Investing in Baja – The Other California
Affordable prices, improved political climate, the outgoing members of the America’s Baby Boomers and the opportunities for those willing to enjoy the good life to ensure the continued growth of the housing market in coming years. It’s just not necessarily in the U.S.
It is the biggest race in North America land in the 21st century. Imagine being in the U.S. in 1800, on land incredible incredible prices. Now imagine the earth is luxury oceanfront in one of the best climates in the world!
Nobody can predict the future, but there are a number of investment leads many drivers to believe Baja California, Mexico will continue to grow in the foreseeable future.
Low key drivers of real estate investment:
1. Increased demand = increased market Baby Boomers are retiring at a rate of one every eight seconds, almost 70 million over the next 18 years. Most of them are rich, accustomed to traveling and are looking to retire in a certain amount of luxury and style, but can not always do that in the U.S. Many are buying outside the U.S. in places like Mexico and Costa Rica. Baja, Mexico has the advantage of being so close – it is not necessary to catch a plane, it’s in our backyard. You are in Rosarito Beach, just 15 minutes at the border. It is estimated more than 600,000 Americans now live in Mexico and more than 100,000 (with an estimated market value of $ 30 billion) in Baja California have bought and are buying more each day.
Property taxes lower and lower cost of living in Mexico earned dollars go farther ago
Cents an incredible properties
New SENTRI pass to cross the border makes it even easier
More and better medical facilities – USA Some people who live in Mexico now for affordable, quality health care
2. The increased demand for a (currently) of finite resources undervalued – Everyone knows the earth is a finite resource. Oceanfront property is even more limited. Oceanfront property in one of the more temperate climates in the world – is incredibly finito! Buy an oceanfront condo in San Diego and is looking for an easy investment $ 3,000,000 +. Buying in Baja California is a non-obvious, is the same ocean, same view, at a fraction of the cost. This is not the case for long. Developers are now approaching delivery. Once the projects are nearing completion, the low pre-construction prices will be a thing of the past. People often say they will buy “someday.” That someday is now.
3. U.S. Title Companies are now in Mexico Property Insurance purchased by U.S. citizens so your investment is secure. This is more important to safety has helped other Americans shop. Title insurance has helped fuel the explosive growth in Baja California. Both Stewart and First American is here.
4. Availability of funding from the U.S. – It is estimated that over 90% of all transactions on second homes in the region had been paid in cash – but buyers do not need 100% cash to buy. This has opened the market to a much larger market of buyers enable investors, retirees and weekend / holiday to buy second homes or even third.
Developers originally offered the potential for financing, but interest rates were very high 14-16%
Since the introduction of title insurance, USA Lenders have offered financing with rates of between 7% and 8%
5. Trust – Trust Property Mexico law allows Americans to buy in Mexico – The agreement of trust, as a state of confidence, gives him all rights of ownership. With the advent of the North American Free Trade Agreement, the Mexican Government recognized that it was critical to make foreign investment in Mexico safer and easier. Because the Mexican Constitution prohibits foreigners from purchasing or owning real estate within 60 kilometers of an international border or within 30 miles of the Mexican coast, a new secure method of holding title was created. This new instrument, the model of Monaco, allows ownership through a Mexican Property Trust, called “Trust.”
The initial term of the trust is 50 years and may be renewed for additional periods of 50 years – indefinitely – long-term control of assets that can be loved from generation to generation.
6. An improved political climate continues to improve – President Vicente Fox, a member of the National Action Party elected in 2000 began an important period of pro-US legislation. The new President Felipe Calderón, of the same political party, has continued that legacy and continue to improve things. Is pro-U.S. and fighting corruption, taking bold to create a climate of America.
7. Trump has put his stamp of approval on Low – Trump, synonymous with quality, luxury and also profitable property investment is now in Baja California, Mexico. Need I say more?
8. Business is growing – The Law of Attraction With the influx of U.S. companies comes from America. Smart & Final is already there, Home Depot and others are just around the corner. The big names who are always looking for expanding markets now a great opportunity for growth Baja provides. This in turn attract more Americans. It is not just the individual developers out there by himself, is reaching critical momentum Baja.
This is the Great North American Land Rush of the 21 century! It is not too late, but those who doubt lost. Carpe diem.