Mexico Connect
Forums  > General > Living, Working, Retiring


Tom

Jun 29, 2003, 10:41 AM

Post #1 of 23 (3664 views)

Shortcut

Property values in Mexico

Can't Post |
One thing has stood out in my mind from the beginning of Rolly's construction project is the price of the land. Can anyone tell me why land is so high priced in Mexico (considering wage levels)? Sure, "location, location, location", but how can people afford it?

I have had rural folks talk of land prices for building around their pueblo as "barato, barato". One middle-aged immigrant here in the Midwest who is from Rolly's town told me her mother was selling her plastered brick house on a decent sized lot (toward the edge of town, if I remember right) with a few fruit trees for 50,000 P. She discribed the house size and lot size in meters and we did a little map. I've forgotten the dimensions, but the house was, I think, 5 m wide x maybe 12-15 m long. I've forgotten the lot size, but it was a corner lot with plenty of space left over (could have been 20 x 40?). This price matchs what my Veracruz state friends report paying for about equivalent property they've been buying with there savings from up north. Florencia bought a lot in her home town for 20,000 p. Her aunt just bought a house in Veracruz city for 50,000 p to use as a rental. The report was that it was a real bargain, and in a OK neighborhood. Do many expatriots buy land directly from owners? I'd love to hear land buying tales and costs, both in pleasing residental areas of cities and city-accessible rural living.

Sure Mexico is a big country, and folks have different kinds of attitudes about what is nice, or affordable, necessary, "whatever fits", "different strokes for different folks", etc. Rolly didn't go through that standard litany, instead he published a blow by blow report of what the costs were, how the progress went, where the problems came in; and it is invaluable information because it is true. One can extrapolate a lot from what Rolly reported - last year, this year and for a few years to come. Sure prices change from time to time and place to place, but a thinking mind can work with that.

Sure again, you can't generalize, but then again, you can't do business well (or even think well) if you don't. Sooner or later your intelligence will want to make a pattern out of an array of isolated facts. Without that ability to think in the aggregate we would all be living without a civilization. Who doesn't want you to think in the aggregate is a saleman. Because the market is an aggregate, and who knows it best wins. My guess is that the Mexican real estate world is a more chaotic market than we northerners are used to. But what are its parameters and where are its concentrations. Sure it changes from one year to the next - so does the price of coffee from second to second in Chicago. But those changes don't stop the sons and daughters of cafeteros from crossing over to el norte - because the prices change in a somewhat patterned range (all of bad in their case). The change is just noise, the truth is you can't live on it.

Another question is who the heck owns property in Mexico? For all the poverty, along with the tough luck of the middle class, it is hard to figure who has enough to own all of what you see - both rural and city. I've got a hunch that the cheap property taxes contribute to a situation where there are a lot of sleepers (unlikely people who own more than you could think and are doing little or nothing with it). More than once I have been in a conversation with someone of apparent very modest means (rug weaver, marginal restaurant runner, false antiquity peddler) who took me to property they owned and would rent or sell. In some cases with idle buildings. People are in Chicago singing in restaurants and living in 8 x 10' rooms in basements who own a houses in thier Mexican towns and fincas of cafe and oranges in the outlying area.



Brian

Jun 29, 2003, 11:03 AM

Post #2 of 23 (3651 views)

Shortcut

Re: [Tom] Property values in Mexico

Can't Post | Private Reply
Rising real estate values in the US are putting pressure on land south of the border. Here is an article excerpted from today's San Diego Union-Tribune:

The Baja option


Mexico offers relief from high San Diego housing costs



By Emmet Pierce
STAFF WRITER

June 29, 2003

The San Diego region's affordable-housing crisis is becoming an international affair, as increasing numbers of U.S. residents look to northern Baja California for low-cost shelter.

Like southwest Riverside County, Tijuana has become a safety valve for San Diego County workers who find themselves priced out of costly apartments and a skyrocketing real estate market, says demographer Rodolfo Cruz Piñeiro of El Colegio de la Frontera Norte.

