Hi everyone! My husband and I are looking at retiring in Mexico (we are US citizens). We’ve been to Mexico 8 or 9 times now and like the climate and people. One of the things that I have noticed in looking at potential property is that the really old homes and the really new homes don’t have bars on the windows, but alot of the others not only have bars on the windows but also have locked gates. Why? Architechtural? Theft-deterent? Weather? Droves of window-smashing teens? I was thinking it might be a theft-deterent but looking at the interior pictures, it doesn’t appear that there is anything there that would be worth stealing. Also, the other thing I noticed is that some of the swimming pools, even at condo complexes, are not filled. Why? Water shortage?
The bars on the windows are a theft deterrent. The thieves won’t know there’s not anything worth stealing until they’re in.
Once one person puts bars up, it starts a domino effect where no one wants to appear more vulnerable to break-in than the neighbor, until everyone has protections.
The pools are likely in disrepair because they’re non-managed condominiums and the association simply let the common areas fall into disrepair, especially if the condominium is made up of absentee and/or nonresident owners (i.e., the residents are mostly tenants).
thank you! I didn’t know there were “non-managed” condos. I thought all condos had an association.
A “fact” I’m vaguely aware of, and am unsure3 of the accuyracy of (hence “fact” in quotes) –
There are substantial parts of Mexico where non-Mexican-nationals cannot own land outright, but must contract with a local business to hold it for them in trust. Originally implemented to keep Europeans from being absentee landlords, remains in place to avoid an influxof “foreigners” (to them) taking over the valuable land.
Check what the laws actually are where you are considering buying.
Most if not all Mexican states have updated condominium laws that require an oversight committee made up of owners, but not all condominiums have “management” beyond that.
For example, our house in Querétaro is part of a condominium that has a pool and a significant investment in common areas, so we have a full-time manager and staff who take care of management, maintenance, budgeting and planning. Our condo fees are relatively high accordingly. In contrast, our place in Mexico City is houses-only without other common facilities, so it was agreed that one of the owner-occupants would be in charge of collecting the relatively low assessment to pay for security guard, road lighting and trash removal.
If you decide to buy a place it’s highly advisable to find out how the property is managed and whether the degree of maintenance suits your needs and expectations.
It’s not uncommon for developers to completely bow out after selling all the units. It’s then up to the owners to set and collect dues and provide maintenance and repair among themselves. When most of the owners have bought their condominiums as rental property, after a while it’s easy for them to decide not to continue funding pool upkeep.
Also in small condominiums, if even one owner falls into arrears it will have a significant effect on the general fund, and the other, non-breaching owners just can’t or choose not to cover the shortfall.
Actually in most of Mexico foreigners can own real property outright… it’s essentially border zones and coastal areas that are restricted. I think the official basis for the restriction is to prevent foreign interests from holding strategic land (borders, coasts) in the case of conflict.
Another explanation is the condos in disrepair that you see may simply be an investment of a Mexican drug cartel. From this report (warning: PDF) on page 13 (3rd paragraph down):
http://wilsoncenter.org/topics/pubs/Money%20Laundering%20and%20Bulk%20Cash%20Smuggling.%20Farah.pdf
It indicates the Mexican system of purchasing land is very antiquated, not particularly computerized, and thus is very favorable for large cash purchases. Land purchases are an excellent way for drug cartels to park their money while showing prestige and power to their rivals. If they purchase farm land, they can also grow their drugs there (as opposed to importing them) and if they buy along the border with the U.S., they can use it as a starting point for drug tunnels. Meanwhile, if your sole purpose for buying the property was as a temporary way to park your money, or to set up a condo meth lab, then perhaps maintenance of the common areas and keeping the pool filled isn’t a high priority for you 
Based on the link, it’s unlikely that condos in disrepair are organized crime investments, as the drug barons are interested in showing prestige and enhancing power, which is not achieved by buying unmaintained two-bit residential properties. The gangs invest in flashy and modern developments.
The system that’s antiquated and not particularly computerized refers to the notaries who draw the deeds. The property registry system itself is fairly modern and standardized.
