There has never been a better time to invest in real estate in Baja California. As Warren Buffet so famously stated: When there is blood in the streets, BUY.
Prior to 2008, Baja was booming. New condo developments were springing up everywhere. The word was out. Baja was the new retirement destination for American expats. Condo prices were going up at a rate of 20% each year. Spring break was drawing 100,000 American collage kids every year. Times were good.
Then the perfect storm came to Baja. The American real estate bubble burst. Home prices collapsed and Americans who had second homes in Baja were struggling to stay afloat. Then the U.S. government changed the passport requirements for every one crossing the San Diego border. A U.S. issued I.D. was no longer needed to cross back into the U.S. You had to have a passport, and that move destroyed to Spring break market. As if all of that was not enough, over a two week period in 2008, a wave of gang violence occurred and all bets were off.
From that day forward things grew progressively worse. Americans stopped coming to Baja and prices plunged. Condo projects stopped dead in their tracks. Over the next 3 years, the media jumped on the Mexican Violence stories. What no one in the U.S. wanted to admit was that drug violence happens everywhere. Every city in America has a “bad” neighborhood. And in those neighborhoods gang bangers are killing other gang bangers. Mexico is no different. If you are dealing drugs down here it’s likely that sooner or later you are going to get jammed up. When murders happen in Mexico they are just like Murders in the U.S., drug related or domestic violence. As long as the U.S. Government continues with its failed drug policies, people will continue to die.
What has this got to do with real estate investing? Everything.The greatest real estate opportunities happen during tough times. You make your money in real estate not when you sell, but when you buy, and buy right.
Right now is the best time to invest in Real Estate, both in the U.S. and in Mexico. Wineries and Vineyards in Baja can be purchased for 50% off what similar properties sell for in Sonoma Valley, and 80% off of Napa Valley. Condo’s in Rosarito are a steal right now. A beach front condo in Miami or San Diego would cost millions. Not here. The average cost of an ocean front condo in Rosarito is $300,000, and there are some below $100,000.
For professional real estate developers, the deals to be had in Baja are better than Las Vegas. Whether you are looking for summer rentals or undeveloped land, Baja Brokers has the best listings in this market.
Contact us today for a free consultation and tour.