Living in Cabo: What’s Up With South Dakota?

If you’re observant you might notice the extremely large percentage of South Dakota-plated vehicles in Cabo. In fact, you might draw the conclusion that the entire state drives down here for the winter season. But what you might not know is that many of those vehicles belong to people who don’t live in South Dakota. I’d even bet some of them have never been to that state. Yet, their cars are registered there. What’s up with that?

Once you have a home here, whether as your full time residence or a vacation property, you’ll want a car. How else are you going to get to the beach? You can buy a car here, of course, but many people prefer to bring one down from the US or Canada. Once the car is here you may drive it around Cabo perfectly legally, as long as the foreign plates are current. Your car insurance, already a bargain by US standards, is actually cheaper if the car bears foreign plates. So instead of converting the car’s nationality, many expatriates prefer to continue to use the plates from the U.S..

Here’s the thing: some of the states involved have made procedures for renewing those license plates annoying, to say the least. Driving to Cabo is a blast (see prior blogs), but not something you want to be forced to do on a regular basis. And, let’s face it, some of the cars don’t here aren’t really up to the task. Yet, if your state requires an inspection or smog test, you have no choice. To make matters worse, some states such as California, require a local insurance policy even if the car is out of state. Ouch!

In the past most locals followed a predictable course: they just ignored the whole thing and continued to drive the car on expired plates. For others, who wanted to at least put on a good show a lively business grew up providing forged stickers and registration papers. They might not have fooled a real CHP agent, but were good enough to convince the local cops. Some were able to nationalize their cars through a process called ‘importation’, but the bureaucracy involved is arcane, time consuming, and expensive.

And then someone discovered South Dakota. South Dakota evidently is very willing to sell you a valid registration and license plates even if you don’t live there. They require no smog test, no inspection, and no certificate of insurance. Best of all, the renewal is only $38. These are valid registrations, and recognized throughout Mexico.

The intrepid Cabo resident who discovered this and learned how to navigate the system is Bob Jankovics, and he has created a business of processing the paperwork for the transfer of registration. Once he’s gotten you your plates the renewal process is relatively simple and straight-forward. We used this to get my husband’s Suburban out of limbo. We’d previously paid someone to transfer ownership to Mexico, but they botched the job. So we were stuck: no US plates (they’d been surrendered), and our Mexican plates weren’t valid and couldn’t be renewed. No one could figure out how to straighten out the paperwork. We contracted with Bob J, who only took a week or so to deliver our brand new South Dakota license plates. A few weeks later our new registration papers arrived in the mail through our California forwarding service. We’ve even renewed the plates since then with no problem. All perfectly legit.

The Cabo locals (we don’t use the term ex-pat) are absolutely ingenious at figuring out solutions to all the little details of living for U.S. citizens in Mexico. The use of South Dakota plates is no exception, I’ve been told there are well over 600 of us so far and more converting every week. As a public service, here’s how you can join the crowd.
Bob Jankovics can be reached at bobjankovics@gmail.com, or local cell phone (624) 129-9232. He prefers to meet you at Costco to go over the paperwork; it’s convenient for all parties since this isn’t a real business for him.

And if there is someone driving one of these cars who really is from South Dakota, I’d love to hear from you!

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine and the real estate co-ordinator for the Los Cabos Now program on CaboMil FM (www.cabomil.com.mx). You can read more of her articles on www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

Search more than 2000 listings on the new www.lovecabo.net

© 2010 Carol S. Billups

How Many Salsas? A Taqueria Owner Explains

Here is a link to a video of Chava explaining all the many salas on the table: http://www.youtube.com/watch?v=6OYWRMbxohQ

Retiring in Los Cabos: more thoughts

According to International Living magazine over one million Americans are already living in Mexico. Why? Well, why not? The weather is great, the people are friendly and the cost of living well is significantly lower than in the U.S.

For the past week or two I’ve been blogging my answers to questions I’m getting from someone considering semi-retiring to Los Cabos. As you can imagine, many of them concern cost of living. Since we have no CPI or official numbers to consult these are tough ones. I can tell her what our living costs are, but lifestyles differ. It’s hard to generalize. You can read those blogs on this site, they started in late December. I figured I’d try to re-cap by category and see if that is any more meaningful.

