For those who own condos

How's rental income, these days?

http://homes.point2.com/MX/Sonora/Puerto-Penasco-Rocky-Point/Sandy-Beach/Las-Palomas/15198572-Real-Estate.aspx

Not very good if you can rent one for $500 USD for a month..

Wow, that's LP too. Scary :(

Give me my trailer park back!!!!!!!!!!!!!!!:cry::cry:

I wonder what the catch is with that one for $500 per month?

I think the $500 listing is bogus (all rentals have to go through the resorts management company, fees alone for a "guest of owner" would be over $500 for the month- thus the owner would be renting for free.)
I own at Las Palomas- rentals are better this year than in 2009, numbers are close to 2008 figures.

And how are the Dubai condos doing?

my one dubai condo is at 80% occupancy, last year it was around 90%. sold the other at peak. should have got rid of both, but it still generates a nice cash flow so I can't complain too much. Still have a soft spot for my penasco condo, even though it is my slowest growing investment. Too many fun times spent on the same beach that the condo now sits on before the condos', back when I would stay in the trailers.

dry heat said:

my one dubai condo is at 80% occupancy, last year it was around 90%. sold the other at peak. should have got rid of both, but it still generates a nice cash flow so I can't complain too much. Still have a soft spot for my penasco condo, even though it is my slowest growing investment. Too many fun times spent on the same beach that the condo now sits on before the condos', back when I would stay in the trailers.

Dubai condo?

dry heat said:

..........Too many fun times spent on the same beach that the condo now sits on before the condos', back when I would stay in the trailers.

After all Dry heat did love those trailers too!!! :eek3:

tyler said:

Dubai condo?

It's before your time Tyler

http://www.youtube.com/watch?v=VGpQej3o9eo

I think a big problem is the homeowners association dues. They were high in 09 and they've gone up in 10. Here's where they were.

http://www.laspalmasowners.itseasysite.com/f/Comparison__HOA_Fee_Structure_Calculator_Effective_January_1,2009(1).pdf

If those are the HOA fees, why have a 3 bdr condo when you could have a beautiful house half a block away from the beach with possibly 5 bdrs, things that makes you go hhmmmmmmmmmmm!!!!! :eek3:

Holy Moly!

dwig222 said:

I think a big problem is the homeowners association dues. They were high in 09 and they've gone up in 10. Here's where they were.

http://www.laspalmasowners.itseasysite.com/f/Comparison__HOA_Fee_Structure_Calculator_Effective_January_1,2009(1).pdf

Those are the MONTHLY HOA fees on a condo?? I had no idea! Good Lord, that's outrageous! Somebody please tell me those figures are in pesos and not dollars!! If not, how in the hell does anybody manage to afford that on top of the mortgage payment, especially if they're not getting much (if any) rental income?

I'm quitting my job and going into the HOA business!! 8-)

And don't forget you have electricity on top of that. I don't understand it either. The total monthly bills on my home, 4 Bed plus Apartment were not as high as a one bed condo over the past year. The real bonus is I don't have to deal with the HOA rapists.

Stuart said:

Those are the MONTHLY HOA fees on a condo?? I had no idea! Good Lord, that's outrageous! Somebody please tell me those figures are in pesos and not dollars!! If not, how in the hell does anybody manage to afford that on top of the mortgage payment, especially if they're not getting much (if any) rental income?

I'm quitting my job and going into the HOA business!! 8-)

YES! Those are the monthly fees on the condos in American dollars. The HOA's are having fits because so many people are behind or just not paying. The hardest hit are the ones who still have units for sale. They have to maintain the grounds, pools, etc., so they can sell them. If all the units aren't sold, they have to charge more for the condos that are occupied.

Can you imagine paying $600 a month just for HOA and then your mortgage on top of that????

AND AGAIN!!! If those are the HOA fees, why have a 3 bdr condo when you could have a beautiful house half a block away from the beach with possibly 5 bdrs, things that makes you go hhmmmmmmmmmmm!!!!!
Mirador area looks nicer and nicer by the second!!!

