Expert: Ron - 1/7/2005

Question
-------------------------
Hi Ron,

Thanks for that timely response.  I reviewed the site that you suggested and found some good information.

When we lived in our pueblo in Nayarit we, like many, considered buying property.  In the end we did not do that.  We found that our friends who had built had, I think, a sense of obligation to stay at their property, their "home".  We on the other hand did a great deal of traveling and, at the end of our adventure there, simply packed our belongings and returned to Phoenix(my wife was a bit homesick for friends/family).  I also noted that there was a "disconnect" between long term rental costs of a property and the "actual" market value of the property for sale.  <I know I'm going a bit long, but there is an actual question coming up.>  For example, a house that might sell for $175K (US) could be rented on a years lease for $500./month or so, most utilities included.  Having had rental properties myself, I probably would have rented a house with that value for $1200/month stateside.  So I found rentals to be a good value, and provide the time to look around.  The question that the RE site you suggested didn't answer is about rentals in the greater Chapala area.  Are there any good rental sites that you can recommend, and do you have any observations of your own on the matter?

Also, there are a variety of pueblos in the Chapala area.  Any quick comments of their character?  I speak Spanish very well and can live in any area.

Thanks in advance,

Lee

===================================================





Followup To
Question -
Hi Ron,

Although back in Arizona at this time, my wife and I lived for 13 months in Nayarit State some 40 minutes north of Puerto Vallarta.  Although we did a lot of travel in Mexico and C.A. we never actually got to Ajijic but did spend some time in Guadalajara.  My question concerns "bits and pieces" that I picked up about the area.  Specifically that the water situation was bad, was not being addressed and that as a result it would be merely a matter of time before the area suffered on a variety of levels; environmentally and visually, a possible "rush to leave" so as to not be the last person to sell and a consequential lessening of property values.  Any truth to the above and how do you see Ajijic changing over the next 5, 10, etc. years?  What are your favorite pros and cons about Ajijic?  Thanks!
Answer -
Hi Lee, well it was just 2 years that Lake Chapala was at its lowest point in almost 50 years and there was a rush to leave. Houses were for sale on every street. 2003 brought signs of a new cycle of rainy seasons and 2004, well all I can say is WOW. The Lake is now at a 75% capacity. And a new accord has been signed with neighboring states and the federal government.

There is a series of articles about the area at

http://www.ajijicvillagehomes.com/news.htm

I'm sorry this is a real estate site, but it does have what you are asking about. Scroll down past all the house listings to CURRENT EVENTS. The first article - 2004 Bestows good fortune on Lake Chapala is from last week's Guadalajara Reporter.

Our plans are to live here long term, we love Mexico and are optimistic about this area. We have lived here 6 years now and watched the exodus and pessimism past. It may happen again but there are too many good things about the area to keep us down. My wife is involved in little theatre, sings with Cantantes del Lago and helps with local charities. If you must shop, Guad has everything you need plus an international airport just 30 minutes away. Satellite TV and highspeed internet puts family and news from home on our doorstep every day.

This year housing prices are WAY UP and I expect that to remain the norm for a couple of years until we again have a poor rainy season. The whole problem is cyclical, roughly 10 year cycles.

Some locals think we are spoiling it for the Mexicans, but unemployment is practically nil here. We have built a new high school and a university college so their kids no longer have to go into Guad for a higher education. Our Mexican neighbours tell us we are very welcome here.

What don't I like? Definitely the dry season, May and early June. It so dusty and afternoons are a dead loss because of the heat. The rainy season in the summer is a complete turn around for us, our favourite time of the year. Everything becomes green and fresh. The first 3 weeks of December are always cold, down to 50 degrees F, so we usually head for the coast.

There are TOO MANY realtors here and they are becoming very pushy, only two that I would do business with. Luckily no timeshares yet.

I also don't like the garbage, there is very little recycling done in Mexico. We are involved in cleaning up sections of the Village, and a lot of Mexicans also recognize the problem. Unfortunately there are lots of weekenders in from Guadalajara who regularly dump there trash here, grrrrr. On Mexican holidays our village gets very crowded.

There is a still big problem with lyrio (water hyacinth) in the Lake. It's growth is incredible and quite often clogs the harbour areas.

If you visit here and want to know what is all wrong with the area go to the Donut shop across from Lloyds
in Ajijic. The same old coots are there every day complaining about everything under the sun ... BUT I WON'T BE THERE!

Hope that helps, best regards,
       Ron


Answer
Hi again Lee, not too many rental websites that I am familiar with, try

http://www.ajijicrentals.com/listings.html

If you can find a copy of HEAD FOR MEXICO, THE RENEGADE GUIDE by Don Adams you'll find some good tips, also our story.

Best time to search for long term rentals is July to October, after that most of the good ones are gone. I suggest not renting on the internet until you view, there are some terrible places advertised. Come down and stay at a B&B for a few nights and then look around. Let me know if you would like a B&B recommendation.

We have friends from Texas who just signed a 5 year lease at $600/month plus utilities in San Antonio, just east of Ajijic. The owners will be moving here full time in 2010 after retiring in the USA. Nice 2 bedroom home, garden, easy walking everywhere.

Where we live the homes go from $155,000 to $750,000 and rentals begin about $1,200/month. Some neighbours are snowbirds coming down from January through March and rent the rest of the year. Others are into home exchanges with one couple off to Italy next summer for a year's exchange.

This time of the year rentals in Ajijic are hard to find, but that site does have some casitas reasonable.

Surrounding Guadalajara are dozens of unique pueblos including Tequila, but you might look at the south side of the Lake too. It is undeveloped with lots of opportunity and much lower prices. The location will add about an hour more to travel to Guad. Be wary of ejido land tht is being "legalized". Don't believe it, we have friends stung with this promise.

Out near the Chapala golf club to the east of us are some nice villages on the Lake, but the roads are so dark at night, driving back from anywhere is dangerous with all the animals on the lose.

As you probably know Mexicans love to celebrate and if you rent or buy near the plaza in any village you'll never sleep on holidays.

Best regards,
      Ron