May 27, 2011, 11:26 AM
Post #16 of 24
This is certainly the prevailing wisdom as expressed by the vast majority of experienced people who have moved to Mexico! Given the World economic situation and the glut of homes on the market in the greater Lake Chapala area, one's crystal ball might have a great deal of difficulty determining what is a good or great buy these days. Jim Cook makes a great point about the cost of renting as opposed to tying up one's cash.
I have to agree. Our original intention was to purchase but that thought has changed given the current market conditions. We have rented several houses all over the lakeside area from SJC to Chapala. You can easily find a 3 bd, 3 bth lakefront or lake-view house, fully furnished, all utilities, with a maid & gardener for $1200 - $1400 USD per month. These same houses would probably sell for 300K - 400K and you would have to pay for everything on top of that so why would we want to buy that? The same money invested properly will pay the rent and then some. You will not be tied into anything, will not have any maintenance headaches, will not have to pay a bunch of bills, will not lose a boat load of money if/when the market goes down even further and can move around whenever you want.
Now if housing prices come down dramatically (because I think the Lake is way overpriced considering what you can buy elsewhere) and/or the rents increase we may change our minds and lock into something.
(This post was edited by CanuckBob on May 27, 2011, 11:34 AM)