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Not too long ago, I was planning on purchasing real estate at a coastal city, the usual resorts. When the US economy slowed down, it seems the crime in Mexico increased at the same time, so it put a damper on my plans. However, since we (wife and I) have managed to escape unscathed (to date), I was wondering if the economy had depressed real estate in Mexico that I might take advantage of it.
I am a Mexican citizen, so property on the beach is not a problem for me ('am dual citizen).
Does anyone have any information, or hot tips for any unbelievable deals? If so, PM me... don't want to let everyone know.
Things have been very quiet in the Vallarta area as of late and two neighbors of our's, both in real estate, I think are hurting.. And, because of all the intensive building in the last few years, there's lots of inventory available. But it's hard to keep that popular market down! I'd just go to the Realtor.com site and see if prices currently offered fit into your budget.
Buena suerte!
Have not been down south (central or coastal Mexico) for a while so can only speak of where I'm at in Baja below the border.
If any indication of the economy effecting construction etc...I would say SLOW.
Would depend on who is doing the building.
Americans who buy/lease land have the resources to build while the local citizens are VERY SLOW in doing anything.
In my sub division I built here 13 yrs ago...paid for my street pavement and am still waiting for it. Some will start to do some work (septic and underground water holding tank...water has to be trucked in) and then they stop for months or yrs. (NO MONEY) Couple of houses are completed on the outside from appearances but sit vacant for yrs now. Lot prices have been resold with some profit I imagine but still no construction.
Have a neighbor who with his married son/wife/grandson bought a lot 200 ft from us and they were gung ho in doing the water and septic thing for a few days then STOPPED cold without finishing the job...and it sits there with the concrete blocks visible. Multiply this many times over the surrounding neighborhood and you have a picture of the economy.
Not complaining...just a personal observation of where I live...and this is above the beach with a nice view.
Many of the locals are effected by the US economy as they work in large numbers across the border.
What the excuse is for down in PV/Mazatlan/Accapulco cannot be blamed on the US economy.
They cannot sit on their laurels and expect Americans to invest money in construction etc. Any advancement will have to be made by their own inititive.
A person with (Dual) citizenship can buy and build to his/her hearts content...just takes MONEY.
Have NOT seen any prices dropping here over the yrs...instead are slowly rising (especially materials)
Hey Steve.... I beg to differ with you, at least about the Vallarta area.. From what I hear the poor US economy has caused many (US) folks to be cautious and put off thinking about and/or buying Vallarta real estate - and although they don't comrprise *all* of the buying market they do represent a large segment of it. Hopefully native Mexicanos, the Canadians and Europeans will make up for these cautious US buyers..
We've been back in the US for almost two months now but should return to Mexico mid-November and I'll ask around to guage the most current real estate activity.
Last edited by SarahSal; 10-09-2009 at 12:04 PM..
Reason: add
Mexico needs to get up off it's rear and stop depending on the US investments.
Why do those in the tourist areas depend on the American or canuck tourists to survive?
Local money is not doing very much...whos fault is that?
Condo sales down...time share sales down...all because of the lack of US $$$ and NOT Mexican PESOS.
Sorry Sara...I know why your pro Mexico so don't blame the American and Canadian people for any slowdown in the Mexican economy.
You may not know or recall that I lived in Mexico City with a Mexican wife who had been with a Large Govmt owned company as a senior executive and I was privy to many things. I had a circle of friends...MD/Lawyers/Dentists etc and as such learned a lot of the Mexican way of life and it's politics.
A connection with a state Govenor also taught me some things.
Not trying to impress or anything...just that I had a source/connection that the average person did not have. My quotes are from personal experience/viewpoint having been in Mexico (which I love) for over 16 yrs now. I am the only American in my sub division. What little money spent here has been by locals from TJ looking for different/larger housing.
North of Rosarito they are building 100's of small homes for the working class people (approx 840 sq ft) that are wall to wall construction so to speak. At one time thought to buy a unit but not allowed to Americans. Believe the Govmt is doing the building based upon the money involved. NO Americans would be involved with that large of an operation.
Somebody tried to build some beachfront homes south of me but tapered off to a halt. It was money or high prices that slowed them down. NO Mexicans can afford $350,000 to $1.5 million for a beach front home. With slow $$$ coming down to invest...construction slows down to a standstill.
I have given my opinion (observation) to some on C-D and two couples did buy beach houses here based upon my info...so guess I did help a little with my honest info.
To you Steve and Sarah for the information. I recently spotted a studio unit in Acapulco for ~50KUS. It is like a dorm really, but it overlooks Acapulco Bay. I would never buy this to live in, but it got me wondering about rental income.
