**** El Gitano ****

La Huerita

Well Known Member
A lot of us knew this housing bubble was going to burst but there also are some of us whom have purchased wisely and can offer the same or almost the same home at a reasonable price. I have a home w/ 3 bedrooms, 2 baths, a wet bar, 2 patios downstairs and a huge patio upstairs with a westerly view, just two or three minutes walk to Tucson beach or fifty feet back from ocean for only 1300.oo a month. I don't think this is outrageous and it is close to home.
You did it right, then. :thumbsup: Do you manage to keep it rented regularly?
 

beachgirl

Well Known Member
Quite a few years back, we looked into buying a lot in Laguna Shores (for the life of me, I can't remember exactly what year-probably 8 or 9 years ago). At that time, we thought we could afford the payments. Because we were so unfamiliar with everything in Mexico, we paid an attorney (who also had a real estate license and knew PP well) to go over everything (I think her name was Lisa Larson?). She didn't say to do it, but she didn't say not to do it. She said, in her professional opinion, it was a risky deal-it may come out okay or it may not. We decided against it and I'm so glad we did. We haven't been out there (Laguna Shores) in a long time, but I don't here much about it. The way the economy took a dive, there's no way we would be able to make the payments on it now. Does anyone have any info on how that deleveopment is going?
 

rockyptjoe

Well Known Member
Well , all I can say is we weren't looking for a fast buck. We bought because we loved the place and wanted to spend time there with our kids. We never intended on selling to make a lot of money and we own our place outright.
We also don't rent out ( NOT that there is anything wrong with that).

We aren't stupid, we bought what we could afford and we go down frequently. I guess we contributed to the problem though, right?
Unfortunately, there were many who were sold and bought based on the false hope that they could rent out their units and cover their costs....I remember sitting in my "trailer trash" camp site at Playa Bonita several years ago listening to a couple of Californians talking about how they had just bought their 3rd and 4th condo.....where are they now? The way the condos increased in price (almost a feeding frenzy, just like the housing in the US), they would have to rent at least half of each month to cover the costs.....yeah, right!!!! They are the ones who contributed to the problem! I've been in a couple of the condos...yes...you get a beautiful view, nice facilities....but don't tell me a 3 bedroom/2 bath unit on the 14th floor is worth $650K......
 

InkaRoads

cronopiador
The proper spelling is "guerra/o" which means dirty, filthy and in slang "guerra"will translate to "slot", nothing to do with clamming, keep in mind that "guera/o" has only one R which makes the difference.

But Joe, you said it yourself the false hope given to these people is what made them buy more than one condo and that false hope also made those prices seem nothing to worry about, 'cause as you know the rent will pay the mortgage.....
 
Last edited:

waterkids

Active Member
I would never say that was not going on. I just want people to understand that some of us were not in it for a profit but a home away from home. I feel like we are getting lumped in with people only interested in making money.
 
Last edited:

jerry

Well Known Member
Wahoo that is why I think if you bought a single family home that is a bit back from the beach you will be ok in 5 years when the boomers start retiring in mass. Boutique medical/longtime care is a natural for RP (hey viking funerals at sea on the 51 could be a good side business for our fishermen buddies). The word is condos and houses over 2500 sq ft will see huge property tax raises too. On the brighter side the World Cup is getting closer every day...usa usa usa usa




Waterkid, unfortunately the pain RP will have after the party is not yours or your kind in the making.

Big Speculators (builders and large land owners) take and leave the small specs to take the hit. The town citizens which never profited will also take a big hit to their expanded business and influx of migration created by the boomlet. Not enough business and the current hike in prices of services to equal US retail is a crazy strategy of a constricting spiral of Price and volume through Time.

It will be very hard for these 2-4 owners to survive the pain. Negative cash flow multiplied by leverage, multiplied by Greed. The Truth is Upkeep in very salty and Dune environment is Harsh and costly.

Waterkid, you know the pleasure of a vacation in RP, and having that access to you was your key. You are the minority but exactly the kind of owner that should have been promoted. You are what RP needs. Speculators do not spend time or money in RP. They come to visit their investment form time to time but rarely go out of their walled encampment.

Unfortunately Sellers wanted multiple buyers to unload and onecy owners, the heart of long life of these projects was not promoted. It was "Buy as much as you can" and sell to the onecies was the line. And while you waited, cash flow was promised not to be problem and some how guaranteed. (with out a contract)

I shouder to think of what will happen 5 years from now when maintenance fees are hiked to what most homes in Phoenix sell for. Fees in arrears of 15%/ of total will doom a project. The decay once started is hard to reverse. "WHAT, we need a new elevator?" Yes sir, we are making a special assesment on all units. What you own 3! Yes 3X

Yes salty air destroys at 10 times the rate of anything in Phoenix, Dry and low humidity, vs High &salty.