InkaRoads said:

AND AGAIN!!! If those are the HOA fees, why have a 3 bdr condo when you could have a beautiful house half a block away from the beach with possibly 5 bdrs, things that makes you go hhmmmmmmmmmmm!!!!!
Mirador area looks nicer and nicer by the second!!!

I prefer to be able to walk 30 feet and be on the beach and see it outside my window.

And lots of luck on "taking over" an HOA that is being run poorly....the info I have is that at least one of the HOA's is controlled by a Mexican corporation (that built the condo????)....they own enough of the property to have voting control....so you have the HOA controlling that you have to rent through the resort, and not privately, etc., and other interesting things....

tyler said:

I prefer to be able to walk 30 feet and be on the beach and see it outside my window.

Then a trailer/5th wheel parked in any of the RV Parks front beach spaces will give that view and walk less than 30 feet for a lot less, about 1 month rent for the same HOA fees, and also the opportuity to vary that look whenever you want by just hooking it up and go!! :eek3:

No Thanks..

tyler said:

No Thanks..

Obviously, the trailer style is not for you..

Too bad, it really is a lot of fun!!

dry heat said:

I think the $500 listing is bogus (all rentals have to go through the resorts management company, fees alone for a "guest of owner" would be over $500 for the month- thus the owner would be renting for free.)
I own at Las Palomas- rentals are better this year than in 2009, numbers are close to 2008 figures.

Wow, did I read this right? In Las Palomas it is over $500 a month to lend your condo to a guest?? Is this above and beyond the HOA fees? Do other condos in Rocky Point charge you to use your own condo when you are not renting?

Would anyone buy into a resort with this policy?

curiousgeorge said:

Wow, did I read this right? In Las Palomas it is over $500 a month to lend your condo to a guest?? Is this above and beyond the HOA fees? Do other condos in Rocky Point charge you to use your own condo when you are not renting?

Would anyone buy into a resort with this policy?

The owner pays the HOA fees every month if it is a rental or not. The condo management/HOA requires a MINIMUM rental fee and you have to charge that, plus there are numerous other fees charged to the renter, even if they are a friend/relative of the owner. They would never let a condo owner rent a unit for $500 a month. The MINIMUM mandatory rental fee at Las Palomas is more that $500 a week for the smallest condo! The problem is that you can find a condo for rent cheaper, but you are still looking at $100 a night at most 2bd 2bath condos. If you go on Craig's list, you will see 99% of the ads for condos are for Las Palomas because their HOA forces them to charge more than the other condo developments.

I'm sure the Las Palomas owners who bought a unit to rent out are very, very unhappy right now.

tyler said:

I prefer to be able to walk 30 feet and be on the beach and see it outside my window.

I understand, but you can't be happy that you may be paying three or four times as much each year to have that preference. And, if things get any worse down there, you may even lose your ownership. I had a friend who built a house further down in Mexico on a beachfront lot. He had about $500K invested over five years with the idea of living there when he retired. The government seized it from him.

I predict that you would have been so much better off buying in San Diego in the long run.

Bank Trust ?

dwig222 said:

The owner pays the HOA fees every month if it is a rental or not. The condo management/HOA requires a MINIMUM rental fee and you have to charge that, plus there are numerous other fees charged to the renter, even if they are a friend/relative of the owner. They would never let a condo owner rent a unit for $500 a month. The MINIMUM mandatory rental fee at Las Palomas is more that $500 a week for the smallest condo! The problem is that you can find a condo for rent cheaper, but you are still looking at $100 a night at most 2bd 2bath condos. If you go on Craig's list, you will see 99% of the ads for condos are for Las Palomas because their HOA forces them to charge more than the other condo developments.

I'm sure the Las Palomas owners who bought a unit to rent out are very, very unhappy right now.

Is it really a fact that owners who LEND to guests are charged a guest of owner fee at Las Palomas? According to the previous poster, he says it is over $500 a month. I would be upset with paying $1 to lend my condo to a guest, but $500....Wow!

How do the owners at Las Palomas stand for that?

