Yucalandia just published an article regarding the changes in Mexican tax laws affecting foreigners for 2014, which we thought might be useful: Here’s a summary of the changes in Mexican tax laws affecting foreigners for 2014. This report comes from Lic. Spencer McMullen, a fine attorney in Jalisco, who specializes in legal issues affecting expats. …
Scooters in Puerto Vallarta The municipality of Zapopan, a suburb of Guadalajara, has recently approved the introduction of electric scooter rentals, a pilot project that will start on December 2, 2019, when 250 scooters will appear for rent on the streets of Zapopan. You know something like this will soon be available in Puerto Vallarta, …
Souvenirs from Puerto Vallarta There’s no reason to be stumped when shopping for souvenirs in Puerto Vallarta; there’s something for everyone. Check out your hometown Starbucks and you’ll find some of the best coffee in the world comes from Mexico. You can pack home a gift for your favorite coffee drinker; whole or ground beans. …
2017 Real Estate Market Report In general we had a spectacular year in 2017. We are seeing Canadian and Mexican national Buyers are back and investing in real property again, even with the current exchange rates to the US Dollar. The year ended with an exchange rate at 19.7 pesos to the US Dollar but …
Pancho Villa It’s fun to dress up as Pancho Villa and Emiliano Zapata for Halloween, Mexican Revolution celebrations in Mexico, and Cinco de Mayo in the US (they don’t actually celebrate this day in Mexico). If those donning costumes knew more about Pancho Villa, who was frequently referred to as the Centaur of the North, …
Whether on the beach, street or in the tianguis (flea market), expectations are to bargain, on both sides of any regateo (negotiation). Though some visitors to Puerto Vallarta find bargaining a bother and even embarrassing, it can also be fun and educational. Try a little bit of your Spanish knowledge of numbers. Know the difference …
The first 3 Quarters of the year have flown by and we have the results from the first 9 months of the Puerto Vallarta and Riviera Nayarit real estate market in 2017. It has been a stellar year so far filled with incredible weather, activities, theatre, concerts, parades and celebrations, and of course a very …
First Three Quarters of 2017 Puerto Vallarta Market Report Read More »
Time for a Good Nap High season is winding down and even though there are still many activities, the town has quieted and we feel more relaxed and looking forward to summer nights with friends, cool breezes coming off the ocean, and early mornings, the best time for a good walk around the neighborhood. In …
Wash Your Hands We can’t be reminded enough of this simple deterrent to the flu and other illnesses, which assault Puerto Vallarta at the same rate as the remainder of the world outside paradise. The initial recommendation is to get an annual flu shot. The more people get vaccinated, the more are protected and create …
When we first arrived in Puerto Vallarta, our destination for groceries (and many other things) was Gutiérrez Rizo. If Rizo didn’t have it, you didn’t need it! Rizo, located in the heart of Old Town, had two levels with a broad staircase in the center of the store that allowed one to climb partway and …
Pedicures: Our feet take a beating in Puerto Vallarta. We have an amazing collection of open toe sandals, from flip flops to fancy huaraches. Sneakers and hiking boots fill the remainder of our assortment of shoes. With toes showing most of the time, we like them to look pleasant, rather than gnarly and dirty. More …
A new expression is making the rounds, including in Puerto Vallarta, describing people who choose to live in countries other than those where they were raised, educated and perhaps formerly employed. Inpat. Expat doesn’t always have a positive connotation and some object to being labeled as such. Many who have relocated to Puerto Vallarta would …
Inpats or Expats in Puerto Vallarta, Which Are You? Read More »
Nuevo Vallarta Oftentimes we have disappointed tourists who thought they were coming to Puerto Vallarta but found themselves in Nuevo Vallarta instead. This happens because most travel agents haven’t been here themselves to know the difference. Vallarta equals Vallarta on paper and they seem pretty darn close on a map. Nuevo Vallarta, using the name, …
Long before Norwegian Cruise Line, Princess and Carnival Cruises started mooring their ships in Puerto Vallarta, the bay welcomed huge freight vessels. Ships were also the primary form of transportation for people arriving in the port, as well. Entire households were transported by mid-century settlers. The first passenger and freight ships, with names like El …
Nombre del inmueble: PENINSULA C20 (Torre 3) Lujosa residencia de 3 recamaras, situada en el piso 20 de la Torre 3 en el desarrollo Península Vallarta, cuenta con magníficas vistas sin obstáculos del mar y de la bahía. Este condominio diseñado en concepto abierto incluye hermosas barras de granito, modernos gabinetes en la cocina de …
PROPIEDAD DE LA SEMANA: Puerto Vallarta Ofrece Impresionante Lujo Frente Al Mar Read More »
We all see home prices rising in most parts of the country. In fact some parts of the country have seen prices surpass the high points that were seen before the housing crisis. This rise in market prices has caused many people to worry about another housing crisis and rethinking whether they should buy any real estate right now. I personally am still buying houses and I will continue to buy houses going forward. This article is an explanation of my limited view of our national economy based on my local economy. I am by no means an expert and please feel free to chime in if I am missing something or got something drastically wrong!
