Mexican Beach Developers

Mike and Jan were both born in 1946, making them among the oldest of the Baby Boomer generation, the 76 million Americans who were born during the years 1946-1964. They will be ready to retire in 2 years if they opt for retirement at age 62, 5 years if they wait till 65.

Like many Baby Boomers, Mike and Jan delayed starting their family until they were over 30. Their daughter Linda is now 29 and their son Todd is 25. Linda is married and lives in another state. Todd lived at home while he was going to graduate school and has just moved out, so Mike and Jan are now Empty Nesters. Their house is too big for just the two of them, and their yard requires a lot of maintenance, so they would like to move to a smaller home that requires less upkeep.

The problem is that Mike and Jan refinanced their house several times to pay for repairs, vacations, college tuition, and Linda's wedding, so they have a large loan on it and are making substantial payments. Buying a smaller house in today's market would probably cost them as much as they are now paying, so while it would require less work to take care of, it wouldn't save them any money. Like most other American families, they have very little money saved for their retirement, and the benefits they expect to receive from their jobs and Social Security will add up to only about half of what their take-home pay is at the moment. So they look forward to retirement with mixed feelings. They like the idea of having more leisure time to take up new activities or just to be themselves, but they worry that they won't be able to afford to live comfortably, that any major health problem will precipitate a financial crisis.

Mike and Jan are among an estimated 90,000 retirees or soon-to-be-retirees from the U.S. and Canada who may be considering retirement in Mexico, joining the 20,000 Americans and Canadians who are already permanent residents. What are some of the reasons for making such a move?

The Beach

Water has always fascinated humans. Living on or near a beach is a major attraction, and people who don't have that good fortune often find a way to take beach vacations. For example, Puerto Peñasco, Sonora (AKA Rocky Point) is the nearest beach community to two major Arizona cities, Tucson and Phoenix, and Arizonans have been vacationing there for many years. Some have also decided to live there permanently. Until recently it was possible to buy or build a high-end house for a fraction of what it would cost in the States. Now, however, condos are blossoming like giant sunflowers on the skyline, and prices are rising along with the buildings. Costs for new homes and condos in vacation areas are rapidly approaching U.S. levels, making them affordable to fewer people.

The good news is that more beachfront property is becoming available. A new coastal highway is under construction from Guaymas in southern Sonora up to El Golfo Santa Clara at the northwestern tip of the state. A section north of Puerto Peñasco is already finished, and the highway is expected to be completed as far as El Golfo by the end of 2006, and as far as Guaymas by 2007. As it is built, more desirable property will become accessible and available for purchase. There are an estimated 385 miles of beachfront ready to be developed.

The Lifestyle

Mexico has an attractive lifestyle, much more laid back than most Americans and Canadians are used to. This makes it desirable to retirees, most of whom have been on a fast track all their working lives--pursuing careers, raising families, making payments, taking care of their homes, putting their children through college, buying expensive toys and mortgaging their real estate to pay for them. To Americans, time is money. They gain time, waste time, buy time, spend time, lose time--all the metaphors are financial. Mexicans think of time as free. There's always more of it. This attitude can be incredibly relaxing to retirees or vacationers. According to one real estate broker from Tucson, when he crosses the border into Mexico, all his worries drop away, and when he gets close enough to smell the salt water, he feels that his physical ailments have miraculously left him as well. Mexicans use the phrase "poco a poco," little by little. They aren't concerned to get everything done TODAY. If it doesn't get done, there's always "mañana"--tomorrow.

To Mexicans, relationships are important, more important than business success. They are incredibly polite, welcoming, and generous to foreigners, so most of us feel at home right away. And Mexicans are wonderful party people. Any excuse for a party will do, and everyone gets caught up in the spirit of celebration. It's great fun. No wonder all us uptight norteamericanos love being in Mexico.

Economy

Although beachfront condos may be unaffordable for most retirees, there are still plenty of small homes and lots that can be purchased for far less than their counterparts in the U.S. And money goes farther in Mexico, most goods and services costing less than retirees would have to pay at home. With all the new properties opening up, there are sure to be bargains for astute shoppers. A caveat, however. When purchasing Mexican property, buyers should be sure to do their due diligence. Laws and procedures are different in Mexico, and many foreigners have gotten into big trouble--trouble that could have been avoided by being careful and dealing with reputable professionals.

Safety

Ever since 9/11, U.S. citizens have lived with the possibility of another such attack. Especially those who live in major metropolitan areas (most of us) or near military bases have felt threatened. Politically Mexico is no doubt safer than the U.S. since it is not perceived as a major player in the world arena. Personal safety is also a consideration. To those concerned about the crime rate in American cities, living in a small community may be very appealing. Rapes, murders, and other violent crimes are extremely rare; the worst crime in Puerto Peñasco is probably petty theft.

The Culture

Many retirees find the thought of doing something different exciting. They can experience another culture and learn another language without moving very far. Mexico is a land rich in historic buildings and artifacts, as well as spectacular natural beauty. Many trips and tours are available for those who don't want to travel on their own. For the more intrepid, there are hundreds of areas to explore. This is a great way to learn geography and history. For those who enjoy social pleasures, Mexico also has many beach resorts--Cancun, Mazatlan, Acapulco, Los Cabos, to name only a few. Shopping is another favorite pastime. It's possible to buy many beautiful distinctly Mexican items for very reasonable prices--hand painted plates, tile, leather goods, serapes, figurines, embroidered clothing, metal sculpture, paintings, wood carvings, handblown glassware, tableware--the list goes on and on. Again, resort areas can be expected to have higher prices than the rest of the country.

Learning another language is rewarding and fun. Many retirees who may have taken Spanish in high school will have a chance to brush up on it and use it. Others may have to start from scratch, although any background in Latin, French, or Italian will help. Classes are offered in many places, and Mexicans are incredibly patient and helpful with those of us who are struggling to learn their language. Retirees are the perfect students. They have enough time to learn and enough experience of language and life to be able to learn rapidly. It doesn't matter if they don't become fluent. There's a great feeling of accomplishment that comes with mastering enough Spanish to be able to order a meal in a restaurant or buy items in a shop. And being able to carry on a conversation with Mexicans about their families or their jobs is extremely gratifying. Besides, Mexicans take it as a mark of respect when gringos use their language, no matter how imperfectly. As guests in a foreign country, it would seem that that's the least we can do to show our appreciation.

Investment

With the coastline opening up and the multitude of norteamericanos coming to Mexico, prices are going nowhere but up. It may be possible to buy property now for a modest amount and hang onto it for appreciation. Not only will buyers build a legacy for their families, but families will be attracted to the Mexican property and will visit Grandma and Grandpa to enjoy it right now. After all, everyone loves to go to the beach. For those who have ample means, there are many possibilities for investment--undeveloped land, city lots, vacation homes, condos, fixups, commercial property, fractional ownership. The real estate industry in Mexico is increasingly stable and efficient, financing is more available, and smooth transactions are possible with professional agents.

For all these reasons, it makes sense to consider Mexico as a retirement destination.