Category Archives: Baja Real Estate

Northern Baja real estate related topics

Look What I received at my front door at Palacio Del Mar. By: Miguel Sedano

Tijuana group aims to change city’s image
Gore, other leaders expected at meeting

TIJUANA — With drug gangs waging war on Tijuana’s streets last fall and many residents out of work, José Galicot began to brainstorm with a small group of friends. How could they show the world the Tijuana he knows, the city where he first prospered financially, the place that made the heart valve that keeps him alive today?
That conversation has now snowballed into Tijuana Innovadora, a $5 million effort led by the private sector to generate investment and change Tijuana’s image at home and abroad. Galicot is chief cheerleader for the wide-ranging conference planned for Oct. 7-21 at the city’s most important cultural center, the Cecut.
The list of guest speakers includes one of the world’s richest businessmen, Mexican multibillionaire Carlos Slim; former Vice President Al Gore; departing CNN talk-show host Larry King ; Wikipedia co-founder Jimmy Wales; Twitter co-founder Biz Stone; Toyota executive Tetsuo Agata; space pioneer Burt Rutan; and Qualcomm Chief Executive Paul Jacobs.
Tijuana Innovadora is the latest — and by far the most ambitious — in a series of efforts led by Galicot to defend the city’s name.
“What we’re doing is taking a plate, throwing it on the ground, making noise and saying, ‘I’m here, this is what I am, look at me, United States, Europe ,’ ” said Galicot, 72, head of Tijuana’s Image Committee and a telecommunications and real estate investor. “Look at my factories. I am in a strategic location, right next to San Diego.”
Largely focused at first on the city’s manufacturing sector, Tijuana Innovadora now includes presentations on urban development, digital art, philanthropy and health care.
“What we’re trying to do is project a platform for a lot of things to happen in Tijuana — from infrastructure to new businesses to a new way of thinking to new techniques,” said Alejandro Bustamante, a Tijuana native, longtime leader in the city’s maquiladora (manufacturing) industry and champion of Innovadora.
The event’s price tag may be ambitious, but organizers are expecting to recoup their investment by selling conference tickets and vendor booths, seeking sponsors and private donations, and asking the government to underwrite one-fourth of the cost. Most morning sessions will be free, while $100 pays for the right to attend afternoon events on any given day. The dinners are being sold for $2,000 for a package of five.
Among the growing number of people joining forces for the event, many say just planning Tijuana Innovadora has had an uplifting effect — a chance to emerge from three years of incessant news about drug-related violence, kidnappings and an economic downturn that has cost tens of thousands of jobs and shuttered many businesses. At the group’s Wednesday meetings, these supporters include members of nonprofit groups, government officials, representatives of the city’s various chambers and a few backers from the U.S. side of the border.
Alida Guajardo de Cervantes, a cultural promoter in Tijuana, has joined forces with Tijuana Innovadora. She is leading a project to have residents across the city do a special dance at the same time — in schools, senior centers, factories, even in the yard of the state prison.
Scheduled for the conference’s last day, “Pa’ Bailar Tijuana” is a mass event with steps choreographed by the Tijuana-based dance ensemble Lux Boreal and set to music by Julieta Venegas, the Tijuana-born, Grammy-winning performer.
“I think it’s about showing who we really are. People in Tijuana get up and go to work,” said Guajardo, who was born in San Diego, raised in Mexicali and has lived in Tijuana for nearly four decades. “We have crime, but everybody has crime. Tijuana has always been fingered, all my life, as a city that has bad things.”
Tijuana Innovadora will strive to tell the other side of the story.
It is the story of a city that manufactures 98 percent of the headsets used by air traffic controllers worldwide, they said. A city that built the solar panels used at the stadium in South Africa that housed this summer’s World Cup. A city that expects to make 21 million televisions this year, according to DEITAC, a Tijuana group that promotes industry.
Few would deny that the city has struggled economically in recent years. Its maquiladora sector lost about 30,000 jobs between April 2008 and March 2009 — plummeting from more than 165,000 to 135,000. The factories are rebounding; they counted more than 146,000 employees in April.
IMCO, an economic think tank based in Mexico City, reports that Tijuana’s relative competitiveness slipped between 2006 and 2008, dropping from 15th to 31st place in a survey of 86 Mexican cities.
“Like the rest of the world, we’ve been in a recession, and we’ve felt it most strongly in the sectors that link us to the U.S. economy,” said Alejandro Mungarray, Baja California’s secretary of economic development.
The state has definitely turned a corner in recent months, he said, and “we’ve begun our recovery.”
Innovadora’s promoters are hoping to showcase certain industries such as medical device manufacturing, whose 41 companies employ more than 28,000 workers who assemble everything from catheters and orthopedics to pacemakers and heart valves. Another key sector is defense and aerospace manufacturing, with 31 companies and about 6,500 employees.
Promoters of industry said they are striving to grow out of the traditional model of export-oriented assembly plants that use low-cost labor and imported materials. With nearly 600 maquiladoras in Tijuana, “95 percent of the goods come from outside,” said Jaime González Luna, president of DEITAC. “We’re trying to make investment come in, but also evolve to the next step.”
One of those goals is to develop the city as a center for software development. Innovadora’s promoters have gotten some good news on that front: Microsoft has proposed establishing an “innovation center” in Tijuana that would provide millions of dollars’ worth of licenses and consulting services. The project would focus on developing technology for mobile devices.
Galicot, who like many of Tijuana’s well-to-do owns a home in San Diego, has long been a booster of Tijuana. He has spearheaded a program to decorate the city’s underpasses with murals, campaigned to copyright the city’s name and launched Paseo de la Fama, which displays photos of prominent residents in various locations.
When the Republican National Convention came to San Diego in 1996, Galicot led a public relations effort to bring journalists covering that event to Tijuana. The plan backfired when their attention was drawn to the kidnapping of a Japanese maquiladora executive in the city.
Galicot is undeterred by his critics.
“My first reaction (to Innovadora) was to tell him that he was crazy,” said Gastón Luken Aguilar, a businessman with cross-border ties and a close friend of Galicot’s. Luken has since changed his mind and plans to participate.
“It’s a very, very ambitious and very original grass-roots-driven idea,” he said. “I love grass-roots projects because there are very, very few of them in my country.”
By Sandra Dibble, UNION-TRIBUNE STAFF WRITER

