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Denverlittleton
Newbie
Posts: 3
Registered: 9-20-2020
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La Paz real estate
I’m coming to la Paz in October to look at real estate.
How has la Paz real estate been doing?
I read a post that said to offer 60% of the asking price. Is this good advice?
Has real estate been selling in la Paz?
If I bought a 3 bedroom 2 bath house, 1500 sq feet brand new. Would I be able to rent it out for 1000 per month?
How do I find out what places sold for?
Do you see la Paz getting more expensive?
Lots of questions and any advice is appreciated.
Thanks
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JZ
Select Nomad
Posts: 10566
Registered: 10-3-2003
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Quote: Originally posted by Denverlittleton  | I’m coming to la Paz in October to look at real estate.
How has la Paz real estate been doing?
I read a post that said to offer 60% of the asking price. Is this good advice?
Has real estate been selling in la Paz?
If I bought a 3 bedroom 2 bath house, 1500 sq feet brand new. Would I be able to rent it out for 1000 per month?
How do I find out what places sold for?
Do you see la Paz getting more expensive?
Lots of questions and any advice is appreciated.
Thanks
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Based on this post op, you aren't sophisticated enough to invest in real estate.
Stick to renting.
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Denverlittleton
Newbie
Posts: 3
Registered: 9-20-2020
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| Quote: Originally posted by JZ | | Quote: Originally posted by Denverlittleton | I’m coming to la Paz in October to look at real estate.
How has la Paz real estate been doing?
I read a post that said to offer 60% of the asking price. Is this good advice?
Has real estate been selling in la Paz?
If I bought a 3 bedroom 2 bath house, 1500 sq feet brand new. Would I be able to rent it out for 1000 per month?
How do I find out what places sold for?
Do you see la Paz getting more expensive?
Lots of questions and any advice is appreciated.
Thanks
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Based on this post op, you aren't sophisticated enough to invest in real estate.
Stick to renting.
I am not currently renting. I own several properties and rent them out, along with owning a software consulting company. The lack of information
about pricing and resale values is what I am interested in. Real estate agents are telling me that la Paz is booming, yet when I read here people say
prices are dropping. Minus a transparent system all I can try todo is fish for information. If the cost of a property is 130,000 and I can rent it
out for 1000 to 1200 per month, then the rate of return would justify the cash investment.
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Mula
Super Nomad
Posts: 1655
Registered: 8-16-2011
Location: San Nicolas y Lopez Mateos
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Probably not. Maybe 500 to 700 a month. for 6 months of the year. Summer is too hot.
Electric for air conditioning is expensive and most people leave for the summer.
Check Craig's list bajasur for prices, maybe.
Make friends with a couple of RE agents. ]
Live there for awhile to make your assessments.
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Lee
Ultra Nomad
Posts: 3508
Registered: 10-2-2006
Location: High in the Colorado Rockies
Member Is Offline
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| Quote: Originally posted by JZ | | Quote: Originally posted by Denverlittleton | I’m coming to la Paz in October to look at real estate.
How has la Paz real estate been doing?
I read a post that said to offer 60% of the asking price. Is this good advice?
Has real estate been selling in la Paz?
If I bought a 3 bedroom 2 bath house, 1500 sq feet brand new. Would I be able to rent it out for 1000 per month?
How do I find out what places sold for?
Do you see la Paz getting more expensive?
Lots of questions and any advice is appreciated.
Thanks
|
Based on this post op, you aren't sophisticated enough to invest in real estate.
Stick to renting.
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If you’re here for advice, take it from the responses you get.
Rent, live there, go slow, talk with locals, learn the market. Show up with cash in hand will get you in trouble. Pay attention.
US Marines: providing enemies of America an opportunity to die for their country since 1775.
What I say before any important decision.
F*ck it.
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SFandH
Elite Nomad
Posts: 7084
Registered: 8-5-2011
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Some will probably disagree, but I wouldn't buy in an urban area, or close to one, unless the house was in a private, gated, guarded development.
Security is a major concern everywhere in Mexico.
It will also be a more desirable rental. Easier to rent, less turnover.
[Edited on 9-21-2020 by SFandH]
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pacificobob
Super Nomad
Posts: 2308
Registered: 4-23-2006
Member Is Offline
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| Quote: Originally posted by JZ | | Quote: Originally posted by Denverlittleton | I’m coming to la Paz in October to look at real estate.
How has la Paz real estate been doing?
I read a post that said to offer 60% of the asking price. Is this good advice?
Has real estate been selling in la Paz?
If I bought a 3 bedroom 2 bath house, 1500 sq feet brand new. Would I be able to rent it out for 1000 per month?
How do I find out what places sold for?
Do you see la Paz getting more expensive?
Lots of questions and any advice is appreciated.
Thanks
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Based on this post op, you aren't sophisticated enough to invest in real estate.
