Every luxury development offers a certain combination of amenities which sets them apart from the rest, some of which now seem to be standard are: pool whether it be infinity or indoor, workout facilities, event rooms, steam room and Jacuzzis. In addition to these, Baja’s  luxury developments currently offers several other amenities resulting in a combination not easily found elsewhere: tennis and basketball courts, full service spa, business center, game room, movie theater, lobby library, bistro, convenience store and beach access and best of all, a shuttle that will pick you up from San Diego airport, drive you to Ensenada, take you grocery shopping and even take your family on tour when they visit.

Several luxury developments in Vancouver such as The Qube and Harbourside Park, present fewer amenities than Palacio del Mar, though they offer storage; with Harbourside Park also having guest suites. The Beach Club, in Miami Florida, has cabanas, event catering and beach and poolside service. The Metropolitan, Park Place, Meridian, and Electra in downtown San Diego offer fewer amenities than Palacio del Mar but with a different combination, as an example they may have a movie theater but no tennis courts. Every development will have a different view for their resident to enjoy, in downtown San Diego there is the bay, Petco Park or street view, Vancouver has the marina, the Pacific and probably a view of the mountains depending on preference and location, Miami has also street view and the Atlantic; Baja offers the majestic Pacific with beautiful sunsets telling the coming of the end of the day.

With out considering the amenities and taking into account that the residences’ interior are very much the same materials (i.e. granite, hardwood, etc), all we are left with is floor space with which to compare.  While Palacio del Mar gives you floor plans of little over 2000 to 2800 sq ft starting at $350k, many of Vancouver condos’ square footage is considerably less than 2000 sq ft with a price tag of $700k for less than 1000 sq ft to over 1.5M for 1500 sq ft, to well more than 3M for more than 2000 sq ft ; now looking at Miami and their levels of luxury (from inexpensive to moderate to expensive) the same space Palacio offers can cost anywhere from 1M to well over 6M. Downtown San Diego is no different, with a price tag of just below 1M to around 3M.

Home Owner Association (HOA) fees are also something to consider; while in San Diego condos have HOA fees ranging from $700 to over $1100, in Miami they can be $0.6 to more than $1.0 per sq ft; as a contrast, Vancouver’s fees are around $400 to $600; whereas in Baja’s luxury communities the are $450.  As far as taxes go, Miami comes in as the highest with 2% of the purchase price, San Diego is approximately 1.2%, in Vancouver however is on average less then 1% ( 0.5%) and in Mexico property taxes are 1%. Even though property taxes in Vancouver may be less than half than what they are in Mexico, you will still end up paying less taxes than in Vancouver given that ultimately the purchase prices in Baja are considerably lower.

Something more to consider is cost of living, although it varies for individual cases, it is a rough estimate indicating highest and lowest figures taking into account all four locations: groceries (for a small family) can have a monthly cost of $500 in Baja to less than $800 in San Diego (both of which can be considerably lower for bargain hunters), gas is currently $2.6 per gallon in Baja with the highest being Vancouver with a cost of $4.46 per gallon; health care premiums for individuals can be about $2000 in Mexico (much lower for government health care) and around $3000 or higher depending on the policy or deductible in the US (also varying in each state); recreation and entertainment: $2.7 in Baja for a movie ticket vs up to $13 in Vancouver, golfing in Baja starts at about $40 compared to  about  200-300 San Diego.  These are just a few examples that can give an idea on what the cost of living is in Baja compared to Miami, San Diego and Vancouver.

Weather wise, San Diego and Rosarito have very similar conditions, temperature ranging from  50–68 °F in winter and 73–80 °F in the summer, Miami’s average temperature goes from 69 – 83 °F, where as Vancouver’s temperatures rage from  5°F  to 95°F with snow in December and January. Warm weather with a fresh sea breeze and no hurricanes or tropical storms to worry about are a definite a plus for Baja.

As far as activities are concerned, each location has its own areas distinctly different for a variety of indoor and outdoor activities; it all depends on individual preferences.  Surfing, camping, dinning, hiking, culture, night life, shopping and  getting pampered are found in al four cities, Rosarito has years round events including lobster, wine and taco festivals, among others such as beach side opera an many dance and musical recitals,  which present residents and visitors with Mexican culture. One significant difference of Baja’s luxury developments compared to those of  Vancouver, San Diego and Miami, is that is not located is a major metropolitan area; located a few minutes away from downtown Rosarito, is far enough away to be a quiet getaway with the advantage of being a short drive away from Guadalupe Valley, shops and lobster.

The reality of luxury living in Rosarito is that it does not have to have a heavy price tag; serenity, security and entertainment can be wrapped up in the beautiful package that is Baja bringing the same level of comfort you can fine in any other place.