TAXES:
Property tax is extremely low; almost non-existent. Income tax, for commission workers is also quite a bit lower than in the States. There is acquisition tax on real estate, but that is a one-time event. All in all, I’d say this category is significantly lower, almost to the point of not needing consideration.

AUTO:
Insurance is lower than similar vehicles and drivers in California, about $500 per year in most cases depending on the coverage and deductibles it may be lower. Car registration is quite affordable, or if you’re bringing a U.S. tagged car there is a gentleman here who, for a few hundred bucks, will switch you over to South Dakota plates which can be renewed for $40 US annually with no smog inspection or insurance needed. Gas is $2.20 per gallon.

FOOD:
Here’s the tough one. It really depends on what you buy. If you load up on imported products they can be costly; there is import tax that is passed on to you. However many of the same products are available made in Mexico. For example, a box of Blue Bunny neopolitan no-sugar-added ice cream may be close to $9, but the same size box (I’m blanking on the brand name, but it’s Mexican) of domestic is about $3, and you can’t tell the difference. Overall, I’d say food is less expensive here, especially since we had the influx of large stores and they now must compete. Patronizing restaurants that offer local discounts or using pre-paid vouchers will help bring down the cost of eating out. So will patronizing non-touristy restaurants and often the food is better.

MEDICAL CARE:
Health care in Mexico is significantly cheaper than in the U.S., as mentioned in many previous blogs on several websites. Although you can opt in to the national health care system (IMSS), here in Cabo most ex-pats and even many Mexicans, prefer to see a private doctor. It’s quite reasonable and the care is excellent. In my opinion the care here is often better than in the U.S.

RECREATION:
Again, this one is too variable, but I’d guess a bit less than in the US. Yes, golf is outrageously spendy here. That is why so many of the locals (the name we have for Americans and Canadians living here) are marshals. You marshal a half day a week and get paid in free golf. If you and your friends work it right you can play many of the courses, as they allow you to bring friends.

HOUSING:
Yes, our real estate in Los Cabos can be pricey. Or reasonable. It depends on what you buy and where. And once you’ve bought in the carrying costs are low. Utilities other than electricity are very cheap, and a maid will cost you about $20 US per day if part-time, less if you employ her full time. A gardener will charge you about $80 per month, and a pool service another $70.

CLOTHING:
I have no idea about this one, I’m sooo not the size of a normal Mexicana that I don’t even try. Perhaps one of the readers can chime in here?

All in all, I’d say the cost of living in Cabo is lower than in the U.S., sometimes significantly lower. And the lifestyle your retirement income buys on this side of the border is fantastic! Add that to our perfect weather and my question would be: why in the world would anyone NOT retire to Los Cabos?

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine and the real estate co-ordinator for the Los Cabos Now program on CaboMil FM (www.cabomil.com.mx). You can read more of her articles on www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

Search more than 2000 listings on the new www.lovecabo.net

© 2010 Carol S. Billups

Living in Cabo: How to Get Your Visa

Ever wonder how I get my ideas? Easy, someone asks me a question. Bingo! New blog topic. Anyway, I got an e-mail from someone thinking of retiring here in Los Cabos from Australia. She mentioned what a hardship it would be with the visa requirements and I realized that, although I’ve mentioned immigration documents in other blogs, I’ve never really done a blog specifically on the topic. So here it is…

There seems to be someone out there putting information on the internet about your visa only being good for 180 days. That’s very misleading.

There are three levels of visas. The Tourist Card, or FMT, is the most basic and easiest. This is the card passed out on the airplane or at the border which allows you to be in Mexico for a period of up to 180 days. You are allowed to be a tourist. Period. And at the end of 180 days you have to go home. You can, if you wish, turn right around and come back the next day, using a new FMT that is good for another 180 days. This is where the person who asked the question got her mis-information. However, since she is going to MOVE here this is not the kind of visa she’ll need.

