Wednesday, July 15, 2009
it's only money, right?
I get a lot of questions about property, the first one is "can you own property in Mexico?" If I had a dollar for each time I have been asked that I would be a wealthy man. The real estate business down in Mexico has been evolving and is an interesting experience depending on who you know and who you ask.
The interesting thing now a days how the "new guard" of real estate sales people are attempting to capitalize on the people that are considering to purchase property for their retirement.
When we bought our land, that was an interesting experience. We were shown a strip of land, walked all 8 hectares of it and fell in love with it!
Had nice views, great assortment of trees and the price was nice. So, as we get ready to do the deal, the salesman informs us that the property that we walked was not the property that is for sale.....
As William Bendix on the Life of Riley would say, "Wow, isn't that a revolting development". Well I think that's what he said, it was too many years ago and my memory is getting diluted with not sufficient memory space, need to expand the gigabytes.....
It turned out to be the property south one parcel that was the for sale.
Real professional eh?
Well that was just the beginning.....
Back to the issue at hand. Looking at ads for homes on various sites, Craigslist listings, Century 21 Mexico and others, you see tons of properties and prices.
Lots of the homes are as expensive or more so than US prices.
Someone is making some nice cash. I don't think it is necessarily the property owner. What I have seen is a lot of opportunistic individuals who are making money more so than what would normally be called reasonable. I think the word for it is gouging, flimflam, overcharge are a few words that instantly come to mind.
If I can instill one thing to anyone who asks about property is one thing. Do your research and see if you can get someone to help you with the transaction or at least know what the reasonable pricing is for similar properties.
We were lucky we had a few friends who we trusted, one in Guadalajara and one in Morelia. Had we not done some prior work, I know we would have both overpaid and been taken advantage of beyond belief.
Looking at prices there are properties that have lots of fluff built into the price. Some are reasonably priced for the area, construction and size.
Others are not.
We have been offered bare land for reasonable prices and some not. At one time we were considering a Mazatlan condo and that is where I found the prices vary as much vendors in your local mercado.
Recently there have been tons of ads enticing Americans to buy now before the prices go up, buy now since the monthly living expenses are cheap, cheap , cheap.
It is interesting to see the prices of homes that we have seen being sold by locals, and then seeing homes in the same neighborhood being advertised for twice, and three times the price.
But there is always someone who seems willing to pay for it. So maybe they deserve the deal they get.
On the other hand, many Mexicans put up for sale signs just to find out what the offers may be and know that should they need some money that maybe, just maybe they will fetch that same amount with a serious buyer.