Archive for: March, 2007

Real estate advances lure foreign investors

Mar 28 2007 Published by admin under Uncategorized

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.”

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Advice for the small foreign investment in Mexico

Mar 28 2007 Published by admin under Uncategorized

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!

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Healing sanctuary does good works in Mexican village

Mar 26 2007 Published by admin under Uncategorized

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.

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

Mar 26 2007 Published by admin under Uncategorized

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/.

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Chacala: A hidden paradise on the Pacific coast

Mar 26 2007 Published by admin under Uncategorized

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.

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Passport woes foiling travel plans abroad

Mar 26 2007 Published by admin under Uncategorized

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.

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Nervous Nellie vs. Mr. Wing-It

Mar 26 2007 Published by admin under Uncategorized

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.

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Apple Vacations Honored by the Government of Nayarit, Mexico

Mar 26 2007 Published by admin under Uncategorized

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# .

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If you go: Chacala, Mexico

Mar 22 2007 Published by admin under Uncategorized

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.

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Beyonce and Jay Z’s Mexican Holiday

Mar 21 2007 Published by admin under Uncategorized

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.

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Idyllic resort, rooted in real life

Mar 19 2007 Published by admin under Uncategorized

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.

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Entrepreneurial spirit on the Nayarit coast

Mar 19 2007 Published by admin under Uncategorized

– 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.“

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

Mar 19 2007 Published by admin under Uncategorized

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.)

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By Jane Engle, Los Angeles Times Staff Writer Marc…

Mar 19 2007 Published by admin under Uncategorized

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.)

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Buying abroad: Mexico becomes a bit easier

Mar 19 2007 Published by admin under Uncategorized

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.”

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Spring breaker-free beaches

Mar 19 2007 Published by admin under Uncategorized

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.

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

Mar 16 2007 Published by admin under Uncategorized

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.

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FundVallarta Announces Online Resource For Mexico Real Estate Investment

Mar 16 2007 Published by admin under Uncategorized

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.

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$900 Billion Invested in Global Real Estate during 2006

Mar 15 2007 Published by admin under Uncategorized

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%)

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Just say yes to a vacation in Sayulita

Mar 14 2007 Published by admin under Uncategorized

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.

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Chacala, Mexico

Mar 13 2007 Published by admin under Uncategorized

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.”

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

Mar 13 2007 Published by admin under Uncategorized

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.”

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Visitors help Mexicans build stable futures

Mar 13 2007 Published by admin under Uncategorized

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.”

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Avoiding the Cookie-Cutter Look

Mar 09 2007 Published by admin under Uncategorized

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.”

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Mexico publishes bid guidelines for massive new dam

Mar 06 2007 Published by admin under Uncategorized

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.

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Electric company accepts Nayarit power plant bids

Mar 06 2007 Published by admin under Uncategorized

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

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.

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.

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Breaking for the Beach

Mar 05 2007 Published by admin under Uncategorized

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.

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U.S. lenders aren’t racing to capture Canada

Mar 05 2007 Published by admin under Uncategorized

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.

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Procopio’s real estate conference draws industry leaders from throughout North America

Mar 05 2007 Published by admin under Uncategorized

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.

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10 real estate tax breaks you should know

Mar 05 2007 Published by admin under Uncategorized

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 FEEPOINTSPAID 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© 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; © 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.

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Retreat in Mexico: Pilates in Paradise

Mar 05 2007 Published by admin under Uncategorized

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.

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