BajaNomad - Financing in the US for Baja property

Financing in the US for Baja property

Tifosi - 3-1-2006 at 03:56 PM

I noticed that the forum banner advertises a few US based mortgage companies. As I write this I am looking at an ad for Platinum Capital Intl. wefundmexico.com

I was wondering about the validity (for lack of a better word) of these companies. I would love to buy property and begin the process of my dream vacation home, but I don't want to pull the equity out of my US house for a Baja house. I'm young enough to manage a 2nd mortgage, but not sure if it is the way to go. Do any of you experienced Baja buyers have some advice?

Thanks .... Tifosi

Skeet/Loreto - 3-1-2006 at 04:12 PM

From an old Fart:
Do not pull the Equity outof your House to buy another House.
If you are going to use that Equity use it to make you money!!then use the money you are making to buy your,House in Baja!!

Skeet/Loreto

JZ - 3-1-2006 at 04:31 PM

Interest rates, the duration of the term, loan origination fees, and the amount of cash you need up front will be a good bit more favorable on a 2nd mortgage vs. direct financing.

[Edited on 3-1-2006 by JZ]

TMW - 3-2-2006 at 08:24 AM

Skeet, I think a lot of people owning homes along the coast used their home equity to buy houses here in Bakersfield. I see lots of out of town phone numbers for rentals after they sold. It has certainly driven housing prices up and up. What was selling for for $130,000 3 years ago is now selling for $350,000 or more.

Skeet/Loreto - 3-2-2006 at 08:44 AM

Right TW. Same up at Dos Palos:
What the yougsters need to understand is that if they take thir Equtyand spend it all, then they will be paying for the Rest of their Life until such time as their Former Homes value goes up enough to make up the difference.

In Baja, the borrowing of money in the States to buy down there is ZO.K. but be real careful that your choice of companys here in the States.

Many people are max out on their Credit cards, borrow on their Equity to pay them off, then start over again. Skeet

wilderone - 3-2-2006 at 11:03 AM

http://www.gringogazettenorth.com/7.htm

Don't invest more than you can walk away from. And if you mortgage your home with an equity loan, you'll be stuck with it forever or until you sell. Regardless, you've spent the money. In Baja you don't own the land and your title is a leasehold - easy to walk away from if everything turns sour. Destruction by weather, faulty title, family landholder disputes (see above), dubious Mexican laws and municipal government politics, powerful Mexican developers, construction defects. The BAja development arena is volatile - there's a lot at stake for developers and small town Mexicans and it's turning them into lord knows what. I wouldn't put good money (US property equity) in Mexico with so much at risk. You can get a time share and trade, buy a cheap trailer, rent a couple months a year, travel all over Mexico - not just one small town etc., for no risk at all. I went to a vacation property presentation which sounded like a good compromise in property ownership and travel. You buy 4-12 weeks which can be used at any of the resort properties owned by the corporation, including their properties in Mexico and Europe and elsewhere in the world. The weeks you buy are transferrable to your heirs, just like real property. There is an element of gamble in buying RE in Baja and Mexico and if you're a gambling man, go for it.

bajajudy - 3-2-2006 at 11:42 AM

You cant retire into a time share.

osoflojo - 3-2-2006 at 11:44 AM

The Gringo Gazette only telling part of the story as usual When they PNG'ed Carrie Duncan they should have done the same to the rag(if that is possible). Horror stories abound proliforated by the uninitiated. Property ownership in Baja or elsewhere in Mexico does not carry the kind of risk insinuated here if you pay attention to the laws, take your time and do your homework. I am sure that just on this board alone there are way many more "sucess" stories of land ownership than "horror" stories.

bajajudy - 3-2-2006 at 11:54 AM

Success here

JZ - 3-2-2006 at 11:54 AM

Hmm, advice coming from a fellow promoting time shares. I think I'll pass on that. Osoflojo has the more credible side on this one. Do your homework and you will be ok. Don't buy something for a 1/10 of its value and be surprised later when there are issues.

[Edited on 3-2-2006 by JZ]

I'm not a gambler, but

Dianamo - 3-2-2006 at 11:55 AM

I do love Baja. I have been following the Baby Boomers my whole life. I have had to pay so much more for everything, because I am at the end of the boom! This time, I feel so strongly that Baja is where I want to retire, that I am choosing to look at my "purchase" in Baja as simply transferring retirement assets.

If I lose, at least I tried. I can't even think about buying anything near the coast in CA.

:yes:

I like the weather and the people in Baja better than at home anyway! It's worth the risk to me!

