Mexico Real Estate Opportunities: How To Move From Vacation Property to Life-Long Investment

Many people buying Mexico real estate as a vacation property or for retirement like to see their property as an investment; while there is a very strong aspect of lifestyle investment, as well as the large savings enjoyed in comparison to owning a vacation property or retiring in the U.S. or Canada, a true investment should do more than just bring you savings; it should generate an income. With Mexico real estate, this is a relatively straightforward step to take.

With only a slight shift of focus, and a relatively minor short term sacrifice of lifestyle, the same property you bought for vacationing or future retirement can become a first step towards lifelong income from solid real estate investments.

As a buyer  you usually choose your vacation or retirement property based on comfort, convenience, proximity to the beach, shopping, a lake, attractions, activities and fellow expat residents. These same features are attractive to vacationers and other renters; Mexico’s large tourism industry offers many small groups of vacationers and even long term renters. As an owner of vacation/retirement property in Mexico you can consider the following possibilities:

Rent out the property to vacationers. This takes effort. One developer once pointed out that you could have the best hotel in the world, and it would sit there empty if it didn’t have a clear plan for active promotion. Property management companies can help; but you should do your homework, investigate occupancy rates in their area, and evaluate the results from the company. Personal promotion can work if you have access to a network of people with a need to rent a vacation property. Internet social networks and promotion can also be useful. Good rental agencies will use these tools as well. The real estate office through which you bought the property may also offer rental services, and if not should be able to recommend good rental agencies, or even promote the property informally to future clients visiting to make their own purchase.

Use the property only during the low season. If you have decided to take this step towards making your property a real investment, put investment at #1 in importance. This doesn’t mean you have to stop enjoying the property for personal use, but it does mean that you should use plan your use of the property during the regular low season, when the property may be empty anyway. If you are truly dedicated, you may even consider changing plans if a renter turns up.

One couple who successfully carried out this kind of plan stayed in moderately price hotels for their own visits rather than jeopardizing their rentals. Remember that any happy renter is a potential returning renter.Rent out the property long term. Mexico also has a healthy market for long term rentals. While the monthly rate is usually lower, the income is consistent year round, and usually requires less effort to constantly find a new stream of renters. This idea has also proven successful in actual practice in places like Playa del Carmen.

Buy another property. Once you’ve established a steady income from your first property, invest in another, and follow the same process. If you are renting out your properties for vacationers, then owning multiple properties will also give you more options for personal use during off-seasons.

Buy through a mortgage . Acquiring Mexico property through a mortgage directly in Mexico is becoming easier and more common. Using a mortgage directly from a Mexican bank also allows you to leverage the same property you are buying, rather than a property back home. This way you don’t have to wait to generate enough cash from your first property to step into the second. This can help to speed up the process.

Cover monthly payments and expenses rental income. Real life examples have shown that is possible to generate sufficient income from a rental property in Mexico, either for vacationers or long-term, to cover all expenses, such as utilities, repairs and taxes, as well as the monthly loan payments if careful planning is done.Your first property will give you an indication of how much income can be generated and how much is available for use after other expenses. Speaking with mortgage specialist, or even some real estate brokers , will help to gain an estimate of the monthly payments. Some easy math will show you if its possible. If the numbers don’t look like the work out, try tweaking your first rental project to see if you can bring the income up to the necessary level.

Of course, these moves aren’t carried out overnight, but the final result will be that you are the owner of several high-quality vacation properties. One very important plus is that it isn’t necessary to start on a large budget; lower budget properties will generally bring a lower income, but the same concept can be applied with successfully.

Once more than two have been acquired, one can be mostly or even entirely dedicated to personal enjoyment. When retirement arrives, one property will become a retirement property, and the others will continue to provide a constant income substantially boosting financial resources. Since the cost of living is considerably lower in Mexico, especially in large expense areas like health care, using one of the properties for retirement is an ideal move; the funds will go considerably further in Mexico.

Consider changing your Mexico property into a lifelong investment.

Press Release: Santa Barbara At Bajamar:  A Great Place To Retre In Baja

--Two Homes Sold in Santa Barbara in Less than One Month--

The continued sales success at Santa Barbara in Bajamar has proven once again that the Rosarito to Ensenada corridor remains very popular among retirees as one of the top choices for American ex-pats to live and enjoy life. This year is ending with a bang, -- in the past three months, two more cliffside, oceanfront homes have sold for more than $500,000 in the Bajamar community.

Santa Barbara, known for its Mediterranean architecture and spectacular views, has grown to be a popular place for Americans to relocate and retire. Many ex-pats dream of the sandy, white beaches of Baja and having a retirement or second home to call their own.

Richard Arguello, a school principal from Las Vegas, knows firsthand about buying a home at Santa Barbara, where he recently purchased a 3-bedroom oceanview condo to retire in with his wife.

“We always knew we wanted to retire in Baja and, after years of visiting, we chose Bajamar as the place we wanted to be; Santa Barbara has the boutique style and luxury that we were looking for,” stated Arguello. “We decided that now was the right time to buy and the buying process was one of the smoothest that I have experienced.”