I believe it is a matter of reading the fine print, then you will be better informed and possibly decide to go for something else, sometimes, as you just realized, owning a condo is not as grand as it is viewed as, a simple home with a nice front and back yard and enough space for your toys and maybe 1 or 2 blocks from the beach is all you need and still pay less than the HOA fees to own the whole dag thing!! IMHO :eek3:

I think I'd rather be hit in the head with a 2x4 loaded with rusty nails than own one of those over-priced condos and have to deal with exhorbitant HOA fees. I purposely picked my home in Gilbert because it was sans HOA (only 14 neighborhoods are).

Why not rent this cute home in Moorea, only $1236/mo
http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF-8&sl=fr&tl=en&u=http://www.degout.pf/detail.php%3F1224&rurl=translate.google.com&twu=1&usg=ALkJrhgJUBBiVX9FZkAOBgl7dx6hjezUrw#


That's where I'll be retiring to if I can learn enough french that they let me stay.

Submarine said:

I think I'd rather be hit in the head with a 2x4 loaded with rusty nails than own one of those over-priced condos and have to deal with exhorbitant HOA fees. I purposely picked my home in Gilbert because it was sans HOA (only 14 neighborhoods are).

Why not rent this cute home in Moorea, only $1236/mo
http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF-8&sl=fr&tl=en&u=http://www.degout.pf/detail.php%3F1224&rurl=translate.google.com&twu=1&usg=ALkJrhgJUBBiVX9FZkAOBgl7dx6hjezUrw#


That's where I'll be retiring to if I can learn enough french that they let me stay.

Hey...we ought to march on the capital demanding that you can live there without learning the language!!! You have rights!!!:stir::rofl:

dwig222 said:

I understand, but you can't be happy that you may be paying three or four times as much each year to have that preference. And, if things get any worse down there, you may even lose your ownership. I had a friend who built a house further down in Mexico on a beachfront lot. He had about $500K invested over five years with the idea of living there when he retired. The government seized it from him.

I predict that you would have been so much better off buying in San Diego in the long run.

Where and what were the circumstances?

JimMcG said:

Where and what were the circumstances?

Not really sure, but hubby knows. He's out of town today, so I'll post when I find out. It was along the Baja coast I think. He lost everything!

He just called..... La Bufadora (south of Ensenada). Apparently it was some kind of development with houses, a restaurant, hotel, etc. After many years, there was a dispute about who really owned the land. The people who built the development lost the case and everything was awarded to the other party. They took ownership of everything and kicked all the Americans out.

I remember hearing about that. I believe there was a big write up about it on the old forum. A little internet research should tell ya the story.

dwig222 said:

La Bufadora (south of Ensenada

Yup. Remember it well. If I'm not mistaken, he brought in a tractor/bulldozer and completely razed the buildings before he left, rather than just hand his many years of work and money over to the Mexicans.

Ladyjeeper said:

I remember hearing about that. I believe there was a big write up about it on the old forum. A little internet research should tell ya the story.

It was at least ten years ago. My friend and his wife lived in Santa Clara, Ca. They would drive down every couple of months and add some furniture or appliances. It was a three story house with state-of-the-art everything. They took every extra penny they had and put it in the house. The worst part was that it took so long for the problem to arise. You would think after a certain number of years you could feel safe with your land.

I'll take the RV parks any day over buying a condo down there.

dwig222 said:

It was at least ten years ago. My friend and his wife lived in Santa Clara, Ca. They would drive down every couple of months and add some furniture or appliances. It was a three story house with state-of-the-art everything. They took every extra penny they had and put it in the house. The worst part was that it took so long for the problem to arise. You would think after a certain number of years you could feel safe with your land.

I'll take the RV parks any day over buying a condo down there.

I remember the case but I thought you were referring to a current situation. This type of situation has happened up and down the Baja and Sonora coast also, but often with equitable resolution.

On the other hand many subdivisions in Penasco were knowingly purchased as a lease/ bill of sale transaction and were eventually regularized with trusts being issued. It all depends on how much you know about how things work and who you are dealing with in Mexico.

