BajaNomad - How much is your land lease????

How much is your land lease????

shari - 3-26-2010 at 05:46 PM

There has been a lot of posts regarding selling/leasing properties in baja and I was very curious about the range of lease costs. Many may not want to divulge this information so perhaps a poll would give some insight into this issue.
I suppose it differs from area to area and depends on if there are services so feel free to answer in more depth.

How much is your lease for a year in baja.

DENNIS - 3-26-2010 at 06:30 PM

I have three lots.

$1300 each

$300 maintenance fee.

$4200.00 dlls per year.

nothing....

capt. mike - 3-26-2010 at 06:49 PM

i know people that pay as much as $7200 a year here in HOA fees for where their AZ digs are.

David K - 3-26-2010 at 06:52 PM

You forgot to have None or $0 so those of us with no leases can see the poll results... (you have to vote once to see the results). So, perhaps discount the 'less than $1000' column results, since 0 is less than 1,000? It would be interesting to see what the ranges are for Nomads who don't or don't yet lease in Baja.

Thanks Shari!

BajaWarrior - 3-26-2010 at 07:29 PM

Our Campo is made up of mostly two lot parcels. House in front (beach), garage on rear lot (typical). We have both lots. $1200 + $800 per year.

Dave - 3-26-2010 at 07:45 PM

Quote:

Originally posted by capt. mike
i know people that pay as much as $7200 a year here in HOA fees for where their AZ digs are.

Looked at a home at PGA West. Excellent construction at what I thought to be a good value.

What's the HOA fees?

$950.

That's pretty reasonable, sez me.

Uh, that's $950 per month.

Gulp :wow:

bajaumpaw - 3-26-2010 at 08:42 PM

You need a box for over $3000. Mine is $4285.

BajaRob - 3-27-2010 at 05:24 AM

$1400 for two lots here at Bahia Santa Maria.

monoloco - 3-27-2010 at 06:55 AM

I have a piece that I leased years ago for $100 a year, I have spent $3000 on the lease and another $6000 on lawyers to defend the lease. The guy I leased it from has not honored any part of the lease. I wouldn't recommend leasing in Mexico to anyone.

shari - 3-27-2010 at 07:43 AM

thanks for that....it would be nice to know how big the lots are too...I am looking at leasing some of our nicer lots here and trying to figure out a fair price. I imagine it depends on if they have power, water, septic hooked up...ocean view etc. I appreciate any suggestions and input from wise nomads.

DENNIS - 3-27-2010 at 07:55 AM

My lots are 200 sq. mts. each, but that's only part of it. The view has to be considered.

shari - 3-27-2010 at 08:02 AM

thanks D that's what I imagined...our lots are all over 500 sq. meters with ocean views. As land costs have gone up here since they declared it a tourism corridor, more folks are asking about leasing to avoid fidis and expensive closing costs...with the road being paved all the way in by august, some RV'ers want a long term spot...so I'm trying to figure out the best way to accomodate them....any suggestions about lease agreements would also be welcomed...it would be nice to have input from people who are leasing...what they like and dislike about their agreements.

woody with a view - 3-27-2010 at 08:09 AM

ocean views are over rated!

can we get one before they're all gone!!!! :lol:

jorgie - 3-27-2010 at 08:18 AM

septic and utilities are gonna be the ingoing/supplied determination in BA . What terms in years are you thinkng about ? Who owns what when the leasee leaves ? Can the leasee sell the lease indepemdent of you and sell the imorvements ? Would there be a percentage due to you on the sale of the lease rights ? What conditions would apply if you wanted to move a leasee ? Would the leasee be held for town taxes ? Water ? Garbage ? etc , etc .................

shari - 3-27-2010 at 08:19 AM

I'm saving you one you can cast from Woodman! :lol:

but i will be expecting a mordida of microbrewery cerveza!!

DENNIS - 3-27-2010 at 08:32 AM

Shari....just don't get yourself involved in something you'll regret down the road. Have a good vision of your future with your land.
In other words, an easy buck today may be a pain in the butt tomorrow.

DianaT - 3-27-2010 at 08:57 AM

After watching what my sister has gone through with her leased land, do be careful. Her development is north of San Quintin, all ocean front or view, all utilities, etc., and the people built beautiful homes.

They all had 1 day less that 10 year leases with promises of more. Prices were from $5000. to $10000. for the 10 years. They all liked paying up front so there were no yearly increased. They all trusted the family. It all fell apart when the owner died in a car crash. When he had needed money, he had promised a large part of all the land to some other people, etc.,

Long story short----the homeowners almost lost everything when the owner died, even though they had leases. They were able to save it by paying a lot of money, forming a Mexican corporation, buy all the land and pay off the other people.

