Tag Archives: Living In Mexico

Using a real estate IRA to acquire property in Mexico

May 7, 2010

By TOM KELLY, INVESTMENT columnist

Using a real estate IRA to acquire property in Mexico

Using a real estate IRA to acquire property in Mexico

Like second-home sales in the U.S., the sales of Mexican homes have been limping along. They are a luxury that buyers have been unwilling to revisit until the economy improves. While anecdotal evidence is beginning to reveal increased activity in some of the more popular resort areas, very few developer projects are thriving because of a lack of bank funding or sales.

“We have some buyers who have returned to look and buy,” says Max Katz, who operates Baja Real Estate Group in Rosarito Beach, about 70 minutes south of the California border. “But it doesn’t help when U.S. television repeats the same shows on crime in Mexico that they were showing 18 months ago.”

Much has been written about the kidnappings, roadside hijackings, crooked cops, and the infamous bandidos in some of the regions of Mexico. Most of the violence south of the border, however, is directly related to the drug cartels and the authorities who are trying to eradicate them. There is absolutely no pattern of any innocent U.S. citizens being randomly murdered in drug violence.

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 the Washington, D.C.-based Center for Economic and Policy Research (CEPR), baby boomers have not saved for retirement and they will be forced to work longer and/or move to less expensive places than they anticipated. Property taxes, health care, and cost of living will force boomers to consider moving to other countries, especially if they plan on living at the same level of comfort as they do now.

John Youden, the Vancouver, British Columbia native who founded a multiple listing association in Puerto Vallarta in 1988 (www.mlsvallarta.com) and also publishes a highly respected real estate magazine, believes developers will have to offer potential buyers a creative proposition to sustain sales.

A Puerto Vallarta-based group headed by a Harvard MBA graduate took Youden’s message to heart. It is seeking buyers/investors looking for a guaranteed rate of return and has found the offering to be an ideal alternative to conventional Individual Retirement Account investments. One hour south of Cancun on the Caribbean Sea’s Riviera Maya, the company is building a condotel adjacent to Madrid-based Bahia Principe Group’s mega resort. Called Sian Ka’an (www.bahiaprincipecondohotel.com), the development is on its own golf course.

The condo hotel is a gated community with 24-hour security, and it has access via a private bridge to the adjacent resort and its pools, spa, restaurants, tennis courts, and boutiques.

Because Bahia Principe needs additional rooms during much of the year, the corporation is guaranteeing an 8% annual return to investors on their rental unit for seven years, even if the unit is not occupied. Personal use by the owner is allowed, yet owners-investors can also enter their unit in the guaranteed rental pool. After that period, owners-investors can renew the contract or take sole possession of their unit.

To prepare for your real estate IRA, designate the amount of your retirement funds that you wish to use in the property deal and open a new IRA account with an independent administrator.

The guidelines covering real estate IRAs are stringent. If you break one of these rules, you could jeopardize your tax-free status on your account.

  • The land or house must be treated like any other investment.
  • All rental profits must be returned to the trustee.
  • You cannot manage the property. But your trustee can hire a third party – a real estate broker, or local manager – to collect rents and maintain or improve the property.
  • The house or property (or proceeds from its sale) must remain in the trust until distribution at retirement. If a trustee is instructed to sell the property, funds can be transferred to another account for reinvestment.

You cannot use IRA money to buy your own residence or any other property in which you live. It has to be investment property. But when you retire, you can direct your IRA to turn it over to you as a distribution at the current market value.

It’s a creative way to get in the door if you are considering an investment purchase.

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Browse for Rosarito Homes for Sale.

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Culinary Tour of Baja, Mexico

April 25, 2010

Lured by spicy quail, tuna ceviche, and Mexico’s best fish tacos, T+L lights out for Ensenada—and from there, things just go south.
From May 2010 By Peter Jon Lindberg

Culinary Tour of Baja, Mexico

Culinary Tour of Baja, Mexico

Ensenada and the nearby Valle de Guadalupe, in northern Baja, are known outside Mexico for three things: the burgeoning local wine scene, which has been hyped ad infinitum; the food, which hasn’t been hyped enough; and the spectacularly bad roads, which everyone warns you about, though you never fully believe them. Really, you think, how bad could they be? And then one night in the gathering dark you take an innocent shortcut across the valley and drive your rented Hyundai into a riverbed. A dry riverbed, but a riverbed all the same. You and your equally baffled companion spend 40 minutes spinning the car’s wheels in what might as well be quicksand, then digging frantically, then panicking, then digging and spinning some more, until finally you resolve to abandon the car and hike the two miles back to the highway—suitcases sinking in gravel, sand filling your socks. And as the coyotes wail in the ink-black hills you decide that you probably should have paid more attention to that part about the roads.

