The investment opportunities in Baja California are much different than they were even a year ago. With many of the successful developers in the US now building in Baja Norte , there is a security in purchasing here that is attracting investors from not only the U.S. but also from Europe and Asia.
The investment choices are so varied in Baja Norte that it is easy to get confused. At Baja Homes for Sale, we have independently researched some of the developments promoting themselves as excellent investments to see exactly what it is that they are offering.
The fundamental criteria for purchasing Baja property is no different to buying in the United States when it comes to an investment opportunity. There is however other issues that need to be considered.
Purchasing a Condo for an Investment:
If you are considering a condo in one of the new developments lining the coast from Rosarito to Ensenada, here are a few suggestions:
 |
Research the history of the developer to determine what else the company has built |
|
Ask questions about the quality of the construction. |
|
Look for developments that have attractive amenities including a pool, gym, spa, putting green, restaurants, and plenty of recreation area. |
|
Ask to see the CC&R’s so you know what kind of restrictions the management has on renting your unit |
|
Ask the developer if they will provide a furniture package. |
|
Make sure your condo rental will be handled by a professional property management and that they will be marketing the property to optimize your rental return. |
|
Find out what kind of accounting you will receive on the income. |
|
Ask to contact someone who renting their unit now. |
|
Ask the developer to give you an investment return estimate. |
|
Ensure you get independent legal advise. |
Have all of these issues noted in your contract to purchase. Many of the developers will promise you a high return for your unit, but if they are continually building condos in the same area and promising everyone the same return, you would have to ask yourself, "Where will they be getting the tenants from?"
If you are planning to buy a condo with the idea of selling it for a profit, remember that few properties appreciate much within the period of construction and if the developer is building nearby there will be similar property for sale at a lower price.
Make cautious decisions but if you are dealing with a developer with experience and the property has title insurance and US Escrow, the chances are you will see your investment safely grow.
Buying a house for an investment:
When considering the purchase of a house for strictly investment, make sure there is not a development full of other investors. There are several developments that seem to be completely owned by investors. Many of these investors will want to sell their houses within two years and you may have a lot of competition for the buyers. Here are a few suggestions for purchasing a house for investment:
|
Look for a community with a balance of investors and owner occupiers. Don’t be pressured into buying by an agent until you have done all your homework. |
|
Sewage treatment, water, electricity, internet and telephone services are all very important when purchasing a new home here as many developers will not complete these services. Make sure the streets will all be completed before you settle. |
|
Older homes can be great “buys” but be sure you are getting what you pay for. Is the construction sound? Does the roof leak? Get an independent inspection and if the agent does not suggest this, make sure you do. |
|
Ask neighbors about the community. They will be the best source for finding out if there are any assessments anticipated and if the HOA fees are well spent. |
|
Ask to meet the President of the HOA. Find out about security and any extra fees you may be expected to pay. |
|
If you are planning to use your house as a short term rental, make sure you find a professional property management company. Many of the local companies will promise you a return that they can not deliver and will not give you an accurate account of your rental income. Get several recommendations and contact them. |
|
Find out what the capital gains will be when you sell any property in Mexico. |
|
Get both independent tax and legal advise. |
Investing in Baja now with so many Americans getting ready to retire may well prove to be one of the best opportunities around. Just be sure you are working with a company that sells only property that has title insurance and US Escrow. Do not give your deposit to the developer or to the real estate agent. You would not do this in the US and you should not do it here. As is always sound advice with a large purchase of any kind - buy with your head not with your heart.
These are a few of the quality developments in Baja Norte we recommend
based on adhering to the above criteria:
US Developers with an excellent reputation, Title insurance, US Escrow, Quality Control, Excellent Finance,
Hotel-style Management and Professional Marketing.
San Felipe developers with a very good reputation. Quality Construction and Design. U.S. Title Insurance
and Finance. Sound investment for your retirement.
This is a fantastic community with over a 100 homes already completed. Wide streets, excellent planning
and reasonable prices have made this a favorite with buyers who want to find long term tenants. Prices have steadily risen.
So far there is No Title Insurance - but everyone has a Bank Trust.
|
Playas Diamante |
Mexican Developers with many quality projects completed. Offering US Title insurance and Escrow,
Quality Construction, Excellent Property Management, Good long term investment.
|
La Perla |
Mexican developers with a very good reputation, Quality Construction and Design. US Title Insurance and Finance.
Sound investment if you have a long term tenant.
Ensenada Developer with a reputation for building beautiful homes. US Title Insurance, Quality Control,
many community services and incredible views. Long term tenants only. Finance is available.
There are other good investment opportunities and we will be adding to our favorites
regularly so visit us often or contact us for more information.
|