OT – Where would you live if not in USA?

[davelj]

[quote=CONCHO][quote=davelj]I’m pretty set on buying a place in Playas (the beach area of Tijuana) in the next two years – probably in Puesta del Sol. I don’t spend enough time in San Diego to justify paying California taxes anymore, but I’ll keep my condos here.[/quote]

Nice places – I was looking on craigslist and I’d guess you could rent that for $600-750/mo pretty easily. Not a bad return if the price is actually just $100K. Something like that in Encinitas would be 8 times the price.

It would be interesting to see a historical comparison of property prices on both sides of the border. Things are rough in TJ these days, but is that going to last forever?[/quote]

I would say that the coastal strip between Playas and Puerto Nuevo got even more overbuilt than anywhere in California – it’s probably more comparable to Phoenix or Las Vegas in that regard. There are a few projects still under construction, but there are also several that got stopped mid-build. If you drive down the carretera you’ll see several large condo projects that got stopped mid-stream and nothing’s been done to the structure in a couple of years – they’re just empty shells. The only good news is that most folks who bought down there either paid all cash or put at least 30% down (and most of the condos aren’t that expensive relative to CA prices). And the builders weren’t as leveraged as they are here either. So while there are a TON of units for sale there haven’t been many actual foreclosures. But, it’s ugly.

One of the problems is there’s no really reliable MLS data down there. I don’t think there will be meaningful building in that neck of the woods for at least five years… and maybe longer.

My rule of thumb is simple: If you’re going to buy a new-ish condo or townhome down there, don’t pay more than $120/sq ft.

And you better plan on using it a lot and/or having a tax angle, otherwise you’re going to have buyer’s remorse. Just my 2 cents.

[jpinpb]

Am I missing something? I thought you can’t buy in Mexico, only lease.

[jpinpb]

Am I missing something? I thought you can’t buy in Mexico, only lease.

[jpinpb]

Am I missing something? I thought you can’t buy in Mexico, only lease.

[jpinpb]

Am I missing something? I thought you can’t buy in Mexico, only lease.

[jpinpb]

Am I missing something? I thought you can’t buy in Mexico, only lease.

[davelj]

[quote=jpinpb]Am I missing something? I thought you can’t buy in Mexico, only lease.[/quote]

There was a time a couple of decades back when non-Mexicans couldn’t own real estate within the “Restricted Zone,” which was 100km from any border and 50km from any coastline (so the most desirable parts of Baja were off limits). About 15+ years back (if memory serves), however, Mexico allowed the development of a “Bank Trust,” or “fideicomiso,” which allows for foreign ownership anywhere in Mexico. Essentially, the Trust owns the property and you control the Trust… so you own it (the costs of setting up the Trust typically amount to 1%-1.5% of the purchase price). The development of these bank trusts is what has fueled the home building in the restricted zones, as it’s largely Americans who are buying the homes.

[davelj]

[quote=jpinpb]Am I missing something? I thought you can’t buy in Mexico, only lease.[/quote]

There was a time a couple of decades back when non-Mexicans couldn’t own real estate within the “Restricted Zone,” which was 100km from any border and 50km from any coastline (so the most desirable parts of Baja were off limits). About 15+ years back (if memory serves), however, Mexico allowed the development of a “Bank Trust,” or “fideicomiso,” which allows for foreign ownership anywhere in Mexico. Essentially, the Trust owns the property and you control the Trust… so you own it (the costs of setting up the Trust typically amount to 1%-1.5% of the purchase price). The development of these bank trusts is what has fueled the home building in the restricted zones, as it’s largely Americans who are buying the homes.

[davelj]

[quote=jpinpb]Am I missing something? I thought you can’t buy in Mexico, only lease.[/quote]

There was a time a couple of decades back when non-Mexicans couldn’t own real estate within the “Restricted Zone,” which was 100km from any border and 50km from any coastline (so the most desirable parts of Baja were off limits). About 15+ years back (if memory serves), however, Mexico allowed the development of a “Bank Trust,” or “fideicomiso,” which allows for foreign ownership anywhere in Mexico. Essentially, the Trust owns the property and you control the Trust… so you own it (the costs of setting up the Trust typically amount to 1%-1.5% of the purchase price). The development of these bank trusts is what has fueled the home building in the restricted zones, as it’s largely Americans who are buying the homes.

[davelj]

[quote=jpinpb]Am I missing something? I thought you can’t buy in Mexico, only lease.[/quote]

There was a time a couple of decades back when non-Mexicans couldn’t own real estate within the “Restricted Zone,” which was 100km from any border and 50km from any coastline (so the most desirable parts of Baja were off limits). About 15+ years back (if memory serves), however, Mexico allowed the development of a “Bank Trust,” or “fideicomiso,” which allows for foreign ownership anywhere in Mexico. Essentially, the Trust owns the property and you control the Trust… so you own it (the costs of setting up the Trust typically amount to 1%-1.5% of the purchase price). The development of these bank trusts is what has fueled the home building in the restricted zones, as it’s largely Americans who are buying the homes.

[davelj]

[quote=jpinpb]Am I missing something? I thought you can’t buy in Mexico, only lease.[/quote]

There was a time a couple of decades back when non-Mexicans couldn’t own real estate within the “Restricted Zone,” which was 100km from any border and 50km from any coastline (so the most desirable parts of Baja were off limits). About 15+ years back (if memory serves), however, Mexico allowed the development of a “Bank Trust,” or “fideicomiso,” which allows for foreign ownership anywhere in Mexico. Essentially, the Trust owns the property and you control the Trust… so you own it (the costs of setting up the Trust typically amount to 1%-1.5% of the purchase price). The development of these bank trusts is what has fueled the home building in the restricted zones, as it’s largely Americans who are buying the homes.

[barnaby33]

I’d be careful about that davelj. My parents have a fidocomiso. The bank owns the land. You get essentially a 50 year lease with at least one guaranteed renewal, but I still do not believe you own the land. Now if its 100 years I think its kind of splitting hairs, but to a lot of people there is a difference.
Josh

[barnaby33]

I’d be careful about that davelj. My parents have a fidocomiso. The bank owns the land. You get essentially a 50 year lease with at least one guaranteed renewal, but I still do not believe you own the land. Now if its 100 years I think its kind of splitting hairs, but to a lot of people there is a difference.
Josh

[barnaby33]

I’d be careful about that davelj. My parents have a fidocomiso. The bank owns the land. You get essentially a 50 year lease with at least one guaranteed renewal, but I still do not believe you own the land. Now if its 100 years I think its kind of splitting hairs, but to a lot of people there is a difference.
Josh

[barnaby33]

I’d be careful about that davelj. My parents have a fidocomiso. The bank owns the land. You get essentially a 50 year lease with at least one guaranteed renewal, but I still do not believe you own the land. Now if its 100 years I think its kind of splitting hairs, but to a lot of people there is a difference.
Josh

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