Moving on (up)

When we first mentioned our intention to retire to Mexico some nine years ago, we faced a variety of reactions. Family thought we were joking, or crazy, or both. Friends were astounded, and couldn’t understand. A few of my work associates (who were familiar with Mexico–so to speak) congratulated us on an excellent choice, but most told me I was too young to retire. Some told me to hedge my bets, since I would undoubtedly be back soon, having “missed the game.”

Despite the concern and astonishment, we bought the house in Mexico, and (literally) counted down the days during those last five work years, waiting to retire early. We sold nearly everything, loaded up the FJ with the family dog, and set out for the retired expat life. Four years later, we have no regrets. Expat retirement has been a wonderful experience, and even the pandemic has only reinforced our belief we made the right choice.

But change happens, as they say. You get older if not wiser. Things once new become commonplace. So we decided to put the house up for sale and move again. Now don’t panic: no, we’re not returning to the States. We just finally decided to get another place here in Ajijic, but this time a house with a view. And what a view!

The home selling and buying process in expat land is quite familiar. First, there are numerous real estate agencies here that specialize in expats, often staffed with former NOB real estate agents. Many homes are priced in dollars, although the final sale must be made in Mexican Pesos, so there is the possibility of an exchange rate issue, but that is understood going in. One complication is that Mexico has a capital gains tax on properties, which could result in a large tax bill if your house really appreciated or if these is a major change in the dollar-peso exchange rate. However, Mexico also has an exemption for primary residences (you can claim it once every three years).

You select an agency, sign a listing contract, have showings and put up a “For Sale” sign. Many people don’t stage their properties, but some do. You make an offer, there is some negotiation and counters, and you go “under contract.” You agree on a settlement date, the lawyers (abogados) do their thing and make sure the property is free of liens, not in ejido land (indigenous lands can’t be transferred), nor is it in the federally-protected coastal lands (a legal hangover from way-back-when the government thought the US might invade again, now resolved through a long-duration fideicomiso or bank trust), and –presto–you sell/buy a house.

What’s different? Many expats move down here for life, furnishing their homes after arriving, so it is not uncommon to find properties for sale fully furnished (and by that I mean fully, like silverware and linens and tchotchkes!) You’ll find people buying homes sight unseen, from far away NOB, based on a local friend or agent. Some people put homes up for sale, over-priced, then leave them on the market forever. The cost of maintaining a property here is minimal, so there is little incentive (if you don’t need the cash to buy another property) to do a fire-sale price reduction. Mexico doesn’t have a mortgage system, so you bring cash to the table. Our agent told us on more than one occasion he had faced someone walking in to the settlement office with a suitcase full of pesos. It’s possible to arrange private (i.e., personal) financing but the interest rate runs north of ten percent with a guaranteed year’s interest.

We just started thinking seriously about a new place, mountainside with a lake view, a few weeks back. Then we stumbled on just the right place, which greatly accelerated our efforts. We are midway through the process, having put our home on the market and having recorded a contract to buy the new house. Now we are “on the clock” to sell or arrange financing to complete the purchase. Somewhere in there we need to arrange the settlements, schedule some movers, and do the local move. Oh, and we’re visiting the family & friends in the States twice in the next few months!

If all goes to plan, what changes? We’re going from a small gated community (seventy homes) to an even smaller gated community (thirty homes). We’re moving from the west end of Ajijic and practically on the lake to the centro, but right up against the mountains. Losing a walk to the lakeshore, gaining a million-dollar view and las brisas (breezes). Trading the sounds of the countryside (cohetes and roosters) for those of the village (cohetes and gas trucks), although an out-of-the-way part of the village. We’ll be part way up the mountain and just steps away from the Tepalo trailhead.

Friends always characterize our current, single-storey, two-thousand square foot home as “cozy” and that it is: from the central courtyard you can reach any room in under ten steps. The new place is, well, a little different. It’s six-thousand square feet on three levels (with an elevator), each level the same size as our current home. Judy and I joke that we’re buying the new house just for the main level, and the guest level and garage level are bonus spaces.

Here’s the sales video for our current home:

I’ll update the blog on the move, the closing(s), and especially the new house as things progress!