“Ah, the Baja shortcut!” said our innkeeper, Phil Gregory, when, at the conclusion of said ordeal, he collected us and our dusty belongings from the side of Highway 3. “Never a good idea!” Severe rains the previous week, our host explained, had caused the river to flood, washing away a whole chunk of the road we were on. Those tire tracks I’d followed across the sandy riverbed—believing we were still on course—had been left by a backhoe, dispatched to repair the road. No one had bothered to post a sign, let alone erect a fence. “Honestly, this happens all the time,” Gregory said as we rattled down the inn’s rutted dirt driveway. He meant this to be reassuring. “But let’s get you settled, pour you some wine, and we’ll retrieve your car in the morning!”

Gregory’s tone was oddly chipper—maybe this did happen all the time? After showering off the dust, we sampled the inn’s own Tempranillo beside a crackling mesquite fire in the lounge. Not the smoothest specimen, but it worked: two glasses later I gave up worrying about the Hyundai. read more »

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For some East Bay retirees, Mexico an affordable alternative

April 7, 2010

By Kathleen Kirkwood

Brad Billingsley and his Wife

Brad Billingsley and his wife Linda

Brad Billingsley could have been waiting for his tee time at an Arizona golf course.

Instead, the former Lafayette resident and his wife Linda were in a lagoon off Cabo San Lucas, snapping photos of gray whales bobbing next to their small charter boat.

“Every day, it’s an adventure here,” Brad Billingsley said. “It’s added 20 years to my life.”

Brad, 62, and Linda Billingsley, 61, are among the “silver surge” of baby boomers seeking alternative retirement nests in Mexico, according to a recent report by the International Community Foundation.

It’s not certain how many U.S. retirees are living in Mexico — a 2004 study puts it between 500,000 and 600,000 — but the foundation and other researchers say the number is bound to increase as more boomers settle into their golden years and find Mexico an affordable alternative. Almost half the retirees living in coastal areas are getting by comfortably on less than $1,000 per month, said the report, which cites the growth of real estate projects targeted at retirees as proof that expatriates are flocking south of the border.

The Billingsleys had seriously considered a retirement community with a golf course in central Arizona. But they lacked the enthusiasm for fairway living that seemed to consume retirees there. “Their entire lives were involved with golf,” Brad Billingsley said.

In 2007, the couple became expatriates and settled into a $300,000, two-bedroom beachfront condominium in Rosarito Beach, in Baja California.

They’ve made the most out of their retirement dollars, Brad Billingsley said. The cost of living — from groceries to health care — is low in their beachfront town and there’s plenty to do, such as driving down the coast to Cabo, walking on the beach and shopping at the local mercado. read more »

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Lindsay Lohan needs a Mexican Vacation away from the media and the paparazzi!

April 1, 2010

Sandy Beach at Palacio Del Mar

Sandy Beach at Palacio Del Mar

Lindsay Lohan and other famous starts such as Britney Spears have often looked south of the border to take advantage of a US resort style beachfront community with luxurious ocean front villas for relaxation and to take breather from the US Media and the paparazzi frenzy.

At Palacio Del Mar, Baja’s newest luxury condos and spa, Lindsay could take advantage of one many Palacio Del Mar  amenities: Palacio’s private shuttle service, picking her up at the airport or a private location of her choice and riding just 45 minutes away south to Ensenada. She could have her own pool or Jacuzzi in one of Palacios 2800ft² 3 bedroom Condos or a private tour of the Guadalupe Valley, the largest wine region in northern Mexico, where she can sample award wining wines and food. Lindsay could also have a gourmet meal at Ensenada’s famous Restaurant Ofelia’s. read more »

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A Day at Palacio Del Mar

March 1, 2010
Palacio Del Mar

Palacio Del Mar

Imagine yourself swimming in an ocean front infinity pool by the Pacific Ocean. Now imagine yourself in the Jacuzzi ordering Margaritas for you and your neighbor to watch the sunset. Your day started out with a short aerobics class in the indoor lap pool, a smoothie from the Juice bar after wards. You go through your mail in the liberty, just before the group gets together to watch a movie in the Movie Theater. Imagine you can live this life everyday in Palacio Del Mar, Northern Baja’s first Luxury Condo and Spa Development, with the first 25000ft². ocean front club house on the coast. read more »

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What do I need to know when crossing the San Diego – Tijuana border? By Miguel Sedano.

