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There’s an interesting “war” going on in Hawaii, written up in Bloomberg Businessweek, that is putting the 1% against the .001%. And it is making it very difficult for resort homeowners who usually rent out their properties.

The Hualalai resort on Hawaii’s Big Island is owned by Michael Dell and operated by the Four Seasons. There is a Four Seasons hotel along with more than 300 homes and condominiums, with seven restaurants at the hotel that are frequented often by homeowners and their guests. But it just got a whole lot more expensive for homeowner guests.

Although there are a number of conflicts taking place to put owners against owners, the rental problem is an interesting one. If you rent out your home, your guests (or you, out of your rental fee), have to pay the resort $150 for each adult and $75 for each child for access to its facilities. So for a family of four, they would have to pay $450 dollars a day just for the right to be within the resort. During peak season the rate goes up to $250 a day per adult.

Concerned homeowners, those who have been renting their properties out for several months the year, are faced with losing tens or even hundreds of thousands of dollars in annual rental income, along with the fact that resale values may plummet once prospective buyers learn about the extra charge for anyone who rents.

A class action suit of 75 homeowners against the resort management has commenced. The Four Seasons says the aggrieved homeowners should read the fine print of their contract, as the management has always had the right to charge fees and restrict use of the hotel facilities.

The problem is that the hotel had been offering these services for free for many years and now is taking those services away. And homeowners who had built up a nice rental business and were used to no-charge free access, are now taking a big hit.

There is a Four Seasons in Punta Mita but no such problem exists. There are plenty of outside facilities besides the hotel’s for homeowners to use and it has been well understood from the beginning of Punta Mita that the hotel facilities, such as the spa and restaurants, are not for homeowners unless there is space – reservations are required.

What do we learn from this? Read the fine print!

When it comes to buying real estate, you can either purchase something that already exists, a re-sale or “pre-existing” property, or you can purchase a “pre-sale” property, something that does not yet exist, that is or will be in the construction phase and at closing is not yet completely finished. The differences are important when it comes to buying real estate. With a re-sale at closing you will be obtaining the title (either in your name or to be held in a trust “fideicomiso”), while with a pre-sale you are often closing before title is available, and that has some inherent risks which every buyer should be fully aware of. Local real estate lawyer David Connell has an article on this site that discusses the general types of “pre-sale” projects that exist, what you should negotiate for if you are making an offer on a pre-sale property, what happens if the developer disappears and no one is on the project to complete the project, and most importantly, what are the chances of that happening and how you can reduce that risk and protect yourself. The article is worth reviewing if you are considering purchasing a pre-sale property.

A favorite past time for many in Puerto Vallarta and Riviera Nayarit is golf and there are a number of courses in the area, although not all are available to the public. There are three courses (Marina Vallarta two courses at Vista Vallarta) in Puerto Vallarta while in Riviera Nayarit there are seven: Punta Mita (2), Vidanta (2), Paradise Village, Flamingos, and Litibú. The courses of Punta Mita, however, are private, so there are actually only eight open to the public, with limited play available at Vidanta because of demand during the high season.

If you want to golf regularly, a good option is to consider joining a club and becoming a member. Most clubs offer two types; a full member where 100% of the green fees are included, or a “sport” or “social” membership which costs less but involves still paying a portion (usually 50%) of the green fee when you play.

Interestingly, even though we are in Mexico and nearly everything is charged in the national currency of pesos, some golf courses around the bay still charge in U.S. dollars. With the recent devaluation of the Canadian and Mexican currencies, this has made golf substantially more expensive for these golfers than it was a few years ago.

PUERTO VALLARTA

Marina Vallarta Golf Club

(322) 221-0073 ext. 133

The golf course at Marina Vallarta is a challenging one, perhaps the most challenging of all the courses in the area. Fairways are narrow and there are plenty of water hazards throughout the course, including crocodiles! The have a new membership category called “Social” and it involves an annual fee of US$835.00 including taxes, which allows you 50% off posted rates and 25% off the posted rates at their sister courses at Vista Vallarta. Other benefits include:

• Access to dining and lounge areas
• 25% off food and beverages
• Unlimited use of the driving range
• Free bag storage
• Free day-locked (when available)

Green fee rates for 2016 are US$139.00 until 1PM and US$111.00 thereafter, (twilight) plus IVA tax. 