This place is near the 'action' in Aca. It is very small, just for visiting, no one can really expect to live in it. Do either of you know how properties like that do? It would sleep four adults at the most, with absolutely no privacy except for the bathroom. I'm skeptical of course, but you gotta love the view.
Of course, I expect to pay two to three times that for a hole in the wall without a view by the beach, but I don't want to live there, at least just yet, I'm not anywhere near retiring, but at the same time, as I've gotten older, I've noticed what many of us 'older' people notice... the cost of a home is not what it used to be 20-30 years earlier... instead of saying to myself 'I wish I would have purchsed X years ago'. I can afford to now, but them am concerned about renting it out, managing it from the US, etc.
Acapulco does have a magnetic effect. The beach area with the high rise hotels and walking access to the beach outside the back door is the key factor.
Some of the hotels advertised for special 3-4 days air/rooms are away from the main drag.
Many nice homes are going to the east towards the airport a few miles away.
My knowledge is that most Mexicans want to own their own land and not sell unless for a large profit...after all whole families are dependent on living in one household for yrs and yrs.
Sure...there are bound to be some hole in the wall so to speak...at the right price? but you would NOT want to live there. Put yourself into someones shoes who is paying good money for a 3-4 day etc vacation and has to stay in that hole in the wall. Do you think they would be happy?...don't think so.
Any GOOD deal would be grabbed up by a Mexican National with money. If a person wanted to live cheaply (small area without fancy things) but love the access to the beach and weather...I would go for it.
Living in Mexico City did visit Acapulco 3-4 times a yr on a weekend bassis because of the short drive down the toll road...stayed at the local low price hotels and a few minute drive took my down town to the hotel area where I could walk into the front door thru the lobby and out to the back door at the sand. Americans could do this...a Mexican would be stopped and asked for ID re a room in the hotel...if none...out the door to the street. They catered to American tourists etc mainly.
We had a weekend house in Cuernavaca which suited us just fine. Spring like weather all yr around was ideal compared to the excessive heat in the summer time in Acapulco.
Before buying any property for rental to any tourists or vacationers...a person would have to put themselves into the renters shoes and ask yourself "do I like this place or not".
You could communicate over the Internet/fax/Phone...go with direct US funds but then someone still has to take care of cleaning etc at the location involved...who do you trust?
Mexico needs to get up off it's rear and stop depending on the US investments.
Why do those in the tourist areas depend on the American or canuck tourists to survive?
Local money is not doing very much...whos fault is that?
Condo sales down...time share sales down...all because of the lack of US $$$ and NOT Mexican PESOS.
Sorry Sara...I know why your pro Mexico so don't blame the American and Canadian people for any slowdown in the Mexican economy.
Steve
Hi Steve and all the others involved, I've been reading alot on city-data, anyway before realizing my first post wanted to introduce myself,
tecis, in central mexico for more than 3 years now, self-employed.
I think you made a pretty good point about the dependece on US/CAN money for many investments. After all, it is a question of the average material situation in Mexico and the social history as well.
1. Usually, many coastal developments cannot be afforded by anybody in Mexico.
2. Mexican citizens who have the money (e.g. really well-off) are usually tired of their country and the structural problems (especially disorder, lack of coordination) which cripples their motivation to invest in their own country. Some well-offs I know prefer to buy property in CA or TX despite less beautiful landscape just to avoid the structural problems.
3. I am very happy that many US/CAN citizens not only invest in Mexico but also try to give something back to their community, for me clearly visible in Puerto Vallarta and San Miguel de Allende - thanks to all folks this way.
@ HooktheBrotherUp
Back to structural problems: I found it very difficult to delegate any operation whatsoever in Mexico, especially linked to money (read: cobranza de rentas) unless you have your own structure incl. lawyers. People in Mexico are used to deal with "owners" for the majority of actions involving money.
And how many Americans have gotten out their calculators recently, calculating they can buy a dirt cheap home here in the U.S., and have more money to spend to travel to Mexico for a week to month stay instead of living there.
My townhouse selling for $200k at the real estate peak is now hovering around $30k on Realtor.com, 3 miles from the Las Vegas Strip.
True, no beachfront with such super cheap bargains in Phoenix, Tucson and Las Vegas, but in any of those cities you can catch some $100 RT flights to San Diego and bus on down to Rosarito or Ensenada for whatever length of time you wish.
At this point in time, given the RE crash here, IMO, Mexican real estate is way over-priced.
At this point in time, given the RE crash here, IMO, Mexican real estate is way over-priced.
In general I think you are right, you also have to see that real estate for foreigners is generally priced in USD while the mexican peso has devalued about 35 % in comparison to one year ago - these savings are not passed to US customers usually.
However, I am sure we are going to see decelerating overall real estate prices and crashing beach front/holiday property prices for foreigners, especially in places with heavy exposure to credits from the builder's side.
best wishes
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