Despite lengthy border-crossing delays since the Sept. 11 attacks, Baja California offers viable housing to expatriates who can adjust to life in another culture, Cruz holds.

Based on Mexican census data and employment surveys, the researcher estimates the number of legal U.S. residents now living in Tijuana alone at between 50,000 and 60,000. They largely are a mixture of American citizens and Mexican nationals with documentation to live and work north of the border. The population is in "an upward trend," but more studies are needed to fully understand the phenomenon, he said.

The recently deceased Chuck Nathanson, who promoted cross-border cooperation as executive director of the San Diego Dialogue group, recognized Baja's growing attraction to Americans in search of inexpensive shelter.

"The binational housing market has been with us for a long time," he said in a recent interview. "It has been true for mainly Spanish-speaking people, but the

affordable housing crisis has extended its scope and reach into the community."

While the average rent for a two-bedroom apartment exceeds $1,000 a month in San Diego County, Cruz said two-bedroom apartments in Tijuana can be found for $400.

The search for affordable shelter is drawing away residents on two fronts. Many San Diego housing refugees move to Riverside County. An estimated 29,000 commute to work from that jurisdiction. There is no consensus on the number of San Diegans who have moved to Baja, however. In 1992, San Diego Dialogue surveyed cross-border travel patterns, estimating that 10,000 U.S. citizens who resided in Mexico were making the commute.

With the escalation of home prices in recent years, that number may have greatly increased, Nathanson said. The California Association of Realtors estimates that a household income of $92,000 typically is needed to purchase a median-priced home in the San Diego region.

If not for border-crossing delays, "you would see a tremendous boom in the housing market down there," Nathanson said.

The San Diego Association of Governments has come to recognize that a sizable number of local workers are commuting from Riverside County and Mexico. "As our housing prices continue to rise, more people are making the choice to live outside our borders," said Jeff Tayman, the agency's director of research and information systems.

Jearl O'Neal, who works for San Diego Data Processing Corp., has moved to Mexico twice in recent years to take advantage of cheaper housing. He learned Spanish while renting a home near Tijuana.

"It had a different feeling from the hustle and bustle of San Diego and was truly more affordable," he said of the border community. "I could rent a three-bedroom, furnished home with a 30-foot terrace overlooking the Pacific Ocean for $750 a month."

Not all rental housing is so desirable. Many dwellings lack central heating. Despite the savings, family law attorney Kacey Coony says Americans should think hard before moving to a developing country.

Moving south

Unable to afford a home in San Diego, Coony commutes to Rosarito Beach, where she lives with her family. For the most part, Americans who choose to live in Mexico are a breed apart, she stressed. "You tend to find athletes, adventurers, convicts, retired people who are on the more adventurous side," she said.

"If you don't know what you are doing, it can be dangerous. The people drive differently. The laws are different down there. There is not a basic premise that you are innocent until proven guilty."

Many border watchers say there is plenty of anecdotal evidence that Americans increasingly are looking to Baja California for affordable housing. Dennis Peyton, an American who practices real estate law in Tijuana, has observed a sharp rise in the number of U.S. residents living south of the border.

"There is no question," said the attorney, who commutes to Tijuana from Chula Vista. "It is safe to say that it is increasing every year. I get requests for information every day."

Some San Diegans have come to view Tijuana more as a low-rent neighborhood than a foreign city, said Steve Kellman of the Tenants Legal Center. Mario C. López, director of operations for the Chula Vista-based South County Economic Development Council, is living there until he can save enough to buy a home in the United States.

"In San Diego, it is hard to afford appropriate housing," the U.S.-born López said. "You can't afford a house. You have a one-or two-bedroom apartment. For the same amount in Tijuana, you have a little house on the beach. You can have a middle-to-upper-class lifestyle."

O'Neal remembers his time in Baja with fondness. Coming home each evening was "like going on vacation," he recalled wistfully. "I would leave my troubles at the border. The people in Mexico are friendly and open."

