Rosie Glover, general manager of Terranova Investments, informs the readers of Puerto Peñasco Online of the future of this ever-growing market.
What do you expect for 2007 as far as real estate demand in Puerto Peñasco?
I’ve been working in real estate for nearly 30 years, and during these years I have been able to see the rise and fall of demand. There’s no reason to be concerned. Real estate should be viewed as a joint fund, that although the demand may go up or down, earnings are seen over the long term.
In 1981 I was working in California and we saw mortgage rates go up by 21%. In the United States in general, property buyers depend much more on mortgages, and the whole world went into a panic thinking that there wouldn’t be any more buyers.
Of course in the real estate community we have to be professional, creative, and more than anything optimistic in order to fulfill our responsibilities with our clients and the economy on which we all depend.
Thank God…. everything I’ve seen seems to indicate good things for Puerto Peñasco in 2007! …specifically, the nautical ladder, coastal highway, and new airport.
In addition, the local administration as well as the State government is aware of the importance that Peñasco has for Sonora and I’m sure they will make the best decisions in order to assure us a 2007 full of work and prosperity.
What properties are under the most demand in this region of country?
Here in Puerto Peñasco this changes quite a bit. Maybe right now there is not much demand for condominiums, but I feel that within the short time there will be.
Land in strategic areas for development continues being a good investment. I think that shortly we’re going to see more demand for everything commercial, and obviously anything along the beach tends to sell quickly as long as the prices are more or less good. We are only lacking public housing, and it appears that there are various plans working to solve that this year.
How much difference is there between a Mexican and an American buyer?
Given the values and prices in Puerto Peñasco, the majority of Americans are looking for a condominium or home on the beach or in a tourist area. Mexicans are looking for housing or commercial properties in order to establish a business. Investors and developers are Mexican.
Americans are more accustomed to credit. Banks here offer good credit programs for Mexican buyers; we should mention that in our office we offer all types of information in order to put people in contact with those in charge of helping them access these credits.
Are Mexicans buying property in Puerto Peñasco or is it an exclusively foreign market?
There are many Mexicans buying and also selling properties in Puerto Peñasco. What happens is that the majority of the real estate companies are American and they haven’t prepared themselves to work with people in the city, nor with Mexican investors and developers. That’s why I decided to come work at Terranova, where indeed all of the agents speak English, yet it is a Mexican company.
There are Mexicans who are still not accustomed to using a real estate agency, yet according to statistics, when a property is sold through a professional agent the average earnings are much higher. I believe that probably no one has explained to them the benefits of being represented by a professional agent who is a member of an organization such as AMPI (Mexican Association of Realtor Professionals). Any doubts should be cleared up before making a decision.
What factors intervene in the high value of land for sale in Puerto Peñasco?
The value has a lot to do with the availability of options in each category of properties and the demand for these same properties. Within this scheme there are other factors such as conditions, location, and price. Unfortunately, there are those that believe that anything along the principal boulevard is worth gold, and it’s not always so. There is a lot to consider. A good suggestion would be to hire a professional appraiser. They don’t charge much compared to what one intends to earn, and it’s worth it to do so. We’ve worked with some here in Peñasco and we can make a good recommendation.
The political situation in Mexico is beginning to become more stable following some very controversial elections. How has the real estate market reacted to these changes?
When the last elections had recently passed, the entire world stopped to see if there would be a problem with the economy, but as you noted it’s been stable without further impact.
Investment in real estate in Puerto Peñasco depends on the economies of both countries and therefore, each time there are elections or big changes, people wait a bit before beginning to spend money. This is temporary and there’s no problem as long as we use the time among buyers to prepare ourselves through more education, training, and publicity. Sooner or later the sun will come out again and everything will move forward. |