Stick to renting.
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disregard the above council from a California weekender. buy what you want.
i think some of us can afford to do so.
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John Harper
Super Nomad
Posts: 2289
Registered: 3-9-2017
Location: SoCal
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You might want to look into laws regarding owning and renting out property in Mexico. As a US citizen, you might have issues with US and Mexico tax
laws.
John
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RocketJSquirrel
Nomad
Posts: 251
Registered: 8-3-2019
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I second JH's advice above. Landlord/tenant law is very different in Mexico and you may find evictions are expensive and time consuming. Sometimes
impossible. (Nothing is really impossible, but it can and does depend on your creativity and CASH on hand.)
I too have bought and sold and rented property most of my life (some in foreign lands) and here, maybe anywhere, you really need to live in the area
you want to buy. At least for a while and hang out at the local bar/club(s). A lot of it will be BS, but there will be some things worth hearing.
It's okay to invest that way here, if you are exceedingly careful. Be aware there can be lots of surprises. I was super lucky to find my place and I
was totally ignorant in the deal. It worked out great, but I am not sure you are looking for that roll of the dice. I wasn't! Glad it worked out
though...
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Lengua
Nomad
Posts: 203
Registered: 9-13-2011
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Most Realtors are eternal optimist and most will tell you that their city is on fire!! "Better buy now before the prices go up" We know one realtor
that puts a newsletter out in La Paz and she touts that La Paz is the place to buy if you want a Covid 19 hide away....My wife and I said wow.
If its strictly a rental and investment property then hook up with a realtor and tour some neighborhoods. The realtor we spoke with was informative
and shared sales comparables.
We prefer a gated community like Costa Baja now called Puerta cortes. Were not retired and only spend 12-15 weeks a year there and we rent it out by
the week to others. For us its not meant to be a cash generator but does off set the annual expenses such as HOA , taxes and beach club membership.
The place is gated , secured ,has 4-5 restaurants and the golf club on the hill not to mention the full service marina.
Most Nomads here will say rent first but this sounds like its going to be a rental and you're expecting a return. If you're buying for your self I
agree with what fellow Nomads have said and if its an investment property you better be damn sure you know where you're buying and who you're renting
to.
As an owner/user I have a professional PM company manage the rental aspect. Their my boots on the ground. If not you might have a tenant that has a
multi generational family of 15 living there including a trailer.
Do your homework !!!!
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Alan
Super Nomad
Posts: 1626
Registered: 4-6-2005
Location: Yucaipa, CA/La Paz
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As far as property values in La Paz all I can do is share my personal experience. I bought in La Paz about 13 years ago at the top of the market.
Then the US housing market crashed! As they say in Baja, "when the US gets a cold, Mexico get pneumonia". So as the US recovered from her cold, La Paz
was still battling pneumonia. Prices were just starting to hit pre-crash levels when Covid-19 hit.
Your guess will be as good as anybody else's as to what the future will hold from this point forward. There is one other thing you need to add into
your calculations and that is the currency exchange rates. At the time of my purchase the peso was selling at 10 to a dollar. It is now selling
right around 20-1. Therefore if I were to sell for anything more than 50 cents on the dollar I am subject to capital gains tax 
Thankfully investment wasn't the goal behind my purchase. I would do it all again if given the same opportunities. The times we've had and the
relationships we have built over the years have made it more than worth it. I have gained so much more than I have spent.
In Memory of E-57
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JZ
Select Nomad
Posts: 10566
Registered: 10-3-2003
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| Quote: Originally posted by Alan | As far as property values in La Paz all I can do is share my personal experience. I bought in La Paz about 13 years ago at the top of the market.
Then the US housing market crashed! As they say in Baja, "when the US gets a cold, Mexico get pneumonia". So as the US recovered from her cold, La Paz
was still battling pneumonia. Prices were just starting to hit pre-crash levels when Covid-19 hit.
Your guess will be as good as anybody else's as to what the future will hold from this point forward. There is one other thing you need to add into
your calculations and that is the currency exchange rates. At the time of my purchase the peso was selling at 10 to a dollar. It is now selling
right around 20-1. Therefore if I were to sell for anything more than 50 cents on the dollar I am subject to capital gains tax
Thankfully investment wasn't the goal behind my purchase. I would do it all again if given the same opportunities. The times we've had and the
relationships we have built over the years have made it more than worth it. I have gained so much more than I have spent. |
I sold my MX property just before the crash in California. A marina front house at Marina Real in Sonora.
Bought 15 foreclosure properties in Colorado in 2009-2010. Have been selling them off the last 5 years.
Next property I buy in MX will be in Loreto.
Just like anything else, real estate investing is all about timing.
