It is almost Easter (April 24th this year) which traditionally means the exodus of the “Snow Birds”. There are many things that this exodus means to permanent residents. Some are good and some bad.

The first good thing is that we will be able to make a turn onto the carretera without waiting several minutes. Parking in Ajijic, Lake Chapala will be easier and we are left to enjoy our magnificent ‘rainy season’ in peace.

This is also a good time for the real estate market for several reasons. One is that some vendors feel that they might have missed their chance to sell so prices may be more flexible. Also buyers who come in the “off-season” are generally serious and not just kicking tires as it were. Realtors may be a little less busy and, therefore, able to spend more quality time with potential buyers.
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THE NEW GLOBAL ECONOMIC REALITY

First: A reality check on Mexico

Mexico is in a unique position to reap many of the benefits of the decline of the US economy. In order to not violate NAFTA and other agreements the U.S.A. cannot use direct protectionism, so it is content to allow the media to play this protectionist role. The U.S. media – over the last year – has portrayed Mexico as being on the brink of economic collapse and civil war. The Mexican people are either beheaded, kidnapped, poor, corrupt, or narco-traffickers. The American news media was particularly aggressive in the weeks leading up to spring break. The main reason for this is money. During that two-week period, over 120,000 young American citizens poured into Mexico and left behind hundreds of millions of dollars.

Let’s look at the reality of the massive drug and corruption problem, kidnappings, murders and money. The U.S. Secretary of State Clinton was clear in her honest assessment of the problem. “Our insatiable demand for illegal drugs fuels the drug trade. Our inability to prevent the weapons from being illegally smuggled across the border to arm these criminals causes the deaths of police officers, soldiers and civilians,” Clinton said. The other large illegal business that is smuggled into the U.S.A. that no one likes to talk about is Human Traffic for prostitution. This “business” is globally now competing with drugs in terms of profits.

It is critical to understand, however that the horrific violence in Mexico is over 95% confined to the three transshipping cities for these two businesses, Juarez, Tijuana and Nogales. The Mexican government is so serious about fighting this, that they have committed over 30,000 soldiers to these borders towns. There was a thoughtful article written by a professor at the University of Juarez. He was reminded of the Prohibition years in the U.S.A. and compared Juarez to Chicago when Al Capone was conducting his reign of terror capped off with The Saint Valentine’s Day Massacre. During these years, just like Juarez today, 99% of the citizens went about their daily lives and attended classes, went to the movies, restaurants, and parks.

Is there corruption in Mexico? YES !!! Is there an equal amount of corruption related to this business in the U.S.A.? YES !!!. When you have a pair of illegal businesses that generate over $300,000,000,000 in sales you will find massive corruption. Make no mistake about the Mexican Drug Cartel; these “businessmen” are 100 times more sophisticated than the bumbling bootleggers during Prohibition. They form profitable alliances all over the U.S.A. They do cost benefit analysis of their business much better than the US automobile industry. They have found over the years that the cost of bribing U.S. and Mexican Border Guards and the transportation costs of moving marijuana from Sinaloa to California have cut significantly into profits. That is why over the past 5-7 years they have been growing marijuana in State and Federal Parks and BLM land all across America. From a business standpoint, this is a tremendous cost savings on several levels. Let’s look at California as an example as one of the largest consumers. When you have $14.2 billion of Marijuana grown and consumed in one state, there is savings on transportation, less loss of product due to confiscation and an overall reduction cost of bribery with law enforcement and parks service people. Another great savings is the benefit to their employees. The penalties in Mexico for growing range from 5-15 years. The penalties in California, on average are 18 months, and out in 8 months. The same economic principles are now being applied to the methamphetamine factories.
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When people are considering retiring or moving to Ajijic, Lake Chapala it is important to know that there is something for everyone here.

We have many different options for people. There are many different areas available and we have live in a lot of them.

Our first house was right in the village of Ajijic. We loved living in the village. It was handy to everything and we walked everywhere. We felt like we were really a part of the Mexican community and enjoyed our neighbors.

The vets, Antonio and Hector Ladron, were, at that time, kitty corner from our house. This was a very good thing as we had inherited a mother dog and her five newborn puppies with the house. Naturally, as we had two young children, the mother dog and one of the puppies became ours and good homes were found for the other four puppies.

If there was a negative about living in the village it might be the noise especially at night. It did not bother us, however. We had a shouting gallery off the master bedroom and when the Mariachis played in the street at night it sounded like they were in our bedroom.

