Click here for hourly updates on the H1N1 virus in Latin America

Every weekend tens of thousands of soccer fans crowd into Mexico City’s stadiums to cheer on the city’s three teams and transform the grey concrete stands into a vibrant array of flags and song.  But last weekend the

Mexico's cavernous Azteca Stadium sits empty during a game last weekend

games were played in silence; not one spectator was allowed to enter.

As of April 27th, the swine flu outbreak in Mexico has caused the deaths of at least 100 people, with thousands more suspected to be ill with the disease.  The sudden appearance, along with the rapid spread of the disease, has caused major concern around the globe, with several governments warning travelers to stay clear of Mexico.

The disease, caused by the influenza strain H1N1, is similar to the H5N1 strain that caused the bird flu panic in Asia a few years back.  While not as deadly, this new strain appears to be much more transmissible between humans.  Mexican health officials are working closely with the U.S. Center for Disease Control and have located the origin of the outbreak to be in the pig farming region of La Gloria in southeastern Veracruz; however, the spread of the swine flu has been so rampant that most of the country has been affected.  Hundreds of cases have been determined throughout the central mountain chain, particularly in Mexico City and San Luis Potosi and as far south as Oaxaca.  This, of course, makes sense since a highly transmissible disease will flourish in populous areas.  Cases have also been reported in the northern Baja region, centering around Tijuana. Mexico City is in a near panic as the 4 million facemasks given out to prevent infection have been quickly used up. Riots have been reported outside some city hospitals.

This flu – aptly named with such a disgusting moniker – is a real threat to the health of the entire country. Incredibly, Mexico has canceled all school until May 6th in an attempt to prevent the gathering of large groups of children. This is an enormous country, and closing down every school in the country is something that doesn’t happen very often anywhere in the world. Additionally, most of the capital’s theatres are closing for the foreseeable future and the qualification tournament for North American youth national soccer teams has been called off. Thus is the seriousness in which the government is taking this situation.

Passengers wear masks on a Mexico City subway

The flu has now reached some of the tourist and expat hotspots along the Pacific coasts, most notably in Acapulco, where the usually vibrant nightlife has ground to a halt after the government ordered nightclubs and bars to close. Incidentally, there are fears that citizens from the capital, enjoying something of a vacation because of the school cancellations, will accidentally infect previously clean areas. And with the speed in which this disease is spreading such fears are rational.

U.S. officials have dismissed talk of strict travel restrictions to and from Mexico, as well as any border closures.  They have, however, recommended that U.S. citizens think twice about traveling to Mexico unless it is essential, echoing the words of European governments.  Its too early to tell to what extent the swine flu will spread, but with situation escalating on a daily basis, things may get worse before they get better. While the spread of this flu is alarming, the number of people infected is still relatively low, and the mortality rate is, for now, staying down.  Don’t go buy a ton of bottled water and Spam and head for the bunker, but normal health precautions should be taken.  We here at Latinworld.com want to keep the expat and retiree community up to date on this evolving problem, and will keep our readers updated with daily reports about the situation on the ground. Check back often.

Are you an expat or retiree living in Latin America?  We want to here your story.  What is your country, community, or family doing to stay healthy?  Are you worried, or is this a exaggeration of the media?  Tell us, and the world, your story below.

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Costa Rica is a very small country, but yet still represents 5% of the bio diversity of the planet. Places like Corcorvado park is a haven for back packers, jet setters and those looking for eco-adventure. Being conscious about your carbon footprint is crucial to the success of sustainable tourism. The local community needs to be encouraged to take care of the environment and preserve nature.

As retirees struggle to find a solid economy that provides a safe place to invest in, Mexico stands out as one of the most advantageous countries south of the border in which to do so. Out of a list of things that makes real estate investment in Mexico a very attractive option, property taxes may be by far the greatest of all advantages.

The property tax rate in Mexico may range from 0.275% to 1.350%, depending on the location of the property and it is payable annually. Regardless the property location, property taxes are lower than those in the US.

Average real estate taxes in Mexico

When compared to the United States real estate market, Mexico´s property taxes are almost 50% less than those of the US. A property of around $450,000 located in Sayulita can have an annual property tax of just $150. Similarly, the owner of a property of around $200,000 will normally not exceed $130.00 per year.

Why are property taxes in Mexico so cheap?

Mexico´s priority is to encourage investing, so instead of having property taxes as a source of big revenue, the government prefers to attract investment and promote homeownership by making the real estate market an attractive and profitable investment for foreign real estate buyers.

