Mexico jungle development offers alternative to beach

TULUM, Mexico — When everyone else was looking to the beach, the Schnurr family set its sights on the jungle.

About five years ago, the Austin, Texas-based developers hit upon a vision of eco-friendly development: a subdivision of solar-powered resort and retirement homes in the lush jungle two hours south of Cancun.

The Schnurrs had a hunch that the magical jungle, filled with rare orchids, mysterious underground rivers, toucans and howler monkeys, would entice buyers willing to live off the power grid in a beautiful, but sometimes unforgiving, environment.

"We had no idea what we were getting into, but we set sail," said Jason Schnurr, director of business development for the project, dubbed Los Arboles Tulum. "We really went out on a limb on this one."

It turns out people were fascinated by the idea. More than 40 lots have been pre-sold, with buyers including lawyers, teachers and movie directors from the U.S. and as far away as England and Africa.

Individual five-acre lots cost $55,000 and buyers then build their own homes following environmental safeguards.

The 1,200-acre project has sparked a host of copycat developers. The once-ignored land near Los Arboles is now the scene of several other jungle living projects.

"They are light-years ahead of the competition," said R.J. Thoman, a Texas native and long-time real estate agent in Tulum. "We're all here because of the beach, but most people can't afford the beach."

Since the onset of the financial crisis, Thoman said the jungle lots have been outselling the much pricier beach lots, which can reach $500,000 for a third of an acre.

Schnurr Ventures, made up of father and founder Greg Schnurr and sons Jason and Matt, was originally drawn to the Yucatan to develop a beachside housing development in Tulum, a free-spirited, eco-conscious town.

After the success of the original project, the group came upon an available parcel of land about eight miles away in the jungle. With help from family friend Cameron Crow, the developers came up with the concept for Los Arboles.

"Tulum has a kind of eco-boutique feel and we said, 'Let's extend that out to a residential community out in the jungle,' " explained Crow, now the company's sales director. "The first day you're out there and a toucan flies by or you see monkeys running through the trees, you realize you have an opportunity, but also a responsibility."

To preserve the jungle, the developers only allow buyers to build on 5 percent of their five-acre lots. Homes cannot be connected to outside electricity or water systems and owners will be encouraged to come up with eco-friendly solutions like solar panels.

But the developers had no idea of the challenges they would face negotiating Mexico's frustrating bureaucracy. Only in the last month have the Schnurrs cleared the last legal hurdles of environmental studies, municipal permits and, most importantly, individual titles for the subdivided lots, something they say had never been attempted in the Mexican jungle.

Spooked by stories of American buyers caught in legal nightmares, the Schnurrs made proper permitting and titling a priority. Crow said the four years spent wrangling with Mexican bureaucrats was worth it because it will give buyers legal security.

With an inexpensive local work force, Crow said buyers can build a top quality home for as little as $200,000, including the price of the lot and extras such as solar panels, a water well and a natural septic system. Crow said he expects most people to build high into the jungle canopy, where solar panels can catch sunlight and cooler winds decrease the need for air conditioning.

buying in Mexico

Mexican law governing property ownership can be complicated, especially for foreigners.

Foreigners are prevented from directly owning land within 31 miles of the coast and instead must place ownership in a trust held by a Mexican bank.

And much of Mexico's rural land is held by ejidos, swaths of communal lands carved out in the agrarian reform following the Mexican Revolution. Sales of ejidal lands have led to some of the nastiest fights over ownership.

But real estate experts say buying property in Mexico has gotten much easier in recent years, thanks to the availability of title insurance and laws streamlining the process. The top advice from experts is to find a reputable real estate agent.

Cox News Service