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Lakeside Rental Price's Future?


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2 hours ago, happyjillin said:

It really doesn't matter what he's being charged or made out on. What matters is his HELPFUL suggestion about trying to pay in pesos, the currency of this country, rather than dollars. Comprende?

Hard to understand why any landlord or renter would want to insert a currency risk into the deal. Usually leases are for a year or less. If it is a Mexican landlord it ends up in Peso's anyways. Canadians have to convert to dollars and then peso's. It's silly. Hard to believe that people haggle over ten peso's , but i have caught myself doing it more than once and it is embarrassing.Ā Ā 

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10 hours ago, gringohombre said:

This is the reason they keepĀ doing it...nobody is complaining. Look at the law of averages...when was the last time the peso won against the USĀ dollar? They (landlords) just keep smiling and pricing their properties in US dollars and demanding also that YOUĀ pay the conversion fee and hand them pesos!!! Amazing. It makes no difference if itĀ is a beautiful lakefront property such as I live in, or a hovel in the barrio of Chapala.Ā Ā 

Chapala is not a barrio. It is the main town/city with many barrios and the largestĀ  in the municipio where you live. My house that I own being face lifted, is not a hovel[see foto] and all the lakefront properties across the street from me here in the barrio of Lourdes run anywhere from 2 huge to 4+ equally large houses on equally large lots owned by extremely wealthy Mexican families. there are renters on the north shore who rent lake front properties for less than you do in pesos,primarily from Mexican landlords.

IMG_1206.jpg

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13 hours ago, ea93105 said:

You can "demand" until you're blue in the face, but if the landlord says no thanks, then what ? You move on until you find one that agrees, pretty simple. Unless there is a law prohibiting rent in dollars its not gonna happen

But there is a law requiring pesos. Not to bore you, but it is actually in the Mexican Constitution. It was put in place the prevent foreign countries from manipulating the Mexican currency. Also, anecdotely, the judge in Chapala almost always takes the side of gringos in rent disputes with Mexican landlords. There are many repeat offenders apparently.

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1 hour ago, CHILLIN said:

But there is a law requiring pesos. Not to bore you, but it is actually in the Mexican Constitution. It was put in place the prevent foreign countries from manipulating the Mexican currency. Also, anecdotely, the judge in Chapala almost always takes the side of gringos in rent disputes with Mexican landlords. There are many repeat offenders apparently.

We are not arguing the MX constitution...We know and appreciate that the official documents show and RECORD the peso value of the transaction,andĀ  we assume it reflects the dollar value of the property you agreed to. That is one of the the support services offered by your friendly Real Estate company

Ā As earlier pointed out the transaction could be in chickens, but then just a bit more work for the Notaries to agree the value of a chicken on that particular day of closure

There are other locations in Mexico who primarily attract "foriengns" and work in a similar fashion to Lakeside. Have you noticed Lakeside has a large Foreign community?

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19 minutes ago, lakeside7 said:

There are other locations in Mexico who primarily attract "foriengns" and work in a similar fashion to Lakeside. Have you noticed Lakeside has a large Foreign community?

Yes, I have noticed, but I do my best to ignore them. As P.T. Barnum said, " there is a sucker born every minute" but very few of them will be of Mexican origin conducting business in Mexico.

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3 hours ago, CHILLIN said:

But there is a law requiring pesos. Not to bore you, but it is actually in the Mexican Constitution. It was put in place the prevent foreign countries from manipulating the Mexican currency. Also, anecdotely, the judge in Chapala almost always takes the side of gringos in rent disputes with Mexican landlords. There are many repeat offenders apparently.

Interesting point about the judge(s) in Chapala; though I hope to never need it! We consulted an attorney on our first lease since we knew neither the legal system nor Spanish. He confirmed one always has the legal right to pay in pesos regardless of what the contract says. Of course, that might not be the best way to build a good relationship with the landlord.

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21 minutes ago, 4fingersfreddy said:

Don't think he'd care as long as it equalled the US value. Only have to exchange it anyway if received in $US, likely lose some on the exchange.

You don ' t fully understand. That if a Mexican landlord offer an unfurnished house, in a safe working class area in Chapala, with secure offstreet parking for $600 U.S. per month, that equates to 14, 421pesos Based on what I know about local markets, a Mexican would know that 6,000 to 8,000 is more in the normal range. So if you rent at the U.S. rate, then many Mexicans have this annoying habit of asking for what you paid for almost anything. When you find out you are paying double the rent than you should be, what is next?

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I'll agree rents in this area seem pretty rich.Ā  However, when we were studying the GDL rental market looking for housing for our girls 10,000 pesos was very common for small 2BR 1BA unfurnished apartments in decent neighborhoods.Ā  We finally decided given the years we would be paying rent it was much cheaper to own than rent.

