Buying a vacation home in Mexico or Central America

This has gotta be a hard sell right up there with foreclosures in Lancaster.

Mitch Creekmore, a senior vice president at Stewart International, will be speaking Sunday on "Cashing In on a Second Home in Mexico or Central America" at the American International Real Estate Expo and Conference at the L.A. Convention Center.

The premise, that baby boomers nearing retirement can snatch up real estate bargains and some adventure to boot, seems out of touch with the current crime epidemic in Mexico at least.

Creekmore, who has written articles and books on foreign ownership requirements and related topics, may know his stuff, but can press materials for the talk citing the 2008 World Values Survey really counter some of today's headlines?

Among other things, the survey, based at the University of Michigan Institute for Social Research, found that of the countries reporting an increase in happiness, India, Ireland, Mexico and South Korea were getting happier the fastest.

Perhaps those who are interested in chucking L.A. for the happiest place on Earth could just head to Anaheim.

-- Lauren Beale

Your thoughts? Comments?

Photo: San Juan del Sur, Nicaragua,  is among spots attracting U.S. buyers. Credit: Los Angeles Times

Comments

[E]

You'd be a fool to buy in Mexico. Go spend a month or so down there and get to know the locals. A friend of mine keeps a 2BR rental down there year round (spends 7 months a year there) for $375 a month. Another friend has a 1BR for $350/mo (lives there year round) and a studio can be had for about $250/mo. This is on the Mayan Riviera...can't speak for the Pacific side as I've never been there.

Stay away from Cancun however. LOTS of crime.

[E]

Oh...yeah...and if you want to remodel that's fine...the LL will love you for it. Labor is $2 /hr and materials are pretty cheap also. A couple thousand will go a loooong way.

[happymexican]

E,
You make some solid points about renting in Mexico Vs. buying, but what if you are a local mexican that can afford the mortgage payment? Did Baja have a bubble too?

[Nee-Hao Uncle Billy]

What about purchasing a 2nd Home in China?

For about $3.6 Million (RMB 25 Million) you can pick up a 15,000 Square Foot McPalace just off the airport expressway near the Weigu district of Beijing:

Palais De Fortune, Phase II:

http://www.pdfortune.com/syjsh.htm

Supposedly there are no restrictions on purchasing Beijing real estate as of 2002, but it also looks like the properties come with 70 year use permits, so it's not clear if ownership is "free and clear" over there yet.

[Uncle Billy Eats Tainted Haggis]

If you do go to the AIREEC, be sure to stop by the Guthrie booth. These guys can help you move your excess cash into real estate anywhere. Operating out of a Scottish Castle (well they say the do on their website. I haven't been there so I really can't say), consultants to Exxon, the Onassis Group, and the Vatican.

http://www.theguthriegroup.co.uk/theteam.php

[Steve]

I love Mexico, yet would never buy down there. After 40 trips to Mexico I have seen too many get burned. If you are going to buy, buy a rental in the US and rent in Mexico. With the over building in the resorts and crime/kidnapping there will be some deals as far as rent.

[aj]

There is the issue of the incredibly weak dollar also.

[CompaJD]

Sounds like a great idea if you don't mind getting robbed, kidnapped, raped, blackmailed, beat up, suckered, and being afraid of the police and government. It's seriously bad overthere right now with all the drug cartels going to war against themselves and the government. Your better off living in Compton's worst apartment complex.

[eprobert]

We were in Panama for vacation last summer and most of the US citizens we talked to were there for investing in RE, residential and commercial. The frenzied looks on peoples' faces and the way they spoke of sure profits reminded me of 2nd-home buyers in Riverside circa 2002-2004.

[E]

Happymexican.

Not quite sure what you are saying. Why are you asking me about Baja? I've only been on the Caribbean side as I quite clearly stated.

[Happymexican]

My bad E!

I got my coasts mixed up, plus I can't afford the carribean side anyway. Do you think if I pay rent in Pesos it's better than dollars? The way i see it if i lose pesos in the mexican RE market I'm better off. Right?

[Jonathan]

Not to mention that there are restrictions on buying property in Mexico. I have been told that unless you or one of your parents are Mexican you don't actually own the land.

[E]

HappyMexican...

I always thought that the Pacific Side was supposed to be the expensive one. I like the Caribbean side for the warm turquoise water. If you stay away from the "touristy" places it can actually be quite affordable.

And pesos vs. dollars...they like them all. A bottle of tequila or a case of beer can go a long ways too in the right situation.

Happy traveling!

[Tokyo Temp - ex LA Renter]

I was in the Ginza, Tokyo with my wife a few weeks back doing a bit of window shopping and we were checking out the Bulgari store and there was this Chinese tourist and what a loud moth old bag, she was trying on a pair of shoes and she didn't like them so she kicked them off and complained loudly to the shop staff, who was Japanese and not used to that kind of behavior.

if these are the kind of people who would be my neighbors in the Palais de Fortune (God does that sound awful) then they can keep it.

At least the mobs of peasants will know where to nail all the rich jerks when China faces it's next revolution!

[Ivan Osuna]

For Jonathan:

About your comment "restrictions on buying property in Mexico" please check this link in my website blog http://www.puertovallartamxrealestate.com/blog/?
page_id=53 about owning real estate in Mexico.

You have the same rights and obligations than a mexican owner, believe me it is very easy and simple.

thanks,

[E]

It's actually like that Johnathan...you can have ownership in inland areas. But who wants to live in Torreon? I've been there. Not too pleasant.

Here is a pretty straightforward explanation of the trust agreement called a Fidecomiso.

http://www.mexonline.com/propmex.htm

There are GOBS AND GOBS of condos being built all up and down the Mayan Riviera. If you buy one...plan on owning it forever. There are houses and condos that I know of that have been for sale for years.

It's more important to find a good Lawyer than a Realtor and make sure that you find the Lawyer on your own rather than one that may be in bed with the Realtor.

Caveat Emptor!

[Jim Townes]

I remember going to Northern Baja a few summers ago during the height of the boom and could not believe the construction. I felt there was no way possible demand was going to meet this supply and now I hear its totally dead. With crime in TJ you can probably get some serious deals.

You read about crime and kidnapping but I've been to Mexico dozens of times and never felt unsafe at any moment. Of course the surge in kidnappings is unsettling and I can't say that if I lived there our spent significant amounts of time in one place that I wouldn't worry about being a target.

[DollarBill]

Just came back from a trip to look at real estate in the Lake Chapala area and Manzanillo beach area . Prices are not cheap by American standards anymore and the disadvantages are evident . Food has gone up considerably and unless you want to live in dumpy ,nosier areas it will cost you . Yes you can live in a more 'local style' home for 300-500 dollars but you can have my share of those areas.
Lake Chapala was looking pretty crowded and busted up with lots of development ,no thanks! Manzanillo's pollution problem has gotten worse every year and looks industrial and gloomy at times .Mexico has been a destination for us for the past 20 years for us and numerous trips the past few years but it is going downhill at a good rate now . The crime is increasing rapidly and the 'express kidnappings' go largely unreported ,not into worrying if family members will return from the store one day ! Mexico is beautiful where people have not destroyed it but it is on a downward spiral according to many of us and we are NOT going to relocate there ,just not happening.

[Claudia Gonella]

The key to cutting a great deal in Central America is getting hold of objective market information to determine fair value. Trouble is, in Central America investors can't draw on industry databases like the Multiple Listing Service. There are some new sites that are aggregating data to shed some light in this area.

[St. Maarten island]

Mexico is a wonderful place,i think i will never regrets to buy a
vacation home.Thanks for posting this interesting topic.

-Sarah