If you are going to reside in Mexico (as opposed to being a tourist) you will want to get a permanent resident visa. These are called FM-3 or FM-2. These visas allow you to be in Mexico for an indefinite period of time. Because they are more formal documents they are more difficult to get, but well worth the effort. For one thing, Mexico wants you to get one. It seems to me if you’re going to be living in a country you should try to abide by their wishes. On a more practical level you will need a permanent visa to sign a lease, open a bank account, contract for utilities and just about any other basic necessity of life.

If you are retiring to Mexico the FM-3 is the document of choice. You will need copies of various papers establishing your identity and copies of checking account statements going back three months showing income of at least $400 USD per month. This is so that Immigration can be sure that you will have the funds necessary to support yourself and not be a drain on the system. Because the list of required documents changes frequently, and the process is tedious at best, most people pay a service to do all the standing in line for them. However it is possible to process your own if you are patient. You will also need to provide several photos of yourself and fill in a lengthy form. Finally you will receive your FM-3, which is a green booklet similar in size to a passport. This is your permanent resident visa. Whenever you enter or leave Mexico it will be stamped by immigration. It is issued for a period of five years, but must be renewed periodically. Some are renewed each year, others require renewal every six months based on a judgment call made by the person processing your file. At the end of five years you may upgrade to an FM-2 or stay with the FM-3 status (best for most retirees). At the end of that five years you may apply for migrado status, which means you have officially immigrated and you won’t need to visit immigration again. You’re in for life!

You can apply for an FM-3 non-lucrative at any Mexican Embassy or Consulate in your home country, or you may apply in the area you plan to live. If applying in-country you’ll surrender your FMT when you pick you your FM-3.

If you want to work the visa is more difficult to get. In this case you must apply for your FM-3 in the area in which you plan to reside. The head of immigration for your area has a great deal of autonomy in regulating the influx of foreign labor. So, they may decide that Los Cabos has too many foreigners selling real estate and simply stop issuing new work permits for a given period of time. The permitted activity is very specific; you are not allowed to sell real estate but allowed to sell real estate for Realty Executives Los Cabos at their office on L. Cardenas. Every time one of my non-Mexican executives renews their FM-3 or FM-2 I have to sign a letter stating that they are still working for me and that I will be responsible for them while they are in Mexico. If a foreigner working for another firm decides to work for me their former broker must release them through immigration, I then agree to pick them up, and then the permit is revised to show their new workplace. The first five years you will have an FM-3 Lucrative, you may then move up to an FM-2 which allows you to perform more activities (two businesses). Occasionally FM-2’s are issued before the five year mark, one of my executives was automatically upgraded when he married a Mexican national. I guess they figured with a step-daughter at University he was going to need to moonlight!

Just as with retirees, at the 10 year point you can opt for migrado status.

One more point: you do not need an FM-3 or FM-2 to do volunteer work. HOWEVER, if you will be on the board or perform as an officer of any organization including non-profits such as home-owner’s associations or charities, this must be on your FM-3. That change is quite easy to make.

So that’s the skinny on visas. My best advice? Unless you are completely fluent and have the patience of a saint, pay someone to help you out. Your realtor can suggest someone who will do this with you, and their fees are well worth it.

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine and the real estate co-ordinator for the Los Cabos Now program on CaboMil FM (www.cabomil.com.mx). You can read more of her articles on www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

Search more than 2000 listings on the new www.lovecabo.net

© 2010 Carol S. Billups

Living In Los Cabos: Buying Gas

It’s that time of year! A very pretty time, skies are blue, seas are calm (unless a whale jumps up in front of you and that’s a good thing), temperatures are reliably in the high 70’s. So what’s up? Taxes. All taxes are reconsidered and recalculated and the changes go into effect Jan 1, even though no self-respecting Notario comes back to work before the 15th.

Federally set prices also go up Jan 1, including the cost of gasoline at Pemex. I’ve learned recently that the price actually does vary nationally, although within town it’s all the same. Here in Cabo the price went up. Geez! Why didn’t I fill up the Suburban on New Year’s Eve? Anyway, here’s the new cost.

