A thought for medium/long-term investment Lakeside.

[Eric Blair]

Maybe a lot of expats here are not thinking of long-term investments right now, rather short-term survival. But at some point, the new-norm will be allowing businesses to get moving again.

When I'm not following the Covid-19 news, I am looking at the state of the World and the U.S. in particular.

IMO, when things settle out in a "few" years, I think/feel, depending on the political picture in the U.S., a lot of people will be looking to jump-ship and come to Mexico.

Right now, I think it's a buyer's market Lakeside when it comes to housing. I'm thinking to look at some family properties here with the thought of picking one up on-the-cheap, maybe a fixer-upper. My thought is that when the NOB crowd starts looking to leave the U.S., Mexico will be first choice.

It costs very little to take a look, and I'm sure Coldwell Banker, or your favorite R.E. sales office, will have a list of properties that could be of interest.

Just IMO.

[traderspoc]

remember , by having a rental , you have a business in mexico and need to file taxes on the income

find local mexican accountant , and due your due diligence, before investing

 

[Mostlylost]

And as of June 1st even electronic services are subject to IVA.  

[Mainecoons]

IMO it is way too early to determine if there will be a market correction.  It took several years for the last buyer's market to fully manifest itself.

I think what the OP is describing is more the situation before CV.  Will that return?  No telling at this point.

 

[ea93105]

"I'm thinking to look at some family properties here with the thought of picking one up on-the-cheap"

What is a "family" property ? A single family dwelling ?

Good luck with that. Remodeling and fixing up can be a full time job with frustrations galore. Always one more thing to do. Good if you like to keep busy though.

 

[Eric Blair]

I wasn't thinking of jumping in now, just some wait and watch. Need something to occupy the mind other than the negatives of Covid-19 and politics.

I also figure a fixer-up could be a couple of year project.

[cookj5]

Just keep in mind that properties here are still way over-priced IMHO. There was a several-year buying frenzy that drove up prices until just before covid-19 hit. Clearly, the pandemic has flattened the market considerably, if only because the traffic from the US/Canada skidded nearly to a halt and real estate offices still appear to be closed. However, in my experience from the 2008 crash, it took several years before the market began to look good again. Some of the conditions of that time also apply now. There is virtually no mortgage system here, at least as you would understand it up north. People nearly always pay the full price up front. By doing so, they have no monthly payment and therefore don't feel the pressure to sell, even in a down market. Also, since they have sunk such a large part of their net worth into the house, and often have paid additional large sums to remodel, they tend to be very reluctant to drop the price. Thus, a house can sit on the market for years, as I have seen many do. I think your "wait and watch" suggestion is the best policy. 

[ea93105]

There is also virtually no property tax

1 hour ago, cookj5 said:

Just keep in mind that properties here are still way over-priced IMHO. There was a several-year buying frenzy that drove up prices until just before covid-19 hit. Clearly, the pandemic has flattened the market considerably, if only because the traffic from the US/Canada skidded nearly to a halt and real estate offices still appear to be closed. However, in my experience from the 2008 crash, it took several years before the market began to look good again. Some of the conditions of that time also apply now. There is virtually no mortgage system here, at least as you would understand it up north. People nearly always pay the full price up front. By doing so, they have no monthly payment and therefore don't feel the pressure to sell, even in a down market. Also, since they have sunk such a large part of their net worth into the house, and often have paid additional large sums to remodel, they tend to be very reluctant to drop the price. Thus, a house can sit on the market for years, as I have seen many do. I think your "wait and watch" suggestion is the best policy. 

There is also virtually no property tax here, a big plus

[lakeside7]

2 hours ago, cookj5 said:

Just keep in mind that properties here are still way over-priced IMHO. There was a several-year buying frenzy that drove up prices until just before covid-19 hit. Clearly, the pandemic has flattened the market considerably, if only because the traffic from the US/Canada skidded nearly to a halt and real estate offices still appear to be closed. However, in my experience from the 2008 crash, it took several years before the market began to look good again. Some of the conditions of that time also apply now. There is virtually no mortgage system here, at least as you would understand it up north. People nearly always pay the full price up front. By doing so, they have no monthly payment and therefore don't feel the pressure to sell, even in a down market. Also, since they have sunk such a large part of their net worth into the house, and often have paid additional large sums to remodel, they tend to be very reluctant to drop the price. Thus, a house can sit on the market for years, as I have seen many do. I think your "wait and watch" suggestion is the best policy. 