< Guerra: and I thought that was "War".>
 

Kenny

Well Known Member
Doe's this look familiar waterkids? It should, I posted it to you a week ago.

"How could I fault someone for falling in love with the Sea Of Cortez, and wanting to have a place to look over it's splendor, and enjoy it's warm water and lovely beaches? Some of us do have a problem with how it was developed though, and that includes some people who own them".
 

Jim

Well Known Member
I bought my house 15 years ago for $22,000. Fixed it up a bit and added a room or two over the years. I don't know what it is worth today but I don't care because it is my home. I have also bought a few other houses and lots around over the years but all in town and nothing over $25,000. At this point, I owe nothing (except child support) and I like it this way. Things are slow right now but I'm fine because I no longer have a $2000 mortgage and $40,000 in credit card debt. Recovery will take some time but it will come. IMHO, if the Americans don't come back to take advantage, the Mexican Nationals will. I've seen more and more vacationers and investors from in Country. I love it here and have no plans of returning to the States any time soon.
 

bringitbig

Well Known Member
.fullpost{display:inline;}

-by El Gitano Peñasco, "The Peñasco Gypsy"

After a little more than six-weeks off, traveling about Mexico and the USA enjoying a long overdue vacation, I decided that upon my return to PP and writing for this blog I’d kick the new year off with a harangue that is, IMHO, something that needs to be openly discussed.

You see, as much as I truly love this nation, the people, their history, culture, this community, the food (and sauces), the beer, etc., I realized while I was on my ‘walk-about’ that there had been a major fraud perpetrated against the citizens of Puerto Peñasco and it mostly came from a select group of the ‘beautiful-people’ north of our border, specifically, ‘some’ Arizonans (and ‘some’ PP locals too).

For those new to this blog, to Puerto Peñasco (and indeed Mexico), the fact of the matter is that Phoenicians have been having ‘their way’ with PP for a very long time. Going back as far as I can remember (a couple decades) many Arizonans have been traveling down here for years, pretty much doing as they pleased, and throughout that era they also began snagging up property for centavos on the peso.

That’s fine, but for most the primary objective was to build their little casita(s) so they had a place to ‘play’ on weekends and holidays, etc. They never had any retirement and/or other long term living/business aspirations and only thought of Peñasco as their play-ground to be used ‘at-will’ with plans some day too ultimately dump their property and this community when it was convenient…

And that is the way it was for years until post 9/11. It was that event that turned this “quaint little fishing village” with its ‘drive-to’ feature from AZ into sort of a gold rush. Developers and real estate sharks began pouring southbound across the border, reminiscent of the scene in the 1987 Cheech Marin comedy movie “Born in East L.A.” when thousands of Mexicans were fixin' to rush the border northbound…

Next came the "land-speculators" who also started pouring in, but the ones I’m talking about are not the "high-roller" types but (mostly) Phoenicians (aka: middle to upper class incomes) who were being sold by mostly Gringo real estate gurus who also came down for the quick buck and were ‘pitching’ Puerto Peñasco as (e.g.) "the next Cabo. Buy today, sell tomorrow and make a fortune…"

There were even real estate brokers and reps who held sales-seminars up in the greater Phoenix area; buyers-fever (aka: greed) flourished, and before you knew it even the waitress at a local AZ Denny’s and her husband (with only a part time job) were trying to get in on the action.

Back in 2004-2005 I and others warned that the price increases, demand, etc. were not sustainable and that a crash was soon inevitable. But there was no shortage of developers, real estate folks and owners telling us that we were wrong and many of us were scorned for even suggesting such ‘nonsense’. Had 'they' had a chance they might have even enjoyed burning us at the stake!

After the Big Bang (the crash) hit and the last of the lingering pump and thumping leaches starting leaving town, most every one else finally realized the ‘ride’ was over-- including mi amigo Paco, who sadly had to acknowledge that his sweltering little 850 square foot casa wasn’t going to bring him $400,000 (USD) cash. Ultimately PP was abandoned by the carpetbaggers and left to fend for itself.

Of course it wasn’t just the developers and real estate parasites who were to blame, as they had an awful lot of help from certain "commissions" on both sides of the border, including newspapers and other predominate "authorities" with vested interests in the area who constantly released, IMO, ridiculous press releases and/or comments, assertions and statements such as (e.g.) "Rocky Point has over 3 Million tourist per year".

And so here we are in 2010 with many survivors clinging on with visions of sugar-plums dancing in their heads and, like children, oh so hopeful that when they awake from their long sleep things will return to ‘the good old days’. That is what I fear the most, that ‘they’ and their enablers will strive to return to ‘business as normal’ and ignore the potential future for Puerto Peñasco.

