Zihuatanejo-Ixtapa Message Board - Real Estate Financing in Mexico

Real Estate Financing in Mexico (reply)

nicatnit — Mon, 10 Oct 2022 23:38:09 +0000

So true that shorting stocks is very risky. In the example you tagged poor Joe should have bought put options instead of assuming all of that risk, especially considering how volatile the pharma sector is. At least he’d only have been out his initial investment. Personally I don’t like shorting. I’ve had some success with that approach to investing but betting for stocks to fall is like hoping a storm hits. Just not fun, though in hindsight this is the year for it.

Real Estate Financing in Mexico (reply)

robert thompson — Mon, 10 Oct 2022 19:35:44 +0000

Padrino, thank you for the advice. Fortunately, I am familiar with the downfalls of shorting and stay clear of it. I am a passive investor and refrain from trading as an individual.

Real Estate Financing in Mexico (reply)

nicatnit — Mon, 10 Oct 2022 18:52:25 +0000

Robert: I have to agree with Talley Ho about the prices for real estate here. We purchased 18 years ago and still follow the real estate market. In the very small Condo Association I’m part of the prices have been flat for that time period. The appreciation of the US Dollar hasn’t changed the prices as far as I can see. Circumstances of the current owners where a quick sale is part of the equation (ie: Illness or passing of an owner) seems to be one way of finding a good deal. Good luck with your purchase. You picked the best place I’ve ever been. But you knew that already.

Real Estate Financing in Mexico (reply)

Padrino — Mon, 10 Oct 2022 18:50:30 +0000

Besides there are no good places to invest money now unless you are good with playing the markets short.

WARNING: If you don't know what nicatnit is referring to when he mentioned "playing the markets short," then don't even think about exploring this type of market transaction. Shorting, as it is called, is immensely dangerous. There is no theoretical limit to how much you can lose. Legendary investor Peter Lynch says to never use shorting. And if that doesn't stop you, consider this poor slob who lost over $130,000 overnight on his $30,000 brokerage account.

Real Estate Financing in Mexico (reply)

Talley Ho — Mon, 10 Oct 2022 17:58:34 +0000

We have watched property prices here for years, and continue to even after purchasing our home here over 5 years ago.

Our observations show that property prices rarely change here. Our best guess on that is that most properties are completely owned: no mortgages, no insurance, in fact other than property taxes, no costs at all. Vacant places generally have no utilities to pay, and the property taxes are often ignored and just deducted from the purchase price when sold. If the property is just sitting there, with no real costs, the price doesn't seem to change.

These are simply our observations. Everyone will have different ones.

Real Estate Financing in Mexico (reply)

robert thompson — Mon, 10 Oct 2022 13:23:00 +0000

Thank you nicatnit. I'm also wanting to research the Ixtapa/Zihua RE price sensitivity to the impending economic downturn in the U.S. I may be best advised to wait for a while to see how prices react.

Real Estate Financing in Mexico (reply)

nicatnit — Mon, 10 Oct 2022 11:33:56 +0000

If you are able buy the property outright, do that now then wait for sanity (lower rates) to return to lending markets. We haven’t seen rate increases this agggressive since the 70’s. If you can wait for 18-24 months the Fed will eventually reverse course once again to counteract the coming recession and rates will be much better. Besides there are no good places to invest money now unless you are good with playing the markets short. Considering the rate you would pay today will be north of 6-7% I’d wait this out. Enjoy you new condo in paradise.

real estate Financing in Mexico (reply)

robert thompson — Sun, 09 Oct 2022 19:44:02 +0000

Thank you Talley Ho. I'll follow up.

Real Estate Financing in Mexico (reply)

Talley Ho — Sun, 09 Oct 2022 18:42:45 +0000

After saying for years that financing wasn't available here, I stumbled across Two Expats Mexico. They have been very good for everything I have watched.

Check this one out, it may help you. https://www.youtube.com/watch?v=Rzf5PpTFaZk

Real Estate Financing in Mexico

robert thompson — Sun, 09 Oct 2022 16:44:50 +0000

I have identified a condo in Ixtapa for $US 500,000. I can buy it outright but I'd prefer to finance a part of the purchase price, if the interest rate is reasonable. Is this possible? What are the steps to make it happen?