Peyton enjoys working in Baja, but he isn't ready to live there. "I want my children to go to certain schools that I don't think are available in Tijuana," he said. "There seems to be a lot of problems with services: electricity, water, what have you."

Don't ask, don't tell

While researchers like Cruz are trying to paint a more complete picture of cross-border residency, prejudice against hiring Baja residents in the United States has made some "hesitant to publicize the fact that they live in Mexico," said Kellman.

Some American employers fear that border delays will make their workers chronically late, he explained. Others dislike the idea of having to make an international phone call to reach employees after hours.

American-born Jorge Herrera, 22, isn't living in Tijuana by choice. Raised in San Diego, he says he was driven south by high apartment prices. The security guard lives with his Mexican-born wife and year-old daughter in a home owned by his wife's parents. Herrera routinely commiserates about his long commute to work with fellow Americans at the San Ysidro border crossing.

"You are surprised every morning at 5 a.m. how many Americans you see in line," he said.

The presence of Americans in Baja reflects San Diego County's status as one of the costliest housing markets in the United States. Home prices continued to set record highs in May, as the median cost of a dwelling hit $375,000. That price is beyond the financial reach of more than three-quarters of the county's population.

The vanishing dream of homeownership in San Diego is sending residents into the Mexican market. Peyton, who wrote the 1995 book "How to Buy Real Estate In Mexico," said acquiring a home south of the border can be confusing. The attorney says some Americans follow the law only to find themselves embroiled in title disputes.

Potential buyers should seek legal advice to make sure trusts are legitimate and properties have no liens, said Diane Gibbs, who sells real estate in Baja California. In the "restricted zone" within 31 miles of the coast and 62 miles of the border, foreigners cannot own land outright. Americans typically lease the land or acquire a land trust, which gives them ownership rights through a Mexican bank.

Most trusts last for 50 years and are renewable, Peyton said.

San Diegans worry about the growing housing crisis more than any other municipal problem, according to a citywide poll released last summer by the San Diego Organizing Project. Despite the inconvenience of living in a foreign country, Mexico "has acted as a safety valve for some time," said Robert Turner, a former banker who specializes in affordable housing.

"The unfortunate byproduct of that is local government hasn't been forced to come up with policies that would ensure adequate housing for people at all income levels," he said.

Andrea Skorepa of Casa Familiar, a nonprofit community development agency, doesn't need more studies to convince her that more county residents are moving south. "I know of many non-Spanish speakers who are over there," she said. "If it is not for homeownership, it is to have an adequate rental unit."

The fact that some Americans would turn to a developing nation for shelter underscores the deficiency of San Diego County's housing inventory, said Randy Shaw, director of the San Francisco-based Housing America group. "It's a sad comment."





Copyright 2003 Union-Tribune Publishing Co.


raferguson


Jun 29, 2003, 6:53 PM

Post #3 of 23 (3626 views)

Shortcut

Re: [Tom] Property values in Mexico

Can't Post | Private Reply
I have read articles about Mexican residents of the USA who spend a significant portion of their income building nice or even ostentatious houses in their home village in Mexico. Some of it is the idea that they will come back someday to live, some of it may be showing the people back home that they have made it in the USA, even though they may have been poor in Mexico.

I don't understand housing prices either, in the US or in Mexico. I understand that many Americans living in the USA live in houses that they bought years ago, but could not afford to buy at current valuations. How can US housing prices of $500,000 USD be supported long term when few Americans make enough money to pay the mortgage on that much money? If interest rates go up, then it seems likely that housing prices in the USA will fall significantly.

One thing to keep in mind is that Mexico does not have the kind of mortgage system that we have the USA. Because of devaluations, inflation, etc., borrowing money in Mexico is much more difficult and expensive than in the USA. I am not an expert on the subject, perhaps someone could inform us about their mortgage on a house in Mexico.

I agree that prices in Mexico seem much higher than make sense in terms of the Mexican average income, but I guess that is why a large percentage (maybe half) of Mexicans are considered to be poor.

