traderspoc Posted April 4, 2010 Report Share Posted April 4, 2010 Peso had biggest gain in currencies against US dollar 6.2% still going strong http://www.businessweek.com/news/2010-03-31/mexico-s-peso-headed-to-biggest-advance-among-major-currencies.html Link to comment Share on other sites More sharing options...
Intercasa Posted April 4, 2010 Report Share Posted April 4, 2010 I don't know whether to be happy or sad. Good for investments in pesos, bad for exchanging. Link to comment Share on other sites More sharing options...
jimmiller Posted April 4, 2010 Report Share Posted April 4, 2010 I don't know whether to be happy or sad. Good for investments in pesos, bad for exchanging. Bad also for the Mexican economy: tourism by foreigners more expensive, exports of oil yields fewer pesos, imports of foreign-made goods is cheaper. Exports of manufactured goods more expensive, local labor more expensive. This is yet another indicator that the wealthy oligarchs who own/run Mexico don't care a bit about the people of Mexico. They would rather have cheaper imported Maseratis,movies and other consumer goods than to employ more Mexican laborers in tourism, export businesses,and local manufacturing. Link to comment Share on other sites More sharing options...
tobyjug Posted April 4, 2010 Report Share Posted April 4, 2010 Bad also for the Mexican economy: tourism by foreigners more expensive, exports of oil yields fewer pesos, imports of foreign-made goods is cheaper. Exports of manufactured goods more expensive, local labor more expensive. This is yet another indicator that the wealthy oligarchs who own/run Mexico don't care a bit about the people of Mexico. They would rather have cheaper imported Maseratis,movies and other consumer goods than to employ more Mexican laborers in tourism, export businesses,and local manufacturing. Do you think Canada has the same issues!!!! Link to comment Share on other sites More sharing options...
Ajijic Posted April 5, 2010 Report Share Posted April 5, 2010 Do you think Canada has the same issues!!!! Right on Toby. The C$ for all practical purposes is at par. Or check out the currencies of New Zealand and Australia. It is the US $ that is dropping not the MXN peso gaining. Imagine those who priced their home in US$ when it was 15 to 1 or even 14 to 1 and house still for sale. If that seller ultimately plans on staying in Mexico and needs pesos their house that is for sale has dropped significantly plus likely actual drop in list price. So for those saying house prices have not dropped well this is Mexico and the difference between 15 to 1 vs now 12.3 to one is huge. Most Mexican's and Canadian's are just sitting back and waiting and very happy with decision to rent. Maybe they can price their homes in C$ or better yet in MXN pesos. lol And keep in mind about half of the mls foreign buyers and sellers are Canadians and believe it or not some are Mexicans so some need to broaden their "American" viewpoint. :-) And then consider the landlord seeking US$ for rent. For many tenants the rent keeps dropping every month thanks to the exchange rates. And of course we are talking lakeside for the less informed. :-) lol And having bought and sold once in Mexico was enough for me. Link to comment Share on other sites More sharing options...
Doolittle Posted April 5, 2010 Report Share Posted April 5, 2010 Most people selling here are heading NOB, so they want $US. Those that are staying will buy in $US. The value of the Peso is irrelevent. Link to comment Share on other sites More sharing options...