If you want to go for the full 10-year membership it will cost you just over US$4,000 upfront with annual dues (including the cart), of nearly US$5,800.00, with taxes included. You’ve got to pay a lot of golf to get your money back on these amounts, a little difficult if you are only here six months of the year.

Vista Vallarta Golf

(322) 290-0030

There are two golf courses at Vista Vallarta by Jack Nicklaus and Tom Weiskopf, but they do not offer a special membership package for those who may be here just a few months out of the year, only full-year memberships.

• Golf Rates – Prime Time: (7 a.m.-1p.m.) $209
• Twilight (1 p.m.): $155
• Super Twilight (3 p.m.): $111
• Replay (same day, same course): $113

NAYARIT

Paradise Village Golf & Country Club

(322) 226-8191

Over in Nuevo Vallarta is the El Tigre golf course inside the gates of Paradise Village. The also, offer a reduced package for locals called the “Sport” membership. It costs $1,740.00 per year also gives you 50% off posted green fee rates. Other benefits include:

• Access to the El Tigre Sports and Racquet Club
• Access to the Golf Clubhouse and restaurant facilities
• Access to the Beach Club
• Access to the Jacuzzi, saunas, etc., at the Hacienda Spa with 10% off spa treatments
• 10% off food and beverages

Flamingos Golf

(329) 296-5006

Flamingos offers reasonable priced golf and they do so in pesos. They offer a number of very flexible program: you can pay buy the day, buy a package rounds or purchase a six-month membership. The local daily rate is actually a very good one, at $1,290.00 pesos. Other rates are:

• Daylight rate: $2,538.00
• Twilight rate: $1,290.00
• Local rate: $1,290.00 (must show IFE or Immigration card)
• 5 Round Package: $5,655.00 (1 month)
• 10 Round Package: $10,295 (2 months)
• 20 Rounds Package: $18,850.00 (3 months)
• Gold Player Unlimited Membership: $40,600.00 (6 months)

Vidanta Golf Club

(322) 176-1458

There are two great courses at Vidanta in Nuevo Vallarta, a Greg Norman and a Jack Nicklaus. As well, there is a 10-hole, par three walking course that is planned for the near future. During high season, however, tee times are often reserved for guests and owners only of Vidanta so it can be difficult to get tee times. Your odds are better during the off season, if you are in town. It should be noted that Vidanta has an excellent golf academy with twin and putting analysis, lessons, club fitting and actual on-the-course lessons available. Contact Vidanta directly for more information.

• Jack Nicklaus Rates: $150 plus Caddy Fee ($57 plus tip per group)
• Greg Norman Rates: $175 plus Caddy Fee ($57 plus tip per group)

Vidanta Summer Local Membership Plan

Vidanta has a summer membership plan for locals that costs $5,000 Pesos Per Month (Plus IVA) or $15,000 Pesos from April 1st to November 1st (Plus IVA) Caddy Fee Not Included in these fees. Because the resort is so busy during high season, these are the only dates they can offer access to locals.

• One Month or Season Long (Until 11/1/16)
• Add Spouse for 50% Off the Same Program Cost
• Unlimited Jr. Plan (15 Under/Walking Only) $1500 Month/$5,000 Season
• Proof of Local Residence Needed (Driver’s License, Electricity Bill, etc)
• Unlimited Daily Golf
• Choose From 36 Holes- The Nicklaus or The Norman Course
• Unlimited Range Access
• Unlimited Golf Car Fees
• 10% off Bar Car Purchases
• Free Initial Hour Swing Analysis from the Vidanta Golf Academy
• Vidanta Golf Members will Receive 25% off Any Lesson Package
• Access to the Vidanta Golf Academy Video Library
• Long Game, Short Game, Wedge Play, and Trouble Shot Notebooks
• Follow-up Swing Analysis via the V1 App with Tom Stickney, Director of the Vidanta Golf Academies & Golf Magazine Top 100 Instructor
• Vidanta Summer Golf Members Receive Advanced Bookings Privileges
• Preferred Tee-Times Blocked for Vidanta Summer Golf Members Only
• Taylor Made, Titlelist, or Callaway Rental Clubs Offered at 50% Off

Litibú Golf Club

(329) 298-4091

This is a government-owned course that is inside the gates of the tourism development in Litibu. They don’t offer memberships but do have packages of green fees. Purchasing between 10-19 green fees offers a 30% discount. Between 20-49 a 35% discount and 50 or more a 40% discount. Regular fees are $1,600 pesos prime time and $1,200 pesos for Twilight (after 2PM). The discounted rates include a golf cart.

