chiapas, Nuevo Leon and Tlaxcala.

New projects will directly generate almost 3,000 new jobs and another 13,000 in support areas.

Cancun hopes to build a zoo, not only for tourists, but also for the almost one million people living in the municipality of Benito Juarez, which once was a small port and fishing village.

International Living Magazine Details Top Seven Real Estate Opportunities Worldwide in 2007

2007-02-19T11:00:00.000-06:00

BALTIMORE, Feb. 15 /PRNewswire/ -- International Living magazine -- a leading resource for helping people live, travel, and prosper overseas --has released its first annual forecast of the hottest international realestate markets.

The report -- Markets to Watch in 2007 -- focuses on seven emergingreal estate markets that currently enjoy a special combination of economic,political and other factors that give them attractive investment potential.The report details the specifics of the seven markets and how investors canbest seize available opportunities, http://www.internationalliving.com/markets_to_watch.html.

"The price of real estate generally goes up in line with inflation. Butin some pockets of the world, real estate will appreciate at a much faster rate," says International Living's Leif Simon, in the report. "These are usually destinations with unique, good value, limited inventory. Beach, for example, or old -- truly old -- city centers. The less there is of something, the better for whoever owns it." The markets International Living is watching for 2007:

-- Montenegro: A hidden yet spectacular Adriatic gem. Lapped by a glittering sea of translucent aquamarine, this is one of the loveliest countries in Europe -- and one of the most forgotten.

-- Cartagena, Colombia: A walled city in "The Forgotten Caribbean". White-sand beaches, world-class diving and snorkeling, and an ancient walled city crammed full of faithfully restored and well-maintained examples of Spanish colonial architecture.

-- Malaysia: This is Southeast Asia's top retirement haven, which provides a Western-type lifestyle. This underrated destination is also under-priced.

-- Calabria, Italy: A hidden, sun-kissed corner of Europe, it is encircled by clear silver-blue sea on three sides. Despite the region's obvious allure, almost nobody knows about it.

-- Ciudad Vieja, Uruguay: One of the world's top 10 cheapest cities and still undiscovered. The real estate in this city began a renaissance back around 1995, and began to really hit its stride in 2004. The property market in this area is definitely on the move.

-- Honduras Cloud Forest: A mystical cloud forest-hidden in a tropical mountain paradise. In addition to the natural beauty, these mountain forests are just minutes from a charming beachside town with an international airport.

-- Mexico's Flamingo Coast: Dozens of quaint little beach towns, side-by-side. The Flamingo Cost offers warm weather, friendly locals, a safe atmosphere, and great food; what's more, the maddening crowds have not yet arrived.

International Living has an established track record of predicting which international real estate markets are ready to increase in value, but this is the first time the organization has produced a comprehensive forecast report. Some of the real estate markets that International Living has correctly predicted would increase in value include:

-- April 1988 -- Dublin, Ireland
-- March 1989 -- Costa Rica
-- October 1989 -- Tuscany, Italy
-- March 1991 -- Panama
-- November 1993 -- Dordogne, France
-- February 1994 -- Roatan, Honduras
-- November 2002 -- Buenos Aires, Argentina

International Living (http://www.internationalliving.com) -- founded in1979 -- helps people live out their dreams by relocating, traveling, andinvesting overseas. International Living publishes a monthly magazine, a free daily e-letter(http://www.internationalliving.com/e-letter_signup3.html) which is read by more than 420,000 subscribers daily, and several country- specifice-letters. The company is headquartered in Waterford, Ireland, with offices in Baltimore, Md., Panama City, Panama, and Paris and local offices inMexico, Nicaragua, Argentina, Honduras, and Ecuador.

CONTACT: Daniel Lott, Web Marketing Director,dlott@internationalliving.com, 410-895-7917.

GE Money on track to lend $150 mln in US-Mexico mortgages in 2007

2007-02-16T12:37:00.000-06:00

MEXICO CITY (MarketWatch) -- GE Money, the financial services arm of General Electric Co. (GE), expects to lend about $150 million this year to U.S. residents who want mortgages to buy residential property in Mexico, a company official said.

"We closed (last year) with about $60 million of these loans. We are sure that this year we will do two-and-a-half times what we did last year," said Edwin Vega, chief executive of mortgage lender GE Money Credito Hipotecario, in an interview this week.

GE Money is keen to tap what it sees as a potential market worth billions of dollars that until recently has grown with little or no mortgage financing.

U.S. citizens have been purchasing homes in Mexican resort destinations like Los Cabos and retirement centers such as Guadalajara for decades, with home buyers paying in cash or obtaining expensive financing from real-estate developers and niche lenders.

Now large international lenders like GE Money and Spain's second-largest banking group Banco Bilbao Vizcaya Argentaria (BBV) want to leverage their presence in Mexico and the U.S. to bring more financing to this market.

Demographics are working in lenders' favor since about 78 million baby boomers will start retiring in the next decade and some will probably look to Mexico, where property prices haven't reached what some analysts have called stratospheric levels observed in popular retirement destinations in California and Florida.

The privatization of Mexico's airport industry and the emergence of low-cost carriers in recent years have also brought affordable air travel to new areas of the country, especially coastal destinations that are popular with home buyers from the U.S.

