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BajaBruceFan
Junior Nomad
Posts: 33
Registered: 12-27-2007
Location: SJD
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Mood: unpocoloco
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Are building costs in Baja out of hand?
From the quotes I've received it looks like the cost for a reputable builder to build a gringo home in BCS is about $100/sq ft - and this figure does
not include the price of the land to build on.
With the downturn in real estate in the US, one can buy a nice home in Arizona or Florida for around $100/sq ft including the lot.
Does it seems like the cost to build in BCS is completely out of whack? Will the US real estate downturn and recession put any downward pressure on
the cost to build in Baja? Is it better to build now or wait a year or two for the cost of labor & materials to fall?
Any thoughts?
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durrelllrobert
Elite Nomad
    
Posts: 7393
Registered: 11-22-2007
Location: Punta Banda BC
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Mood: thriving in Baja
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sure you can buy a resale for $100/ft with downturn in housing but you can't build new for less than $150/ft.
Last year I built my cosita here in Punta Banda for $40/ft but I was contractor/designer and just used day laborers. Key to keeping cost dow is a
detailed set of plans and making sure the are followed rather than letting builder do it his way (lots of scrap and many extra hours)
Bob Durrell
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Woooosh
Banned
Posts: 5240
Registered: 1-28-2007
Location: Rosarito Beach
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Mood: Luminescent Waves at Rosarito Beach
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I know the price of materials has increased due to increased demand. I built a house of 4200 feet (total construction area- not inside living area)
for $180K five years ago. No mas. The demand has subsided, but the builing costs stay high- as always.
With the crashing real estate market stateside there are much better, cheaper and safer options than retiring in baja. South Florida, Nevada and
Arizona come to mind. The price differntial was part of the charm of retiring to baja. was.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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Loretana
Senior Nomad
 
Posts: 825
Registered: 5-19-2006
Location: Oregon/Loreto
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Mood: alegre
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Baja Building costs
Bruce,
You can't be serious about the cost of materials and labor going down in the next two years!
My builder stayed with his original estimate from Oct '06 when we started construction last November, at $79.00 US per sq. foot.
Considering the expected inflation of prices here in Mexico (@ 7% yearly for goods and services) I feel quite fortunate.
And just last week, Cemex announced an 8% increase in the price of delivered concrete as well as other building materials across the board.
But, even if I was starting my project today, I wouldn't hesitate to build in Baja! Buena suerte. 
"If you want to find the secrets of the universe, think in terms of energy, frequency and vibration."
-Nikola Tesla
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wilderone
Ultra Nomad
   
Posts: 3881
Registered: 2-9-2004
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If you're unable to devote many hours per week in diligently pursuing cheaper materials, you'll end up paying full price and more (your faucet and
their brothers). I saved about half the cost of materials buying on eBay, contractor supply stores, finding sales, etc., and spent about 40 hrs/week
pursuing good deals on my 400 SF addition. Did my own painting, bought tile in TJ, had 3/4" solid oak flooring shipped from Georgia, etc.. Overall,
I saved about $7,000. Maybe you can negotiate for the basic structure, and then find your own local labor for the interior and patios, and do it over
a period of time. A contractor isn't going to shop for a special sale - he's just going to buy what he needs when he needs it, and he's got to charge
you for the time he spends chasing materials. There are more factors in Baja CA dictating higher prices that are not relevant in the US.
[Edited on 10-22-2008 by wilderone]
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Cypress
Elite Nomad
    
Posts: 7641
Registered: 3-12-2006
Location: on the bayou
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Mood: undecided
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Have written-off any plans to relocate in Baja. There're many places in the USA
that are less expensive and the fishing is better. They come with title,
electricity, water, and you don't have to jump thru all the legal hoops. Building
materials? Available! Contractors? Take your pick.
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vandenberg
Elite Nomad
    
Posts: 5118
Registered: 6-21-2005
Location: Nopolo
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Quote: | Originally posted by Cypress
Have written-off any plans to relocate in Baja. There're many places in the USA
that are less expensive and the fishing is better. They come with title,
electricity, water, and you don't have to jump thru all the legal hoops. Building
materials? Available! Contractors? Take your pick. |
Doubt that anybody will miss you here.
The desert is not good for you anyway. You're more like swamp people. Louisiana Bayou more your style.
[Edited on 10-22-2008 by vandenberg]
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Cypress
Elite Nomad
    