The number of housing and condo developments in the Baja California coast increased significantly in these past years; as a result of the boom in constructions and the current market conditions opportunities are arising for the knowledgeable investor who can expect a significant return on the investment after the market has recovered, or the American retiree considering moving to México .

Baja California has been attracting retirees for decades with its perfect weather, affordable beachfront housing and accessibility to U.S. services; in response to this the medical infrastructure has been updated with state-of-the-art hospitals covered by some US insurance companies; assisted living services have been created which combined with the continually increasing purchasing power of the dollar against the Mexican peso, have given these retirees not only a secure economic future but an upgrade on their lifestyle as well while extending their income by 3 years per each 10 of retirement funds.

The number for Americans living in Mexico was reported to have increased by 17 percent from 1990 to 2000 in regards to the previous decade; this number could very well double for this decade since the people looking to relocate to Mexico are not just baby boomers anymore, but people sent by businesses, families, some commuters who could not afford the rising real estate prices in California a few years back chose to live in Baja and work in the U.S.; others such as men and women in their thirties and forties looking for a slower pace of life have started their own companies and also settled here.

The Baja peninsula is currently estimated to have around 250,000 of American expatriates , with approximately 12 percent of them living along the Tijuana – Ensenada corridor and almost half of them choosing Rosarito Beach . For these people neither health concerns nor security issues are enough to drive them away from a place they have come to call home, instead they speak out against the negative publicity Baja has received expressing their likes of life in Baja.

Considering the above reasons of why acquiring Mexican real estate is an appealing option, the question is then, how come the Mexico real estate market and particularly the Baja California region which is one of regions leading the retirement trend are faced with a slow turn out in sales? The answer could be simple: financing. The slow down in the economy has significantly reduced the number and type of loans the financial institutions are issuing, including those who in previous years offered loans for investment in Baja real estate . With fewer institutions providing loans for these kinds of investments qualifying becomes more and more difficult, even serious buyers are sometimes turned down.

In response to this current situation some developers in Baja are starting to offer In-house financing, which alleviates the dependency of this real estate market on financial institutions by providing loans to buyers directly from the developers or the developments. Some of the advantages this type of loan gives buyers are the following:

• It requires no property appraisal.
• There is a higher possibility to of getting customized loan terms not provided by other lenders.
• It is not a rigorous screening process, which makes it available to people with lower credit scores.
• It identifies a financially sound seller.

Not all Mexico real estate developers or developments can offer in-house financing, since in order to provide it they need to have enough money to cover expenses and cash flow.

Kathy Katz has been a resident of Baja California for 18 years and the boker for the Baja Real Estate Group , with years of experience in this area she knows very well that a buyer must be careful and work closely with their realty company in figuring out who is offering the best options. These are the key things she mentions you must look for in an investment and their in-house financing options if available:

• It is important that title is transferred into the buyers name and a lien placed on the property, much like in the US.
• Ask about pre-payment penalties if any.
• Make sure that when the all payments are made you have the developer sign off your lien in front of a Mexican notary.
• It is important to get a statement of your closing cost.
• Always ask for a certificate of No Liens

In house financing brings the possibility of more buyers coming in to the Baja real estate market; as more capable developers begin to offer this opportunity to buyers, the demand for beachfront property will continue to increase since it will not entirely depend on banks and other financial institutions for providing the buyer with funds to complete a housing transaction. With this, the chances of getting more for less money will steadily or rapidly decrease; as was the case with the previous boom that started early in the decade which had prices rising 10% to 15% per year.

The demand for coastal real estate in Baja California still exists, the lack of purchasing power brought about by the economy is one of the reasons for the slow market; when you make funds available for the prospect buyers and combine it with the current prices the possibility of a next boom is not so farfetched.

Perfect for a romantic getaway or a family vacation, this part of Baja offers you a number of choices for entertainment. If you choose to venture into the wine valleys, you can start from Tecate in the north, sampling the beer that bears the town’s name, the Cuauhtémoc brewery, founded more than 110 years ago, offers guided tours of their facility Monday through Saturdays, from there you can continue your journey south  by highway #3 which will take fist of all to the Tanamá Valley where Tanamá Wines awaits with its beautiful gardens; continue on and you will reach Valle de las Palmas, there you fill find the Cavas de Don Juan where you can stop by and visit their store which offers products such as grapes, honey, olives and olive oil. To the south of Las Palmas you will find the Guadalupe Valley, also known as Calafia Valley, home of the two largest wine producing houses in the country Casa Domecq and L.A. Cetto where you can sample award winning wines and enjoy a tour of the cellars and fields, this valley is also home to Monte Xanic, Chateau Camou, Adobe Guadalupe, Biyaboff with its Russian heritage, Baron Balche where you might just want to take a closer look at the sand by the caves, you’ll be surprised to discover you are standing on grape seeds. Continuing the route further to the southwest, San Antonio de las Minas Valley awaits with Casa de Piedra who offers a course on wine growing, Viña de Liceaga, Viñedos Lafarga, Vitivinícola Tres Valles, Vinisterra, one of the newly established wine makers in the region, all of which offer tours and sampling, some require reservations. If you continue south, 90 km past the city of Ensenada you will arrive in San Vicente Valley home to Vides y Vinos Californianos.

