My ownership costs are horrendous. ...

Many thanks for the analysis. It is greatly appreciated. It confirms what I have always believed. Having a place right on the ocean ain't fer sissies!

good for you, hoping that you don t have your trust with the grossly incompetent Scotiabank.

Nope.
I’m with that ‘upstart’ Intercam

NOTHING beats ownership… IF IF IF you can afford it.
And if you’re dumb lucky… as I was…then my property (condo) almost doubled in value in 5 years.

I’m not convinced it is “dumb luck”.

Recently I was talking with someone who is considering buying a US$500,000 property in Troncones. They are doubting themselves.

They said they have owned several dozen properties over the past few decades.

I asked how many of those times they lost money. The answer was zero.

Yes, putting money into real estate for two or three years is speculation. It is illiquid and property values can drop. I think that putting money into real estate for 10 years or more is an investment strategy that has been largely favourable.

It’s not why I bought it.
I didn’t even see it as an ‘investment’… well maybe an investment in my health and we’ll being…

My view WAS that there were three aspects.

1. Enjoyment of property.
2. Revenue.
3. Capital appreciation.

#1 was the most important and it has more than fulfilled that goal.

#2 has been a disappointment. Costs have been much higher than I expected and revenue less.

#3 has been embarrassingly fulfilled.

My predial and fidecomiso fees over those years have come nowhere near my property taxes alone in Canada.

If it isn't too much of an imposition, how would you compare the total costs of your Mexican property with the alternative of renting for six months of the year? When people ask me why I don't buy a property in Zihua, I reply that renting is just so cheap and easy. Of course, I am only staying a week or so at a time about 4 or 5 times per year.

I’ll take a stab at that.
NOTHING beats ownership… IF IF IF you can afford it.
And if you’re dumb lucky… as I was…then my property (condo) almost doubled in value in 5 years.
It’s not why I bought it.
I didn’t even see it as an ‘investment’… well maybe an investment in my health and we’ll being…

But my rental costs would also be horrendous for what I own.

I could not possibly afford to rent for six months, a two bedroom, two bathroom, beachfront house with a private pool, over 1500 sq feet of deck space, a garage, and a 400 sq ft apartment on one-third of an acre.

High costs are associated with the destruction that beachfront property experiences. I bought a microwave oven. The salt air destroyed the circuit boards within a year. My neighbour has gone through five microwave ovens in 10 years. (I gave up after one microwave.) I pay a maid year round, because the salt has to be wiped off of things every couple of days whether there is anyone at the house or not. A yard worker has to work year round to water plants to keep them alive during the dry season and to keep the jungle from reclaiming the land during the rainy season. The pool requires constant attention and maintenance.

People who come from climates that have winters think we know about the effects of weather. I know I did, having lived in Saskatchewan, Alberta, Winnipeg, Toronto, etc., but minus 30° C and snow is nothing like the ravages of plus 30° C and constant salt air.

People who think that beachfront rentals are expensive have no idea of the costs of ownership of such properties.

If I were renting for six months, I would be renting an apartment some blocks from a beach. I would be dealing with people on the other sides of walls who might be wonderful… and might be horrible.

So renting an apartment several blocks from salt water makes far more economic sense from year to yer than owning beachfront property. But it is also a completely different experience.

(I have not included discussion of appreciation of property values because I hope to still own the property when I plan to die 30 years from now. )

My predial and fidecomiso fees over those years have come nowhere near my property taxes alone in Canada.

If it isn't too much of an imposition, how would you compare the total costs of your Mexican property with the alternative of renting for six months of the year? When people ask me why I don't buy a property in Zihua, I reply that renting is just so cheap and easy. Of course, I am only staying a week or so at a time about 4 or 5 times per year.

My predial and fidecomiso fees over those years have come nowhere near my property taxes alone in Canada.

That was Plan A.

But I knew it was important to have a Plan B.

Plan B was six months of the year in Troncones with margaritas.

I did the opposite and took my Canada Pension and Old Age Security at 60, mainly because I had to given the situation at the time. With the way it is structured in Canada, you break even with waiting until 65 at age 78! "

2-20-2023
@Quadra Paul

Awhile back when trying to figure out whether or not to wait 4 more years to start with Social Security.....

After "crunching the numbers", my "break even" point would be at age 77, similar to your result.

I figured that at the least, (short of having a fatal accident) I would live until the same age as my parents, around 70, which I'll reach this year 2023.

IF I didn't particularly need the funds, I would have waited until age 66, to get the higher monthly check, as the other user commented that he had success in doing.

Bottom line is that it's somewhat of a "crapshoot ".

Hola
I retired from my job as a Canadian public servant when I turned 60. That was 2009. (Ok do the math I'm 74 in April) HR said that it would take until I was 84 til I would see any affect of taking my CPP (Canadan Pension Plan) early. I still had to wait til I was 65 to collect my OAS (Old Age Security).
No regrets.

I did the opposite and took my Canada Pension and Old Age Security at 60, mainly because I had to given the situation at the time. With the way it is structured in Canada, you break even with waiting until 65 at age 78! "

2-20-2023
@Quadra Paul

Awhile back when trying to figure out whether or not to wait 4 more years to start with Social Security.....

After "crunching the numbers", my "break even" point would be at age 77, similar to your result.

I figured that at the least, (short of having a fatal accident) I would live until the same age as my parents, around 70, which I'll reach this year 2023.

IF I didn't particularly need the funds, I would have waited until age 66, to get the higher monthly check, as the other user commented that he had success in doing.

Bottom line is that it's somewhat of a "crapshoot ".

“If thou wilt make a man happy, add not unto his riches but take away from his desires.” Epicurus

These are wise words. Often, we in the West equate the Eastern concept of Nirvana with the Western concept of Heaven. However, the two are diametrically opposed to one another. Heaven is the fulfillment of all desires. Everyone gets a halo and a harp and there is volleyball and badminton and every night there is choir practice and a big birthday party. In this manner, we learn that death is no longer something to be feared.

On the other hand, Nirvana is the destruction of all desires. You systematically work to remove all desires until finally you are even no longer attached to the desire of life. In this other manner, we learn that death is no longer something to be feared.

Deep philosophical discussions on an ex-pat Internet forum about Zihuatanejo. What could be better! (Certainly better than banging away at work on your laptop.)

But being alive and not being able to do everything you want to do no matter the expense is not the retirement I wanted.

As Mae West said, “I've been rich and I've been poor, and rich is better.”

On the other hand, some of the happiest people I have known have been Mexicans whose incomes have been very low.

“If thou wilt make a man happy, add not unto his riches but take away from his desires.” Epicurus

In my mind it doesn’t matter it it “works out,” I don’t care if I break even. I care that I have enough SS, pension and IRA income to do what I want when I want without worrying about running out of money. By delaying our retirement until 70, we have achieved this goal.

When I referred to “working out”, I didn’t mean financially, I meant regarding longevity. Delaying gratification to have more money in retirement doesn’t mean much if one is dead before retirement.

But being alive and not being able to do everything you want to do no matter the expense is not the retirement I wanted.

In my career, I worked with a number of people to assist them to leave their jobs early when their employment relationship become too uncomfortable.

Most of those people contacted me within a year of their early retirement. Every one of them reported the same thing in their own words.

“I have one regret about taking early retirement. I regret that I didn’t do it earlier.”

In my mind it doesn’t matter it it “works out,” I don’t care if I break even. I care that I have enough SS, pension and IRA income to do what I want when I want without worrying about running out of money. By delaying our retirement until 70, we have achieved this goal.

When I referred to “working out”, I didn’t mean financially, I meant regarding longevity. Delaying gratification to have more money in retirement doesn’t mean much if one is dead before retirement.

One of my deceased coworkers commented metaphorically, a few weeks before his death, “I’ve spent my whole life dodging cars to get across the street. Just as I was going to put my foot on the curb, I’m getting hit by a bus.”