Baja building first in region certified green

Gold rating given for office project

By Sandra Dibble, UNION-TRIBUNE STAFF WRITER

TIJUANA — A 14-story office building in Tijuana’s Rio Zone is being celebrated today as the first certified green structure in northwest Mexico. Its amenities include bridges and skylights, a vast airy central chamber, and an aluminum skin to filter out ultraviolet rays.

Key members of the development team for Via Corporativo, a LEED-certified office building in Tijuana, are photographed in November.  David Maung photo

Key members of the development team for Via Corporativo, a LEED-certified office building in Tijuana, are photographed in November.  David Maung photo

“We wanted a building that would raise the bar completely in the region,” said Ramon Guillot Lapiedra, the project’s architect. “Certification is like icing on the cake.”

The certification comes from the U.S. Green Building Certification Institute through the rating system known as LEED, short for Leadership in Energy and Environmental Design. The building, called Via Corporativo, achieved a gold rating, the second-highest of four possible designations. It is one of only three buildings in Mexico with that distinction, and the only one outside the Mexico City area.

The designation was given in April, but the owners held off on any public announcement. The rating has come amid growing efforts in Mexico to build LEED-certified structures. Mexico City has 18 certification projects in the pipeline, and the northern industrial city of Monterrey has five. In the Baja California capital of Mexicali, developers of the Solarium office building are going through the steps to achieve a silver rating later this year. read more »

Palacio Del Mar, a Baja California High-End Private Community Going Green

“Palacio del Mar is going Green in all ways possible”, was the main focus of this year’s annual homeowners meeting, in which developers informed of their current and future plans for the community, including the projects which will continue making Palacio del Mar one of the pioneering developments to go Green in the Northern Baja area.