Next we lived in a house in Upper La Floresta. This was a great house for kids as it had a small swimming pool, tennis courts and soccer field. We like living in La Floresta with its wide beautiful streets and we like the daily safety patrols.

We were then lucky enough to hear about a fabulous house in Chula Vista which was truly magnificent. This house had four bedrooms, a casita, and a wonderful outdoor entertainment (more…)

Americans and Canadians out-number Europeans who retire in Mexico by a significant amount. This is simply to do with geography and although some Canadians will travel just as far in terms of number of miles, there is not large body of water between the two and the psychological impact of this is greater than we realize.

So, if you eventually decide to retire in Mexico, and you decide to live inside one of the expatriate communities such as Ajijic, Lake Chapala, you will most likely be sharing the company of Americans and Canadians who will all speak English with you. You will not want to miss out, however, on the warmth of the Mexican people who you will also share your life with.
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Crime in the USA vs. Mexico

Over the next few blogs I would like to share some information I have uncovered to refute the “dire” warnings issued in travel advisories about Mexico.

Just about every country in the world is now experiencing increased crime rates. However, there are usually safe areas in every country where the crime rate is lower or non-existent. Ajijic, Lake Chapala is one of those safe areas.

The US State Department put out a warning about the violence in Mexico. Although the report states that 128 Americans were killed in Mexico between Jan 2006 and December 2008 one has only to look more closely at the data for the northwestern part of Mexico including Rosarito Beach, Ensenada, Mexicali, San Felipe, Tecate and Puerto Penasco to see that 42 Americans were killed, from all causes (there were at least 4 suicides) in the last three years combined.
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Published in CRA Magazine Inside Winter 2003 Edition

From the depths of the Canadian winter, it is tempting to consider the delights of relocating or retiring to Mexico. Canadian expat and real estate agent Kevin Collins explores one aspect of the dream – buying a house in the idyllic village of Ajijic on Lake Chapala.

Buying Into Mexico
Fifty years ago, the first North American expats settled in the Lake Chapala region of Mexico. Today, the best estimate of the foreign population is between 5,000 and 6,000, about half of whom are Canadian.
I came to Ajijic eight years ago and found what was, for me, an ideal combination of location, people and weather. Ajijic is a small town, with little tourist traffic. However, proximity to cosmopolitan Guadalajara and to the international airport ensure that the town is not isolated. A four-hour drive will take me to the beautiful Pacific Ocean or to one of at least ten historic and charming colonial cities. The people of Ajijic could not be kinder or more tolerant of the expats who share their town: being polite is an art form here. So many Mexicans speak English that it is possible to get along with very little Spanish (mine is limited to the topics of food, beverage and golf), but I know that I have missed a great deal by not taking advantage of the many opportunities to study it properly!

REAL ESTATE REALITIES

To provide stability against the fluctuating Peso, houses here are priced in U.S. dollars. More that 95 per cent of home sales are cash deals. Occasionally owners are willing to take back some financing for a year or two but this is unusual and any problems can be tied up in the local court system. While there is a misconception that you cannot obtain a direct deed in Mexico, this is only true of areas close to a border or the ocean. Establishing clear title is handled by a specialized lawyer or notary appointed by the government to deal with all real estate transactions. While remarkably few problems arise, you may wish to get references from recent clients.

Since there are no disclosure laws to speak of, make sure your agent informs you of any problems with the physical structure of the home you are considering. While this sounds very scary, the truth is that there aren’t that many major problems with the homes here, and repairs are relatively inexpensive. Closing costs, which are the responsibility of the buyer, are largely based on the fiscal evaluation that the municipality puts on the property. You must sign an application as a foreigner buying property under the laws of Mexico (this costs approximately $430 (U.S.) for each person buying the property). Other costs include the notary fees and the taxes, which are 2 per cent of the fiscal evaluation. Generally speaking, if you are using a reputable realtor and a good notary, the buying process should be quite painless and straightforward. Because of the region’s popularity with expats, housing prices have risen in recent years. Land in the prime areas is limited because there is a fairly narrow strip that runs along the lakeshore and up the hillside above Lake Chapala where you can purchase and build. Above this land is “Ejido” property, set aside for the use of the indigenous population. Most stories about foreigners having problems with their property in Mexico involve people illegally selling Ejido land. While housing prices may be steeper than you expected, property taxes are rarely over $200 (U.S.) a year and domestic help averages around $2 (U.S.) an hour. Few people bother with air conditioning or heating (other than ceiling fans and a fireplace), and utilities are much less expensive than in Canada or the U.S. Combine these benefits with the tax advantages of living abroad and you’ll agree with a client of mine who said, “I’m not wealthy but I always wanted to live like a rich person, and I can do that here.”

