10 major tips from people in the know
So you want to retire south of the border? Advice from expatriates who’ve been there:
1 Date awhile before committing. Take six months to a year to get to know a town. Watch the seasons change. Run errands. Meet the locals. Explore. Many a remorseful overseas retiree has found out that the reality of living in a foreign country doesn’t match the romance of a vacation. Hold on to your U.S. home while you decide.
2 Resist the sales hype. Some real estate agents sell on fear: If you don’t get in now, they say, you’ll regret it when prices rise. But a cheap house is no bargain if you end up regretting a hasty decision. There is little consumer protection, reliable sales data or disclosure requirements in many foreign markets. Title problems are chronic. And remember that your investment won’t be as liquid as it is in the U.S. That’s because most transactions are still done in cash, limiting the pool of potential buyers for your house. Renting may be better for snowbirds or people with itchy feet.
3 Learn from the pros.
If you follow No. 1 and No. 2, you’ll have plenty of time to get the lowdown on just about any subject from locals and experienced foreigners. They can tell you how to register your car, who are the best contractors and plumbers, and which neighborhoods flood in the rainy season. Talk to your accountant about the tax consequences of a move and your insurance broker about health coverage before you make the leap.
4 Do the math. People assume Latin America is dirt-cheap. That may be true, depending on where and how you live. Big cities and areas with a lot of expats cost more. Some things in Latin America are more expensive than in the U.S., such as telephone service in Mexico. Pencil out a budget and look for a place to fit it.
5 Weigh the trade-offs. Many U.S. retirees look to Latin America for warm weather and a lower cost of living. But if you are easily frustrated by language barriers and a host of things that simply don’t work as well as they do in the U.S., you’ll probably be happier finding a warm, inexpensive locale in the States. You need a sense of adventure -- and a sense of humor -- to thrive in a foreign country.
6 Find your spot. Areas that cater to Americans bring U.S.-style housing, consumer conveniences, English-language publications and familiar social networks to plug into. They also attract crowds of fellow Yanks who dilute the Latin flavor that attracted many in the first place. Finding a place that strikes the right balance for you is key.
7 Talk it over. Moving to a new country can be isolating at first, and dealing with all the changes and frustrations can put a lot of strain on a relationship. You and your partner are going to be spending a lot of time together until you develop new friendships. Be sure you are equally committed to the move.
8 Try to learn Spanish. You may never speak like Queen Isabella, but being able to converse in Spanish will make life easier and enrich your experience. You’ll open yourself to a wider circle of friends and win the respect of locals.
9 Relax, and quit whining. If you do relocate, you’ll be much happier focusing on what you like about your new community rather than obsessing about what’s wrong. Latin America’s languid pace can be exasperating when you’re in a hurry, but the whole point of retirement is to get off the clock. Slow down and savor the pleasure of greeting strangers on the street, dropping in on a neighbor unannounced or lingering with friends over a good meal.
10 Remember, you can go home again. You may live at the beach a few years, then decide that a mountain climate is more suitable. You may have to return to the U.S. for personal or health reasons. Nothing has to be permanent.
