Any condo owners here?
- Thread starter warchild
- Start date
Everyone's definition of "worth it" is different. Las Palomas has very strict rules about furnishings in their rental units and owners using their own rental units, how they are allowed to be advertised, etc. Make sure you know exactly what the rules are at Las Palomas for owners in the rental pool. I do not own a unit at Las Palomas, but I have a 2bd/2ba at another resort. The first year we were owners we rented. At first it didn't bother me so much and the rental income checks were nice. But after awhile I got tired of taking my personal items out of my lock off each time we came down and then having to lock them up again when we left. If you need the money from the rental income then that changes everything. If you do not need the rental income and plan on using your unit a lot, then the luxury of having clothes in the closets, personal items in the bathrooms, and cold beer in the refrigerator every time you walk in is, in my opinion, a luxury that you cannot put a price on. Just my two cents . . . .
Penasco Services
Guest
What makes a condo worth owning? If you enjoy your time in Rocky Point and would rent to help offset the cost of ownership, it can be a wonderful second home. Owning a condo in the hopes of covering the expense through rental income will be very difficult.
Please know that Las Palomas is a very strict resort when it comes to owner managed rentals. They also don't allow many things such as having your own Telmex phone line or having your own satellite setup such as Dish or Direct tv. Confirm with the resort any such restrictions and understand that things may change in either direction as new HOA board members are elected.
Should you get to the point where you make an offer on a condo the recent change to immigration law requires you to have residency and a RFC number to complete the transaction. Closing costs are very high in Mexico as are the initial costs to set up a bank trust.
When dealing with pricing I would advise anyone to consider what the current market conditions are and not fall victim to the promises of what the market may be in the future. Although I love Rocky Point, it remains a city that does not have any jobs or industry (other than tourism) that would allow anyone to afford the costs associated with a condo on Sandy Beach. Are you prepared to ride things out if there is a slump in tourism? Are you prepared to pay ever increasing HOA dues if there are defaults from other owners?
If you love the city for what it is today, it is certainly a much more affordable option than any beachfront property in the United States. Do your independent research regarding immigration, home value, bank trust and closing costs before making any offer. Doing your homework and making an informed decision will allow you to enjoy many years of home ownership here in Peñasco!
Please know that Las Palomas is a very strict resort when it comes to owner managed rentals. They also don't allow many things such as having your own Telmex phone line or having your own satellite setup such as Dish or Direct tv. Confirm with the resort any such restrictions and understand that things may change in either direction as new HOA board members are elected.
Should you get to the point where you make an offer on a condo the recent change to immigration law requires you to have residency and a RFC number to complete the transaction. Closing costs are very high in Mexico as are the initial costs to set up a bank trust.
When dealing with pricing I would advise anyone to consider what the current market conditions are and not fall victim to the promises of what the market may be in the future. Although I love Rocky Point, it remains a city that does not have any jobs or industry (other than tourism) that would allow anyone to afford the costs associated with a condo on Sandy Beach. Are you prepared to ride things out if there is a slump in tourism? Are you prepared to pay ever increasing HOA dues if there are defaults from other owners?
If you love the city for what it is today, it is certainly a much more affordable option than any beachfront property in the United States. Do your independent research regarding immigration, home value, bank trust and closing costs before making any offer. Doing your homework and making an informed decision will allow you to enjoy many years of home ownership here in Peñasco!
Buffalo Marty
Guest
I purchased a 2bed/2bath in late 2012 and have been renting as well as going down as often as we can 
It is definitely nice to have the rental income, and we have not had any major issues with renters (damage/complaints/etc), but mis is correct that is would be REALLY nice to be able to leave all our personal belongings "out and about".
We have a 5 year balloon (as many of the condo sales do) and have been saving on the side so we can try to pay it off in full by then, or at least get it down low enough that we can pay it off in full via a "personal loan" in the US. That would let us at least have full ownership (via banktrust) as opposed to now, where we are still have a private loan with the original owner. Once we are in that circumstance, we plan to take it out of the rental pool, which would also let us think about making other improvements to the unit.
