DIALING TO/FROM MEXICO

Even though 90% of all land line telephone service and 80% of the cell phone service in Mexico is ultimately controlled by the same person (Carlos Slim), dialing other numbers is bizarre and confusing.  SOME HELPFUL TIPS YOU NEED TO KNOW IF YOU ARE GOING TO CALL TO, FROM, AND WITHIN MEXICO.  I’ve been down here since 1994 and I still get confused.

MAKING LOCAL CALLS IN MEXICO

Land line to land line: dial the 7 or 8 digit telephone number without the area code
Land line to cell phone: dial 044+area code+number  (044 624 176-4249)
Cell phone to land line: dial area code + number  (I usually just dial the number and it seems to work fine..try it and see which way works for you)          
Cell phone to cell phone: dial area code + number (624 176-4249)

MAKING LONG DISTANCE CALLS WITHIN MEXICO
Land line to land line: dial 01+area code+number
Land line to cell phone: dial area code + number
Cell phone to land line: dial area code plus the number
Cell phone to cell phone: dial area code plus number                                   

CALLING THE USA FROM MEXICO
Dial 001+area code+number

CALLING USA TOLL FREE NUMBERS FROM MEXICO
For 800 numbers, dial 001+880+number
For 866 numbers, dial 001+883+number
For 877 numbers, dial 001+882+number
For 888 numbers, dial 001+881+number

CALLING MEXICO FROM THE USA
To call a land line, dial 011+52+area code+number
To call a cell phone, dial 011+521+area code+number

 

 NEED TO CALL YOUR REALTOR WHEN IN CABO?

 

Now here is something that usually works..I say usually because it all depends on your service provider back in your home country and whether you are activated in Mexico.  Most of my clients are able to contact me using their Canadian or American cell phone just by dialing my area code and number…ie: 624 176-4249.  If you do this, please always leave a message because the number that usually shows up on my phone is 139-3999999 and I have no idea why. 

Also, I know I’ve used the word “usually” a lot and that is because information and instructions change frequently here and without notice.

Note that area codes in Mexico are always 3 digits long except in Mexico City, Guadalajara and Monterrey where the area code is 2 digits long and the telephone number is 8 digits long!

You really don’t need a Mexican driver’s license to drive legally in Mexico.  Your license from the U.S. or Canada will work just fine, but I have always found that having a Mexican license has its benefits.  For example:  if and when you get pulled over for an infraction (and eventually you will be pulled over..it’s just a matter of time), the officer will take your driver’s license and you will then have to go to the police station and pay your fine (usually meager) and your license will be returned.  I would much rather give up my Mexican driver’s license than relinquish my U.S. license.  Gee, what if my Texas license inadvertently gets lost… I don’t want the hassle of getting a new license when I return to the states.  It’s also easier to show your Mexican license as proof of your identity at the bank.  I really don’t like to carry my passport with me at all times…what if I lost it???

Soooo…. I needed to renew my Mexican license but I forgot which paperwork I would need and how many copies of each.  I put a question out to the Tomatoes (a local woman’s group about 450 strong).  I got several responses.  You need a copy of a utility bill, copy of your passport and/ or copy of your FM3 or FM2 if you have one. THE NEW TWIST:  you now have to take a test for renewal…Oh No…and it is in Spanish.  But not to worry..there is an enterprising gentleman in front of the licensing place (DMV?) and for approximately $200 peso he will go inside and take the test for you….in front of the authorities.  I had to giggle…where is the logic in this?  I get to the DMV (?) just before 8 and I’m first in line.  I go inside and a gentleman fills out some forms; the usual, eye and hair color, size of forehead, size of nose, etc.  Then he whips out a sheet of about 29 questions and proceeds to check the correct answers and hands it to me to sign.  Done!  That was my test and of course I passed! And no charge! My lucky day! Off to the cajas ( cashiers) and I pay $486 pesos for my new license.  Please remember to have change because they don’t have any.  If you pay with a $500 peso note they cannot make change.  I had change and was only one peso short but the guy behind me gave me a peso.

