Steps Required to Break Ground on your Mexican Dream Home

By Joseph Sanchez
President, Rocky Point Home Builders

We meet with many clients each month and answer many of the same questions such as what the process is to get permits, how do we establish electric, water, what are the costs? We thought this month we would address the steps required to break ground on your dream home in this month’s article, so you can have a better understanding of the process and costs.

Step 1 – Clean Title
Before you begin to design your home, you must first make sure that all tax payments are up to date on your property or you will not receive your permits. This is easy and tax payments are inexpensive compared to paying property taxes in the U.S or Canada. Make sure you keep all receipts for your tax payments in a file, so you can easily retrieve them when needed.

Before you build your home you must prep lot by either excavating or adding fill to make it level.

Step 2 – Topography Survey
Before designing your home, you must get your lot surveyed by an engineer. This is an important aspect of your home design because a professional architect will use the survey to design the home according to the flow/slope of the lot.

Step 3 – Home Design Blueprints

Before you can begin to build your home you obviously need a blueprint for construction. The blueprints will be taken to city hall and your HOA for approvals and permits. We highly recommend working with a Design/Build contractor for designing your home because the benefit is your home will be designed according to your budget. A design/build contractor knows the costs of construction so if you want to stay in budget this is very important. Don’t make the mistake of designing a dream home by an independent architect then take it to a contractor and become shocked by the price. A design/build company will design the home according to your exact budget.

Before you can begin to build your home you need a blueprint for construction. The blueprints will be taken to city hall and your HOA for approvals and permits.

Step 4 – HOA Approvals
Once your home design is complete, most HOAs want to review the plans and approve them first before you get permits from the city. Some HOAs charge money for the permission to break ground others do not. Some have environmental impact fees, road fees and other costs. All HOAs are different and its important to understand the rules before purchasing your lot.

Step 5 – DRO Permit
After your HOA signs off on your plans, if required, now its time to take your blueprints to the city engineer known as the DRO here in Mexico. The DRO will review the plans and sign each page of your blueprints. There is a cost for his signature and it depends on your location of your lot and the sq. meters. The more desirable the location and the larger the home the more expensive the cost. But costs can start as low as $1000 and go up from there. Unfortunately, there is no published pricing schedule to review it is only determined by the DRO office on a per application basis.  However, your architect or contractor will get this completed on your behalf.

When you decide to build your home call the experts at 815-553-2683.

Step 6 – City Permits
Once you get your DRO signature you are now ready to get your construction permits. Your contractor or architect should do this on your behalf and will navigate the bureaucracy for you. The costs can start as low as $1000 and higher again depending on the location and the total sq. meters of the design. This is the part where they will ask for your tax payment receipts for the year, a copy of your Fideicomiso and a copy of your IDs. If you are unsure of what is a Fideicomiso ask your real estate agent they are happy to help.

Once all the pre-construction steps are completed you are ready to build your home.

Step 7 – Water and Electric Service
Once you get your city permits and the DRO signature you have the green light to break ground but first you need to establish electric and water on the lot before anything begins. The electric company here is CFE and the water company is OOMAPAS. Your contractor should again take care of this for you and work with them to get it done. Costs for water, if its available in your subdivision, starts as low as $300 and can go higher depending on location. For electric service, costs can start as low as $500 and go higher again depending on location and depending on if you need a transformer. If you need a transformer than can add a significant cost as much as $1,000-$3,000. When buying a lot look for a transformer near your property if you don’t see one that should be taken into consideration before you purchase. You will again need a copy of your Fideicomiso and a copy of your IDs to establish the service.

Step8 – Lot Prep
After all that is completed we are almost ready to break ground but first we need to prep the lot. This is a cost most purchasers don’t realize until they reach this point. Many lots here need fill or need excavation. This service is outside of the cost to build the home this is an added cost. If your lot if fairly level with the center of the street you are looking at a couple thousand dollars only. However, if it needs excavation or fill that can be expensive because the machines are leased by the hour. We have built homes where excavation can be as high as $25,000. When purchasing a lot always look for a level lot if possible because it will save you money.

Conclusion
So now you know the costs necessary to start construction of your home. The costs outlined today are extra costs and outside of the contractor’s price to build your home and out of their control but they will be happy to assist you with getting them taken care of.