Thanks to my engineer hubby, who is the only person possible who would take the time and have the patience to convert liters to gallons and pesos to dollars the new going rate for gas in Cabo is $2.20 per gallon. This is, according to my administrator Carlos, about a 70 centavo per liter increase.

No getting around it, the price is the price is the price. Pay it or walk or get on the bus.

So, in the public interest, I’m just posting the change. As per the above paragraph we have to live with the change. IVA, the sales tax, has also gone up one percent. In Cabo that’s 11% up from 10% and on the mainland 16 versus 15. Not a killer.

Capital gains tax has also gone up to 30% of the gain, and there are some changes in the rule for being exempt. But more about that one later….

So FYI, if you knew how much of your tank $200 pesos would fill it’s time to re-calibrate.

Welcome to 2010, and let’s face it: it’s a small, small price to live in Paradise1

Carol Billups is Broker/Owner of Realty Executives Los Cabos in Cabo San Lucas. She loves to put clients in touch with their dream home in Mexico. She is the real estate columnist for Los Cabos Magazine and the Real Estate Co-Ordinator for the Los Cabos Now talk show on Cabo Mil FM, Los Cabos only radio station.sd You can read more of her articles on www.reloscabos.com or contact her at loscabos@realtyexecutives.com. Her phone from the US or Canada is 1-760-481-$7694 or in Cabo at 044-624-147-7541. You can search hundreds of listings in all of Los Cabos by visiting her website www.lovecabo.net

© 2010 Carol S. Billups

Welcome to Mexico! Your Name is Now “MULE”

It’s that time of year when houseguests start showing up in Mexico, actually they began arriving a few weeks ago. That’s great news, we love having company from up in the Frozen Tundra. For first timers, here is a handy guide to your duty as an incoming: bringing us stuff. I have a client/friend part-time resident who travels down with her guests. She meets them at the airport and hands each a suitcase telling them “This one is your responsibility and good luck with Customs.”

In Cabo it’s not so bad anymore. The influx of new stores a few years back means we can get more of the products we need. I may be showing my age, but I remember when guests had to smuggle in frozen turkeys for Thanksgiving dinner. Now we can purchase them (and the cranberry sauce to boot) locally, but there are still things that are hard to get in Mexico and it is a great help when our guests can cart them here.

Thanks to on-line shopping we can now have a variety of needed items shipped to your door for you to schlep down with you. Do not be surprised when little packages begin to pile up on your doorstep. Please expect that when we issue an invitation. Just in case your host is shy, here are some things that are still difficult to find in Mexico, and which will put you high on the re-invite list:
• If your host drinks decaf coffee, whole bean decaf of a reasonable quality is impossible to find here. My favorite is Jose’s Vanilla Nut decaf. You cannot bring too much.
• Chocolates. Yes, Chocolate was the Aztec’s gift to the world. But quality chocolates are harder to find here (other than during Christmas season). A nice box of truffles will have your hostess in a dither.
• Scotch or whiskey. Both are horrifically expensive here, you are allowed to bring in a bottle per person duty-free.
• Books. Some of us have ways of getting books down here, but English language books and magazines are rare and costly. Current DVDs, magazines and CD’s are also appreciated.
• Various beauty/health items, such as face creams are much more affordable on your side of the border.
• Anything “As seen on TV”. I have a friend burning up bandwidth on Facebook extolling the virtues of a chopper she picked up when in LA a week ago. We don’t see it on TV, or if we do, we can’t order.
• Electronics. From I-Pods to FLIP cameras, you can get it cheaper up there, if we can even get it at all. Digital photo frames are unknown in Mexico.
• Parts. This may be a car part, or a whatchamacallit for the dryer, or any other appliance. Parts are always a problem and if we have someone coming in, that’s a real blessing. These may not be for your host, we share our mules. That’s part of the joy of being a community.
• Anything from E-Bay. Hey, we have that addiction too! We’ll just ship to your address.

