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Investing in Baja - The Other California |
Affordable prices, improving political climate, the retiring of Americas Baby Boomers and opportunities for those ready to enjoy the good life guarantee the continuous growth of the real estate market over the next few years. Its just not necessarily in the U.S.
Its the greatest North American land rush in the 21st Century. Imagine being in the U.S. in the 1800s, incredible land at amazing prices. Now imagine the land is oceanfront luxury in one of the best climates in the world!
No one can predict the future, but there are a number of key investment drivers leading many to believe Baja California, Mexico will continue growing in the foreseeable future.
Key Baja real estate investment drivers:
1. Increasing Demand = Growing Market Baby Boomers are retiring at a rate of one every eight seconds, nearly 70 million in the next 18 years. Most of them are affluent, accustomed to traveling and are looking to retire in a certain amount of luxury and style, though they cant always do that in the U.S. Many are buying out of the U.S. in places like Mexico & Costa Rica. Baja, Mexico has the distinct advantage of being so close - no need to hop on a plane, its in our backyard. Youre in Rosarito Beach just 15 minutes over the border. Its estimated more than 600,000 Americans now live in Mexico and more than 100,000 (with an estimated market value of $30 Billion) have bought in Baja and more are buying every day.
Lower property taxes & lower cost of living in Mexico makes dollars earned go further
Incredible properties for pennies on the dollar
New Sentri pass makes crossing the border even easier
More & better medical facilities - some U.S. dwelling citizens now come to Mexico for affordable, quality healthcare
2. Increasing Demand of a (currently) Undervalued Finite Resource - Everyone knows land is a finite resource. Oceanfront property is even more finite. Oceanfront property in one of the most temperate climates in the world - is incredibly finite! Buy an oceanfront condo in San Diego and youre easily looking at a $3,000,000+ investment. Buying in Baja is a no-brainer- its the same ocean, the same view, for a fraction of the cost. This wont be the case for long. Developers are now getting closer to delivering. Once projects are nearing completion, low pre-construction pricing will be a thing of the past. People often say theyll buy someday. That someday is now.
3. U.S. Title Companies are now Insuring properties in Mexico purchased by U.S. Citizens so your investment is safe. More importantly this safety has helped other Americans buy comfortably. Title insurance has helped fuel the explosive growth in Baja. Both Stewart and First American are here.
4. Availability of U.S. Financing - It was estimated that more than 90% of all second home transactions in the region had been paid in cash - but now buyers dont need 100% cash in hand in order to buy. This has opened up the market to a much broader market of buyers allowing investors, retirees and weekend/vacationers to buy second homes or even third.
Developers originally offered potential financing but the interest rates were very high 14-16%
Since the introduction of title insurance, U.S. lenders have offered financing with rates between 7% and 8%
5. Fideicomiso - Mexican Property Trust Allows Americans the Right to Buy in Mexico - This trust agreement, much like an estate trust, gives you all the rights of ownership. With the advent of North American Free Trade Agreement, the Mexican Government recognized 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 miles of an international border or within 30 miles of the Mexican Coast, a new, safe method of holding title was created. This new instrument, modeled after the one in Monaco, allows ownership through a Mexican Property Trust, called a Fideicomiso.
The initial term of the trust is 50 years and it can be renewed for additional periods of 50 years - indefinitely - providing long-term control of the asset which can be willed from generation to generation.
6. A Greatly Improved & Still Improving Political Climate - President Vicente Fox, a member of the National Action Party elected in 2000 began a vital period of pro-U.S. legislation. The new President Philippe Calderon, of the same political party, has continued that legacy and continues to improve things. Hes pro-U.S. and anti-corruption taking bold moves to establish an American friendly environment.
7. Trump has Put His Stamp of Approval on Baja - Trump, synonymous with quality, luxury and moreover profitable real estate investments is now in Baja, Mexico. Need we say more?
8. Business is Growing - The Law of Attraction With the huge influx of Americans comes American businesses. 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 see the great growth opportunity Baja provides. This in turn will attract even more Americans. No longer is it just the individual developer out there by himself or herself, Baja is now reaching critical momentum.
This is the Great North American Land Rush of the 21 Century! Its not too late, but those who hesitate will lose. Carpe diem.
For more information contact Mike Wray at 949-678-6453 or go to www.Baja4US.com . Baja4US is company that provides services to allow Americans to buy safely in Baja.
About AuthorDiane Forsman & Mike Wray
Source: ArticleTrader.com
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