Margaritas With The Donald

Posted by: Chris Palmeri on October 4, 2006

Donald Trump may soon have to learn how say ‘you’re fired’ in Spanish. The perpetually well-coifed mogul launched a new development, Trump Ocean Resort in North Baja, Mexico today. Located on a cliff overlooking the Pacific due south of San Diego, the 526-unit hotel condo will draw on mid-century influences of Mexican architecture great Luis Barragan. Prices for studio, one-, two-, and three-bedroom residences start in the mid-$200,000s and will range from 532 to over 2,200 square feet. The Donald is jumping on a trend. More Americans are feeling safer buying real estate in Mexico, which requires properties on the coast to have title held in a trust supervised by a Mexican bank. In recent years though, U.S. title insurers such as First American Title and Stewart Title have been offering their services south of the border. With second home values up sharply over the past few years, Mexico is looking more attractive.“I’ve always said, ‘location is everything,’ and being just 30 minutes from downtown San Diego makes this an ideal locale for a premier resort property,” Trump said in a press release.

Reader Comments

Toby Munk

October 4, 2006 12:29 AM

So the 99-year lease is back en vogue. Their grand children will probably curse any buyer given that the property will fall back to the developer in about a century. But I am sure that the building quality will be chosen such that this will not be an issue in the first place.
It will be kind of tricky to sell after about 70 or so years. That is when the "ownership" becomes more and more like a lease and the inevitable downward spiral of prices will start to grab hold. My advice to any buyers, put a few extra grand into a 100 year bond (Disney issued some in 1993) and you grand kids might actually be able to buy a replacement property.

Kevin Young

October 5, 2006 7:33 PM

This is usually the first question people ask when considering buying real estate in Mexico and now the first reaction from a naive audience. Since the change in the foreign investment law of December 1993 foreigners can now own land in the formerly restricted zones - within 30 miles of the beach and 50 miles of the border. This is accomplished through a legal bank trust known as a "Fideicomiso"(fee-day-ko-mee-so). "Not a 100 year trust." The trust takes fee simple title to the property which can be fully insured by American title insurance. The foreign owner of the trust (The beneficiary) has ownership rights which allow the property to be improved, sold, or willed. Companies like Costco, Lowes, Home Depot just to name a few, have all taken up ownership in this region in preperation for the impending American community already heading for Baja. Its good for people to do their research from both sides of the border and if done right, all will be good.

New Condos

October 24, 2006 8:58 AM

Real Estate, especially new condo development south of the border will continue to explode...even in current market conditions. Empty nesters purchasing these 2nd & 3rd are not effected by market conditions due to their equity heavy investments & wanting to downsize.

BajaSunset

February 22, 2009 3:42 PM

Trump Baja Buyers,

For information on the Class Action Lawsuit contact:

Daniel J. King
Law Offices of Daniel J. King
The Trillium Building
6320 Canoga Avenue, Suite 675
Woodland Hills, California 91367
(818) 587-9299
Worldwide Fax Toll Free (866) 260-2160
Alternate Fax (818) 587-9292

BajaSunset

February 22, 2009 3:59 PM

Trump Baja Buyers,

For information on the Class Action Lawsuit against the Trump Baja project contact:

Daniel J. King
Law Offices of Daniel J. King
The Trillium Building
6320 Canoga Avenue, Suite 675
Woodland Hills, California 91367
(818) 587-9299
Worldwide Fax Toll Free (866) 260-2160
Alternate Fax (818) 587-9292

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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