By Patrick Connelly

With seemingly unlimited picturesque landscapes to work with – from cacti-strewn deserts to sandy beaches – the world’s most renowned golf course designers have made Mexico a playground for fans of the gentleman’s game.  Whether you think you are the successor to Tiger Woods or only use that $400 driver a dozen times a year, Mexico has stunning, challenging courses throughout the country.

Just as in the U.S., there are both private and public courses, with the former sometimes being extremely exclusive.  So if you aren’t willing to dish out half a million dollars on a resort condo to gain access to the links, public courses are the way to go.  But these are no coach-cabin second class fairways; conversely, Mexico has several top-notch public courses at decent values.

1. Cabo del Sol Golf (Ocean and Desert courses)

10% of every green fee goes to putting cool logos on golf balls

Located close to Cabo San Lucas, the Cabo del Sol courses are two of Mexico’s signature public masterpieces.  The ocean course, an 18-hole, 7,103 yard work of art borders the Sea of Cortez and has been named as one of the top 100 courses in the world. Designed by the famed Jack Nicholas, it has been the host of several Senior PGA tour events and ProAms in its 15 year history.  The course has also been described as the “Pebble Beach of Mexico”, albeit by Nicholas himself.  Regardless of the designer’s self-aggrandizing, the ocean course is a true joy to play and continually receives high marks in Golf Magazine and Golf Digest. The clubhouse itself worth the trip; a 40,000 ft. haven inspired by local architecture offers fine dining, stocked golf store, and much more.  With quality comes costs, however; prices range from $125 to $350 depending on the tee time and the month. http://www.cabodelsol.com/content/golf_ocean.html

The desert course, on the other hand, is dominated by sand, rock, and cacti (imagine that).  Designed by Tom Weiskopf, this 18-hole course rolls through 7,100 yards of intimidating elevation shifts and difficult bunkers.  While it may often be overshadowed by its older and more illustrious brother, the desert course has been ranked as high as #6 in Mexico by Golf Digest. Like its brethren, the course’s clubhouse is based on classic Mexican architecture and offers all the glossy amenities to make a visit memorable.  A round of golf among the dunes will run you anywhere between $85 and $220. http://www.cabodelsol.com/content/golf_desert.html

2. El Tamarindo (Jalisco)

Learning the Spanish word for mulligan will help at Tamarindo

The best golf courses connect the sport with the natural beauty, creating a synthesis that puts the golfer into another environment.  The Tamarindo golf course, set amidst a 2,000 acre nature preserve, is a great example of this technique.  Plus its a damn fine course, 6,750 yards bordering the rugged Pacific coastline and fringed by tall palms.  Located in Jalisco, about 130 miles from Puerto Vallarta, Tamarindo has been ranked as high as #2 in Mexico and is perfect for amateurs and seasoned pros alike. http://www.eltamarindoresort.com/en/index.shtml

3. Palmilla Golf Club, Cabo

Another one of Jack Nicholas’ creations, Palmilla is unique because of it offers 27 holes in three mini-courses.  The Arroyo (stream) Nine, the Ocean Nine, and the Mountain Nine are all pretty much self explanatory in what the terrain is like.  Much like its neighboring courses in Cabo del Sol, elevations shifts are the golfer’s main enemy.  At 6,369 yards, the course is a difficult challenge, but with several sets of tees to play from, all levels of skill are accommodated.  Palmilla routinely gets high accolades yet is less expensive than many comparable courses in Mexico; fees range from $60 to $220 per round of 27 holes. http://www.palmillagc.com/index.html

4. El Cameléon Golf Course ( Quintana Roo)

On the other side of the country in the heart of the Yucatan is the impressive El Cameléon course.  A 7,000 yard Greg Norman creation, this course does an impeccable job combining the man-made with the natural.  Its promoters note that the 18 holes wind through three different environments: mangrove forests, beaches, and hills.  The Mayakoba Resort, which houses this stunning course, is a mere 30 minutes from the Cancun airport, yet seems a million miles away from civilization. http://www.mayakoba.com/index.html

5. VistaVallarta (both courses) – Puerto Vallarta

Foliage is slightly different than your neighborhood course in Ohio

Mexico’s two seminal course designers, Nicholas and Tom Wieskopf, team up at the Vista Vallarta resort to create a double offering of sweet courses.  The Nicholas course is a 7,000 yard par 72 built on high elevation, providing golfers with incredible views of Puerto Vallarta below.  Wieskopf’s creation is an exercise in extremes; he brilliantly uses the area’s unique characteristics offer an immensely challenging 18 holes.  Rates vary between $130 and $195. http://www.vistavallartagolf.com/

cover photo provided by tdwhite63 at http://www.flickr.com/photos/toms-pics/106817290/

first photo provided by happygirljen at http://www.flickr.com/photos/happygirljen/727793153/

second photo provided by Jessica New at http://www.flickr.com/photos/jessicanew/493938122/

third photo provided by stelter13 at http://www.flickr.com/photos/11383359@N03/2226482896/

If you are staying for a short trip you might want go for a vacation rental in Mexico or if you are looking for an extended stay you can see all types of Mexico real estate here.