Palacio Del Mar, a Baja California High-End Private Community Going Green

Palacio Del Mar, a Baja California High-End Private Community Going Green

ROSARITO, BAJA CALIFORNIA, MEXICO – Grupo Pes, developers of Palacio del Mar, have over 25 years of experience with a reputation of beauty and quality, are currently finishing the first stage on their newest development, Palacio del Mar. They recently hosted their annual homeowners meeting on April 16th 2010.  This meeting, which informed residents of the developer’s current and future plans for the community, was held at the development’s posh movie theater. “The meeting was attended by homeowners who came from as close as San Diego and as far as Boston. An important point of order was the developer’s announcement that Palacio del Mar would be “going green”.

Pes Developers mentioned that among Palacio’s Green projects are the installation of a solar heating and energy management system, and the installation of a state-of-the-art hydration filter. The aim of these projects is to reduce energy cost for the outdoor infinity pool, as well as, the Olympic size indoor lap pool. The hydration filter will provide soft water to the entire complex and reduce long term maintenance costs by lengthening the effective life of all fixtures and equipment. These new additions compliment the currently installed resource conservation systems which include motion-sensor triggered lighting in all hallways and a water treatment system that recycles gray water for garden and green areas. read more »

The Five Best Baja Peninsula Beach Towns

The Five Best Baja Peninsula Beach Towns

The Five Best Baja Peninsula Beach Towns

Dear International Living Reader,

Live in Mexico and work in the U.S.? That’s one solution many expats are trying…and with a place less than an hour’s drive from  much more expensive San Diego, why not?

Mexico’s Baja Peninsula is a geographical wonder. Bordered on one side by the Pacific Ocean and on the other by the Sea of Cortez, this long, thin strip of land features some of the most spectacular oceanscapes—and some of the most incredible beaches—on the planet.

The Baja is really two states: Baja Norte and Baja Sur. Both have their distinctive charms. Much of Baja Norte, particularly the famous (and infamous) Tijuana, is drive time from the U.S., and has been popular with U.S. expats and tourists for many years. Baja Sur, and especially its famous playground, Cabo San Lucas, has a character and lifestyle all its own.

But there is much more to Mexico’s Baja Peninsula than Tijuana and Cabo. All along both sides of this incredible stretch of land are beautiful and affordable options for retirement, vacation, second homes, and rental opportunities.

That’s what this report, Baja Peninsula Beach Towns—Mexico: Dream It, Find It, Live It, is all about. We’ve chosen five locations that we feel hold themost potential for the would-be expat. Each of our picks offers you a lifestyle most people only dream about with great weather, plenty to do and see…and established expat communities to make your transition easier. read more »

Using a real estate IRA to acquire property in Mexico

By TOM KELLY, INVESTMENT columnist

Using a real estate IRA to acquire property in Mexico

Using a real estate IRA to acquire property in Mexico

Like second-home sales in the U.S., the sales of Mexican homes have been limping along. They are a luxury that buyers have been unwilling to revisit until the economy improves. While anecdotal evidence is beginning to reveal increased activity in some of the more popular resort areas, very few developer projects are thriving because of a lack of bank funding or sales.

“We have some buyers who have returned to look and buy,” says Max Katz, who operates Baja Real Estate Group in Rosarito Beach, about 70 minutes south of the California border. “But it doesn’t help when U.S. television repeats the same shows on crime in Mexico that they were showing 18 months ago.”

Much has been written about the kidnappings, roadside hijackings, crooked cops, and the infamous bandidos in some of the regions of Mexico. Most of the violence south of the border, however, is directly related to the drug cartels and the authorities who are trying to eradicate them. There is absolutely no pattern of any innocent U.S. citizens being randomly murdered in drug violence.

Unfortunately, the negativity surrounding the country comes at a time when more and more Americans could use a less expensive place to live. According to a new report by the Washington, D.C.-based Center for Economic and Policy Research (CEPR), baby boomers have not saved for retirement and they will be forced to work longer and/or move to less expensive places than they anticipated. Property taxes, health care, and cost of living will force boomers to consider moving to other countries, especially if they plan on living at the same level of comfort as they do now.

John Youden, the Vancouver, British Columbia native who founded a multiple listing association in Puerto Vallarta in 1988 (www.mlsvallarta.com) and also publishes a highly respected real estate magazine, believes developers will have to offer potential buyers a creative proposition to sustain sales.

