President, Rocky Point Home Builders & RE/MAX Agent
As we head into the waning days of summer the City of Puerto Peñasco is returning to normal with minimal restrictions to hinder or slow the flow of tourism that is spurring on talk of new investment opportunities.
The biggest news last month was the long-awaited opening of the city’s beaches to the public which was welcomed in by resident and tourists as thousands flocked to our sandy shores to enjoy the sense of which has been lacking since last Spring.
The result of having minimal restrictions is each weekend is visibly getting busier and busier and word is spreading that Rocky Point is now open for business and returning to normal spurring on new investments. With cases on the decline and strict health protocols still remaining, Rocky Point is setting itself up for a re-birth or renaissance of the explosive investment opportunities that has fueled the local economy for decades.
It seems like yesterday but as 2019 was winding down and we were heading into the holiday season, Puerto Peñasco was coming off a record setting year in terms of economic growth and development. 2019 was an important year for new investments that include two new condo start-ups which are Encantame Towers and Las Palomas Phase III and work continues on the completion of Esmeralda Towers. Also, tourism numbers for 2019 passed more than 3 million visitors setting a record for the most visits in a year.
It’s a fact that 2019 was a major year of growth and expansion for Puerto Peñasco more than in any other year since 2008. Housing starts were up dramatically over the year previous which is a good indicator of the strength of the local economy and shows that investment dollars are flowing into the town through the purchasing an existing home, land/lots and/or building new homes.
During these normal times, there were many contributing factors that spurred the growth including a strong U.S. economy, low unemployment and Americans having more disposable income than in years past. These factors contributed to the current housing and investment boom that is expected to continue through 2020 and beyond.
Let’s fast forward August 2020 post COVID and the same contributing factors such as employment and a strong U.S. economy are all on the rebound which always has a trickle-down effect to Puerto Peñasco. Despite the devastating effect COVID had on the U.S. economy, we have since been steadily recovering in terms of the stock market and unemployment numbers. In fact, in August the U.S. economy added 1.8 million new jobs in just one month alone demonstrating we are coming out of the woods. This is important because the health of the U.S. economy has a direct effect on the local economy here in Rocky Point. The good news is the U.S. economy had a hangover from the impact of COVID but the great news it’s recovering little by little with each passing new month!
New Investment Opportunities
The big question on investor’s minds is will the COVID situation, and the subsequent shutdown of the city for the last several months, have a negative impact on investments? The answer in short is it was only a temporary impact and we are well into a strong recovery.
Before the pandemic struck, Puerto Peñasco was having a record-setting year for tourism, real estate and the home construction market was booming. Things have cooled down as you can imagine during the lockdown but gauging the recent economic indicators the downturn only appeared to be temporary.
Smart and savvy investors understand that a health epidemic will eventually subside and pass and in its wake prosperity is slowing replacing fear. Many are realizing that there is now opportunity to make a move while others are on the sidelines waiting it out.
Prices for land or lots to build a rental home, or even your vacation home, are a great value. For example, Las Conchas, which is one of our oldest and most famous beach communities, has ocean view lots in the low $30s. Go a little farther east to Playa Encanto or La Jolla and you are getting more for your dollar with prices for ocean view lots in the low $20s.
Building a new rental property or vacation home on your newly purchased lot is not difficult process or expense! You can build a nicely equipped 3 bed, 2 bath home, in the low $100s and a 2 Bed, 2 bath, in the low $80s. Put your property to work and have it start paying you back with the rental income you can will generate. Another option is buying an existing rental home with proven rental income at a discount while supplies last.
If you read this article and there is only one thing you remember make it this…Puerto Peñasco is open for business and now is the time to make your move while the good times last and get too expensive!
About the author: Joseph Sanchez is president of Rocky Point Home Builders a design/build contractor specializing in custom home design, construction and engineered renovations and a real estate agent with RE/MAX Legacy. He resides here in Puerto Peñasco with his wife and three children and is originally from Chicago. For more information email him at firstname.lastname@example.org.
As we head into the waning days of summer the City of Puerto Peñasco is returning to normal with minimal restrictions to hinder or slow the flow of tourism that is spurring on talk of new investment opportunities (Photo courtesy of Rocky Point 360)
Prices for land or lots to build a rental home or even your vacation homes are a great value.