PRIVATE COURSES

Punta Mita

Punta Mita has two great golf courses by Jack Nicklaus, but playing there is reserved for property owners or hotel guests.

Conclusion

The best day rate is at Flamingos, followed by Litibú, which unfortunately are quite a ways away for people in Vallarta, and especially South Shore golfers. For them, their best bet may be Marina Vallarta, which also offers discounts to play at the Vista Vallarta courses. An advantage regarding the green fee packages is you can share them with your spouse, family and friend, purchasing more and getting further discounts. Whereas at Marina Vallarta the membership is per person only.

For more information about golf in Vallarta and Riviera Nayarit, visit this page.

“America is aging. As the Baby Boom begins to enter retirement years, new challenges are arising with significant implications for both borrowers and lenders. In particular, given the impact of aging on memory and other cognitive skills, there is a need to consider the implication for financial decisions made by older individuals. By the time individuals are arriving into traditional retirement ages, when many important financial decisions are made, cognitive skills are already in decline as part of normal cognitive aging.”

So begins a recent study by the Mortgage Bankers Association entitled Cognition and the Housing Behavior of Older Americans, which was drawn from interviews with approximately 25,000 Americans in 2012 and is a sample representative of 43 million individuals 65 and older.

We are living longer, and the retirement period of retirement today has been extended, once a period traditionally seen for slowing down, taking on fewer responsibilities, no longer challenged by work, only by, so it is suggested, by play. But not continuing to be challenged can lead to a loss of cognition skills. Memory and cognition seem to hold on relatively stable into our 70s, but then decline fairly rapidly thereafter. Likewise, the incidence of memory disease rises steadily with age. By age 90, the study reports, about 20 percent of us will suffer from memory disease, which will lead to difficulty in managing money. And as increased longevity pushes financial decisions to later ages, any way that cognition can be improved and/or its natural decline forestalled, are welcome.

“If, as the adage goes, 85 is the new 65, then 85-year olds will be faced with many financial decisions that 65-year olds once made, but now with lower cognitive acuity. Finally, with population aging, each year there are just more older individuals. So, greater cognitive burdens are be placed on greater portions of adult America.”

The study reports that “cognitive skills are seen as critical determinants of financial outcomes and economic well-being over the life course. Cognitive psychologists often divide skills into those involving fluid intelligence and those involving crystallized intelligence. The former are thinking skills: executive function, abstract reasoning, and memory. These peak in the teenage years and then slowly depreciate with age. As individuals age through their early and mid-adult lives, the decline in fluid intelligence is offset by rising crystallized intelligence, which can be characterized as knowing skills, accumulated from formal and information education, training, and life experiences. These rise with age until individuals hit their 50’s and then decline. So, by the time individuals are arriving into traditional retirement ages, when many important financial decisions are made, cognitive skills are already in decline as part of normal cognitive aging.”

Many who own property in Vallarta also have a home in their place of principal residence as well. This means twice of everything to take care of, and that can be demanding, especially financially. We want to ensure we are making the best decisions regarding our homes, which for many are the largest assets they own.

What can one do? One method we should all implement that the study recommends is the “use it or lose it” approach, in which more stimulating environments help to preserve, and perhaps enhance, cognitive acuity. By keeping active, both mentally and physically, any number of ways. Perhaps continuing to work part-time, writing that book you’ve always wanted to do, or becoming an expert in some field. Which, in this age of the Internet, is not difficult to do.

But that isn’t enough, as the study notes. As we get near 80 we all should have someone we have confidence in, younger than us, that we can discuss our financial matters with. In the best circumstance, a son or daughter, or a past, close business associate. Many may have been working with a financial advisor over the years, problem is they are aging right along with us so change may need to be made. But we shouldn’t go into our later years concerned about our finances, making a bad decision, because of what we inevitably cannot avoid.