Episode Summary
In this episode of The Expat Files, Johnny Mueller explores the practicalities of living in Latin America, focusing on the cost of living, car maintenance, and cultural differences. He shares a personal anecdote about flat tires and the use of inner tubes in car tires, a practice still common in Latin America but largely outdated in the U.S. Johnny explains the cost-effectiveness of using inner tubes compared to replacing rims, and highlights the cultural practice of buying used or repaired cars to appear successful without the high cost. He contrasts this with the U.S. approach, where mechanics discourage the use of inner tubes due to safety concerns, but Johnny suggests that in Latin America, the practicality and cost often outweigh these concerns.
Johnny also discusses the differences in car insurance and mechanic practices between the United States and Latin America. He highlights how mechanics in the U.S. often upsell and charge higher prices, while in Latin America, mechanics are more cost-conscious and treat expats like locals. He shares a personal experience of getting a flat tire, being helped by locals, and dealing with a mechanic who offered a cheaper solution. He also gives advice on protecting car interiors when visiting local mechanics, suggesting bringing an old bed sheet to cover the car's interior.
In another segment, Johnny discusses the importance of supporting local businesses over international franchises like Starbucks, Taco Bell, and Dairy Queen. He acknowledges that expats often struggle to avoid these chains, even though he encourages them to patronize local shops. He admits to being a hypocrite for recommending franchises that haven't yet arrived in Latin America, suggesting that expats should support local businesses instead. He then shifts to a broader discussion about finding one's talent, emphasizing that even if a talent seems boring, it can lead to recognition and success. Johnny uses the example of Rodney Dangerfield, who worked in a hardware store until he was 50 before becoming a famous comedian, to illustrate that finding one's talent often requires stepping out of one's comfort zone. He concludes by promoting his upcoming expat seminar, encouraging interested listeners to sign up for updates.
Johnny also discusses the cost advantages of building in Latin America, including lower labor costs, access to local materials, and reduced shipping and import taxes. He highlights the lack of basements and minimal use of heating, air conditioning, and insulation in many homes, noting that these are often unnecessary except in specific coastal areas. He contrasts this with the rapid real estate boom in Latin American cities, which he warns is unsustainable due to the influx of 'dirty money' and the lack of traditional real estate returns. Johnny then shares a personal anecdote about the extensive construction along the Pan American Highway in Guatemala, describing the upscale developments, new high-rise buildings, and the presence of large shopping malls, emphasizing the scale and density of the construction boom.
In another segment, Johnny describes his experience visiting a new residential building in Latin America, where he noticed a significant surplus of units and a lack of occupancy. He interacts with a real estate agent who provides inconsistent information about the number of units and occupancy rates. Johnny questions the real estate situation and finds the building to be well-equipped but largely empty. He engages in a negotiation for a lower rent and highlights the potential for a good investment, despite the challenges of the local market.
Finally, Johnny discusses the real estate market in Latin America, highlighting a residential tower as an example of the real estate bubble. He notes that the property passes all tests and is a renter's paradise, but warns that rents are higher for gringos on the tourist trail. He encourages listeners to consider his resources for planning their own 'Plan B' for expat life.
Topics
Cost of living in Latin America, Car maintenance and flat tire solutions, Cultural differences in car ownership and maintenance, Economic practices in Latin America, Car insurance and mechanic practices in the U.S. vs. Latin America, Personal experience with car troubles and local help, Tips for protecting car interiors when visiting local mechanics, Supporting local businesses, Finding one's talent, Expats in Latin America, Expatriate life, Personal development
Chapters
00:00:00 Opening 00:00:14 Introduction to the Expat Files Podcast 00:00:20 Overview of the Podcast's Content 00:00:26 Introduction to the Topic of Car Maintenance in Latin America 00:00:32 Personal Anecdote About Flat Tires 00:01:14 Use of Inner Tubes in Car Tires in Latin America 00:02:01 Cost of Rim Repairs and Inner Tube Solutions 00:03:32 Conclusion on Inner Tube Use and Cultural Practices 00:06:38 A Flat Tire and a Helping Hand in Latin America 00:09:16 The Cost-Saving Mechanic and the Gringo Advantage 00:10:49 Protecting Your Car's Interior When Visiting Local Mechanics 00:10:52 Supporting Local Businesses Over International Chains 00:11:16 Finding One's Talent and the Importance of Recognition 00:13:24 The Importance of Stepping Out of One's Comfort Zone 00:16:29 Cost Advantages of Building in Latin America 00:18:25 The Unsustainable Real Estate Boom 00:19:38 Observations on the Pan American Highway Development 00:21:47 Observing the Real Estate Scene 00:22:25 Inquiring About the Building's History 00:23:05 Revealing the Occupancy Rates 00:24:16 Negotiating the Rent 00:25:13 Assessing the Neighborhood and Location 00:27:00 Considering Legal and Practical Aspects of Renting 00:27:07 A Residential Tower Example of the Real Estate Bubble in Latin America 00:27:13 The Property Passes All Tests with Flying Colors 00:27:16 One Example of the State of the Real Estate Bubble
Transcript
Automatically transcribed from the original recording; names and wording may contain errors.
