Bargains Beyond
the Border
Get Past the Blood and Drugs:
Mexico’s Lower Cost of Living
Can Avert a Tearful Retirement
By Tom Kelly
Copyright © 2011 by Tom Kelly
Published in eBook format by eBookIt.com
ISBN-13: 978-1-4566-0372-4
All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means including photocopying, recording or other electronic or mechanical methods without prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain noncommercial uses permitted by copyright law.
Although the author and publisher have made every effort to ensure the accuracy and completeness of the information contained in this book, we assume no responsibility for errors, inaccuracies, omissions or any inconsistency herein. Any slight of people, places or organizations is unintentional. Neither the publisher, nor the authors, shall be held liable for any loss of profit or any other commercial damages, including to but not limited to consequential, incidental, special or other damages. The advice and strategies contained in this book may not be suitable to some situations. If legal advice or other expert assistance is needed, the services of an experienced, competent attorney or other professional should be contacted.
Acknowledgements
The author wishes to thank the numerous individuals who provided creative insights, direction and useful information for this book. Leading this list are Mitch Creekmore, Linda Owens, Christine Karpinski, Joanne Elizabeth Kelly, Tim O’Brien, Brad Inman, Rick Cesari, Jorge Gomez, Ron Lynch, Benjamin Beja, Rob Keasal, John Tuccillo and Kevin Hawkins. I also am grateful to the numerous second homeowners and renters for sharing their stories.
About the Author
Tom Kelly
As author, nationally syndicated newspaper columnist and talk-show host, Tom Kelly has carved a niche as one of the leading journalists specializing in homes for retirement, investment and vacation. His ground-breaking “How a Second Home Can Be Your Best Investment” (McGraw-Hill), written with economist John Tuccillo) showed consumers and professionals how one additional piece of real estate could serve as an investment, recreation and retirement property over time. “Cashing In on a Second Home in Mexico” (Crabman Publishing) written with Stewart International’s Mitch Creekmore, is the first in a series exploring the benefits of international second home marketplace. “Cashing In on a Second Home in Central America”, was written with Creekmore and National Association of Realtors international real estate specialist Jeff Hornberger.
He also has written “Real Estate Boomers and Beyond: Exploring the Costs, Choices and Changes of Your Next Move’’ (Dearborn) and “The New Reverse Mortgage Formula” (John Wiley & Sons).
Kelly served The Seattle Times readers for 20 years, many as Real Estate Editor. His features now appear in The Houston Chronicle, The Washington Post, Miami Herald, Portland Oregonian, The Tacoma News Tribune, Louisville Courier-Journal, plus more than two dozen other newspapers.
Tom’s award-winning radio show “Real Estate Today” has aired for 17 years on Seattle’s Bonneville stations and was syndicated by Business Talk Radio to approximately 40 domestic markets to 450 stations in 160 foreign countries via Armed Forces Radio.
Tom is a graduate of Santa Clara University. He and his wife, Jodi, an associate dean and professor at Seattle University, have four children and live on Bainbridge Island, Washington.
Introduction
The Majority of Mexico Remains Laid-Back, Welcoming and Safe
‘Not Every State Is Involved in the Drug Trade’
Jim Cramer, the bombastic, high-energy investment guru and host of the CNBC show Mad Money, told his audience in late July, 2010, that he recently purchased three properties in Mexico. Why Jim?
"Mexico is a big country and not every province, every state is involved in the drug trade,” Cramer said. “It has to be one of the nicest places I've ever been."
* * *
When was the last time the beauty was showcased – instead of a border war or a drug-related incident?
From lush and tropic mountainous municipalities on brilliant bays to iridescent sparkling water with white sandy beaches to European style architecture in houses lining cobblestone streets in quaint picturesque settings, our Spanish speaking neighbor to the south is abundantly rich in geographic and natural diversification. Mexico is a country that provides a panorama of stunningly beautiful landscapes and indigenous culture regionally seasoned by its history and native ancestry. Pyramids, volcanoes, caves, mountains, ancient ruins, waterfalls and underground springs provide a spectacular playground for those wishing to explore and experience its natural array of beauty. Species of birds and animals, plants and flowers help create the majestic contrasts that make Mexico so incredibly appealing. Dry and arid desert terrain transcend to the humid jungle environs at opposite ends of the country providing an appreciated appeal to certain types of inhabitants. These locales have also become the destinations for many a foreigner seeking a different clime and setting to reside or vacation. It is merely a question of what you like and where you want to be. Mexico is a country that offers something for everyone.
Forty-three percent of the land area of Mexico fronts on water. The coastlines vary in their topography and geographic presentation as a result of the terrain that lines the Pacific Ocean, the Sea of Cortez, the Bay of Banderas, the Mexican Caribbean and the Gulf of Mexico. Until the days of paved roads and aircraft, Mexico was not so much a united country as a loose federation of regions virtually isolated from one another by a rugged geography. In some areas, the mountain ranges were so impenetrable that neighboring towns were practically ignorant of each other’s existence. Today modern communication systems leap mountains and find remote villages. Still, unifying characteristics in so large and varied a country will never be easy to find.
The reports of crime in Mexico has slowed the flow of North Americans to southern Baja and many other destinations south of the border but it has not stopped the steady stream of Europeans, South Americans and Asians. In fact, the flow of North American traffic in the last quarter of 2010 has increased. Though much of the violence occurs in border towns, Mexico City has had major problems as has the community of Culiacan, two hours north of Mazatlan.
“When someone gets killed in New York City, people in Europe don’t boycott the United States,” said Marino Tomacelli, a Mexican national living near San Diego. “There’s a general perception that only negative things are happening in Mexico. That’s coupled with an American ignorance of the geography. If there is a mugging at night in Tijuana, they think there is going to be a problem in Cancun, Cabo and the Riviera Maya.
“Nothing could be further from the truth. I continue to feel safer in Mexico than I do in the States. In fact, I think some people are promoting the violence in Mexico to keep tourist dollars in the States.”
Max Katz, broker-owner of the Baja Real Estate Group based in Rosarito Beach south of Tijuana, said the most discouraging thing to agents is the re-running of television news stories that are more than a year old.
“Things have changed for the better,” Katz said. “But you would never know it. Given what’s on the tube, you would think we have gone backward.”
Jeffrey Hill, a former Seattle resident, has four vacation rental homes in Puerto Vallarta and one in Florida (“Does that tell you