Mario Restrepo is a real estate agent who specializes in Baja real estate and offers property management services in the Baja, Mexico area. His site Baja Open House has articles on Mexico real estate, Baja property listings, and property management services.

Real estate in the United States has become more attractive due to the recent fall in prices. Why is real estate in Baja California still a good option for investors?

One major reason to invest in real estate in Baja is because many ocean front, ocean access, and ocean view properties have come down in price significantly compared to stateside ocean front, ocean view, or ocean access properties. This is a buying opportunity for those interested in coastal living.

An interesting point is that many Baja coastal homes in the resale market have either been paid for in full or have very little debt outstanding against them. So even though you can now buy coastal homes in Baja at recently adjusted and attractive prices, your purchase will not be surrounded by homes that have been foreclosed on.

Can you tell us how your property management services work and why this is a good option for property owners of Mexican real estate?

Property management for owners of Mexican real estate is an excellent option for several key reasons.

Firstly, Mexico properties owners working with a good property management company here in Mexico will allow the owner to control costs. A good property manager will have a team of local workers working for local wages, and won’t charge the owner a premium over and above the cost of labor. So in essence, you will be paying what the locals pay concerning services. Further, with property management, the property will be looked after and it won’t be sitting unattended here in Mexico. The owner’s investment will be kept in good working order, and simple bi-monthly reports will be put online for the owner to view how their home is doing.

Next, if the owner wants to generate some income, a good property manager will help achieve those financial goals. For example, some owners of Mexico real estate want to generate enough rental revenue just to cover expenses so there is no negative cash flow and that wear and tear on the property is kept to a minimum. While other Mexico property owners prefer to maximize revenue, and see their Mexico vacation rental as a cash cow.

My property management services are unique in that we put an emphasis on finding and servicing new renters. We are very web savvy and can find renters organically through web searches. But we also reach out to other leasing agents and the community at large to bring in renters. In essence we have an open platform that allows agents to bring us a renter, which is not common here in Mexico, coupled with a strong referal program.

We are growing because we focus on keeping costs in check for owners, and generate solid revenues for owners, with a transparent online reporting system.

Within the Baja region, are there any areas that you specifically recommend because of its potential for growth?

I recommend ocean front, and ocean view homes in the best communities. I know there is nothing surprising in that statement, but finding the best communities and homes is part of the formula to experience quicker and more solid upside in your investment once the economy strengthens.

I believe that growth will continue along the ocean front region between Rosarito North and Ensenada, with a focus south of Rosarito from Calafia, down to Bajamar. Living economically, in coastal communities, with direct driving access to San Diego is a style of living that will continue to fuel growth as more people are working remotely, and more retirees stretch their dollars.

What should interested buyers be looking for when selecting an ideal property in Mexico?

“Ideal” has a subjective side in that someone may feel that it is ideal to live by the ocean, or near family and friends. But “ideal” also has an objective side in that a property is ideal if it fully owned with clear title, either by bank trust, legally known as a fideicomiso, or an escritura, which is title for Mexican Nationals.

Know what you are buying. A buyer needs to include escrow instructions within their offer to purchase that will allow them to back out of a deal if title can not be delivered within an agreed upon time frame, or if the buyer is not comfortable with the results of the property inspection.

What do you see for the future of real estate in the Baja California region?

As of the time of this writing, I see great values being had by buyers over the next two years in Baja beach communities. I foresee the medical service industry on the south side of the border taking market share from north side of the border. I see more people coming down to live who can work remotely and entrepreneurs offering diverse services to the large and growing expatriate communities.

You can read more articles by Mario Restrepo on Mexico real estate or view Baja Properties at www.bajaopenhouse.com.