"There are a large number of people who are turning to Mexico, which they see as an attractive place to have a vacation home, a weekend house, and a retirement property," Vega said.

GE Money started piloting its "Mexican Dream Mortgage" program in five locations in late 2005, before moving to a full commercial launch the following year. Currently, the program is available in 12 locations, including the Baja California peninsula, Cancun, and the colonial city of San Miguel de Allende.

GE Money offers dollar-denominated adjustable-rate mortgages and fixed-rate mortgages for up to $1.5 million, although the average loan has been around $350,000.

The company's WMC Mortgage unit handles credit scoring and paperwork in the U.S. On the other side of the border GE Money Credito Hipotecario originates the loans, and GE Capital Bank provides the Mexican bank trust for foreigners who want to buy property on the coast or near the border.

During the first half of the year, GE Money plans to expand its product offering with a cash-out refinancing product that will allow citizens from the U.S. who already own property in Mexico to unlock the equity in their homes, and mortgages to buy homes under construction. To date, GE Money has only financed finished apartments and houses.

Mortgage financing will also allow Mexican real-estate developers to move their inventory faster and open up a much larger universe of potential clients.

"The developer collects his money faster and can move on to the next project. We are accelerating the cycle," Vega said.

The executive said the cross-border mortgage market is so new that GE Money and its competitors haven't yet started to fight over clients.

"I think the way things are right now, there is market for everyone. Something we have noticed in the domestic market is that more players in a growing market is good for everyone. It brings legitimacy to the product," Vega said.

American Title Insurance Guards Against Risky Land Deals

2007-02-16T11:10:00.000-06:00

Buying property overseas can be risky, but US and Canadians have access to a special service that can guard against loss.

It's called title insurance - a standard item for domestic property purchases for decades, and a growing safety net for people buying second and retirement homes abroad.

Companies like First American Title Insurance Company, Stewart Title and a handful of other North American insurers have a growing network of real estate lawyers and agents abroad who research the chain of ownership of a piece of property a client wants to buy.

First American representative Turalu Brady Murdock, who supervises title research in 35 countries in Latin America and the Caribbean, said her company insures the buyer in American dollars after carrying out a "due diligence" title search. If there are questions about ownership, the company might warn against a purchase or insure at a less-than-absolute level.

"If we say you own it, and it turns out you don't, we have to indemnify you against the loss," she said in a telephone interview. "We're insuring that you own it, no one else has a mortgage on it, and no one else has the right to use it."

If a challenge is made down the road, the company also pays for attorneys to defend ownership. Property buyers pay a one-time fee for title insurance. Typical rates are 1,000 dollars for a 200,000-dollar land purchase in Mexico, or 850 dollars for 150,000-dollar properties elsewhere in Latin America.

The fee goes up accordingly for more expensive properties: a 5-dollar charge is added for each additional 1,000 dollars in property value. Across Latin America, some property is only held on a lease, or possessory title system, and can only be titled to a potential purchaser after the lease expires - a risky enterprise, Brady Murdock said.

Other land might belong to the government but have been occupied by squatters for decades who claim ownership.

And citizens from the US and Canada seem to attract frivolous claims against their newly-acquired property because some locals believe they have deep pockets and will readily settle out of court to avoid hassles, Brady Murdock noted.

With title insurance, however, a lawyer would be engaged to combat such claims - although cases can be tied up for years in the courts.

"Most people are risk takers when they are buying overseas," Brady Murdock said. "I can't imagine buying a piece of property overseas without title insurance."

Symptomatic of the rocketing real estate interest in Latin America, First American only started its foreign business in the 1970s in Mexico. In 1997, as the dot.com sector was thriving and US baby boomers were starting to think about retiring, demand increased exponentially, she said.

That's when the company started developing its network of reliable English-speaking real estate lawyers across Latin America.

From 1998 onwards, First American doubled its foreign title business every year. In 2006, the business nearly tripled at a volume of 160 per cent times the previous year. She declined to estimate actual numbers of purchases pending release of the 2006 annual report.

Brady Murdock noted that it's not just wealthy or baby boomer Americans buying second homes in Latin America.

As land prices have skyrocketed in the US, many young American families with small children are moving south to live for good, doing either home schooling or sending children to local schools.

Many Americans have been starting businesses, or are connecting to businesss at home via the internet. "It's just amazing," she said.

By Pat Reber

Carlyle Group establishes fund for investments in Mexico

2007-02-13T14:54:00.000-06:00

Washington Business Journal - 10:39 AM EST
Monday, February 12, 2007
by Neil Adler
Staff Reporter

The Carlyle Group has raised more than $130 million for an investment fund focused south of the U.S. border.

The D.C.-based private equity firm says its new fund, Carlyle Mexico Partners, has raised $134 million to commit to companies primarily in Carlyle's seven areas of expertise, such as the aerospace, defense, energy, health care, technology, telecommunications and media.

Carlyle Mexico Partners currently has five investment professionals based in Mexico City.

"As we've seen in markets around the globe, Mexico presents an excellent opportunity to combine private equity investments with quality local businesses to create first-class global competitors," says David Rubenstein, a co-founder of Carlyle, in a statement.

Carlyle, which invests in buyouts, venture and growth capital, real estate and leveraged finance, has $54.5 billion under management.

