Frequently Asked Questions

Can foreigners own property in Mexico?

Yes, through a bank trust known as a Fideicomiso. The bank acts as the trustee and the buyer is the beneficiary of the trust. As the beneficiary of the trust, the buyer has the right to use, enjoy, sell, improve, will, or do anything with the property the buyer wishes. This is not a lease and there is no requirement for a Mexican national to be involved in the purchase of your property.

I thought ownership of property by foreigners was restricted in Mexico?

In 1993, the Mexican governments amended its constitution to allow foreigners to own property in Mexico. In 1994 the passage of NAFTA removed many trade barriers and the floodgates opened to foreigners taking ownership of property along the borders and coastal regions.

As the owner of the trust, what rights do I have?

You have all the rights of ownership you are accustomed to in the U.S. You can use, enjoy, sell, transfer, will, rent, etc. It is not a lease and your ownership does not need to be held jointly with a Mexican national.

Is my purchase secured with Title Insurance through an American Company?

Yes, all the property owned by Baja Dream Properties is secured with Title Insurance through an American corporation and as the buyer of property in Mexico, you would be able to insure your purchase with insurance as well.

If I want to build a home can I get financing from American lenders?

Yes, American lenders will give you financing on your property in Mexico. You will need to qualify for a loan just like you do in the US.

How many Americans currently call Mexico their home?

It is estimated that nearly 2 million Americans currently live full time or part time in Mexico. Since 1994, foreign investment into Mexico has totaled more than $10 billion.

Where are these properties located?

Los Barriles is located on the East Cape of Baja, on the Sea of Cortez. It is 45 minutes from the San Jose Del Cabo Airport and just an hour and fifteen minutes from Cabo San Lucas- the southern most tip of Baja.

The properties on the Pacific Coast are located in a small town called Conquista Agraria- an hour northwest of La Paz off of Highway 1 and the La International Airport.

How do I know these areas are safe from the violence I hear about in Mexico?

The properties in Los Barriles and the Pacific Coast are extremely safe. They are insulated from the violence attributed to the drug wars and centered on the border towns. Neither location has ever reported the murder of a foreigner.

Are these towns poised for growth and appreciation?

Los Barriles has seen significant growth in the last few years as the Mexican Government continues to invest in infrastructure. In 2007, the government installed underground sewer, new curbs and gutters, and concrete for all the major streets through Los Barriles.

Additionally, the first Marina on the East Cape is currently under construction just 20 minutes to the South of the Vista del Cortez Community. When complete, the marina project will contain several hundred homes on the water, upscale dining and a Pete Dye signature golf course.

The properties on the Pacific Coast have received millions of dollars from the government, as it is the only town in the area where the government brought in power. Private investment in the area is also on the rise as homes are being built, and waterfront developments are underway just to the north and south.

How strong is Mexican Currency?

The Mexican Peso has been the strongest currency in the world in the past four years. The Peso is now slightly overvalued against many other world currencies. Still capital inflow from North of the border and oil export revenues will keep the currency stable.

How is my Investment in Vista del Cortez protected?

Property owners in the Vista del Cortez Community will benefit from CC&R’s, which protect your views, set building guidelines, provide for setback requirements, ensure garbage and unsightly debris will not be visible and provide for a protected community greenbelt.

How can I be certain I am getting a good deal on my land purchase through Baja Dream Properties?

You will not be able to find any comparable listings values in Los Barriles or the Pacific Coast that are priced as low as ours.

Why are your properties so much less expensive than others I see advertised?

One of the reasons our pricing is so aggressive is that we bought our properties directly from the Mexican farmers who have owned these parcels for generations. We did not use realtors, nor have these properties been bought and sold several times before we took ownership. We bought at wholesale and are passing these savings on to you.

Another reason is that we are currently selling these properties at pre-infrastructure pricing. Lot prices will increase soon once water and power are complete.

Why are the roads in the community so wide?

We made the roads 40 feet wide because we wanted to ensure there is plenty of room for cars to pass each other and so owners of lots did not feel crammed or perched on the edge of an embankment.

