Exchange Rate Moving Up Agressively

The Peso to US Dollar exchange rate has continued to move in favor of the Greenback in recent weeks. Last week we sat at about $13.80 MXP to $1 USD.

The reason I am posting on this again so soon is that the upswing has been substantial in percentage terms. Just three months ago in June the rate of exchange was about $2 MXP lower per US Dollar at $11.65 MXP to $1 USD.


To put all of this in practical terms:

• If you were on a $2,000 budget in the early part of the summer at an $11.65 MXP/ $1 USD exchange rate....your cost of living has now gone down to $1,690 per month with the exchange rate swinging to $13.80 to $1 USD. If you are taking money out of US Banks to pay for your daily/monthly expenses then your cost of living is now cheaper than 90 days ago.  
• A person making a rent payment of $7,250 MXP per month just had their rent drop about $100 per month over 90 days. That means the rent payment just went from $622 per month to $525. Would you take that?  
• If you wire transferred $100,000 USD 90 days ago to buy a house, you now only have to transfer roughly $85,000 to buy that same house at this time. Home prices have not really appreciated that much if at all in that time.  

This is why you need to watch the exchange rate. That extra $15k will furnish your home, pay for a swimming pool, equip your home with solar or pay for the cost of digging a well. There is alot you can do with 15k in this market. Just things to consider.

Saludos
JEB

New Driving Rules In Merida

Yucatan’s legislature passed a new law in February 2011, with a set of rules that takes a mere 288 pages to describe. A brief scan of Yucatan’s new "Rules of the Road" offers definitions of cars, passengers, pedestrians, underpasses, and even fire hydrants, with additional sections on who is allowed to install topes, what you are supposed to keep in your Emergency Road Kit, approved types of cellular phone usage and another 250 or so odd pages on baby seats, helmets, insurance requirements, emissions testing and drug testing. We now have laws governing everything from "no red lights on top of your car" to the red lights required for night-time use as part of your emergency kit, and from fire extinguishers to fines based on one-hundred times the Minimum Wage.

There is even a whole section on the special officers in Bright Yellow Vests who will help guide us through the first 180 days of Yucatan’s plan for implementing the key points of the new road rules, in what looks to be a lifetime’s worth of Spanish-English translations of legalese.

Where The Rubber Meets The Road Rules

So what we all want to know is the nitty gritty, the details, where the rubber meets the road (especially this one!), where the tough get going while the meek go home, whether to run with the big dogs or stay on the porch, to be or not to be… yes, there are a lot of questions, and that is only one of them.

After reading it through, we think this is the bottom line: There are so many details in this 288-page law that it staggers the mind to imagine any single article like this one that could accurately and completely describe and condense what may be as many as 4,050 details that are catalogued here.

Frankly, there are so many requirements and miniscule details covering Peritos (the name for the special police officer that comes out to investigate auto accidents. These officers are specially trained and work for SSPPE del Gobierno del Estado de Yucatan) to peatones (pedestrians), that Yucatecan officers could study for a year to learn just one half of the rules they are supposed to enforce. Not to mention that it could take a decade to get a state full of laid-back Yucatecans to comply.

Read more here

Apostilles for those moving to Mexico

Note to Readers of the Blog: I am reposting this information as I think it warrants doing periodically. The info you are about to read is very important for those making the transition to Mexico. Please read and take to heart. Muchas Gracias Amigos y Amigas!!!!!

What is an apostille and why do I need one as an expat moving to the Yucatan? Good question. I wish we had known about this before we moved down. If you are married and/or have children that will live with you here in the Yucatan and you want to come down and apply for FM2 or FM3 residency visas you are going to need to have your marriage certificate and all of your children's birth certificates apostilled by the Secretary of State in the documents state of Origin.


An apostille, in the most basic terms, is a notarization that is recognized internationally by all foreign governments. It is recognized by international law. Your bank notary does not have the power to issue an apostille. Only the Secretary of State in all 50 US States or appointed government agencies in your country of origin has the power to issue an apostille. Check out the following link: http://www.ehow.com/video_4872231_apostille_.html

Let me give you an example of how this applies to our family. My wife and I met and married in the state of New Mexico in the US. We also had our first son in New Mexico. Our second son was born in Texas because that was where we were living when we had him. I have to order an apostilled birth certificate from Vital Records in New Mexico for my oldest son. Then Vital Records ships that birth certificate to the Secretary of State in New Mexico to have the document apostilled. The Secretary of State then ships out the apostilled document, in this case my son's birth certificate. We go through the same steps with my youngest son with both Vital Records and the Secretary of State's office in the state of Texas.

If you come down to the Yucatan and you have a marriage certificate, divorce decree or birth certificates that do not have apostilles and you want to apply for residency visas (FM2 or FM3) then you are going to have to send back for them in the US or Canada and pay the international shipping rates via FedEx, UPS or DHL. Word to the wise. Get this taken care of in advance. No one ever told us this before we came down and we did alot of research on necessary documents before we came down. Aargh!!! We just don't want you pulling out your hair unnecessarily. Hope this helps.

Building a Home in Merida

Is it cost effective to build in Merida, Yucatan, Mexico? Absolutely. Both from a personal and business perspective it makes absolute sense and is easy to do. Let me give you the numbers:

Land: 300 sqaure meters - $25,000.00. USD
Construction cost: 200 square meters - $65,000.00. USD
Total Cost of land and Construction:  $90,000.00 USD
Closing Costs: $5,000.00 USD (estimated)
Total Cost: $95,000.00 USD
Sales Price $125,000.00 USD
Profit/Equity $30,000.00 USD

If you want a pool add another $5,000.00 USD. On a three hundred square meter lot, with two story construction, this would still leave you with a nice size backyard.

The homes pictured to the left are in Hacienda Zodzill Norte, just north of where I live. Land in that Colonia area sells for about $1,000.00 PESOS per squre meter. That is about $82 USD per square meter. Very affordable. The home on the far left was sold 6 months from the date construction began. Construction time usually runs 3 months. Average time on market in North Merida from the day you start construction is 6 months or sooner.

All in all the real estate market is very healthy in Merida. It is beyond anything you see in the United States at this time. Many people are moving to Merida from all over the nation of Mexico. We hear of people moving here from Villahermosa, Mexico City, Monterrey and even Cancun. The economy here has been growing, it is considered very safe to live here and we also have 11 colleges and universities inside the city. The people of Merida are becoming very educated.

From both a personal and business perspective it really makes sense to build here. It is very common for homebuilders to buy lots that will accomodate 3 to 10 homes and just build one or two at a time until they completely build out the project. You don't have as many large established home-builders here like you do in the states. You have some but not as many. I think it is a very good business opportunity for those looking to invest in emerging markets.

If you are interested in exploring this side of Meridian business send me an email. We can help you get started. We already have a construction and legal team ready to help you with all of your business needs (Realtors, Attorneys, Architects and Construction Managers).

Look forward to hearing from you. My email is jayblackshear@yahoo.com.

Caio,
Jay

Mexico Postal Service

Mexican Postal Service 

Regarding the Mexican Postal Service (Servicio Postal Mexicano), there is an open debate about its effectiveness. No self-respecting business that places much importance on the timely distribution of its correspondence would rely on it for anything other than mass-mailings. Nor do most of its private citizens.

Couriers in Mexico

Companies tend to have propios, in-house messengers, for the delivery of important correspondence and paperwork of any kind within the city limits. Invitations for important functions are also hand delivered, although usually by a specialized delivery company, for about 8 pesos per delivery. Remember that most require up to a week to make the delivery from the time that they receive the material from the sender. For intra-Mexico correspondence a local carrier, such as Estafeta, usually does the trick.

Finally, for international deliveries, any of the well-known international companies work well, especially in the "overnight" categories (DHL, FedEx, UPS). What we are saying is that if you really want to get mail to someone in Mexico, scan and email the docs, fax them or send local deliveries by a local courier, out of town mailins by one of the big three previously mentioned.

Personally, I have never even seen a Mexico Postal Official deliver anything to my house nor have I seen them out driving around on the streets. Also, as it pertains to important bills like cable/internet and electricity and water, those companies have there own reps/couriers deliver their bills to your mailbox. What does that tell you? And even then you may not get the bill until the day it is due, or even the day after, if even at all. My advice...... keep a copy of your account #'s on each of your utilities and pay them monthly or bi-monthly (electric and water) at the pay stations at the mall (Grand Plaza) or at your local OXXO. Or you can try to pay them on-line.....if you can figure it out.

Don't get me wrong....it is very easy to pay your bills. You just need to plan on doing so when you are at the mall or in town if you live on the beach. Word to the wise.

Caio,

Jay Blackshear

Updated Fees for FM3 or FM2 Visas

The fees for FM2 or FM3 visas have been updated at the Mexican Immigration Office as of 2010. To apply for an FM2 there is a one time application fee of $669.00 MX Pesos and a yearly fee of $2,800.00 MX Pesos. Both fees are charged by the immigration office for each person applying for a visa.

The fees for the FM3 are as follows: Yearly fee of $1,294.00 MX Pesos and a one time application fee of $491.00 MX Pesos.

Each visa is good for a period of 5 years but must be renewed annually. When renewed you must pay the yearly applicable fee again but the application fee that is paid the first year is not charged again. That means that if you have an FM2 or FM3 right now and you need to renew it, you will pay either $2,800.00 or $1,294.00 when you renew each visa. You will not pay the initial application fee again. Hope that makes sense. Email me with questions at jayblackshear@yahoo.com.

Saludos,
Jay

What Is The Difference In Visa's

What is an FMM Visa?
The FMM VISA is the Short-Term Non-Immigrant Visa that every visitor receives upon entering Mexico. Short term visas are intended for visitors to Mexico who come to stay for 6 months or less. Usually these visas are given to tourists and business travelers on short-term business trips. FMM visas are issued by airlines and are also available at ports of entry.* For trips of longer than 6 months, a non-immigrant or immigrant visa is required-- see the Questions and Answers below for details.

What is an FM3 Visa?
The FM3 VISA is the Long-Term Non-Immigrant Visa.
Mexico provides the FM3 Vsa, which is a renewable long term (more than 6 months) permit which gives non-immigrant temporary residency status to the holder. This means that it gives a person the right to live in Mexico (under the terms set out in the visa) but it does not lead to, and cannot be converted to, a visa leading to permanent residency.

There are various categories under which FM3 visas are granted, and these relate to the activities you intend to undertake while in Mexico. Under the terms of the FM3, you are authorized to only undertake certain, specific activities which may be lucrative or non-lucrative, depending on the visa's classification.
One of the criteria that the Mexican authorities require for the issuance of a FM3 Visa is that the applicant prove that they have 'sufficient funds to sustain themselves while in Mexico' and/or a proven steady income. There is no official minimum or maximum amount -- every application appears to be dealt with on a case-by-case basis. Proof of funds and/or income is usually requested by means of bank account statements, proof of investment income, credit cards, or a combination of these.

Once applied for and granted, the FM3 may be renewed for an additional four years (for a total of five years). After this period, a new FM3 may be applied for and, if granted, will serve for another (max) five year period, renewable annually.

The FM3 visa may not be exchanged automatically for a visa leading to permanent residency (FM2). The FM2 visa must be applied for separately. Any years accrued under a FM3 visa are not transferable towards FM2-residency status (see FM2 Heading, below, for details).

What is an FM2 Visa?
The FM2 visa is an Immigrant Visa, intended for people seeking permanent residency status in Mexico or those seeking Mexican Citizenship.

There are various categories under which FM2 visas are granted, and these relate to the activities you intend to undertake while in Mexico. Under the terms of the FM2, you are authorized to only undertake certain, specific activities which may be lucrative or non-lucrative.

You must hold an FM2 for a full consecutive five-year period before you may apply for "immigrant" status or Mexican Citizenship. You do not need to have held an FM3 visa before applying for an FM2, and any years you may have accrued while living in Mexico under an FM3 permit do not count towards your five-year FM2 qualification period.

If your goal is to seek long-term residency in Mexico, or to become a Mexican Citizen, you should apply for FM2 status (or request a change of status from FM3 to FM2) so that your time starts counting towards the qualification period as soon as possible. You may apply for a FM2 visa while in Mexico and in possession of a FMM (Tourist/Business Visitors Visa) or a FM3.

Following the five-year qualification period, you may apply for full resident status. When your full residence status has been accepted, you are entitled to full rights (e.g. access to IMSS sickness pay) and responsibilities (e.g. pay income taxes) as any other Mexican Citizen, with the exception of the right to vote. Foreigners are not allowed to involve themselves in "internal Mexican affairs" and they may not be post-holders of any public office.

When your full residence status has been accepted, you may also begin your application for Mexican Citizenship, although you do not have to do this; you can remain a 'resident alien' on a FM2 visa. Upon receiving immigrant status, you will receive a document that looks like a Mexican Passport (the actual FM2 visa). Under Mexican law, you do not need to surrender your national passport. You may remain a resident-alien or apply for Mexican citizenship. You will keep your original passport, which you will use when you return to your home country, for visits, or when returning home permanently.

If you hold a FM2 visa and stay outside of Mexico for longer than 2 years, or for 5 years in any 10 year period, you will lose your permanent resident status in Mexico.

Contact Us