| Real Estate - Housing |
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(Buying or Renting… And what about the cost?)
You’re in for a pleasant surprise when you see the various types of architecture. Most houses in Mexico aren’t cookie cutter designs. In Mexico the architects thrive on originality. So much so in fact that at Christmas one of the local charities arranges a House Tour of select homes in different areas and it is always extremely well attended. People just love looking at homes that are so interesting and unique.
What does Real Estate cost in the Lake Chapala area of Mexico?
When people hear that we enjoy a much lower cost of living in Lake Chapala, Mexico, they automatically think that real estate must also be cheap. I suppose if you are moving from San Diego, North Vancouver, San Francisco or London- England, indeed it may be, by comparison. Conversely, if you are moving from Winnipeg- Canada or some small rural areas in the U.S., your comparison might give you the opposite impression but I think most will agree that you will get more for your money than you will back home.
Mostly, you will find real estate listed for sale in U.S. Dollars in spite of the fact that we live in a peso economy for day to day living. Even many Mexican Nationals sell their houses in U.S. Dollars. |
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| Email note from Paul Conrad Jackson, Associate Editor - Calgary Sun |
Hi, friends!
Great website Marie. Very informative.
- By the way, residential real estate in Ajijic is still a bargain compared to Calgary.
- Real estate prices here jumped 29% in the past 12 months.
- New condo project in Calgary: One-bedroom, only 670 sq. ft for $244,000. Then up from there. Fully 90% sold in opening week!
- By comparison, real estate prices in Lake Chapala are a bargain.
Stay tuned - and all the best
Paul. | |
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| In Lake Chapala, there is a wide range of prices of real estate and like most places, you get what you pay for. You can find small, nicely appointed condo town homes starting in the low $100,000’s U.S. to more executive ones from about $270,000 U.S. Single family homes can range from $100,000 all the way up to $1,000,000 or more. Like anywhere, size of house and land, quality of construction and location are critical factors in determining price. |
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| Houses in Mexico – A Pleasant Surprise |
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What about the Quality of Construction?
Many of the better developers have started to cater to the growing foreign community in the Lake Chapala area putting in all the modern conveniences and construction specifications we are used to. Things that we take for granted in Canada or the U.S. like grounded wiring, underground electrical, pressurized and purified water systems (so you can have a dishwasher and drink water right from the tap).
And amazing interiors – you’ll see fabulous features you’d only expect to find in designer Better Homes and Gardens. Mexican architecture is so unique. Exposed red brick boveda ceilings and cupolas, hand crafted moldings and expertly laid tiles in a variety of different patterns done by skilled craftsmen who take pride in their work. Typically it takes about eight to ten months to build a home. |
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| Houses & Weather – how do they come together? |
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One of the things I can promise you is you are going to love outdoor living. In Lake Chapala you can eat most of your meals on the terrace. Our temperate climate (average 74o), sunshine almost every day of the year and virtually no humidity keep us wanting to be outside in the fresh air. Almost all the restaurants offer outdoor dining and in fact some only have ‘under the stars’ dining.
Because we spend so much time outdoors, our gardens are extremely important to us. Household plants back home are full grown trees here. Just about everyone has a gardener; why not - for $25 pesos an hour. We have had the same gardener now going on six years. He is incredible. He takes such pride in his work and is constantly bringing new plants and cuttings from other homes he cares for. In three short years, just look at the growth of the landscaping in these two pictures below – yes it is the same house. Your garden quickly grows into your own private park! There is something very therapeutic about living in the sunshine, surrounded by so much color. |
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Here in Lake Chapala, you can have the home of your dreams and live in paradise.
Recently, one of our tennis partners was telling us that he had friends visiting Lake Chapala for the first time They were also living in Mexico but in San Miguel del Allende which is at a much higher elevation than Lake Chapala. They were amazed at all the birds, the flowering trees and so much color and mostly they were thrilled at how warm it was here. They said they weren’t yet able to sit outside as it was still too cold in San Miguel, and too soon for the birds.
When we hear this, we are even more grateful for the privilege of living in this Land of Eternal Spring here on the lakeside. Indeed, we are blessed. |
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Renting a Property
Rental properties are normally available through Real Estate Companies, specialty Rental Companies or privately. Again (no matter what the Newsletter says), they are not cheap in the popular areas, not if you want something decent, properly equipped and in a convenient location.
Because there is a big seasonal demand in many areas of Mexico, prices go up and availability goes down from November to April. May to October has more availability and better prices. The best deals are made on long term rentals (1 year or more) as the owner is assured of revenue all year round, and there isn’t as much wear and tear on his property. Many people who come to Lake Chapala every year for six months or so, will take a longer term lease. This way they are assured of a good rental and although they are taking it for 12 months they are paying less rent per month; also they can leave some belongings behind and not have to cart things back and forth every year.
