Mexico real estate boom, is it safe?

Baja California realtors and Sonora Mexico realtors report a boom in property sales to U.S. investors. The reasons are primarily economic: Home prices in Arizona and Southern California are pushing buyers South of the border where real estate is still affordable. Most first time home buyers in San Diego or Phoenix have difficulty in qualify for financing the averaged priced home. In San Diego , 70% of prospective buyers do not qualify for mortgages beginning at three hundred fifty thousand dollars.

The realty options in mexico are an affordable hacienda on the Pacific or Sea of Cortez, with awesome sunsets, or a more expensive suburban, three bedroom, with a view of your neighbor's "tiky taky". An added bonus is that property taxes in Mexico are a small fraction of those in the states.

In addition to home value, Baja real estate and Sonora real estate is appreciating as much or more as property in Phoenix and San Diego. For the first time, significant foreign investment (as an investment), not vacation or retirement property, is being made in Mexico real estate.

Commuters from Tijuana , Rosarito and Ensenada can cross the border via a dedicated lane and Sentry Pass (no stopping for revision). Arriving at their downtown San Diego offices, faster than folks who commute from East county. This same Sentry crossing is expected to be "phased in" at all major border entries, including Arizona .

Virtual offices are also a factor in the Baja and Sonora boom. It allows:

Expatriots working in Mexico from their beach homes via high speed internet, computer phones and faxes. Charley from Scottsdale, and a property owner at El Dorado Ranch in San Felipe, puts it this way - "My job, as a webmaster, allows me to work anywhere that has high speed internet access. No more traffic, pollution or environmental stress. This was the sanest move of my life".

Changes in Mexico's foreign investment laws and the institutionalization of properties by U.S. title Insurance companies (Fidelity, First American and Stewart), provides a new confidence among foreign investors. The same title insurance companies, protecting your home in the U.S. , protect your "casita" (home) in Mexico. And subject to U.S. courts for enforcement of a claim.

Major players among real estate brokers: Century 21 Mexico, Coldwell Banker Mexico, Prudential and Remax Baja are also driving business South of the border to their Mexican franchisees. According to John Fleming, a Tucson and Puerto Peñasco Broker, "There are too many real estate agents in Baja California and not enough affordable product in the Southwest to satisfy buyer demand. Mexico offers a major new source of inventory, especially for lower priced homes".

ll of this investor interest in Mexico has spawned a series of seminars that are intended to inform and educate the foreign investor in Mexico on how to do it safely and to secure their investment with title insurance. These seminars in Tucson and Phoenix are intended for the general public and realtors. Realtors who attend can satisfy up to six hours of continuing education credits.