Then to the copy lady to have a copy made of my receipt (2 pesos per copy).  Then off to the photo lady.  Photo taken, (10 pesos) and then I am asked to check the paperwork to make sure everything is entered correctly.  I actually asked if I could change my date of birth…Ha Ha. They laughed and said no.  It was worth a try. They let me do that when I first got my license and I shaved 5 years off my age.  Wait about 10 minutes and you are handed a new license.  The whole procedure took 47 minutes…yes I was keeping track.

Please remember, this was for my renewal.  If you are getting a license for the first time you will first need to go to a local lab and bring in a receipt from that lab which states your blood type.  This goes on your license.  Actually, I think this is a great idea in case you are in an accident and need blood fast.

Very easy!

The following information about the impending international air travel from John Wayne Airport in Orange County, California makes me want to throw my arms in the air (if I were about 20 years younger, I’d throw my whole body in the air) and shout “Hallelujah!” To quote a line from the movie Field of Dreams, “If you build it, they will come”….and we will, we will!  This is wonderful news for all Orange Countians who travel south of the border to Mexican vacation destinations and especially Los Cabos.  No more driving to Los Angeles and having to leave several hours early because of morning rush hour traffic; no more having to fly through Phoenix, adding hours to you trip and having to change planes and lug your carry-on from one terminal to the other.  I can’t stop grinning and the flights cannot start soon enough.

JWA INTERNATIONAL AIRPORT: The following article was written by By MARY ANN MILBOURN / THE ORANGE COUNTY REGISTER

                                                                                                                                                               

Orange County travelers no longer will have to make the trek to LAX or San Diego to fly to Mexico after John Wayne Airport starts offering direct flights to Cabo San Lucas and Mexico City next year.
Plans by Southwest Airlines to offer Mexico service through its AirTran Airways subsidiary were announced Sunday during dedication ceremonies for JWA’s Terminal C, opening today.

                                                                 

Terminal C includes a new customs facility that allows JWA to offer full-service international flights for the first time. (Current JWA travelers to Vancouver clear customs in Canada.) Officials said Mexico service could begin as soon as next June.

Greg Wells, Southwest senior vice president of operations, said that international service will be a first for his airline, too.

He noted Southwest has only been a domestic carrier. However, the airline’s recent acquisition of Atlanta-based AirTran, which flies to Mexico and other international destinations, provides Southwest with the opportunity to expand overseas.                                       

During a Terminal C media preview last week, JWA Airport Director Alan Murphy said no airline had been secured to provide Mexico service. The Board of Supervisors, however, approved a $300,000 rent credit and other incentives, which made the cost of providing the international service more attractive.

The board action allots three JWA slots to Mexico. Murphy said officials would not know until December if any other airline would bid for the third slot.

Murphy said he was particularly pleased with the destinations Southwest selected because Cabo would be popular with leisure travelers while Mexico City could attract both leisure and business passengers.

County Supervisor John Moorlach, who attended the ceremonies, noted the Mexico flights will be a real boost for Orange County tourism.

Mexico ranks first among international visitors to Orange County. Last year, 890,000 Orange County tourists came from Mexico, according to CIC Research.

“Travelers from Mexico who come to Orange County stay about a week and spend a lot of money,” Moorlach said. “This is really good.”

Southwest officials said they would have to wait until they get Department of Transportation approval for the service before they will be able to announce the Mexico flight schedule or fares.

 

Pay Your Mexico Property Taxes Online

Now you can pay your Los Cabos Mexico Property taxes online.

The website is in Spanish but it’s easy.

Log on to www.eloscabos.gob.mx  on the right hand side of the screen, click on the box that says Predial (property taxes in Spanish).

Enter your Clave Catastral Number (tax ID number).You will find this number on your deed (Escritura if you’re a national or Fideicomiso if you’re a foreigner). You must put a dash (-) before the last 6 numbers of your tax ID number.  For example: 402042020002-001014.  If you have paid your property taxes before, you should have a paper about 4×8 inches which states your clave catastral number inside of the blue box.

The amount of tax due will be shown in PESOS. You can pay with an American/Canadian credit card but your payment will be converted into pesos.

Enter your card payment information and your credit card account will be debited at the exchange rate of the day.

