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DENNIS
Platinum Nomad
Posts: 29510
Registered: 9-2-2006
Location: Punta Banda
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I wouldn't buy real estate if it had no definite resale value. I have a house for sale which I would have trouble giving away. I wonder if I'll live
to see the day when I'm not a prisoner to my house.
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oldlady
Banned
Posts: 1714
Registered: 10-31-2005
Location: BCS
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I hope so.
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BajaGringo
Ultra Nomad
Posts: 3922
Registered: 8-24-2006
Location: La Chorera
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Mood: Let's have a BBQ!
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| Quote: | Originally posted by DENNIS
I wouldn't buy real estate if it had no definite resale value. I have a house for sale which I would have trouble giving away. I wonder if I'll live
to see the day when I'm not a prisoner to my house. |
Okay Dennis, since you're giving it away I'll take it if you insist...
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Osprey
Ultra Nomad
Posts: 3694
Registered: 5-23-2004
Location: Baja Ca. Sur
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It's tough to know just what to do. My old Mexican house is about 1000 sq ft on a 9000 sq ft lot. Since it has a nice ocean view, the lot is worth
more without this old house than with it given what our new marina will do to values around here. My old tin roof leaked so bad I could not longer
ignore it so I had to explain to everyone involved in a new roof that I wasn't making a marketing improvement, was not trying to improve a house which
will be bulldozed down if/when I sell the lot, I was just keeping it livable until I move, die or sell. Since everybody dies, odds are I won't care
but my kids will/might/who knows?
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DianaT
Select Nomad
Posts: 10020
Registered: 12-17-2004
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| Quote: | Originally posted by Gaucho
When I consider a piece of property I look at the tangibles. The things that won't change (for the most part). Location, view, size of the lot,
proximity to restaurants, stores etc...
"You can change the house but you can't change the location" 
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Always, location, location and location the three most important rules in buying real estate.
But some things do change, like the surrounding area, the town etc. Things certainly have changed in Bahia Asuncion!
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DENNIS
Platinum Nomad
Posts: 29510
Registered: 9-2-2006
Location: Punta Banda
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| Quote: | Originally posted by oldlady
I hope so. |
Me too. Thanks.
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CortezBlue
Super Nomad
Posts: 2213
Registered: 11-14-2006
Location: Fenix/San Phelipe
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Ok, I have been through this before, in the USA, back in 1987 during the Keating fall out. It took several years to come back. New guidelines were
put into place, so it made it more difficult to buy a home and the housing market rose 3 to 5 percent per year in value. In 1992 these guidelines
were loosened up in order for more people to be able to buy a home, and bing band boom, here we are again.
Will the market come back? yes, but it will be many years. Remember an economy is like a giant spring, it is cyclical and the more the economy is
messed with,(Greenspan), the longer it will take for it to re-adjust. The spring broke this time and it needs to be fixed or replaced. However, I
think it is possible that the Mexico market may come back quicker with more and more americans trying to get out of the socialist trends that are
starting to take place in the US. Each and everyone of us today received a $16000 tax bill, plus all of the interest. Some folks that I know laughed
at me when I bought my home in Mexico. When I explained the Fidi, they all warned me that the backs could get nationalized. All of those folks are
now wanting to find out about living in Mexico becuase our banks have been nationalized.
If you own in Mexico, and own a home enjoy it, there are no other options!!
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CaboRon
Ultra Nomad
Posts: 3401
Registered: 3-24-2007
Location: The Valley of the Moon
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Mood: Peacefull
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If you are in a fidecomiso you do NOT have the deed,
And never will.
You don't own anything Free and Clear
CaboRon
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Bajahowodd
Elite Nomad
Posts: 9274
Registered: 12-15-2008
Location: Disneyland Adjacent and anywhere in Baja
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Mexico is a far more socialist country than USA. Too many people listening to Rush. Maybe you need to think after listening. I'd love to know how many
of the anti-socialist folks are on Social Security and Medicare. And by the way, there have been tentative efforts made to extend Medicare to Mexico,
inasmuch as the care available matches first world, but at third world prices.
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rogerj1
Nomad
Posts: 265
Registered: 4-29-2004
Location: Gig Harbor, WA
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OK, here's my 2 cents worth.
First post wisely mentioned the baby boomers moving through the python. So coming out of the python they all want smaller, easier, more convenient and
now affordable retirement housing. Safety, access to healthcare, availability of leisure activities are most important to seniors, which is the only
sector of the housing market that will matter. Most people are scared to death of Mexico right now, so it will be awhile before seniors come back in
any numbers.
My fearless prediction on investments: Forget about appreciation for awhile, the only thing that will matter with investments going forward is
dependable cash flow. So for real estate, that means, after maintenance and administrative costs, you can get a cash flow that's competitive with
bonds and stock dividend yields which are currently around 5-7%. If you go back 40-50 years before the baby boomers started skewing housing prices,
real estate was all about yield.