I say I fear that because right now, all across Mexico, real estate developers and businesses are gearing up for the economic rebound that is being forecast for Mexico by many professionals. The smart money seems to be on those ‘players’ who understand the causes and effects of the recent financial calamity and who, in part, will adjust their products, costs and marketing practices, etc., to a cautious but eager, enthusiastic and soon to be booming market.

This rebound includes a scramble for tourist and retiree dollars, too, but I can’t shake this feeling that once again most developers, businesses, new real estate sales agents and property owners here in Peñasco will continue to sit back on their laurels ‘thinking’ the bucks will start pouring into PP as if it were 2005 and once again they’ll ‘jack’ up the prices and tell anyone who’ll listen that PP "is destined to be the next Cabo and/or Vallarta…"

Take for example rental properties in Puerto Peñasco Vs. more popular destinations in Mexico, such as this place (one of many) I found three weeks ago for about $900 (USD) a month in Mazatlan:
“Beautiful 3 year old fully furnished home, 4 bedrooms, 3.5 bathroom… 4 minute walk to a great beach, walk to the park, restaurants, pubs, shops...

“Comes with fridge / freezer, washer / dryer, stove, dishwasher, A/C… and private parking for two cars. The house has a large tiled patio complete with deck chairs and outdoor furniture...”​
Here in Peñasco that same home, in a region sorely lacking the activities and amenities that Mazatlan offers (including Opera, numerous out-door cafés, great hospitals, movie theaters, night-clubs [real ones], Wal-Mart, major brand grocery stores, fine tailors and jewelers, pulmonias [open air taxis], countless beach front restaurants, etc.) would have an asking rental price of about $3,000 (dollars) a week (or month) if not more!

What most of these property-owners in PP don’t get is that places like Mazatlan, Ensenada, San Miguel de Allende, Puerto Vallarta, the Los Cabos area, etc. enjoy regional amenities 10 fold of what RP has to offer. These other regions also have developed very fine Expat communities over the years, and like it or not for many Gringo retirees, etc., that, too, is an attribute that PP cannot yet match.

Sometimes I don’t really know who to blame for many of the shortsighted, greedy and slothful so called ‘players’ here but an age old math illustration seems to describe them to a tee: If they were offered $1,000,000 (cash) today for their casita or a penny today and then double that amount each and every day for the next thirty days, they’d arrogantly and ignorantly snatch up the million today.

And as for that worn out Arizona ‘drive-to’ shtick thumped by many Gringo (and local) property owners, realtors, etc. (mostly from the 48th US State), forget about it!

First of all, that mostly only applies to buyers from Arizona and, OMG, for the difference in this rental example (Mazatlan home vs. a PP home) the savings alone would be about $2,100 (dollars) each and every month...

And with those extra pesos, amigos, if you needed or wanted to visit ‘North’ (for any reason) you’d be sipping Champagne and flying first-class, and do so often, from Mazatlan (and many other places in Mexico too) in about the same amount of time it takes to drive from PP to Phoenix!

Whether or not a new form of the “Puerto Peñasco Land Swindle” takes hold as more Phoenicians begin retuning and continue to ‘eat their own’ is yet to be determined.

But If Daniel Chavez and the gang get that airport fully operational and start bringing daily flights in filled with tourist and business folks from all around the USA, Canada and Mexico, most of whom have been to other parts of Mexico, then I’d bet the farm that after they sit through the Peñasco sales pitch they’ll mostly respond, briefly and with a little sneer on their faces, “Gracias, pero no gracias”!

¡Viva México y Puerto Peñasco!

[email protected]
Excellent article Cabo, and well written. I can't contest nor even try to throw my wieght around with all the others that have real life, day-to-day, or even month-to-month dealings in PP. But I'm confident if things return back to the way they were a few years ago, it's only going to get worse.
 
P

Penasco Pirate

Guest
I'm with Jim, although I'm not an owner in Penasco....yet. I will NEVER buy into the 'new Penasco'. I came it R.P. 10 years ago and could still drive down the beach a fair distance (I wish I could've been there 40 years ago!!) and now I have about 1/2 a mile to camp on Sandy Beach with the rest of what I've heard called 'vermin' by the greedy a$$ed owners of the condominiums now lining the most wonderful beach I ever cared to visit. Now to get some peice and quiet we drive to 'La Pinta' with all the local fishermen from Penasco and still have to look at condos! The Mayan is still in my view everytime I visit lest I drive further south! I hope my rant is not off key, I will continue to frequent the dive bars and all of my friend's places when I get a chance!!
 

Ladyjeeper

Sonoran Goddess
Staff member
Matt,
I can tell you stories about 40 years ago. I hate what it has become but I don't hate it enough to quit yet. :cry::sad::bunny:
 
Top