Job Discussion Forums

M@tt · Joined: 16 Jan 2003 Posts: 473 Location: here and there

Has anyone done this?
My rent is going to be raised 500 pesos per month in 30 days. That will bring the total, including utilities (phone, cablevision, basic furniture, internet, water, gas, electricity, cleaning service, doorman, furniture, no contract), to about 5500 a month for a studio apartment in a fairly ugly (but extremely central) neighborhood. I feel like it's not really worth it and all my Mexican friends agree. They are, of course, living at home rent-free.

Basically, I don't know anyone who wants to share an apartment and I'm a little afraid to share with strangers. I feel like my only options are paying the same price to live alone in a decent area, or paying 2000-3000 to live in a crappier area. Either way, it probably wouldn't include furniture and utilities, and there would definitely be a contract involved and possibly the need for a fiador, which I don't have.

SO, what I'd like to know is whether anyone here knows about buying apartments in DF (if you have experience buying other things in other parts of the country that might be helpful too). I'd like to know:
* how easy it was to get a loan
* what kind of down-payment you had to make
* what the interest rates are like
* how long the typical mortgage is
* any other fees, or things like property tax
* any other advice on apartment hunting in DF?

* In the US, the typical down payment used to be 20%, but now you can get 10%, 3%, and even 0% down. You end up paying mortgage insurance, but it might still be less than you would pay for renting a similar place.
* In the US, mortgages are usually 30, 15, or 10 years. Often you can pay them off early with no penalty.
* In the US, the interest rate right now is between 5% and 6%, depending on the type of loan.
* In the US there's usually about $500 in closing fees, and you will also be paying property tax and possibly some kind of homeowner fee as recurring expenses.

So, those are the types of info I'm looking for. Also, I have no idea how long I will be here, but I'm curious whether you think this is a feasible idea for someone who might only spend a year or two here. I figure if I could make a REALLY low down payment, the mortgage might be about the same as paying rent anyway, and I would own the place so it would be a better situation, even for just a year or two.

Thanks for advance about any advice on buying in general or sweet sweet deals you have seen around town. Wink

ALTERNATIVELY, if anyone knows of a setup similar to the one I have (like a posada, or furnished apartments with high speed internet), in a DECENT part of town for 4500 or less, please let me know. I would like to stay in or near La Roma, Cuauhtemoc, San Rafael, Tabacalera, Centro, etc.

MELEE

kitkat1 · Joined: 17 Jan 2006 Posts: 37

Here are two furnished rentals in the areas you are looking for that might work out for you while you are figuring out the rest:

http://www.casatarami.com - $550 US per month
they look very small but nice with a patio and includes wireless broadband

www.hotel-departamentos-avilla.com
Studios - 5,263 pesos per month
One bedroom - 7,467 pesos per month
Internet is 200 pesos per month additional

I have never seen either place, but would be curious to hear what you think if you see them so please post a follow up if you do!

M@tt · Joined: 16 Jan 2003 Posts: 473 Location: here and there

you WHAT? you don't pay ANY INTEREST?!?!?!? I knew I should have kept my job!
Just kiddding. I have a better gig going right now.

I don't know how the INFONAVIT system works or what the points are. If you care to enlighten me, and if there's a way I can check my points, that would be great. I did work at the Tec for one year, and I'm sure I have my IMSS number written down on a small scrap of paper buried in a box in a storage closet in Indiana, so that shouldn't be too much of a problem.

I just can't get over the idea of no interest. If you pay for a mortgage in the US, about 30-50% of the final cost of your house is the interest. The idea of actually getting a deduction on the real cost of your house because you pay it off early seems insane to me. But wonderful. I hope I qualify for this little goldmine.

I wouldn't be building, either. I hope that doesn't make a difference. I mean, I would almost certainly be buying an apartment in a larger building, even if the building is new. So maybe that will simplify things a little bit.

Thanks for your feedback, and as for the two suggestions from kitkat, that made me laugh. I visited the first one and didn't like it enough to live there. The windows were all on the courtyard, which I can't deal with, and the price seemed a little high, but the landlord was such a nice guy that I gave him a bunch of advertising ideas. It wasn't a bad place at all, just a bit too pricy, and the thing with the windows...

The second place is where I live. I had to check the website before I realized this because I didn't know the name. It's pretty cool, but as I said, ugly neighborhood and becoming overpriced. However, I have the best view in the building, and I live on top of Metro Hidalgo, so there are definite perks. Also, the interior is entirely new--tile, reasonable furniture (not great but not bad), paint, new fixtures in the bathrooms, everything works, etc. Their next big project should be replacing the windows, but then windows everywhere in Mexico are a COMPLETE JOKE!!!!!!!

Thanks for the help, guys. Keep it coming!

kitkat1 · Joined: 17 Jan 2006 Posts: 37

It's hilarious that the second place is where you live! So does that mean you would recommend it for a short term lease? It's one of the options I'm looking at but it's lower on the list because it doesn't look like there's a complete kitchen. Also, I had the feeling that the neighborhood was a little iffy albeit convenient - is that accurate? My only other concern really is how easy it would be to get groceries, etc. What to you think? Thanks!

ls650 · Joined: 10 May 2003 Posts: 3484 Location: British Columbia

Ben Round de Bloc · Joined: 16 Jan 2003 Posts: 1946

Does anyone know if/how INFONAVIT works in combo with a fideicomiso (bank trust) for those who live in areas where foreigners can't own property outright? Just curious.

Guy Courchesne · Joined: 10 Mar 2003 Posts: 9650 Location: Mexico City

Matt, do you have a good relationship with a bank here in DF? Mortgage rates are the lowest they've been since I've been here. I think 7.99% is the lowest being offered by Banorte right now, with a 10% downpayment. Don't forget that going through a bank you need to pay upwards of 50,000 pesos in lawyers fees and document handling.