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Thoughts on First Luxury Project in Chapala?


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14 hours ago, Bettinka said:

Computer Guy, that is not exactly what was said.  We have a ways to go to determine what may or may not be planned, what may or may not have been agreed to (by Javier? By ?) and must definitely wait to see what both Oscar España says, as well as the colonos etc.  At the moment, although Dionicio Morales has also given us some very good background, we have no transparency.  This government, as often in the past, has not told the public the truth of so many things.   Just as an aside, Chapala, Jocotepec, and Ixtlahuacan are still the three least transparent municipalities in Jalisco.

Like I said, there you go.

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4 hours ago, ComputerGuy said:

Wow, talk about baring all. I'd be a little more circumspect around here, early.

 

3 hours ago, suegarn said:

Criminals will know who to target now.  He mentions several times about how much money he has, and sometimes carries around.

 

Well, I thought I was fake?  LOL.   Seriously as I mentioned, cash transactions are the norm in other places.  I NEVER carry around cash in Mexico because you don't need to.  Everything works very well in Mexico and the banking system was really quite stable.  Property transactions are all with wire and everything is well documented.   

These message boards are to share information.  In places like Argentina almost ALL of the transactions are ALL cash.

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On 9/26/2018 at 11:21 AM, earlyretirement said:

Again, it looks tastefully done.  Only has 5 floors total so they are respectful of the locals and also would drastically improve the area.

I count 7 levels. 5 levels of apartments, one level of common area and one level of parking. Is any of it under ground?

http://www.altolagomx.com/downloads/altolago-2018.pdf

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23 minutes ago, gringal said:

 

I fail to see how this statement could mesh with a neighborhood where 2 stories are the norm, and HOW this could improve the area in any way.  I'm afraid you're coming from viewpoint which is alien to many, many people who chose  Mexico as their home.  I'm from large cities in the States and these plans only suit those.

If I am correct, the OP is only interested in investing in one apartment of an another company's project. A lot of these comments should be directed to that company.

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28 minutes ago, gringal said:

"Again, it looks tastefully done.  Only has 5 floors total so they are respectful of the locals and also would drastically improve the area. "

If you are talking about La Floresta, I fail to see how your statement could mesh with a neighborhood where 2 stories are the norm, and HOW this could improve the area in any way.  I'm afraid you're coming from viewpoint which is alien to many, many people who chose  Mexico as their home.  I'm from large cities in the States and these plans only suit those.

No, I'm talking about this project - AltoLago - http://www.altolagomx.com

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2 minutes ago, Tiny said:

If I am correct, the OP is only interested in investing in one apartment of an another company's project. A lot of these comments should be directed to that company.

 

I'm open to other projects but as far as I can see this is the only really upscale project that is approved and has reputable companies involved.   I have asked them many questions but always good to get input from locals.  

 

I count 7 levels. 5 levels of apartments, one level of common area and one level of parking. Is any of it under ground?

http://www.altolagomx.com/downloads/altolago-2018.pdf

 

The website is a bit confusing as it says "View from 6th floor" but they said the penthouse apartments are on the 5th floor.  

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earlyretirement,

Let me just say that I envy your success. In my lifetime I lost a lot of money but I still managed to scrape together sufficient funds to buy 7 new apartments which I am in the process of completing (they are sold as a shell, all reinforced concrete). The down side is that they are located in an all Mexican neighborhood so it will take some time to rent them.

Enjoy reading your post and as someone pointed out earlier, no need to reply to negative post.

Now if you could just get a luxurious apartment complex built next to my humble neighborhood ....just kidding

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31 minutes ago, earlyretirement said:

 

I'm open to other projects but as far as I can see this is the only really upscale project that is approved and has reputable companies involved.   I have asked them many questions but always good to get input from locals.  

 

 

The website is a bit confusing as it says "View from 6th floor" but they said the penthouse apartments are on the 5th floor.  

Definitely 7 stories, counting the parking level visible.

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3 hours ago, earlyretirement said:

 

The website is a bit confusing as it says "View from 6th floor" but they said the penthouse apartments are on the 5th floor.  

 

2 hours ago, gringal said:

Definitely 7 stories

If there are 7 stories and top view is from 6th floor, I would say the parking is under ground. And we know how well under ground parking works here, flooding.

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No one is getting trumped here.  Some of you seem very angry and hostile.  Why I'm not sure.  That's ok though.  No one said I'm a big time investor.  I was just stating facts that this isn't my first rodeo when I got all the warnings to never invest unless a project was finished. I was pointing that out to tell you that I've purchased many, many properties.    When you posted how screwed up there, I posted a photo to show you other places are more screwed up.  It seems like the more detailed and objectively I'm posting the angrier some of you get.   Again, why I'm not sure.  LOL.

 

9 hours ago, HoneyBee said:

earlyretirement,

Let me just say that I envy your success. In my lifetime I lost a lot of money but I still managed to scrape together sufficient funds to buy 7 new apartments which I am in the process of completing (they are sold as a shell, all reinforced concrete). The down side is that they are located in an all Mexican neighborhood so it will take some time to rent them.

Enjoy reading your post and as someone pointed out earlier, no need to reply to negative post.

Now if you could just get a luxurious apartment complex built next to my humble neighborhood ....just kidding

Thanks so much Honeybee for that genuinely kind post.  Absolutely we all have made some bonehead investments that lost money.  I bought Washington Mutual stock two weeks before they went out of business.  I lost $250,000 in two weeks.   I thought I was catching the bottom.   Everyone likes to talk about their winners but few talk about their losers.   

