Rent or buy? The big question for ex-pats

I’ve already given you an idea about available real estate in San Miguel de Allende and Puerto Vallarta, as well as our European stops. Now, even though Leslie and I won’t be relocating to Mérida, I want to give you an idea of what you might find if you were looking to rent or buy here. But first let’s back up a bit and talk about real estate in general.

Buying real estate in Mexico is very different from in the U.S., and not just because all the paperwork is in Spanish. This article from the Yucatan Times explains a lot about those differences. It’s a few years old but still valid. And here’s something from our favorite magazine, International Living. I can’t tell when this was first published, but the information is good. If you want to know more, just Google “buying real estate in Mexico.”

The big question is whether to rent or buy. Most gringos, especially those who live nine months or less in Mexico and the rest somewhere else, prefer to rent rather than buy. Dennis and Sandy, our friends from Puerto Vallarta, are renters. They actually have a five-year lease on a condo with an ocean view in one of the fancy high-rises in Marina Vallarta. It works for them because they go back to Wisconsin to spend the summer with family. Lots of people do that. When the rainy season arrives, they head north. We’ve met a number of people in all three cities, however, who are just beaming because their Mexican permanent residency has been approved. Those are the folks who buy, and they find they can afford a lot more house here in Mexico than they can in, let’s say, Naperville, Ill.

Now let’s get specific about Mérida. One downside to this city is the condition of some houses in the historic area, where lots of gringos live. Leslie and I have walked past facades of some very nice houses, and right next door is a hovel or an empty shell. The upside to that, and in general to living in Mérida, is that you are in a Mexican neighborhood with Mexican people as your neighbors, rather than a bunch of ex-pats. Our friend Frank Krieger says that’s why he bought in Santiago many years ago — the local people are warm, friendly, caring folks. And once you get to know them, they’ll do anything at all for you.

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See the houses down the block? Nice-looking, well-kept homes suitable for ex-pats, but on the same block with this place. And there are many houses that look a lot worse. This place could be vacant, or there could be a Mexican family living here. Many locals simply don’t have the resources to upgrade, or even paint, their homes. 

Yet another caveat regarding Mérida is the plumbing, especially in centro. The pipes are too small to handle toilet paper, so you can’t flush paper down the toilet. Instead, you carefully place used TP in the trash. I know what you’re thinking, and you’re right.

Two of our new friends from St. Luke’s Anglican Mission, Harrington and Ricci, remodeled a house and put in new plumbing and an updated septic system. Their bathrooms are now up to U.S. standards, but that’s still rare except in the newer parts of town and in new construction.

And if you’re looking for a fixer-upper here in Mérida, you’re in luck. You can score a two-bedroom home in the Santiago neighborhood for less than $50,000 USD, some as low as $35,000 USD. At that price, though, expect to spend at least $100,000 or more to make it livable — to improve the plumbing and put in a pool. But if you do that, you have the house you want in a good location at a bargain price.

Okay, renovation is not your style. Check out this four-bedroom, three-bath home in Santa Ana neighborhood, with pool, for $229,000. Then there’s a more modest two-bedroom, two-bath house, listed as a historic property for only $129,000 — not sure where it is, though. Of course, if you want to pay more, you might be interested in this two-bedroom, three-bath home for $460,000 USD. It’s stunning, and it would probably list for at least twice that price north of the border.

Rentals seem a bit expensive, especially in centro, because rental and property management agencies — such as Remixto, probably the biggest — consider them “vacation rentals,” so they can run over $100 a night USD. The houses on Yucatan Premier’s website, however, are all long-term rentals. Most are in North Mérida, so a car would be essential but at least you’d be close to Costco! This site is interesting because some properties are listed in pesos and some in dollars. Always pay in pesos, if you can. Right now, the property listed for $16,000 pesos a month would actually set you back merely $864 USD a month. And if the peso drops again, it would cost less.

There are a lot of good things about houses in Mérida. Pasta tiles, for example. The next post will tell you what a pasta tile is, and will have lots of great information Leslie has compiled about the unique architectural facets of homes here.

A few photos to leave you with:

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I mentioned the Santiago mercado in the last post but had no good photos. It was a little after 10 a.m. on a Saturday here, so the mercado is not very busy. Most people shop early. The lady on the left is my favorite vendor. She writes down the prices and adds them up for the gringo. That keeps me from sheepishly handing her a $500 peso bill to pay for lettuce and tomatoes that actually cost $30 pesos or less.
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Doesn’t this look great? Those are Mexican squashes, and they’re very good. Leslie says they are like a cross between and winter and summer squash. The locals use them as a side dish and to make soups. I think they taste a bit like zucchini.