Buying property vs renting for longer term stays

[mi000ke]

This happen in 2010. I was there in 2009 it was a nice little village with a nice hotel. I was there again in 2011 it
was all gone except the hotel and it was closed. This what someone in Mexico with money can do in Mexico.

Tenacatita Bay Bugle

From the article

And even where landowners have won in court, they still are being blocked from taking possession of their property.

Here someone else talking about this.
Tenacatita, Jalisco

And this is one (of several) reasons we bought on Grand Cayman, where the government and the legal system are pretty stable, and the government guarantees title, so no title insurance needed. The process of purchasing real estate is almost identical to that in the US, except for not needing title insurance. The wealthy folks may try to buy you out here (and it is currently being done by a lot of real estate developers) , but they won't send in their "goons" to evict you.

 

[ReefHound]

That would depend on the rate of inflation over the next 10 or 20 years. Sense nobody knows what the rate of inflation is going to be nobody knows what the smartest course of action is. To quote John Bogle “nobody knows nothing.”

If we have high inflation in the future then buying a house in Mexico with 2018 dollars and paying for it with 2028 dollars would work out rather well.

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

fishi for the WIN!!!

 

[mi000ke]

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.

fishi for the WIN!!!

Well 10 year T bills are still at just above 3% and inflation is largely based on the rise in pay rates and unusual structural issues. So I guess I still stand by what I said. Buy just what you can afford, and get in the game. If things work out, you can trade up. Our property has more than doubled in value over the 7 years we've owned it for an annual rate of return of about 14% each year. (and our off season income covers all out of pocket expenses - so a free place for the four winter months). Mikey wins!!!

 

[JFS]

And this is one (of several) reasons we bought on Grand Cayman, where the government and the legal system are pretty stable, and the government guarantees title, so no title insurance needed. The process of purchasing real estate is almost identical to that in the US, except for not needing title insurance. The wealthy folks may try to buy you out here (and it is currently being done by a lot of real estate developers) , but they won't send in their "goons" to evict you

Ive seen first hand how goons can come and take your property eventhough you have title. The judicial system on the island is corrupt to the core. The legal process takes years of BS and still nothing gets resolved.

 

[ReefHound]

Well 10 year T bills are still at just above 3% and inflation is largely based on the rise in pay rates and unusual structural issues. So I guess I still stand by what I said. Buy just what you can afford, and get in the game. If things work out, you can trade up. Our property has more than doubled in value over the 7 years we've owned it for an annual rate of return of about 14% each year. (and our off season income covers all out of pocket expenses - so a free place for the four winter months). Mikey wins!!!

Not sure what you think you're standing by as prices and incomes have been increasing far more than 3%. Your own success demonstrates that.