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BajaGringo
Ultra Nomad
Posts: 3922
Registered: 8-24-2006
Location: La Chorera
Member Is Offline
Mood: Let's have a BBQ!
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Problem is, I don't think you can put too much faith in economic models of the past. We are moving to a global economy and now in a global recession.
These are uncharted waters...
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fishbuck
Banned
Posts: 5318
Registered: 8-31-2006
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I'm thinking that building supplies might be coming down in price.
True or false?
"A ship in harbor is safe, but that is not what ships are built for." J. A. Shedd.
A clever person solves a problem. A wise person avoids it. – Albert Einstein
"Life's a Beach... and then you Fly!" Fishbuck
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CaboRon
Ultra Nomad
Posts: 3401
Registered: 3-24-2007
Location: The Valley of the Moon
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Mood: Peacefull
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| Quote: | Originally posted by Bajahowodd
Mexico is a far more socialist country than USA. Too many people listening to Rush. Maybe you need to think after listening. I'd love to know how many
of the anti-socialist folks are on Social Security and Medicare. And by the way, there have been tentative efforts made to extend Medicare to Mexico,
inasmuch as the care available matches first world, but at third world prices. |
If Medicare were extended to Mexico more people would be able to retire here.
CaboRon
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k-rico
Super Nomad
Posts: 2079
Registered: 7-10-2008
Location: Playas de Tijuana
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I don't know if this is a trend, but it is a fact that both of my tenants are Mexican-Americans who decided to move to the Mexican side of the border
to reduce their housing costs. Both work in San Diego and commute using Sentri passes.
A few of my neighbors are also Mexican-Americans who recently retired from American jobs, sold their southern California houses (before the real
estate collapse), and bought modern new houses in the private gated TJ development I live in (I'm one of the few gringos) for at the time was probably
a third, maybe 1/2 now, of what they sold their stateside houses for.
Plus, living close to the border, it is quite possible to use Medicare in the states for non-emergency health care.
If I were selling a house now in the TJ - Ensenada corridor I'd target Mexican-American buyers by using Spanish speaking realtors and Spanish language
newspapers in the San Diego south bay area and perhaps the Spanish speaking areas of Los Angeles.
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shari
Select Nomad
Posts: 13050
Registered: 3-10-2006
Location: bahia asuncion, baja sur
Member Is Offline
Mood: there is no reality except the one contained within us "Herman Hesse"
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cement just went up to 140 pesos a sack and wood is just through the roof right now. I just saw a waterfront lot here though 770 square meters with
power and water...municiple titled and the guy wants 200,000 pesos....wont last long for sure as there are few waterfront places left.
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cantinflas
Junior Nomad
Posts: 75
Registered: 2-4-2009
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I just want to know where Roger is getting 5 to 7 percent right now? Please tell me as I have both and am not getting anythin close to that.
[Edited on 2-18-2009 by cantinflas]
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tripledigitken
Ultra Nomad
Posts: 4848
Registered: 9-27-2006
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Many of the DOW component stocks are yielding in excess of 5%. Alcoa Aluminum (AA) is currently paying 9% for example. Yes, the share price is most
likely to go down before it begins it's climb back up. As long as they pay dividends, you will always get the 9% as income, based on your original
investment.
Ken
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rogerj1
Nomad
Posts: 265
Registered: 4-29-2004
Location: Gig Harbor, WA
Member Is Offline
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The trick on yield is to buy something that will weather a recession and has enough earnings to cover the dividend: Philip Morris 6.1%, Altria 8.2,
AT&T 7.1, Pfizer 9%, Merck 5.3, Diageo 5.9.
Basically, Drugs, Booze, and Cigarettes!
If stocks make you queasy, you can buy bonds from companies like Goldman Sachs, Morgan Stanley, Prudential Financial yielding 5-7% with 2-5 year
maturities. These are the sort of alternatives to real estate that are out there right now. U2U if you want more specifics.
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cantinflas
Junior Nomad
Posts: 75
Registered: 2-4-2009
Member Is Offline
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Thank you Roger. It seems I have some shuffling to do.
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Woooosh
Banned
Posts: 5240
Registered: 1-28-2007
Location: Rosarito Beach
Member Is Offline
Mood: Luminescent Waves at Rosarito Beach
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| Quote: | Originally posted by CaboRon
| Quote: | Originally posted by Bajahowodd
Mexico is a far more socialist country than USA. Too many people listening to Rush. Maybe you need to think after listening. I'd love to know how many
of the anti-socialist folks are on Social Security and Medicare. And by the way, there have been tentative efforts made to extend Medicare to Mexico,
inasmuch as the care available matches first world, but at third world prices. |
If Medicare were extended to Mexico more people would be able to retire here.
CaboRon |
Or be able to move further away from the troubled border regions to real Mexico.
\"The only thing necessary for the triumph of evil is for good men to do nothing\"
1961- JFK to Canadian parliament (Edmund Burke)
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