I am intrigued  by your observation that "properties are over priced. Do you have some measure. place etc that you are comparing them to?

[Mostlylost]

2 minutes ago, lakeside7 said:

I am intrigued  by your observation that "properties are over priced. Do you have some measure. place etc that you are comparing them to?

I am also curious about overpriced.   Perhaps they haven't shopped similar properties in Guadalajara.

[Mainecoons]

5 hours ago, cookj5 said:

Just keep in mind that properties here are still way over-priced IMHO. There was a several-year buying frenzy that drove up prices until just before covid-19 hit. Clearly, the pandemic has flattened the market considerably, if only because the traffic from the US/Canada skidded nearly to a halt and real estate offices still appear to be closed. However, in my experience from the 2008 crash, it took several years before the market began to look good again. Some of the conditions of that time also apply now. There is virtually no mortgage system here, at least as you would understand it up north. People nearly always pay the full price up front. By doing so, they have no monthly payment and therefore don't feel the pressure to sell, even in a down market. Also, since they have sunk such a large part of their net worth into the house, and often have paid additional large sums to remodel, they tend to be very reluctant to drop the price. Thus, a house can sit on the market for years, as I have seen many do. I think your "wait and watch" suggestion is the best policy. 

An excellent summary, thanks!

[michael2595]

Many areas where prices are moving up. Look where the rich tapatios go for the weekend (not Lakeside) and homes are priced in pesos.  Deals to be had. Realtors rarely used. You have to hit the streets . I have  found some great properties. I never talk to the owners myself but use a Mexican to  negotiate on my behalf. 

[Mitch]

In the last 7,8 months we have seen several rentals sitting vacant because the owners were asking high rents. Several of these owners have since sold or still have the houses on the market. These were people who bought these properties as rental investments not realizing the rental market was becoming overpriced and it corrected.

[Mainecoons]

6 hours ago, michael2595 said:

Many areas where prices are moving up. Look where the rich tapatios go for the weekend (not Lakeside) and homes are priced in pesos.  Deals to be had. Realtors rarely used. You have to hit the streets . I have  found some great properties. I never talk to the owners myself but use a Mexican to  negotiate on my behalf. 

PV is a very good example of this and wait until they finish the new cuota from GDL, now 93 percent complete.

 

[RickS]

As an aside, how much of that 93% is open to traffic?

 

 

[AngusMactavish]

 

[Mainecoons]

1 hour ago, RickS said:

As an aside, how much of that 93% is open to traffic?

 

 

To my knowledge they haven't opened up any more since that initial section.  The pictures with the article show construction in some pretty rugged areas.  It was on Alfaro's FB page.

 

[Mostlylost]

22 minutes ago, AngusMactavish said:

 

Full of non facts, and opinions. Talked to 3 agents out of maybe 70 or so lakeside.  No actual stats.

Lots of conjecture from someone never in the business.

My sister in law just sold  to Gringos & closed this week. Did not drop price.  Sold by a local agency who he says are closed! 

[AngusMactavish]

13 minutes ago, Mostlylost said:

Full of non facts, and opinions.

That is exactly what he said he was offering.

[Mostlylost]

6 minutes ago, AngusMactavish said:

That is exactly what he said he was offering.

Well if that his intention was to post non facts and personal. opinions. and many inaccuracies...... he did a great job!

[Mainecoons]

Sometimes I think people do stuff like this in the hope they'll lower prices so they can buy.

Real estate is a cyclical market driven by demographics, changeable tastes and economic conditions.  This one is no different than the rest.

The top agents make money in any market.

