Key Baja real estate investment drivers:

1. Increasing Demand = Growing Market Baby Boomers are retiring at a rate of one every eight seconds. Most of them are affluent, accustomed to traveling and are looking to retire in a certain amount of luxury and style, thought they can’t 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. You’re in Rosarito Beach just 15 minutes over the border. More than 450,000 Americans now own in Baja and more are buying every day.

• Lower property taxes & lower cost of living in Mexico makes dollars earned go further
• 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 you’re easily looking at a $3,000,000+ investment. Buying in Baja is a no-brainer- it’s the same ocean, the same view, for pennies on the dollar. This won’t 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.

3. U.S. Title Companies are now Insuring properties in Mexico purchased by U.S. Citizens so your investment is safe and more importantly this safety has helped other Americans comfortably buy. Title insurance has helped fuel the explosive growth in Baja.

4. Availability of U.S. Financing – Now buyers don’t need 100% cash in hand in order to buy. This has opened up the market to a much broader market of buyers allowing 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. He’s 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, Baja is now reaching critical momentum.