July 2010: New Listing: BAJA OCEANFRONT HOME FOR SALE! (ENSENADA AREA) PUNTA BANDA
A friend asked that we post a brand new listing for a home that has recently become available for sale, due to a very unexpected family complication. This home is on prime ocean front property, that is on leased private land. (see information on what this means at bttom of pg)
In addition to buying the home, listed at only $85,000 (U.S.) ; the new owners will pay a land lease of $275 per month on a renewable lease.
CLICK ON THE PICTURES TO ENLARGE THEM
The home will be theirs to do whatever they desire- live in, rent, or investment. It is a remarkable bargain for a home in its condition, for the gorgeous views alone, worth a million dollars.
Here are the details:
2 bedroom, 1.5 bathrooms, walk in master closet, 2nd bath right off master
1/4 acre lot (approx)
palapa garage for boat or car, with attached workshop & another separate work room
new deck, new(er) within last 2 yrs) roof, new carpet in living room, brand new (this month) pila or water storage tank, and new kitchen and lower bath floor tile
electric water pump
propane hot water heater
separate laundry room with washer
kitchen appliances ( stove, oven, fridge, etc), walk in pantry closet
imported Italian tile throughout on steps, kitchen counters and fireplace
working fireplace in living room made from imported Italian tile
2 year old, wall mounted, propane furnace in living room
amazing sunsets every night
Wireless Internet, Direct TV and unlimited telephone service to the states is hooked up and available
partially furnished (if desired)
free trash pickup included in the lease payment
15 x 20 ft enclosed courtyard, perfect for pet containment- with native succulent gardens ( barrel cactus, palm trees, aloe, geraniums, agave, jade, etc)
private driveway
roof replaced 2 years ago
built in the 1970′s
located at the end of a barely used road, at the top of the neighborhood, so there is hardly any traffic. Safe for kids and pets
very private and quiet location
free private beach for your enjoyment within walking distance
free boat launch ramp within walking distance
below the house are tidepools to explore, and seals; gray whales swim by the house during breeding season, and dolphins are seen playing in the nearby cove
fishing, kayak launching, scuba and snorkeling at the private beach, lessons given there too 
house is shaped like a U – with courtyard in the middle
located just 20 mins south of Ensenada, in Punta Banda area, the house sits perched atop a cliff overlooking the azure waters of the Pacific ocean
During the summer months, listen to Mariachi music as it drifts across the bay from neighboring restaurants
Renewable 5 or 10 yr lease
Septic tank- cleaned and emptied out late last year
ARE YOU BAJA BOUND?!?! If you have any questions or need more information/pictures on this remarkable home, please email baja.sea.side@gmail.com or call 772-801-6266 pacific time.
Lovely landscaping on property with lots of color & blooming flowers year round
Place cursor over each photo to get more information.
<<Courtyard, entering the front door, with living room windows beyond, overlooking the ocean
$85,000 OceanFront Home For Sale, La Bufadora, Baja Mexico
Here is La Bufadora’s free private beach where you can swim, snorkel, scuba dive, kayak or simply relax
CLICK TO ENLARGE!
Geraniums and other beautiful native flowers and succulents bloom year round in La Bufadora. This picture shows the doors to the garage, built by owner with local handharvested bamboo and palm.
If you are Baja bound, contact baja.sea.side@gmail.com for further information on this remarkable home for sale by owner. At this price, it will not be available for long!
in the US, call 1.772.801.6266
within Mexico please call:
646. 119. 4461
or
646. 131. 9737
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A word on Foreign ownership of real estate in México…
4 ways to own property in Mexico:
1. Fideicomiso or Mexican Bank Trust
2. the Mexican corporation
3. Mexican land lease
(like the property above) explained below
4. Federal Zone Concession
Historically, dating back to the early days of the automobile and even before that, Baja beach front property has long
been offered as campground for vacationers. Surfers and weekenders came down with tents, but wanted
more than just the beach, maybe showers and BBQ facilities, “Let’s stay at a Rancho/Campo (mexican word for campground)!!”
In time,
tents became trailers, some even got tired of dragging those trailers back and forth, so why not just leave
them here? Next the skirting, porches and rooftop decks. Some even built freestanding structures from
scratch, after all, why does the place need wheels if we’re just going to leave it here anyway? Over the years
dirt roads have transformed into paved streets and mobile homes have morphed into permanent homes.
Landowners found that collecting rent money was very very profitable. Lessees, or those who rented space, enjoyed
the ocean, weather, and the feeling of freedom being in Mexico offers. It was a win-win relationship, and
still can be for a many. Almost unbelievably, today there are even some building half million dollar and up
home on leased land! there must be a reason. Maybe it’s history or location? Price?
Or just a complete misunderstanding of Mexican Lease Laws.
Some leases are month-to-month; others are ten years or less. If someone tries to lease a parcel of land for
more than 10-years, keep in mind that the owner will have the right to end it when the 10-years is expired.
The right to renew is solely his, and he could choose either to not renew, or change the terms considerably.
Do not ever invest more than you can afford to risk.