LOCATION LOCATION LOCATION

People here will say with great conviction that wherever they live is the best place to be. Many people initially look for property in the old village of Ajijic, but later realize that they are unlikely to find lake views in the village, and it can be noisy at times. While newcomers tend to harbour the romantic notion that they can walk everywhere, most people find they do need a car. Areas such as La Floresta and Villa Nova are walkable to the village but quieter, with wide streets and good quality homes. Up the hill there are more gated communities with wonderful views, and it’s a little quieter (Mexico can be a noisy place: dogs, roosters and music are everywhere, but you do get used to it after a while!). The Racquet Club has wonderful views, nice common pool area and lots of tennis activities, but it is a 10- to 12-minute drive from town. That does not sound like much but your world shrinks here and it is too far out for some people. You get more for your money outside the prime areas, but resale becomes a real issue if you get too far out. The exception to this rule might be the Chapala Country Club area, which has a nine-hole golf course and a good social scene. However, it may be too far away from the amenities of Ajijic for non-golfers. No two homes in Ajijic are alike. The houses are as eclectic as the people who choose to settle here, and while that makes living here fun, it takes some getting used to. Even the best neighbourhoods will have a series of wonderful houses and then a cornfield in the middle of everything. The local custom of building houses behind walls enhances privacy and security, and maximizes utilization of space.

RESEARCH

The best way to begin gathering information about the Lake Chapala region is to get on the Internet, starting with . While common sense would suggest renting for a season to two before buying, it can be difficult to find a long-term rental; most people use their homes here for at least half the year. It is hard (but not impossible) to find a decent rental from American Thanksgiving through Easter. The only slow period is from Easter till the middle of June, when people from Texas, Arizona and Florida arrive to escape the heat during the summer months. An excellent accommodation base for a fact-finding mission to Ajijic is La Nueva Posada, a small, charming hotel located in the village of Ajijic right on the shore of Lake Chapala (e-mail: ). It is owned and operated by the Eager family, Canadians who have been here since 1975. The Eagers are a good source of information on any number of subjects. You might want to book early because they have only 19 rooms and four garden suites (the latter with kitchens and living rooms). As someone once said, ”People buy with their hearts and then justify it with logic.” So if you fall in love with a place, don’t fight it. You don’t have to make a hasty decision, but remember, paralysis through analysis could keep you from moving anywhere! Meanwhile, “Hasta lo mas pronto posible!” (Spanish phrase for “See you real soon, eh!”).

The Mexico They Never Left

by Roger Toll, former Editor of Mexico City News (Delta Sky Magazine, February 2006)

Near Guadalajara, the lakeside town of Ajijic has proven irresistible to many Americans. Here’s why.

If the cherished ideals of human unity and harmony between cultures remain hard to achieve, maybe we’d best look to a basic biological concept for a solution. Symbiosis, the dictionary says, is the life association of two dissimilar organisms for mutual benefit. I thought of this on a recent visit to Ajijic (pronounced “ah-HEE-heek”), the prettiest of several towns laced together by a two-lane highway running along the northwest shore of Mexico’s largest lake, Chapala, 45 minutes south of Guadalajara. It is midsummer, the rainy season, where the air is soft and the surrounding mountains turn an exuberant tropical green. The setting is bucolic, Old World, with a rustic church and peaceful plaza, and a gazebo waiting for a band to arrive. Cobblestone streets slow traffic to a genteel crawl, and people come and go, murmuring a polite “buenos dias” as they amble by.

It is a scene replicated in thousands of towns throughout Mexico. But in one way, Ajijic and its lakeside neighbours–Jocotopec, San Juan Cosala, San Antonio Tlayacapan, Chapala–stand alone, not only in Mexico, but in the world. For they are home to the largest population of Americans and Canadians living outside their own countries. This being Mexico, no one is quite sure how many foreigners there are, nor does anyone seem to know the total population of these lakeside towns. But guesses place the foreigners at about 10,000 during the high season of winter, amid a total population of 60,000.

