Just when you thought investing in real estate was old news…guess again.  I just finished reading an article about the real estate market in Munich, Germany and real estate sales in this area are up 10% .  The article stated that real estate sales are up because of the volatility of the Euro and people are worried about putting their money in the bank or investing in the stock market.   Sound familiar?

During a conversation a few weeks ago with a friend in the real estate business in Austria he mentioned the same sentiments with his clientele.  With the fairly healthy real estate market that we have seen over the last two quarters in San Carlos, Sonora I believe this attitude might be affecting buyers here as well.

I asked some friends the other day  if they sold their home how and where  would they invest the money.  We talked at length and both agreed that the stock market seems similar to  gambling  in Las Vegas. And, although your money is probably safe in most banks in the US and certainly in Canada your money is collecting more dust than interest.

It would seem to me that putting money back into real estate for purposes of safety rather than speculation is coming back into style.  When you invest your money into “bricks and mortar” you have many more options.  With a house you can live in it,  rent it, or depending on where your house is located, you could open a small home-based business.

The bottom line however is that many people are sleeping better these days knowing that their hard earned money is invested in the roof over their head, especially when that home is mortgage free!

The real estate sales information listed below is from the local San Carlos Multiple Listing Service (www.sancarloslistings.com), MLS.  Please note that these sales figures do not include  properties sold directly between a seller and a buyer and without the services of a realtor.

Real Estate Sales Double from 1st Quarter 2010

2010 2nd Quarter Sales USD:     $5,201,000.00
2010 1st Quarter Sales USD:     $2,678,900.00
2009 2nd Quarter Sales USD:     $4,600,000.00
2009 1st Quarter Sales USD:     $1,642,000.00
Current Active Listings Single Family Homes:  212
Current Active Listings Condominiums:   75
Current Active Listings Lots:     163
Current Active Listings Other:     4

~The average percent decrease between list price and actual sales price was 15% for the 2nd Quarter of 2010.

~The median sales price for a single family home was $280,000.00 USD and the median sales price for a condominium was $244,000 USD.

~Approximate total number of single family homes in San Carlos is  3,000 and approximate total number of condominiums in San Carlos is 690.

General Market News

1.  Even if you are a retired person who no longer has concerns for business matters, a healthy economy is important to the well-being of our community.  The amenities that residents and visitors enjoy can only be maintained with a stable economic base.  And as odd as it might seem, little San Carlos is sitting in a pretty good position amidst the world wide economic instability.  Mortgage financing (with the exception of owner financing) is almost non-existent in San Carlos, and for that we can be grateful because it has kept speculating to a minimum.   There are no foreclosures here because homes are paid for in cash and this has also helped maintain the value of properties in San Carlos.  With a few exceptions, homes last quarter were sold on average for 22% below list price and this quarter that number is reduced to 15% below list price.  This is a far cry from the 45% to 55% decreases we have seen in many second home communities in the United States and areas of Europe.

2. Sam’s Club and Walmart are both now open and serving our community in Guaymas.  Where locals once drove to Hermosillo or Obregon for warehouse type shopping we now have those services within a 15-minute drive.  These stores have hired hundreds of local workers and are also a tax resource for the City of Guaymas. 

3. On June 16, 2010 Governor Padres held a press conference which I attended at the Hotel Playa de Cortes in Guaymas.  With the beautiful Bacochibampo Bay as a backdrop, the Governor announced the “Guaymas 21 Plan” which is in fact already underway.  This initiative consists of several major projects in Guaymas that will be ongoing over the next several years and the first 31 million pesos are being allocated immediately.  Many of the projects are related to urban renewal which was a big theme of the presentation. All of the projects from the desalination plant in Empalme, the sports complex, housing for the poor, and renewal of the historic district and Three President’s Plaza downtown are “all for the benefit of the people,” stated Padres.