The seasonal nature of rentals creates a somewhat difficult situation. Owners want revenue for as many months as possible (which is understandable) and are reluctant to commit to a seasonal rental very far in advance of the season starting i.e. They don’t want to commit to a three month rental (January February and March) in July just in case someone comes along in September and wants a six month rental from October to March. On the other hand, the seasonal renter wants to confirm their rental well before the season starts to be assured of getting a good property. This also is very understandable. This is a Conundrum, for sure!
To back up a little bit, let me explain the combinations of reasons for this problem.
- Most of the properties for rent are houses that people have bought for themselves to live in part of the time, and rent out the balance of the time.
- Perhaps they aren’t moving here for a year or two.
- Maybe they are from the southern States and rent it out over the winter months.
- Maybe they are from Canada and rent it out over the summer months.
- Although there may indeed be a number of listings of rental properties at any one time (even in the high season), when you go and inspect these properties – many of them are either not in an acceptable condition or not in an acceptable location.
- In the Lake Chapala area, there isn’t a ready supply of Rental apartments as there are in a lot of places.
So, bottom line, there is a scarcity of good rental properties. Because of this, some people who come to check out the area but aren’t ready to move, will buy property as an investment and rent it out until they are ready to come.
You may get lucky and secure a rental early but odds are that most people will not commit till just before the season starts.
When we ask the local Rental/Real Estate Agencies how they deal with this, after a big Sigh – this is what they tell us they advise people:
Book a hotel or a Bed & Breakfast for a few days when you first arrive. Make contact with an Agent and have them show you what is available at that time.
We have a recommendation that we think is even better. Come first on a Focus on Mexico Program. Then you will have a chance to see for yourself and then when you are ready to come back for an extended stay you will have a much better understanding and an idea of rentals and values, plus you will have made a number of contacts.
One other thing you should know!
Most of the Real Estate Companies handle their own rentals and because there isn’t a lot of revenue to the Company from rentals, there isn’t a lot of sharing of communication between companies. So it may be necessary for you to contact more than one Agency. Just keep looking until you find something suitable.
Rental rates vary by season but you’ll find the range is between $450 and $1500 U.S. (Most rentals, like most properties for sale, are priced in U.S. Dollars).
You need to be very clear on what is included and what is ‘additional’. Quite often a property comes with a gardener. Are his services included in the rate or additional, but required? (The same for the maid.) For instance, in the summer of 2004 we took our dogs and our motor home and went traveling for four months. We decided to rent out our house while we were gone. We charged $1,000 U.S. per month rent plus the tenant paid our full time maid ($400 pesos per week) and gardener ($500 pesos per week), which brought the monthly cost to rent in U.S. dollars up to about $1350 a month. So you can see how you might get a surprise if you are not precise.
Also, be careful if you are not renting from a recognized Agent or Real Estate Company. It is quite common here that when you rent a property, you take it ‘as is’. If something breaks (Fridge, Water Heater, electrical problems etc) you are responsible for fixing it. Make sure the lease is very clear on what is included and what you are responsible for. This is one of the reasons many people prefer to deal with a Professional Agency and not rent from an individual, unless they know them.
It is also normal to pay the first and last months rent in advance, plus one extra month to cover utilities (especially the phone – many renters in the past have run up huge long distance phone bills and left the owner ‘holding the bag’). When you leave, the Agent or Owner will pay the last month utility bills and send you what is left over, usually about four to six weeks later, as the phone company here (TELMEX) may take a couple of months to capture all the previous calls.
A number of Rental properties are also For Sale. This is not normally a problem for short term rentals (2 to 3 months), because if it does sell, closing can be timed for after the rental period. It can be inconvenient if the sales market is very active, with lots of showings. For a longer term rental, in addition to perhaps being interrupted with a number of showings, the risk is the home could sell and they might ask you to leave. So, if the house is up for sale when you sign the lease, make sure there is a clause in there that the terms of your lease are passed on to the new owner and you are protected for the duration of your lease.
The Bottom Line
There is no reason at all not to rent or own property in Mexico, as long as you do it the right way. But, remember the old axiom, ‘If it looks too good to be true, it probably is.’ People have been ‘ripped off’ by unscrupulous agents/vendors of property that is Ejido (Indigenous) land.
If the property is not registered in the Title Office (verifiable by a Notario), DO NOT BUY IT!
Happy House Hunting… |
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