By Patrick Connelly

It is, ultimately, the point where the process of living in Mexico diverges into two distinct paths.  The question of whether to rent or to buy – to purchase that clifftop villa on the Pacific or just rent a nice place in the nearby town – plagues many a prospective buyer in the U.S. and Canada.  The decision has more variables in it than a college calculus class, but here are a few things to take into consideration if you are having the same quandary.

1. Renting keeps your options open

If you are like me and have a total fear of commitment (relationships, locations, etc. etc.) then renting is perfect for you.  Well, that and if you are just not totally sure on living abroad for long periods of time or permanently, or don’t fancy investing money in a property in another country.  Renting can be a great option for the certain type of person, especially those new to Mexico.  Buying or building a house ties you down to that property.  Renting does not.  Simple as that.  If you find out that you hate Mexico and want nothing more than to stay in the U.S., it is much easier to cancel or see out a lease than it is to sell a home.  And if you want to travel around Mexico or Latin America for an extended period of time, it is usually easy to sublet your rented property to recoup some of the losses.

2. Buying a house is an investment

While the global recession has driven down home prices in Mexico in recent months, owning a home south of the border is still a great long term investment.  The Mexican economy hasn’t been hit as hard as the U.S. has and the situation north of the border will recover in time.  In fact, many real estate professionals are predicting a strong buyer’s market in the coming months in hotspots like Puerto Vallarta and Cancun.  With a bit of shrewd cunning great deals can be found these days and when the markets bounce back – and they will – owning a property in Mexico suddenly becomes a very, very valuable commodity.

3. There is far less of a financial investment when renting

Well, duh.  Financially speaking, it is definitely the “safer” of the two options.  While you certainly get more bang for your buck in Mexico than you do in the U.S., buying a home is still a major financial investment.

4. YOU own the house and deal with no one else

Anyone that has dealt with landlords knows it can be a real headache.  Its no different in Mexico.  The fact that you do not own your rental property and have to answer to a higher up may lead to squabbles over anything from redecorating to rent to leases.  Choosing a good rental management company can prevent conflict if you want to rent.

On the other hand, when you own a house, you decide what goes in it, what additions will be put on, etc. etc.  You are your landlord.

5. More choices when buying

Odds are, you will find a property for sale in Mexico that matches your desires before a rental.  There are just more options out there to choose from. Rentals are only ultra popular in certain areas frequented by vacationing tourists, while good homes for sale exist everywhere.

The choice ultimately comes down to you.  Owning a home in Mexico can be the experience of a lifetime, but it isn’t for everyone.  My advice would be to rent a house for a few months in your desired location….get to know the culture, climate, and lifestyle.  If you fall in love with it, jump in.  If you hate it, simply back out or try a different region of Mexico.  This is by far the smartest approach to take – many a gringo have made impulse buys after a two week vacation in Cancun or Cabos and ended up with a house they later realize they don’t want.

photo provided by Ze Eduardo at http://www.flickr.com/photos/97968921@N00/756377225/

This one’s for you guys. Which is better, the inland haven or the Caribbean getaway? We want to hear from everyone…tourists that have visited as well as expats and retirees currently living there. Voice your opinion below.

photo provided by cocolimemonkey at http://www.flickr.com/photos/locachica/2926141774/

As the H1N1 Swine Flu enters its second full week of being the world’s #1 news story, Mexico – ground zero of the whole mess – continues to be hit the hardest.  Mexico City is still in full lockdown mode in an attempt to contain the virus, with nearly all commerce stopped.  Despite not reporting large numbers of H1N1 cases, the tourist and epxat hotspots on Mexico’s coastlines are reporting incredible losses as gringos stay away: Rodrigo de la Peña, Cancun’s hotel association president, says that reservations are down 30% and still dropping quickly.  Here’s a rundown of how Mexico’s top destinations are being affected.

Acapulco

99.9% of the time its good to be the favorite beach destination for a city of 25 million, but alas the coastal resort town is experienceing that .1% right now.  As wealthy residents of the capital enjoy a mini vacation, and with much of Mexico City closed, many are flocking to ‘Pulco for some fun and sun….but in the eyes of the town’s residents, they are potentially bringing the dreaded flu along with the sunscreen and beach towels.  And they aren’t happy: Police report that as many as four cars with Mexico City plates have been stoned by Acapulco residents as they entered the town. So much for a warm welcome…

Despite Covadonga Gomez, the town’s hotel and tourism cheif, publicly pleading with capital city residents to stay away from Acapulco, a steady stream of vacationers made the five hour trip from Mexico City last weekend.  And while Apaculco officials reiterated the fact that every restaurant, bar, and disco were closed, many establishments deemed the almighty dollar, er, peso, was too much to ignore.  High profile places like Señor Frog’s and Sibu were open for business and reportedly quite crowded.

Cancun

It’s without surprise that Cancun, which relies so heavily on foreign tourists and expats, is getting economically kicked all over the place by the flu outbreak.  As soon as news of the flu began, most cruise lines cancelled their stops in Cancun and the rest of the Maya Riviera, taking away the lucrative invasions of cruisegoers.  Hotels are reported to be half empty with cancellations coming in every hour and outbound flights are jam packed with tourists trying to flee.  Additionally, many European and U.S. airlines have cancelled or cut back the number of flights to Cancun since the confirmation that several New York students have the H1N1 virus and also just returned from the resort town (no official link between the two has been found, however).

Mónica Roberts, operations chief for Real Resorts in Cancun, reports only 20% of the rooms are full at a time when 80-90% should be, according to the Washington Post.

Following local leaders’ insistence that not one case of H1N1 has been confirmed in Cancun or the state of Quintana Roo, tourists and expats in the area report that there seems to be a hush-hush attitude held by hotel staff, restaurant waiters, and just about everyone else with vested interest in the tourist industry.  Without foreigners, Cancun will suffer terribly, and for now it seems like it is just doing enough to keep its head above water…

San Miguel Allende

San MA, and the state of Guanajuato in whole, has not confirmed one case of H1N1 and the population is reported to be quite healthy.  Despite this, fear and panic have taken over many of the citizens of this popular expat and retiree destination.  Like Mexico City, many of the public sectors have shut down and, unlike in the coastal resort towns, green facemasks have become the new fashion craze.  As with the rest of the country, schools are closed for the foreseeable future, but for the time being there is no H1N1 in the area.

Cabo San Lucas and the Baja Peninsula

The expat and tourist mega-destination that is the southern Baja Peninsula, including Cabo San Lucas, has been confirmed “Swine flu free” by the Mexican government, however, this did not stop Rosarito officials from cancelling Cinco de Mayo celebrations or several cruise line operators to cancel stops in Baja.  Tourist numbers are reported to be slightly down in the last week, but again, there have been no confirmed cases.

Have more information about the H1N1 flu in Mexico? Are you an expat, retiree, or tourist somewhere in this great country?  We want to hear your story!  Let us know whats going on in your community.

photo provided by Current News Stories at http://www.flickr.com/photos/currentnews/3489545692/

I have exchanged a few emails with Bret Dudl, property developer in Costa Rica. He recently gave me some insight into the tax ramifications when buying Costa Rica property.
Here is what he writes:

The advantages of buying property in a corporation in Costa Rica are many, but it’s very important to use the right kind of corporation and to know what the tax ramifications are for each.

• When you buy property in a corporation and subsequently sell it you can avoid the transfer tax

• Corporations in Costa Rica don’t pay income tax.  This can be a major advantage if the corporation is going to retain profits for a future investment

• There is a big difference between a SRL (similar to a U.S. LLC.) and a SA (similar to a C-Corporation).  You use a SRL if you are a US Citizen and want to receive the benefits of pass through losses to offset gains.  You use the SA if you have more than one officer of the corporation and want to sell shares of stock to others.

Ok, I’m glad I got your attention. I had the pleasure of chatting with Ben Vaughn, real estate professional and author of Guys in the Zone, a very insightful Costa Rica real estate blog.

This was a really fun interview. The sound quality is not the best, but I enjoyed speaking with him. We covered a lot…from the most common misconceptions people have about buying Costa Rica real estate to how the real estate market there is being affected by the economic slow down around the world. Listen to the interview and find out why you should be yodeling naked on the pacific coast of Costa Rica! (the answer is about 5 minutes in)

picture provided by jeepeenyc on on flickr    http://www.flickr.com/photos/jeepeenyc/974730475/

By Patrick Connelly

The Costa Rican government recently proposed several new measures in regards to immigration that could severely change the retiree and expat situation. Their aim, in theory, is to dually combat the large influx of mainly Nicaraguan migrant workers as well as the increasing stream of North American moving to the country. With the proposed increase in monetary qualifications for both prospective rentistas and pensioners, many would-be North American expats may be turned off by such a move, particularly in the current financial environment.