About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and renovations. He resides here in Puerto Peñasco with his wife and two children and is originally from Chicago. For more information email him at sales@rockypointhomebuilders.com

 

Puerto Peñasco Cruise Terminal to be completed by 2019

By Joseph Sanchez
President, Rocky Point Home Builders

The long-awaited completion of a project that will soon bring the world’s cruise ships to the shores of Puerto Peñasco just got a boost of good news in June when Gov. Doug Ducey of Arizona and Sonora State Gov. Claudia Pavlovich created a memorandum of understanding to ask the Mexican government to contribute the remaining funding for the construction of the cruise port in Puerto Penasco and to allow firms in Arizona to service the cruise ships docking at Puerto Peñasco, also known as Rocky Point, in the Sea of Cortés.

rocky point cruise terminal
A rendering of the Puerto Peñasco’s cruise terminal that will soon bring the world’s cruise ships to the shores of Puerto Peñasco starting in 2019. (Photo courtesy of the Comision de Foremento al Turismo del Estado de Sonora)

Gov. Claudia Pavlovich was confident that the agreement would help free up federal funds to finish the job and pointed out the advantages of cruise ship services coming from Arizona rather than Hermosillo, Sonora’s capital. Hermosillo is six hours from Puerto Peñasco while Phoenix is half the distance, making it more logical that the supplies the ships need — from linens to flowers for 3,000 passengers at a time — come from Arizona.

Halfway to Completion
Although the port is only about 50% completed, Sonora Tourism Secretary Héctor Platt Mazón said construction of the pier and terminal can now be expected to resume. According to the report, the project is expected to create thousands of jobs in the state of Sonora while also create economic opportunities for Arizona.

puerto peñasco cruise terminal
The port is currently 50% complete and according to Sonora Tourism Secretary Héctor Platt Mazón construction of the pier and terminal is now expected to resume which is a great news for the city.

The Sonoran government expects to begin docking cruise ships at Rocky Point in 2019

Now is the time to Invest in Puerto Peñasco
This is the moment many investors here in Rocky Point have been waiting for. It is expected that when the terminal opens prices for condos, existing homes and vacant land will all spike in price due to the new influx of tourism and demand. Currently in 2017, prices for vacant land, existing homes and condos are all on the rise and are moving up to 2008 levels before the real estate crash. With the addition of the cruise port you can imagine the impact it will have on real estate.

Now is the time to invest in Puerto Peñasco if you ever had the consideration. According to real estate sources there are many deals available on lots. For example beach front lots in Las Conchas start at $199,000 and if you choose a lot with a short walk to the beach prices start as low as $19,000 and with the average cost is $25,000 plus closing costs. Prices are for land are still reasonable and if you ever wanted to build your dream home now is the time.

rocky point home builders
– If you are considering building your dream home now is the time to make your move because prices are slowly rising in 2017 but and when the terminal is completed prices are expected to spike due to the influx of tourism and new demand.


Building your dream home in Puerto Peñasco is not a difficult process and there has never been a better time to start construction given the strength of the dollar and the competitive lot prices. But if you are considering building a home soon make sure to protect your money by choosing a company who abides by Mexican Federal Labor Laws, has a good reputation in the community, who uses American Construction Contracts and American Escrow accounts.

Puerto Peñasco Home Builders
You need to choose a company you can trust to not steal materials, cut any corners and stay on time with the schedule and most importantly on budget.

The bottom line is whether you are considering building your dream home, purchasing a condo or existing home now is the time to make your move. Prices are rising and this is an opportunity to get in front of the opportunity rather than wishing you had years down the road! Once the cruise terminal opens these types of current low prices will only be a memory.

About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and renovations. He resides here in Puerto Peñasco with his wife and two children and is originally from Chicago. For more information email him at sales@rockypointhomebuilders.com

Considerations when Building or Purchasing a Home in Puerto Peñasco

By Joseph Sanchez
President, Rocky Point Home Builders

Each year, many Americans and Canadians decide to make Puerto Peñasco their home away from home by either purchasing an existing home or by purchasing an empty lot in order to build their dream home in the future. Whichever route you pursue, there are important things to consider for each.

Building a New Home
Building a home on a lot that you purchased is great way to get exactly what you want but most people are intimidated by the process and think it’s difficult. Building your dream home in Puerto Peñasco is not a difficult process and there has never been a better time to start construction given the strength of the dollar and the competitive lot prices.

Building your dream home in Puerto Peñasco is not a difficult process and there has never been a better time to start construction.

Building a home in Rocky Point Mexico is a big decision that makes most Americans nervous. You need to choose a company you can trust to not steal materials, cut any corners and stay on time with the schedule and most importantly on budget. Make sure the company you choose has a presence and notoriety in the community. Ask for a list of references that you can call to investigate before you sign a contract.

In order to protect yourself during the process you want to contract with a company that holds an American corporation in the United States. This is important because if there is ever a disagreement or breach of contract you would have the ability to take legal recourse in the United States versus Mexico.

A typical home build is in the six-figure range so you want to protect that money by working with a company that utilizes a 3rd party American escrow bank accounts that are responsible for the distribution of funds per your contract agreement to the construction company.

