I always believed in the maxim, “diversify your investments”. So during our working careers my wife and I used to buy real estate, especially south of the border.
When it came time to retire, we chose to live at least half the year on the shores of Lake Chapala, Mexico. Lake Chapala is at almost the same elevation as Denver, Colorado, but rarely gets as cold. There is a brief mild winter, but most houses are neither heated or air conditioned.
Because of the ideal weather and prices which are still less costly than in the United States, this has become a popular retirement community with people from around the world, but especially the USA and Canada. Ex-patriots in Mexico number in the hundreds of thousands.
As the baby boomer generation ages, this and other places like Roatan Island in Honduras, Costa Rica, the coasts of Mexico and, of course, most of the Caribbean will become more popular – and more expensive – with retirees.
These are ideal retirement locations and I don’t mean to discourage anyone from considering them. But don’t check your brain at the border.
Except for Puerto Rico, these are all foreign countries. Not everyone speaks English and things are done differently.
If you are considering a second home and make inquiries, you will swiftly become acquainted with the large realtor populations of these places. Surprisingly they will mostly be very friendly Americans or Canadians, willing to wine and dine you, introduce you to the local ex-pat community and explain the ins and outs of foreign living.
About a year or so ago, International Living ran an article titled: “Not All Sharks Swim Under the Water”. It was about ex-pat realtors and the tales they tell. And this is where the location of your brain becomes critical.
Take everything you’re told with a grain of salt. Hang out in any local pub, and you’ll likely meet disgruntled ex-pats who are disgusted with wherever you are. Also take what they tell you with a grain of salt, but carefully consider both sides of the picture.
When you are on a trip, you are on vacation. Things are all fun and games. You meet new people, party and drink too much. You sightsee and have a great time.
But living in these areas can be a lot different. The phones and electricity may not work all the time. Internet service can be spotty. You might have to pump and purify your drinking water.
There can be disputes with the native population, which you’ll generally lose.
There will be many sharks – generally ex-pats – that will be more than willing to take advantage of your naivet