Hope I'm right! :?:

the post at the top...

eetdrt88 - 3-2-2006 at 01:12 PM

makes me wonder why people are so intent on building a home when there are so many already there to be had and some for a great price...I got my place down by Bahia Santa Maria by simply going down and talking to people in the area,I found a place I wanted and then waited around for a while,ended up getting it for about half of the original price...although it is just a 5th wheel trailer with a shade cover and deck as well as plenty of room to build more it fits my needs nicely and if I ever do decide to look into a bigger place further south I would do it pretty much the same way...before I got this place I tried to get help from realtors by e-mail and phone calls to no avail so I quickly gave up on that and as far as mortgage payments go I would say that Cash works wonders in Baja

Cincodemayo - 3-2-2006 at 01:16 PM

Timeshares or cheap trailers? PLEEEEEASE.

comitan - 3-2-2006 at 01:18 PM

Cinco

When your living in the trailer and you run out of water you can move to where there is water. :lol:

Cincodemayo - 3-2-2006 at 01:20 PM

Comitan...I thought those were "Mobile" Homes :rolleyes:

comitan - 3-2-2006 at 01:34 PM

You mean the L.B. home you bought.

Mike Supino - 3-2-2006 at 01:37 PM

Quote:

Originally posted by comitan
Cinco

When your living in the trailer and you run out of water you can move to where there is water. :lol:

Maybe that is the solution to Loreto Bay.

The Sculpin - 3-2-2006 at 01:48 PM

I have a gringo friend who "retired" decades ago in baja. Bored, he ended up buying rentals down there and became quite successful. He's re-invested some of those profits back in US real estate!

Go figure!

Cincodemayo - 3-2-2006 at 02:24 PM

Comitan...
House not trailer. The view will be amazing. Not concerned about H2o as all our ?'s were answered very well and that was my main concern.

Skeet/Loreto - 3-2-2006 at 03:58 PM

Think, Look, Investigate!!
After living in Baja fulltime for 18 years, thelast 10 buying and selling Property to americanos, I had not troubles at all!!
When virginia and I were thiking about leaving Loreto we spent some time looking at other Places,for us one of those was La Ventana-at that time lots were $20,000- now they are $300,000.

If we went back to Baja we would go to La Paz, find a small Home that we could buy direct from the mexicano owner, then redo to fit our needs.
Those types are still around.
any property on the Beach is going to be very,very espensive.

If you go to a time share you are going to be Wall t Wall with Americanos, I would a 1,000 times rather be in La Paz with Mexicanos.

if you are adventureous then I would suggest you take a Panga trip from La Paz to Ague Verde look at all the beautifull places that you can have with out People, only yourselves ,a Mexicano or two, and isolation and Advenutre.

And if nothing above suits take a 4 wheel drive with a Camper and a Boat Top and Tent and go to the Pacific Side[take your own water till you find the Wells};

Skeet/Loreto

Good luck in L.B. there buddy...

eetdrt88 - 3-2-2006 at 04:28 PM

Quote:

Originally posted by Cincodemayo
Timeshares or cheap trailers? PLEEEEEASE.

I hope you get your moneys worth...from what it sounds like to me is that its a botched up mess and hasty gringo's threw their money down far too quick....typical :smug:

eetdrt88 - 3-2-2006 at 05:24 PM

the truth is that I dont really need a place to spend time indoors in Baja because when I am there I am always outside but it is nice to have a hot shower and a place to store my bikes and other baja toys since bringin my junk with me every time I come down does get old...but I have to say that the idea of new housing developments going up in Baja that cater to people who are buying mostly because they cant afford to in the U.S. is depressing to say the least

Tifosi - 3-2-2006 at 05:51 PM

So far many good replies and suggestions. Thanks. I can only hope they keep coming and I can really learn from the veteran's experience. I like the idea of buying an existing property so as of right now that is the direction I'll look in. Of course, until I find the perfect lot and decid eI want obuild from dirt :rolleyes:

.

Tifosi

oladulce - 3-2-2006 at 07:26 PM

Quote:

Originally posted by eetdrt88
makes me wonder why people are so intent on building a home when there are so many already there to be had and some for a great price...

Sometimes the "perfect spot" in Baja means there is nothing there yet. You've got to build it yourself.

Believe me, building a place is a pain in the butt. (ok, maybe someday I'll think this experience was "fun").