The cost of property ownership tax (Impuesto predial) in Mexico is pretty reasonable. After the owner receives the bill via mail they can pay it at a local bank where a receipt will be issued. Bear in mind that these paid receipts are a key document for the sale of the property in the future.

Photo used for this entry was kindly provided by Flickr user blmurch

By Carol Stanley

Contributing writer to Latinworld.com

You are finally retired, and want to find a new and exciting life. The house is sold, the family is spread out, and frankly you feel like it is time for you to kick up your heels.

There are many attractive places to relocate south of the border. This is the time to investigate, check out real estate prices, and find your perfect lifestyle. Almost anywhere you look there will be a wide selection of homes to choose from. Most cities in Mexico boast of economical living in comparison to the United States real estate prices. Generally speaking food costs, utilities, transportation, entertainment, and health care are fairly reasonable.

Be aware that moving to a foreign land has some challenges. The language is probably one of the biggest challenges. In Mexico many people speak English, but there will be times when you struggle to communicate. Also, there are cultural differences with regards to time. Things move a little slower in Mexico so don’t be surprised if 9am is really 10am. Things are different south of the border and you will have an adjustment period to go through, however, this is part of the learning experience.

Some of the things you will have to look into are as follows:
1. Laws of the country and how they apply to U. S. citizens
2. Banking in a foreign country and where to have your direct deposits go
3. Pet laws
4. Taking your automobile to a foreign country and costs
5. What you can bring, and what is best left behind
6. Papers that need to filled out before entering your place of choice
7. Medical care including medicare benefits
8. Learning the new language
9. Finding affordable housing that suits your needs
10. Activities
11. Traveling (back and forth to the U.S.) flight availability and costs

There are more things to look into, but this is a beginning. All relocating experiences offer challenges and can be exhausting; and moving to a foreign country will just offer a few more things that need to be addressed.
Here are some suggestions for retirement destinations in Mexico:

San Miguel de Allende
Puerto Vallarta
Loreto
Lake Chapala
Cancun

Check out the many websites, make some calls, find expat forums and ask questions. The best advice is to spend some time living in one of these exciting places. Actually it is a good idea to visit several places, and the longer you stay you will get a true feeling for the place. You may be willing to give up certain comforts, but there are some things that are important to you, and those things should be addressed.

You could very well have that adventure of a lifetime.

Featured Blog Contributor:
Carol Stanley is a well known speaker and author. She writes frequently on baby boomer and retirement topics. Her latest book, For Kids 59.99 & Over can be found at all online bookstores. www.babyboomerpower.com, www.boomercarol.com

In this interview Scott Bower highlights the must see sights in and around San Jose, Costa Rica. He also gives his take on the environmental impact that new real estate developments are having on the coastal areas. Scott owns a travel company, Package Costa Rica, and has been living in the country since 2001.

Download the mp3 file by clicking the right button of your mouse and selecting “Save Link As…”

1. Legal guidance – Buyers should use a real estate company or their own attorney to guide them through the legal process. Costa Rica’s legal system varies from most countries. Buyers must contract a trusted attorney to do the due diligence necessary. Make sure there is no impending tax burdens on the property, zoning, among other things that could affect title or future construction.

2. Get familiar with Costa Rica – Don’t get swallowed up by the beauty. Often times tourists fall in love with the incredible scenery and charming people, but forget that real life is not a permanent vacation. Don’t forget about bills, work, cultural differences. It is a good idea to live in an area before you make a purchase, even if it is for a couple weeks or a month.

3. Research the area thoroughly – Think about your needs. Do you want modern conveniences like Internet, cable TV and air conditioning? Or would you prefer to live in the middle of rain forest with wild animals looking in your window? Costa Rica has a wide variety of climates, from the more dry “pampas” of Guanacaste to the alpine forests of Heredia. Don’t forget about the tropical Caribbean coast. Once you decide the type of climate you like make sure you can find a place that has what’s important to you. Do you like to surf or shop in large malls? Is there a grocery store nearby? What about a bank? If you are looking to go into full immersion, maybe living in a place with very few foreigners is a good idea?

4. Compare and contrast – Once you’ve seen numerous properties, make a check list of the pros and cons of each one. Carefully consider all factors like the quality of the construction and surrounding neighborhoods.Make a list of must have things and other things that you desire, but can live without.

5. Once you’ve made a purchase, get involved with the culture – One of the most important aspects of living in another country is immersing yourself in the culture. Costa Ricans are generally very welcoming and like to teach others about their local culture and expressions. Spend time learning Spanish. It will help you a great deal. Live like a Tico!