Another option is to start from the south, taking the scenic route (highway #1) all the way to the third toll booth, before entering Ensenada look for the highway 3 exit (Ruta del Vino), toward Tecate, which will take you to the San Antonio de las Minas Valley. Tourist offices in Baja can provide you with a map of the wine route.

Considering that this area is home to around 50 wine producing houses from the large internationally know to the small family owned artisan wine producers, a lot of which are gaining international acceptance winning awards in Nappa Valley, Ensenada and Europe, it is impossible to list all of them and their particular qualities. The best way to experience them is to come down for a visit, along the Wine Route you will find choices of dining from family restaurants to fine cuisine, ranches for camping, artisan centers, museums, wine boutiques, art galleries, small inns and B&B’s, Viñedo Adobe Guadalupe has its own six bedroom B&B plus stables where you can go horseback riding, all of this and the beautiful natural surroundings make this a special tourist destination. Whether or not you come for the wine; the food, ranches and other recreational areas still makes the trip worth while.

The history of wine making in the Baja valleys is speculated to go all the way back to Hernán Cortés, who in 1524 was the appointed governor of the “New Spain”, ordered the planting of vineyards each year for 5 years, having as a result a grape that was known as “criolla” and with it establishing the first wine-producing haciendas in Coahuila, Mexico. During the 16th century, the wine production was extended by the Jesuits to other parts of southern America like Argentina, Peru and Chile; by the 18th century it had extended to Baja California and parts of western United States.

The first vineyard in the peninsula was planted by Father Ugarte a few years after the Nuestra Señora de Loreto Concha mission was established in 1697 in the town of Loreto in Southern Baja. In 1888, on what was the Dominican Mission of Santo Tomás, Francisco Andonegul and Miguel Ormart started the vineyards and wineries of Santo Tomás still in operation today, making this the oldest continuously operating wine producer in Northen Baja. Around 1904 Russian molokan immigrants and their families opposing the war, fled Russia to avoid being recruited by the Czarist armies, originally settling in the Los Angeles area, they soon ended up in Guadalupe Valley, where they purchased land to cultivate their grape cuttings, along with oats, grasses, wheat and barley brought over from Europe. These Russian farmers where the first to bring wine production to a large scale within the valley; the Bibayoff winery, established in 1970 is owned by descendants of that group of immigrants continuing with the family tradition that started in the 1930’s; this winery along with Casa Domecq, established in 1972; followed by L.A. Cetto in 1974 marked the growth of the valleys into what they are today.

If you have ever requested wine with your meal while visiting Baja, chances are that you’ve tasted some of these wines, in case you haven’t and are unsure to make the trip, there is a closer starting point, L.A. Cetto has a facility close to downtown Tijuana, where they offer free tours of the cellars and sampling starting at 2 dollars; several cultural activities such as concerts, and plays are presented in their venue, also available for your social or business events; more information here.
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A warning for those living in the U.S.; you will be tempted to purchase more than one bottle of wine to take back home with you. When you come to visit these valleys, be sure to read this information; it tells you how much wine you can bring back with you to the U.S. To everybody living in Mexico, feel free to take home as much Baja wine as you like.

Costal Baja has long been a preferred choice of retirement, relocation or vacation for Americans who want the lower cost beach front living experience, and the closeness to the US. This brought a growing number of real estate developers to Northern Baja, and construction of resort communities designed for expatriates were being developed all along the coast.

Since the slowdown of the real estate market in the US, several construction projects in Baja slowed down or completely stopped in the past year; as a result of this some of developers refunded the investment partially or completely, others transferred the property to another development, but still a number of investors were left with out money and property.

With all of these less than reassuring stories you are left with uncertainty and doubt. What then, are you to do if have your heart set in purchasing a home in Baja?

As with everything, the best advice any one can give, is to do your homework. When interested on investing on pre-construction and pre-sale developments, a few of the questions to be answered should be the following:

• Who is the developer heading the project?
• How many years have they been in business?
• What other projects have they finished and what is the quality they have presented?

Proper research to answer these questions along with a reputable Mexican real estate broker with experience in pre-construction and pre-sale can bring pace of mind to what otherwise could be a daunting experience.

Two of the developments along Baja’s coast which have continued construction through these tough times, are Calafia Condos Resort and Villas and Palacio del Mar ; the first a well known community in expansion, the second a new development promising luxury at every turn.

