ILAL Stock Forecast

International Land Alliance has been at the forefront of real estate development in Baja, California. We announced our initial stock offering about a year ago, and today we are in a great spot.

The Taglich Brothers research company has projected our stock target to be $1.25. At the time of writing this article, our stock is $.38, which would make you multiply your initial investment by three. Now, they classify us as a speculative buy, but we would like to explain to you our position and why we believe our company is a good investment. Visit our investor relations page for more info.

Property in Mexico

We announced that we made six land acquisition deals in the Valle Divino development alone. The residential lots in Valle Divino start at $45,000, the complete 1BR/1BA solar-powered homes start at $119,000, and 2BR/2BA start at $139,000.

Our initial plans include 187 homes, and in total, the development will contain 650 homesites which will mean $80 million in gross sales.  This number only represents our holding in Valle Divino, and does not represent our holding in San Felipe, Bajamar, or Rancho Costa Verde.

As a real estate investor, you may wonder if our homes will accrue in value. We believe they will, and there are several reasons why we are confident in this.

What are Prices now, and where are they projected to go?

As we discussed earlier, a two-bedroom home starts at $139,000 in Valle Divino. Valle Divino is located just north of Ensenada, which is about 45 minutes away from San Diego. Alpine is about as far away from San Diego, and you would be hard pressed to find a luxury home at that price in Alpine, or anywhere in California for that matter.

We understand that buying property in other countries comes with its own set of headaches, and Mexico may not be your first choice for a second home. Still, we believe there are plenty of signs that show why investment in Mexico is a sound decision.

Is Investing in Mexican Real Estate a Good Idea?

American home buyers are watching the prices of houses skyrocket. Now, even an average home in California can easily cost you more than a million dollars; for most Americans, that number is unattainable.

In Mexico’s largest city, Mexico City, the average home in the city’s center is $3,000 per square meter or about $300,000. Again, this is the middle of Mexico’s financial capital. In California, the average home price is almost $900,000.

Just because it’s cheap doesn’t mean it will give you a guaranteed return, but there are things you can look at in Mexico’s economy that point to an eventual return.  Here are a couple of promising trends.

GDP Growth

Mexico is an up-and-coming nation. They have seen steady GDP growth for a little over ten years now, and we do not expect that trend to stop.

Population Growth

The population in Mexico is growing, but most importantly, their middle class is ballooning. As of 2020, Mexico’s middle class makes up half of all households in Mexico. This means more Mexican citizens will be looking to buy a home. Much like America, we are seeing the population move more and more to the suburbs and rural areas, which is why our properties may hold future value.

Of Mexican citizens polled, 82% expect to buy a home in the future. As internet access gives more people the ability to work from home, cheaper homes outside city centers will increase in value.

Investment in the Coasts

Much of Mexico’s interior has seen the majority of infrastructural investment. Cities located in the interior, like Mexico City, have historically created much of the economy.

Lately, however, we have seen more investment in Mexico’s coastal and port cities.  Cities like Cancun, Cabo, and Acapulco have been vacation hubs for some time, but now cities like Tulum and Puerto Vallarta are quickly growing in popularity.

Surprisingly Tijuana has seen the most significant jump in real estate prices at 10.51%.

What are My Options?

More than 500,000 Americans own homes in Mexico, and we only see this number rising as more and more Americans look south to buy a home.

International Land Alliance has several holdings in a couple of key coastal cities in northern Baja, California. Cities and towns, we believe, will see large jumps in property value. Here are a few locations you can invest in now.

Valle Divino

Valle Divino, as discussed earlier, is located in Ensenada, one of Mexico’s largest port cities, and will see a flurry of investment as it becomes more well known. Just 45 minutes away from San Diego, this real estate development is tucked away in Valle de Guadalupe, which is Mexico’s most famous wine country.

Bajamar Ocean Front Resort

This is our second land development in Ensenada. This one resides steps away from the Pacific Ocean and overlooks Ensenada’s best golf courses.

Both of these developments put you close enough to San Diego that you can come and go as you please. If you work in downtown San Diego, the drive will be just as long as if you were driving from Alpine.

Oasis Park Resort

Located in San Felipe, on the east side of Baja, this development resides in a sleepy surfing town on the Colorado River Delta. San Felipe is a town that is yet to receive as much publicity, but given its proximity to several beautiful national parks, it won’t stay that way for long.

Rancho Costa Verde

Rancho Cost Verde is one of the newest land developments. It’s going to be a considerable retirement and second home community.

Final Thoughts

We believe that investing in Mexican real estate will bring you a great REI, and we do not make that assumption lightly. The more these trends we discussed earlier tick up, the more valuable property becomes.

As we build more developments, so too does the demand for our homes. Whether or not you are looking for an investment or just want to find a place to retire, we have what you’re looking for.