Your host or hostess will surely have a list for you, or will just start ordering. I often need my guest to bring printed materials such as business cards. Yes, you can get them here, but often at a higher cost than in the U.S. These are the strange things your host will hope you will volunteer to tote in your luggage. That’s a good thing. Not only are you going to get a vacation in paradise, you’ll have plenty of room in your luggage to bring souvenirs for the folks back home. The oddest thing I ever had carted down was a live-autographed football for our administrator who is a HUGE Tom Brady fan, a steal on e-Bay, but the seller did not ship internationally. Luckily, we had someone coming who could tuck it in their bag. When they arrived you would have thought he was a combination of Santa, the Easter Bunny and the Tooth Fairy. You can’t put a price on that kind of gratitude.

Welcome, MULE. We love you! And you will love your job, once you’re here basking on our beaches and enjoying our warm way of life. So lugging a few pounds of contraband (legal, of course) doesn’t seem too high a price, does it?

Carol Billups is Broker/Owner of Realty Executives Los Cabos in Cabo San Lucas. She loves to put clients in touch with their dream home in Mexico. She is the real estate columnist for Los Cabos Magazine and the Real Estate Co-Ordinator for the Los Cabos Now talk show on Cabo Mil FM, Los Cabos only radio station.sd You can read more of her articles on www.reloscabos.com or contact her at loscabos@realtyexecutives.com. Her phone from the US or Canada is 1-760-481-7694 or in Cabo at 044-624-147-7541. You can search hundreds of listings in all of Los Cabos by visiting her website www.lovecabo.net

© 2010 Carol S. Billups

Moving to Cabo: Bringing Your Stuff

This is the second installment in my answers to my new email buddy who is considering moving to Cabo. Her questions included ‘how will we get our stuff down there’. Ah, there are several ways to do it. Here’s how Bob and I did it so many years ago.

When you move to Mexico you’ll need a permanent resident visa, or FM3. Once you’ve gotten one you are entitled to a one-time free pass on bringing in household goods, etc. As memory serves this document is called a manejo de casa, or some such. Your mover will help with the paperwork. You will make a list of everything you’re bringing, and label each box with a number and the contents. You can’t mix up categories. For example, if you have a box of belts, it only contains belts. Purses go in another box. Dishes go in their own box, glasses another. You get the picture. Things that are unboxed, such as furniture or electronics, get a number. Handy hint: add three or four boxes to your inventory and label them ‘miscellaneous’. You’ll undoubtedly have forgotten something. Once you’ve gotten the paperwork filled out and your inventory complete you’ll take the whole mess to the nearest Mexican consulate with your passports, FM-3’s and whatever else the mover tells you. As memory serves we needed multiple copies of some items.

Don’t worry; this is not an all day adventure. When you get to the consulate they’ll steer you into the correct line which is undoubtedly much, much shorter than the lines of Mexicans renewing passports. As in, no one in that line at all. The nice person at the consulate will take all your paperwork and send you off to have brunch somewhere. When you return they will give you your papers back, with all sorts of lovely stamps and seals. DO NOT alter anything at this point, including removing staples. You’ll note they folded over pages and stamped across the seam. Any alteration after this point voids the whole thing. You will also notice that your FM-3 has a big sticker on one page stating that you have used your once-in-a-lifetime free pass. As I recall they keep one copy of the inventory.

Now here’s an interesting point: if you and your spouse have different last names, or aren’t officially married, you can each get one move, using one now and holding the other’s right in reserve. That’s what our mover suggested and told Bob to wait in the car, but he came in and the consul person saw us together, requested both FM-3s and stamped them both as used. Not that we’ve ever needed it, but I guess if we decided to go on a major buying spree up there it would be handy to use the second pass.

Anyway, your mover will come and get the paperwork and all your items and take it from there. About a week or so later you’ll be reunited with your stuff in Cabo. They will get it across the border, through Customs and shipped down.

Now I’ve been mentioning ‘mover’. Depending on where you’re coming from you may need plural movers. We were coming from north San Diego County, so were close enough for the import company to do the whole thing, and their costs were quite reasonable. There are several import companies, who may have different policies. If you’re too far from the border they may help with the paperwork but ask you to have someone like Bekins bring the stuff as far as the border, where they will take over and do their thing.