Grupo PES, with more than 25 years of experience is one of México’s leading real estate development companies; they have completed projects both beautiful and elegant in central Mexico such as Villas del Lago Residencial, six apartment towers within an old hacienda complex. Residencial Insurgentes 116, a 14 story 76 unit high rise in Mexico City, is also one of their recent developments completed in 2006.

Their current Baja real estate project, Palacio del Mar, located just 10 minutes from downtown Rosarito, has not stalled construction since it began on spring 2006. As a manner of giving peace of mind to prospect buyers, it should be noted that Palacio has escrow. This complex has been designed to provide a lifestyle of unparalleled luxury surrounded by the breathtaking landscape of Baja. This complex offers a 25000 sq. ft. club house and a granite bottom indoor pool as well as a movie theater and business center among many more amenities.

Calafia Condos and Villas, a long established community that Grupo Gor and his partners began in the early 1990’s with the construction of the first tower, since then it has grown to a complex of 2 condos towers and 35 villas, all of which sold out and were delivered with title. The current construction is for the third condo tower, one of the fast moving projects on the coast, as part of the expansion of this community which now includes a new ocean front club house, ocean front pool and a gymnasium; this expansion is also said to bring a conference room, game room and putting green to the many amenities this resort community already offers.

Slowly but surely, the economy will recover, and with this will come a new development boom in Baja with its share of success and discouraging stories. None of that though will take away from the beauty of the region and the peace and nourishment it can bring to resident and visitor alike. Information is the best tool everybody has at their disposal as well as the choice to seek and make use of it.

US store names like Home Depot, Wal-Mart, Smart and Final, Applebee’s and Ashley Furniture are some of which are becoming more common in strip malls around the area. State of the art medical facilities equal to those on the US have been and are being constructed in order to provide quality medical care services to the growing number of foreign residents, the only difference being the lower cost.

The area between Rosarito and Ensenada just 45 minutes south of the border has become the preferred area, where developers are also getting on board by bringing amenities to these new homeowners. Calafia Condos & Villas is one of these developments, where their new tower offers more amenities and social atmosphere for people with an active lifestyle. Plus, it is pet friendly. Some of these amenities include a club house with a TV room, game room, computer area, large gym, outdoor and a private Jacuzzi. These amenities are becoming standard for new communities.

A current resident of Northern Baja, Karen Erstad says “I purchased a second home in Las Gaviotas, (an established Northern Baja community), over 10 years ago with the intent to someday live my retirement years by the Ocean”.  When she decided on early retirement and make her move, her family and friends thought she was not on her right mind. Even though she would be only a 2 hour drive away, their primary concern was medical care and the question of who would look after her.

Some doctors in this Rosarito-Ensenada area are willing and do still make house calls; there are also excellent medical facilities throughout the state. Serena Senior Care is a corporation dedicated to improve the quality of life for senior residents in Baja; among their services are nursing assistance and doctor visits, which gives family members’ peace of mind. In addition, ocean front developments in Baja are largely inhabited by expatriates making them very tight communities, who look out for one another.

Karen continues by adding “I can also put my own concerns at ease, by moving to Mexico I can live the same lifestyle if not a better one as if I were still working”.

Karen is one of many Americans discovering the benefits and lower cost of in-home services that the Northern Baja region offers; furthermore, with the increased purchasing power of the US dollar against the Mexican peso they can lower their monthly expenses considerably, here is an example:

• Grocery bill around 250 dollars a month for a small family.
• Cost of a movie for two people from less than 11 dollars including popcorn.
• Doctor visits starting at around 20 dollars.
• Internet Access and Cable TV from 60 dollars.
• Property taxes average 300.00 dollars and up per year.
• Game of golf starting at 35 dollars
• Private bilingual school around 175 dollars monthly tuition
• Hair Salon hair cut and color can start at around 27 dollars

Eating out

• McDonalds, less than 4.50 for a super size combo
• Chinese food, less than 4.50 for a “lunch” (enough for 2 people)
• Traditional Mexican food, complete meals from around 4 dollars.
• 5 star meal starts at 20 dollars per person.

Most of these coastal Baja developments are also located just 10 to 15 minutes from the newest hospital in the area. Downtown shopping, and a 45 minute drive to the wine country, where on Wednesday and Saturday they offer an organic farmers market. Living in these communities Americans have the same lifestyle as they currently have back at their homeland but for much less.

Max Katz a long time reputable real estate broker says “Due to the entire housing inventory on the coast, developers set themselves apart by offering more amenities, services and discounts”. He continues saying, “Not only the newer developments are following the trends, even long time established communities such as Las Gaviotas, an ocean front community that has been a model of success for retirees over the last 35 years, are upgrading to larger gyms, creating social committees and having weekly golf and tennis tournaments”.

Clearly, relocating to Northern Baja California has become a solution for Baby Boomers and American retirees against the economic crisis. Especially for those who would like to remain closer to their families and amenities in the US. For others, is just good business.