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peso vs u.s. dollar /prop value


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12 hours ago, lakeside7 said:

Buy pesos  now..you must be joking..you do not have to be a financial planner to look back and see it's dismissal  performance...most savvy Mexicans, central and South Americans are  pouring money into usa..talk with anyone in the banking system in Miami

Manybe if you want to be a day trader and have thousands to speculate...but I do not many Lakeside Gringos are in the box?

i love making over 7% interest in mexico,   beats 1 %  in most banks in USA,  yes some countries in south america are weakening the monetary policy to be competitive in the world.

the many countries are weaking thier currency to be competitive is causing inflation in the local economies.

These south Americans are panicking and moving money to USA to banks in MIami

The current administration in USA wants a weaker dollar, and they want gold to be higher. to pay off national debt.

Trump stated how would like of see USA on the gold Standard,  his ideas that with inflation and gold at 3000 on USA financial  balance sheet, would wipe at all the USA national debt.

Mexico gross national income will in the next five years will grow faster than USA.

I love living in mexico. 

When we get the next recession and those who invested in USA stocks lose over 10% they will have rethink there investments.

you do not make money buying the high. You make money selling at the high

it is Time for US expats to rethink there allocation of assets and rotate there investments to safer fixed income like 7%

I am over 50 years old, i can not afford lose 10% of my assets, i like fixed income of 7%

Most people do realize 70% of the growth in the last ten years of the stock was QE 1 and 2 USA printing money.

Recently USA printed over 1 trillion dollar to keep the budget in the green. How long can you do that 

 

US dollar is losing value, cost more to buy stocks, cost more for education, cost more to buy house, more for groceries .

move to Mexico, live on less money, higher standard of living, sell your USA house and buy a bigger better house here in mexico made of brick and tile, not wood.

You watch more people are moving to mexico, buying pesos and living of off the 7%, with no worry of a repeat of 2008.

Remember USA banks almost when out of business in 2008, mexico banks did not have a problem with leveraged debt.

 

 

 

 

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14 hours ago, RickS said:

1 place, 5 places?

Assuming an avg of $800/mo that's around $200,000. Ever regret that part?

 

2 places where we  paid rent.... one as caretakers        have never paid anywhere close to $800

and no ..... no regrets

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30 minutes ago, traderspoc said:

i love making over 7% interest in mexico,   beats 1 %  in most banks in USA,  yes some countries in south america are weakening the monetary policy to be competitive in the world.

the many countries are weaking thier currency to be competitive is causing inflation in the local economies.

These south Americans are panicking and moving money to USA to banks in MIami

The current administration in USA wants a weaker dollar, and they want gold to be higher. to pay off national debt.

Trump stated how would like of see USA on the gold Standard,  his ideas that with inflation and gold at 3000 on USA financial  balance sheet, would wipe at all the USA national debt.

Mexico gross national income will in the next five years will grow faster than USA.

I love living in mexico. 

When we get the next recession and those who invested in USA stocks lose over 10% they will have rethink there investments.

you do not make money buying the high. You make money selling at the high

it is Time for US expats to rethink there allocation of assets and rotate there investments to safer fixed income like 7%

I am over 50 years old, i can not afford lose 10% of my assets, i like fixed income of 7%

Most people do realize 70% of the growth in the last ten years of the stock was QE 1 and 2 USA printing money.

Recently USA printed over 1 trillion dollar to keep the budget in the green. How long can you do that 

 

US dollar is losing value, cost more to buy stocks, cost more for education, cost more to buy house, more for groceries .

move to Mexico, live on less money, higher standard of living, sell your USA house and buy a bigger better house here in mexico made of brick and tile, not wood.

You watch more people are moving to mexico, buying pesos and living of off the 7%, with no worry of a repeat of 2008.

Remember USA banks almost when out of business in 2008, mexico banks did not have a problem with leveraged debt.

 

 

 

 

In '94 the Mexican middle class was wiped out almost totally. Yes it's nice to get 7% now but there is always the chance that you could  lose even more than 10%. As far as buying a house "bigger" and better we opted for a house befitting of 2 people with one guest room. A lot of people that moved here did the bigger and are house rich and cash poor. No thanks!

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19 hours ago, Natasha said:

Mexican landlords often quote rental price in USD (more familiar to foreigners) but get PAID in pesos.  That has always been the way for us.  This can be structured right into your lease (which to be legal must also be in Spanish).  Leases can also specify        rent increases, if any, (we've never had one) over the period of the lease as well as exchange rate to be used (eg spot rate).  Incidentally, we were never renters NOB.

In the early years we met many who found they needed to return NOB .... family reasons, health reasons, or simply not happy here.  But at that time some waited more than four YEARS to sell the houses they needed the money from in order to return. Renting while you discover those kinds of things  PLUS how to live in Mexico is a far cheaper and more easily altered way, even if in the end you decide to buy.

 

If your "quote" is in US$ and each month you are paying the current conversion rate in Pesos, you are getting SCREWED!!! Maybe I am not understanding. As you see in my post I was originally "quoted" in US$ almost 12 years ago but had to transfer the rent in pesos (at the conversion rate of that day) from my Mexican bank to theirs. It took me a year to figure out the scam and then insisted my next rental agreement be in pesos. So again, do the math from 10 to the dollar to 19 now. I think i made the right choice.  

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21 hours ago, gringohombre said:

Yes, and demand that the rent be in pesos not US$. When I moved here full time in 2008 I came for 2 weeks a few months prior to the move to scout and find a house to rent in my budget and for my needs. On the last day I found a beautiful lakefront house in SAT with large property and casita, which was ideal for a warehouse/ packing facility for my business. The rent was $800 a month. Perfect!. The first year went well and when the rent was up for renewal, I had had time to think. Why am I paying in US$ for a rental in Mexico? I informed the Landlord that I was insisting on paying in pesos or I would move (a rope-a-dope technique) and after they got the message that I was serious they sent me the contract in pesos with an increase but not bad. I accepted  with the understanding the future increases would not be more than the official inflation rate with a cap of 5%. The conversion rate then pesos to US$ was 10:1. So if you do the math you will see that after 10 years I am paying almost exactly what I started with. If only all expats moving here to rent would demand rent in the currency of the country maybe landlords would see the light and stop this insane practice. 

Unless you are able to sign a super long term lease ( extremely rare), the landlord can simply say he wants his house back for whatever reason at the end of the lease and then be able to rent it out for much more than the %5 allowed by law. We are facing this exact situation with our Mexican landlord who now wants "gringo" market rent.

Consider yourself lucky to find a nice house ( not condo or apartment )for less than $800  per month.

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23 minutes ago, ea93105 said:

Unless you are able to sign a super long term lease ( extremely rare), the landlord can simply say he wants his house back for whatever reason at the end of the lease and then be able to rent it out for much more than the %5 allowed by law. We are facing this exact situation with our Mexican landlord who now wants "gringo" market rent.

Consider yourself lucky to find a nice house ( not condo or apartment )for less than $800  per month.

By "gringo" market rent, do you mean in US$? I was not aware that Mexican law caps rental increases at 5%. Renters always face the risk of not having their lease renewed for whatever reason. The upside also of renting is that you also can choose not to renew for whatever reason, be it that there is an Evento being built next door, there are noisy neighbors, the landlord refuses to fix a leak in the roof or whatever. There are trade offs in life. Maybe I am a dreamer but what if ALL expats simply refused to pay rent in US$. After all, what if you had a rental in say California (which i did) and you demanded your rent in Euros...this is that stupid.  

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2 hours ago, Yo1 said:

I like having my rent quoted in dollars and paid in pesos.  The landlord gets more pesos if the peso is weak (so is his buying power) and I pay exactly the same amount in dollars each month.  It's a win/win.

 

I am not understanding your rationale. The dollar has always been stronger in the long term, in fact doubling in value over the peso in the last 12 years. So if you rented a house here 12 years ago in dollars who is losing and who is winning (big time)? As a lifelong businessman it is beyond my comprehension to understand your logic. You are renting a house in Mexico, so you are paying the rent in a foreign currency? Why not pay in Euros, Dinar, Rial Frank or even Bitcoins? Amazing!

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On 12/22/2019 at 4:18 PM, John Shrall said:

The peso hit bottom at 10 in July 2008 and spiked to 15 by February 2009. It dropped shortly after that peak and never reached 15 again until February 2015. After that it went up pretty rapidly to 21.60 in January 2017.

2019-12-22_161648.thumb.jpg.89e4c7e4dc3a21ee4e661d95b4900de2.jpg

 

What I am missing..when did the peso go from 10.5 to 20.... IN ONE YEAR...... which was suggested by Daisy post , buying a new car

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I rented a house in SAT for 9 years and paid in pesos.  My rent in dollars stayed the same, but with the peso strong at 10:1, the peso amount was smaller.  When the peso weakened to 20:1 I paid more pesos but the amount in dollars stayed the same.  My landlord got more pesos because the peso had lost buying power when it weakened.  I'm NOT paying in a foreign currency--I'm paying in pesos. 

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4 hours ago, Yo1 said:

I rented a house in SAT for 9 years and paid in pesos.  My rent in dollars stayed the same, but with the peso strong at 10:1, the peso amount was smaller.  When the peso weakened to 20:1 I paid more pesos but the amount in dollars stayed the same.  My landlord got more pesos because the peso had lost buying power when it weakened.  I'm NOT paying in a foreign currency--I'm paying in pesos. 

My head is spinning...can I hire you as my money manager?

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Sure.  When I was in the US I made a solid 25% on my investments every year regardless of what the economy was doing.  But one of the things I wouldn't do was invest in vehicles that made money off the misery of others when their mortgages weren't met.

 

Maybe it's hard to understand but when the peso is at 20, it's weak.  In other words, it takes more pesos to equal the same dollar amount.  When it's strong, each peso is worth more against the dollar so it "goes down".

1 minute ago, bmh said:

yo1 is your income in pesos?

 

No, my income is in dollars.

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1 hour ago, phil in mexico said:

I would think that building a home in mexico would be very beneficial instead o f buying in dollars, because you are buying the house in pesos just my 2 pesos ! 

Buying is a payment at current exchange rates. Dollars or pesos makes no difference.

Building is at future exchange rates during the construction process because the majority of construction lakeside is cost + a set percentage paid weekly or monthly.   If the peso gets stronger you will pay more..If the peso gets weaker you will pay less. It is a gamble not a certainty.

If your architect gives you a set price it is padded to protect them from cost increases. But again dollars or pesos it is computed based on the exchange rate at the time you sign the contract. 

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