I am in located in Northern Colorado and our market appears to be very similar to the national market. The median price in Greeley Colorado is about $180,000 and our prices have increased about 20% over the last two or three years. The price increases have made it harder to buy houses as cheap as I would like too, but even though I have to buy houses for more money now, I can also sell and rent them for more money as well. In fact our rental market is going crazy with rents increasing 20% as well and vacancies extremely low. I am still making just as much money on my fix and flips as I was two years ago and I am making just as much on my new rental property purchases as well.
In my market we have almost no inventory; last year we had 1,500 homes for sale and now we have 300. The law of supply and demand has pushed prices up, especially in the lower end of our market. In the past it was not uncommon to see homes for sale for under $50,000 in the low end and now it is hard to find anything below $100,000. There simply are not enough lower priced homes for the current buyer demand. That demand is continuing to push prices higher.
Related: What Needs To Be Said About Appreciation
For seven years there was no new construction in our area. Our market was fueled with REO and short sale inventory and that inventory was priced much lower than any new homes that could be built. The inventory kept coming and our prices slowly decreased as well. Then someone turned off the faucet and the REO and short sale inventory dried up. All the sudden there is very little REO inventory and people have to resort to buying fair market sales, but there has been no new building while the population has been increasing every year. People still want houses, but there are not enough houses in our area to meet demand.
Building in our area has taken off lately. Builders are filling up the vacant lots that were left in subdivisions when the housing crisis started. There is a lot of new construction in our area, but prices start at about $200,000 for a new house. The construction can’t come close to the median price or the lower end demand. I think the new homes can ease the housing shortage in some segments of the market, but we still have huge demand in the lower end and with little inventory.
I only know my market, I don’t have the time to study every state in the US and learn their market statistics. I am guessing many markets are similar to my market from what I hear from other investors and agents across the country. I can’t possibly see how our market will see another huge decrease in prices unless a huge wave of REOs hit or the national economy tanks. Unfortunately I can’t predict those scenarios, but I have high doubts that we will ever see prices drop down to 2008 levels again. As for other markets in the US I think it could go either way. I see crazy prices in areas like California again and California always seems to have extreme ups and downs ever since I was a child. Could some markets see a huge decrease again? Probably, but I don’t think the entire US will see huge decreases anytime soon.
This is the part that I am struggling with. If the average person cannot afford the average house and rental rates are skyrocketing; how can prices keep going up? To me it seems inflation may be the answer to allow people to afford higher priced homes. We have had very low inflation rates recently due to the poor economy and maybe inflation will help balance the housing market with the economy. That is unless the cost of houses rise right along with inflation. I am in no way an economic expert and this is a very simply observation on my part.
The great thing about real estate is if you already own property; inflation is not a bad thing. Your rents and values will most likely increase and your payments stay the same. The downside is it is more expensive to buy property, but if the rents are rising as well; you should still be able to make the same amount of money as you did with a lower priced property. That is why I continue to buy properties and I am not worried about rising prices. I also can’t predict the future, I can only do the best I can right now with things I …read more
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