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Just came back from a 2 wk real estate tour. Prices seem to be in free fall with many desperate sellers. What is going on?
Should I wait to buy?
Is Lake real estate lost its appeal?
Just came back from a 2 wk real estate tour. Prices seem to be in free fall with many desperate sellers. What is going on?
Should I wait to buy?
Is Lake real estate lost its appeal?
Regards
I live in Guadalajara. There appear to be "Se renta/se vende" signs everywhere. Too bad, I plan to sell and move Stateside, ASAP.
Just came back from a 2 wk real estate tour. Prices seem to be in free fall with many desperate sellers. What is going on?
Should I wait to buy?
Is Lake real estate lost its appeal?
Regards
I follow a lot of the "living in Mexico" forums, and I would venture that the drug crime is part of why people are leaving Mexico and trying to sell their homes, even if a particular individual has not been affected. The drug crimes are in the news and seemingly spreading to other parts of Mexico beyond the borders. Other reasons for leaving I've come across are medical, wanting to live closer to family, etc. Everyone has their own tolerance for crime and perceived crime, and as one gets older, I think there is an increasing feeling of more vulnerability regardless of where one lives.
I follow a lot of the "living in Mexico" forums, and I would venture that the drug crime is part of why people are leaving Mexico and trying to sell their homes, even if a particular individual has not been affected. The drug crimes are in the news and seemingly spreading to other parts of Mexico beyond the borders. Other reasons for leaving I've come across are medical, wanting to live closer to family, etc. Everyone has their own tolerance for crime and perceived crime, and as one gets older, I think there is an increasing feeling of more vulnerability regardless of where one lives.
People move here in their 60's and want to move back in their 80's. They decide they want to be around family and friends when they become more elderly and Mexico is not handicap friendly. There are a lot of houses for sale here because there is a backlog caused by the U.S. real estate market. People in the U.S. have had trouble selling their houses for a few years and if they can't sell, they can't buy here.
There might be a very small fear of crime but so far there has been so little crime I doubt most people consider that a reason to leave. Most of the housing problem is a lack of buyers for a few years because of the U.S. market so houses have been on the market a long time just as they have in the U.S.
When it comes to an American buying a home in Mexico I'm on the fence in that respect.
Why do Mexicans depend solely on Americans etc to buy these homes? Reason is that the prices are over inflated to the point a avg Mexican National at the most part cannot afford to buy anything within reason.
Where I'm at here in Baja that is the case. Beachfront walled in starting at $350K to $1.2K at the waters edge so to speak. Sure... an American who sold his place in the US has the cash to buy here while a local National with the lower wage economy is left out in the cold. Still is not fair for the locals to be put out of the market.
I have not been to Chapala for a while so cannot speak with any knowledge but would guess that many like myself came here after turning 65 with SS etc. We do have our medical problems to some extent...if not now...guaranteed to come eventually.
Bound to be a turnover in some homes via Americans leaving and new ones arriving.
If the original Mexican builders were to ask a lower price for the homes then locals would be buying and not so much dependence on the US mkt of buyers.
I built my 1450 sq ft bi-level home over looking the ocean for just $40k including lot starting in 1996. Today material has doubled since then as has the value of my home. Still labor is cheaper here then the US so prices should be adjusted accordingly...but is not that way at all.
A bit off but to show the disparity in some prices. I buy a large bag of dog food in SD Calif for under $20 while the same item in Rosarito sells for $34. Now who is doing what to who when it comes to a fair mkt price?...taking into consideration the trade agreements.
Sorry to wander...I have a bad habit of doing that occasionally.
If the original Mexican builders were to ask a lower price for the homes then locals would be buying and not so much dependence on the US mkt of buyers.
This is just one side of the story. The other side is that higher real estate prices increase equity for Mexicans who already own homes and land, create jobs, develops infrastructure, etc. Generally speaking, wherever tourists/expats choose to invest, everyone wins (economically speaking).
A bit off but to show the disparity... I buy a large bag of dog food in SD Calif for under $20 while the same item in Rosarito sells for $34.
And if you bought the "made in Mexico" brand it would likely cost just $10 per bag. Mexico has high import tariffs to encourage buying its local products. The downside to Mexico artificially regulating market prices is that its own products suffer from a reduced need to be competitive. With high tariffs, Mexico simply 'buys' its market share for products. With low tariffs, it would have to 'win' its market share with product innovation, quality, and service. Mexican citizens crave imported goods, because the product design and quality are typically far better. But they also know there is a steep price to pay.
When it comes to an American buying a home in Mexico I'm on the fence in that respect.
Why do Mexicans depend solely on Americans etc to buy these homes? Reason is that the prices are over inflated to the point a avg Mexican National at the most part cannot afford to buy anything within reason.
Where I'm at here in Baja that is the case. Beachfront walled in starting at $350K to $1.2K at the waters edge so to speak. Sure... an American who sold his place in the US has the cash to buy here while a local National with the lower wage economy is left out in the cold. Still is not fair for the locals to be put out of the market.
I have not been to Chapala for a while so cannot speak with any knowledge but would guess that many like myself came here after turning 65 with SS etc. We do have our medical problems to some extent...if not now...guaranteed to come eventually.
Bound to be a turnover in some homes via Americans leaving and new ones arriving.
If the original Mexican builders were to ask a lower price for the homes then locals would be buying and not so much dependence on the US mkt of buyers.
I built my 1450 sq ft bi-level home over looking the ocean for just $40k including lot starting in 1996. Today material has doubled since then as has the value of my home. Still labor is cheaper here then the US so prices should be adjusted accordingly...but is not that way at all.
A bit off but to show the disparity in some prices. I buy a large bag of dog food in SD Calif for under $20 while the same item in Rosarito sells for $34. Now who is doing what to who when it comes to a fair mkt price?...taking into consideration the trade agreements.
Sorry to wander...I have a bad habit of doing that occasionally.
This is also a bit (way) off the thread - but I agree with Steve about the dog food issue! I know he has two big dogs and so do we, and no matter where we shop (big grocery store or local feed store) the price is at least double what we pay in the states.. There are a lot of dogs here, both 'gringo' dogs and Mexican dogs. I often wonder how some folks can afford to feed their dogs when the price to feed one dog for a week could be equal to 1/4 of many weekly salaries. {I believe a lot of dogs here must get fed table scraps}.. Yes, I was wandering a bit, too...
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