For future reference, pay in January February or March and receive a discount on your property taxes for early payment.  The best discount is in January and you receive a 20% discount. The 2012 taxes are now posted.

So simple!  Cabo is catching up digitally!  We love it!

Dia de Los Muertos

Artist: Francisco Cabello

Or for the Spanish impaired, Day of the Dead.  Celebrated from October 31 (think Halloween) through November 2^nd, these days allow the departed to return to the mortal world to visit loved ones. The spirits of babies and children who have died (called angelitos, “little angels”) arrive on October 31st at midnight, spend an entire day with their families and then leave. Adults come the following day November 2^nd.

Day of the Dead is the time families can pay homage to those who have passed on. They believe, through a series of rituals and offerings, that this is the one time of year their dead relatives can return to share a meal and have their souls return to be close to them again.   The people in Mexico welcome the spirits of their families with the delicious smell of food in the air, candies decorated like skulls, and lighted candles to guide them home again. Gravestones are decorated, and the whole family will gather in the graveyard to await and pay respects to the deceased.

When I first started coming to Mexico, I observed the cemeteries, decorated with flowers and overflowing with food, toys and favorite possessions of the departed.  Family members gather at the gravesites and bring the favorite foods and possession of those that have passed on. The spirits are greeted with offerings of food and things that the person enjoyed in life. It is believed that the spirits consume the essence and the aroma of the foods that are offered. When the spirits depart, the living consume the food and share it with their family, friends and neighbors.

Other items that are placed on the altar include sugar skulls often with the person’s name inscribed on the top, pan de muertos, a special bread that is made especially for the season, and marigolds which lend a special fragrance to the altar and are thought to lure the deceased back home. This was a celebration of life and I was impressed.

Sugar skull art reflects the folk art style of big happy smiles, colorful icing and sparkly tin and glittery adornments. Sugar skulls are labor intensive and made in very small batches in the homes of sugar skull makers. These
wonderful artisans are disappearing as fabricated and imported candy skulls take their place.

Look around town in many of the little shops and you are sure to find skeletons in almost every shop. some basic, some very ornate…these are all connected to Dia de los Muertos.

I love everything this artist paints. Francisco Cabello!  This is one of my favorites.

Artist: Francisco Cabello

 

 

SO YOU GOT PULLED OVER:  It’s very easy to commit a traffic violation in Cabo…so many of the one way streets are not marked  (see my Navigating Cabo Blog).  The fact that you, in most cases, need to be in the left hand lane of the access road in order to make a left hand turn doesn’t help either. Gee, then you only have to cross over 4 lanes of traffic! (Only downtown in a few areas are you allowed to make a left turn from the main street).  Pay attention because if you miss your exit to the access road you will have to drive about 3-5 miles farther before you can turn around. My friends laugh at me because I drive the access road most of the time…I get on at Wal-Mart and go to wherever I need to go.  Now I don’t have to worry about getting on and off when I need to turn or exit.  Check out the on/off ramps and you will understand why I think it is safter to just drive the access roads.

Should you get pulled over, the officer will probably ask for your driver’s license.  By law, they cannot take this but as one officer told me…”You’re in our country now”. If you want to give it a try, here it is in spanish: Es la ley. Yo no tengo que darle mi  licensia. It probably won’t work. All in all, the whole system has gotten a lot better in the last few years and an effort is being made to clean up the police force.  If an officer does take your license, he will issue a ticket and you can get your license back by going to the police station out on the Todos Santos road; you pay your fine and get your license back.  I got a ticket a few months back for driving the wrong way on a one way street.  My fine was $299 pesos (about $25 USD).

Of course there are still police officers out there who are looking for a quick buck…this is called a bribe, or as we affectionately call it, MORDIDA.  Translated this means “ the bite”.  Yes you can pay off certain police officers and a lot of people, tourists and locals alike, do use the mordida system.  I will never add to the problem by paying someone off.  I have always suggested that the officer go with me to police station.  Several times the officer just left..and left me alone.

Hint:  If you rent a car check to make sure that the tags are current and displayed.  If the tags are not current, insist on another car with current tags. The policia love to ticket rental cars and they love to intimidate tourists.

