drop in US property values has made many uncertain about real estate
purchases. The current turmoil in the financial markets is both unsettling
and disturbing. All this breeds uncertainty about appropriate portfolio
I had a client call me last night and say "how much is my Baja
place worth right now?" He had only purchased it a couple of months
ago but we got a great deal that reflected any expected drop in value.
I let him know that, in this market he could only get what he paid.
His response was pure elation; " well I guess i've saved 50% of
my money as it all came out of a mutual fund". His fund had dropped
in half and he was in possession of his perfect oceanfront retirement
retreat. Meanwhile, he had preserved his equity.
OF A GREAT BUY
About 7 years ago my wife and I had cash that we needed
to "invest". Everyone was making a killing in the equity markets.
Conventional wisdom would put that money into a diversified stock portfolio.
My wife’s advice will stick in my mind forever; "buy something
that you want that will hold its value". She was referring to the
dream of an oceanfront home that had always been in my heart. That cash
investment turned into a huge equity gain for our portfolio while investments
in the market took a sharp turn south post bubble.
real notion for us was that this was a "lifestyle investment"
it did not matter if it made money as it was something we could tuck
into our "life portfolio". It allowed us to enjoy the oceanfront
lifestyle in our spare time while knowing that some day our retirement
on the beach in Baja was secured. This piece of mind was pure tranquility
However, the true lesson of this was that great investments happen when
one takes advantage of deflated markets. When things don't look perfect
and rosy and there is perceived risk in the market. In the wise words
of Warren Buffet:
People are Greedy be Fearful...
...When People are Fearful be Greedy."
is a fantastic time to buy in Baja with prices lowered between 20% &
40%. There have never
been more quality
choices in our area and great
deals with fantastic investment potential & lifestyle enhancement
abound. Cash will bring the best deals but some sellers are offering
their own financing to make their properties attractive. Check the Baja’s
Best Bargain's section for my best picks