It's why I like real estate so much.  Real estate in nice areas don't go down to $0 and at least all the ones that I've purchased over the past 20 years have all generated positive cash flow on rentals.   Congrats and kudos to you on buying the 7 new apartments.   Even if they are in a poor neighborhood that doesn't mean it wasn't a great investment if they are producing good positive cash flow.   

I'll tell you a true story.   One of my friends is a lawyer. Pretty darn good and and successful in New Mexico.   Well he started buying up cheap apartments and fixing them up.  His tenants were mostly poorer Mexican Americans but they were honest, they paid on time and took good care of the properties.  Every year he'd buy a few and fix them up.  Then he started getting into neighborhoods that were still rough but he would bill the US government and had dependable rents.   Last time I talked to him he had something like 35 of these and his cash flow far exceeded what he was making being a successful lawyer.  

So stick with it and if you can, keep building up a portfolio of properties.  Just don't leverage or over leverage yourself.  Good luck!

 

If you want high end then buy in Guadalajara. 

 

Yes.  I already own a large apartment there and I'm also looking to buy more there as well.  I'm not thinking of buying in Chapala because I think it's some paradise.  Sure it's nice enough.   I buy where there are opportunities for capital appreciation and also mostly cash flow from rentals.   It just seems like a place with the right set up where you can make good cash flow.

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Seems like there are a lot of taxes and tax hassles on rentals here.  First you have to collect and pay that viciously regressive 16 percent tax on rentals, then you are having to file and pay income taxes on what is left.  Then there's the problem here of getting non payers out.  And when you sell the capital gains tax here is brutal.

You mentioned New Mexico, I had some rental apartments there 20 years ago.  Evicting non payers almost always required less than a month and there were no taxes on rents.  Plus the state and federal tax code up there gives very generous offsets against rental income.  It was a very profitable business though as time went on the qualify of renters declined steadily, particularly during the housing boom when the better ones got cheap loans and bought houses.  I am told it is still good there.

Right now, there is a lot of rent tax evasion going on in Mexico as some in this thread alluded to but they are gradually tightening the screws.  The latest tactic I am told is to track down rentals by finding them on internet sites like air bnb and VRBO.  The penalties when caught are severe.

You're braver than me, I wouldn't get involved in rentals here because of these factors.  Particularly given the high rate of return on investment portfolios here.

 

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Maincoon,

You are perfectly correct in regard to taxes on rental, they are brutal. I plan to rent unfurnished to avoid the 16 % IVA tax. Each apartment does come with a very nice built in kitchen and closets. I will be enlisting the help of Spencer to ensure I get the tax side correct and to have him set me up with rental agreements. (Tax rates on unfurnished apartments are fairly low).

On a different note, in one of your post you mentioned Acapulco as an example of a once thriving tourist destination. I had to smile because that also crossed my mind  several months ago because of  how quick a place can change. This area is slowly getting loaded with money, but hopefully this will not invite (more) crime.

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49 minutes ago, Mainecoons said:

Seems like there are a lot of taxes and tax hassles on rentals here.  First you have to collect and pay that viciously regressive 16 percent tax on rentals, then you are having to file and pay income taxes on what is left.  Then there's the problem here of getting non payers out.  And when you sell the capital gains tax here is brutal.

You mentioned New Mexico, I had some rental apartments there 20 years ago.  Evicting non payers almost always required less than a month and there were no taxes on rents.  Plus the state and federal tax code up there gives very generous offsets against rental income.  It was a very profitable business though as time went on the qualify of renters declined steadily, particularly during the housing boom when the better ones got cheap loans and bought houses.  I am told it is still good there.

Right now, there is a lot of rent tax evasion going on in Mexico as some in this thread alluded to but they are gradually tightening the screws.  The latest tactic I am told is to track down rentals by finding them on internet sites like air bnb and VRBO.  The penalties when caught are severe.

You're braver than me, I wouldn't get involved in rentals here because of these factors.  Particularly given the high rate of return on investment portfolios here.

 

Yes, the rental taxes are high but I just pass that on to renters.  I don't have any non-payers.  I've rented properties for almost 20 years and never had a problem with that.  I typically buy for the long-term so not as worried about capital gains tax but they are high in several places.  The good thing is if you are paying a big capital gains it means the property appreciated significantly.   And my theory with taxes is I'd rather make a lot of money and pay a lot of taxes vs. paying no taxes and making no money.  :)

 

I don't know anything about New Mexico other than what my friend is doing and built up.  He doesn't seem like he has had too many issues and seems to have found a winning formula.  He said most of his rentals now he gets referrals from existing tenants and that really has worked.

Rentals and real estate in general is not for everyone.  I definitely agree with that.   But over the long-term it's been my most successful and most stable investment.

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1 hour ago, HoneyBee said:

On a different note, in one of your post you mentioned Acapulco as an example of a once thriving tourist destination. I had to smile because that also crossed my mind  several months ago because of  how quick a place can change. This area is slowly getting loaded with money, but hopefully this will not invite (more) crime.

Federales fired the entire Acapulco police force two days ago. Then yesterday most of them were reinstated. "Gang violence and rampant police corruption". From what I hear, except for the tourist beaches, most of Acapulco has been a crime hotbed for decades. Now it is at its worst.

http://www.latimes.com/world/mexico-americas/la-fg-mexico-acapulco-20180926-story.html#

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