It is definitely nice to have the rental income, and we have not had any major issues with renters (damage/complaints/etc), but mis is correct that is would be REALLY nice to be able to leave all our personal belongings "out and about".We have a 5 year balloon (as many of the condo sales do) and have been saving on the side so we can try to pay it off in full by then, or at least get it down low enough that we can pay it off in full via a "personal loan" in the US. That would let us at least have full ownership (via banktrust) as opposed to now, where we are still have a private loan with the original owner. Once we are in that circumstance, we plan to take it out of the rental pool, which would also let us think about making other improvements to the unit.
I have owned 4 units down there. Sonoran was easy. LP hard and Bella easy. If you aren't going to use it a lot, just rent. There is a lot of paper work and other things. I like having my own stuff and be able to take my dog. But Jack and I are getting older and the up keep is too much. Remember it is on the ocean. Our kids live in LA and have no time. 20 years ago great idea, at 70 crazy.
I BOUGHT A 2 BDRM. 2 BA. CONDO IN OCTOBER OF LAST YEAR. TYPICALLY I WAS GOING DOWN ABOUT 4 TIMES A YEAR FOR A WEEK AT A TIME. THE COST WAS ABOUT $1150.00 A WEEK TO RENT A 1 BDRM.
$1150.00 X 4 = $4600.00. MY CONDO FEES ARE $365.00 PR MO. SO $4380.00 A YEAR, DAM NEAR A WASH AND AS FOLKS MENTIONED IN OTHER POSTS I CAN LEAVE MY PERSONAL EFFECTS. HAVE NOT THOUGHT ABOUT RENTING AT THIS TIME. CURRENTLY DOING SOME PAINTING AND UPGRADES. I'LL DEFINITELY
BE STAYING LONGER THAN 4 WEEKS OUT OF THE YEAR.
I DO HAVE TO PAY THE ELECTRICAL HOWEVER WHEN I'M THERE MY ELECTRICAL IN TUCSON IS VERY LOW SINCE I'M NOT USING IT. THE RATES FOR ELECTRICITY IN RP. ARE REASONABLE IN COMPARISON WITH TUCSON, SO I AM GOING TO SAY THE ELECTRICAL IS DAM NEAR A WASH.
MAYBE A YEAR FROM NOW I'LL POST WHAT AN ASS I MADE OF MYSELF. (DON'T KNOW WHY THE TEXT JUMPED SIZE)
$1150.00 X 4 = $4600.00. MY CONDO FEES ARE $365.00 PR MO. SO $4380.00 A YEAR, DAM NEAR A WASH AND AS FOLKS MENTIONED IN OTHER POSTS I CAN LEAVE MY PERSONAL EFFECTS. HAVE NOT THOUGHT ABOUT RENTING AT THIS TIME. CURRENTLY DOING SOME PAINTING AND UPGRADES. I'LL DEFINITELY
BE STAYING LONGER THAN 4 WEEKS OUT OF THE YEAR.
I DO HAVE TO PAY THE ELECTRICAL HOWEVER WHEN I'M THERE MY ELECTRICAL IN TUCSON IS VERY LOW SINCE I'M NOT USING IT. THE RATES FOR ELECTRICITY IN RP. ARE REASONABLE IN COMPARISON WITH TUCSON, SO I AM GOING TO SAY THE ELECTRICAL IS DAM NEAR A WASH.
MAYBE A YEAR FROM NOW I'LL POST WHAT AN ASS I MADE OF MYSELF. (DON'T KNOW WHY THE TEXT JUMPED SIZE)
Queen of Kings
Guest
I would also mention if you have your unit in the rental pool it will get beat up over time with renters coming and going. The more turnover the more damage. That matters to me but for some it's not really a concern.
Another option is to buy an 1/8th share in a beachfront property in Las Conchas. 8 partners are the beneficiary of a trust and you get your week every 8 weeks. Every year the schedule rotates one week so everyone gets their share of the popular spring breaks, 4th of July, memorial day weekend. The partners pool quarterly dues to keep the property in resort condition. Each partner has a 4x6 lockup in the garage so you can keep all your toys, beach chairs and such on property.
As a busy working couple, sitting down and planning time away for ourselves is usually last on the list. But when our week comes up, we grab a few clothes and off we go.
And did i say you could be in a 3000sf house, on the beach........