A Puerto Vallarta-based group headed by a Harvard MBA graduate took Youden’s message to heart. It is seeking buyers/investors looking for a guaranteed rate of return and has found the offering to be an ideal alternative to conventional Individual Retirement Account investments. One hour south of Cancun on the Caribbean Sea’s Riviera Maya, the company is building a condotel adjacent to Madrid-based Bahia Principe Group’s mega resort. Called Sian Ka’an (www.bahiaprincipecondohotel.com), the development is on its own golf course.

The condo hotel is a gated community with 24-hour security, and it has access via a private bridge to the adjacent resort and its pools, spa, restaurants, tennis courts, and boutiques.

Because Bahia Principe needs additional rooms during much of the year, the corporation is guaranteeing an 8% annual return to investors on their rental unit for seven years, even if the unit is not occupied. Personal use by the owner is allowed, yet owners-investors can also enter their unit in the guaranteed rental pool. After that period, owners-investors can renew the contract or take sole possession of their unit.

To prepare for your real estate IRA, designate the amount of your retirement funds that you wish to use in the property deal and open a new IRA account with an independent administrator.

The guidelines covering real estate IRAs are stringent. If you break one of these rules, you could jeopardize your tax-free status on your account.

  • The land or house must be treated like any other investment.
  • All rental profits must be returned to the trustee.
  • You cannot manage the property. But your trustee can hire a third party – a real estate broker, or local manager – to collect rents and maintain or improve the property.
  • The house or property (or proceeds from its sale) must remain in the trust until distribution at retirement. If a trustee is instructed to sell the property, funds can be transferred to another account for reinvestment.

You cannot use IRA money to buy your own residence or any other property in which you live. It has to be investment property. But when you retire, you can direct your IRA to turn it over to you as a distribution at the current market value.

It’s a creative way to get in the door if you are considering an investment purchase.

—-

Browse for Rosarito Homes for Sale.

Mexican Real Estate: Escape From U.S. Housing Woes

By Harmon Leon

Mexican Real Estate: Escape From U.S. Housing Woes

Mexican Real Estate: Escape From U.S. Housing Woes

You can thank the swine flu for one thing: It dramatically brought down the housing prices in Mexico. Throw in the recession and a dose of drug-war crime waves, and the sales volume of Americans buying homes in Mexico has dropped a dramatic 70 percent for Coldwell Banker and 40 percent for some residential resort developments in Baja in the past 12 months.

These are crazy figures.

So why not take advantage of the crunch in the Mexican housing market and consider buying that retirement dream home in Mexico?

Some U.S. buyers imagine that buying property in Mexico means constantly facing off with drug lords, in the same way that opening letters a few years back would result in contracting anthrax. Fat chance: In reality, the likelihood of a narco-war happening in your front yard is about the same as experiencing a shootout between the Bloods and the Crips in California. High-crime areas generally are closer to the U.S.-Mexico border.

Indeed, today’s reality is quite different from long-held American perceptions. Since 2002, the number of border patrol agents has been doubled to 20,000. These days, even turf wars in border cities have little impact on American residents. Meanwhile, drug-related arrests have gone up dramatically in Phoenix, where smugglers hole up in safe houses.
read more »

Retire to Mexico — the price is right

By Les Christie, staff writerApril 28, 2010: 10:48 AM ET

Retire to Mexico -- the price is right

Retire to Mexico -- the price is right

NEW YORK (CNNMoney.com) — The years-long trend of Americans buying homes and expatriating to Mexico has collapsed, done in by a trifecta of the recession, swine flu and an epic crime wave.

Sales volume plunged nearly 70% last year for Coldwell Banker, according Phillip Hendrix, director of the firm’s Mexican operations. And at Costa Baja, a residential resort development a few miles north of La Paz, sales have slowed by about 40% in the past 12 months.

“Sales are off like crazy. The recession is really hurting and the headlines have been driving people away. The narco-wars especially have bit into the housing market in Mexico,” said Tom Kelly, a follower of Mexican real estate trends and author of Cashing In on a Second Home in Mexico.

But that’s good news for Americans who have always dreamed of retiring to Mexico but could never afford it: The bust has made homebuying a bargain. Prices can be less than half of what an equivalent home would run in the U.S.