Then it’s just a matter of you putting the last things (I’d hold out any valuables like jewelry) in your car and driving down. If it’s too far you can ship your car, too, but we had a pack of dogs to transport. Your doggies or kitties will need a valid health certificate, just like coming to visit. You can also fly them down, checking with the airline way in advance. At certain times of the year flying pets is prohibited.

Other people I’ve known have purchased trailers and hauled their stuff down by themselves. That’s a bit too do-it-yourself for me, but you might try that. Some haven’t bothered with the paperwork and just held their breath crossing the border. Waaay too scary for conservative Carol.

Our move was a long time ago, but I do recall the cost of all this as being quite reasonable. It will help if you can be a little flexible on the timing: if they can fit your stuff into available space when they’ve only got a partial load versus having to get it there by a certain date the price might be better. Also, because of the specificity of the labeling we found it better to use document boxes (like you can buy at Office Depot) instead of regular moving boxes. And all of this needs to be used goods; you can’t go buy a new refrigerator and put it on the list. If you’re going this route at least take it out of the box and scuff it up a little so it looks used when Customs inspects your load. Your mover will give you good advice on this: it pays to listen to the experts. They know what you can and can’t get away with. You will want to bring your own linens, and I did get away with some new items in this category.

We used to get transferred within the US often. The first five years of our marriage we didn’t spend Christmas in the same house twice! After all that experience I can say that our move here was a breeze. And no, we’ve never regretted doing it.

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for over nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine and the real estate co-ordinator for the Los Cabos Now program on CaboMil FM (www.cabomil.com.mx). You can read more of her articles on www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

Search more than 2000 listings on the new www.lovecabo.net

© 2010 Carol S. Billups

Living In Los Cabos: Annual Tax and HOA Dues

I’ve been emailing with someone who is thinking of moving to Cabo, her questions are so good that they deserve blogging. Today she asked about the cost of living, and specifically taxes and home-owners dues.

There’s no question that it’s cheaper to live in Cabo than the U.S., but by how much? We don’t have a CPI to rely on so comparisons are tricky. And certainly lifestyle has a lot to do with it. If you’re into nightly trips to five-star restaurants for multi-course dinners and vintage wines, well, you’re going not going to be worried about cost of living anyway. For the rest of us, once you’re out of the tourist mode, and have purchased your home, you’ll find you live surprisingly well on a smaller budget. Some of the biggest savings are taxes, automobile expenses and insurance.

The question about taxes, I believe she meant property taxes, is one you have to just forget about. It’s hard to house-hunters to get it, but our annual property taxes are simply not a consideration. Yes, there is a sales tax on real estate. That is worthy of consideration (figure about 3 percent between the federal acquisition tax and municipal ‘fees’). The yearly tax, however, is not worth more than a moment’s thought.

The annual tax, or predial, is due in January. You pay it at the delegation, which is sort of like city hall, by taking in last year’s bill. They figure out your new bill, you pay in cash, and they give you a receipt. I just checked the 2009 bill for one of my listings in Pedregal. Pedregal is an upscale neighborhood; this is a three bedroom home on a good-sized lot which is on the market for $599,000 USD. The annual tax bill? 1,655 PESOS! Using a 13/1 exchange rate that comes to about $130 US dollars. That’s it! For the year! Even better, if paid in January a 15% discount applies! This seems low to me, but it’s rare to see a tax bill more than about three or four hundred dollars. When the house is sold I expect the municipality will re-assess it. But you can see that property tax is not a consideration. Or maybe it is: the savings on this one item can be a huge factor in figuring the cost of living and why living here is more affordable.

If you’re working here, income tax is also considerably lower. Most foreigners are commission-only and therefore eligible to pay a special tax rate of 10% of gross with no deductions. Pretty cool, eh? Up to about $90,000 is exempt from US taxation, although you still have to file annually.