$1 Billion in Real Estate Planned in Mexico by Related International, Division of The Related Group

2007-02-12T17:38:00.000-06:00

Largest Condo Developer in United States Looks to Latin America for Urbanization Projects
MIAMI--(BUSINESS WIRE)--The Related Group, the largest builder of luxury condominiums in the United States, announced today it will invest more than $1 billion in Mexico real estate over the next two years. To drive these efforts, the company has formed a new subsidiary, Related International, dedicated to urbanizing areas in which they develop.

Related International has first set its sights on Puerto Vallarta to develop ICON Vallarta, a luxury condominium situated on five acres of oceanfront with exclusive beach access, and located just minutes from downtown.

Related International plans to erect upscale condominiums and hotels in other tourist locations in Mexico, including Acapulco, Cabo San Lucas, Playa del Carmen and Zihuatanejo. Beyond Mexico, the company is researching Costa Rica, Panama, Colombia, Argentina and Uruguay.

“We’re excited to bring our style of development to Latin America,” said Jorge M. Perez, CEO of the Related Group. “This is not a cookie cutter, throw it up and run venture. We’ll embrace the Latin American culture and develop truly urban landmarks that center upon the arts, history and beauty of the area.”

Just as they did in the U.S., Related International will partner with the best architects, designers and artists to create residential developments built for the way people live today – with functional living spaces and exceptional amenities.

“We’re looking for the gems of Latin America where we can embrace the natural environment and help create a more attractive area through urbanization,” added Roberto S. Rocha, president of Related International.

Construction on the $200 million ICON Vallarta will begin in mid-2007 and includes 343 condominiums ranging from $200,000 to $1 million, a cost value not typically found in the United States or other areas of the world. For the design of ICON Vallarta, Related has chosen the renowned work of Yoo by Philippe Starck in conjunction with the award-winning architectural firm, Arquitectonica, known for innovative contemporary architecture.

Founded by Chairman and CEO Jorge M. Pérez, The Related Group has earned a reputation in the United States for its visionary design and development of luxury condominiums, mixed-use centers and multi-family properties. Since its inception, the privately-held company has built and managed more than 55,000 condominium and apartment residences in major markets throughout Florida.

Ten affordable, under-the-radar Mexican cities and beach towns

2007-02-12T17:32:00.000-06:00

The U.S. might share a nearly 2,000-mile border with Mexico, a country almost three times the size of Texas, but most American travelers are familiar with only a handful of its destinations—Cancun, Puerto Vallarta, and other beach towns that cater to Americans.
While a relaxing vacation at a beach resort never hurt anyone, visitors who avoid traveling elsewhere are missing out on some of the best that Mexico has to offer: virgin beaches unspoiled by development, colonial cities that are older and more European than anything in the States, and indigenous cultures that still hold true to ancient traditions. All that, and lower prices, too.

In many colonial cities and small out-of-the-way beach towns, you'll find B&Bs and inns charging as little as $50 a night (or less) and luxurious accommodations in converted haciendas and Spanish estates for less than $150 a night. As for dining and shopping, you'll always find cheaper and more authentic food and handicrafts beyond the big tourist zones.

To experience Mexico outside the resorts you'll need to show a bit of independence and an openness to a less structured style of travel. Driving a rental car down crumbly roads, speaking some basic Spanish, and sharing your room with a lizard or two may be involved. Nevertheless, for the right kind of traveler, these elements are part of the excitement of venturing off the beaten path.

Here's a glimpse at 10 affordable, under-the-radar Mexican cities and beach towns that can be added on to a beach resort vacation or made the focus of a trip.

http://www.smartertravel.com/travel-advice/ten-affordable-under-the-radar-mexican-cities-and-beach-towns.html?id=2309064

Surf’s Up, and Upscale, as Sport Reverses Its Beach Bum Image

2007-02-12T13:00:00.001-06:00

For $10,000 a day, you can have the ultimate surfing sojourn in Indonesia aboard the 110-foot Indies Trader IV, a sort of floating hotel with 15 cabins, a helipad and three-course meals with wine. A motorized tender takes you to the waves.

Sandy Huffaker for The New York Times

Liv Galendez learning to surf in California. Catering to wealthier surfers has become a big business.

Or for a daily rate, in addition to the cost of his airfare, Brad Gerlach will give private instruction to select clients anywhere in the world. Mr. Gerlach, who was ranked No. 1 on surfing’s world professional tour during the 1986 and 1991 seasons, termed the cost “not cheap at all.”

Surfing, once the sport of Hawaiian kings, has come full circle. After becoming a counterculture activity for beach bums and bohemians, it has emerged as a status sport, like skiing and golf.

“It’s sort of lost that dirtbag appeal,” said Isabelle Tihanyi, who with her twin, Caroline, started Surf Diva, a school based in La Jolla, Calif., that caters mostly to women, a growing segment of surfers. “Now you see more yuppies in the water with a brand-new board and a brand-new S.U.V. — all the latest technical gear.”

This new species of surfer contributes to a booming market for vacation packages, instruction, equipment and real estate near some of the world’s best surf breaks. Like golf, surfing has become an ideal activity around which to discuss business. Surfers find plenty of time for talk while driving in search of good spots, while changing into and out of wetsuits in the parking lot, and especially while waiting between sets of waves.

“There’s more down time in surfing than any other sport,” said Chris Mauro, the editor of Surfer Magazine.

It was not always this way. “In the 1970s, you would stop at 25 and went to work or you were going straight to loserdom,” Mr. Mauro said. “It used to be a strike against you if you were a surfer.”

In those days, continuing to surf while carrying on a career was a matter best left secret. “If you were a surfer and you wore a suit and tie to work, you tried to hide the fact you surfed,” Mr. Mauro said. “Now, it’s like you’re the star on the company basketball team.”

Todd Juneau, a real estate consultant in San Diego and a longtime surfer, trolls for business in local lineups. “I’ll sit in the water and listen to conversations, and if someone says something about real estate, I’ll find a way to interject,” he said. “And it pays off.

“In San Diego, you never know if the guy next to you could be a multimillionaire, or a judge or an executive, and he’s surfing.”

Dionne Mochon, 32, a prosecutor in San Diego, began taking surf lessons last year. “Surfing has opened so many doors to meet people, network and just enjoy being a woman interacting with other professionals on a social level,” she wrote in a recent e-mail message. “Judges I appear with surf, opposing counsel surf, my colleagues surf, and I made so many friends who surf as well.”

Enrique Huerta, who is known as Moose, said he landed a job in Manhattan’s fashion industry partly because of surfing. A former professional longboarder, Huerta, 28, works in international sales and merchandising for a denim company. He got to know two of the company’s founders during surf sessions off Long Island.

“That was kind of the icebreaker,” Mr. Huerta said.

Jeff Kolodny, a talent agent for the William Morris Agency in Beverly Hills, Calif., said he had seen a surge in interest in surfing at work. Mr. Kolodny began surfing at 12 and worked as an associate editor at Surfing Magazine before joining William Morris, a company with a growing number of surfing devotees.

“Only in the last few years has anyone cared that I’m a surfer,” he said. “Now I’m really popular. People you would never imagine in your life are going to the beach, senior executives at my company.”

It is unclear why surfing has found a broader respectability. Some point to the initial public offering of Quiksilver, the board apparel and accessories company, in 1986 as a catalyst.

Perhaps reflecting surfing’s laid-back roots, concrete figures on participation are hard to come by. Two million people consider themselves active surfers in the United States, twice as many as 20 years ago, according to Action Sports Retailer, the leading board-sports industry trade show. An active surfer is considered someone who goes out at least eight times a year.

Surfing’s popularity has helped drive international real estate sales, with property along remote coastlines being bought and developed into resorts and vacation homes. Parts of Costa Rica are considered so crowded that some surfers have pushed north to Nicaragua. And in Mexico, rumors abound about development in a remote area of Baja California known as Scorpion Bay.

A drive of more than 800 miles from San Diego, Scorpion Bay can be difficult to reach, and it lacks most amenities. Only private airplanes can land there, and those who drive must cover a few hundred miles along dirt roads through the desert. For years, most people stayed at a cold-shower campsite on a rocky bluff above the beach. On their Web site, Scorpionbay.net, the campground’s operators denied that they would sell out.

Surf schools have become another growth industry. San Diego had so many that the city began to regulate them.

Richard Schmidt, a renowned big-wave surfer, started giving lessons part time in 1978, while working as a lifeguard in Santa Cruz, Calif. Six years ago, his surf school began taking clients to Costa Rica during the winter. They stay near the beach in a house where Mr. Schmidt’s wife teaches yoga. They also retain a masseuse.

Sandy Huffaker for The New York Times

Todd Juneau, left, a real estate consultant, and Dave Sims commuting to Pacific Beach in San Diego. Juneau listens in the surf for business talk.

In addition to trips to Costa Rica, Surf Diva holds about 50 corporate clinics a year in Southern California. Packages can include accommodations, transportation, golf and spas.

Many of Surf Diva’s clients are from New York City; they work on Wall Street or in the entertainment or fashion industries. Some stay at La Valencia Hotel in La Jolla, where rooms start at more than $300 a night.

“It’s more than just a vacation,” Isabelle Tihanyi said. “It’s a girls’ adventure trip.”

But for more adventure, surfers can take boat trips to Costa Rica, Nicaragua, Indonesia and East Timor.

“Good surf is predominantly a third-world deal,” said Jake Burton Carpenter, founder and owner of Burton Snowboards. “In surfing, you’re trying to get away from the crowd.”

Mr. Carpenter, 52, whose company bought Channel Islands Surfboards in June, began surfing as an adult and now rides waves an average of 60 days a year. He plans to take a boat trip to the Maldives in the Indian Ocean this summer.

“A big part of what’s happened,” he said, “is that the market has aged, and not in a negative way. I would run into so many people who say, ‘Oh, I used to surf.’ But people are staying with it more. These board sports you can do the rest of your life.”

As a result, high-end boat charters in destinations like Indonesia have begun to serve older, more affluent clients. “With boat trips, it’s an older demographic because these trips are so expensive,” Mr. Carpenter said.