January 21, 2010

What do I have to do when crossing the border?

Select carefully the lane to enter the country:
•    Nothing to Declare Lane
It is used when your exemptions do not exceed the permitted limits
•    Self-declaration Lane
It is used when you bring goods worth more than the personal or family exemptions, or when the amounts of goods exceed those amounts allowed in your personal luggage
Upon crossing the border, your vehicle will activate the Automated Selection Mechanism (stop light). When crossing the border on foot you will be asked to activate the mechanism:
o    The red light indicates that your luggage will be inspected
o    The green light indicates that you can drive through the Customs facilities without inspection
If you or your vehicle has been selected for inspection, a Customs Inspector will conduct the examination. If the Customs Inspector finds goods that should have been declared and you did not do it, the Inspector will classify and appraise the goods and will impose the corresponding sanctions.

If you mistakenly choose the wrong lane, you may approach a Customs Inspector and ask for a classification and appraisal of your goods for the corresponding payment of duties and taxes.

Customs Inspection

In some cases the customs Automated Selection System (stoplight) may determine, without human intervention that your belongings will be subject to customs inspection.

This is a simple procedure. We would appreciate your cooperation in order to make it an agile one too. Please follow our customs personnel instructions. They must treat you with courtesy and respect while they ask you to open your luggage and proceed with its inspection. Also, they must handle your belongings with care. Remember that all persons entering Mexico are obliged to comply with Mexico’s customs provisions.

What can I bring in duty free?

•    The items allowed in your personal luggage, according to the length of your trip
•    Up to 75 USD per person in permitted goods, or its equivalent in other currencies. Passengers traveling with family members (spouse and children) may combine their personal exemptions only when arriving together on the same vehicle. In order to claim this additional exemption, passengers must have the corresponding commercial invoices or receipts available
•    Beer, alcoholic beverages, manufactured tobacco and motor vehicle fuel (except for the fuel contained in the vehicle’s fuel tank) may not be included in this additional exemption

Which items may be included in my personal luggage exempt from duty?

1.    Goods for personal use, such as clothing, footwear and personal toiletries and beauty products, as long as they are appropriate for the duration of the trip, including wedding party items.
2.    Two photographic cameras or video recorders, 12 rolls of film or videocassettes; photographic material; two cellular telephones or radio phones; a portatil typewriter; an electronic calendar; a portable computer (laptop), notebook, omnibook or similar items; a copier or portable printer; a portable projector, and their accessories.
3.    Two sports equipment, four rods, three speedboats with or without sails and their accessories, trophies or recognitions, provided that they can be transported normally and commonly by the passenger, one stair climber and bicycle
4.    A portable radio for the recording or reproduction of sound or mixed tapes; or a digital sound reproducer or portable reproducer of compact discs and a portable reproducer of DVD’s, such as a pair of portable speakers, and their accessories.
5.    Five laser disks, 10 DVD disks, 30 compact disks (CD) or magnetic tapes (audiocassettes), for the reproduction of sound and five storage devices or memory cards for any electronic equipment.
6.    Books, magazines and printed documents.
7.    Five toys, —included those that are collectible— and a video game console and videogames.
8.    One device that permits measurement of arterial pressure and one for glucose, as well as medications of personal use; in the case of psychotropic’s the medical prescription should be shown.
9.    One set of binoculars and a telescope.
10.    Valises, trunks and suitcases necessary for the movement of goods.
11.    Passengers over 18 years of age, may introduce a maximum of up to 20 packs of cigarettes, 25 cigars or 200 grams of tobacco and up to three liters of alcoholic beverages, and six liters of wine; in excess of the above, cannot be imported without complying with applicable regulations and restrictions.
12.    Baby travel accessories, such as strollers and baby-walkers
13.    Two musical instruments and its accessories.
14.    A camping tent and camping equipment, as well as their accessories.
15.    Handicapped or old travelers may introduce items for personal use, useful to have a better performance of their activities, such as walkers, wheelchairs, crutches and canes.
16.    A set of tools including its case, it might have a hand drill, wire cutters, wrenches, dices, screwdrivers, current cables, among others.
17.    Beddings, that will be able to include a set of matching sheets and pillowcases, a set of towels, a set of bath, a set of table linen and a set of kitchen.
18.    Up to two dogs or cats, maybe introduced as well as their accessories, provided that the corresponding zoo sanitary import certificate issued by (SAGARPA) is presented to the customs officials.

