whats you guys feelings on land leases? i am actively looking at buying in Baja, looking mostly at places that are "fideicomisos", but I have come
across a couple of places I would love to jump on, but am a bit hesitant , because they are "land Lease" properties. Can a landlease be cancelled
prematurely by the owner (if you are current?) how much protection does the leasee have?
I'm assuming a big key is to get the 10 year lease - right? at least that way you can calculate the cost as 10 years rent in the worst case?
experiences, warnings, information, all is welcome!
[Edited on 11-15-2017 by caj13]
[Edited on 11-15-2017 by caj13]bonanza bucko - 11-15-2017 at 09:57 AM
If you have a brain you should not "own" anything in Mexico you can't afford to lose.
BBMMc - 11-15-2017 at 11:50 AM
First rule of buying properties in Mexico, don't buy more than you can walk away from. Second, rent in the area you plan to buy. Third, don't buy more
than you can walk away from.
I have owned 2 houses on lease land, both have worked out for me. I was well aware that I could lose the house and the property going in. The
ownership/landowner, is the real real key. There are some great owners, also look at the kids. If the owner dies you'll be dealing with the kids,
that's when things change.
By renting for 6 months or a year, you'll understand what is going on in the community and often learn of GREAT deals. You will also get to know the
true value of the lease. If you do lease register the lease with the state, you'll have more rights if things go south. you'll need a FM-3 to do this.
When I retire in mexico I will be renting.
bkbend - 11-15-2017 at 01:20 PM
MMc hit several nails on the head. I'd add that it may depend on what kind of house you're looking at and what your use will be. A nice, new 3BR/2BA
house on the water might be a poor choice for a lease as it will be harder to walk away from (see above rule). The "owned" property will give you
more security and you might sleep better at night. My observation has been that improvements on leased property (the part you buy) seem to be
discounted in price and easier to get into or walk away from but tend to be less luxurious since it's not really yours. Disclaimer: I have rented
for a winter, I now lease. rzitren - 11-15-2017 at 09:02 PM
MMc is correct about kids and grand kids. I had a house on leased land but some of the kids and grand kids got greedy and sold the property after the
papa died. We always knew that could happen and were prepared to walk away. I was able to sell everything down to the bare walls including doors and
window so I made out ok. The only thing we lost were the future memories we were unable to make.freediverbrian - 11-15-2017 at 09:14 PM
MMc is correct about kids and grand kids. I had a house on leased land but some of the kids and grand kids got greedy and sold the property after the
papa died. We always knew that could happen and were prepared to walk away. I was able to sell everything down to the bare walls including doors and
window so I made out ok. The only thing we lost were the future memories we were unable to make.
Some times the emotional ties are harder to walk away from than the dollar tiesmicah202 - 11-15-2017 at 09:40 PM
The only thing we lost were the future memories we were unable to make.
..naaahh,, you'll get those somewhere else
.BajaBlanca - 11-15-2017 at 10:00 PM
Don't lease if you can help it. After living here for over 12 years, we have heard horror stories about kids and gkids taking over properties. It is
quite disruptive and upsetting.
A fide is great. Once we because citizens, we undid the fidecomiso - time consuming, expensive but not outrageous.
The suggestion to rent in the area before buying is soooooooooo important. Many, many regret buying due to neighbors. Other issues.
And if you are going to build - please read GOD AND MR GOMEZ, one of the best and funniest Baja books ever written.Lee - 11-15-2017 at 11:55 PM
If you buy a home on leased land, you own the home until you sell it or the lease is broken and you are evicted. A 10 year lease is meaningless
since you can’t enforce it. Lease or rent a home. Or buy with a Fido.
If you do lease register the lease with the state, you'll have more rights if things go south. you'll need a FM-3 to do this-
There hasn't been anything called an FM3 since 2012.chuckie - 11-18-2017 at 02:16 AM
never buy, ever...rent or lease...Built smart....not a gringo mansion..Enjoy whats there, don't try to bring the US with you..gnukid - 11-18-2017 at 08:30 AM
Buying a property with a FIDI or Corp can be a low cost and secure way to own property in Mexico, meaning no rental fees. The problem with a FIDI is
you have to pay the setup costs which can vary up to many thousands, the yearly fee which is on average about $500 to start and goes up 10% every 4
years and increases 7% if you are late and they make it confusing/easy to be late. Then when you sell, if you sell to a National then you pay to close
the FIDI too.
[Edited on 11-18-2017 by gnukid]MMc - 11-18-2017 at 08:37 AM
I am sorry to not being up to date on the Mexican Visa program. I sold my place in 2012 and did not renew my paperwork.
My point is that you will have more rights if you register the lease and you need to be legal (ffm?) to do it. Most folks are not aware of this.
