Mexico
By Charles TurnerFrom one extreme to the other: snow in Portland and 90 degrees plus down here in Ixtapa where we’ll be for a few more days. There is a large partial construction site right across from us. What I hear, from those that know, is that Mexico is full of partial construction projects. They open with great fanfare, take deposits and when the money runs out, so does the work. Then they have been known to reopen as new project and resume building with a different set of investors. As Mexico has become an easy-to-reach destination from so much of the US, you have to assume that some Americans must have lost their deposits though this method of fund, build, fund, repeat. One would also expect as equity positions decline in US markets, the vacation home in Mexico will become less attractive and possible for many that were looking south to thaw out.
Looks like a good thread going on the previous “Buy Here Now” post. Thanks for the participation. Sorry we’re going to miss the blogger get together tonight.
About a year ago we visited Loretto as a result of marketing by a developer in the area. We stayed in town, not in accommodations recommended by the developer, and got the scoop on what was going on.
IMHO the only way to buy in Mexico is to buy something that is about 10 years old (not a bad approach in Portland either). By that time the project and the structure has had time to shine, or not.
Charles, have you gotten Montezuma’s revenge yet?
When my wife and I went to Mexico, we found potential in places like Taxco, where tourism is strong and the buildings have history but need lots of repair. I wonder if those would be better investments as rentals than something that is newer.
From what I understood, buying into something that is not already completed is dangerous. It sounded like the funding for some projects ends up like a ponzi scheme where the first investors are paid off with the second’s money but the money eventually runs out and there is little or no recourse.