There is a misconception that buying real estate in a foreign country can be a confusing process but Mexico’s laws are very similar to the United States. Buyers are finding deals with amenities that one would expect in a luxury residence.  

“In the last six months, many new buyers have come to Bajamar looking for long-term investments and a quality lifestyle, at prices they wouldn’t be able to find if they were in the U.S. in similar beachside communities,” says MaryCarmen Lopez, sales associate at Baja Real Estate Group, which handles the sales for Santa Barbara. “Santa Barbara is now more affordable than ever and Americans are finding that living in Baja provides many of the comforts that they are used to in the U.S. and a beach lifestyle that is out of reach of most Americans were it not for Baja.”

When considering purchasing a home in Mexico, Lopez gives five helpful tips that every buyer must know.

• Prospective buyers are advised to operate using good judgment, just as if they were buying a home in the United States.
• Ask as many questions as you like and make sure to use a reputable real estate company with many years of experience in the Baja area.
• It is strongly recommended to have a real estate attorney, besides the real estate agent to help navigate the transaction processes and to make sure that your’s flows smoothly and safely.
• Use a bank that has a proven record of dealing in international real estate issues.
• All buyers must practice due diligence. Due diligence is not something only real estate professionals should engage in, but the general public as well.

“The process was easy and very similar to buying a home in the U.S.,” stated Arguello. “The brokers, lawyers and staff at Baja Real Estate Group walked me through the entire process and we received incredible service. I had dreamed of being able to retire where I could hear the sound of the ocean and go golfing at my leisure but I never imaged that I could find this for under $300,000.”

With 27-holes of golf with some playing right along the ocean cliffs, tennis and miles of walking, hiking, biking, and jogging trails, Bajamar offers the type of leisure amenities that one would expect at a first-class resort.

Santa Barbara provides four model homes, sized from 1,710 to 3,060 square feet with two and three bedrooms and two to three baths. New prices range from $270,000 to $799,000 for a penthouse. Many of the units feature travertine floors, high-quality finishes and spacious floor plans which open out to oversized balconies with ocean views. You can find more on Santa Barabra at Bajamar or get more information on buying real estate in Mexico. Contact Baja Real Estate group at http://www.bajarealestategroup.net/ for more information..

Welcome to Santa Barbara at Bajamar

A welcome transition of the luxury boutique condo project Santa Barbara at Bajamar is forging ahead. Located in the Gated Golfing Community of Bajamar, Ensenada’s front door.

These unique hacienda styled residences offer the finest quality in architectural appointments at new affordable prices to reflect a changing market. Already planned as a 100 unit project, newly acquired property has been added to insure future Pacific Ocean views and private out door areas. We are proud to invite you to revisit these extraordinary first class residences with spacious areas which open out fully to oversize balconies bringing the sparkling ocean as a backdrop to formal or casual entertaining.

The renowned Hermosillo Development team is excited about all the new possibilities as retires start to return to the idea of living out the rest of their lives in Baja.  They have also added a new team of professionals to join them in the next phase. The Baja Real Estate Group.

They are excited to bring you

THE NEW SANTA BARBARA story.

Let us begin by giving you and your friends the Grand Tour and show you what a tremendous product we have to present.   Learn firsthand why many Americans have chosen Bajamar as their home and why Santa Barbara choose to be a part of this wonder community.

Designed by award winning Danielian & Assoc., 50+ Builder Magazine 2006 Architects of the Year, the architectural design reflects a traditional Santa Barbara style, combining the granduer of traditional spanish missions with the luxury of early California mansions.

The 104 condominium and penthouse residencies are set in 4 buildings with thoughtfully designed exterior and interior details of this exquisite architectural style.

Now is your opportunity to invest in your second, third or retirement home at the largest and most elegant development in all of Mexico. Just a safe 45 minute drive south of the San Diego/Mexico International border Santa Barbara At Bajamar awaits your presence. Built on the rolling hills and bluffs overlooking the magnificently rocky coastline of the blue Pacific Oceanfront, this 1800 acre private reserve is home to the 104 luxury unit project... and the best part is that you can move in Now!!!

Santa Barbara At Bajamar offers four luxurious models in the first of our four phase condominium project located on the golf course and the oceanfront for your vacation or retirement home. With 27 holes of golf and miles of walking, hiking, biking and jogging trails this perfect paradise can now be your countryclub home in Baja.  

Our beautiful model homes start at our 1930 sq ft “Santa Ynez” 2 bedroom/2bath residence for only $270,000 all the way up to our 4150 sq ft “La Cumbre” Penthouse for $799,000!  We are offering great incentives now! Call us for an appointment to view.

Why not join us now.... You've earned it....Live and play in Paradise at a fraction of the cost of US ocean view homes.

Annual property taxes are estimated under $200 per year!

Please browse our website for listings, reports and important local real estate information.

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Santa Barbara Sales by Baja Real Estate Group with Mexico Real Estate Services.