4.  Eight Senators have submitted a proposal in Mexico City with the request to pass legislation that would eliminate the restricted zone, thereby eliminating the need for a trust when foreigners purchase real estate within 50 kilometers of the oceans and within 100 kilometers of the borders.  The Synopsis reads as follows:   “Proposes to eliminate the restricted zone and to enable foreigners and foreign companies to acquire direct ownership of lands and waters without restrictions other than that prescribed in the applicable legislation and in accordance with the terms of the respective contracts. This, say the authors, to make better use of the tourism sector, considering the current situation is far from the context in which it was born the constitutional restriction in question, which today represents only an obstacle to foreign investment in generating jobs in the tourism sector.”

Although this type of legislation is presented on a regular basis the timing could not be better.  Mexico is desirous of foreign investment and this would be a sure way to attract investors and contribute to a healthy economy.

5.  On June 7, 2010 the owners of leading media enterprises in Mexico City announced the “Mexican Initiative” which is a challenge to all citizens to create solutions for problem areas within the country and submit these proposals to the Initiative Committee.  Twenty projects will be selected and, based on the ranking, funding will be provided to develop the proposals.  The San Carlos Scenic District Initiative has been submitted and it would be a tremendous benefit to our community if we are placed in the top twenty!  This beautification project is an excellent way to inspire local businesses and residents, improve the curb appeal of our city, and affords us an opportunity to show case the natural beauty of San Carlos.

Until next time please remember that we are all either contributing to or contaminating our environment with our words and our attitudes.  If you see something you don’t like take Ghandi’s advice and “be the change you want to see in the world.”   Hasta pronto!

Paseo Alegre  is aptly named because a drive along this “Happy Path” is a joy to behold.  I came across this little lane recently and felt compelled to take out my camera and capture the personality that this color infused block of homes provides.

I am a fan of energetic and bright colors and that is one of the many things I love about Mexico.    These homeowners have  made the statement  that they love the colors of Mexico as well.  This is demonstrated with various layers of purple, pink, and blue  exterior paint, tiles, pottery, and of course, the lush flowers that our climate allows to flourish.

Many foreigners are taken with  Mexico because they perhaps come from an area where “bland” is part of their neighborhood culture.    Most neighborhoods in San Carlos have no such restrictions so people are free to express one of the things that made them head south.  They decided to trade in bland beige for magnificent magenta.

I am an advocate of San Carlos joining the colorful cities of the world and it looks like the homeowners of Paseo Alegre are some of the first members!

To take a look for yourself, turn right just past the Art Gallery on the main street in San Carlos.  You might want to have your camera handy because this small row of homes is certainly photo worthy!

In San Carlos the clientele is a bit different from his restaurants in Obregon and Hermosillo due to a large expat population.  What he has found is that instead of his usual lunch and dinner hours of 2:30 p.m. and 8:30 p.m. respectively, he now has lunch customers at noon and diners at 5:00 p.m. which are dining hours more familiar to Canadians and Americans.  In other words, he doubled his business with the new location and if that is not enough proof that his new restaurant in San Carlos is a success; he already has repeat customers, and that includes me!

Born and raised in Paris, France Nino learned the art of hospitality through his family’s hotels; Royal Monceau in France and Cham Palace in the Middle East.  His Syrian and French culinary background are expressed in the interesting, extensive, and savory menu. While living in the United States to expand his English language skills Nino met his lady love and followed her to Obregon, Sonora.  He said he fell in love with the Mexican people and the food, especially the tacos!  His exposure to American dishes and Mexican fare add another layer of interest to the menu.

In 2000, Five Palms debuted in Obregon, the first gourmet restaurant in the area.  Not long afterwards, he opened el Horno de Castilla which specializes in Spanish cuisine.  What started as a hobby for him has turned into a chain of 8 restaurants and 4 stores. 

Nino demonstrates his belief that only the creative risk takers will thrive in today’s market place from the French bistro atmosphere of Five Palms to the extensive and exquisite delicatessen that is part of the restaurant.  The vast menu selection pleases everyone in taste and in price.  Diners are offered a Sonoran Tenderloin priced at $12.00 to a Kobe beef steak priced at $80.00, with many other choices and price ranges in between.  Aside from Sonoran and Kobe beef, Nino’s preference is for Silver Sterling beef from the United States because of the high quality and the consistency.  He believes that the quality of the beef he serves on Monday night must be the same high quality served on Friday night.   He also insists that the meat selection be cut table side so that a diner can inspect the cut of meat and determine the thickness of the steak.