I believe that your assessment of the housing market in Mexico being somewhat chaotic and inefficient is probably correct. Personal contact is usually regarded as the best way to rent, and perhaps to buy, a house, rather than the newspaper classified ads.


http://www.fergusonsculpture.com


jrice

Jun 29, 2003, 9:38 PM

Post #4 of 23 (3608 views)

Shortcut

Re: [Tom] Property values in Mexico

Can't Post | Private Reply
I suspect that the Mexican real estate market IS more complex than that in the United States, though I'd bet that any market looks complicated to somebody coming in from the outside.

There are a lot of VERY cheap places in Mexico. (And some fairly cheap places in rural Kansas, for that matter). A congregation of Americans tends to have an upward effect on prices, if for no other reason than that it increases demand for a geographically limited supply.

If you go to an area where the economy is booming, prices will be higher, as in the United States.

Among the factors are:
-- relatively poor or costly transportation (which makes it less feasible to live far from the area that attracts you, thus reducting the geographical supply of land)
-- land title problems: much of the country is legally either communal or ejido property. All property, including private, can be affected by disputes over ownership that commonly extend back for centuries. Clear, open titles thus become more valuable (if sometimes misleading).
-- You do have, in a number of urban and resort areas -- the sorts of places that attract Americans -- a well-to-do local class. A few years ago, at least, some studies showed mid-level Mexican executives made more than their U.S. counterparts (scarcity of quality supply).


Tom

Jun 29, 2003, 10:07 PM

Post #5 of 23 (3604 views)

Shortcut

Re: [raferguson] Property values in Mexico

Can't Post |
You make some good points. I know a woman working in the Midwest who is has purchased two lots in her pueblo and is saving to build a 5 bedroom house for her parents, brother and sister and her grandparents to live in. It was $2,000 for the lot and she has $10,000 for the house (half of what she needs). After the second half is saved she will start on saving for her own house. There are quite a few Mexicans in the USA who are supporting their parents and sibling and building homes for them. With a house they can live in their pueblos, make very little money and not be really poor.

I have the sense that many Mexicans with disposible income and no knowledge of or access to abstract national and international stock markets feel property is better than money in the bank - having more constant value.

Now here is another tale: I met a person who built a few houses in Mexico using aethetic judgement, contacts with workers, and knowledge of available materials. That person lived in the houses and from that vantage point was able to sell these them to the English speaking luxury market at range of 300% to 400% over costs. I think the key features were tastes and social filtering (being a believable provider of a luxury home). I found this to be true in the art market: moneyed people, often not secure in their own judgement of art, needed a respectable gallery to double the price, and thus insure value. The artists approaching the same buyers directly would never be believeable providers of value. You need a go-between who shares values and affectations with the buyers. My old dealer was the wife of a psycho-therapist, and he always said she knew more than he did. Now never even in his wildest fever-induced dream could a contractor/builder in the USA dream of getting those kind of multiples over costs. There is a curious wild card here.


Villa de RQ

Jun 30, 2003, 6:07 AM

Post #6 of 23 (3585 views)

Shortcut

Re: [jrice] Property values in Mexico

Can't Post | Private Reply
Property Values in Mexico:



As a future resident of Lakeside, Chapala, I track real estate values through the listings of 6 different realtors. The listing do not hardly change over a six month period and some of the listings,that are listed as sold were actually sold over a year ago.

Also, listed prices to sold prices do not correlate.

My findings tell me one cannot evaluate the Mexico real estate market using the same metrics we use in USA.
Bernie Gudaitis


pedrito naco

Jun 30, 2003, 7:52 AM

Post #7 of 23 (3568 views)

Shortcut

Re: [berniegu] Property values in Mexico

Can't Post |
i will only speak to the area we are moving to which is the lake chapala region.we have more or less excluded ajijic because of some of the reasons already alluded to in this thread[huge markups over cost] and gringoized resale prices because it is a gringo ghetto.

the agents claim they have almost all the properties available,listed-ja!

on our walk arounds we discovered that there were numerous private sale signs, and on speaking to our new found mexican friends,we learned that some properties that are for sale did not even have signs on them.