In which cases should I pay taxes?

•    Remember that you are entitled to bring in up to US$300 worth of goods in addition to the goods included in your personal luggage, and that you are allowed to combine this amount with family members
•    If you exceed this exemption, or if your family’s combined amount exceeds the combined exemption, you must pay duties and taxes. There is a flat 15% rate of duties and taxes, which is applied only to the amount exceeding the exemption (individual or combined). You must fill out a payment form, which is available at the Customs counter
•    If the value of the goods surpasses three thousand dollars (per family member) after subtracting the US$300 exemption, or if any of the goods is subject to non-tariff regulations or restrictions, you must hire the services of a customs broker. Private brokerage services are always available at the airport
•    From November 1st, 2009 until January 10th, 2010 you will be able to import goods in the mentioned procedure, as long as its value does not exceed 3,000 dollars
•    If you bring a desktop computer, you may pay duties and taxes by filling out a payment form as long as the value of the computer and its peripherals and accessories do not exceed US$4,000. If the total value of the computer and its peripherals and accessories exceeds US$4,000 you must hire the services of a customs broker

Which other items must be declared?

•    Animals, agricultural products and medications
•    If you are carrying more than US$10,000, or its equivalent in other currencies, in cash, checks, money orders or any other monetary instrument, or a combination of them, you must declare the amount exceeding US$10,000. You will not have to pay duties or taxes, but you must declare it on the Customs Declaration form. Failing to declare it is a violation of Mexican Law and such violation is sanctioned with administrative and even criminal penalties

Which goods are restricted?

•    Firearms and ammunition. In order to import firearms and cartridges you must secure an import permit from the Ministry of Economy and from the Ministry of National Defense.

For further information please visit the following websites: www.economia.gob.mx  and www.sedena.gob.mx.

Which goods are prohibited?

In accordance with the Law of the General Taxes of Import and Export, the following products are prohibited for the import and/or export:
•    Alive predator fish, in their states of young fish, youthful and adult
•    Totoaba, fresh or cooled (fish)
•    Frozen Totoaba (fish)
•    Turtle eggs or any class
•    Poppy seeds (Narcotic)
•    Flour of poppy seeds (Narcotic)
•    Seeds and spores of marijuana (Cannabis indica), even though when they are mixed with other seeds
•    Marijuana (Cannabis indica)
•    Juice and extracts of opium, prepared to smoke
•    Extracts and juice derived from marijuana (Cannabis indica)
•    Mucilage and condensed products derived from the marijuana (Cannabis indica)
•    Stamps or printed transfers in colors or in black and white, displayed for their sale in envelopes or packages, even when they include chewing gum, candies or any other type of articles, containing drawings, figures or illustrations that represent childhood in a degrading or ridiculous way, on attitudes of incitement to violence, to self-destruction or in any other form of antisocial behavior, known like Garbage Pail Kids, for example, printed by any company or commercial denomination.
•    Thallium sulfate
•    Insecticide (Isodrin or Aldrin)
•    Insecticide (Heptaclor or Drinox)
•    Insecticide (Endrin or Mendrin or Nendrin or Hexadrin)
•    Insecticide (Leptophos)
•    Heroin, base or hydrochloride of diacetylmorphine
•    Medication prepared with marijuana (Cannabis indica)
•    Medication prepared with acetylmorphine or of its salts or derivatives
•    Skins of turtle or doggerhead turtle
•    Goods that have been declared as archaeological monuments by the Secretariat of Public Education

For effects of the Customs Law, the import or export of prohibited merchandises is causal so that the customs authorities come to a precautionary detrain from said merchandises and the means of transport. Likewise, it constitutes an infraction related to the import or exports of this type of merchandise and is sanctioned with a fine: Therefore, these merchandises happen to be property of the Federal State, regardless of the penal sanctions establishes by the Penal Code.

If all this information seems to complicated for you, at Palacio del Mar only 35 minutes south of the border you will have a 24/7 concierge service that will be more than happy to assist you with any small or big request.

