The continued interest in buying properties within the Bay of Banderas has created ongoing activity for the most part of 2005. Not only has existing inventory been sold, but many pre-construction projects are being sold as well as reservations taken on newly announced projects.

New Projects already in construction in the mountain of Amapas, at $160US a foot and up, begin at $435,000US for a condominium to $1,200,00US for a penthouse. 88 units are planned in this one project. There are smaller developments being built as well.

Single family is also planned on this mountain closest to downtown PV on the south side. Twenty homes in a private gated community, surrounded by federal preserve will average $800,000US with pre-construction available beginning at $645,000US. Other new construction of private homes is available for $1,900,000US.

Throughout the bay there are new projects announced. Part of the list includes a 5 unit oceanfront condo building on the south shore with prices starting at $375,000US for a three bedroom, as well as a development in the Zona Romantica with 17 condominiums beginning at under $165,000US for a one bedroom and under $215,000US for a two bedroom.

New projects in La Cruz de Huanacaxtle in the middle of the Bay include 27 condos and 3 villas in a modern style with private beach club and tennis courts. Pre-construction discounts begin at $1,700US a square meter.

In Punta Mita, villas and condos within the private 1,600 acres continue to bring buyers for golf, beach, boutique hotels and lots of privacy. Prices range from $800,000US for a large condo with beach view to $5,000,000US for a private home.

Fortunately, with this announcement of increased inventory, the ability to fly to our destination on the Mexican Riviera has increased. America West, Delta Airlines, and Frontier Airlines are adding routes, more flights or increased capacity carriers. The airline decision is based also on information already available to them of the increase in requests and bookings for lodging. Popular destinations include Nuevo Vallarta, Punta Mita, and Puerto Vallarta.

Another element which can bring more buyers than previously is the serious efforts of American based mortgage companies and Mexican banks to provide mortgage loans, both US dollar based and peso based, to first time and second home buyers who qualify. There has been an ongoing effort of the Fox government and other political parties to introduce more mortgages to Mexico. Many American lenders have sent scout teams down to conduct their due diligence to determine their ability to lend within Mexico. At this time, Collateral International and General Electric are making commitments to provide loans.

If the senate of the Mexican legislature votes to allow a rebate or refund on IVA or sales tax to foreigner shoppers, a 15%-20% increase in tourism is expected by the government.

American Express has announced that it will include Puerto Vallarta in its promotion of its “Splendors of Mexico” promotion.

Magazines such as the Robb Report travel publications continue to feature Mexico as well as local magazines in U.S. cities of Chicago and San Francisco.

The Bay of Banderas is enjoying a very special exposure through publicity around the world. This area is one of the darlings of the tourist media at the moment. The timing of newly announced inventory is ideal for this window of world-wide publicity.

To be sure that this great opportunity to buy becomes a satisfying reality, I recommend that you have a plan and do your homework before you purchase a condominium, villa, lot or investment opportunity.

If you are buying new construction, the laws in Nayarit and Jalisco differ as to when a condominium project legally exists. A condominium regime can be required for a multi- story building or an individual villa project where there is common area in addition to a private lot. Until the condo regime exists legally, there are limits of what a buyer has purchased until the final legal filing in the public registry. Payment of purchase funds is generally due with a down payment and subsequent payment over the period of construction of up to 90% of the purchase price. It is critical that you find professional assistance to determine the best way to protect your funds and to have assurances that the property you select will finished in the manner in which you have selected and contracted for it.

The reputation and experience of the developer and builder are also an important consideration. You need competent professionals advising you so that you have a successful purchase. Like many things in life, it is far better to do the hard work first and take the appropriate time, and pay for the best advice, before you sign the paperwork to purchase. The process can be easy or difficult, depending on how much preparation you do in the beginning.

There are lenders who now offer you a choice of being a partner in your purchase. When they lend their money, they have conditions which have to be met by the property in order to fund the loan. Title companies will also write title insurance, and this is normally the cost of the purchaser.

Inspections by professionals competent in plumbing, electrical, structural are available and used more now than times past. An inspection is an opportunity for a buyer to find out the condition of an existing property and to learn how to properly maintain it. It can also be a condition of a purchase to allow the buyer to withdraw from the contract if there are material and harmful issues discovered about the property. Please, however, don’t look at an inspection as a way to require the seller to lower his price. The inspection should not be looked at as a grocery list of what to expect the seller to repair.

There is another “inspection” which is important to include in your offer and that is the checking of the legal documents of the seller as well as what the new documents of ownership.

In my opinion, you need to use a professional, bilingual and bicultural attorney who is familiar with or has practiced law in the US. This professional should be able to tell you the way you can purchase in Mexican law within the context of what you expect from your own background.

Among the documents which I recommend you have reviewed as a condition of your purchase are the deed of the seller, the evidence of who can legally sign as the seller in the case of a corporation, the condominium regime, bylaws, financials, and authorized meetings of an established condominium. In the case of new project, your attorney will need to see the proposed condominium regime if does not legally exist prior to completion of the project, as well as the method of protection of your funds. Bonds may be issued, escrows may be used. You have to find out and make an informed decision.

You need to understand what is required when you buy within the restricted zone versus none restricted zone in Mexican territory. You need to understand the cultural differences besides already loving Mexico’s beautiful sunsets, geography and kindness of its people. You are buying in part because you love the climate, surroundings, slow pace and respite from a pressured lifestyle. There is more you will learn as you spend more time here.

Harriet Cochran Murray

This article is based upon legal opinions, current practices and my personal experiences in the Puerto Vallarta-Bahia de Banderas areas. I recommend that each potential buyer or seller conduct his own due diligence and review.