Ever since Americans began migrating to Ajijic in the 1950s, detractors have said it’s where old gringos go to die. Granted, most of the foreigners are retired, though more and more younger people have made the move after corporations began offering early retirement. Reduced incomes become a lot more elastic in the Latin American economy, and the lakeside’s perfect, spring-like weather, with average temperatures ranging between 67 and 78 degrees Fahrenheit (19-26 Celsius) year-round, seems like a dream to long-suffering veterans of harsh winters or sizzling summers. Comfortable, stylish homes, even Spanish Colonial gems, are half the price of their equivalents back home, and employing a full-time gardener and a maid or cook is no longer an unjustifiable luxury. Labor, goods, and restaurant meals are impressively inexpensive. Life is comfortable and relaxed, and there’s little cause to hurry anywhere.

“I’m on the younger side of the expatriate curve here,” says Kevin Collins, a wry, 49-year-old former advertising executive from Toronto who moved here a decade ago. “But the average age of foreigners is coming down pretty quickly, probably around early 60s by now.” We meet over drinks in the sprawling garden of La Nueva Posada, the town’s best hotel, whose bedraggled charm is reminiscent of a setting in a Graham Greene novel. Collins, who moved to Ajijic with his wife and two children, has lowered his golf handicap to 6 after years of playing three times a week at the nearby nine-hole golf club. He has also become the area’s top real estate agent.

“People get fantastic medical attention in Guadalajara, which is probably why we have so many older gringos tottering down the cobblestone streets here,” Collins says. “Any other place, they wouldn’t get such good attention for so little money.” Besides, he says, the elderly can be well cared for in their own homes because help is so readily available, loyal and inexpensive. “Mexicans are very warm and caring by nature,” Collins adds, “and they value and respect the elderly.”

Retirees often find they are rejuvenated by the prevailing live-and-let-live attitude of Mexican culture. Foreigners give themselves permission to go a little eccentric–what the British call “going native”–painting their walls in bright Mexican pinks and yellows, for example, or wearing arty, bohemian clothes that might have been frowned on when they were dressing for their neighbors back home. One senses a zest, a youthful spirit won back after years of tending to corporate or family imperatives, a feeling of being freed by distance to become what their fantasy dictates. Some take to playing roles in a string of theater productions, while others start painting. (D.H. Lawrence lived and wrote in the Lakeside towns in the 1920s–just one milestone in Ajijic’s thriving art scene.) The entrepreneurial Norte-americanos open shops and restaurants as ways of keeping busy in the relaxed small-town ambience.

Walking along cobblestone Constitucion Street early one evening, I encounter two seventy-somethings in colorful dresses and long gray-blond hair who pull up to a curb on a cherry red ATV like two 18-year-olds. “Come on in,” they say as they stride into Tom’s Bar. “There are some fun people who come here, and they serve great sandwiches.” Tom’s is a small dive that has blossomed into a popular American and Canadian watering hole. Due to a satellite hook-up and a new television, it is the place to watch weekend games in the robust company of expats. I sit at the bar beside Fred, a 48-year-old building contractor who was passing through town and decided to stay. He’s been in Ajijic now for 17 years.

Many foreigners, armed with a social conscience and strong community action skills that they’ve imported along with their cars, throw themselves into the long list of organizations that have helped make Ajijic one of the most communally active towns in Mexico. “With all the charity and fund-raising events, the foreign community has launched a lot of programs that support crippled and orphaned children, old people, scholarship and health programs, and so much more,” says Teresa Kendrick, author of Mexico’s Lake Chapala and Ajijic: The Insiders Guide. Kendrick came from Austin, Texas, to Guadalajara on vacation 11 years ago, and stayed for a spell. Three years after that, at age 42, she moved to Ajijic, where she had found her Eden. “Take stray animals,” she says. “When I got here, there was an abject neglect of dogs and cats. Now we have an excellent pound, and animal-care groups train kids in school to care for animals. It’s common to see well-fed dogs with collars and leashes out walking with families. It’s been a really positive change.”

Gringo retirement dollars have had a huge impact, and the Mexican population appreciates the economic benefits, even if at times it means putting up with some angry or impatient Northerners who haven’t yet acculturated to the slower pace of life and different norms of behavior. “Unfortunately, we always get some rude foreigners with nasty tempers,” says Kendrick. “They want everything now and in the way it’s done in the States, so they don’t really fit in here.” But most people, she says, blossom in the warmth of the community and learn to adjust their expectations.

Ajijic’s mayor, Ricardo Gonzalez, believes communication between the two communities is ‘very beautiful because each side respects the other.” Foreigners, he says, have improved the area’s education, environment and health, especially in the area of nutrition, and have led efforts to clean up the town. “We have lived here for many generations so we don’t change too fast but we are learning many useful things from them that improve our lives,” he says. According to the mayor, people don’t feel envy towards the foreigners’ relative wealth, because that money flows into the economy. “We have full employment, and our salaries our higher than elsewhere in Mexico,” he says.

“The foreigners seem to like our Mexican traditions, and we appreciate that,” Gonzalez adds. For instance, even though it is an unusual customs for Northerners, the community still celebrates the Dia de los Muertos, he points out, rather than Halloween. “Both our groups are benefiting from living together and exchanging our cultural ways. So, yes, I think the foreigners are learning a lot from us as well.”

Article reproduced as it appeared in Delta’s Sky Magazine (February 2006) — written by Sky contributing editor Roger Toll, who lives in Park City, Utah, is the former editor of Mexico City News.

Well here we are already into August 2010. Christmas is only 4 short months away and starting next month the snow birds will start flocking into Ajijic, Lake Chapala.

If you are planning to list your property now is the time to start sprucing it up for the snow birds to view. There are many things one can do to make your property look presentable.

With the rainy season upon us the mountains are morphing into green velvet and gardens are growing rapidly. Having a well groomed and cared for garden is a huge asset so now would be the time to work with your gardener getting everything trimmed and manicured.
He will be able to help you as to what are good things to plant at this time to make your garden grow in gay profusion.

Look around your property to see that it is good repair and to see if a spot of paint here and there is needed.

Make sure your home is clean and welcoming and a wonderful product to make it smell nice is Febreze. Also plug in air fresheners are very good to keep your home sweet smelling. Most of us have pets and it is very important your home does not smell of the little darlings.

You can also make sure everything in your home is in good working order. Check all electric bulbs are working and your appliances are clean.

Having pretty pots of some of our lovely flowers on either side of your front door is a good idea as they not only look beautiful but the scents of these flowers such as (more…)

The economy seems to have a mind of its own and continues to fluctuate up and down depending on world situations and other nebulous events.

Here in Ajijic, Lake Chapala we do seem to be recovering slightly from the “recession”.

One of the sure fire gauges is that the Nueva Posada is busy again. The dining room and garden are full of happy eaters, the rooms and 4 villas are booked and they are catering many special events, weddings etc. Tour leaders are bringing interested parties back to Mexico and many activities are planned for the tourists along with meals, shopping and looking at properties in the area.

Houses are selling again which is good for both buyers and sellers and a feeling of impending optimism is permeating our magical village in the sun.

Of course, there are many other destinations for those looking to relocate or retire, but for many, Ajijic, Lake Chapala still offers the best weather, the lowest cost of living and the warmest people.

As I have said before Ajijic, Lake Chapala is not for everyone but some of things I have enjoyed over the last 16 years still hold true. It is a great place to raise your children – teaching them another language and giving them excellent values. You can be as busy with daily activities, year round golf, tennis, book clubs, card clubs, garden clubs, cooking clubs, learning Spanish, (more…)

Mexico’s Immigration Institute (INM) is introducing sweeping immigration changes in an attempt to save time, be easier for foreigners and to save the bureau money.

The major thrust of the changes will be online applications, new tourist forms and the issuance of credential-size ID’s for FM 3’s and FM 2’s.

Through this nationwide modernization program the INM seeks to end the arbitrary decision making that has prevailed at regional delegations for so many years.

Under the new centralized system foreigners can take their immigration requests to any INM office in Mexico.

Obviously, it is going to take some for all INM offices to get up to speed, as it were, and some office may still ask for additional documents not listed on the official INM web site for applications. (Tramites)

Chief among the changes launched April 30th is the obligatory online application system which includes all visa changes, FM extensions, work and marriage permits etc.

This means that prier to going to an INM office with all necessary documents one must first log on to: www.inm.gob.mx and fill out an application form that corresponds to their particular immigration request.

On the site they must find the appropriate form and fill in all the necessary fields. Once completed it must be sent electronically. They must print out this form which contains a reference number (numero de pieza) and take it together with all the required documents to their nearest INM office.

The INM web site lists all of the required documents for each immigration application (tramite) such as extending a tourist visa becoming and FM 3 (rentista) (more…)