Hint again:  Some of the curbs are painted red and some of them were red at one time but the paint has worn off.  It doesn’t matter if the curb does not look red.  You will either be towed or ticketed.  If you are not around the police will remove your license plate and you will have to go to the police station and pay your fine.  You will get your plate back but don’t count on the screws needed to reattach it.

Hint once again: Use extra caution at the light out on the highway towards San Jose in front of the Pemex station.  There are those very impatient drivers (mostly the taxi drivers) who will make a left hand turn from the right hand lane.

That being said…I watched a friend of mine’s accountant make an illegal turn and get broadsided…he deserved it and I didn’t even feel bad for him. I bet he won’t do that again.  Costly lesson.

I once saw a bumper sticker: Be Alert…the world needs more lerts. That tickled me.  Seriously,
                                                                      

                                                                     BE ALERT!

 

PASSPORTS and TRAVEL DOCUMENTS:  Make a few copies of page 1…just in case. Keep one copy with you and leave the rest in your hotel safe or if you are renting a house, villa, condo, leave the original in a safe place.

NEVER, EVER leave your passport or anything of value or importance in your car. Do not leave anything in the trunk and especially if you go out to Chileno or Santa Maria beaches.  Take your ‘stuff’ out of the car and haul it with you to the beach!

MONEY, DINERO, MOOLAH:  I always exchange my dollars for pesos as soon as I can.  If you need to do this at your hotel check the exchange rate that they are offering against the exchange rate online.  I use this online exchange rate site: www.x-rates.com   The exchange rates shown on this site will probably be a little better than you will get at a local money exchange or hotel.  Banks will NOT exchange your dollars unless you have an account, deposit the dollars and then withdraw money in pesos. If you don’t have an account then don’t go to the bank to exchange dollars….it won’t happen.  If the hotel exchange rate is not favorable then just exchange a minimum amount until you can get to a money exchange. Intercam in the mall also exchanges dollars into pesos.  I try never to pay for restaurant bills, gas, or, actually, anything in dollars.  All of the local businesses can set their own exchange rate.  I have seen restaurants give 9 to 1 when the exchange rate is about 12 to 1.  Never pay for gas with dollars..not only will you not get a good exchange rate but you will most likely get ripped on the change you receive.

Sometimes the hotels will surprise you and offer an acceptable rate.  If you make a Costco run you can use dollars to pay for your “stuff” and you will get change in pesos.  Costco usually gives a good exchange rate.

ATM MACHINES:  I always use an atm inside of a bank or outside right near the door.  There have been several instances of scanners being attached to steal your information at the atm’s inside of grocery stores…most notably the Mega store in San Jose. Keep in mind that you want to select “national currency” and also keep in mind that if you enter $300 you will get that amount in pesos which is equivalent to about $30 USD. To withdraw around $300 USD you would have to enter 3000 pesos.    One of my clients told me that he used an atm down near the marina and was charged $50 for the transaction…I don’t know if this was dollars or pesos since I was not there and he couldn’t figure it out at the time. For more information on atm scams please check out these website articles:  http://www.snopes.com/fraud/atm/atmcamera.asp
http://www.snopes.com/fraud/atm/atmtheft.asp

WANT TO USE YOUR CREDIT CARD FOR EVERYTHING…YOU MIGHT WANT TO RETHINK THIS!

My personal choice is never to use a credit card for small purchases or entertainment purposes (yes that means restaurants, bars, etc.).  I’m the same way in the United States. The more you use your credit card the greater the chance for someone to steal your information…especially in restaurants and bars where your card is out of your sight. You don’t have to worry about gas stations because they only take cash!  I have no problem using my card at Costco, Wal-Mart, Home Depot and any of your larger, well known establishments. Here’s a third person story:  I sold a condo to a gentleman from New York.  I took him shopping. We were all over the place.  We also stopped at pharmacies for meds, taco stands for lunch, and mini marts for snacks.  He had a pocketful of cash but only wanted to use his card o he could get his mileage points. C’mon, is getting a few points is worth going through all the trauma when your credit card info has been compromised?  The next day he called me to say that his bank had called and there were several charges from places that we had never visited.  End of story.

This should be categorized in a “I couldn’t have said it better” column. 