Through SurfAid International, a nonprofit public health organization started in the Mentawai Islands, Indonesia, by a doctor who is also a surfer, Mr. Gerlach met one of his well-heeled clients. That client introduced him to others. They fly him to places like Costa Rica for lessons.
As a surf coach, Mr. Gerlach functions like a golf pro, offering insight on the mechanics of catching and riding waves, and sharing some shortcuts.

“You’ve got to pick the right surfboard for the conditions,” he said. “You wouldn’t want to play 18 holes with a wedge, and you wouldn’t want to play 18 holes with a driver.”

Montauk, a prime East Coast surfing spot at the tip of Long Island, serves as a symbol for the sport’s evolving status.

Last summer, in a dirt parking lot near Ditch Plains, a bottlenecked surf break, Mr. Huerta said he overheard a comment that spoke to the state of surfing today. Through a breeze, he heard a voice say, “I can get service on my Treo at Scorpion Bay.”

Loans and Economic Overviews in Mexico

2007-02-12T13:00:00.000-06:00

The law recognises that all legitimate debts are valid obligations of any debtor. The debtor shall fulfill its obligation, using all its assets where necessary.

Securities in México are legislated by the Law of Securities and Credit Operations (Ley de Títulos y Operaciones de Crédito). According to this law securities can be nominatives or to the bearer.

Usually, if debt is incurred in the ordinary course of business, and is not executed in the form of a security ("título de crédito") such as a promissory note, the creditor will need to demand payment through an ordinary commercial procedure. In such procedure, the creditor must prove the existence of the debt and the fact that the debt has matured but has not been paid.

If there is evidence that the debt is secured, the creditor could try an executive commercial procedure before the court. Under this alternative, when the court receives the claim, it not only informs the debtor about the procedure but also requires the debtor to either: (i) make the payment to the court or (ii) immediately produce evidence to the court official that payment has been made.

If the debtor does not do either (i) or (ii), then the assets would be seized by the court to ensure and guarantee that if at the end of the trial the debt has to be honored, the court has enough assets upon which to collect and recover the debt.

In the situation where the debt has been executed in the form of a security the procedure varies, depending on the type of security as follows:

Trust Arrangement – At the time when the debtor incurs the debt, it transfer certain assets to a third party (a trustee), which is usually a bank, with irrevocable instructions. These instructions provide that if payment is not made, the trustee can liquidate the assets and make the payment. This mechanism has proved to be very successful, although there are some precedents, where the courts have issued injunctions to trustee to prevent them form liquidating assets until the court has had time to review the fairness of the arrangement.

Mortgages – There is a separate court procedure for mortgages. The court verifies that the payment is due and authorises the sale of the asset. The sale is made through public auction carried out by the court itself. Payment is made from the proceeds. If proceeds are insufficient to pay the debt, the balance will be an unsecured claim.

Lien – The law allows liens on goods to be created; there are two alternatives:

i) The possession of the goods is transferred from the debtor to a third party, or under certain circumstances, to the creditor. In the event of default, the creditor may ask the court to approve the sale of the goods under lien. In such case, the judge notifies the debtor and gives them a 15 days to show evidence of the payment. If no evidence of payment is produced, the judge will approve the sale of goods. The corresponding consideration or price will be kept under lien until the judge approves the payment.

If the proceeds are insufficient to pay the debt, the balance will be an unsecured claim.

ii) In the case of a grant of a lien without the transfer of goods to either a third party or the creditor, the debtor can continue to enjoy the possession and the use of goods.
The debtor would then be able to continue its business operation, while simultaneously being able to grant a security to its creditor.

Corporate Bankruptcy and liquidation processesAs in many other jurisdictions, informal processes may be negotiated to rescue a company or to liquidate it.

In Mexico, the majority of restructuring processes are actually out of court. Usually, the different interested parties organise themselves into a committee. The committee works among the different creditors in order to effectively negotiate with creditors.

The negotiation attempts to estimate the scenario in which the debtor can recover its financial debt and in which creditors maximise recovery and limit their losses. If the debtor is not financially viable, then the committee may agree to an orderly liquidation.

When an informal process is unsuccessful, the different parties related to the company can initiate a formal procedure. Formal procedure can also be initiated if the financial condition of the debtor has deteriorated significantly.

In May 12, 2000, a new Law on Mercantile Insolvency Proceedings ("LMIP") was issued and published in the official Journal of the Federation, thus becoming effective in May 15, 2000.
The LMIP states a one full process in two main phases:

Conciliation – The first phase provides the basis for the mercantile corporate entity to attempt to reach a restructuring agreement with its creditors. Although any creditor that enters this type of agreement will loose its rights during the insolvency proceedings. The figure of conciliator may disrupt the conciliation phase and commence the bankruptcy/liquidation phase, when no agreement has been reached by both parties.

Conciliation agreements are only effective when approved by the Debtor and more than 50% of the total sum of creditors.

Bankruptcy/liquidation – The second phase provides for the liquidation of the company if it is unable to conclude an agreement with its creditors during the conciliation phase.

Three suppositions have to occur before declaring the bankruptcy, which include that the debtor requests bankruptcy, that the time limit for reaching an agreement in the conciliation phase has past and that the Conciliator requests for bankruptcy after considering that no agreement will be reached.

When bankruptcy is declared, management will be taken by a trustee-in-bankruptcy and a Judge will make orders to occupy property and business. The Conciliator, when authorised by the Federal Institute of Specialist in Mercantile Procedures, can act as the trustee-in-bankruptcy.

