We believe that
Rocky Point is a superior investment alternative to real estate in the U.S. and
elsewhere in Mexico. Gabriel Robles, a senior real estate consultant from Mexico
City, who has been involved with over 27 major resort developments, has
completed a study that shows Rocky Point to be in the third year of a 25 year
upward real estate cycle (source: Join Us Article, January, 2005). Even though
Rocky Point is still small and relatively underdeveloped, it is attracting
investments at a higher rate than any other resort area in Mexico, surpassing
even Cancun and Los Cabos. Long term real estate appreciation will be driven by
a limited supply of beachfront property paired up against the virtually
unlimited income and population growth of the southern U.S.
(officially Puerto Penasco, Sonora) is an extremely attractive destination for
U.S. vacationers. It is the beach closest to Arizona, only 60 miles away from
the U.S. border and 220 miles from central Phoenix (approximately 3.5 hour
drive). It is also within comfortable driving range of California, Nevada, New
Mexico and Western Texas. Rocky Point stretches along the majestic Sea of
Cortez, boasts beautiful beaches, world class fishing and diving, a wealth of
marine wildlife unequalled in the northern hemisphere (including sea lions,
dolphins, and whales), mild year-round climate, extensive legal infrastructure
to make it safe and easy for Americans to own property, practically no risk of
hurricanes (unlike Florida) given that it's on a gulf protected by the Baja
Peninsula, and real estate prices that are substantially lower than those found
in California beachfront areas.
property values have risen rapidly in the recent past and have plenty of upside
remaining. Mid-market condos that were sold in 1999 for USD$150,000 were re-sold
for over USD$300,000 in 2004, and beachfront home lots that were sold for
$140,000 in 1998 were re-sold for $600,000 in 2004 (source: Arizona Republic
article Sunday, March 7, 2004). At these growth rates, a beachfront condo
selling today for USD$450,000 would resell for well over USD$900,000 in 2009.
This projection may seem high today but remains low relative to prices in San
Diego and Los Cabos, useful comparable markets because they are also nearby
Arizona and some of the other Rocky Point target markets. In San Diego, luxury
beachfront condos of 2,000 to 2,500 square feet typically range from USD$1.5
million to well over USD$3 million (source: Craig's List). In Los Cabos, condos
found in the higher-end resort properties sell in excess of USD$1,000 per square
foot (source: Bruce D. Greenberg, appointee by Governors Hull and Napolitano to
aid in consumer guidelines for purchasing real estate in Sonora, Mexico).
Interested in buying property in Rocky Point?