Real Estate investment...USA or Mexico

jerry

Well Known Member
#1
I love my Mexican house but as an investment it does suck....
Real world comparison:
Friends bought condos for around 200k in Seattle and RP area in 2012.The Seattle one sold today for $435,000.The Mexico one is close to selling too...for $250k....

we went in on a Idaho ski area 1200sq ft. Cottage...$170000 ...it just sold for $350. My friends 1200sq ft home in Santo Tomas price just dropped to 100k

Anyone have any encouragement for us owners?
 
#3
I love my Mexican house but as an investment it does suck....
Real world comparison:
Friends bought condos for around 200k in Seattle and RP area in 2012.The Seattle one sold today for $435,000.The Mexico one is close to selling too...for $250k....

we went in on a Idaho ski area 1200sq ft. Cottage...$170000 ...it just sold for $350. My friends 1200sq ft home in Santo Tomas price just dropped to 100k

Anyone have any encouragement for us owners?
Sorry, but you are comparing apples to oranges, as I live in Washington, and have family in Seattle. In Rocky Point you live on the beach, in Seattle you can't see the ocean for $500k.

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jerry

Well Known Member
#4
Sorry, but you are comparing apples to oranges, as I live in Washington, and have family in Seattle. In Rocky Point you live on the beach, in Seattle you can't see the ocean for $500k.

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True but wait till you try to sell...hassles on hassles. Doesn't even include the Obrador effect
 

wendell

Active Member
#5
people need to look at this differently. selling price is not the most important thing--what you actually get in your pocket is the important number. Even if you bought before the crash it is hard to come out ahead selling today because of the difference in the peso exchange. Sales are actually calculated by the government in pesos--not dollars. So lets say you bought before the bust and you paid 250K and you sell now for 450K, which is being VERY optimistic, her is how it approximately work out. Assume 11p/$buy and 20p/$ sell
selling price today: 450K x 20/$ = 9,000,000 pesos
purchase price: 250K x 11p/$ = 2,750,000 pesos
capital gain= 6,250,000 pesos
X 25%
tax= 1,562,500 pesos
Net before closing costs = 4,687,000 divided by 20 = 234,350 dollars
Net loss: 15,625 dollars (not including closing costs)
I know the capital gains can be manipulated to reduce that, maybe even enough to show a profit but I don't think you get it enough to give you an acceptable ROI.
Of course the opposite can also happen--buy at 20p/$ and it gains against the dollar and the flip of the above could happen. I don't think that will happen any time soon.
I think, like many others on here, buy to enjoy and if you happen to make money --great--bit don't count it
 

SunDevil

Well Known Member
#7
this is something I have debated for several years. I have a buddy that has two rental properties in RP. I asked him amount annual returns. He said, break even at BEST. lets say you invest $200K. if you get 10% return in the stock market that is $20K a year to use to vacation ANYWHERE you want. $200K in a property in MX ties you to that property. My second option would be a rental property in the US and then use the returns to vacation ANYWHERE. Last would probably be rental in MX.
 

jerry

Well Known Member
#8
this is something I have debated for several years. I have a buddy that has two rental properties in RP. I asked him amount annual returns. He said, break even at BEST. lets say you invest $200K. if you get 10% return in the stock market that is $20K a year to use to vacation ANYWHERE you want. $200K in a property in MX ties you to that property. My second option would be a rental property in the US and then use the returns to vacation ANYWHERE. Last would probably be rental in MX.
Real nice 100 k house on back row down in Santo Tomas...close to your fishing grounds...my buddy has skin cancer and can't hang at the beach anymore
 

marybna

Well Known Member
#9
I have had my Bella one bedroom since the start. It is rented alot and that pays the expenses. Because I scraped together enough to pay it off that help. I don't have a payment but I do have HOA dues, utilities ,taxes, upkeep etc. I was from Hawaii so my husband knew what he was getting. This is alot cheaper then going back to the islands four or five times a year and the dog can go. As long as I can go down, I will keep it. When I can't I will see it.
 
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