Charles Simpson worked on Wall Street for a quarter of a century, and then retired to Puerto Vallarta where he has been living with his wife and daughter for 8 years. He feels an education about Mexico is the first step for anyone considering purchasing property here, so he uses his extensive research and financial background to benefit his investor clients and to write articles on investment opportunities in Mexico for various online publications and real estate magazines.
To reach Charles Simpson: info@mexinvestnow.com

THE NEW GLOBAL ECONOMIC REALITY
Written by Charles Simpson

First: A reality check on Mexico
Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role.The U.S. media – over the last year – has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.

Let’s look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. “Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians,” Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This “business” is globally now competing with drugs in terms of profits.

It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Tijuana, Nogales, and Juarez. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine’s Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.

Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these “businessmen” are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let’s look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories.

FOX News continues to scare people with its focus on kidnapping. There are kidnappings in Mexico. The concentration of kidnappings has been in Mexico City, among the very rich and the three aforementioned border Cities. With the exception of Mexico City, the number one city for kidnappings among NAFTA countries is Phoenix, Arizona with over 359 in 2008. The Phoenix Police estimate that twice that number of kidnappings goes unreported, because like Mexico 99% of these crimes were directly related to drug and human traffic. Phoenix, unfortunately, is geographically profitable transshipping location. Mexicans, just like 99% of U.S. Citizens during prohibition, go about their daily lives all over the country. They get up, go to school or work and live their lives untouched by the border town violence.

These same protectionist news sources have misled the public as to the real danger from the swine flu in Mexico and temporary devastated the tourism business. As of May 27 2009 there have been 87 deaths in Mexico from the swine flu. During those same five months there have been 36 murdered school children in Chicago. By their logic, if 87 deaths from the swine flu in Mexico warrants canceling flights and cruise ships to Mexico, then close all roads and highways in the USA because of record 43,359 automobile related deaths in the USA in 2008.

What is just getting underway is what many are calling the “Largest southern migration to Mexico of people and real estate assets since the Civil War” A significant percentage of the Baby Boomers have been doing the research and are making the life changing decision to move out of the U.S.A. The number one retirement destination in the world is Mexico. There are already over 2,000,000 US and Canadian property owners in Mexico. The most conservative number of American and Canadian Baby Boomers who are on their way to owning property in Mexico for full or part time living in the next 15 years is over 6,000,000. Do the math on 6,000,000 people buying a $300,000 house or condo and you will understand why the U.S. Government is trying to tax this massive shift of money to Mexico through H.R. 3056. The U.S. government calls this “The Tax Collection Responsibility Act of 2007”. Those who will have to pay it are calling this the EXIT TAX.

Mexico: A better economic choice than China

Another large exodus from the U.S.A is high paying skilled jobs. The job shift in automobile sector, both car and parts manufacturing, is already known by most investors. In the last few months as John Deere and Caterpillar have been laying off thousands of workers in the U.S.A., and hiring equal numbers in Mexico. The most recent industry that is making the shift is the aerospace manufacturers. In the city of Zacatecas there is currently a $210 million aerospace facility being built. With the 11 U.S. companies moving there, it is estimated to provide over 200,000 new high paying jobs in the coming years. One of the main factors for the shift in job south to Mexico instead of China is realistic analysis of total production, labor and delivery costs. While the labor costs in China are 40% less on average, the overall transportation costs and inherent risks of a long distance supply chain, and quality control issues, gives Mexico a distinct financial advantage.

Mexico’s real economic future

Mexico has avoided completely the subprime problem that has devastated the U.S. banking industry. The Mexican banks are healthy and profitable. Mexico has a growing and very healthy middle and upper middle class. The very recent introduction of residential financing has Mexico in a unique position of having over 90% of current homeowners owning their house outright. U.S. banks are competing for the Mexican, Canadian and American cross border loan business. It is and will continue to be a very safe and very profitable business. These same banks that were loaning in a reckless manner have learned their lesson and are loaning here the old fashioned way. They require a minimum of a 680 credit score, 30% down payment, and verifiable income that can support the loan. In most areas of Mexico where Baby Boomers are moving to, with the exception of Puerto Penasco (which did not have a national and international base of buyers), there is no real estate bubble.. The higher end markets ($2-20 million) in many of these destinations are going through a modest correction. The Baby Boomers market here is between $200,000 and $600,000. With the continuing demand inside the Bay of Banderas, that price point, in the coming years, will disappear. This is the reason the Mexican government is spending billions of dollars on more infrastructure north along the coast all the way up to Mazatlan.

