Affordable Real Estate in Yucatan, Mexico

Let's assume, for the sake of discussion, that you are a middle or lower "middle class" American who always dreamed of extending the value of your retirement dollars by moving to Mexico. Let's further assume that you have no 401k, no pension other than Social Security, and your house in the States is not going to sell for half a million dollars. This is not as far fetched as it sounds to many of the more well-to-do expats who are streaming across the border to a luxury retirement in Mexico.

Take a look at the Fidelity Retirement Index for 2006 . Did you know that 41% of Americans plan on working after retirement just to help defray medical costs? Did you know that 33% of Americans are not going to retire at all because they cannot afford to lose their health care benefits? That leaves only 26% of Americans actually able to quit work and still afford health care! Did you know that, in 2006, only 17% of Americans reported that they will have a pension to rely on after retirement? Did you know that rising gas prices and interest rates are being funded by Americans robbing (or not even starting) a 401k? Obviously, toying with the dream of retiring in Mexico is now a viable option for more Americans than ever.

But wait! How much does it cost to rent or buy a house in Mexico? Your gringo requirements for location are pretty strict. You want no crime and world class health care, along with plenty to do and see. Why that's the actual definition of the State of Yucatan, the center state on the Yucatan Peninsula! Unfortunately, your home town newspapers and CBS Sunday Morning have been reporting, over the course of the past two years, that a home in Yucatan can still be had for roughly $100,000 USD and an average of "only" $400,000 in places like Baja. But the land grab is on and prices are rising constantly. Could that be true? Are you, as a middle class Baby Boomer, being priced out of Mexico too?

Believe it or not, you can still live quite well in Mexico, and even in now popular Yucatan, on quite a bit less than what you often read online. If you Google Real Estate in Yucatan, you will find dozens of sites that offer rentals for well over $1,000 USD per month. You will also find that most homes shown online are running between $100,000 USD and $200,000 USD - or more. If the online offerings are less than that, they need remodeling, which is a whole new nightmare experience. However, you have to remember that these are online sites and the prices shown are laughingly known as "gringo prices" to those who actually live there. After all, who in their right mind buys a house online, sight unseen and in a foreign country?

You are either retired or nearing retirement. You don't want a fixer-upper! You went through that stage of life in your 20s and 30s. All you want now is a pretty little house with a nice little yard and as few worries as possible. If you have extra money at the end of the month, you want to spend it seeing and doing things, not dropping it into a money pit of a house - certainly not in a foreign country! So - what you need to know is... are there affordable homes for rent or sale in Yucatan? ...and if so, how do you find them?

The first thing you want to do, in Yucatan, is find a reputable attorney. For that, you can sign up for a free membership on Merida Insider. Just ask the gringos who live there. They are a wealth of information. Then you want to read Yucatan Living, so you'll know what kind of place you are considering moving to. Next, decide whether you want to live in the city, at the beach, or in a smaller, inland town. Finally, you want to look in the real estate section of the newspaper, El Diario de Yucatan Look for the dropdown menu for "avisos economicos," and then for "Bienes Raices." There, you will find a "mapa" of the zones of Merida and a drop-down menu from which to select Renta or Venta (rent or buy).

Once you are on the real estate site, you can limit your search with any number of criteria, including area of the state. Most gringos live either at the beach or in Merida, in zones 1, 2, 4, and the part of Centro that extends into zone 3. You can find houses for rent anywhere from around $100 USD per month on up, depending on zone. A precious 2-bedroom home in a subdivision in a nearby village can still be rented for under $100 USD per month and, recently, there was a brand new, cute little house for sale for $8,700 USD. Granted, those were in subdivisions, rather than in upscale neighborhoods that have a private country club, but those sorts of things are not far away if that's your style.

It pays to do your homework. Get out a pencil, paper, and calculator. Get involved with the sites that local expats are involved in. Watch the paper. Get to know the neighborhoods. Do the math. It won't be long before you see that Mexico, including Yucatan, has a place for everyone's budget and lifestyle - and that you can still enjoy retirement there without having to worry about money.

Sources:

Fidelity Retirement Index 2006: http://content.members.fidelity.com/Inside_Fidelity/fullStory/1,,6845,00.html

El Diario de Yucatan Real Estate Classifieds: http://www.yucatan.com.mx/ then "avisos economicos" and "Bienes Raices"