Click on the link to view thousands of properties in Costa Rica

By Patrick Connelly

Getting pensions transferred to Brazil can be a big headache if one is not prepared before hand. I’ve heard the process called “impossible” and “exhausting”, among other things, but these comments usually come from people who haven’t actually gone through it. In reality, with careful planning the process is quite easy, if not a bit long.

Pension Requirements

First off, Brazilian pension requirements for U.S. retirees are a bit steep at $2,000 U.S/month. This number is always subject to change, and with an increasing number of retirees looking to Brazil, it may certainly lower. This $2000 requirement covers the pension holder and two dependents, all of which will receive permanent resident visas. Additional dependents require proof of an additional $1000 in pension funds per month.

What You Need

This is the tricky part. Paperwork, paperwork, paperwork. The cost of living in paradise.

Background Information:

1. Visa application forms. The Brazilian embassy says you need two per applicant, but I’ve also heard three are necessary. Better to be safe than sorry.

For dependents under the age of 18, a copy of the birth certificate is needed as well. Also, their visa application forms must all be co-signed by the minor’s parents or legal guardians and then notarized by a Notary Public.

2. Photos. Again, the embassy says two per applicant, but I’ve also heard three. Either way, passport-style photos are the best, the ones you can get made at any Kinko’s or Walgreens. Just don’t bring a cut out photo of you at the office Christmas party. That probably won’t fly with Brazilian authorities. Avoid the headache, get the pictures made where they take passport photos.

3.Marriage, birth certificates. Depending on the number of dependents attached to the pension. Spouses need both the birth and marriage certificate, while children only need the birth documents. If you are flying solo, of course, only your birth certificate is necessary.

4. Copy of passport information. Just a copy of the information pages of the passport. The pension holder and all dependents must have a copy of their own. I’m really happy you went to Fiji last year, but don’t make copies of the country stamp pages. Not needed.

5. Criminal Record. Well, a non-criminal record would be better. This is time-sensitive, so plan accordingly. A complete criminal record check by the Federal Bureau of Investigation must be done within 90 days of your planned move to Brazil. Any record check older than 90 days is useless and the process will have to start again. The records check is necessary for all dependents over the age of 16. Check this link out for more info in the FBI background check:

http://travel.state.gov/travel/tips/emergencies/emergencies_1201.html

6. Proof of Residence in wherever it is that you currently live in the U.S.

Pension Information : With all the red tape done, its time for your pension paperwork.

7. Proof of Retirement. A statement from the Social Security Administration saying that indeed you are retired and receive x amount in pensions. If applicable, the form should state both the lifetime portion and the temporary portion. For more on this statement, click here:

https://secure.ssa.gov/apps6z/isss/main.html

8. Proof of Pension. Documented proof, provided by your pension provider, of the amount that you receive on a monthly basis. Of course, this must equal or exceed $2000 U.S./month. Additional dependents must be covered by the amount as well, an additional $1000 U.S. a month. Again, it is good if your provider can state the long-term and temporary portions of your pension.

9. Bank Statement. A statement from your bank is necessary, stating that $2,000 (or more) of your pension fund can be transferred to Brazil on a monthly basis.

Photo from flickr

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/

Article written by Sharon I. Heafey and Victor Loza

Contributing writers to Latinworld.com

Ouch that Hurt!

If you knew me, the last thing you would ever think was that I was gullible. I’ve owned a very successful computer consulting and training company for 20 years, worked for a law firm, and come from a family whose philosophy is, “Believe half of what you see and none of what you hear.”

I’m tenacious, do tons of research and have endless questions that I’m not shy about asking. So how did my husband and I get ourselves into trouble when we built a home in Mexico? Simple, we did not make sure that we had the right agent. Fortunately, finding the right agent is not as hard as it was 4 years ago when we moved to Mexico.

Rules of the Road

Rule #1: Find an agent that is a member of a reputable real estate organization. In our area of Rosarito and Ensenada that would be AMPI (for both Rosarito and Ensenada) or APIR (for Rosarito) or APIE (for Ensenada). It’s a small community and everyone knows who to work with. In addition, AMPI is also recognized by the National Association of Realtors (NAR) and agents are governed by a Code of Ethics.

If you are already working with an agent, ask them about their membership in one of these organizations. If they tell you they don’t belong because membership doesn’t mean anything, run, run very fast. There is a reason why they are not members of any of the local Associations and you don’t want to be the person who finds out why.

Rule #2: Get references. Start by talking to someone in AMPI, APIR or APIE. Let them know that you have already met and selected a realtor, but want to find out if they are a member in good standing. Ask if there have been complaints against them and how they were resolved. Not all agents will be members of all organizations, so be sure and ask your agent which organization they belong to.

Talk to at least two clients who have worked with the agent – even if they did not buy. Don’t rely strictly on written testimonials. These are easy to get – or fabricate. You want to hear the tone of their voice or whether they hesitate before they respond. Ask the reference what the best part of working with the agent was, and where the agent could have improved. There is always room for improvement so you should expect to hear something, even if it is minor.

Since you are moving to a new country, it is equally as important that the buyer received support after the sale. Was the buyer dropped like a hot potato when the commission check cleared or did the agent help them with their phone and cable hook up, find a doctor, dentist, dry cleaner, and best of all, a great taco stand?

Rule #3: Beware of the bait and switch to get you to buy NOW. As the economy changes, there is more misleading advertising. Ads range from claims that there are fire sales where prices are dropping by hundreds of thousands of dollars to homes having great ocean views when they really have an ocean “peek a view.”

There are good deals out there, but they probably aren’t going to disappear in the next 24 hours. If you really want a property, but have not had time to do all your research, put down a refundable deposit and have it held by a reputable company that you and the seller agree upon. Ask to see the previous listing before the drastic drop in price and find out how long the property was on the market. A change in price of $100,000 after being listed for only 24 hours screams mistake, not deal.

Rule #4: Find out if your agent owns property in Mexico. I’ve never been big on, “Do as I say, not as I do.” If your agent is telling you that owning in Mexico is an excellent investment, you deserve to know how committed they are. Over the last four years there have been numerous agents that have easily come and gone because they were on a month-to-month rental.

If you want to be able to call your agent six months or even two years from now, you have a much greater chance of having your agent in the country because they have made the commitment to invest and live in Mexico. With 80% of buyers finding their property on the Internet, you will even find brokers claiming they have offices in Mexico when they neither operate nor live in Mexico. Ask where their offices are located and then stop by to check out the location.

Rule #5: Make sure your agent has experience with your type of purchase. There is a huge difference between buying a built unit and building your own home. We actually own two properties. Our home in Rosarito was already built and we lived there for the 2.5 years it took to build our home in Ensenada. The purchase in Rosarito was easy, smooth and pretty much stress free.

Stressful cannot begin to express our experience with building our home in Ensenada. Now we know, from personal experience, every mistake you should not make and exactly what you should do to protect yourself. There is a huge difference between learning about building a home and building one. If you want to build a house, find an agent who has actually experienced building.

Today, more and more buyers are looking for property in wine country. Purchasing property with the goal of making wine is totally different than buying a house or condo. There are considerations that you would never begin to think about in the United States or Canada. Be sure to work with an agent who has experience with this type of purchase in Mexico. If they don’t have personal experience, let them know you don’t have a problem working with an associate of theirs that does have the proper experience. If your agent isn’t willing to share some of their commission to make sure you are protected, maybe they are not the right agent for you.

Rule #6: Ask for documentation on listings. So many times the agent will tell you they have a great listing, but can’t provide you with documentation showing proof of title. There is nothing worse than getting your heart set on a property and then after weeks or months of running around in circles, you find out that the seller doesn’t have clear title. Not only are you out a property you fell in love with, but you have lost time and possibly another piece of property that you would have liked equally as well.

However, it is not uncommon for an agent to get a new listing that could fit your needs, but not have had time to properly research the property. That should not be a problem as long as you are aware that there is a possibility you might not be able to make a deal if the research turns up some problem.
Here Comes the Offer

Yes, you can have a good experience purchasing property in Mexico. You want to make sure that you have a knowledgeable, experienced, and ethical agent. When you are ready to make an offer there are a myriad of additional considerations and concerns, but if you have selected the right agent, you will have the right person to guide and protect you.

Sharon Heafey and Victor Loza are co-founders of Your Baja Connection. YBC provides real estate and relocation services for buyers in Mexico. YBC can be reached at 858.748.5870, via email at YBC@YourBajaConnection.com, or at www.Your BajaConnection.com.

At Your Baja Connection we understand all these issues and we have purchased and gone through the process ourselves. We want to be Your Baja Connection and are ready to assist you in a worry-free purchase of your new retirement or vacation home or condo in Mexico.