The other major area where America has become overpriced is in the field of health care. This massive shift of revenues is estimated to add 5-7% to Mexico’s GDP. The name for this “business” is Medical Tourism. The two biggest competitors for Mexico were Thailand and India. Thailand and India’s biggest drawback is geography. Also recent events, Thailand’s inability to keep a government in place and the recent terrorist attack in Mumbai, have helped Mexico capture close to half of this growth industry. In Mexico today there are over 56 world class hospitals being built to keep up with this business.

Mexico is currently sitting on a cash surplus and an almost balanced budget. Most Americans have never heard of Carlos Slim until he loaned the New York Times $250 million. After that it became clear to many investors around the world what Mexicans already knew: that Mexico had been able to avoid the worst of the U.S. economic devastation. Mexico’s resilience is to be admired. When the U.S. Federal Reserve granted a $30 billion loan to each of Mexico, Singapore, South Korea, and Brazil, Mexico reinvested the money in Treasury bonds in an account in New York City.

According to oil traders, Mexico’s Pemex wisely as the price of oil shot to $147 a barrel put in place an investment strategy that hinged on oil trading in the range of $38-$60 a barrel. Since the beginning of 2009 Mexico has been collecting revenues on hedged positions that give them $90-$110 per barrel today. Mexico’s recent and under reported oil discovery in the Palaeo Channels of Chicontepec has placed it third in the world for oil reserves, right behind Canada and Saudi Arabia.

The following is a quote from Rosalind Wilson, President of the Canadian Chamber of Commerce on March 19, 2009. “The strength of the Mexican economic system makes the country a favorite destination for Canadian investment”.

OPPORTUNITIES:
WHY PUERTO VALLARTA & THE RIVIERA NAYARIT (And don’t forget Los Cabos..Gee, these mainlanders!)

The answer is simple and old fashioned: SUPPLY AND DEMAND.

The area of Puerto Vallarta/Riviera Nayarit inside the Bay of Banderas is an investor’s dream. (Again, don’t forget Los Cabos and we don’t have the humidity!) This area has the comprehensive infrastructure in place, world class hospitals and dental care, natural investment protection from the Sierra Madre Mountains, endless future water supply, low to nonexistent crime, international airport, and limited supply inside the Bay, first class private bilingual schools and higher than average appreciation potential. Like many areas in Mexico there is large demand for full and part time retirement living and a lot of construction underway to meet this demand. Pre-construction of course is where the best bargains are available.

I would offer a word of caution for investors in Mexico. Do not be seduced by the endless natural beauty that is everywhere, both inland in colonial towns and along thousands of miles of beach. Apply conservative medium and long term investment strategies without emotion. The demand for full and part time living by American and Canadian Baby Boomers is evident throughout the country. The top two choice locations are ocean front, and ocean view. The third overall choice, which is less expensive, is inland in one of the many beautiful colonial towns or small cities.

Mexico, with the world’s 13th largest GDP, is no longer a “Third World Country”, but rather a fast growing, economically secure state, as the most recent five-year history of its financial markets when compared to the U.S.A.’s financial markets suggests.

DOW JONES AVERAGES MAY 2004 10,200 MAY 2009 8,200 20% LOSS IN 5 YEARS

MEXICAN BOLSA MAY 2004 10,000 MAY 2009 23,000 130% GAIN IN 5 YEARS

 

Driving from Cabo San Lucas to San Diego, May 2011

While this is a blog about my last drive up Baja from Cabo to San Diego,  it is really my chance to vent  about the rude, inconsiderate, hostile attitude displayed by one of our border agents.  I was embarrassed by the actions and attitude of this border agent and the fact that he was representing the United States.