[Edited on 9-22-2020 by JZ]
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RocketJSquirrel
Nomad
Posts: 251
Registered: 8-3-2019
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As Alan suggests, currency fluctuations can be a problem. I bought a condo in Thailand years ago and when I sold it, there were loads of "technical"
problems (read: bureaucratic corruption). Far too much to go into here, but bottom line, I sold for exactly what I had purchased the property for,
probably 5-6 years earlier, in spite of a good run up in RE prices. Luckily the Thai baht had moved from Tbht44:US$1 to 25:1 while I was there. So I,
in fact, made a nice profit when I sold and converted to US$. But that was in no way due to my "genius" or insight into the market. It was sheer
luck.
But... if you intent was, as mine was, for income - it worked out great. I was able to keep it rented for long periods of time - put up a simple
website, advertised just a bit and did okay. There are important cultural LOCAL customs to be aware of in how you deal with building managers,
their "piece of the action" and how all that works, but if you pay attention, you can get those aspects right.
If you don't pay attention to those "local customs", you can find even your property manager working against you.
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JZ
Select Nomad
Posts: 10566
Registered: 10-3-2003
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| Quote: Originally posted by RocketJSquirrel | As Alan suggests, currency fluctuations can be a problem. I bought a condo in Thailand years ago and when I sold it, there were loads of "technical"
problems (read: bureaucratic corruption). Far too much to go into here, but bottom line, I sold for exactly what I had purchased the property for,
probably 5-6 years earlier, in spite of a good run up in RE prices. Luckily the Thai baht had moved from Tbht44:US$1 to 25:1 while I was there. So I,
in fact, made a nice profit when I sold and converted to US$. But that was in no way due to my "genius" or insight into the market. It was sheer
luck.
But... if you intent was, as mine was, for income - it worked out great. I was able to keep it rented for long periods of time - put up a simple
website, advertised just a bit and did okay. There are important cultural LOCAL customs to be aware of in how you deal with building managers,
their "piece of the action" and how all that works, but if you pay attention, you can get those aspects right.
If you don't pay attention to those "local customs", you can find even your property manager working against you. |
Property in MX is sold in US $.
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chippy
Super Nomad
Posts: 1722
Registered: 2-2-2010
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| Quote: Originally posted by JZ | | Quote: Originally posted by RocketJSquirrel | As Alan suggests, currency fluctuations can be a problem. I bought a condo in Thailand years ago and when I sold it, there were loads of "technical"
problems (read: bureaucratic corruption). Far too much to go into here, but bottom line, I sold for exactly what I had purchased the property for,
probably 5-6 years earlier, in spite of a good run up in RE prices. Luckily the Thai baht had moved from Tbht44:US$1 to 25:1 while I was there. So I,
in fact, made a nice profit when I sold and converted to US$. But that was in no way due to my "genius" or insight into the market. It was sheer
luck.
But... if you intent was, as mine was, for income - it worked out great. I was able to keep it rented for long periods of time - put up a simple
website, advertised just a bit and did okay. There are important cultural LOCAL customs to be aware of in how you deal with building managers,
their "piece of the action" and how all that works, but if you pay attention, you can get those aspects right.
If you don't pay attention to those "local customs", you can find even your property manager working against you. |
Property in MX is sold in US $.
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I beg to differ JZ. I´ve bought 8 different properties in 3 different states down here and never paid nor were they advertized/sold in USD.
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RocketJSquirrel
Nomad
Posts: 251
Registered: 8-3-2019
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Might be, but probably not a legal contract in that case.
Be careful if you have such assumptions.
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RocketJSquirrel
Nomad
Posts: 251
Registered: 8-3-2019
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I would tend to think that any contract for real property in any country is going to have a requirement for a legal agreement to be denominated in the
local currency. Food for thought if you intend to enforce your contract of sale.
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JZ
Select Nomad
Posts: 10566
Registered: 10-3-2003
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Listed in US dollars. Gets converted for the contract. Converted back when it goes into your US bank account.
The point is, you don't have worry about long term fluctuation of the peso vs. the $ as you suggested in your Thailand example. Different story for
Canadian buyers.
[Edited on 9-22-2020 by JZ]
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chippy
Super Nomad
Posts: 1722
Registered: 2-2-2010
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Who would by Mexican property listed in USD? Overpricing flags go up when I see that. That´s usually when gringos are reselling property they bought
in pesos or Mexicans looking for gringo suckers.
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JZ
Select Nomad
Posts: 10566
Registered: 10-3-2003
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| Quote: Originally posted by chippy | | Who would by Mexican property listed in USD? Overpricing flags go up when I see that. That´s usually when gringos are reselling property they bought
in pesos or Mexicans looking for gringo suckers. |
https://www.findmexicohouses.com/results-gallery/?city=19870...
Think about all the places listed on Baja Nomad over the years. I don't remember one being listed in pesos?
[Edited on 9-22-2020 by JZ]
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