The Costa Rican immigration authority, Migracíon, has recently been quoted as saying that the immigration situation in the country is “out of control” and that stricter requirements are desperately needed. In response, the government has proposed to increase immigration requirements for pensioners from $600 a month to $2000 a month, while rentistas face an increase from $1000/month to $5000/month. Basically, to qualify for Costa Rican residency you will have be able to prove that your pension or monthly income equals or exceeds the amount for whichever category you fall into, rentista or pensioner.

In light of these astronomical increases, it is clearly evident that potential retirees and expats could get hosed on this one. According to the U.S. Social Security Administration, the average pensioner in the U.S. receives around $1100 a month, far below the prescribed requirement. And, as the U.S. has one of the highest pension averages in the world, these requirements would have a worldwide effect; for example, Canada – a major contributor to the Costa Rican expat and retiree scene – has an average of around $700 a month.

The government in San Jose continues to claim that these requirements are “easily attainable”, which, from their point of view, is understandable. Milk the cow. If a steady cash flow continues to arrive via North America, it is not surprising that a government would try to keep pressing to see what the ceiling is; that is merely good business. However, in this case it would appear as if the proposed requirements far and away exceed any rationality.

And therein lies the silver lining in this possible four car pileup of increased immigration requirements. This is not an isolated incident; in fact, as recently as 2004 a similar bill was introduced. Met with immediate uproar from the expat community, it failed to pass into law. Recently, when informed that the average U.S. pensioner receives $900 less than the desired requirement, a Costa Rican assembly member was unaware of these figures. Now, this could be a simple mistake on part of the Costa Rican government or an attempt to slide one past the North American community; either way, it poses potentially serious problems for would-be expats in Costa Rica. However, the government recognizes the importance of the expat and retiree communities and the income it brings in, and will certainly proceed with caution as to not disrupt such a vital part of the economy. Certainly a situation worth monitoring in the coming months.

Click on the link to read more analysis on how expats are affected by Costa Rican immigration laws

Have additional input or information on this topic? Feel free to contribute on our board below

By Patrick Connelly

Recently, legislation proposed by the Costa Rican government to dramatically increase the income requirements to become a CR resident have caused quite a stir within the expat and retiree population, and rightfully so. This is no miniscule rise by a few percentage points to boost the bottom line; these increases, including a five hundred percent increase in rentista income requirements, are not only unfeasible but also send out the wrong message. Has Costa Rica, the longtime destination for North American retirees and expats, hit the crest of the wave and no longer wants its gringo neighbors to keep moving southward?

Of course not. It is unrealistic that the government would – or could – sacrifice such a vital stream of revenue. For better or worse, the Costa Rican economy is largely based on the influx of outside dollars; to suddenly pass regulations that significantly inhibit this flow of money would be economic suicide. But that is what these new regulations would seemingly do. Pensioner requirements for residency are slated to increase from six hundred dollars to two thousand, or a mere nine hundred dollars more than the average U.S. pension. Those falling into the rentista category face similar changes, with requirements increasing from one thousand dollars a month to five thousand.

So what has caused this sudden shift in immigration policy? The government in San Jose says that the main reason is national security; with an ever increasing population of Nicaraguan migrant workers, Costa Rica is desperate to get the immigration situation under control before significant social problems arise. Which is a completely understandable goal, given the increased attention both Costa Rica and the U.S. have given to the drug trade on the coasts.

But if security is really the issue here, the government seems to be targeting the wrong crowd, and at the same time sending a negative message to established expats and retirees. If foreigners who cannot meet the proposed requirements – which, according to the U.S. Social Security Administration, would be most people outside of the super-rich – are deemed security risks by the Costa Rican government, what does that make those who made the move to the Central American country under the existing requirements? Are they a perceived security risk? Intentional or not, it is certainly a strange message coming from an usually meek-sounding government.

Costa Rica, of course, is a sovereign country and free to create and tinker with its policies as it sees fit. But the manner in which the government is trying to pass this legislature is flawed. First of all, the requirement increases are simply too great to be feasible, especially in today’s economic climate and with favorable living conditions developing in other countries in the region. If the core reason is money, then slight residency requirement increases would be met with far less opposition and still garner the same outcome: increased revenue.

