Should we build or buy our home

I have been reading the posts on renting and agree we should rent first.

The real estate market prices are still quite inflated especially considering the huge inventory of homes. Still finding a perfect home is difficult, many of the houses on the market are run down or poorly laid out.

Yes, lots are over priced but I am hearing rumours of finished construction prices of around $75 per square foot. We built our last home but had friends and family support. Here it is a strange construction technique so obviously we would need an architect (english speaking our spanish is too weak for construction).

I would like to hear what you think, should we build or buy our home here?

Ken

After spending the past few months looking at houses and lots we've decided to buy a property and rehab it to our likes. While many houses are rundown and poorly laid out, some aren't. Our focus now is on the best location.

"RoofBob"]After spending the past few months looking at houses and lots we've decided to buy a property and rehab it to our likes. While many houses are rundown and poorly laid out, some aren't. Our focus now is on the best location. "
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You used the magic word, Bob: Location. Our rehab had its ups and downs, but it's under control (more or less) and best of all: we are happy with the one thing that can't be fixed: the location. So although our neighbor is an eyesore, sooner or later some person who wants a live-in stairmaster may buy it and change the "look". I hope, I hope. LOL.

Should you make a decision to purchase an existing home that is in primo condition or one to rehab - it would be wise to spend the money on a home inspection. Given the various construction methods used in the area, an experienced inspector can often save you a great deal of grief on down the road.

CheenaGringo wrote:Should you make a decision to purchase an existing home that is in primo condition or one to rehab - it would be wise to spend the money on a home inspection. Given the various construction methods used in the area, an experienced inspector can often save you a great deal of grief on down the road.

That depends. We paid a well known local contractor to do a home inspection but the major problems, as it turned out, were matters that could not have been discovered without tearing out walls and floors.

Buyer beware: Surprises lurk, and both realtors and sellers lie. There is no disclosure requirement. Once the deal is done, there is no recourse, even on matters that are legally required, such as separating the utilities.
Too many people buy while making the assumption that things are much the same as in NOB transactions. They aren't.

An inspection is an excellent first step, though.

Friend stopped by this AM to say they'd bought a house $80K below asking. Location is central Ajijic. That is pretty amazing and leaves a bundle for personalization and what little updating needs to be done since the sellers had already accomplished most of the projects.

solajijic wrote:Friend stopped by this AM to say they'd bought a house $80K below asking. Location is central Ajijic. That is pretty amazing and leaves a bundle for personalization and what little updating needs to be done since the sellers had already accomplished most of the projects.

Just morbid curiosity: What was the asking price originally? An 80K reduction is more significant if the house is in the 200-300K range than if it is in the 500K and up range.

Listed at just under 3, with a pool, 3 bd 4 bath. Nice deal all around however it doesn't bode well for such a prime property to take such hit especially its location and size.

probably still overpriced

Is that the house listed at 272K 250m2 land 325m2? Nice location .But the price is more what it should be. . 272K for that was way overpriced.

Yes, its a nice house without much to do except personalize it. Not many of those available for less than $200K especially that well located. Always make your offer you never know.

Not many listings under 200 000 in that type of location that is for sure.
I see a lot of overpriced houses sitting for a very long time on the market as well. The house was in probate so it can explain the price drop.

Ken Zakreski wrote:I have been reading the posts on renting and agree we should rent first.

The real estate market prices are still quite inflated especially considering the huge inventory of homes. Still finding a perfect home is difficult, many of the houses on the market are run down or poorly laid out.

Yes, lots are over priced but I am hearing rumours of finished construction prices of around $75 per square foot. We built our last home but had friends and family support. Here it is a strange construction technique so obviously we would need an architect (english speaking our spanish is too weak for construction).

I would like to hear what you think, should we build or buy our home here?

Ken

Ken, maybe a better question would be....what are the pitfalls of building a new home, Starting with, how do I find a reputable contractor? Only you can decide, and input regarding building or buying prebuilt can really only be valid if responder has done both!

We met the same question when we moved to Gabriola. The choices were few and the prices were high. Locally it seems it is cheaper to build then to buy. not sure yet. That's why I thought I would ask...

