Types of Real Estate Investments in Baja
Real estate is currently seeing incredible demand in the states, which is leading many Americans to look outside their home state, and even their home country to find real estate opportunities. CNBC reported on many Americans’ departure to Mexico.
Mexico is seeing an influx of American investment as ex-pats move more and more down south. Mexico and Baja California, more specifically, seem to have the best potential for return on investment as the dollar goes further in Mexico.
Whether you are looking to buy your first house or a home away from home, Baja California has something you can Invest in. It depends on what sort of investment you are looking to make, of course, and below we will discuss all of your options and the pros and cons of each, and why you should buy Baja real estate.
Things to know
Americans have to jump through a few extra hoops in order to buy property in Mexico, especially if you’re looking to purchase ejido land. Ejido land is restricted land for foreigners, and it encompasses any land 100 km from any land border and 50 km from any ocean.
That doesn’t mean it’s impossible to buy oceanfront property, though. You just need to set up a fideicomiso, which is essentially a land trust with a Mexican citizen. This may seem like a difficult hurdle, but we assure you that it is effortless to clear, and we will help you along every step of the way, visit us and ask us any questions you may have. Now let’s talk about what sort of real estate you want to invest in.
This is a real estate investor contract template and will be a helpful tool for you and your realtor when purchasing your new home.
Hotels
The first thing you think of when you think of Baja California is probably their hotels, and for a good reason. Baja is home to some of the world’s most fantastic resorts and hotels. When deciding where to buy property, we recommend visiting first.
Hotels in Tecate, Mexico, are some undervalued places to stay. Just on the outside of Mexico’s wine triangle, this area makes an excellent getaway for a drunken weekend.
San Felipe is about a 45-minute drive from San Diego, and it has some great resorts, but we think there is one in particular worth talking about.
Sandollar Hotel San Felipe
Sandollar is a beachfront hotel with an ocean view and a golf course. They are home to traditional hotel rooms as well as condos and full houses, so you can bring your whole family when visiting San Felipe.
Timeshares
Timeshares are an excellent option for people who do not want to commit to owning and maintaining a home all year round. Sharing the price of a property with someone else and having a place to vacation is incredibly valuable. The problem is you usually only get allotted a certain amount of time per year, so you can’t visit your property whenever you’d like.
Residential
If you are looking to buy a home that you want access to all year round, then you are probably looking at real estate developments. Most developments have move-in-ready homes. All you have to do is go through the fideicomiso process we discussed earlier. Homes for sale make up a fraction of our total holdings, though.
Raw Land
If you have a picture in your mind of what you want your home to look like, buying a plot of land and building on it is the best option. Construction costs can vary, but you get to create your dream home. The only downside is that you won’t be able to move into your home until construction is complete, but construction can occur while the fideicomiso process goes through.
Location Location Location
Once you’ve decided what time of real estate you want to invest in, now you get to determine where you want it. Baja California Sur has Cabo San Lucas, but not much more than that.
Statista has a great list of cities and how much you will be spending, keep in mind the USD goes much further down in Mexico. Places like Ensenada, Tecate, and San Felipe are hidden gems that are just south of the border that will get you a fantastic home for an affordable price. International Land Alliance has two great land developments in Ensenada alone.
Rancho el Divino
One of Ensenada’s best-kept secrets is Valle de Guadalupe. The valley said to be the Napa Valley of Mexico, sits just northeast of Ensenada’s city center and is home to some of Mexico’s best wine. Rancho El Divino puts you right in the middle of wine country, but still with an ocean view.
Plaza at Bajamar
Plaza at Bajamar is our beachfront development in Ensenada. It is close to many other resorts and several impressive golf courses. Buying a vacation home, or permanent home, in Ensenada is a smart move because it still puts you only 30 minutes away from the border and 45 minutes away from downtown San Diego.
Oasis Park Resort
Nestled in the town of San Felipe, this beachfront resort looks out over the Sea of Cortez on the eastern side of the peninsula. It’s a quiet resort in a sleepy surfing village only a short drive from some of Mexico’s best national parks.
Rancho Costa Verde
Rancho Costa Verde is our newest holding, with plenty of new listings, which gives its residents a sustainable and affordable lifestyle with the promise of a self-reliant culture among the community.
Baja Real Estate
If you are looking to retire cheaply, find a place for your new vacation home, or find a place to lay down your roots close to home, Baja California has plenty of exciting options for Americans.
As prices of homes in America rise, we need a safe and cheaper alternative. I hope after reading this, you will consider investing in Baja. We would love to have you.