When will water and power be available to the community?

Water and power plans have been submitted and approved by all government agencies and Baja Dream Properties will start installing this infrastructure in the spring of 2011. From start to finish, the process will take roughly 1 year. Once complete, each lot will have water and power hook-ups at the street in front of each parcel.

Is the water drinkable?

Many locals drink the water, but most people prefer to use it for showering, washing dishes, etc. and prefer to buy drinking water. It is not bad to drink, but contains different organisms that would take time for your body to build up a tolerance.

Is the power the same as the US or do I need to buy converters or special appliances?

The power is the same as in the US — standard 110 and 220 volt. There is no need to modify any appliances or fixtures.

Are there many retirement communities in Mexico?

Yes, there are an estimated 2 million Americans who chose retirement in Mexico and are living here either full-time or part-time.

If I buy land, but do not plan on building for a few years, how expensive are my costs to hold the land?

One of the big advantages of owning property in Mexico is the extremely low cost for property taxes. Taxes are less than 1/5 of percent. So a parcel purchased for $50,000 would cost around $100/year to hold.

Is my property purchase protected with Title Insurance?

Yes, all properties owned by Baja Dream Properties are protected with Title Insurance offered through US companies.

Are other forms of insurance readily available?

Yes, property, liability, and damage insurance are available for your property. And healthcare, automobile and other insurances are available for personal use.

When I am ready to build, is there any financing available so I do not have to build with all cash?

Yes. There are a number of US lenders already offering US interest rates of between 7 and 8 percent. The interest rate will depend on the property, the deposit and the finances of the buyer. The deposit will be a minimum of 20 percent, and in some cases 30 percent.

What is the average cost to build a home in Mexico?

On average, you can build a home in Mexico for as little as $70/square foot. For $100/Sq. foot one can build a magnificent home with all the finishes you could ever want.

What are my closing costs and costs to create a Fideicomiso?

Closing costs will be around 4 percent of the total purchase, and a Fideicomiso will cost around $2,000 to form. Baja Dream Properties can help with all aspects of the closing process.

Are there medical & dental facilities available in case I get sick or need dental care?

Yes, Los Barriles has both medical and dental care offered in the town.

The properties on the Pacific are an hour away from La Paz where state of the art healthcare services are available.

Can I get prescription drugs while in Mexico?

Yes, prescription drugs are available at any pharmacy, and the cost for such drugs is much less than it would be in the US.

I need to be able to get internet and phone service while in Mexico. Is that available?

Yes, internet and phone service carriers are both available in Los Barriles.

On the Pacific Coast, internet and phone are both available, but there are fewer service providers so you need to check with your carrier first.

Do I need a Mexican drivers’ license? Will you help me get it?

If you are going to live here permanently, it’s a good idea, but not required to have a Mexican license. A Mexican license is required if you have Mexican plates on your car. We can assign one of our consultants to accompany you to the licensing department and explain what you need to do.

If I chose retirement in Mexico, will my social security benefits allow me to live comfortably?

Yes, there are a lot of retirees in Baja, California who can afford a great lifestyle on their benefits. It is estimated that one can retire comfortable in Mexico living off of $2,000/month – for food, clothing, shelter and medical coverage.

Do I need to speak Spanish in order to live full-time or part-time in Mexico?

No. Although Spanish is the primary language of the locals, English is the secondary language and most locals understand it well enough to communicate with Americans.

Can I open a bank account in Mexico?

Yes, you will need an FM-3 (1 year Visa) and Baja Dream Properties can help you easily get one.

Is there pet care available if I want to bring my pet with me while I stay in Mexico?

Yes. Los Barriles has a veterinary clinic in town.

La Paz has many different vet offices to choose from.

Why would I buy property in Mexico if I do not plan on ever living there?

Buying property in Mexico is an excellent investment. To own oceanfront or ocean view property in the path of growth is a great way to diversify your portfolio. Many folks are hesitant to invest in the volatile stock market; savings accounts offer almost no returns, and US real estate offering ocean views is much too costly for most folks.