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Investing And Buying In Baja

Two October conferences in Baja will showcase real estate development and ownership opportunities

Writing about Mexican real estate is guaranteed to elicit questions from readers, but that's hardly surprising. Since San Diego Metropolitan is the largest-circulation business publication in the San Diego-Tijuana region, it stands to reason that a fair share of its readers are interested in both buying and investigating the potential for investing in Baja, provided it's safe. Readers we hear from demonstrate an understanding that risk is an inherent part of investment.

The most asked question is is it safe? The answer has to do with Mexico's laws, business climate, costs of land and construction, land use designations, environmental requirements and other details that can speed, slow or stop a project. Real estate developers who want to get into the action are most interested in this information.

Those seeking to buy a second home or a primary residence in Baja have a different set of questions, but they too are rooted in the is it safe concerns. While we have dealt in detail with various concerns in the past, the bottom line is yes, it is safe provided guidelines are followed.

The keys steps to follow are:

• Get an attorney who will work with the notario or is himself a notario.
• Make sure there is title insurance provided for the specific property being purchased.
• Do not give an upfront deposit to an individual real estate agent/broker/developer.
• Place funds with an escrow company that has fiduciary responsibilities. (Title company or bank.)
• Instruct that no funds are to be released until title to property has been transferred.
• Do whatever else your attorney deems necessary to protect your interest.

Ample Housing Opportunities

From Tijuana to Playas de Tijuana to the southern fringes of Rosarito are no less than 11 housing and condo developments being marketed to buyers from the United States. Tijuana has the Medina Mediterranea; and Playas four developments, Residencial la Cuspide, Playas Diamante, Entorno la Perla and Cimas del Parque. Between Playas and Rosarito are five projects, Real del Mar with a great golf course, Brisas del Mar, The Residences, Residencial San Marino and Rancho del Mar. In Rosarito proper Mision de Rosarito is available. Still more projects are available as you head south along the coast highway to Ensenada.

For those wanting to learn more about these projects, the good news is that the developers banded to create a three-day trade show, Investing in Baja’s Oceanfront. Participants in the event include 30 Baja developers. Also in attendance will be title insurance companies, financial companies from both Mexico and the United States specializing in credit financing and real estate agents. The event runs from Oct. 7 to Oct. 9 at the Rosarito Hotel in Rosarito.

A separate conference to be held for potential investors will bring together some of the most prominent names in Mexican real estate development from the U.S., Canada and Mexico. This two-day event is sponsored by the Baja California Secretary of Tourism taking place Oct. 6-7 at the Gran Hotel de Tijuana in Tijuana, one of the city’s two highest towers.

The program's objective is to introduce the possibilities of investment along the Pacific Ocean and Sea of Cortes coastal zones running the entire length of the Baja California Peninsula. As readers of this column may recollect, the project formerly known as Escalera Nautica, now called Mar de Cortes, offers some great potential for development.

Elsewhere in Baja, substantial development already is taking place and much more is in the planning stages. The Bay of Loreto in Baja California Sur where Arizona and Canadian investors have taken the lead already is registering several hundred million dollars in sales. Investment in the area is expected to reach $2 billion. San Felipe in Baja California is likewise undergoing tremendous development incorporating several thousand acres attracting Arizona buyers.

These developers along with numerous others will be at the conference allowing for networking and hearing from the horse's mouth. Attorneys, bankers and government officials will be providing information and presenting the various opportunities which the government has identified. I'm even participating in a workshop called The Culture and Protocol for Doing Business in Mexico.

Since the investment opportunities to be presented are located along coastal waters they fall into the forbidden zone category wherein fee simple title is not available to individual property buyers. However, in 1992, Mexico approved changes to the foreign investment laws, that allow a 100 percent foreign owned Mexican corporation to own property outright, provided it is for visitor related or commercial development. This change opened a new world of investment opportunities that is in turn driving the heavy investment in real estate development today.

More information about the conference can be found at DiscoverBajaCalifornia.com or by contacting Andres Lopez at anlopez@baja.gob.mx. October is going to be one busy month — hopefully with great prospects for the future of our binational region.

Patrick Osio Jr. can be reached at patrick@transbordercommunications.com