Another twist, some of the land was ejido land and the owner did not have the final title from Mexico city and that caused more problems.

So, if you decide to lease, you might want to find a good attorney and be sure all the ducks are in a row for the protection of everyone.

[Edited on 3-27-2010 by DianaT]

shari - 3-27-2010 at 09:04 AM

We are not thinking devlelopment here...more like where someone can park their RV long term...maybe they might want to do a few small improvements like a roof over their rig and septic...individual lots with short term leases from 1 to 5 years depending on the lot and people.

DENNIS - 3-27-2010 at 09:20 AM

This "lease" stuff is so nebulous. Binding contracts can't be made in bars, a notario has to be involved.
Still, Americans will enter into these agreements with the same mindset they use in the states, not knowing they are meaningless from a legal standpoint.
If I were contemplating the rental of my property, I would develop a new approach to a business agreement with my tenant so they would know the laws involved and the protections they will have....or not have. Honesty and full disclosure are a landlord's obligation......to his tenant and himself.

Another thing a tenant should know.....he can't enter into a contract if he isn't legal with immigration.

Shari....forget the lease stuff and refer to it as "rent." It will be so much easier in the future.

DianaT - 3-27-2010 at 09:23 AM

Quote:

Originally posted by DENNIS
This "lease" stuff is so nebulous. Binding contracts can't be made in bars, a notario has to be involved.
Still, Americans will enter into these agreements with the same mindset they use in the states, not knowing they are meaningless from a legal standpoint.
If I were contemplating the rental of my property, I would develop a new approach to a business agreement with my tenant so they would know the laws involved and the protections they will have....or not have. Honesty and full disclosure are a landlord's obligation......to his tenant and himself.

Excellent advice. Casual agreements can work, but can also lead to disaster for everyone involved.

CYA---

shari - 3-27-2010 at 09:56 AM

what is the difference between lease and rent??? I like the idea of new creative ventures.

of course honesty and full disclosure is essential....jeezo!

woody with a view - 3-27-2010 at 10:07 AM

rent is usually by the week or month.
lease is usually year(s) to year(s).

edit: http://wiki.answers.com/Q/What_is_the_difference_between_ren...

[Edited on 3-27-2010 by woody in ob]

DENNIS - 3-27-2010 at 10:30 AM

A lease is a legal instrument.
Rent is a handshake.

That has been my experience in Mexico.

[Edited on 3-27-2010 by DENNIS]

DENNIS - 3-27-2010 at 10:32 AM

Quote:

Originally posted by shari

of course honesty and full disclosure is essential....jeezo!

Although, not universal. Ejido transactions come to mind.

wessongroup - 3-28-2010 at 04:02 AM

Quote:

That is some excellent advise Dennis..... thanks.. your point on the rent "concept" conveys the situation regarding land use in these cases a lot better, than lease (it implies a certain degree of security and permanency to the transaction, which may not be valid in many of the cases)..... nothing is forever... and one could pay the rent once a year if one wished... as usual you guys are really good on so many things .... thanks.. again!! it all helps

[Edited on 3-28-2010 by wessongroup]

durrelllrobert - 3-29-2010 at 06:30 PM

Quote:

Originally posted by DENNIS
I have three lots.

$1300 each

$300 maintenance fee.

$4200.00 dlls per year.

my 200 sq meter lot in same "development is $1500/ yr with no additional maintenence cost (have to talk nice to Becky, Dennis) and includes an additional 100 ft (non-buildable)between lot and ocean for jardin :coolup:

durrelllrobert - 3-29-2010 at 06:34 PM

Quote:

Originally posted by durrelllrobert

Quote:

Originally posted by DENNIS
I have three lots.

$1300 each

$300 maintenance fee.

$4200.00 dlls per year.

and ... rent or lease we pay zero propert tax. in the US the property tax on my last house was over $6000/yr

bajabass - 3-29-2010 at 08:11 PM

My lot in La Mision started at 1300/yr. 10% increase per year, non-compounded, caps at 2600/yr, after 10 years, "forever" 10 year renewable leases, at the capped $ amount. The house I rent from a friend in the same ejido for cheap$, has had 2 renewals at the capped price. He has had it forever, less than 1000.yr. A few problems have come up in the last year or two, and I may never build on my cliff lot just a couple clicks below La Fonda. It is a "million dollar view" for sure.I may keep the place but I am heading much farther south, and with a Mexican wife, we will buy our house. I don't want to get into any details, but it is not the same place it was 10 years ago.

DENNIS - 3-29-2010 at 08:22 PM

Quote:

Originally posted by durrelllrobert
(have to talk nice to Becky, Dennis)

The additional 300 is punishment....because I DID talk to Becky.
Oh well.........