I just made my 26^th trip driving up Baja from Cabo to San Diego. I have always loved this drive…some people think it is boring but I do my best daydreaming on this drive and the terrain changes always keep it interesting for me.  The Baja desert is always much prettier in the fall after the summer rains when everything is green and lush, even for a desert.  Since this was May and there has not been any rain in months, I was not surprised that everything was brown and not very pretty.  The roads in Baja Sur (that is the part of Baja after you cut over to the Sea of Cortez from Guerrero Negro on the Pacific side) are usually smooth as glass.  Not so this time.  Now keep in mind, I drove down in October and then again in January and the roads were great.  They could not have deteriorated enough in a few short rainless months to warrant the construction that is taking place.  Roads were torn up; new dirt brought in, and mounds of new asphalt by the side of the road ready to be laid.  Don’t have a clue as to why they are doing this (keeping people employed?) but it was really annoying and slowed me down considerably.  Since it is only a two lane road there were several long wait periods when I had to wait as a long line of cars approached from the north.  A 40 minute delay is not fun when you are boxed in by semis and busses.  I caravanned with a friend of mine and considering all of the construction, we made good time.  We usually cross at the border at San Ysidro but decided to try the Otay Mesa crossing this time.  I got great directions from people who have used this border crossing in the past and we got there with no trouble.  The road was very well marked along the new 4-lane highway called Corridor 2000…many Garita Otay signs leading you to the border. We thought we were home free when we saw that the lines were only about ¼ mile long.  Not so…first one lane was closed and then another.  All those displaced cars maneuvered to get into the remaining open lanes.  We were soon laneless.  A kind person in an actual lane waved us in.  By the time we reached the border and the agent on the U.S. side, an hour and a half had gone by.  And now for my major rant:  “Whether you work for the government or a private company and if you don’t like your job then I suggest you quit and do something else. Don’t take your misery out on anyone else”. This is directed at the most unpleasant, negative, hostile border agent (American) I have ever encountered.  I almost said something until my better judgment kicked in and I thought:  “This person will definitely send me to secondary if I mouth off.  I will keep my mouth shut!”  I was lucky and after a few really ridiculous questions from him I was waved through.  My friend didn’t fare so well and she was sent to secondary…she had suitcases and two sets of golf clubs. This took her an extra hour and she was really not a happy person.  She mentioned the Nasty Border Agent to the two uniformed agents who went through her suitcases and they told her that Nasty Agent had been on the job for 25 years and that the rest of the agents worried that his attitude would promote road rage and an ‘incident’. 

 

In the future I will cross at San Ysidro.  The wait might be a little longer but in all the years that I have crossed this border, never once have I been treated like a criminal.  The agents at San Ysidro have always welcomed me back and have treated me with respect.

2010

    Wind Farms in Baja       

Mexico is quickly breaking ground and moving forward to join others in the pursuit of clean energy. Wind energy is fast becoming the optimal way to produce clean and green electricity. The much anticipated Aubanel Wind Project is set to be constructed near La Rumorosa, which will put the wind farm just 15 miles south of the border and 60 miles east of San Diego. This proximity of this wind energy farm to the United States naturally means the project will eventually provide cross border energy. The sheer magnitude and potential energy-producing capability of the Aubanel Wind Project will make it one of North America’s largest windfarms.

Currently, the United States, Germany and Spain are the top three producers of wind energy. Mexico could very well join the top fifteen producers thanks to the efforts of two international corporations, Cannon Power Group and Gamesa, along with the support of President Felipe Calderon. Gamesa Technology Corporation, a Spain-based corporation, and Cannon Power Group are both internationally known for their expertise in the construction and maintenance of wind energy farms. Both companies have entered into a 10 year agreement to build and operate the Aubanel Wind Project.

Before Calderon took office, there were no wind energy farms in Mexico. Recent changes in regulations have made wind energy projects in Mexico more feasible for outside companies. His administration has made incredible strides in making Mexico the most advanced country in Latin America when it comes to green energy such as wind farms. This distinction will do more than make Mexico a leader in clean energy; it will also stimulate the local economy by drawing in major investors and boosting confidence in the private sector.

