There are many good  investment opportunities in Baja California if you do your homework.
 

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Purchasing a Condo for an Investment

Buying a house for an investment

Quality developments in Baja

 

The investment opportunities in Baja California are much different than they were even a year ago. With many of the successful developers in the U.S. now building in Baja Norte, there is a new 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 Relocation 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:

 

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Research the history of the developer to determine what else the company has built.

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Ask questions about the quality of the construction.

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Look for developments that have attractive amenities including a pool, gym, spa, putting green, restaurants, and plenty of recreation area

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Ask to see the CC&R’s so you know what kind of restrictions the management has on renting your unit.

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Ask the developer if they will provide a furniture package

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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.

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Find out what kind of accounting you will receive on the income.

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Ask to contact someone who renting their unit now.

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Ask the developer to give you an investment return estimate.

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Ensure you get independent legal advice.

 

Be sure to 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 U.S. Escrow, the chances are you will see your investment safely grow.               Top

 

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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:

 

 

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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.

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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.

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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.

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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.

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Ask to meet the President of the HOA. Find out about security and any extra fees you may be expected to pay.

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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.

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Find out what the capital gains will be when you sell any property in Mexico.

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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.

 

What makes a good investment?

  

What makes a good investment in Baja Norte has changed this year due to a series of changes in both the U.S. market and the enormous amount of condo development in the Rosarito / Ensenada region. If you are buying for a short term investment this may not be the best choice for you now with over 12,000 condos either presently in construction or in the planning stages.

 

There area couple of areas that remain uncertain in terms of investment, but may well prove themselves a good buy.

 

Bajamar has been a favorite of golf loving Americans for decades. Recently several new developments have been released there. It is very important to buy only properties with title insurance and escrow there. The deposits are all paid to the developer so make sure you research the developer and know their history of completing construction. Condos there are already expensive and there may not be a lot of appreciation for several years.

 

Ensenada

The market here is still very uncertain when it comes to investing. Single family residences are the most popular property purchase in Ensenada. Many Americans will live here permanently. If the oceanfront condo market over builds here the way they have in Rosarito, condos will not be a good investment. The zoning restrictions in Ensenada have forced developers to build larger units so prices are about $500,000 in most developments.

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   These are a few of the quality developments in Baja Norte we recommend based on adhering to the above criteria:

 

  The Residences at Playa Blanca

The Residences at Playa Blanca is almost completed and the condo hotel attached to it is well along in the construction process. Units there are continued to sell due to the new lower deposit structure and the fact that people can now go into the building and see the excellent view for themselves.  The developers there have recently hired Constellation, the company that manages very high end resorts in the U.S. and Australia.  Individuals who purchased here have a very strong investment outlook. There are still units available

 

Porto Hussong

 Porto Hussong will be an amazing development, rivaling the best marinas in California and offering a lifestyle not yet seen in Baja Norte. The fractional condos will start in the $250,000 range. The marinas in southern California has a long waiting list for overcrowded and expensive slip availability, not to mention extremely high prices for a condo there. Porto Hussong will offer a very reasonable alternative to that market. This is an investment that will pay off for both the boat owner and the savvy property investor. The developer here has a long history of excellent properties built in Mexico and is a hand on property developer.

 

Plaza del Mar
Plaza del Mar is the only single family residence development located on the Oceanside of the highway with homes under $300,000. These three bedroom and two bathroom homes are one of the best buys on the coast. Located just south of Puerto Nuevo, Plaza del Mar is a well established community and will have new amenities for this development.

        

 

 

         

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.

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