Additionally, the Costa Rican government has been surprisingly blind to the long term economic consequences of hiked-up residency requirements. Regardless of their status, from expat to retiree, foreigners living abroad inevitably create job opportunity and revenue for the local population. It is similar to what the Detroit automakers are experiencing; close down a Ford factory, and the damage trickles down far past the auto factory workers, all the way to the company that supplies the nuts that go on the wheels. Significantly interrupting the expat and retiree flow will have the same negative effects, from construction labor to lumber and concrete to housekeeping jobs to the small local businesses where North Americans spend their hard earned dollars.

Foreign investments, another major vein of cash flow into Costa Rica, will also be pinched if these requirements are put into practice. Many in the expat community claim that outside investments will all but dry up; however, this seems a bit extreme. Nevertheless, a negative perception of the country stemming from an immigration policy that is practically impossible to obtain for the average retiree would inevitably have adverse effects on foreign investments.

There is nothing wrong, xenophobic, or mean-spirited about a country wanting to control its borders with a tight fist. It is simply good, responsible governing. But there are better ways to handle such a situation, ones that ruffle less feathers yet still accomplish the initial goals. Hopefully for the Costa Rican government, known for its centralism and level-headedness, a revamped version of the proposed legislation will come about that can satisfy both the Costa Rican people and the valuable expat and retiree community, all of which together have a strong and long-lasting relationship.

Read more about the state of Costa Rican immigration here

Most gringos tend to start their Mexico relocation research with Guadalajara and Lake Chapala, probably because there are already so many Americans and Canadians living here – 25,000 to be exact — that it’s an easy place to get started. There are plenty of English speakers and plenty of people willing to point you in the right directions, making the whole process just a little less overwhelming. With better weather and a more relaxed feel than Mexico City, sunny Guadalajara and its environs has long been a favorite spot for expats looking for a manageable, pleasant, and safe place to retire. Guadalajara may be smaller than its gigantic sister city to the south, but this city of about 1.5 million still offers a ton of cultural, dining and shopping experiences, not to mention modern, first rate hospitals, attractive golf-courses and a number of exciting outdoor and recreational activities.

Guadalajara is Mexico’s second largest city and a major economic hub, well-known as being a major electronics and manufacturing center. Though it has its share of colonial architecture and attractive plazas, Guadalajara is a modern city, which means there’s still plenty of congestion, pollution and noise – not exactly how most retirees envision their golden years. For this reason, most retirees tend to head to the quaint, traditional towns that border Lake Chapala, only about an hour’s drive away. If you’re visiting the Lake Chapala area as part of a relocation research trip, I strongly encourage you to contact the Lake Chapala society, (www.lakechapalasociety.org), an organization of almost 5,000 members that plan and organize activities, fundraisers and events. The ex-pat group hosts many events throughout the year, and its members can give you a deeper insight into life in and around Lake Chapala. Another excellent resource and forum is the “Living at Lake Chapala” blog (www.mexico-insights.com/Home.aspx), written by and for ex-pat residents of Lake Chapala. This blog should give you a good idea of what life’s like at Lake Chapala.

Despite being home to one of the heaviest concentrations of North Americans in Mexico, Lake Chapala doesn’t feel quite as Americanized as San Miguel de Allende or Cuernavaca. Yes, there are plenty of gated communities and resorts to choose from, but you can just as easily live among the locals in sleepy Jacopec or San Antonio. And this is the beauty of the Lake Chapala area: There are enough Americans and Canadians to give you a sense of support and companionship, but foreigners are dispersed enough that you can really immerse yourself in Mexican culture if you want to. This, on top of the lake itself and the lovely mountains that form the backdrop are some of Lake Chapala’s main attractions.

Of course, no article about Lake Chapala is complete without mentioning Ajijic, a charming, old-world town of 15,000, and a long-time favorite among North Americans for its hillside villas, traditional dwellings and cobbled-stoned streets. It may be becoming a little too “discovered” for its own good, but despite a heavy North American presence, Ajijic still somehow manages to feel like a traditional Mexican village, and it really is the crown jewel of the Lake Chapala area for its cultural and social happenings. You may feel like you’ve stepped back in time 100 years, but there’s still a lot to do here, from golfing, to boating to organized group activities – and a the airport is just half an hour away if you need a vacation from your enviable lifestyle.

You can expect to pay about $600-$1,000 a month for a modest, small home along Lake Chapala, though the sky’s the limit if you’re looking for more luxurious accommodations. As you’d expect, it’s much cheaper to live in Mexican neighborhoods than planned resort communities or gated homes – sometimes more than 50 percent cheaper. In general, however, Lake Chapala still offers a lower cost of living than San Miguel de Allende or most of the popular coastal retirement hotspots.