The Strength of the DOLLAR makes this the BEST time to Build that Dream Home in Mexico!
For over the years between 2003 and most of 2008, the US Dollar and the Mexican Peso enjoyed a stable exchange rate between 10.0 and 11.0 pesos per dollar. Sometime in December 2008, the exchange rate, based on several economic factors, dramatically changed with the dollar slipping to 9.0 pesos per dollar, only to rise to a record 15.20 pesos per dollar in a very short period in 2008 and 2009. The exchange rate stabilized at about 12:1 for a long period of time, but now is experience a fast climb due to the strong dollar again. The current rate of exchange has been rising from 12.5 at the beginning of the year to between 14.8 and 16 pesos per dollar and has been fairly steadily rising for the past 3-4 months. Expectation are that the peso may rise to over 17 to 1 in 2015. That means that your dollar will currently buy approximately 30 to 40% more than it would even last year!
An added effect of the economic recession in the US which began to affect our market since the first quarter of 2008, the Swine Flu, and the pursuant slow down or stoppage of large construction projects in the hospitality and tract-home industries, the hurricane, is that it has reversed the once ZERO (actually, it was a negative back in 2007) unemployment rate, enjoyed for so long here in Los Cabos and Baja California Sur, to thousands of unemployed, or under employed workers. Many have returned to their families on the mainland, but the majority have made Los Cabos their permanent homes and are now part of a new competitive market place within the construction industry. It´s the old supply and demand theory! You are now in the driver´s seat. Negotiation for labor is now possible. Bidding is now in your favor!
Material supply houses, contractors, architects and engineers are also part of the equation for potential bargains on materials and their services. With many lots now being price adjusted downward, it is a homebuilder´s market NOW!
In 2015, new starts of condominium projects and hotels potentially marks the beginning of the close of this window, so don’t wait too long.
Land prices are at an all-time low, as well.
Want to build your dream home in paradise? Now is the time!
By Cheryl Miller, Broker, Architect, Baja Realty and Investment, 624-122-2690, email@example.com, www.forsaleinbaja.com.