Friend of ours from CA said expats seem to have not helped the market for rentals in Oaxaca either.Ā  Decently located places there approach GDL prices now.

Ā 

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Just now, 4fingersfreddy said:

Not following. Please, restate.

Let me slightlyĀ  move this rental subject and the alleged gouging you infer because the owner needs to rent in dollars.. and share with you some background and potential risk the property owner is taking

Please pay attention and I will give you an example where the home owner who took the risk of buyingĀ a home (for rental or to enjoy him self)Ā and found himself on the losing endĀ Ā when he had to sell it, for say for ill health.

A few years ago heĀ purchased his property for say $225,000.00 dollars. The legal transaction at that time showed the prevailingĀ  exĀ rate at 18 pesos to the dollar which = 4,050.000mil pesos

Remember all official documents have to show the peso value

Now in order to move quickly for ill health ( and or the market has softened) the best price he can get for it is $200,000.00 dollars. If the transactionĀ  closed inĀ Ā the last 30 days the exĀ rate on average has been 24 pesos to the dollar. So the Notarial does the sum 24 times $200,000.00Ā Ā equals 4,800.000 pesos. Wow I have made 750,000 pesos

So now not only have I lost $25,000 dollars "real" money, but I show I have made a paper gain that could result in me paying some capital gains to the Mexican Government

So please stop all this bad mouthing about Gringos charging rents in dollars and respect that anyone who decides to take his money from under the mattress and make an investment runs the risk of making a profit and also a loss.

In closing let me ask all your other whiners and complainersĀ Ā to help me,Ā  as my 401K has lostĀ 15/20% of itsĀ  pre pandemic price

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24 minutes ago, CHILLIN said:

Maybe that is the way it used to be, now the tax department wants their blood, and foreign scofflaws are easy to find.

They should go after ALL scofflaws because I can assure you that they come in all nationalities.

Renting in U.S. dollars should not be allowed. Period. This is Mexico. We got burned big time renting in U.S. dollars when the Canadian dollar lost value and that's why I chose to buy a little house. I really don't like getting burned. So, now it is four years later and my little house is more than HALF paid for because I didn't pay rent to anyone... and that's at the rent it WAS four years ago.

Now, I realize that I'm lucky that I could do this BUT you can control your rent by negotiating it in pesos. If a landlord doesn't want to do that... move on. A good landlord recognizes the value of a renter who has good references and will take good care of their property/investment. That's a win/win.

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I have been offline here all day because ofĀ the CFE replacing poles in ourĀ pueblo. Now I am seeing all these posts on this thread and am scratching my head. First this is about RENTALS and why Mexican landlords are putting the lease agreements in US Dollars and mostly requesting the rent be paid onĀ the monthly due date with the conversion rate in pesos, either in cash or transfer pesos to aĀ  Mexican bank account. THIS IS A SCAM!!!Ā I am not a lawyer, and I am sure that maybe this is legal, however asĀ a livelong businessman and after 2 years ofĀ falling for this, I forced the change in my lease to pesos and now 10 years later here are the results. My first lease (2008) rent was US$800 for a large beautiful unfurnished houseĀ and lakefront property when the peso was at 10:1. two years later it was 12:1Ā and I started to wonder: why is my lease in US$? To make a long story short, I renegotiated the lease to pesos to includeĀ me paying the gardener and also agreeing to an annuel 5% "Inflation" increase. Fast forward 10 years and I just did the arithmetic andĀ at today's conversion rate I am paying about US $50 below what my monthly rate was 12 years ago. So if you want toĀ go forward with with this scam for whatever reason...go for it!!! I am just pointingĀ outĀ reality.Ā 

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11 hours ago, gringohombre said:

I have been offline here all day because ofĀ the CFE replacing poles in ourĀ pueblo. Now I am seeing all these posts on this thread and am scratching my head. First this is about RENTALS and why Mexican landlords are putting the lease agreements in US Dollars and mostly requesting the rent be paid onĀ the monthly due date with the conversion rate in pesos, either in cash or transfer pesos to aĀ  Mexican bank account. THIS IS A SCAM!!!Ā I am not a lawyer, and I am sure that maybe this is legal, however asĀ a livelong businessman and after 2 years ofĀ falling for this, I forced the change in my lease to pesos and now 10 years later here are the results. My first lease (2008) rent was US$800 for a large beautiful unfurnished houseĀ and lakefront property when the peso was at 10:1. two years later it was 12:1Ā and I started to wonder: why is my lease in US$? To make a long story short, I renegotiated the lease to pesos to includeĀ me paying the gardener and also agreeing to an annuel 5% "Inflation" increase. Fast forward 10 years and I just did the arithmetic andĀ at today's conversion rate I am paying about US $50 below what my monthly rate was 12 years ago. So if you want toĀ go forward with with this scam for whatever reason...go for it!!! I am just pointingĀ outĀ reality.Ā 

So gringohombre I think you are saying you negotiated a lease that both you and your land lord areĀ happy with..that is precisely what I keep reiterating, it matters notĀ what you agree to , it can be chickens, an agreement is an agreement...... period. Why are certain folks hung up on this dollar/ pesos...Would they be whining and whingeing if the movement was in favorĀ Ā Ā of the Pesos???