Look for instance at the various good faith opinions on the other thread. They can't all be correct. Mexican investment can be profitable and enjoyable but it is not for the uninformed or faint of heart.

At Las Palomas we have a guest impact fee that amounts to the following: $25 fee per stay and $5 per person per night, thus if you let someone go to your condo without you being there they will pay this fee. If you are there as the owner, no fee is paid. The guest impact fee pays for the following: 24hr key card service, pool towels, 24hr hotel services (ex. something goes wrong with the A/C or plumbing issue). The initial reason why this impact fee was added was becuase at one time 60% of all the guests at the resort were "guest of owners without the owners being present", thus it was obvious that many owners were undercutting the rates of fellow owners who rented via the approved onsite management company, the resort was seeing a higher than average impact on the grounds due to all of these guests at the resort that were paying the owner directly and thus violating the HOA rules (no different that any other resort). In regards to the HOA fee, my 2 bedroom is $280 per month and includes water service, cable, maintenance of grounds, etc. The HOA impact fee actually went down for 90% of the owners at Las Palomas this year due to a re-assesment of the nominal value of the condo's. In regards to voting rights, if any owners including the developer is past due on their HOA fee's they do not have any voting rights, this was the case for many in 2009- including the developer.

http://www.mexicomatters.net/mexicorealestate/13_untoldsecretaboutpuntabanda.php

Remember it well, It was called "punta banda".

http://news.google.com/newspapers?nid=2209&dat=19770325&id=a6grAAAAIBAJ&sjid=Av0FAAAAIBAJ&pg=7039,4705846

Before Arizona matured, land fraud was also common. Mexico has to mature and legally protect its investors from unscrupulous carpetbaggers.

I think it's simply a matter of lifestyle preference and who they're catering too. Personally, I stayed out at Sonoran Spa last January and was not pleased. It was HUGE and mostly empty and I felt stranded. I'd never buy a condo out there because they price is stupid. I usually go down with a large group of people and we like staying in town so we all stay at PDS because it's small comparatively, reasonably priced and has a great pool in a perfect location.

That said, there are a lot of folks out there that want their home away from home in Mexico in a place that doesn't seem like it's in Mexico. From what I can tell, there are a lot of baby boomers who own and rent to the younger generation because, frankly, we're spoild brats who want everything fancy and pretty and are willing to pay for it. We're overconsumers.

The HOA fees tie directly into that. They're high because you have a significant amount of amenities, infrastructure and staff to pay for. But, you know, those weekend renters don't want to see dead plants or crap on the beach. I run a very large HOA in AZ and I'll tell you I have people complain about the cost of the HOA but then the same people call me demanding additional services and not realizing it has a cost involved...

Hey all It's not just Mexico. People who leased land from some Indian tribe in AZ had the same thing hapen to them. One day the indians walked in and said your leases are revoked, get out. I don't know the full details but there were bulldozers and burnings by the American owners. I say it that way as the indians living on Indial land are different. Reservations are Soverign Nations un to themselfs. They have there own laws and police forces. Eg. American crosses Indian land and has a gun in the vehicle, get stopped for any reason and the police person sees the gun, you will lose it to consfication and you can go to jail for having a gun on the Res. Now that is the American way of justice.

JimMcG said:

http://news.google.com/newspapers?nid=2209&dat=19770325&id=a6grAAAAIBAJ&sjid=Av0FAAAAIBAJ&pg=7039,4705846

Before Arizona matured, land fraud was also common. Mexico has to mature and legally protect its investors from unscrupulous carpetbaggers.

I used to have an old photo taken in North Albuquerque that was used to stimulate land sales in the 60's that showed mosquito jacks pumping 'oil' in the area. Of course they were hauled in and set down for sales purposes.

Don't get started about Florida !!

/me is biding my time and staying put right here in AZ. Given recent seismic events, it's not long until a huge "earth re-adjustment event" occurs and the Land of Fruits and Nuts quivers right off into the Pacific ocean to become Atlantis. Then, all us AZ folks will have beachfront property!
:puff: