Thursday, December 23, 2010



Several years ago we bought a modest unit in this development. Construction had just started.  When we made our initial deposit it was little more then a hole in the ground  We were wrapped up in pre 2008 thoughts: "There is a limited amount of beach front property, if we wait, we will be priced out." So we anted up. Times have changed, and like the stock market, condo prices plummeted. Unlike the market however, Mexican real estate is still in the dumps.

Last week, while we were in the business office getting a property tax statement, a sales person approached us and offered a "fantastic" deal on upgrading from our two bedrooms to a three bedroom unit. We checked the unit out and fell in love with it. Bad mistake! But before deciding to make an offer, we talked with several other owners who had upgraded. They all said the asking price was only a starting point. The developer would negotiate. Cool! We figured a price that would work for us, only about 10% below the asking price. All we had to do was make the offer, they would gladly accept, and we could take possession.

We began decorating the place in our minds, deciding which bedroom would be the den, how we would change the kitchen, where furniture would go, and so on. We had already moved into the place. Not a good mental frame of mind before starting to negotiate.

Unfortunately, when we met the sales manager, there was no flexibility in the asking price. Take it or leave it.  We planned on paying with money from our 401k.  The withdrawal would be taxed as ordinary income.  The asking price and the tax burden made the deal impossible for us, so we had to walk out empty handed. For a spoiled Baby Boomer,  not getting what I wanted so badly was frustrating.

I wish we had never started that day dream. The crash back to reality was bruising.

Oh well.


  1. let me get this straight. you HAVE a two bedroom condo in that building in the picture. you WANTED to upgrade to a three bedroom but they wanted too much so you are "stuck" with a 3 bedroom condo in that place. Except for the extra room to put whatever it was you hankered to put in that room [us?] what is the downside of this?

  2. Hi: Ed Schultz only 26 months to go. I'll be keeping an eye on your exploits. Nice blog