The annual cost to own a home or condo in Baja can be a mystery to first time Baja home buyers. But there are just four basic home related costs to consider and all of them have a cost advantage when compared to a similar state-side property. The first cost to consider is property taxes which for every Baja home and condo range from about $100 to $400 USD. In Mexico, property taxes called the “predial,” are paid in January, and if paid on time many times a discount is offered. Baja property taxes are about 1/12 of California property taxes, and about 1/6 of Arizona’s property taxes.
Another cost to consider if you would like to own in Baja is homeowner insurance. This past week I received a quote for a policy for a luxury Baja condo of over 2800 square foot which included $200,000 USD of damage and $300,000 USD of liability coverage for $398 USD annually. In the US rates are given by zip code, but in general you may find ocean front or coastal property insurance rates to be about ½ in Baja of what you would pay stateside.
Next, monthly association fees in the greater Rosarito area run from about $80 a month for barebones and efficient to $650 usd a month in a low density or luxury community with a lot of service and amenities included. This may not seem like too great a savings but these amounts are for ocean front communities in which there is more needed maintenance and many times special ocean front amenities and protections in place. If you were to compare ocean front community association fees stateside versus Baja, once again, you may find Baja to be about ½ the cost.
The last of your expenses is maintenance to your place which is not covered by your association payment. If you are a very meticulous owner and like to keep your place in tip top condition then you can enjoy very high savings here compared to maintaining your place in the US. As we all know and expect labor is economical here. But don’t plan on saving too much when it comes to materials because in many cases materials are a touch more expensive in Mexico. But this is one of the advantages of living so close to the border.