 

[kimanjome]

I notice International Living mag is starting to push Mexico again 

Yes, Covid has affected the market some, but the crap going on in the US (where I am at present, trying to tie up some loose ends) is enough to sour anyone's stomach and make them consider jumping ship. 

Prices in the US are high high high. I go to the grocery store and see sweet red peppers for $3.99 each. A whole pineapple for $2.99. A much-reduced-from-2015-size Panera soup and sandwich you pick 2 runs about $11-. My 80+ year old dad just got a script from his doc for Viagra----at $50 a pill!  And my dad has Medicare plus great private insurance. Meanwhile a man friend told me he got name brand Viagra in Ajijic for $5 a pill!

There also some new studies coming out showing that many of us here have had Covid and don't even know it. The Boston Homeless study revealed that 96% of the population in the Shelter tested + for Covid and were asymptomatic, or at worst, had colds and thought nothing of it. Ditto for the new study released for inmates in Arkansas, Virginia, and Alabama. There are a few studies now showing that 30 -60% of the population catches Covid, but the immune system is triggered to re-code the viral RNA sequence of Covid to deactivate or mutate the virus....making the virus a minimal infection, if any infection at all. Not only that, but many people who test + with Covid early on are later tested  for antibodies, and there are none, because their immune systems wiped out any trace of Covid-19 RNA, as the immune system is supposed to do, by breaking it down to a regular coronavirus. An experiment with exposed Rhesus monkeys proved the same.

I'm saying all this because I think the market is going to correct itself sooner rather than later, especially as we discover more optimistic facts about Covid and how limited the virus actually may be.

 

[lakeside7]

6 hours ago, kimanjome said:

I notice International Living mag is starting to push Mexico again 

Yes, Covid has affected the market some, but the crap going on in the US (where I am at present, trying to tie up some loose ends) is enough to sour anyone's stomach and make them consider jumping ship. 

Prices in the US are high high high. I go to the grocery store and see sweet red peppers for $3.99 each. A whole pineapple for $2.99. A much-reduced-from-2015-size Panera soup and sandwich you pick 2 runs about $11-. My 80+ year old dad just got a script from his doc for Viagra----at $50 a pill!  And my dad has Medicare plus great private insurance. Meanwhile a man friend told me he got name brand Viagra in Ajijic for $5 a pill!

There also some new studies coming out showing that many of us here have had Covid and don't even know it. The Boston Homeless study revealed that 96% of the population in the Shelter tested + for Covid and were asymptomatic, or at worst, had colds and thought nothing of it. Ditto for the new study released for inmates in Arkansas, Virginia, and Alabama. There are a few studies now showing that 30 -60% of the population catches Covid, but the immune system is triggered to re-code the viral RNA sequence of Covid to deactivate or mutate the virus....making the virus a minimal infection, if any infection at all. Not only that, but many people who test + with Covid early on are later tested  for antibodies, and there are none, because their immune systems wiped out any trace of Covid-19 RNA, as the immune system is supposed to do, by breaking it down to a regular coronavirus. An experiment with exposed Rhesus monkeys proved the same.

I'm saying all this because I think the market is going to correct itself sooner rather than later, especially as we discover more optimistic facts about Covid and how limited the virus actually may be.

 

But what is the RE market like in the USA/CAD will it allow you to jump ship, you may have the intent but can you sell your home???

[virgo lady]

7 hours ago, kimanjome said:

Viagra----at $50 a pill!  And my dad has Medicare plus great private insurance. Meanwhile a man friend told me he got name brand Viagra in Ajijic for $5 a pill!

1 - Good for your 80+ year old Dad!   😉

2 - a new northbound business opportunity from MX.....wow.     

[RickS]

15 hours ago, lakeside7 said:

But what is the RE market like in the USA/CAD will it allow you to jump ship, you may have the intent but can you sell your home???

The real estate market is as varied NOB  as the locations are varied. BUT it is NOT a given that one cannot sell their home as things begin to loosen up with regards to the virus.  My neighborhood in MY home town is as hot as it always was. Three homes just sold for pre-virus $s... one in 2 months and the other two in a matter of weeks each!