Ground breaking to begin the actual construction and production of energy is slated to begin any time during the next twelve months. The wind farm will encompass 140 square miles. The initial stage of the project will produce anywhere from 70 fto 100 megawatts of electricity. The power generated during this phase will serve Mexican customers. Over the next three to four years, the project will be complete and produce an estimated 1,000 megawatts of electricity. With one megawatt being capable of providing electricity to 250 homes, the fully constructed wind farm will have the ability to supply approximately 250,000 homes with all of their energy needs.

The second phase will allow for enough energy production to export electricity to California. Baja is noted as being the perfect site for the project as it records more wind than all of California. John Prock, Cannon Power Group spokesperson for the Baja project says, “The wind resource is exceptional for the area. Where the desert meets the mountains makes for good wind flow.” The temperature of the desert floor, cooling patterns and Pacific Ocean currents together create a vacuum of sorts which make area winds extremely consistent. He also adds that while wind is a variable resource, winds that measure 18 miles per hour at least 35% of the time are ideal.

Cannon Power Group is the lead developer of the project and has over 30 wind energy projects all across the world, providing upwards of 3,000 megawatts of wind energy worldwide. They produce energy in the U.S., Switzerland, India, Spain, Croatia, Greece, Italy and Turkey. The San Diego-based company has over 30 years of experience and repeatedly sees how wind energy farms in rural communities pump up the local economy through both temporary and long-term job creation. As for economic impact on the area, Prock says, “The majority of infrastructure, maintenance, and on site work will be done by Mexican forces.”

The Cannon Power Group has spent 15 years in the development and measurement phase of the Baja project. Since President Calderon and the Mexican Congress have initiated new laws encouraging the development of clean energy for Mexico, Cannon has been able to begin the permitting phase and environmental impact studies needed to get the plans up and running.

Gamesa will exclusively provide all of the turbines that Cannon Power Group will use in Baja.  Gamesa Technology Corporation currently employs 6,300 people in its facilities in the U.S., Europe, China and India. They will be responsible for building and assembling the turbines for the Aubanel Wind Project. Their two manufacturing facilities in Pennsylvania are constructing the turbines that will be used in Baja. The turbines designed, constructed and maintained by Gamesa generate 18,000 megawatts of power across the world. They proudly estimate that their turbines provide clean energy to offset what would amount to 27 million tons of carbon dioxide waste per year.

Gamesa is also equally proud of the effect their technology has on the local communities and economy. They have made incredible technological advances to further the capability of wind energy and also stimulate local economic growth in the process. Gamesa North America CEO Dirk Matthys says, “Gamesa is proud to be the first wind turbine manufacturer to install utility class wind turbines in Mexico and has over 200 megawatts of installed generation there to date. Each 50 megawatt wind farm brings a positive socio-economic benefit to the region by providing clean energy and also by generating about $15 to $20 million to the local economy through the use of local companies to build new roads and supply construction materials, storage and other services. In addition, each 50 megawatt wind farm creates about 75 to 100 temporary jobs and about 15 permanent positions.”

Wind energy and wind farms in Baja will do more than increase local infrastructure and create construction employment opportunities. It is estimated that wind and solar energy facilities will soon be a main source of manufacturing jobs worldwide. As the technology advances, our dependence on fossil fuels diminishes also. Wind energy is natural, clean and a free renewable resource. There simply is no waste, no drilling, no mining, and no transportation costs. Once start-up costs are covered, wind energy is simply the cheapest to maintain. The Mexican government and investors alike see the Aubanel project as a win-win for both the communities of Baja who will benefit economically and energy-wise and the U.S. which will increase its percentage of clean energy usage due to the proximity of the wind farms to the border.

Wind energy in general has been used throughout history and dates back to the windmills of Babylon in 2000 BC. The technology has advanced enough over the last few decades to also dispel any myths and unwarranted hesitation about its usage. The noise produced by the massive turbines conforms to noise emission codes and does not reach the levels that some fear. Wind farm turbines also help rural communities preserve their natural landscape much more than mines or drilling sites do. There is not any waste, smog, or greenhouse gas issues to account for either. Overall, wind energy and its benefits for Baja will put the area in the forefront of the global movement toward clean energy while preserving the area’s natural beauty and appeal.
The photo in this blog is not in Mexico but I liked the idea of the cactus in the forefront.