Wine connoisseurs will be delighted with selections that run from a bottle of Vega Pasion Spanish wine priced at $6.00 per bottle to  Chateau Latour priced at $1,000  most likely, to be reserved for the most special of occasions.  Patrons are encouraged to select wine from the deli which will be served at your table and without a corkage fee.  Nino is pleased that this provides very reasonable wine prices for his clients. 

For those shopping for special items to stock their pantries or to prepare an ocean side lunch the delicatessen includes a wide variety of cheeses, meats, oils, crackers, chocolates, pastas, special cooking ware, and even Cuban cigars!

The Five Palms Restaurant and Nino Aidi are a delightful addition to our culinary rich small Mexican town.  Nino and his passionate determination brought to mind a favorite quote from a Norwegian explorer; “The difficult is what takes a little time.  The impossible is what takes a little longer.”  Bon Appetit!

However, over time, Don learned what many others have discovered upon retiring which is retirement does not mean inactivity.  In fact; oftentimes it is quite the opposite.  As a homeowner in San Carlos he became aware of the fact that there were no home inspectors and that was a niche he filled with his company, San Carlos Inspections.  Most Canadians and Americans are familiar with home inspections however; this was a very new business model here in Mexico.
Some of the items on the Home Inspection Checklist include: termite inspection, electrical, plumbing, roof, propane connections, appliance checks, locate shut offs for all systems, proper drainage for the roof, drainage around the perimeter of the home itself, hose bib locations, and electrical breaker locations.  On a recent home inspection Don was able to point out to the buyers that there were only two roof drains and those were undersized.  With our flat roof styles and the summer Monsoons those are items that a buyer would want to address sooner rather than later. 

  
I encouraged one of my recent buyers to hire Don for a home inspection prior to signing the Purchase Contract.  Homes in Mexico are sold “as is” so the inspection is very helpful for gathering information regarding the property and potential repairs that might need to be addressed. 

Don will provide a quote based on the square footage of your home and once he has completed the lengthy inspection prepares a typed summary of his findings with recommendations for repair work that will be required now or in the future.  He does not provide referrals for companies or people to perform the actual work.  He prefers to focus on his specialty which is to provide information about the home as it exists in operation, condition, and functionality.  Don’s pricing is based on .10 cents per square foot which makes this a very cost reasonable service with big value for the home buyer. 

For those people that have decided to build a home Don will provide a New Home Survey that is conducted prior to the final payment to the building contractor.  This is a very detailed inspection and covers items such as:  propane connections and leaks, running the water system to check pipe drainage and the tinacos (water storage tanks) to see if they function properly, checking all electrical outlets and verifying the number of circuits on each outlet, making sure junction boxes are covered, checking all cabinets, doors, and windows and a myriad of other items.  With this information the home owner can make sure that all items are completed and that all systems are operating correctly and efficiently prior to signing off with their contractor.

When Don doesn’t have an inspection scheduled it is almost a guarantee that you will find him at the Marina.  Even though he is somewhat land locked these days he doesn’t let his sailboat get too far from sight!

There is also another reason to clean out your closets and that is to make room for a few new items!  Again…this can all be done in the name of good design, especially if you buy new clothes that are color coordinated!  See how my mind works?

I usually make the short one-hour drive to Hermosillo every ten-days or so to see what is new at my favorite store, Liverpool’s.  Liverpool was founded in 1847 by Jean Baptiste Ebrard, a Frenchman who first started selling clothes in cases in downtown Mexico City.  Much of the merchandise was shipped via Liverpool, England, prompting Ebrard to adopt the name Liverpool for his store.   This department store, one of the largest in Mexico, is a cross between Nordstroms and Macy’s and has something for everyone.  This short video was filmed on a recent trip  so you can see for yourself!  Be sure and stop at the nearby Starbucks and get fully caffeinated before you begin your shopping spree!

We are requesting that the Sonoran State government create a similar designation relating to the coastal communities in Sonora.   This designation would be awarded specifically to ocean shore cities that earn the designation based on their scenic beauty and that commit to complying with specific beautification guidelines.