The liquidation must be agreed with the company’s creditors and all the liquidators actions would be coordinated by a creditor’s committee. The liquidation actions and transactions should be approved by the creditor’s committee but also by the liquidators appointed by the company’s shareholders. In some cases approval from the shareholders must also be obtained.

If the liquidators are actually trustees appointed by the court and are acting in a formal procedure, the liquidation has to be approved by the court. The trustee must submit details of the sale of goods, the condition of the assets still owned by the company and the relation of those creditors who will receive payments. This report has to be presented to the court at least every two months. Key players in an insolvency procedureThe key players and their responsibilities are as follows:

Visitor: Which once an action for mercantile insolvency has taken place will be designated by the Institute when requested by a judge.

Conciliator: Once a sentence has been issued regarding an insolvency procedure the judge will request from the Institute to designate a Conciliator to be in charge of the Company’s management and recognition of unidentified creditors. Another task of the Conciliator will be to rearrange options for a new agreement.

Trustee-in-bankruptcy: Once a bankruptcy is declared the judge will request the Institute to designate a Trustee or confirm the Conciliator as trustee-in-bankruptcy for the Company’s appraisal and sale of assets.

Interveners: This is designated by the creditors to supervise the conciliator and the trustee.
Hierarchy in the payment of creditsCreditors are paid over any other credits when:
Are part of the credits listed in the article 123 paragraph A, section XXIII of the Mexico’s Political Constitution

Credits incurred during the control of the conciliator with previous authorisation
Credits used for the protection of the properties
For the paying of Inspector’s fees and credits resulting from judicial proceedings for the benefit of the Company in control of a Conciliator

The rest of the credits are paid in the following order:

Creditors used for funeral or illness expenses

Creditors with warranties or pledges

Special privilege creditors

All other creditors not mentioned above

Information for bankruptcy/liquidation process

Information available in a corporate bankruptcy/liquidation, formal or informal rescue includes the financial statements for the last 3 years, memorandum of events that caused breach between creditors and the debtor, a schedule of the Company’s debtors and a inventory of all the Company’s assets.

Insolvency procedures in foreign jurisdictionsIn the case that insolvency procedures are started in another jurisdiction, a Mexican court will recognise the effect of any proceeding initiated in a foreign jurisdiction, if such foreign jurisdiction recognises the procedures initiated in Mexico. The foreign court or the foreign trustee of the foreign proceedings should request recognition and assistance from the Mexican courts in any proceeding.

Perspectives

In 2004, the Mexican economy grew a 4.4% as result of greater demand. The outlook for the following year is similar with an estimated 4.0% growth derived from the economic activity driven by consumption, investment and a moderate behaviour of exports. Exports would be affected from the USA expected slim economic slowdown during 2005. The Mexican economic growth would be based in accessible international financing, income from oil exports and family remittance, thus providing some resources to support the aggregate expending. It is important to acknowledge that the growth would be limited until the structural reforms take place.

However, in the short term analyst do not see any important reform to take place as the current political interests are focus in the 2006 elections. The Mexican economy is closely related to the USA economy. Mexican inflation is expected to be stable; however, not at the 3% yearly goal due to the fact that the USA Federal Reserve will continue increasing its interest rates, thus increasing the inflationary pressures to the Mexican economy. Other factors to consider are those within the Mexican economy such as the price of goods and services. The prices of goods are expected to remain stable. However, the prices of services are expected to increase as some of them have fall behind in the last couple of years, therefore increasing inflationary pressures. The exchange rate is expected to remain stable with a light depreciation to a real level. The strength of the Peso is based by oil exports and remittance Mexicans working in the USA.

Another factor that would contribute to the peso stability is the devaluation of the dollar against other currencies.An important factor to consider is the elections campaign. Analysts do not expect great changes in the Mexican economy over the following months since the early campaigns would lessen the uncertainty of the candidates contending. Unfortunately, the uncertainty would increase as the July 2006 elections get closer and the candidate of each party is defined.

DESTINATION MEXIC0

2007-02-09T12:38:00.000-06:00

Staying ahead of the crowd on the Nayarit coast
Keep heading north of Puerto Vallarta to find tranquil towns

Christine Delsol, Chronicle Staff Writer
Sunday, February 4, 2007

(02-04) 04:00 PST San Francisco, Mexico -- By the time I got to Sayulita, on the Pacific coast north of Puerto Vallarta, it was almost too late. San Pancho was the new Sayulita, and Lo de Marco, a few miles farther north, stood ready to become the next San Pancho.

Confused yet? It's all part of the effort by Margaritaville seekers to stay one step ahead of the new mega-resort rising on the beach in the state of Nayarit, which Mexico intends to transform into the next Cancún. As hotels rise and bulldozers rumble across the dunes, barefoot travelers whose taste runs more to fish tacos and hammocks are migrating to villages farther and farther up the coast.

To achieve Margaritaville status, a place must be relaxing but in some way stimulating; unspoiled yet equipped with good restaurants and comfortable digs; within reach of the city's boutiques, supermarkets, clubs and ATMs, but at a safe remove from the northward march of gated resorts and luxury villas.

