House Hunting in ... Acapulco, Mexico
 Lisa Keys - New York Times
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October 21, 2009
| A Four-Bedroom Hillside Home with Pacific Ocean Views in Acapulco - $1.85 Million
This 850-square-meter (9,149-square-foot) house, built in 1995 in Mexican and Mediterranean architectural styles, has sweeping ocean views, several outdoor sitting areas, a swimming pool and a wraparound balcony with a hot tub. The house is called Casa Luna Gorda — literally translated as, “Fat Moon House,” though it has a metaphorical meaning of “expectant” moon.
The living room, dining room and kitchen are on the main floor. So is the master suite, which has a glass-walled bathroom.
A wooden walkway with a covered latticed pergola connects the main house to a 139-square-meter (1,500-square-foot) palapa (an open structure with a palm-thatched roof), where there is a dining area that seats 12. Wooden stairs off the walkway lead down to an infinity-edged swimming pool (with a covered swim-up bar). Gardens surround the pool and palapa.
On the lower level of the main house are two guest bedrooms, each with an en-suite bathroom and a terrace. On the lower level of the palapa is another guest suite, as well as a two-bedroom service apartment with a separate entrance and its own bathroom, living area and kitchen.
The house is located in the upscale hilltop community of Las Brisas, about a 10-minute drive from Acapulco’s beaches and shopping areas; the airport is about 15 minutes away. The community has a private club with access to another swimming pool, tennis courts, a theater and a medical clinic; membership is included in the homeowners’ association annual dues. Furnishings are included in the price.
Property taxes are about $2,500 a year; homeowner’s association fees are $7,000 a year, including security, maintenance and club membership. (Adriana Zehbrauskas/New York Times) | |
MARKET OVERVIEW
The global economic downturn has taken a toll on Acapulco’s housing market, according to Ron Lavender, a real estate agent who has been selling property in the area for 45 years. While asking prices in the last 10 years have remained steady, over the past 12 months sellers have been more flexible, he said, noting that actual sale prices are down about 10 percent.
Acapulco grew in popularity in the 1950s — the Kennedys honeymooned there — and reached its heyday in the 1960s and 1970s, when it began to receive direct flights from all over the world. During those decades, Acapulco’s housing prices soared, according to Mr. Lavender.
“In the past 10 years or so, we haven’t enjoyed any remarkable boom,” he said, noting that the government has concentrated its tourism and development efforts in resort towns like Cancún, Los Cabos and Ixtapa.
Acapulco is about 400 kilometers 250 miles from Mexico City by highway. (It takes about five hours by luxury bus, Mr. McCarthy said.). As such, Acapulco has grown into an increasingly popular weekend destination for Mexican urbanites — today, 80 percent of Acapulco’s tourists are Mexicans, Mr. McCarthy said.
While real estate prices may be somewhat lower than at newer resorts like Los Cabos, which has quick flights to the West Coast, Acapulco’s high-end neighborhoods still command top dollar, Mr. Lavender said.
In Las Brisas and La Cima, prices range from about $750,000 for an older three- or four-bedroom home to $12 to $15 million for luxury properties, he said. At the lower end, a two-bedroom condo in an older neighborhood starts at about $100,000, Mr. Lavender said, while a newer waterfront condo starts at about $300,000. (Due to the volatility of the Mexican peso, most high-end properties are priced in dollars, Mr. Lavender said.)
WHO BUYS IN ACAPULCO
Among foreign buyers, at least 80 percent are from the United States, according to Mr. Lavender, with Canadians and Europeans distant runners-up. Most seek higher-end properties in Las Brisas or La Cima, which are gated communities with shared amenities and private security.
BUYING BASICS
Foreigners who wish to purchase real estate in Mexico must obtain a permit from the government’s foreign relations office, according to Dennis Peyton of Peyton & Associates, a Tijuana law firm that handles real estate and business transactions for foreigners. The cost is about $1,200 and usually takes two to three weeks to secure.
Foreigners are restricted from owning property outright within 50 kilometers (about 31 miles) of Mexico’s borders and 100 kilometers (62 miles) of the coast. To work around this, foreigners are advised to set up a trust with a Mexican bank; the trust holds the title to the property, and the buyer is the beneficiary of the trust.
“There are thousands of these trusts in Mexico,” Mr. Lavender said. “It’s a very sound instrument.” The annual bank fee for establishing such a trust is approximately $300 to $500, according to Mr. Peyton.
The use of a lawyer is recommended; fees are approximately $1,200, Mr. Peyton said.
Mr. Peyton recommended that a buyer set aside 3 to 5 percent of the purchase price for additional purchase costs. This should cover the 2 percent acquisition tax — applied to the purchase price or the property’s appraised value (whichever is higher) — and notary fees, which typically range from 0.75 to 2 percent of the purchase price or appraised value (whichever is higher). Buyers will also need an appraisal, a certificate of non-lien and a certificate of property tax payment; these cost approximately $100 to $200 each, Mr. Peyton said.
USEFUL WEB SITES
City guide: allaboutacapulco.com
City guide: acapulco.com
Tourism board: visitacapulco.com.mx
CONTACT
Ron Lavender, Ron Lavender & Associados, 011-52-744-484-7000; ronlavender.com |
Vallarta Weddings
Puerto Vallarta Real Estate | October 2009 
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