We are proposing that San Carlos is the first community that is awarded this designation of a Sonoran Scenic District for the purpose of cleaning up our environment and our image, generating positive press, creating a unifying identity for our city and attracting tourists in order to encourage growth in the business sector.

The initiative provides several elements, which benefit residents, visitors, and businesses.
*Signage Guidelines:  Decreasing visual pollution within the city limits of San Carlos through signage guidelines is an excellent way to improve the appearance of San Carlos.   The lack of signage control can make cities look neglected, littered and unattractive to tourists, visitors, and residents. 
*Litter Campaign:  It is the goal of the Association to create a litter campaign in San Carlos that consists of providing trash cans which are available to the general public and a commitment from the trash collection company that they will dispose of the trash on a regular basis.
*Adopt a Highway Program:  The local government has done an exceptional job of maintaining the main boulevard with nice  landscaping and litter control.  In stretches of roads where this is not the case we are proposing an Adopt-a-Highway program.  Specific areas would be available for sponsorship in order to maintain our roadways and keep them litter free and landscaped.
*Adopt a Beach Program:  Similar to the Adopt-a-Highway program the Pro San Carlos Association will encourage individuals, businesses, and groups to adopt a beach in order to maintain it on a regular basis.
*Earth Day Celebration:  The Pro San Carlos first Earth Day Celebration occurred in April 2010 with hundreds of volunteers including students, residents, and business owners participating in cleaning the various beaches in San Carlos.  This was a very effective event and we look forward to 2011 for the second annual Earth Day Celebration.

*Colorful Building Program: Paint is one of the easiest and most cost effective methods for beautifying a community. Mexico is a country rich in color and we would like to add more color to some of the buildings along the main boulevard (Beltrones) in San Carlos and join other colorful cities of the world such as Guanajuato.  This program would offer help, support, and inspiration to not only the small business owner; this program will also create a sense of pride and a unifying identity within our city. 

If you also feel that San Carlos is a scenic treasure and worthy of the designation “Scenic District” please visit www.prosancarlos.com and show your support for this initiative.  Let your voice be heard!

I live in the beautiful Mexican resort community of San Carlos, Sonora.  The views of rugged mountains, desert landscapes, and the Sea of Cortez delight my every day.  When I see that a business owner has erected another sign that mars the views for the rest of us, well…let’s just say I become a touch vocal.

Businesses are worried that unless they have a huge billboard or other signs around town that clients will be unable to find them.  The fact is that people do not find your place of business because of a huge sign; they find your business because you have provided directions using street names and other cues.
In my mind, unrestrained signage is no different than any other form of pollution.  A new sign blocking a view of Mother Nature is like a pile of trash on the side of the road.  It is a distraction and a form of disrespect for the environment and to our communities.

There are many movements across the world that are calling for visual pollution laws because many people are tired of having their architecture or views disturbed by signage.

A friend forwarded this youtube video to me today and it paints a word picture with great impact.  When people start paying attention and realize the impression that visual pollution gives to visitors they might come to understand that visual pollution is harmful to our environments.   The next time you are considering advertising your business or service consider the impact of your choice and remember, when it comes to signage…less is more!

For example, yesterday I was in Guaymas driving to the fabric store on Serdan Street after a quick visit to Yossi’s Hair Salon.  I was mumbling to myself (yes, I do that on occasion) about the traffic being so slow.  All of a sudden I find myself driving next to the Carnival procession as they were entering Guaymas to set up their circus.  I was able to drive super slowly and I found myself a mere 2-3 feet away from lions, tigers…no bears…and, camels, zebras, and monkeys!  I was so close to the lions I could have counted their whiskers!

At one point I was stopped at a light next to an elephant with my window rolled down.  I started calling to him and he stuck his trunk in my window!

Now, I understand that elephants are a symbol of good luck in many Asian cultures and yesterday I was just sure he was a good luck sign for me.  How rare was it that I would find myself in the carnival procession with the opportunity to be so near to these gorgeous animals and, I had my camera with me! 

I usually anticipate lovely surprises throughout my days however, this was extraordinary and I’m anticipating extra good luck in the coming days!