If you want to discover the only truly concierge service in the Rosarito area, as well as all the amenities of a 5 star resort, just call Miguel Sedano (619-200-7408) or email (Miguel.sedano@bajarealestategroup.net) for a private tour of Palacio del Mar Condos & Spa.

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Why retirees are fleeing the US

November 23, 2009

A move to another country may make economic sense, especially for seniors who don’t have enough savings to live in retirement without a dramatic cut in lifestyle.

By Scott Burns

A move to another country may make economic sense

A move to another country may make economic sense

Several years ago a Dallas couple approaching retirement disappeared. Well-known on the charitable-event circuit, the couple were in Dallas one day and gone the next. Phone disconnected. No forwarding address. No working cell-phone number.

Eventually, word spread that they were somewhere in Mexico. They had sold whatever they owned, packed their car and headed for the border. They were, conflicting reports said, living in small towns, the kind of places seldom featured in travel magazines.

We can only speculate on what happened. I think they were broke, had little or nothing in savings and knew they had to make a major change to survive on their Social Security income and minimal savings. Like millions of other Americans, their ship never came in. They got older. Work became harder to find. Suddenly, they realized their life was entirely unsustainable. They were heading toward a cliff. read more »

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Finally Some Good News on Travel in Mexico

October 16, 2009

Drug cartels. Murders. The news is often bad out of Mexico. Peter Ferry journeys beyond the headlines.

Finally Some Good News on Travel in Mexico

Finally Some Good News on Travel in Mexico

Poor old Mexico. Talk about kicking a guy when he’s down! Just when the price of oil plummets, American jobs dry up, and the fear of drug violence cuts tourism in half, along comes swine flu to cut it in half again.

OK, it’s time for a little good news. In May, the U.S. Centers for Disease Control lifted its recommendation against travel to Mexico; the swine flu isn’t so bad after all, and it probably didn’t come here from Mexico in the first place.

And now a little more good news. Drug violence is not a threat to ordinary tourists like you and me. This is according to the Mexican government, the U.S. State Department and me. Let me give you a little background.

I had driven to, in and around Mexico with impunity and pleasure, but that was years ago. Now I was planning two road trips, one from the border to central Mexico, another from Mexico City to Cuernavaca to Oaxaca and back, and my friends were alarmed.

“What about the drug war?” read more »

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Where Americans Visit Most – Forbes – The top 20 foreign destinations of U.S. travelers

October 15, 2009

By Rob Baedeker – originally posted on forbestraveler.com

Where Americans Visit Most - Forbes - The top 20 foreign destinations of U.S. travelers

Where Americans Visit Most - Forbes - The top 20 foreign destinations of U.S. travelers

In a year when economic indicators took Grand Canyon-sized plunges, it should come as no surprise that fewer Americans jetted off to foreign lands than they did the previous year.

What may be surprising is that the decline in U.S. outbound travel wasn’t worse: Overall, according to the U.S. Department of Commerce’s Office of Travel and Tourism Industries (OTTI), American travelers to foreign countries totaled 63.6 million in 2008, the last full year statistics are available, just a one percent decrease compared to 2007.

Whether the downward trend will continue throughout 2009 remains to be seen, but indicators are pointing towards further decreases. OTTI’s data through May of this year show an overall 7.7% decrease compared with the same time frame in 2008. Akashi says Japan is “expecting just a flat line of the number of U.S. travelers this year,” and Fitch says Mexico had “a slight reduction of international visitors (1.9 percent) from January to May 2009.”

However, the ranking of overseas destinations is likely to be unchanged. read more »

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Bring Your Medicare to Mexico

October 13, 2009

Bring Your Medicare to Mexico

Bring Your Medicare to Mexico

Suzan Haskins
Latin America Editor, International Living
International Living Postcards—your daily escape

Which foreign country will be the first in which Americans can use Medicare and Medicaid benefits?

Mexico, of course.

It just makes sense. Mexico is right next door to the largest market of health care consumers in the world. Some health services in Mexico can cost 12 times less than what is charged in the U.S., experts say.

It’s no wonder that Americans (and yes, Canadians, too) cross the Mexican border in frequently increasing numbers to avail of the high-quality but low-cost health care Mexico provides, including reduced cost prescriptions.

Already, the four largest commercial U.S. health insurers—with enrollments totaling nearly 100 million people—have either launched pilot programs exploring or offering overseas travel to countries like Mexico for health services. Some smaller health insurers and brokers also have introduced travel options for hundreds of employers around the country. read more »

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