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LA Times Article U.S. housing woes go south -- to Baja....... Rebuttal

 The Baja Real Estate Blog - the inside scoop on Baja Real Estate. Regarding the recent LA Time’s article on the “Flippers in Baja” dated Sept. 8, 2007.

First of all let’s define the term “flip”.

Flip \`flip\ vb : to purchase and re-sell a property for a profit without ever taking title of the property.

The buyers that came to Mexico to buy and flip their homes prior to taking title made a serious error in judgment.  If the “Flippers” had thought about it more thoroughly they would have realized that the market was not good for this type of investment. They should have taken into consideration the amount of building going in on this small stretch of Mexican coastline.

There were only a handful of developments that allowed this “flipping” option. You will find the people that wanted to make a quick return all bought in the same few developments. However the developers did not tell these buyers of the restrictions on the re-sale of a unit prior to taking title. The biggest problem is that these developments have fees and penalties involved with this type of re-sale. There is an old saying, “If it looks to good to be true, than it probably is.”

The northern Baja real estate market is primarily for retiree’s and second home owners, where you can enjoy the pleasures of living in an oceanfront development for less than half the purchase price of the same home in the US. And for the retiree’s a much, much lower cost of living.

Most people that have purchased, plan on using their condo as a second home or a retirement home. This group may want to rent out their unit occasionally but they are not trying to sell their unit before they actually own it. I see no problems for the people that purchased units to own.  These buyers bought their unit because they could afford to buy it. They have bought homes or condos through reputable developers that would not allow this flipping action to accur.  This insures that the people actually taking ownership of their condo can afford to take that ownership.

The condos the flippers put money down on are coming up for delivery very soon and the flippers who bought them never intended to take that ownership. Why, because the flippers could not afford to buy the condo in the first place. Speculation is probably the risky investment one could make. These flippers are also partly responsible for the dramatic rise in prices this last year due to the frantic needs to buy something in this area.

The developments we recommend have outstanding reputations within this community. For example, The Residences at Playa Blanca, has set the standard for all future developments coming to this area. This project is the Premier development in Rosarito. Close to the border, many amenities, built to American Standards 5 miles of sandy beach and the weather is fantastic. The Residences is still a sought after development that sells itself.

For the second home owner and the retirement people or even the investor that plans on keeping his condo, be secure in knowing you made a sound investment. You were not consumed by the opportunity to make a Fast Buck . You want a home by the Ocean at an affordable price. Baja is where you come to get your ideal home by the beach. Baja is the American Dream of owning by the ocean that is surely not available to most of us in the USA. Baja is still affordable, has a lot to offer and was just announced to be the number one place in THE WORLD to retire. Bienvenidos

 

Published Friday, September 14, 2007 10:27 AM by Laura Tierney

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