Posts: 7641
Registered: 3-12-2006
Location: on the bayou
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vandenderg, I'll miss my Baja friends, but you're right about the swamps. Guess
that bayou mud is in my blood! The desert is a great place. Beautiful! Love it.
Sort of like a one of those one night stands! Sweet memories!
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Johannes
Nomad

Posts: 110
Registered: 9-29-2006
Location: / Loreto/Kenmore,WA
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Mood: I love it in Loreto
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Loretana check your U2U I am intending to build in Loreto next year.
[Edited on 10-22-2008 by Johannes]
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toneart
Ultra Nomad
   
Posts: 4901
Registered: 7-23-2006
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Mood: Skeptical
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Quote: | Originally posted by Cypress
vandenderg, I'll miss my Baja friends, but you're right about the swamps. Guess
that bayou mud is in my blood! The desert is a great place. Beautiful! Love it.
Sort of like a one of those one night stands! Sweet memories!
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Cypress,
"One night stands" can sometimes be the gift that keeps on giving. You may need to relocate to Baja for treatment.
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sylens
Senior Nomad
 
Posts: 584
Registered: 4-6-2005
Location: Ensenada
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Mood: ando bajando
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Quote: | Originally posted by Woooosh
With the crashing real estate market stateside there are much better, cheaper and safer options than retiring in baja. South Florida, Nevada and
Arizona come to mind. The price differntial was part of the charm of retiring to baja. was. |
don't know about building costs (we bought and built in ensenada in 2000) but property taxes are infinitely lower, as are costs for utilities and
groceries (if you live more or less the mexican lifestyle). we continue to feel incredibly lucky to have bought and built when we did.
lili
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Cypress
Elite Nomad
    
Posts: 7641
Registered: 3-12-2006
Location: on the bayou
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Mood: undecided
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toneart, Maybe? Baja is a sweet place. Lots of great people!
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toneart
Ultra Nomad
   
Posts: 4901
Registered: 7-23-2006
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Mood: Skeptical
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BajaBrucefan,
Like others have said, price of materials keeps going up. Labor is cheaper, depending on where you build.
In Mulege, labor is pretty high because the good ones are kept busy cleaning and fixing up after floods.One plus is, you find out very quickly who is
dependable and skilled. The cream rises to the top fast. About three years ago I built my house for about $85 per sq. ft. That included the
Fideocomiso (land banktrust title)The house itself was about $62 per sq. ft.
Of course,the river has flooded it two out of the last three years. But it is a beautiful house in a beautiful location, in a beautiful town, with
great people, locals and gringos. After cleaning up from the first flood we got lots better at it, with far less stress. I would say it's no big deal.
Considering what it cost, it was worth it. The floods are a nuisance, but it is worth it. Now we put all furniture and most appliances upstairs before
leaving. Many of us, including me, had flood insurance.
What helps is that it is a solidly constructed house. It is not a palapa. Many other types of houses were ruined, but not ours.
What I mean to say is that I think the time has past for getting a good deal on construction in Baja. Several factors contribute to this; well
publicized leases (mine is not) that are not honored or worse, the property is confiscated or even burned down; the economy turndown in the U.S.; well
publicized border crime and violence; materials price rises; word of (bad)mouth and media attention.
Your best bet is to find someone who is selling out (not me anytime in the near future). Also, you really need to look around for where you would like
to settle. Rent, ask questions, stay for a year before making any decisions. Many dreams become nightmares.
Also, whenever things get slow prices go up. You can count on it. It is a well proven Mexican tradition.
Good luck! I hope this helps.
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Udo
Elite Nomad
    
Posts: 6364
Registered: 4-26-2008
Location: Black Hills, SD/Ensenada/San Felipe
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Several years ago I was planning on either buying or building a home in Baja.
Now I am glad I bought a 45' diesel pusher. With the four slide-outs we have about 700 sq. feet of space and can make our patio anywhere we park.
We can be neighbors with any Nomads, (although our first one will be Osprey), plus we can move when flods or hurricanes approach.
Udo
Youth is wasted on the young!
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bajadock
Super Nomad
  
