OT: Baja Condo Projects

[beselfish]

I was down at a couple of my favorite surf spots in Baja this weekend and a couple coworkers and I stopped at a few condo tower sales offices on the way back. We went into a few and talked to a several families (Canadians, a couple Americans, and some retired Australians). The downturn obviously hit vacation properties there pretty substantially, given the large number of distress sales and markdowns. The build quality and overall maintenance and appearance were first class however. We saw several units all with top of the line finishes and exquisite views all around 200k or less. All had parking garages, security, and lush grounds. Many sellers and builders are self financing as well (stays off credit reports usually).

I’m curious if any Piggs have experience with Baja condos. The Canadian couple we spoke to said it was relatively easy for them to set up a bank trust and establish title insurance. And their property taxes are $200 a year, HOAs about $200 a month. It looks like the markdowns are 50% or more at many of the nicest, newer places. With the weakening dollar and the bad PR Mexico is getting I’ve been curious if now even the contrarians out there think good quality coastal Baja real estate is a good medium to long term buy.

[UCGal]

I think Davelj has some familiarity with these condo projects…. IIRC he was considering purchasing one, but it hadn’t penciled out yet.

[UCGal]

I think Davelj has some familiarity with these condo projects…. IIRC he was considering purchasing one, but it hadn’t penciled out yet.

[UCGal]

I think Davelj has some familiarity with these condo projects…. IIRC he was considering purchasing one, but it hadn’t penciled out yet.

[UCGal]

I think Davelj has some familiarity with these condo projects…. IIRC he was considering purchasing one, but it hadn’t penciled out yet.

[UCGal]

I think Davelj has some familiarity with these condo projects…. IIRC he was considering purchasing one, but it hadn’t penciled out yet.

[Anonymous]

Most condo complexes I see between TJ and Ensenada are half built and/or empty. Wouldn’t want anything to do with any of those, as the owners and/or HOAs go broke the place will go into dis-repair and the residents will get stuck footing the bill.

[Anonymous]

Most condo complexes I see between TJ and Ensenada are half built and/or empty. Wouldn’t want anything to do with any of those, as the owners and/or HOAs go broke the place will go into dis-repair and the residents will get stuck footing the bill.

[Anonymous]

Most condo complexes I see between TJ and Ensenada are half built and/or empty. Wouldn’t want anything to do with any of those, as the owners and/or HOAs go broke the place will go into dis-repair and the residents will get stuck footing the bill.

[Anonymous]

Most condo complexes I see between TJ and Ensenada are half built and/or empty. Wouldn’t want anything to do with any of those, as the owners and/or HOAs go broke the place will go into dis-repair and the residents will get stuck footing the bill.

[Anonymous]

Most condo complexes I see between TJ and Ensenada are half built and/or empty. Wouldn’t want anything to do with any of those, as the owners and/or HOAs go broke the place will go into dis-repair and the residents will get stuck footing the bill.

[davelj]

It’s a real mixed bag down there, but most of the bag is not so good. As pointed out above, there are lots of half-completed and half-occupied complexes. But there are also plenty of fully-occupied projects as well, but you do have to be very careful.

Generally, prices have come down about 40%-50% in most places. But there haven’t been many actual foreclosures because most folks put down at least 30% when they bought – because that’s what was required when getting financed down there – and there were a lot of all-cash buyers. The typical buyer took out a $100K line against their house in California or Arizona and used it for a down payment on a $275K condo… and then defaulted on the line against the house but hung onto the condo.

Part of the problem, of course, with knowing exactly what’s going on down in Baja is that there’s no official MLS and the public records aren’t digitalized or readily available. Also, it’s very complicated to foreclose on a home in Mexico. So, it’s not easy to know exactly what’s going on down there.

My advice – worth exactly what you’re paying for it – is only buy if (1) you plan on owning it for at least 15 years, and (2) you’re in a mostly full complex (for HOA reasons). I don’t see much price appreciation down there for many years – Baja got way way overbuilt.

[davelj]

It’s a real mixed bag down there, but most of the bag is not so good. As pointed out above, there are lots of half-completed and half-occupied complexes. But there are also plenty of fully-occupied projects as well, but you do have to be very careful.

Generally, prices have come down about 40%-50% in most places. But there haven’t been many actual foreclosures because most folks put down at least 30% when they bought – because that’s what was required when getting financed down there – and there were a lot of all-cash buyers. The typical buyer took out a $100K line against their house in California or Arizona and used it for a down payment on a $275K condo… and then defaulted on the line against the house but hung onto the condo.

Part of the problem, of course, with knowing exactly what’s going on down in Baja is that there’s no official MLS and the public records aren’t digitalized or readily available. Also, it’s very complicated to foreclose on a home in Mexico. So, it’s not easy to know exactly what’s going on down there.

My advice – worth exactly what you’re paying for it – is only buy if (1) you plan on owning it for at least 15 years, and (2) you’re in a mostly full complex (for HOA reasons). I don’t see much price appreciation down there for many years – Baja got way way overbuilt.

[davelj]

It’s a real mixed bag down there, but most of the bag is not so good. As pointed out above, there are lots of half-completed and half-occupied complexes. But there are also plenty of fully-occupied projects as well, but you do have to be very careful.

Generally, prices have come down about 40%-50% in most places. But there haven’t been many actual foreclosures because most folks put down at least 30% when they bought – because that’s what was required when getting financed down there – and there were a lot of all-cash buyers. The typical buyer took out a $100K line against their house in California or Arizona and used it for a down payment on a $275K condo… and then defaulted on the line against the house but hung onto the condo.

Part of the problem, of course, with knowing exactly what’s going on down in Baja is that there’s no official MLS and the public records aren’t digitalized or readily available. Also, it’s very complicated to foreclose on a home in Mexico. So, it’s not easy to know exactly what’s going on down there.

My advice – worth exactly what you’re paying for it – is only buy if (1) you plan on owning it for at least 15 years, and (2) you’re in a mostly full complex (for HOA reasons). I don’t see much price appreciation down there for many years – Baja got way way overbuilt.

[davelj]

It’s a real mixed bag down there, but most of the bag is not so good. As pointed out above, there are lots of half-completed and half-occupied complexes. But there are also plenty of fully-occupied projects as well, but you do have to be very careful.

Generally, prices have come down about 40%-50% in most places. But there haven’t been many actual foreclosures because most folks put down at least 30% when they bought – because that’s what was required when getting financed down there – and there were a lot of all-cash buyers. The typical buyer took out a $100K line against their house in California or Arizona and used it for a down payment on a $275K condo… and then defaulted on the line against the house but hung onto the condo.

Part of the problem, of course, with knowing exactly what’s going on down in Baja is that there’s no official MLS and the public records aren’t digitalized or readily available. Also, it’s very complicated to foreclose on a home in Mexico. So, it’s not easy to know exactly what’s going on down there.

My advice – worth exactly what you’re paying for it – is only buy if (1) you plan on owning it for at least 15 years, and (2) you’re in a mostly full complex (for HOA reasons). I don’t see much price appreciation down there for many years – Baja got way way overbuilt.

[Author]

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