Although the crime wave is confined to a fairly limited area, the perception of it has hurt markets all over the nation, said Alejandro Yberri, CEO of Costa Baja.

Information on prices of homes being sold to expatriate Americans is sketchy, but Kelly estimates overall declines of between 20% and 30% since the peak. In the high-crime communities close to the U.S. border, the drop has been even steeper, perhaps 40% or more. read more »

Rosarito-Ensenada 50-Mile Fun Bike Ride Starts 31st Year With Race This Saturday

Rosarito-Ensenada 50-Mile Fun Bike Ride Starts 31st Year With Race This Saturday

Rosarito-Ensenada 50-Mile Fun Bike Ride Starts 31st Year With Race This Saturday

ROSARITO BEACH, BAJA CALIFORNIA, MEXICO—The Rosarito-Enesenada 50-Mile Fun Bike Ride will begin its 31st year this Saturday with the first of two yearly events.

“Five-thousand cyclists are expected to ride on April 17,” said San Diego event promoter Gary Foster. “The event had 4,000 last September and only 3,000 one year ago in April, so Baja tourism is definitely increasing.”

Participants came from throughout the world but mainly the United States and Mexico. Following a course along the coast and through rural countryside, the ride is geared both for serious competitors and those who take a more relaxed approach.

“This is one of the signature events for our region and attracts a great group of people,” said Rosarito Beach Mayor Hugo Torres. “We’re pleased to have the event, the riders, their friends and family visit us twice each year.”

Further information, entry fees and registration is available at www.rosaritoensenada.com. Participants also can register the day of the event. read more »

For some East Bay retirees, Mexico an affordable alternative

By Kathleen Kirkwood

Brad Billingsley and his Wife

Brad Billingsley and his wife Linda

Brad Billingsley could have been waiting for his tee time at an Arizona golf course.

Instead, the former Lafayette resident and his wife Linda were in a lagoon off Cabo San Lucas, snapping photos of gray whales bobbing next to their small charter boat.

“Every day, it’s an adventure here,” Brad Billingsley said. “It’s added 20 years to my life.”

Brad, 62, and Linda Billingsley, 61, are among the “silver surge” of baby boomers seeking alternative retirement nests in Mexico, according to a recent report by the International Community Foundation.

It’s not certain how many U.S. retirees are living in Mexico — a 2004 study puts it between 500,000 and 600,000 — but the foundation and other researchers say the number is bound to increase as more boomers settle into their golden years and find Mexico an affordable alternative. Almost half the retirees living in coastal areas are getting by comfortably on less than $1,000 per month, said the report, which cites the growth of real estate projects targeted at retirees as proof that expatriates are flocking south of the border.

The Billingsleys had seriously considered a retirement community with a golf course in central Arizona. But they lacked the enthusiasm for fairway living that seemed to consume retirees there. “Their entire lives were involved with golf,” Brad Billingsley said.

In 2007, the couple became expatriates and settled into a $300,000, two-bedroom beachfront condominium in Rosarito Beach, in Baja California.

They’ve made the most out of their retirement dollars, Brad Billingsley said. The cost of living — from groceries to health care — is low in their beachfront town and there’s plenty to do, such as driving down the coast to Cabo, walking on the beach and shopping at the local mercado. read more »

Lindsay Lohan needs a Mexican Vacation away from the media and the paparazzi!

Sandy Beach at Palacio Del Mar

Sandy Beach at Palacio Del Mar

Lindsay Lohan and other famous starts such as Britney Spears have often looked south of the border to take advantage of a US resort style beachfront community with luxurious ocean front villas for relaxation and to take breather from the US Media and the paparazzi frenzy.

At Palacio Del Mar, Baja’s newest luxury condos and spa, Lindsay could take advantage of one many Palacio Del Mar  amenities: Palacio’s private shuttle service, picking her up at the airport or a private location of her choice and riding just 45 minutes away south to Ensenada. She could have her own pool or Jacuzzi in one of Palacios 2800ft² 3 bedroom Condos or a private tour of the Guadalupe Valley, the largest wine region in northern Mexico, where she can sample award wining wines and food. Lindsay could also have a gourmet meal at Ensenada’s famous Restaurant Ofelia’s. read more »