windansea Posted April 5, 2010 Report Share Posted April 5, 2010 Right on Toby. The C$ for all practical purposes is at par. Or check out the currencies of New Zealand and Australia. It is the US $ that is dropping not the MXN peso gaining. Imagine those who priced their home in US$ when it was 15 to 1 or even 14 to 1 and house still for sale. If that seller ultimately plans on staying in Mexico and needs pesos their house that is for sale has dropped significantly plus likely actual drop in list price. So for those saying house prices have not dropped well this is Mexico and the difference between 15 to 1 vs now 12.3 to one is huge. Most Mexican's and Canadian's are just sitting back and waiting and very happy with decision to rent. Maybe they can price their homes in C$ or better yet in MXN pesos. lol And keep in mind about half of the mls foreign buyers and sellers are Canadians and believe it or not some are Mexicans so some need to broaden their "American" viewpoint. :-) And then consider the landlord seeking US$ for rent. For many tenants the rent keeps dropping every month thanks to the exchange rates. as usual you are clueless first take a look at last 5 years exchange rates, the 15 peso to the USD was a very short spike http://mx.finance.yahoo.com/currency/convert?from=USD&to=MXN&amt=1&t=5y since you are a renter and have never bought or sold a property in Mexico you really don't know much. First, when you buy a property in Mexico that is priced in dollars and you pay in dollars, the actual purchase price is recorded in value of pesos at that time. When you sell it, priced in dollars and get paid in dollars, the sale price is recorded in pesos/exchange rate at that time. And your capital gains tax (30%) is calculated by the gain in pesos. So if you bought a house in 2007 for $100,000 usd = $1,000,000 pesos. Then you sell it in Feb 2009 for what you paid, $100k usd but in pesos it is $1,500,000...a 500k pesos gain. You pay capital gains on that. Anybody who bought in dollars when peso was 10 to dollar and wants to sell now, just get their money back is actually rooting for peso to go up as it reduces their capital gains. If they want dollars to return to US they take dollars as payment, if they want to stay in Mexico they can accept pesos and at least reap the benefit of the gain, regardless they pay capital gains based on peso value at time of purchase and sale. I remember your whining when the loony dropped down to 80% of dollar, "whaaaah, prices are too high here because priced in dollars" Now you are at parity again, whats your excuse now? Like many, you keep thinking prices are going to crash in Mexico like in US, not going to happen, 99% of properties here have no mortgage, paid for in cash. Actually right now is a good time to buy, if you have cash you can make agressive offers and get properties for a good price if sellers are anxious to sell and not looking to make profit. And please, 50% of buyers/sellers on MLS are not canadians, maybe in small market like Ajijic but I doubt even there. In major markets like Cabo,PV Cancun canadian buyers/owners are less than 10% of market. Link to comment Share on other sites More sharing options...
grahamgo Posted April 8, 2010 Report Share Posted April 8, 2010 Right on Toby. The C$ for all practical purposes is at par. Or check out the currencies of New Zealand and Australia. It is the US $ that is dropping not the MXN peso gaining. Imagine those who priced their home in US$ when it was 15 to 1 or even 14 to 1 and house still for sale. If that seller ultimately plans on staying in Mexico and needs pesos their house that is for sale has dropped significantly plus likely actual drop in list price. So for those saying house prices have not dropped well this is Mexico and the difference between 15 to 1 vs now 12.3 to one is huge. Most Mexican's and Canadian's are just sitting back and waiting and very happy with decision to rent. Maybe they can price their homes in C$ or better yet in MXN pesos. lol And keep in mind about half of the mls foreign buyers and sellers are Canadians and believe it or not some are Mexicans so some need to broaden their "American" viewpoint. :-) And then consider the landlord seeking US$ for rent. For many tenants the rent keeps dropping every month thanks to the exchange rates. And of course we are talking lakeside for the less informed. :-) lol And having bought and sold once in Mexico was enough for me. I mainly agree with you. Fortunately most of our holdings are in Euro's, against which the US$ has dropped 40% (7 year period). The US has a very serious problem in that it has to repay or refinance US$ 2 Trillion by the end of 2010. If it is not able to do so then it will likely print more Dollars, the consequence is an estimated 42% devaluation. We came with the idea of purchasing a place, but happily sit tight and watch the market whilst renting at a declining US$ p/m price. Couldn't be happier. Link to comment Share on other sites More sharing options...
tobyjug Posted April 8, 2010 Report Share Posted April 8, 2010 I mainly agree with you. Fortunately most of our holdings are in Euro's, against which the US$ has dropped 40% (7 year period). The US has a very serious problem in that it has to repay or refinance US$ 2 Trillion by the end of 2010. If it is not able to do so then it will likely print more Dollars, the consequence is an estimated 42% devaluation. We came with the idea of purchasing a place, but happily sit tight and watch the market whilst renting at a declining US$ p/m price. Couldn't be happier. A balanced portfolio should have some real estate, if you plan to "stay" in Mexico, why not hold property in Mexico? Link to comment Share on other sites More sharing options...
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