Home-owner’s association fees are a bigger budget consideration. First point: if you’re moving here to live full-time, do you need to be in a gated community? The primary reason for being in a guarded community isn’t crime, it’s having someone to look after the home while it’s empty. How much or how little those dues are depend on many factors, of course, including how many amenities are offered, how many homes there are to share the cost, and how good the management and board are. Another consideration in this economy is collections: some associations are struggling this year because so many owners have failed to pay! In one community the ‘deadbeat’ account is about two million US dollars! Unless collection efforts are more effective I’d expect to see some special assessments in 2010.

It’s important, especially if cost of living is a consideration, to take into account what those amenities are. In some cases they include property management, which a full time resident doesn’t need. If you’re here full time you’re perfectly capable of paying your own utility bills, and you don’t need a rental manager or concierge. So why pay for them? It’s nice to have a gym, and spa, and conference room but are these things you will actually use on a regular basis? Look closely at what amenities you’re likely to use, and which are a waste. Yes, they might add value at re-sale time, but will that outweigh the additional monthly expense over the next ten years?

If it’s a new development this is a very difficult question as the developer may be supporting some of the amenities to keep HOA dues artificially low and make his product more attractive. According to some listings on the MLS (which may be prone to agent input error) the current monthly dues at Ventanas Residential are $230 US per month. Cabo Bello’s dues are about $150 per month. In Pedregal a ‘normal’ home on a ‘normal’ lot pays about $170 per month.

There are so many wonderful areas in Los Cabos that lend themselves to full time living, it’s hard to say which one will do it for any particular client. I’ve noticed full timers are happiest when they’re surrounded by their own kind: either full time residents or snow-birds who are here for the bigger part of the year. It’s easier to make lasting friendships, establish a social life, and share common interests. And there are dozens of communities that fit the bill. It’s just a matter of taking the time to explore a lot of them, taking your time to be sure you’re in the right place and not being distracted by smoke and mirrors some developers are so good at providing.

One more point on costs: your annual trust fee. I’ve blogged about this before, but I can’t omit mentioning that there is an annual fee, usually between four and six hundred dollars. Failure to pay can rack up some huge penalties, so don’t forget to plan for it.

Carol Billups is Broker/Owner of Realty Executives Los Cabos in Cabo San Lucas. She loves to put clients in touch with their dream home in Mexico. She is the real estate columnist for Los Cabos Magazine and the Real Estate Coordinator for the Los Cabos Now talk show on Cabo Mil FM, Los Cabos only radio station. You can read more of her articles on www.reloscabos.com or contact her at loscabos@realtyexecutives.com. Her phone from the US or Canada is 1-760-481-7694 or in Cabo at 044-624-147-7541. You can search hundreds of listings in all of Los Cabos by visiting her website www.lovecabo.net

© 2010 Carol S. Billups

Finally! Good News About Mexico

This morning I stumbled on the link to a recent (Dec. 28) news video about Americans getting health care, this time a very good report by PBS. Here is the link to the video:

http://www.pbs.org/newshour/bb/health/july-dec09/mexico_12-28.html

It’s so gratifying to see the US media finally checking their facts, and being positive about Mexico! This broadcast, and another several days earlier on CBS Evening News, are letting the world in on one of the secrets those of us who live in Mexico already knew: you can get excellent health care for very reasonable prices. In most cases the care we get in Mexico is better than we’d receive in the States!

Just as in the Canadian health care system, the larger the city (or the faster it is growing), the more demand on the IMSS system. In these places the wait for non-emergency care may be longer than in a small town. In such cases patients often opt out and go to a private doctor, which is incredibly reasonable. One cardiologist I know charges only 300 pesos (about $23 US) for an office visit. An internist may charge about $50 US for a house call.

Another option is to take out a world-wide major medical policy. My total yearly premium is less than I used to pay for the quarterly co-pay in the States! And it covers me world-wide. The only catch is that it’s only available to ex-pats; they assume you’ll get most of your care where it is more affordable.

Anyone who is considering retiring should consider making the move to Mexico, we’ve got more than wonderful weather!