In any case, there’s an anti-money laundering bill that will be enacted this year to outlaw cash payments for all real estate transactions and prohibit cash transfers of over 100,000 pesos for most personal property purchases, and imposes reporting requirements on people who habitually carry on big-ticket transactions.
Before committing your hard earned dollars to real estate in Mexico, I really think you should look into real estate on the Big Island in Hawaii.
Great weather year round with comparable prices to the ones you’ll find in Mexico AND you’ll be in the US.
Real estate on the Big Island is way down and great deals can be had.
My wife and I just bought 8 ocean view acres for $200,000 and nearby we got a nice ocean view 2 bedroom/2 bath home on 3 acres for $225,000.
Look into it!
Actually, there are already a number of anti-money laundering bills in Mexico and a number of other ineffective actions as part of the Merida Initiative in cooperation with the U.S. - if you look at the history of purchases of the drug cartels, there are plenty of instances where they have purchased condos in addition to flashy establishments. Remember there are many levels of operators within a cartel, not just the top boss buying the real estate.
My only comment to Mangosteen’s comment, is that I assume you are moving to Mexico to avoiding the crippling taxes and cost of living in this country. That’s doubly bad in some place like Hawaii where everything has to be imported. Plus, I can’t speak for everyone else, but living on an island where you likely run out of things to do in a big hurry would make me go insane after 6 months.
I never thought to consider Hawaii, I always thought that it would be too expensive. I think I’ll research it, thanks for the advice.
Anyone have any other advice on retiring somewhere other than the US? And Yarster is right about lowering the cost of living and taxes after retirement.
I think I’ve read that Costa Rica is popular among some American retirees, partly because it’s a stable democracy and partly because of the climate.
Make sure you consider health care quality and cost as well. I hear Costa Rica is supposed to be good in this regard as well.
Some Americans have retired to Belize also.
I know a lot about Mexico from the American perspective – I’ve lived in Leon (near San Miguel de Allende), Hermosillo (near San Carlos), and I’m just back from a year and a half in Mexico City (lots of expats there, too). I’ve also extensively traveled throughout much of the country. So, where do you have in mind?
The trust mentioned above is called a fideicomiso. You’ll need one if you’re within 100 km of a border or coast. Otherwise you can purchase property outright.
I’m still a long way from retirement, but Mexico is still in my current retirement plans; I’ve just not decided where.
My husband and I are about 10 years from full retirement but we wanted to start investigating possibilities so we can take trips to where we are thinking of retiring and narrow down our choices. We’ve always vacationed in and around Cancun but that would be too touristy for us to live. I’ve looked around Chelem and Progresso thinking that Merida looks like it has modern conviences and good healthcare. It also has an international airport (which is really important), and the prices are such that we could probably afford a second row beach house and still live comfortably. A peaceful and simple life would be very appealing. We are avid snorkelers and I can’t find anything about the quality of reefs off of that coast. Any one know about snorkeling or other places to look in Mexico (primarily coastal).
I know people that live in Playa del Carmen south of Cancun. It’s only kind of touristy, and the town proper is a normal, little Mexican town.
Manzanillo on the Pacific coast is lousy with American and Canadian snowbirds and full-time expats. I’ve only dived there once, and it was good, but I don’t know how the snorkeling is. Most of the tourists are Mexican tourists, but it’s not really a tourist town at the same level as Cabo or Vallarta or Cancun.
San Carlos (part of Guaymas county) on the Pacific has great diving, but again, that’s a bit different than snorkeling but there might be some basis for comparison. It’s only about five hours from the US border in car, and Hermosillo with its airport is only an hour and a half. Again, lots and lots of snowbirds and expats. The only real tourists there are US/Canadians.
Finally – and surprising to me – was Acapulco. I never ran into so many full time expats there in my life! I didn’t get a chance to dive, so I don’t know what’s under the water there. It’s lost a lot of its international tourist luster, but it still gets its fair share, and it’s a huge destination for Mexico Cityians.
Apparently there are quite a few expats in Vallarta, too, but I was never there long enough to get acquainted with any (we pretty much stayed at our resort up in Punto de Mita). Also, I didn’t get a dive in.