Back to Plan A

As you know, I am planning on moving to Mexico this year.  I was going to buy the condo that I have been renting for the last several years.  However, property prices have gone up in Mexico City, and the dollar has gone down a bit against the peso.  I would have to pay much more for the apartment than I will get from the sale of my home.  Granted, comparing Mexico City with suburban Cleveland in like comparing apples and oranges.  For someone from Manhattan or San Francisco, prices in Mexico City are a tremendous bargain, but for me the price was high.

While I was in Mexico on my last trip, I was looking at local real estate listings on a website that is somewhat similar to "Zillow" up here.  The prices for many properties in the neighborhood were exorbitant.  The owners of the apartment I rent were definitely offering me the place for a reasonable price, especially considering that they are leaving all the furnishings in place.  However, I also saw that there were a considerable number of bank foreclosures that were incredibly inexpensive.  Alejandro and I even walked around one Sunday afternoon, looking (from the outside) at some of properties that were listed.

For example, this house, just a short walk from the apartment was one of the listings.

It has four bedrooms, three bathrooms, and is twice the size of the apartment where I stay.  It is listed for 858,397 pesos, or about 49,000 U.S. dollars.  Now this place is actually bigger than what I want (after all, I am downsizing), and at my age I don't want to deal with stairs.  However, it is typical of the bargains that we saw in the neighborhood.  I was beginning to seriously think that I should buy one of these foreclosures.  Even though I would I have to ship more furnishings from Ohio and buy stuff in Mexico, I would still be coming out ahead.

Alejandro mentioned this to his friend who is a realtor, and he said, "We have to talk."  So, we got together one evening at a coffee shop and discussed the idea of buying a foreclosure.  It is much different than buying a property from the bank in the U.S.  While buying a foreclosure can be an excellent investment, it is not a good idea for someone hoping to immediately move into a place.  The residents of these properties have not yet been evicted, and the eviction process takes up to two years in court before the place is vacant.  Because the house or apartment is still occupied, it is impossible for a prospective buyer to see the inside.  (Well, there is no way that I am going to buy a place sight unseen!!!)  Furthermore, the evicted residents often take everything that they can from the property, right down to the kitchen counters and bathroom toilets!  So, I immediately scrapped Plan B and went back to my original plan of buying the condo that I have been renting.

I am making progress on Plan A, and I will discuss that in my next post.