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine and the real estate co-ordinator for the Los Cabos Now program on CaboMil FM (www.cabomil.com.mx). You can read more of her articles on www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

Search more than 2000 listings on the new www.lovecabo.net

© 2009 Carol S. Billups

Survivor Los Cabos: Banking Without Losing Your Sanity

I’m getting known for blogging about how much I *HATE* Mexican banks. That will go on. But, a girl’s gotta bank, so what’s she to do. Here’s how I bank and maintain sanity, including two banks (one is even in Mexico) I actually love.

The thing is that you’re probably going to want to keep money in the U.S. or Canada and move what you need to live down here periodically. So you’ll need an account up there and one down here (or two, if you want to maintain a peso account and a dollar account).

My life became significantly happier when I met the Charles Schwab bank in the States. I had maintained my account with the bank I’d done business with for years and years in Southern California, but they got crazier and less user friendly every few months. If I needed to transfer funds the Mexican banks decided not to accept paper checks. And wire transfer? For a hefty charge and only if I stopped by the branch… yeah… the one over 1,000 miles away! I had money, I just couldn’t use it. The last straw was when they started charging me to accept wire transfers. So when I got paid here and asked the pay company (see prior blogs) to wire the money to my US account, the bank charged me to accept the deposit! Worse, international law evidently calls for small transfers, so sometimes I was charged multiple ‘acceptance fees’ for a single commission! Enough already!

Then I found the Schwab bank. It’s an on-line bank owned by Charles Schwab investment company. There is a brick-and-mortar office somewhere (I think Reno, Nev) but for all intents and purposes it’s an on-line bank. Deposits are FDIC insured. You get checks, and you can wire transfer without visiting the branch and without paying a fee. And there is no fee to accept a wire transfer deposit. Best of all? There is no charge to use any ATM anywhere in the world. Some US banks charge a fortune to use an ATM here in Cabo, so that’s a real day to day savings. If all that weren’t good enough, they pay interest (sometimes very high interest) on your checking account. And, if you need customer support they have a 24/7 help line staffed with very patient, very intelligent people. Yep, my life improved significantly. I have nothing but great things to say about the Schwab bank and I recommend it to anyone considering expatriate life! FIVE STARS ALL THE WAY!!!!

So now that I solved my US banking problem, what about the duffuces here? I will admit, I was slow to jump on the Bancomer program. A few years ago Bancomer started an initiative to get the Gringo biz. ‘Yeah, right’ was my reaction and I pretty much ignored them. I was wrong. So far (and at several years I think it’s going to stick) they are the only bank in town who seems to want to serve the client, and especially the Gringo client.
In many of the branches they’ve installed a “preferred client” program. This would be someone wonderful like Gina, who is at our branch on the Bordo in Cabo San Lucas. Gina’s job appears to be to help Gringos navigate the Mexican banking system. She helps you set up your account. She helps when the teller doesn’t understand what you want. She explains, sometimes over and over, how to move funds on the internet. She’s got the patience of a saint and that patience is tested daily. The only bad part, and it’s actually a good part, is that Gina gives you a gold card showing you’re a Preferred Customer. This allows you to avoid standing in line. It’s a little awkward walking into the bank where 40 people have been patiently waiting their turn and walking right up to the next available teller. I try to wear a hat and sunglasses so no one will recognize me! Bancomer also has some very interesting investment accounts (like a CD) that I’m eyeing right now.

For anyone looking to retire in Mexico (and that should be everyone, IMHO) these two resources are incredibly valuable. They’ve allowed me to handle our personal banking without going totally bonkers.

Unfortunately, as a business owner, I also need accounts for the business here in Cabo at a bank other than that I use personally. Pray for me……….

Carol Billups is Broker/Owner of Realty Executives Los Cabos in Cabo San Lucas. She loves to put clients in touch with their dream home in Mexico. You can read more of her articles on www.reloscabos.com or contact her at loscabos@realtyexecutives.com. Her phone from the US or Canada is 1-760-481-7694 or in Cabo at 044-624-147-7541. You can search hundreds of listings in all of Los Cabos by visiting her website www.lovecabo.net

© 2009 Carol S. Billups