Don't Check Your Brain at the Border

I always believed in the maxim, "diversify yourThere will be many sharks - generally ex-pats - that
investments". So during our working careers my wifewill be more than willing to take advantage of your
and I used to buy real estate, especially south of thenaiveté.
border.So some advice:
When it came time to retire, we chose to live at least1. Don't believe everything you are told. Check
half the year on the shores of Lake Chapala, Mexico.everything out with as many different sources as you
Lake Chapala is at almost the same elevation ascan. And if it sounds too good to be true, it probably
Denver, Colorado, but rarely gets as cold. There is aisn't.
brief mild winter, but most houses are neither heated2. Remember you are a guest in a foreign land. Don't
or air conditioned.act like a spoiled brat. The cultural gap can be huge.
Because of the ideal weather and prices which are stillAnd even if a local resident speaks English, there are
less costly than in the United States, this has becomeoften misunderstandings due to that cultural gap.
a popular retirement community with people from3. Don't invest your money with some friendly bloke
around the world, but especially the USA and Canada.you meet in a local pub, no matter what return he
Ex-patriots in Mexico number in the hundreds ofguarantees. As a matter of fact, keep your money in
thousands.the states or Canada, safely tucked away in a
As the baby boomer generation ages, this and otherreputable bank or brokerage firm. If you want to keep
places like Roatan Island in Honduras, Costa Rica, thesome local currency on hand, open an account at a
coasts of Mexico and, of course, most of thereal bank. Keep the same accountant that you had in
Caribbean will become more popular - and morethe states or Canada.
expensive - with retirees.4. The laws are different. In many countries a Notary
These are ideal retirement locations and I don't meanwill handle both sides of a real estate transaction. But
to discourage anyone from considering them. But don'tyou still have the right to hire your own lawyer,
check your brain at the border.interpreter and building inspector and surveyor. You
Except for Puerto Rico, these are all foreign countries.would be shocked to learn how many people don't - I
Not everyone speaks English and things are doneknow I didn't. And in many countries, lawyer-client
differently.confidentiality and conflict of interest are unheard of.
If you are considering a second home and make5. While most of the native population will be respectful
inquiries, you will swiftly become acquainted with theof you if you return the favor, you will be a target of
large realtor populations of these places. Surprisinglylocal thieves. Crime will probably be lower than
they will mostly be very friendly Americans orwherever it is you're coming from, but it exists -
Canadians, willing to wine and dine you, introduce youespecially house break-ins and auto theft. You might
to the local ex-pat community and explain the ins andalso find yourself resented by the more well-to-do local
outs of foreign living.population. It might be hard to make friends with them.
About a year or so ago, International Living ran an6. Try to learn the local language and customs. Don't
article titled: "Not All Sharks Swim Under the Water". Ittry to impose your values and watch where you try to
was about ex-pat realtors and the tales they tell. Andbutt in.
this is where the location of your brain becomes critical.7. In many places, the only thing you will have in
Take everything you're told with a grain of salt. Hangcommon with other ex-pats is the language. So be
out in any local pub, and you'll likely meet disgruntledsure you choose a locale with a sufficient ex-pat
ex-pats who are disgusted with wherever you are.community so you can create friendships. For the
Also take what they tell you with a grain of salt, butmost part there will be many warm, welcoming people
carefully consider both sides of the picture.willing to include you in their social circle.
When you are on a trip, you are on vacation. Things8. Be prepared to deal with poverty, people living in
are all fun and games. You meet new people, partyappalling conditions, child labor and more. There will be
and drink too much. You sightsee and have a greatmany groups to help, but there never seems to be
time.enough to put even a small dent in the problem. Some
But living in these areas can be a lot different. Theof the problems are due to the local culture and there
phones and electricity may not work all the time.is nothing you can do about them.
Internet service can be spotty. You might have toThere is no such place as paradise, at least not in
pump and purify your drinking water.Mexico, South America or the Caribbean. You can live
There can be disputes with the native population,a very nice life style, but nothing is perfect.
which you'll generally lose.