what we did discover was that it will be more than possible to find a very nice house in our planned budget of $60;000us or less in the 2 communities that we have decided to purchase in,chapala or jocotepec.

it will take us longer than innitially anticipated so we will rent first.

we still want to use an agent and we told them we would pay them a finders fee equivalent to their normal commissions if they find us an unlisted house that we like.




common sense is not common-voltaire

















(This post was edited by pedrito naco on Jun 30, 2003, 7:54 AM)


Marlene


Jul 2, 2003, 2:34 PM

Post #8 of 23 (3494 views)

Shortcut

Re: [Tom] Property values in Mexico

Can't Post | Private Reply
You raise very interesting points. The attitude toward real estate is amazing to me here in Mexico. I have lived in Mazatlan for 3 years and have done a lot of looking around at houses and properties in that time. While the areas where the foreigners want to be together are certainly rising in price (like doubled in Centro Historico since I moved here, it seems) many of the locals just won't sell their homes or lots. While they may be poor, the homes get passed down for future security, until eventually it sits empty for some time and then maybe goes up for sale. When they do put a house up for sale it can be a realtor's nightmare when an offer is brought to the table. The whole family tends to get involved and often times the deal just falls through from frustration on the potential buyer's part. In some cases the price goes up when a buyer comes with an offer, or "sellers remorse" kicks in and the deal is off. A house that is now for sale on my street for $75,000.00 USD (give or take) was for sale 2 years ago for $40,000.00 and had a foreign buyer nearly instantly. It has an ocean view. The owner backed out (twice!) and now he is having health problems and can't afford to stay or keep the house - it sits empty at this price, with no real estate sign on it. Go figure.

What you heard about land and homes being cheap in certain areas is very true even here in Mazatlan where prices are rapidly on the upswing. Areas close to the beach are rising the fastest. My husbands Grandmother has a house a half block from the beach in quite a decent area and on two very small lots. She is asking $500,000 pesos. The family is shocked at her greed. I have assured them that she isn't that far out of line and that she will get a buyer for it - maybe not this year - but she will get a buyer. On the flip side, we have Mexican friends living in an area about 15 minutes out of the center and away from beach on a beautiful hillside with views to die for. This apparently is not prestigious as the streets up the hillside are not paved and get scary in the rain. Consequently the prices are low. VERY LOW. We have our eye on a two lots up there.....One has a house (being lived in) on it and the owner will sell it for the equivalent of $4000.00 USD and the vacant lot beside it can be had for $2000.00 USD. The views are panoramic (the Golden Zone beaches, the cruise ships, the islands, and my alltime favorite - the city night lights) that you can't put a price on....the people that live there want to live closer in - more prestigious (?). Boy, I'd like to see the prices there in 20 years....No foreigners have discovered these areas yet and maybe won't ever, as most seem to want to live together in enclaves or very near them. These bargains can be had if you go exploring. We will build and knock down the other house eventually. It is fun dreaming and planning. We are happy in a bargain rental at the moment and aren't in a big rush. We know the prices won't go up too much up there in the meantime like they are doing here near the beach.

The government has a program for Nationals to buy houses. (Of course they don't face the fideicomiso bank trust that foreigners buying near the ocean face) If you have a job, you can buy a house. The payroll department of their employer deducts their house payment and sends it in for them. They have cute little subdivisions that have all sold by this means, with the corner lots being the most prestigious. It is a great option

Sorry, I am getting lengthy here! ...you brought up some really good food for thought on Mexican real estate. It really can be a "cultural" experience!


jrice

Jul 2, 2003, 9:27 PM

Post #9 of 23 (3467 views)

Shortcut

Re: [Mazatleca] Property values in Mexico

Can't Post | Private Reply
The price sounds low enough that it may be worth taking a gamble.

I certainly don't know the area. But you might consider that fact that in many, many parts of Latin America -- including Mexico (Acapulco? Mexico City?) -- some of the best views belong to the slums and that there are associated problems with that, such as soil instability and crime.

Even if those factors are not in play, I would be sure to do a bit of nosing around about the land title situation. It is extremely common for hillside communities to begin with invasions of what is communal, ejido or government-reserved land, and any title may be questioned.

On the other hand, I hope you have found a great deal. Cheers.


Marlene


Jul 2, 2003, 10:26 PM

Post #10 of 23 (3460 views)

Shortcut

Re: [jrice] Property values in Mexico

Can't Post | Private Reply
Hi John,

Thanks, yes I would say it is a better bet than playing the stock market in recent months.... Eyes wide open...my husband was born and raised here. We are quite familiar with ejido land and this is not it. Crime will likely not be a problem for us up there as a husband and wife police SGT team live right next door in a rather nice house. Their buddies frequent the area for the obligatory impromptu pick ups, drop offs and of course parties! We have attended a time or two ourselves. It felt safe and comfortable for me, from my personal point of feeling. In my humble estimation this is one of the many secrets that exist in Mexico. You have to simply stumble across them, or you would never know. We miss a lot (and it costs us) by hanging out in foreign enclaves - my point of view.


jrice

Jul 3, 2003, 7:29 PM

Post #11 of 23 (3420 views)

Shortcut

Re: [Mazatleca] Property values in Mexico

Can't Post | Private Reply
Great. Sounds pretty good. A lot depends on the quality of what is built nearby and the intentions of the city government.


jennifer rose

Jul 4, 2003, 8:26 AM

Post #12 of 23 (3392 views)

Shortcut

Re: [Tom] Property values in Mexico

Can't Post |

In Reply To

Another question is who the heck owns property in Mexico?


All kinds of people own real estate in Mexico, and we've gone to war over it, too. The concept of "Mi ranchito," even if the ranchito is a simple, non-productive plot strikes to the core of our psyche. Many, but of course not all, Mexicans place greater confidence in owning a parcel of land than in investing in the stock market.

In rural areas and small towns, some properties haven't changed hands for decades. What motivation is there to sell great-grandfather's terreno if some of the distributees' shares would hardly be enough to make a difference in their lives? Better just to keep it in the family seems to be the philosophy. I bought a property one time which required probating two estates to clear title, cutting some 87 checks to the distributees, and some of the checks for the heirs were less than $300.

Property ownership in Mexico just can't be compared to the U.S. Mortgage financing isn't the rule. Taxation of gratuitous transfers? Nil. College loans strapping a generation until it's time to re-allocate assets to qualify for Medicaid nursing home coverage? Nil. A third generation under a single roof? Not unusual. Property taxes? Nil.


Quote
Do many expatriots [sic] buy land directly from owners?


Yes, expatriates generally buy property directly from owners.


Madam  ZZ

Jul 5, 2003, 1:17 AM

Post #13 of 23 (3349 views)

Shortcut

Re: [jrice] Property values in Mexico

Can't Post |
Rule #1 has served me well...There is no inherent value to structures on land because labor is so inexpensive. Mexicans value land and the building is very secondary on the value. Just my experiencel. Then you get gringos involved and realtors and the whole business goes to hell. Best to get a notario and lawyer and let them do the talking...and thinking.


Oaxaca Hotel

Aug 3, 2003, 8:34 AM

Post #14 of 23 (3214 views)

Shortcut

Re: [Madam ZZ] Property values in Mexico

Can't Post | Private Reply
Hi there,

We are moving to MX next year and are going to buy somewhere away from the gringos and hopefully as much as possible away from Realtors.

Excuse my niaivety, but are you saying we can buy a house as foreigners with just a Notary and a Lawyer? With no realtor involved at all? If so great.

There are some great bits of knowledge here on this forum.

Thanks for any help

Kevin Hunneybell
....................................................
Real Estate in Huatulco, Southern Mexico

Huatulco Real Estate


jennifer rose

Aug 3, 2003, 8:40 AM

Post #15 of 23 (3213 views)

Shortcut

Re: [Webdesignlab] Property values in Mexico

Can't Post |
Yes, you can buy real estate directly from the owner without engaging the services of a real estate broker. And since notario publicos are lawyers with special authority invested in them by the sovereign, you don't need another lawyer to do your bidding either. But as foreigners you will need the permit to acquire real property, which can be handled by your notario publico.


Madam  ZZ

Aug 3, 2003, 6:38 PM

Post #16 of 23 (3174 views)

Shortcut

Re: [jennifer rose] Property values in Mexico

Can't Post |
But because of the lack of rules in Mexico, your notario/ia can approach the seller direct with a lower offer and this way the seller saves the 20 percent most realtors make in the transaction. plus their-sided notaria/io.


Marlene


Aug 3, 2003, 8:06 PM

Post #17 of 23 (3160 views)

Shortcut

Re: [Madam ZZ] Property values in Mexico

Can't Post | Private Reply
Real Estate agents earn 20 percent of the property sale value? I hadn't heard that one before. That seems a lot of money!


esperanza

Aug 3, 2003, 8:56 PM

Post #18 of 23 (3152 views)

Shortcut

Re: [Mazatleca] Property values in Mexico

Can't Post | Private Reply
And not factual, either. Where I live, the commissions on real estate sales are 6%...split between the listing agent and the selling agent. Rental agents get 15% of the gross rent.

http://www.mexicocooks.typepad.com









(This post was edited by esperanza on Aug 3, 2003, 8:57 PM)


Marlene


Aug 3, 2003, 9:03 PM

Post #19 of 23 (3150 views)

Shortcut

Re: [esperanza] Property values in Mexico

Can't Post | Private Reply
Wow! Thanks for verifying that for me.. I remember a realtor here telling me he made "hardly anything" and while I don't remember percentages it certainly was not nearly 20 %....


johanson


Aug 3, 2003, 9:43 PM

Post #20 of 23 (3145 views)

Shortcut

Re: [Mazatleca] Property values in Mexico

Can't Post | Private Reply
Nor have I ever paid that much. I don't own that many houses in Mexico, but my experiences lakeside have been in the 6 to 10% range. I sure hope no one has to pay 20%. That somehow doesn't seem right.

I would like to add my two bits worth about property values. I'm from the West Coast and know the values in SF,SEA, & Van

From my perspective you can buy quite a bit in Ajijic for $100,000 but buy a house for $300,000 and you are getting one for more than 3 times the value, by the time you hit $500,000, you're getting even a better deal. Case in point, shown below is a half million dollar home for sale in Ajijic.



I suspect that if you are from other areas of the US or have looked at other areas in Mexico that you may strongly disagree with my comments about real estate values.


(This post was edited by johanson on Aug 3, 2003, 10:13 PM)


johanson


Aug 3, 2003, 10:30 PM

Post #21 of 23 (3135 views)

Shortcut

Re: [johanson] Property values in Mexico

Can't Post | Private Reply
I guess what I'm suggesting is, that if you are used to west coast prices, you're going to find the real estate costs low to reasonable even in the tourist areas. If you are from areas inthe States or Canada where the values are still quite low, you will be shocked at the high prices.

It all depends upon where you're coming from.



Pete


Madam  ZZ

Aug 4, 2003, 2:07 AM

Post #22 of 23 (3119 views)

Shortcut

Re: [Madam ZZ] Property values in Mexico

Can't Post |
Well...that's what a friend in the biz told me in Quitana Roo between jobs. She opened her own agency later. It came up when I asked her how she survived when she was only selling a property every couple months or so. I'm sure she won't tell me now!


TomG

Sep 1, 2003, 4:06 PM

Post #23 of 23 (2970 views)

Shortcut

Re: [Madam ZZ] Property values in Mexico

Can't Post | Private Reply
That is an interesting observation about land vs. structure value.

Is it also possible in Mexico's more indigenous states that a higher proportion of ejido land to regular property could create oddly disproportionate land prices?
 
 
Search for (advanced search) Powered by Gossamer Forum v.1.2.4