Buying in Baja

2007-10-15 15:14:29.0 Administrator2: Hi all, and welcome to the Real Estate Chat with Diane Wedner and Diane Gibbs!

2007-10-15 15:14:45.0 Administrator2: Please feel free to send your questions for the Dianes!

2007-10-15 15:16:57.0 Flotown: Dianes, how are sales holding up south of the border?

2007-10-15 15:19:46.0 Diane Wedner: Hi Flotown. I hear that sales have slowed, but interest in Baja--especially Northern Baja--is still pretty high. Prices range from $250,000 for a condo to $1.3 million. Sales agents aren’t seeing a big slowdown as of yet.

2007-10-15 15:20:33.0 bobby: Question for Diane: Do you have an office in or near LA?

2007-10-15 15:21:51.0 Diane Wedner: The Los Angeles Times office is in downtown L.A. Diane Gibbs’ office--Realy Executives--is in Rosarito Beach and in Ensenada.

2007-10-15 15:22:06.0 Ruth Eaton: Do you feel prices in Baja are going to drop in the next 6 to 12 months?

2007-10-15 15:23:07.0 Diane Wedner: Diane Gibbs says prices have stabilized so far. It’s hard to predict the future. Wish we had a crystal ball!

2007-10-15 15:23:11.0 Lance: Hello Dianes!. In a nutshell, could you describe the state of affaris in Baja today. For example: what major items should Americans need to know Before diving in? And, do real estate rules that govern purchases in Baja differ from other states in Mexico.

2007-10-15 15:25:13.0 Nick: hi

2007-10-15 15:25:35.0 Administrator2: Hi Nick! Got a Baja real estate question for the Dianes?

2007-10-15 15:25:53.0 Diane Wedner: The same rules apply in Baja as they do all along the thousands of miles of Mexico. In the interior states, you can own outright, without the bank trust. Along the coasts, however, the rules I described in the stay apply: you must make the purchase through a bank trust, or fideicomiso. And make absolutely sure you make your purchase through an agent and an attorney and notary public.

2007-10-15 15:27:34.0 Nick: Is the Baja real estate in turmoil like the RE in the US?

2007-10-15 15:29:00.0 Diane Wedner: Diane Gibbs says: yes, we’re seeing some of the same turmoil, but they’re not having the mortgage turmoil--most people make purchases with cash. The turmoil we’re seeing is from California buyers who are not wanting to cash out some equity. So the market is slowing a bit because of that.

2007-10-15 15:29:01.0 maggie casanave: yes, about Punta Piedra, Puerto Nuevo

2007-10-15 15:29:02.0 maggie casanave: Can you buy from a private owner, and will it be lease only?

2007-10-15 15:29:25.0 maggie casanave: Interested in Puerto Nuevo and Punto Estero, lease only?

2007-10-15 15:30:49.0 maggie casanave: I have questions but get no answers, see the question on the screen, my first time in a chat talk

2007-10-15 15:31:00.0 Administrator2: Hi Maggie--

2007-10-15 15:31:19.0 Administrator2: Diane Wedner and Diane Gibbs are typing their response to your question now. Thank you!

2007-10-15 15:31:22.0 Diane Wedner: You can buy in Punta Piedra from a private owner--it’s a subdivision where you can own with a bank trust. If you’re Mexican, you can have direct title. Puerto Nuevo is an area, not a subdivision. There--some is leased land and some is deeded. Depends on where in Puerto Nuevo you’re looking. This is from Diane Gibbs.

2007-10-15 15:31:33.0 Administrator2: What is the importance of using a notary public when purchasing in Mexico?

2007-10-15 15:33:14.0 Diane Wedner: To get deeded property, the purchase is required to go through a notary. YOu cannot get the property without a notary. You can find a notary through a real estate agent--he or she will find one, based on where the property is located. Some give better service than others. You can also find one in the phone book. Best to get a recommendation.

2007-10-15 15:33:17.0 smatcov: do you own the property in baja or it is a long term lease

2007-10-15 15:35:11.0 Diane Wedner: You can own it, or you can get a lease. But the main way to get property is through the bank trust, or it’s called the Fideicomoso. The leases are for 9 years and 11 months, or less.

2007-10-15 15:35:20.0 Administrator2: Are there less hurdles to overcome when purchasing in one area of Baja as opposed to another? Are some places easier than others?

2007-10-15 15:36:05.0 Diane Wedner: Diane Gibb says: No. All the same rules apply all over Baja.

2007-10-15 15:36:07.0 maggie casanave: I was born in Mexico now U.S. citizen, can I still have direct title?

2007-10-15 15:36:57.0 Diane Wedner: Diane Gibbs says: Congratulations, yes you can! That is good for one generation. Since you were born in Mexico, your children can have direct title as well.

2007-10-15 15:37:00.0 Flotown: Are you seeing much demand for primarty residences, or largely second homes? I have baby boomer friends looking for a primary residence and I’m wondering where to direct them, city-wise? I’m uncertain of tijuana or rosarito as a primary residence

2007-10-15 15:38:35.0 Diane Wedner: It’s mostly second homes. Over last 2-3 years, more boomers are buying second homes now to use when they retire. Even though they’re second homes now, more are buying with the idea of using them for primary residences later and are looking for 2-car garages, walk-in closets, more full-time-living amenities.

2007-10-15 15:38:58.0 Lance: Ok here is a softball. With respect to agents working in Mexico, isn’t it true that obtaining a real estste license in Mexico is VERY easy so it is imperative to find an agent that has a good reputation. Do most established real estate agencies in Baja have both mexican and Gringo representatives?

2007-10-15 15:41:02.0 Diane Wedner: It’s important to be with an established company. There are licensing rules for agents in Mexico yet, except for the state of Sonora. But Baja CA Norte--the state--is currently going thru legislation to get licensing. Half of Diane Gibbs’ agents are licensed, even though it’s not required yet. Best to get an experience agent! YOu don’t need to have both MExican and U.S. representatives. Different rules apply in the two different countries.

2007-10-15 15:41:07.0 maggie casanave: Can we get brochures/map locations of places featured in your LA Times Magazine about Baja?

2007-10-15 15:42:45.0 Diane Wedner: Best to get the information online. Go the the locations you read about and do a Google search. You’ll get lots of information. You can also go to www.Bajatips.com for ino on lots of those places.

2007-10-15 15:43:16.0 Flotown: Thanks, Diane. What about presale deposits? Is there a rule of thumb as a % of purchase price?

2007-10-15 15:43:56.0 Diane Wedner: from Diane Gibbs: from 10% to 35% of the sales prices is the presale deposit.

2007-10-15 15:44:38.0 maggie casanave: Thank you very much. Will be seeing you in Baja in the Spring 08, with my adult children

2007-10-15 15:45:16.0 Diane Wedner: Have a great time! And thanks for joining the chat, Maggie.

2007-10-15 15:47:09.0 Diane Wedner: Let me make one correction : There are NO licensing rules for Mexican agents yet, except in Sonora.

2007-10-15 15:48:49.0 Administrator2: Thank you all for joining the chat, and thank you, Diane Wedner (and Diane Gibbs, who’s been chatting with us via phone). If you missed any of today’s chat, you can read the transcript at http://161.35.110.226/features/magazine -- it’ll be posted there tomorrow.