Prices and regulations change for Baja Real Estate
As the Baja real estate market is on an upswing, so are prices, especially in the under $200,000 price range. While medium-priced homes in Rosarito are not seeing a big increase in price, they are selling. In the under $200k price range, inventory has slowly been increasing in price, and many buyers looking for properties are having to increase their housing budget to $250,000 and up.
An example of what´s happening in this price range is Calafia Resort and Condo where prices have gone up a little. The condos are still fair priced, and are not feeling the crunch of the market crash in the last few years.
The marked improvement in the market has brought on a sense of urgency. People who at one time would have taken a more relaxed attitude towards buying a home in Rosarito are now getting serious -some even looking at multiple purchases. In other words, the smart buyer is recognizing Mexican real estate as an investment and is nesting in the area. As a result, many homeowners are taking their homes off the market, looking for a long-term investment as well.
Recent changes in Mexican laws have also caused some changes in the market. Realtors are now required by law to register and record their transactions. The Capital Gain laws and the new anti-laundering laws mean sellers have to register with the tax board. Notaries are documenting all money transfers from buyer to seller, and the list of requirements goes on.
More transparency has not changed the buy/sell process, it has just added steps and requirements that were not needed in past years. Recording prices will be more important than ever. Many banks have changed their policies. Some of them are not able to transfer trusts, so buyers have had to look for new banks. The latter is actually great for the buyer, since he or she gets a brand new 50 year trust. Not so good for the seller: if unaware of this, it could become an added and unexpected cost.
The good news for Mexico realtors is that in the long run, access and transparency in information will be easy to achieve. The good news for buyers now, when they decide to sell their homes, the process will be while set up and in place. When selling your property, look for a knowledgeable realtor. Just as a buyer should ask questions about market, so should a seller.