Rent vs buying

I see a lot of comments on FB about the dramatic increase in rental prices particularly in Ajijic. Being Canadian that was a huge decision-making reason why we decided to buy back in 2012. The Prices were low and the Canadian dollar was trading at $1.02 to the USD. I feared the Canadian dollar would drop while the US priced rentals would rise. Now at $0.76 to the USD many Canadians are priced out of the market in Ajijic. If I was an American with the current strong dollar I would seriously consider buying now while the market is taking a breather. Rental prices are only going to get higher and Chapala will be the next one to rise given a lot of people are being forced to look there for rentals now.

The increase of rental prices is partly due to the comparison to the US rental market and pricing in $US. A self-inflicted result of tampering with a local market.

Supply vs demand......there are many places in the US less expensive than here. Most advertised rentals have been in USD ever since I've been coming here (back in 2007) and probably long before that. I know people who bought in 2001 and it was all USD.

CanuckBob wrote:Most advertised rentals have been in USD ever since I've been coming here (back in 2007) and probably long before that.

Yes, however most places in the World post rentals in the local currencies. Never saw rentals in Canada in Pesos...

we got lucky 10 years ago when we rented, and have lived in the same house for all 10 years, and our rent has not gone up 1 peso in all those years 2 very large bedrooms 2 and half bathrooms, fully furnished for 600 American dollars. but my landlord is not Mexican and if we need anything done, it gets done right away

CanuckBob wrote:I see a lot of comments on FB about the dramatic increase in rental prices particularly in Ajijic. Being Canadian that was a huge decision-making reason why we decided to buy back in 2012. The Prices were low and the Canadian dollar was trading at $1.02 to the USD. I feared the Canadian dollar would drop while the US priced rentals would rise. Now at $0.76 to the USD many Canadians are priced out of the market in Ajijic. If I was an American with the current strong dollar I would seriously consider buying now while the market is taking a breather. Rental prices are only going to get higher and Chapala will be the next one to rise given a lot of people are being forced to look there for rentals now.

I am very surprised by the number of new "reasonably priced" apartments being built in Chapala, check out Facebook etc ....Also the scores of AB&B that are cheap cheap cheap both in Chapala and the Riberias area

gobluejohn wrote:  but my landlord is not Mexican and if we need anything done, it gets done right away

If your landlord was Mexican, it would not get done right away?......is that what you are saying?.....and if he is any other nationality, it gets done right away?-----is that what you are saying?      

Once again, the stereotyping extranjero.

For me, the rent vs. buy issue was simple. After buying a very roomy house over ten years ago with an equivalent rent value of around $1000 a month, I have an asset worth a considerable amount as opposed to a stack of rent receipts amounting to over $120,000 U.S. dollars. When maintainance was needed, I didn't need to wait for a landlord to get around to it...if ever. (I do understand that the decision also depends on whether people have the cash to buy when they move here.)

There's another factor, Gringal. For those of us in the last chapter of our lives who don't have kids or families with an interest in Mexico it makes little sense to tie up a large wad of cash in a property that there is no one to leave to when the time comes.

Not to mention the spontaneity of being able to move on at a moment's notice versus having to wait an unknown amount of time for a buyer to materialize. For me, renting is a small price to pay for freedom.

Like gobluejohn, I too have had the great and good fortune to have found a good house for little rent 8 years ago with a responsive Mexican dueño who appreciates me and has never raised the rent in 8 years.

You and I have a different take on housing "freedom". I ike to get creative in having my home "my way" and make some changes a landlord wouldn't go for. My house was almost a ''teardown" and it needed lots of changes.
Having moved many times due to my husband's work before retirement, I see moving as a pure PITA.


I'm not concerned about what's left to heirs. I have greater concern for end of life needs re medical and possibly residential care. For that, cashing in a property would be useful.

Basically, it's "to each his/her own".

Yeah I plan on "cashing out" before the end. Probably move back to Canada in 10 to 15 years. There are many small towns in the BC interior that are about the same RE prices as here in Ajijic centro. We bought our place in 2012 for 200K USD (CAD was $1.02 to USD)and its probably worth about $375k USD plus the 30% exchange rate makes it close to 500k CAD now.

Don't bet too much........lol. All our family is in BC and it would be nice to spend more time with them before the long "dirt nap". Also the cost of medical here by that time will be far more than I want to pay.

Don't move before I get there, CB!
I'm hoping to get the chance to meet you.

Lol......I'm not going anywhere for a while yet.

As we aged we are faced with different priorities....... and because we are of different tempriment we make different choices ...these are not "good" or "bad"
Given the uncontrolled growth and lack of upkeep of the inferstructure,roads, internet service etc...who in their right mind, coming to Ajijic for the first time would find it a must place to live??

Agreed. All our guests visiting for the first time fall in love with the place. We also have guests that return every year.

CanuckBob wrote:Agreed. All our guests visiting for the first time fall in love with the place. We also have guests that return every year.

Maybe because of your personality, not the "quaint Ajijic"

Not likely......lol. Many of them move here. Pretty soon we'll know half this town.