Buying property vs renting for longer term stays

[kss1dvr]

Inflation is at historic lows. 30 year T-bills are around 3%. I wouldn't count on it.

Sounds like a pretty good time to borrow to me.

 

[mi000ke]

Sounds like a pretty good time to borrow to me.

It's a great time to borrow. Just don't count on inflation to significantly reduce the real cost of your acquisition over time. If you are finding it a challenge to afford purchasing that new property at current rates now, you will probably find it to be about the same challenge years from now (assuming your income goes up only with inflation). I wouldn't count on inflation to save me. But if you buy within your means, I absolutely agree rates (at least in the US) are pretty good.

 

[mstevens]

How do I put a value on thinking about retiring and zipping down to Coz and staying as long as I want? That keeps me going!

I think you posted here when you were getting your place, which got me preoccupied with the thought that it was a thing that could be done, and wondering why I didn't do it. So, in a way, it's all your fault.

We went through tons of information, crunched a bunch of numbers, saw that it clearly made no financial sense whatsoever, then did it.

Definitely one of the best decisions of my life. It's my home. Neither my wife nor I ever actually had one of those, we now realize, and it's really kind of cool having one.

The part about not expecting to cover costs by renting it out is key. This fits with my philosophy that if you can do that, great, and if it appreciates, that's great as well, but if you need this to be a sound investment do not do it. If you're realistically thinking you might end up living on the island, it makes more sense. We're slowly moving our lives to Cozumel.

I have a messenger bag that's packed at all times with everything I need to head to Cozumel except my laptop and iPad. I actually have made it several trips with just that. Push came to shove, I can go with my phone, wallet, and passport. The stuff in the bag is mostly travel niceties and chargers. I've never gone on the spur of the moment. Knowing I could has gotten me through some difficult days.

 

[NelleG]

has anyone looked at property in the Dominican Republic? We’ve had several nice trips there over the years and are toying with the idea. Just a condo for us, no renters. We call it “The No Regrets Tour.”

 

[cvchief]

I think you posted here when you were getting your place, which got me preoccupied with the thought that it was a thing that could be done, and wondering why I didn't do it. So, in a way, it's all your fault.

Really? Cool!

I don't know how many time I have been listening to problems the person talking created that they somehow think I can magically fix and my head goes on auto nod, while I start mentally counting the days until I go to Coz again. Just having the place is wonderful. Heck I leave the pesos in my wallet, assuming I will need to soon.

 

[BDSC]

Interesting thread. I seriously looked at possibly buying property on Bonaire. Like others have said, I crunched the numbers and I couldn't make it work vs long term renting. My problem would be if I buy, I'm not going to want to rent it out as I figure no one is going to take care of my property like I would and that would drive me nuts. I could only see me buying if I were going to live in it for 6+ months out of the year. Honestly, I would like to maybe go and stay somewhere 2 to 3 months max.

I also wasn't crazy about the idea of getting locked into one place to keep going to so I decided not to do it.

 

[kelemvor]

Yes, I do shut off the A/C upon my departure!

It always struck me as odd that rental places don't have internet connected controls. If it were me I'd have a nest and/or some neurio internet connected circuit breakers.

 

[mstevens]

Really? Cool!

Plus, it's fun blaming things on you. It's my new go-to.

[begin auto-nod sequence]

 

[mstevens]

It always struck me as odd that rental places don't have internet connected controls. If it were me I'd have a nest and/or some neurio internet connected circuit breakers.

Mine is as connected as I can get. That's how I know my most recent renters like to keep the A/C below 70F. Fortunately, the Nests detect when the house is empty and go to less-ridiculous settings.

For stuff like breakers, not everything works in Mexico. The Nest thermostats were unsupported in Mexico for the first 2 years we had them and took some hacking to make them usable. We had a heck of a time replacing a Mexican breaker that went kerfloop - I'd hate to try to predict whether a US one would fit. Many things that *look* the same aren't quite the same.

If we didn't rent, I'd have even more monitoring, but that would likely seem intrusive to renters.

 

[hairtriggr]

Question for those who rent: What do you do with your personal stuff while away? Do you have locked closet or room? Off-site storage unit?
Just curious as I can't see leaving clothes, dive and other sports gear, bathroom stuff, tools etc. accessible to strangers.