Catherine Martin has a post on her blog that talks about “recession fatigue”.
A client called me yesterday planning his trip down here to buy a property. He has been looking for three years, since the start of the ecomonic downturn. Now, due to the fact that his investment properties in the US are finally selling, combined with the fact that he thinks that property prices here are as close to the bottom as they will get, are making him bring forward his trip down to Vallarta and buy.
He told me that recently in his circle there has been a lot of talk about recession fatigue and a general feeling that people have really had enough of the past few years and the austerity and the bad news, and perhaps now just want to start enjoying themselves, travelling with family and friends, and yes, maybe think about buying something they can enjoy.
This isn’t the first time I’ve heard this. One guy recently told me, “Hey, this is what I do, I buy things! I’m tired of waiting to buy something down here, waiting for circumstances to be just right. I realize now that in this world, in today’s environment, with all that is going on, that just isn’t going to happen. Its crazy out there and it doesn’t seem like its going to change much in the near future. So rather than waiting for things to get better, cause how may that be? I’m going make a move now.”
I think this leads to another “fatigue” I wrote about recently being “Mainstream Media Sensationalism” Fatigue, or MSF. People are getting tired of listening to how drug violence in Mexico is portrayed in the American News. Yes, this issue is serious, but it needs to be properly taken in context of where its happening and who it is happening to.
And another form of fatigue is waiting around for the supposed right time to make a move to buy a place in Vallarta. The economic crises and the drug war have held some people back from making a move. Catherine’s “Recession” fatigue is similar to this “Tired of Waiting” fatigue. The economy has improved (for some) and their view of the drug war is more realistic. So what they are doing is investing in purchasing a home or condo an amount which the feel comfortable with, weighing in the risk factor.
But isn’t this something we should do with any investment? If we can’t afford to lose, should we get involved? It all depends on the amount invested and the amount of risk.
Tied in with MSF, people are realizing that the security issue has more to do with their investment than with their own personal safety, as the violence has been overwhelmingly limited to the drug gangs themselves (fighting amongst themselves) police and the army. For the most part, especially here in Vallarta and Nayarit, it has not affected second home owners in the slightest.
What I’ve heard from some realtors lately is that people have made the decision to buy, investing what they feel comfortable with. An amount that if the situation did get worse, they could handle it. And if it gets better (which in my opinion it will), and the risk factor diminishes, they can always move up. But at least they get to enjoy the quality of life they have been looking for in some place like Vallarta. The Boomers aren’t getting any younger!