We built in 1990 on Gabriola for $50 per sq ft. That's with the family pouring concrete, Donna shingling the house and me working like a dog all night then going to work in the morning. ah, to be young and foollish. done wit dat.

The question becomes are there reputable builders around and the answer is , yes.

The challenge is understanding cast in place and brick construction with plaster finish versus the stick framing we do in BC.

Gotta say I'm real nervous about building a house with all passive solar heating, cooling...

We've done both. Bought a house in San Miguel then made renovations to it and built a house in San Pancho. We are now renting in Ajijic. I loved/love all three options...it depends on your age and what/who you know. I wouldn't attempt to build without knowing Spanish and being on site every single day. Finding the right architect and builder is icing on the cake but that doesn't just happen. There's other costs besides building the actual structure...paying IMSS for the workers and its importance when getting the final finiquito so that you can register the house to the property; water hookup and storage; your transformer or CFE's transformer and connection costs; building permit and how it's calculated; clay brick or concrete block....yada, yada, yada.
After you've built or bought, how long you have to live full time in it to avoid capital gains and with what kind of immigration status. Unless you get official facturas for renovations they cannot be used to calculate a possible captial gains cost...and official facturas will jack up your renovation costs.
These are a few of the questions that you should find and understand the answers to.
Rent for a minimum of one year...and do lots of research while renting.
Heads up...it ain't the same as NOB.
added...Ken, it doesn't matter WHO does the work or whether they get paid or not (as in family help), you will be charged IMSS assuming how many paid Mexican workers it would have taken to build it.

I've been here 9-years and have bought/remodeled twice. I did most of the work myself with local workers. I have been a handyman for 40+ years. I built a 22 bed B&B in the Caribbean literally from the swamp up. I tell you this to let you know I know of what I speak.

Some things I learned, all IMO and YMMV

With a contractor, it will take twice the time "quoted" and maybe twice the costs.

If you don't know how to do the work and don't watch, you may/will get a substandard job.

I always see waaaay to much sand in the cement mixed; this is why you always see telephone polls here falling apart right down to the rebar.

I have seen lamp-wire used in place of romex or the proper gauge wires.

Build or remodel, get a supervisor to oversee the job; doesn't have to be full-time, but someone who has NO financial interest in the costs. Check with Brad Greaves.

Make sure you get a wiring diagram on what's put in.

Crappy work will cost more down the line than done NOB right the first time.

I have been there and done what I/m talking about 2X. Once in vista del Lago and once in Chapala Haciendas. I have saved tens of thousands of pesos because I knew what to do. I don't physically do much of the work (but I do help sometimes) but know it all. I use workers who I know and pay them $60 (pesos) per hour; feed them and let them know they are appreciated.

If you want more opinion, PM me.

Good luck.

All true. But it can be done. Our builder finished the house on time, on budget and on a handshake.
You'll want not only a diagram of the electrical but also of the plumbing and gas lines. And, you'll want to take detailed pictures of all those installations as they happen. They will be an invaluable reference after the fact and for future owners.
Lots of details, lots of learning curves and lots of fun.

It makes my heart flutter now that we have been informed that there is actually someone in the Lake Chapala area who by his own admission "knows it all"! That being the case, is it: "waaaay to much sand in the cement mixed" as stated or is it waaaay two much sand or is it waaaay too much sand? As for "telephone polls", I thought Mexico had fully transparent voting and telephones didn't play into the equation?

Waaaay too picky Neil. Your back still bothering you?

Ya Niel.

i'm of the mindset that it is better to renovate than to build new. even here.
shit can happen even NOB- we had the contractor from hell on our last project and lost about $20,000 but i took over before more losses and the house has a 6 page colour spread in harrowsmith[oct. 2001].
we had an excellent first contractor here but now his prices have gone up-jaja!

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And that has what to do with buying new or renovating??

Helps in the decision making???

I agree with Ferret and some of Talosians. You really need to have balls of steel to build here. Better yet, a really good knowledge of the area and how it works, which means living here for at least a few years before trying it. And you need to get to know the people who do this kind of work; you can't just get someone else's say-so. You need to have the experience of having done a few projects and understanding, again, how things work here.

And in particular, one thing Ferret and Talosian both pointed out: be ONSITE every darn day.