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Gringos are flocking south of the border, some to visit and some to retire in Baja California.
Lured by affordable housing with beach front vistas, quaint colonial backdrops, very low property
taxes and a historic construction boom, thousands of gringos are snapping up vacation homes,
retirement villas and investment properties. The interest in time share, rentals, lease and
purchase, has created a prolific market. It’s important to know that Mexico real estate laws
are not the same as in the USA. Yes, you’d be surprised –some gringos have asked about VA
loans (duh!) and 30 year mortgages. Here CASH IS KING. You pay a lot up front in cash and
pay a little in a short period of time by agreement. If you are a senior, a 30-year loan
does not make much sense in Mexico! “Senor, we don’t think you will live for another 30
years!” if you are 75 years old, for example. Further, the constitution of the United Mexican States way back in
1917 established a “restricted zone,” from the shore line to 100 km inland, which comprises almost half of Mexico’s
territory and the entire Baja peninsula. This restricts the purchase of property by foreigners. Only Mexicans,
by birth of naturalization, can legally own beachfront properties in this zone.
Mexico’s beaches are public land, known as the Federal Zone. Twenty meters from main high tide is the precise measurement for the public lands that adjoin waterways: oceans, rivers, lakes, estuaries and streams. If you have a beach house, you must construct it above the twenty meter mark. The government can grant a special concession for commercial use of said land if the federal zone agency deems it is in the best socioeconomic interests of the community Examples are marinas, hotels, commercial shipping, etc. A major criterion for granting commercial use of the federal zone is employment and the resultant economic benefits. But wait! You really can buy beachfront property. Enter the Bank Trust. Foreigners can execute real estate trust contracts called Fideicomisos with a duly authorized Mexican banking institution. The bank holds the title in trust and the foreigner has “beneficiary” rights. This procedure is aka a “de facto real estate property system.” Under this system, foreigners can enjoy beneficiary rights for 50 years with the right to renew for another 50 years. There is no way I can cover everything about this extremely important and complex matter of Mexican real estate which often involves large sums of money, so I’ll provide you with information re: where you can find answers. I highly recommend that foreigners attend a real estate seminar where you can learn about Mexican real Estate Laws and ask questions. There are two such seminars that I know of in Rosarito Beach. One is presented by Remax, a real estate company owned and operated by Gustavo Torres. Presentations are held every Saturday morning at 9:30 at their office on the corner of Benito Juarez Boulevard and the entrance to the Rosarito Beach hotel. You can contact Remax at 100-2076 if dialing from Rosarito Beach of 011-52-661-100-2076 or 619-270-5446 if dialing from the USA. Seminars are also presented by Baja4u, a real estate company owned and operated by Roberta Giesea. Roberta has written a number of articles about real estate for the Baja Times. Go to www.Bajatimes.com and click on Past Issues. To inquire about when and where Roberta’s next seminar will be you can contact her at 612-2187 if you are calling from Rosarito Beach or 011-52-661-612-2187 if you are calling from the USA. |