Bruce R Leech - 3-2-2006 at 07:29 PM

Quote:

Originally posted by oladulce

Quote:

Originally posted by eetdrt88
makes me wonder why people are so intent on building a home when there are so many already there to be had and some for a great price...

and some times they see how over priced the houses in an aria are and think they can do it cheaper and have it there way :lol:

mini rant

bajajudy - 3-2-2006 at 09:52 PM

I would like to think that most of us came down here or will come down here because we want to do what we want to. Whether it is live on the beach in a trailer(read mobile home), buy a lot and build, buy an existing house, buy into a new development,camp from beach to beach, come down when it is cold where your other house is ...whatever.
I am here. I am happy. If you dont want to come because you are scared of crime(HA) or the difference in the way you own property(which I have to add is done all over the world, if you want to buy property and are not a citizen) then dont f-ng come.
Baja is not for everyone.

Senor A that was my rant for the month.

(Jeez , I hope this works

)

Great rant Judy!

eetdrt88 - 3-2-2006 at 10:31 PM

people will come for whatever reasons they want and I guess me worrying about doesnt really change anything,but living here in So.Cal. you get real burnt out on the whole real estate hysteria B.S. that has taken over here...and it would be nice to think that the person who buys a home in a new development in Baja buys because he wants to be in Baja not just because he saved a few bucks to live at the beach...but each to his own,right :yes:

Dave - 3-2-2006 at 10:47 PM

I would welcome more financing options in Mexico. More fluidity would benefit both buyers and sellers and would help to stabilize the market. It would also help identify 'problem' title.

JZ - 3-2-2006 at 11:21 PM

Good message Judy.

eetdrt: I don't think you follow Judy, because your comments contradict hers.

Yes, Dave more financing options and liquidity would be awesome. I did see where GE Capital was offering 7.99% on a 20 year term. Which isn't great, but isn't super bad.

[Edited on 3-3-2006 by JZ]

did you mean contradict?

eetdrt88 - 3-3-2006 at 09:31 AM

maybe they do,but I know what she is saying and it is indeed very similar to how I feel

Cincodemayo - 3-3-2006 at 01:53 PM

eetdrt..
That's what everyone here on the outside seems to think but are totally off target. Time will certainly tell and the time so far for all who purchased is on target. Ain't going down the discussion street anymore.

JZ - 3-3-2006 at 02:11 PM

Yes, you contradicted the sole meaning of her message, which is to each their own. You said you agreed, but proved you really don't with your hoping people don't do things for reasons that YOU disaprove of. Seems pretty clear cut to me.

[Edited on 3-3-2006 by JZ]

Can a member of the Vagabundos del Mar

Hook - 3-3-2006 at 02:13 PM

who has the most recent Chubasco in front of them (I dont, I'm at work) transcribe the portion of the Loreto Bay purchase terms that they printed? This board really needs to see that one section.

Anybody got it? It's not that long to transcribe.

Skeet/Loreto - 3-3-2006 at 07:12 PM

Hook;A Worth while suggestion! now let us see if it will be allowed!
Skeet/Loreto

JZ,let me guess...

eetdrt88 - 3-4-2006 at 04:40 PM

youre either a cop or more likely a security guard :lol:

ease up guy,i've already mentioned once that it means nothing what I think about other people in regards to moving to Baja or anywhere else for that matter...people will go where they want for whatever reasons they want,whether or not I like it doesnt matter :smug:

I am home now......

Hook - 3-4-2006 at 05:08 PM

....and here is the section of the sales contract that was reprinted in the Chubasco.

"PROSPECTIVE PURCHASERS ARE ADVISED THAT THE AMOUNT OF THE FIRST DEPOSIT WILL NOT BE PLACED IN A NEUTRAL ESCROW. THIS MONEY WILL BE PAID DIRECTLY TO THE SELLER. THIS MEANS THE PURCHASER ASSUMES A RISK OF LOSING THE MONEY IF THE SELLER IS UNABLE OR UNWILLING TO PERFROM UNDER THE TERMS OF THIS AGREEMENT."

If the seller is UNWILLING??????

comitan - 3-4-2006 at 05:25 PM

I wonder how many of the depositors have read the contract that close, I think Cinco is beyond that stage so its no problem for him. But I do wonder what else is in that contract that leaves them an out at any point of construction or even finalized.

bajajudy - 3-4-2006 at 10:42 PM

Hook
What was the feeling of the Chubasco article? + or - or sideways

Almost no comment, really, Judy.

Hook - 3-5-2006 at 03:34 AM

They just thought it a significant enough passage to reprint it.

The sentence before the quote from the sales contract goes:

"While it is extremely complex, one fascinating section clearly stands out in bold letters:"......and then they quote the section.

bajalera - 3-5-2006 at 10:24 PM

Is the Chubasco a newspaper, or what?

bajajudy - 3-6-2006 at 07:09 AM

Lera
It is the monthly mag for the travel club Vagabundos del Mar.