GuateGreed

I think I have mentioned in a previous post about the insanity of some real estate transactions here.  Let me give you an example.

I found a house with a large Antigua real estate agency who has many online listings.  I have seen only one listing with this agency in the 10 months of looking, probably because when I expressed interest in the first house, the owner upon learning a NorteAmericano was interested, said the 4 bedroom house, equipped with beds for eight, could only be rented to a family of four, no more.

I continued to inquire of the agent in question about a house they had listed that was in a nice neighborhood, and appeared from the pictures to be well-furnished, and was $1200 a month.  I was interested in seeing it, but the agent would not return my phone calls or emails.  Knowing that there is no such thing as an exclusive listing here (as is common in the US), I started asking around.  My favorite agent, Alberto at Qmec, wasn’t able to make any progress.  However, a few weeks later I found among my circle of expat friends someone who lives in the same neighborhood as the house in question, and knows the owner.  It’s a small world, after all…

My friend introduces me to the caretaker of the house, who dutifully gives my number to the owner, a Guatemalan who apparently lives in the capital.  We eventually arrange to see the house and so the Wife and I visit-sin commisionista.  No doubt the owner is chuckling that he’s not going to have to pay a commission to the agent now.

It is a gorgeous home, well constructed and well furnished.  After visiting the home I contact the owner by email and ask a few important questions for any prospective expat resident:

1.  Does Telgua service this house?

2.  What other fees will I be responsible for (maintenance, security, water, etc)

3.  Does the caretaker remain with the property and will I pay him, and if so, how much?

4.  Will you consider a discount for a long-term (2 year) lease?

The result of some back and forth by the owner revealed that he would be happy to pay all the fees associated with the house, including cable and internet, and the lease price would be $3,000 per month.

Naturally, I responded that I would rather pay the $1,200 a month for the house and pay the expenses myself.  The owner didn’t budge…$3,000 was the monthly rate if I wanted to rent the house.  Let me put this in perspective for readers; the house I am in right now is in a safe, private, gated neighborhood about 2 minutes’ drive from Antigua.  The house is 3 bedrooms plus a maid’s quarter’s and a nice-sized garden, and is fully furnished.  It’s $750 a month.

All of the houses I’m looking at are larger, or have larger gardens, or both, than what I have now, and are in similar neighborhoods in or around Antigua.  I’ve seen some $1500/month houses, but have enough of a sense of the market now that it’s not necessary to pay that much to upgrade a little.  Usually you’re paying for the address (the ‘zip code’ in US lingo), and not the house itself at that price.

So back to the house in question. Why would I pay $3,000 for a $1,200 house?  Why would I pay $3,000 for a $2,500 house?  You could even ask, “Why would I pay $3,000 for a house 10 minutes from town when I can pay half that and walk to the park?”

Of course, I won’t, and I don’t think anyone will.  The house will sit vacant, just as it has since it was constructed, with a perfectly manicured garden and an owner who can brag to his friends that his house is for rent at tres mil dolares por mes.  They’ll sip Zacapa and no one will dare ask, “So how long is it actually rented for?”