By all accounts, Sayulita possesses the requisite qualities. It has built up a fanatic following, as evidenced by the cries of alarm provoked by last year's announcement that the Mexican government tourist development agency was building infrastructure for its next project, on the coast about 15 minutes south of Sayulita (see sidebar, Page G8). Veteran visitors were dismayed to learn the golf courses and lavish hotels they'd been trying to avoid were following them along the coast.

By the time my sister, Diane, and I arrived last fall, U.S.-level prices in Sayulita were crowding out the bargains. Condos and villas boasting infinity pools and New York loft decor were stacking up in the hills on the edge of town. It was still picturesque and mostly authentic, and it still had gnarly surf breaks -- only now it had more lodging choices, more shopping, more English-speaking locals. Comfort had overtaken discovery.

A model village

Descriptions of San Francisco, popularly known as San Pancho (just as we know revolutionary general Francisco Villa as "Pancho"), sound much like the earlier reports from Sayulita: a small, clean village surrounded by jungle and mountains that wears its traditions on its sleeve. But it also has watercolor sunsets, a sea turtle nesting ground and possibly the best surfing on Mexico's west coast. So we took the exit north of Sayulita on Highway 200 and bumped into town in the dark of night.

Despite the old-fashioned cobblestone that rattled our teeth, San Pancho has been a town only since the 1970s, when the fishing settlement consisting of maybe four extended families captured the fancy of then president Luis Echeverría. Echeverría swooped in by helicopter once a week or so to drink coffee and eat homemade tortillas with fishermen and farmers, eventually building a beachfront palace on the edge of today's town.

The president began creating a self-sufficient model village. Workers lured by promises of land and a home laid the cobblestone, plumbing and electrical systems. They built houses, a church and plaza, schools and a hospital. They planted orchards and built factories to process the fruit.
Instead of garnering accolades for his efforts, Echeverría ended up fleeing Mexico to avoid prosecution for the killings of student demonstrators in 1968 and 1971. San Pancho had to take command of its own fate, subsisting on mango processing until North American tourists and expatriates started arriving in the mid-1990s.

At the turn of the millennium San Pancho's only hotel was the Costa Azul, an "adventure resort," started by a surfer in 1991, which offers guided kayaking, biking, surfing, snorkeling and horseback trips on the beach and in the jungle. Today, rental bungalows proliferate, and one of Pacific Mexico's top-rated bed and breakfasts commands a hillside perch at the jungle's doorstep, just beyond the Costa Azul.

Languid pleasures

Hotel Cielo Rojo, where we stayed, is a happy combination of comfort and economy. Recently renovated after acquiring new owners, it sports spare yet artful design with gleaming white walls, terra cotta floors, generous wooden shelves and painted bathroom tiles. A quirky collection of antique fixtures and artwork includes a headless, life-size padre at the patio doorway. Rooms are not air conditioned, but the ceiling fans acquitted themselves well during late October days that refused to surrender the mugginess of summer.

We fell into a languid routine: breakfast in the palm-shaded courtyard; a walk around town to stock up on water, snacks and sundries; then lunch under a palapa at Las Palmas, where the main street's cobblestones disappear into sand.

Lunch pretty much finished off the day, invariably turning into hours of gossip and philosophy with other travelers and locals, broken up by dips in the ocean or walks to the end of the long, uncrowded, white-sand beach. For intermission, the lemon-yellow Vallarta Adventures jungle buggies rolled up in mid-afternoon, disgorging an unpredictable assortment of jeep safari passengers to storm the bathrooms, tank up on beer and splash in the waves.

For a small pueblo, San Pancho has a wealth of fine restaurants. La Ola Rica, started several years ago by two local women, opened for the season on our last night in town. Diane ate the justly famous carne asada and I had chicken flavored with lime, in the midst of a celebratory fervor usually seen only on New Year's Eve.

None of our full-service dinners was more satisfying than the fare at the taco stand that sprung up each night on our street corner. The slender, serious-looking young man who welcomed us to "Tacos Miguelito" filled soft tortillas with succulent pork shaved from a spit and strips of beef from a grill the size of a foosball table. The burst of flavor made our eyes roll back, and the tab on our most gluttonous visit came to less than $3 each, including soda.

From restful to raucous

The routine left plenty of room for improvisation, which allowed us to scout a Margaritaville-in-waiting as well as sample Nayarit's exclusive side.

Edson, our solicitous young waiter at Las Palmas, was one of the few Mexicans we met in town whose English was better than my Spanish. He had lived in Guadalajara, Seattle, New Mexico and, more recently, Los Cabos before returning to San Pancho to get away from "too many people, too many cars, too much stress."

Edson persuaded us to explore Lo de Marco, touting its creamy white beach, pretty town plaza and dearth of tourists. Venturing another highway exit north, we walked a pristine beach even longer than San Pancho's, waded in the surf and gathered coconuts shed by a line of palms that separate private homes and rental bungalows from the sand. At the plaza end of the beach, children body surfed under parents' watchful eyes. We didn't see a gringo all morning, and though there were fewer restaurants than in San Pancho, we easily found a palapa and took up residence.