This means you must do your homework. You need to be an informed buyer who is aware of the pitfalls and risks (legal realities?) Private Leased land has its history as a viable alternative to real ownership in Mexico. It allows
those who can’t afford real title with bank trust property or those who don’t wish to make the often sizeable land investment in Mexico an opportunity to enjoy a vacation or retirement home on beachfront property, until the day when and if the landlord decides to terminate the lease, but this is rarely the case, as it is in the best interest of the landowner to hold onto this extremely lucrative and profitable lease venture and pass it on to the next generation.
What both buyer and seller should understand when pricing their home on lease land is that they are really only, at best, transferring the replacement value of the structure and its accompanying improvements, as
well as the location itself, and at worst, transferring nothing at all, as is the case in some leases.
In most cases, they are not transferring the lease, nor any of its terms, as those are usually left to benegotiated between the landowner and the new tenant. Put simply, there is always lease land available without any structure, or a much lesser structure, perhaps a tear down, and any prospective purchaser could easily just lease elsewhere and provide their own structure, perhaps at considerably lower cost. Buyers should also weigh the difference of the real cost of the liabilities of escalating rents for lease land in ensuing years, as opposed to the likely increased value of
their investment should they acquire trust property instead. The difference can be significant over the years the property is held, and the seller of a holding on lease land is well-advised to consider this as well, as most purchasers can be expected to do before parting with their money.
When considering a lease, it may be prudent to envision a worst-case scenario. The owner could choose to sell, or even lose the land to a law suit. Your initial investment would likely disappear. Could you live with that fact? Many have said, “yes” to that question. They can live with the worst-case scenario or they’re willing to take the chance it will not happen at all; and in 99.9% of the time, it does not. These people are enjoying their Campo beach community life. They’re happy with their decision to live on private leased land, just as many are happy in their mobile home park in Arizona. Its all relative.
To reiterate; while there are successful leases, there have been cases when they have worked out less than favorably for the tenants. I would say this happens almost never. And given the state of the economy, why would a landowner be stupid enough to risk losing his entire family fortune.
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now….having said that…
When considering a purchase on leased land, there are some items you may want to research, such as:
What length lease term is available, and what are the terms for acquiring it?
Note most campos today are only offering less than ten year leases, typically 5 years now.
What are the rules of the community? Your landlord can talk to you about this. Not much different than anywhere in the U.S.
What happens to a person who fails to obey the rules? That depends on what your landlord decides to do regarding how seriously you have violated the rules, and so on.
Read a sample of a current lease agreement in the campo/ranch (or neighborhood in other words), that you are considering. Insist that you sign a Spanish version of the rental agreement with a certified English translation. (this may cost extra)
Ask for the original signed document for your file, preferably notarized with a Notario Publico. Two originals, one for the landlord, and one for you should be signed at the time of agreement.
File it in a safe place. It may protect you somewhat in court, but likely not much, depending of course on your individual case.
Make certain you have a receipt for proof of payment each month. It offers some protection of your rights.
Before signing any lease, have your own Mexican attorney review the terms and clauses and explain them to you.
Understand your rights, Mexico has laws that protect renters and foreigners are given the same rights and obligations under Mexican law as Nationals.
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Almost daily we are asked similar questions regarding the purchase of homes on lease land. Read some recently asked questions and answers below…
(remember a land lease is basically the same as living in a mobile home park, you own the structure but not the dirt it sits on, you pay rent for leasing the dirt)
(The Lease Contracts involved are private contracts and
vary widely, just as in the USA. All terms should be read very carefully, and likely reviewed by an attorney if you have any questions, well in advance of making any buying decisions.)
FAQ’s
1. Can I get a Bank Trust? sometimes, each situation is different. Check with your landlord or the bank.
2. Can I get financing? no bank we know of would do this using the property as security, although there are cases where a seller may finance your purchase.
3. A 99 year lease sounds safe enough to me? Yes it could, but it is illegal.
4. What are my ongoing costs in a lease? These differ widely according to each Campo and Lease contract. Most include and annual 10% Cost of Living increase, compounded annually.
5. Can I sell my lease property? Yes, but the lease in most cases is NOT transferable, and the buyer will have to negotiate a new lease contract with the land owner, often with a sizeable “transfer fee”, or sometimes a mandatory “commission” to the to the Campo, and often with immediate 10% increase in Lease Fees.
6. Can I sublet to a tenant? Generally, no, unless it is a relative or close family member; so in some cases, yes, it really all depends on each seperate landlord. Read your individual contract closely, or ask your landlord, they are human beings and understand there are some instances when you might need to sublet. Just like any species on the planet, each landlord is different. I’ve heard of some landlords bending over backwards for their tenants while others could barely care less other to collect their rent.
7. Why do people buy on Lease land? It can make sense to many happy buyers…please read above. Buying property with full Bank Trust is very costly, and time consuming. It is much easier to lease the land. Bank trust may provide you with peace of mind however.
8. Can I get title Insurance on Lease Land? No, you do not have title to the land, your landlord does.
9. Can I insure my home? Of Course, you are a tenant and can insure your assets. Your home and its contents can be insured as well as your valuables, vehicles, boats, animals, etc. Everything except the land can be insured in Mexico. There is a seperate section on insurance on this site.
Some realtors sell properties on leased land, as it is quick, lower cost, and they get paid their commissions
quickly, as it is not real estate and does not require a proper closing procedure.
The reason the Bank Trust was created:
