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steve2709564

Sep 21, 2008, 9:11 AM

Post #1 of 11 (2897 views)

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"WHEN THE U.S. SNEEZES.......

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MEXICO GETS A COLD" AT LEAST THAT'S THE OLD SAYING! WELL AS YOU ALL KNOW WE'VE COME DOWN WITH DOUBLE PNEUMONIA UP HERE, FOR THE FOLKS THAT FOLLOW THIS SORT OF THING ,HOW ABOUT A REPORT FROM DOWN THERE?

barnowl

Sep 21, 2008, 6:43 PM

Post #2 of 11 (2832 views)

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Re: [steve2709564] "WHEN THE U.S. SNEEZES.......

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That's what I would like to know too, Steve. In Canada, many of us know we are also in for a world of hurt. We really wanted to retire in Mexico, now it looks like we have to let the dominoes all fall down before making any plans. Everything is up in the air...cost of housing...pension plans maybe in jeopardy...it's hard to make plans when the rug is being pulled out from under one's feet.

Interesting times, indeed.

Georgia

Sep 23, 2008, 12:21 PM

Post #3 of 11 (2724 views)

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Re: [steve2709564] "WHEN THE U.S. SNEEZES.......

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My opinion only: when we had a housing crisis and a market drop in the 80's I figured that everybody has to live somewhere: so I bought up 10 undervalued, badly in need of repair houses at a good price over several years. My husband and I restored and rented them. And, yes, it paid off: we hardly had a vacancy rate.

So, what can someone do who wants to retire but they have a home to sell? Rent it. Providing you have a close business associate or family member who can keep an eye on it. People who lose their homes to foreclosure still have to live somewhere - and they rent. It is cheaper to rent and live in Mexico than in the US, especially when you take into consideration affordable health and dental care, insurance, local food prices (rising, but nowhere near those prices in the US) and rental costs (depending on the area you choose). Normally, if you were to rent a similarly situated house NOB it would cost less to rent that house in Mexico. What do I mean? If you are presently NOB in a three bedroom, two bath house in a small town it would cost less to rent a similar sized, three bedroom, two bath house in a non-gringo small town in Mexico. Gas is cheaper (for the time being). Eating out is cheaper. And you do not have the rigors of hard winters or searing summers in many Mexican locations.

Just a thought.

esperanza

Sep 23, 2008, 12:39 PM

Post #4 of 11 (2719 views)

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Re: [steve2709564] "WHEN THE U.S. SNEEZES.......

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In Reply To

Hmmm...I always thought it was the reverse: "When the US gets a cold, Mexico sneezes."

Right now, the US has double pneumonia and Mexico has a cough.

http://www.mexicocooks.typepad.com

BajaGringo

Sep 23, 2008, 1:39 PM

Post #5 of 11 (2706 views)

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Re: [Georgia] "WHEN THE U.S. SNEEZES.......

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Great advice and exactly what I am telling friends of mine in a similar situation. Now is not the time to sell - it is the time to buy. Unfortunately few people follow the time tested rule of buy low / sell high. Instead they react (and follow) market frenzies...

Our House Building Project in Mexico...
Lomas de San Martin
Loving Life on the Baja Peninsula

Gringal

Sep 23, 2008, 3:58 PM

Post #6 of 11 (2681 views)

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Re: [BajaGringo] "WHEN THE U.S. SNEEZES.......

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Just a cautionary note on when to buy: I have heard predictions all over the map about how low it will go before it turns around. Conventional wisdom is that you don't know when the bottom is until it DOES start to turn around. I would wait and see, personally.

Otherwise, it is with a great sense of relief that we liquidated our real estate holdings and moved to Mexico four years ago. Whew.

Brian

Sep 23, 2008, 5:14 PM

Post #7 of 11 (2669 views)

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Re: [Gringal] "WHEN THE U.S. SNEEZES.......

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Conventional wisdom is that you don't know when the bottom is until it DOES start to turn around. I would wait and see, personally.

Buying now is the equivalent of trying to catch a falling knife.

robrt8

Sep 23, 2008, 6:25 PM

Post #8 of 11 (2656 views)

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Re: [Brian] "WHEN THE U.S. SNEEZES.......

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Buying what? Corn futures?
If we're talking about Mexico: As always, and especially now, don't get into something you can't live happily ever after with.

Gringal

Sep 24, 2008, 8:32 AM

Post #9 of 11 (2594 views)

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Re: [robrt8] "WHEN THE U.S. SNEEZES.......

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If you check Georgia's post above, you will see she was referring to U.S. homes.

Not corn futures. lol.

colibri1

Sep 26, 2008, 7:35 PM

Post #10 of 11 (2515 views)

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Re: [Gringal] "WHEN THE U.S. SNEEZES.......

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Another consideration is replacement value. If you had to build a new house, what would that cost? With the cost of materials on the rise, it is unrealistic for the cost of existing, good condition houses to go any lower. IMHO, now IS the time to buy, because when it does turn around it's going to be an instant jump of at least 10 to 15 percent due to just replacement value. Something else to chew on.
Marianne

Georgia

Sep 27, 2008, 1:31 PM

Post #11 of 11 (2466 views)

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Re: [Gringal] "WHEN THE U.S. SNEEZES.......

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My post is also applicable here: everyone has to live somewhere. It is my opinion that when the economy is shaky it's not a good idea to put all your eggs into one basket, even if you watch that basket closely. There will be retirees who choose to come here even if they can't sell. They may not buy; but they will rent. It is the converse of my post above: if you can't sell, rent; if you have the capital here in Mexico to buy undervalued or lower cost housing, do it: rent it. Diversity is important, I think, to riding out an economic crisis: some money here in Mexico, some there; some real estate here, some there; some stocks, some bonds, some T bills. Another option to selling one's home NOB is to sell to credit worthy people with a good credit score and you become the bank and mortgage the property. Obviously, you use a good attorney who is experienced in protecting your interests as mortgagee. You can structure a mortgage any number of ways to get a full payout in a certain term of years, for example, with a "balloon" mortgage. Your mortgage payments will probably be higher than your rent in Mexico, plus you can depreciate the home on your taxes, but make sure you don't rent it out for too long a period that you risk losing your exemption on the sale of a primary residence (check with your tax guy - the tax law changes every year and I don't know anymore). What some see as a crisis, others see as an opportunity.

(This post was edited by Georgia on Sep 27, 2008, 1:36 PM)