We also felt duty-bound to spend an evening in Puerto Vallarta. Despite the persistent myth that San Pancho is 30 minutes from the city, it took us closer to an hour to drive each way. Still, we were early enough to sneak in without dinner reservations at Trio, an enduring downtown favorite with a Mediterranean-influenced menu and strolling musicians. Dinner was as fabulous as the setting, and it was the first time I've had an artichoke (as an appetizer with cheese, red pepper and arugula) in Mexico.

After dinner, we joined the throngs of families, couples, musicians, street performers, artists and thrill-seekers lining up to ride a carnival bungee swing on the malecón, or seafront. Across the traffic-choked boulevard, hawkers flung pitches at us from the doorways of shops open late. An illuminated elephant figure topped one tall building; bars and discos opened their jungle and spaceport themes to the street, looking like the dark rides at Disneyland. The whole scene, in fact, felt as surreal as Downtown Disney.

It was loads of fun -- and it sucked the Margaritaville right out of us. Jouncing down our cobblestoned main street was relaxing by comparison.

Living the luxe life

To wallow in luxury -- the air-conditioned, swim-up bar kind of luxury -- we spent our last two nights in San Pancho at Casa Obelisco. Built in 1999 by two U.S. couples in Mediterranean villa style, it sits on a hillside north of the Costa Azul resort. It has a footpath to the beach and lies a few steps from the jungle.

Opulence was addictive. One day, we donned skirts and drove to Punta Mita, the peninsula at the northern tip of the Bay of Banderas, between Puerto Vallarta and Sayulita. Sign after sign hawking existing and planned luxury developments interrupted the verdant, rolling landscape. I wondered why the alarm went out only after the federal tourism agency announced its intentions, considering that Punta Mita, which dwarfs Litibú, has been taking shape right next door since the late 1990s.

So far, Punta Mita's queen bee is the Four Seasons (with Jack Nicklaus Signature Golf Course; rooms from $545 per night), the only hotel among multimillion-dollar private villas and condominiums. The St. Regis will join the party as early as this December, followed by La Solana Resort, a Four Seasons sibling. A second Nicklaus golf course is under construction.

Slightly stupefied by the groomed perfection around us, we almost missed the plain brown gate simply marked "Punta Mita." After we asked the gatekeepers to make us lunch reservations at the Four Seasons, the gate opened to allow us to drive through more green and blue splendor to the hotel's portico.

The two valets allowed us a few minutes to gawk at the lobby's dizzying view of palapa umbrellas, flowering vines and endless blue water, then installed us in an electric cart for a narrated drive down to the open-air restaurant. We shared an appetizer, a salad and a grilled vegetable pizza and considered it $54 well spent. After all, the surroundings were sublime, the restroom provided linen towels and we'd been Very Important People for a couple of hours.

We asked if we could walk, rather than ride, back uphill. As the cart sped away, our escort accompanied us up the path, gently steering us away from the pool and lounge area we were desperate to see. He sounded genuinely apologetic when he explained the hotel's commitment to guests' privacy.

Locals appeared less distressed than visitors by development plans. Merchants hold out hope of increased business. Bill Kirkwood, one of Casa Obelisco's owners, said he thought Litibú might even benefit the more modest lodgings in the area.

"People who visit places like Four Seasons and Litibú will eventually want to get out of the manicured environment and explore," he said. "They want to find out about places like San Pancho."

On our last day in town, a new sign materialized on the beach at Las Palmas, reading "Surf boards for rent." An arrow pointed to two surfboards planted upright in the sand. When Edson came to take our orders, he admitted to being the entrepreneur.

"We don't have anyone giving lessons in San Pancho," he said, "but people should know they don't have to go to Sayulita to surf."

It was another step on San Pancho's road to becoming the next Sayulita. I thought of the half-finished houses between the Se Vende ("For sale") signs nailed to trees in the jungle, and the private golf course and villas going up across from the Costa Azul on Echeverría's old estate.
Lo de Marco was looking better and better for the next trip. And from there, the reconnaissance run to Rincón de Guayabitos is only a 10-minute drive north.

If you go

All locations are in Mexico's Nayarit state. Prices are in U.S. dollars unless noted.

Getting there

San Francisco, known as San Pancho, is 25 miles, or about 45 minutes, north of Puerto Vallarta's airport on coastal Highway 200. Taxis from the airport cost about $50 to $80.

Where to eat

Taco stands tend to be good. Restaurants we tried included:
La Ola Rica, Tercer Mundo, San Francisco. Entrees, 80-185 pesos (about $7.25-$17 US).
Mar Plata, Tercer Mundo, San Francisco. New restaurant with a Belgian chef. Entrees, $16-$22.
Las Palmas, Tercer Mundo at the beach, San Francisco. Lunch for two, 130 pesos ($11.80).
Trio Restaurant Bar Cafe, Guerrero No. 264, Puerto Vallarta. Entrees, 160-295 pesos ($14.50-$27).
For more information
Sayulita Life, (541) 359-1945 (U.S. number), http://www.sayulitalife.com/.

Moon Handbooks Puerto Vallarta, by Bruce Whipperman, has more detail on Nayarit's coastal villages than most guides.

The online guide http://www.sanpancho.com/ is in "under construction" limbo but was helpful in its previous incarnation.

To comment, e-mail Deputy Travel Editor Christine Delsol at travel@sfchronicle.com.