Читать книгу Bargains Beyond the Border - Get Past the Blood and Drugs: Mexico's Lower Cost of Living Can Avert a Tearful Retirement - Tom MD Kelly - Страница 5

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."

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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 which is more profitable?”) He spends most of his time south of the border and part of his year in Fort Lauderdale.

“Would I ever go out walking at 5 a.m. alone in Lauderdale or Miami? Hell no,” Hill said. “Just the thought of that scares the hell out of me. There are many neighborhoods in Seattle where I would never go out walking alone in the dark.”

Even with the killings in the country the past two years, statistics provided by the Citizens’ Institute for Crime Studies in Mexico City reveal that the murder 2009 rate in Mexico was lower than it was a decade before. In addition, the 2008 murder rate in Washington, D.C., was nearly four times that of Mexico City in 2009 (31.4 per 100,000 compared to 8 per 100,000).

In reality, the rest of Mexico is unchanged and laid-back, warm and welcoming to foreigners. It has received a bum rap, as reporters have raced to make the world believe that the entire country is on the brink of a blood bath. That is simply not the case, and many of the areas continue to appreciate, unlike most of the markets in the U.S. Nine of Mexico’s 31 states have any significant issues with murder or other major crimes and those are concentrated in specific districts.

“Some U.S. newspaper or news service put out a report about some drug related shooting in Acapulco,” Hill said. “But the headline said something like ‘Drug related shooting in major Mexico resort city.’ Why didn’t they just say it was in Acapulco instead of insinuating that all resort cities have issues? Again, my thought of media/government conspiracy kicks in.”

Are you ready for a contrarian cruise through Mexico that avoids drugs, murders and muggings yet provides proof of an inexpensive, carefree life? That’s not difficult to do because 95 percent of the country still offers exactly that. Get on board, and rest assured we won’t be crossing the border at Ciudad Juarez after dark. And, we won’t forget about your investment portfolio along the way.

“It's not such a bad idea to diversify away from stocks,” said Cramer, a magna cum laude graduate from Harvard. “I think that out of favor real estate in Mexico that's easily accessible to Americans represents a great buy . . .”

He added that there is “no property tax,” the properties are “incredibly easy to maintain,” and there are “property managers everywhere.”

Keep in mind our trip is not about the cost of real estate. It’s about the cost of living. Oh, and Mexico DOES have a property tax – approximately 10 percent of what you are paying now.

In this book, we will correct Cramer’s mistake on tax plus meet other second-home buyers, investors and retirees who share his views about living and investing south of the border. We will show you their answers to our questions about crime and occupancy in key areas of the country. We’ll also explain why Mexico will become a needed alternative especially for 59,250,000 baby boomers that have not saved enough to fund their retirement years.

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It’s not just about the cost of real estate in Mexico – it’s about the cost of living. A lower cost of living is in addition to lower real estate prices. While a $300,000 waterfront condominium can be expensive to one person yet a bargain to another, the actual costs of goods and services are about the same. All people will pay the same for fruit, vegetables and staples. This is perhaps one of the most important factors for recreation, investment and retirement buyers – especially baby boomers in terms of their decision to move to Mexico. After all, it is a lack of money and assets in their retirement funds that has ultimately led to considering Mexico as a retirement target.

Unfortunately, the negativity surrounding the country comes at a time when more and more Americans could use a less expensive place to live. According to a new report by Washington, D.C. - based Center for Economic and Policy Research (CEPR), baby boomers have not saved, will be forced to work longer and/or move to less expensive places than they anticipated. Property taxes, health care, cost of living will force boomers to more than thinking about moving to other countries, especially if they plan on living at the same level of comfort as they do now.

In Mexico, you will discover not only high-quality health care but also an impressive standard of living. Property taxes, which seem to rise annually in the States and are a primary reason seniors move out of their primary homes, are extremely low south of the border. Most property taxes in Mexico are less than 10 percent of a North American home.

Expensive U.S. insurance premiums and prescription costs . . . all of those (and more) can be had for a mere fraction of what it costs you right now. While prices will vary depending upon location, here is a realistic example of what you can expect in Mexico.

Your money goes a long way. Homeowners’ insurance bills are small because fire hazards are limited and people aren't as litigious as in the United States. And, that’s just a start.

But first and foremost, let’s address what’s on everybody’s mind when you even mention the word “Mexico.”