Purchasing an Existing Home
Purchasing an existing home has many benefits as well but one thing to consider is having a renovation budget set aside to upgrade the home to modern standards. Many of the existing homes for sale can be 15 years or older depending on the location so you will want to consider upgrading some things such as the electric, plumbing, installing a new kitchen, bathroom, maintenance repairs etc.,

Renovating a home is serious business so you must have a plan that helps to accurately quote the project and to determine the steps for completion. When I say the word, “plan” I mean an engineered drawing or blue print, depending on the scope of work that will guide your contractor from start to completion. Choose a company that has design services so you benefit from single source responsibility and can see the results before you begin work. Not all projects require a design but if you are adding an addition or renovating a bathroom or kitchen for example, we encourage you to spend a little extra money on a design. You will make up that money saving on materials, time and eliminating any costly mistakes.

When it comes to making major renovations to your home you will want to ensure you are hiring a reputable company that follows all Federal labor laws, who acquires all necessary permits and knows and understands any HOA rules and regulations. Most Americans do not realize this but Mexico is highly protective of worker’s rights and medical wellness and it’s the hiring company’s responsibility to ensure those rights are respected. If you hire a company that does not follow the labor laws and a worker gets hurt on your job you are liable for their medical bills and you can be fined.

About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and renovations. He resides here in Puerto Peñasco with his wife and two children and is originally from Chicago. For more information email him at sales@rockypointhomebuilders.com

Rocky Point Home Builder-Secrets to Building your Dream Home in Puerto Peñasco

Building a home in Puerto Peñasco a.k.a. Rocky Point is not a difficult process but you must choose a company IMG_9238with an outstanding reputation, a company who abides by Federal Labor Laws, a company who does not use sub-contractors and finally a company who uses American Construction Contracts and American Escrow accounts.

When deciding to build a home in Rocky Point Mexico you must ensure the company you choose follows the Mexican Federal Labor Laws. Here in Mexico, the labor laws are strict as they are in the States. However it is much easier for companies to skirt these laws and most every home builder here in Puerto Peñasco do what they can to skirt these laws. If you hire a company that does not follow the Federal Labor LawIMG_9236s the government can fine your or worse seize your home and you can be responsible to pay any medical bills for any injuries that occur on the job-site.

A company that follows labor laws will pay into the Federal medical insurance system for their workers so if a worker gets injured the company along with government will pay the medical bills. Think of it as workers comp insurance as in the States. However, Beware of companies that hire sub-contractors because 99.9% of the time they are being paid cash with no benefits and you will be on the hook for an injury or if the sub-company does not get paid by yIMG_9183our contractor. An easy way to ensure this does not happen is to hire a company that does NOT hire sub-contractors. At Rocky Point Home Builders we DO follow all labor laws and all our workers are direct employees. We pay into the social security system for each worker and also pay what’s called Infanovit which is another labor benefit. We pay our workers what is mandated by the Federal Government and this protects our clients from any embarrassment. Never use a company who hires sub-contractors or you will be sorry that you did.
Building a home in Rocky Point Mexico is a big decision and makes most Americans nervous. Most Americans do not live here full time so you need a company you can trust with a presence and notoriety in the community. When yo are read to build a home look around town for billboards, check local papeIMG_8003rs for advertisements, make sure the construction company has a website and most of all an office. We have seen it too many times, people will hire a friend off a recommendation. The friend has no office, no contracting, no website nothing. What ends up happening is the job does not get completed, the workers will steal all the materials, there is a lack of communication therefore major mistakes and on and on.

Another requirement should be a list of references that you can call to investigate. Also, it is important that the company has an office in town that is staffed during the day. A company without an office isn’t really a company, so buyer beware. Finally look at their media presence in town, does the company have billboards, to they have a website, what about a Facebook page and finally do they run ads in local newspapers. A no” to any of those things should be a red flag for any American looking to build a home in Puerto
Peñasco, Mexico.

IMG_8009Rocky Point Home Builders is the largest home builder in Puerto Peñasco,Mexico. With offices here in Rocky Point, they directly employee over 50 workers significantly impacting the local economy. Rocky Point Home Builders does not use sub-contractors. Best of all, they are an American Company who uses American Contracts with American Attorneys and American Escrow Accounts. The accountability is a no-contest when compared to the competition. If you are nervous about building a home here in Rocky Point then talk with Rocky Point Home Builders, we guarantee you will fee assured that you will design and build the home of your dreams.

For more information about Rocky Point Home Builders call 815-553-2683 U.S.  or 638-383-6524 M.X. today or visit our website at http://www.rockypointhomebuilders.com on the internet .