[JuanSoler]

Two of the most important factors in market prices of housing is availability and demand/turnover. Down here the availability is mostly pretty good with a few exceptions that come to mind but the demand is going up in areas, but more so in the rental markets vs sales IMHO.

[bajajeepers]

This is exactly the reason why we are thinking we should buy now rather than later, at retirement age, figuring we can create some rental income from now until then and lock in the purchase price.

[laguera]

Yes, the home next door to where I spent a large time of my childhood growing up in Ensenada recently sold for over 360,000 dollars. I remember growing up there when it was considered expensive if someone asked for over 30,000 for a home in that same neighborhood. But this is seeming to be happening most in the areas where foreigners look to rent and buy. Other areas, not so much.

[JuanSoler]

There’s a house in the Chapultepec neighborhood of Ensenada I looked at about 6 or 7 years ago when it was listed for 195,000 dollars. It’s on the market again and now they are asking 375,000. The incomes of Mexicans living in Ensenada have not doubled in that time in relation to the US dollar, in fact they have dropped when compared to the dollar. This is how Mexicans are being priced out of their own housing markets.

[laguera]

It’s ridiculous! And will probably all come crashing down next year when we go into a recession.

[bajajeepers]

We have seen the prices really go up over just the last few years since we started tossing the idea around. It really makes me wish we had decided to pull the trigger back in 2019.

[mx-rider]

You are not alone.

[mx-rider]

Assuming that the corporate world was actually taking this extended drought seriously, you would expect to see those areas that have the most abundant rainfall / water resources showing increased economic investment with a resulting population growth. Looking down the list, the only wet regions with major economic investment and high/increasing RE value are mostly just vacation/retirement type properties. Some of the driest areas are getting the lions share of business investment and growth these days in general.

We are in trouble, in more ways than one.

[blitzer]

I have been looking at some land east of Tecate and saving up to buy enough property with no neighbors around that me and my boys can ride and later kick back, have some fun and make some noise on weekends. That is getting harder to do up here in California. Was thinking on 5 years from now but if prices are really going up, I might need to take out an equity line and buy it now to lock in the land cost while I save up for the construction $$$.

[JuanSoler]

I am familiar with that area and all I can say is… shhhh!!!

[blitzer]

Sorry, just excited thinking about having my own place there. You know what I am talking about.

[bajabill]

If you have made up your mind to buy, I would do it now vs later as any bargains left won’t last much longer down here. But first make sure it’s what you want to do before pulling the trigger. In other words, discuss your plans with your wife. LOL

[churro]

Wives love to shop for houses, take her with you.

[pauldavidmena]

We missed out on an opportunity to buy a dream house in El Pescadero in 2017. With 3 bedrooms, 3 bathrooms, a spacious kitchen and plenty of outdoor space, it was listed at $387,000. Even though we weren’t quite at retirement age (I was 57 at the time), we thought it was too good an opportunity to pass it up. Unfortunately we didn’t have the cash on hand, and Massachusetts law prohibited us from taking out a Home Equity Loan on a house that was in a trust (that law has since changed). I wouldn’t even want to think about how much that house would cost now.

[blitzer]

Oh, that sucks, so sorry to hear that. Makes me really want to go to the bank on Monday and open an equity line. Don’t want to wait and regret it later.

[pauldavidmena]

We just opened up a HELOC to renovate the kitchen in our home on Cape Cod, as that’s something we didn’t want to tackle after I retire (in 2 years? am I still saying that?).

[BajaGringo]

Don’t be one of those who keeps talking about it until finally it really is too late. I know several people who kept pushing it off, wanting to build up a bigger nest egg, finish fixing up the house before putting it on the market, wait until the grandkids were out of college, etc etc etc

[bajabill]

You are so right about that. I think sometimes our inner fears take over and look for an excuse to put off taking that next big step.

[Cruiser]

Just read on Reddit where guy who has a small 2 BR house at Baja Malibu is now getting 2200 USD in monthly rent on place that 10 years ago he rented for 900 bucks.

[andyp]

Holy cow, I thought the prices were starting to come back down a bit?

[carloshc]

Yes, the cost of housing at the beach remains very expensive, pushed by so many from San Diego moving here for cheap housing. San Diego rent prices dropped slightly in the last few months but are still much too high for average working families.

[churro]

Check out these monthly rents in Rosarito Beach, a lot different from what I remember just a few years ago.

https://www.baja123.com/ROSARITO_BEACH_AREA_RENTALS/page_1666562.html

[CRF450R]

Some of those rents aren’t too bad but several are just plain ridiculous. 🤮🤮🤮

[chingon]

The current situation has created some opportunities if you have been living there for awhile.

A friend has rented the same house in San Antonio del Mar for over 20 years. If you aren’t familiar with the development, it backs up to the toll road just past Real del Mar and south of Playas de Tijuana. His rent for the 3 story has doubled in 20 years (which isn’t bad) but he told me recently that the owner (who lives in Puerta Vallarta) gave him permission to divide a large game room that is located off the garage (that he never uses) on the street level into 2 separate bedrooms, each with their own bath/shower. He says the entire project cost him less than 3,000 dollars as all he had to do was build a dividing wall, install 2 baths with just a shower/sink and toilet. He did all the work himself – framing, electrical, plumbing, drywall, tied into the house sewer pipe that passed conveniently right outside, tile work, painted and laid down some new carpet. He installed some used cabinets he picked up off craigslist along with some bedroom furniture, microwaves and coffee makers.

He now rents out both bedrooms which covers 90% of the rent of the house and he rarely sees them as they have separate entrances down below at street level. He recouped his investment in the first 3 months and now he’s living beachfront and almost rent free.

[nashsimpson]

3000 for 2 bedrooms and 2 baths seems way too low. Must be really cheap construction.

[chingon]

Not at all. It wasn’t a complete build from the ground up but simply building a room division in the middle of an existing, open space to create 2 separate spaces; each one with a small bathroom. The 3000 dollar figure was just for materials, including purchasing some nice, used cabinets and front doors. He did all of the labor himself and based on a couple of photos I saw, they came out very nice. Probably why he rented both units on the first weekend he listed them.

[DB-Baja]

Lucky dude.