Let me know if you want any more info on this kind of option
As a busy working couple, sitting down and planning time away for ourselves is usually last on the list. But when our week comes up, we grab a few clothes and off we go.
And did i say you could be in a 3000sf house, on the beach........
Let me know if you want any more info on this kind of option
They vary with the age and quality of the house and motivation of the seller as you may expect. I think we have one in our place for sale for $100k?. Some bought as high as $225, one guy sold at $70 as he was retiring, moving out of state so just wanted out.
Quarterly dues are $1300 each. We've had a couple assessments for an AC here or reinforce the seawall there... the good news is those costs are divided by 8!
Most members don't rent if they cant use their share. potential renter damage not worth it. We swap weeks pretty well, say a partner wants to do a particular holiday or family celebration of some kind on a particular weekend
On the rare occasion, we require a healthy rental rate so we will hopefully get a family that appreciates quality and takes care. We don't allow 4 families with kids or a dozen spring breaker's to rent the place.
We have a personal relationship with our management company and they bend over backwards to take care of anything that comes up
The dues can be expensive if you don't use your time but if you take advantage, it's a pretty cheap little slice of heaven each time
Quarterly dues are $1300 each. We've had a couple assessments for an AC here or reinforce the seawall there... the good news is those costs are divided by 8!
Most members don't rent if they cant use their share. potential renter damage not worth it. We swap weeks pretty well, say a partner wants to do a particular holiday or family celebration of some kind on a particular weekend
On the rare occasion, we require a healthy rental rate so we will hopefully get a family that appreciates quality and takes care. We don't allow 4 families with kids or a dozen spring breaker's to rent the place.
We have a personal relationship with our management company and they bend over backwards to take care of anything that comes up
The dues can be expensive if you don't use your time but if you take advantage, it's a pretty cheap little slice of heaven each time
Landshark
Guest
Good stuff...thanks! I have never understood why this concept of ownership wasn't more popular. Unless you are loaded with money sharing ownership and maintenance of a vacation property makes so much sense. Do your quarterly dues include things like property taxes, homeowner's insurance, bank trust fees, etc? Are utility usages included as well or are they tracked and billed separately? Thanks!
dry heat
Pigeon coup coordinator
Las Palomas is a completely different resort from a few years ago. The HOA's funds are very healthy. Major upgrades have been completed in the last 2 years (ex. paint and rails). If you rent, the resort is ranked #1 on trip advisor. The resort has a strong rental market compared to every other resort in rocky point. If you refer your guests to the rental operator, you keep 75% of the rental income. I would check out the grounds of a few condo resorts and determine what appeals to you. Best!
Queen of Kings
Guest
That is rather amusing to me. In order to keep only 75% you have to do the referral. What do you get to keep on a non-referral? 50%? Seems to me the overhead cut is way too high.
Too high? The non-referral rate for most, if not all resorts is 65/35. You do realize that 35% has to cover everything needed to provide rental services. Who do you think pays employee salaries and benefits including front desk, maintenance, housekeeping, supplies such as toilet paper, soap, paper towels, cleaning products, coffee, reservation software costs, telephone and internet, rent, taxes, and so much more, etc.?
Penasco Services
Guest
The figures you quote are for owners who sign up with a property management firm and who wish to voluntarily use their services. The legality of forcing an owner to pay a commission to an agency when they wish to self rent has been in dispute for years. The most recent challenge to this was at the Sonoran Sun. After owners presented legal opinions from several prominent Mexican attorneys to the HOA, the exclusive given to Seaside was dissolved and owners are free to use a management company of their selection or self manage and pay an impact fee to the HOA.
Jim
Guest
Responding to the Sonoran Sun comment: Not true that owners can use any management company. They can use the onsite company (currently Seaside) or rent totally on their own. They are not allowed to use a different management company. Actually, also not true that the legal opinions favored one side or the other. There were legal opinions presented by both sides which supported both sides. In the end, a majority vote of owners determined that they may rent as "By Owner" if they choose.
Also, we were talking about rental company operators. Go back and read the thread from Dry Heat.
Penasco Services
Guest
Las Palomas forces owners to rent through their rental office even if the owner does not want their assistance. Paying a high percentage to a rental company when you delivered the client is insanity.