Baja is once again being looked upon as a good place for real estate investing. Those knowing the safety of Baja coastal areas are very optimistic about investing in Baja real estate. As a real estate investment destination, Baja is an excellent option for both the professional investor looking to grow his equity or cash flow and for the investor/user looking to buy and enjoy an oceanfront or oceanview property, knowing that they are buying at a 10 year low.
The fact is, if you have considered investing in California, Nevada, or Florida, you will find even more value in Baja. This is true for two specific reasons.
First, the U.S. media would have you believe that violence in isolated areas of Mexico - Tijuana or Ciudad Juarez, for example - makes the whole country dangerous. These exaggerated reports of violence keep away many vacation renters who would have been part of the buyer pool. Fewer vacation renters translate to fewer buyers, thus affecting the length of time homes are on the market and therefore, lowering the prices as well.
Those who are more informed about the situation in Baja know that inner-city Tijuana, for example, is far from the beaches of Rosarito and even farther from many of the Baja beach front communities that U.S. citizens are residing in during their golden years. Blog posts by non-Mexicans owning/living in Baja prove just how out of touch the U.S. media giants are with the easy-going lifestyle of these coastal communities. Ironically, these alarmist reports actually benefit those looking to invest in Baja real estate.
The second reason investing in Baja has become valuable to investors is because of the economy as a whole. The shrinking money supply in the U.S. and particularly in California affects Baja as well. As real estate prices and employment deflate in the U.S., real estate prices in Baja also go down.
Some investors who cannot get state-side loans for their next investment have found that there are some very attractive seller-financing opportunities here in Baja. At the time of this writing, about 30% of sellers are willing to offer some sort of financing. This has played in nicely with those investors who want to buy and enjoy their Baja real estate now, but don’t have the cash to pay in full.
If you’d like to learn more, you can check out the rest of our Baja real estate articles, frequently asked questions, and information about pricing Baja real estate.