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16 minutes ago, lakeside7 said:

So gringohombre I think you are saying you negotiated a lease that both you and your land lord areĀ happy with..that is precisely what I keep reiterating, it matters notĀ what you agree to , it can be chickens, an agreement is an agreement...... period. Why are certain folks hung up on this dollar/ pesos...Would they be whining and whingeing if the movement was in favorĀ Ā Ā of the Pesos???

We negotiated the details of the lease, not the fact that I forced the change to the obvious correct currency involved,Ā that happend to be in my favor because asĀ  businessman IĀ had done the research.Ā Are car leases at the Guad. airport in US dollars? Do you negotiate buying a used car here in US dollars? Are business rentalsĀ here in US dollars? I am not talking legality, just pointing out that this has snowballed into accepted practice here because newbies see it as "the way things are". Would Mexicans accept this in a home rental lease? Please. This board is for trying to help each other here, but some seem to be OK with the perpetuation of this practiceĀ and even normalizing it. I am not blaming the landlords, they are looking out for themselves, as should we, the renters.Ā 

Ā 

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A sword which goes both ways. I have heard of many renters skipping out many months rent from foreign property owners. Maybe there is the feeling that theĀ  foreign owners can do very little about it ( true), there is liitle chance the ex tenant's Mexican credit scores will be changed, and, quite frankly they will get away with it. Now this happens with Mexican renters as well, an ex neighbor rented to Mexicans who in a few short months emptied the rental, including an above ground pool. When I told our Mexican landlord, who hates this neighbor/ family member, she replied " You see, you see, that is why I do not rent to Mexicans! "

Our current landlord, who is prominent lawyer in Guadalajara, issued his standard lease agreement, which required a financial gaurantor who could show clear title ownership to a property. This is very common in Mexico. Luckily, the agent he hired convinced him that this was not done Lakeside. Of course we have never given him any trouble, and always paid the rent on time, even today as Mx. Chillin braves the quarantine to pay the rent at the bank. But it shows how life at Lakeside would be very much different if the rules in the rest of Mexico were in place.

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38 minutes ago, gringohombre said:

We negotiated the details of the lease, not the fact that I forced the change to the obvious correct currency involved,Ā that happend to be in my favor because asĀ  businessman IĀ had done the research.Ā Are car leases at the Guad. airport in US dollars? Do you negotiate buying a used car here in US dollars? Are business rentalsĀ here in US dollars? I am not talking legality, just pointing out that this has snowballed into accepted practice here because newbies see it as "the way things are". Would Mexicans accept this in a home rental lease? Please. This board is for trying to help each other here, but some seem to be OK with the perpetuation of this practiceĀ and even normalizing it. I am not blaming the landlords, they are looking out for themselves, as should we, the renters.Ā 

Ā 

It is interesting you mention Guad airport and my mind immediately thought of air line tickets

Would I be correct to say...if you go to your local travel agent and purchase a ticket...whilst it maybe in PesosĀ  it is pegged to the prevailing ex rate of dollars

So regardless if you are thinking you are renting a "seat" in Peso.... it will vary depending on the day of purchase??

So do you complain to your travel agent if the next day you go to make the purchase and fluctuation of the dollar now means you have to pay more Pesos?

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1 minute ago, lakeside7 said:

It is interesting you mention Guad airport and my mind immediately thought of air line tickets

Would I be correct to say...if you go to your local travel agent and purchase a ticket...whilst it maybe in PesosĀ  it is pegged to the prevailing ex rate of dollars

So regardless if you are thinking you are renting a "seat" in Peso.... it will vary depending on the day of purchase??

This makes no sense. You are talking about a one time transaction. First, mostĀ home rental leases are for a year and you are locked in to each new months conversion rate. Second, why is this acceptable practice anyway, since it only benefits one party and is highly unusual (at least inĀ most parts of the world). Oh, well...to each his/her own. If this OK with you, fine...just pointing out facts and my experience to those considering new or renewing leases here.

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Why on earth would a Mexican airline " peg its prices" in U.S. dollars when its expenses are in pesos. Look it is very simple. If someone is asking for a price in US. dollars, whether it is a house, a rental, or a camel, you politely say I require a price in pesos, and will be shopping around comparing prices in pesos. I told you it was simple!

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