Jackie Bondanza - The Complete Guide to Buying a Second Home or Real Estate in Mexico: Insider Secrets You Need to Know

The Complete Guide to Buying a Second Home or Real Estate in Mexico

Insider Secrets You Need to Know

By Jackie Bondanza

The Complete Guide to Buying a Second Home or Real Estate in Mexico: Insider Secrets You Need to Know

Copyright 2010 Atlantic Publishing Group, Inc.

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Library of Congress Cataloging-in-Publication Data

Bondanza, Jackie, 1980

The complete guide to buying a second home or real estate in Mexico : insider secrets you need to know / by Jackie Bondanza.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-1-60138-131-6 (alk. paper)

ISBN-10: 1-60138-131-X (alk. paper)

1. Real estate investment--Mexico. 2. Second homes--Mexico. 3. House buying--Mexico. I. Title.

HD328.B66 2009

643.120972--dc22

2009036890

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Table of Contents

Acknowledgements

There are a number of people to whom I am indebted for their valuable insight and guidance on purchasing real estate in Mexico. Thanks to Wayne Franklin of Tropicasa Realty, Chris Snell of Snell Real Estate, Mauricio Rojas, Brad Grieve, Murphy OBrien Public Relations, and all the case study participants.

I would like to especially thank the A team: Linda Neil of The Settlement Company, Bruce Greenberg of Montaa Verde, and Matthew A. Miller of ConfiCasa Mortgage International for their time, professional guidance, and genuine enthusiasm throughout the writing process. Without them, this book would not have been possible. This is dedicated to them.

I would also like to thank Atlantic Publishing Group and my lovely and talented editor Erin Everhart for her dedicated and professional support and patience.

Lastly, I would like to thank James, Allie, and Eileen for their continued love and support.

Foreword

The first time I bought real estate internationally was on the southwest coast of Nicaragua on the outskirts of a small town called El Ostional. In order to understand the property line, my realtor, a knowledgeable local land owner, the farmer of the land, and I took out a machete and cut our way through overgrown grass to the property. There was no survey done; I could not even tell how big the parcel was. I was not even sure that this farmer was the owner of the property. There were no rules, no process, and lots of risk. We agreed on the numbers on the spot, half the time speaking in Spanish and half in English. I sent my first deposit check directly to the realtor. I took a huge risk, and I cannot say that the purchase was hassle-free. Many years later, I am still dealing with property line and easement issues that were not disclosed during the purchase. Regardless, I am satisfied with my investment.

The property had panoramic views of the ocean and the coastline and was just a few minutes from a deserted, white sandy beach. It was situated on the Costa Rican border, where real estate values had skyrocketed in previous years. In my mind, this area had tremendous potential. A main coastal highway was being planned for the west, and the town 20 miles to the north was growing leaps and bounds. I knew I wanted to get in this market; I just did not know how. There was no formula, guide, or established process to acquire the land; I just winged it. I had bought real estate many times before in the United States and have always been a firm believer in a diversified portfolio with a heavier investment in real estate over stocks. I knew that oceanfront and ocean view property was never going be attainable for me on U.S. soil, so I had to look abroad. I also understood that there was only so much land like this to be purchased. I wanted to get in early, and I am glad I did. The property has increased in value by about 10 percent, and the area has become more popular over time.

There are many variables that afford us the opportunity to go south of the border to look for vacation and retirement homes or investment properties. Land values have increased significantly in the past two decades despite some temporary downturns. For someone looking to live the good life on a beach, in warm weather, or on the golf course doing so in the U.S. may not be an option because of high prices. Just one look at real estate in Mexico, and you will be amazed at what value you get for the money. The retirement lifestyle you dreamed of can truly be a reality because of the affordability, beauty, and ease of life that Mexico provides.

Before the Internet age, living abroad so far from your family and friends, and out of communication seemed like a far-fetched idea. Given the ubiquity of the Internet, e-mail, cell phones, and video chat, we can live nearly anywhere in the world and still be in touch with our loved ones. This makes retiring or living aboard much more manageable. You can be living the good life, with a margarita in one hand, knowing that you are still in touch and reachable in case of emergency.