Posts: 1219
Registered: 12-20-2006
Location: Punta sur de \'Nada
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For square footage pricing comparisons, space inclusions/exclusions can make for more fun than accurate currency exchanges.
Udo, hope to check our your rig someday, as that's lots of space for your vacation on wheels.
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dao45
Junior Nomad
Posts: 93
Registered: 5-21-2007
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Please tell me where in the states its cheaper to build and there is better fishing than Baja
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shari
Select Nomad
     
Posts: 13050
Registered: 3-10-2006
Location: bahia asuncion, baja sur
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Mood: there is no reality except the one contained within us "Herman Hesse"
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building in Baja is an exercise in patience, cunning, intelligence (do your homework), sleuthing to find the right guys at the right price and
surrender. Do read God and Mr.Gomez first and be assured that this type of thing still happens.
You pay for what you get and everything depends on how fussy you are. If you want a "mexican style" place, you can still get them built rather cheap,
but if you want gringo standards, well that's another story. There are lots of builders who have worked in the states who know what details gringos
want and need but they charge more. Also you really either need to be present or have someone overseeing your project to make sure things go as
planned...like the electrical outlets not being put 3' up the wall!
I have found over the last couple months that price also depends on how desperate the guys are for work. For example..for something not too
complicated like a septic system...we paid 12,500 pesos for a nice big 3 chambered one for materials and labour....because the guy really needed work.
I have heard of them costing around 25,000 which is a pretty big difference. A few days ago, a good builder came and offered his service to build
another septic for even cheaper than our other one...so prices here reflect the need for work...they will undercut another guy to get the job.
Plastering can run from 40 pesos a square meter to 90 pesos so ya gotta shop around amigos. Also materials very greatly from place to place so as in
all mexican shopping...ya gotta check all the stores to get the best price. This is why it pays to get your own materials instead of leaving it to the
contractor...you will save ALOT.
Also when contracting the guys, I ask for a breakdown of prices..how much for the septic, plastering, floor, brick work per square foot etc....so you
know their price is competitive with other crews....and sometimes to get the job, they will come down to the competitors price. Ya, it's a pain to do
all that but saves a great deal of moola that you can spend on beer! And its helpful to know what things cost individually. I keep a little book on
prices both what different guys charge and prices of materials from different places...some stores have cheaper wood, others have cheaper paint, tile,
etc....
Try not to pay any money in wages in advance...set up a weekly labour payment and stick to it. Make sure you have all the materials on hand...the
workers hate it when they show up and cant work cause the cement hasn't arrived...or sand, or gravel etc.
All materials have gone way up in the last year, especially in the last month with the dollar so high. Well, gotta put my hard hat on and head out to
Gypsies site.
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LB
Junior Nomad
Posts: 74
Registered: 10-1-2008
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One of the best advise so far is: be on site during building no matter what!!
Look out for bids that are lower than others....what has been left out that
the other guy included in the bid. Always will cost more than you think.
Do not be in a rush to finish the house, as you live in it you will find out
how you use the space and will not have to rip it out!
I see so many people redoing their homes, don't know if they are
bored and want a project all the time or made a mistake in the way
they use the space. Take you time.
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toneart
Ultra Nomad
   
Posts: 4901
Registered: 7-23-2006
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Yep! Ya gotta be there.
If you are not there to oversee the "progress" you may run into something like my favorite story:
A guy tells the workers that he wants six electrical outlets in a room. He goes out for the day. When he comes back, sure enough, there are six
outlets in the room..........all in a cluster, maybe six feet off the floor, taking up maybe a square foot of space.    
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vandenberg
Elite Nomad
    
Posts: 5118
Registered: 6-21-2005
Location: Nopolo
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Quote: | Originally posted by toneart
If you are not there to oversee the "progress" you may run into something like my favorite story:
A guy tells the workers that he wants six electrical outlets in a room. He goes out for the day. When he comes back, sure enough, there are six
outlets in the room..........all in a cluster, maybe six feet off the floor, taking up maybe a square foot of space.     |
In my case they made, at my request, all outlets 12'' of the floor. So, in the kitchen all outlets were behind the cabinets. And to make
it worse, the walls were all finished in decorative brick.
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