[00:00] South of the border down Mexico way That's where I fell in love when the stars above came out to play and now I wonder Hello there all you expat wannabes. I'm Johnny Mueller and you're listening to the expat files living in Latin America The show that tells you just what it's like to live work play and or retire down here in Latin America It's a mix of the good the bad the ugly and the great and it's all right here. So let's get started Alright, let's start off with a little Latin American boots on the ground story. It happened to me It could happen to you talk about cheap cost of living Well the other day I got a flat tire man if you live down here and drive you're gonna get a lot of those and Lots of those flat tires are gonna be because you hit a pothole
[00:47] So hard that it actually puts a dent in your rim or jams the tire hard enough so that it breaks the seal between the tire And the rim now for those of you older listeners you might remember a long time ago pre 1980s anyway car tires had tubes in them just like these days bikes and motorcycles still have inner tubes Well, the advent of tubeless tires was a really big thing You know, of course cart inner tubes have disappeared up in the states except for river rafting, right? However down here in Latin America using inner tubes in car tires is still alive and well as a kind of viable last resort Anyway, I know some of you are thinking especially the ladies. What the hell's Johnny talking about? Just bear with me a little bit I'm getting to the point because you see the more potholes you had and big two milos You know speed bumps that you smack into at high speed little by little the more damage you do to your tire rims
[01:38] Which is again why you never want to drive at night unless you absolutely have to and you know the road at least You know where the potholes and two milos are anyway after hitting a few of those really deep potholes and having your brains Jard you also put dents and dings in the rim of that tire that will happen Repeatedly and eventually there'll be so many little dents and dings in that rim your car mechanic or the guy at the flat tire Repair station are called Pinchasso stations. That's Pinchasso as in pinch They seem to be on every street Which is a good thing because mark my words if you drive regularly you'll get a couple of flat tires a year for sure By the way the cost to have a flat fix is around a buck and a half to two bucks unless of course as mentioned you've Hit too many potholes with the same tire and the rim is a little bit out around has a lot of dings and bends
[02:26] In it eventually it won't hold air. It won't maintain a seal any longer and forth with your mechanic or Pinchasso guy will say Sorry gringo your rims shot. Oh, they'll beat on those dings bangs and imperfections trying to make it round again But there's a point of no return when the metal is too banged up and too irregular to hold the seal anymore And the cost of a rim a used one maybe 15 to 20 bucks and a new one who knows you might have to get it from a dealer and depending on the model It might run a couple hundred bucks, but there's another solution That is your little Pinchasso or mechanic will say you need a rim or I can put in an inner tube Then it won't matter that the rim won't hold the seal. It's the inner tube doing it In other words, he's suggesting the cheap way out offering an inner tube Just like they did in the old days the old-fashioned way and the cost of that thing maybe five bucks
[03:14] And in the future if you happen to run over a nail or sharp object that does happen You know They just repair the inner tube like they do with an inner tube on a bike or a motorcycle with a little patch So then you'll have the choice you can get a new rim or a used rim Or do it probably 90 to 95 percent of latin car drivers do in that case Go with the inner tube. I know it sounds funky, but it works Now i'm bringing this up showing you some of the little differences here in latin america in a culture Where everyone even people drive in what you might consider nice new suvs Make a lot less money than their first world equivalents For example up in the states if you had a nice new bmw SUV, it might cost you 50 grand, right? Well, you'll see cars just like it down here in latin america, too But i'd say at least 70 percent of them weren't bought new through the local bmw dealership
[04:01] But were shipped down as rex in us auctions for half or less than half the price and repaired on the cheap down here In fact, I know a lot of latin professionals doctors lawyers engineers architects driving nice late model suvs and such And that's how they got their cars The truth is they could never afford 40 or 50 grand for a car not even on the payment plan But they can afford half or a third of that to make it look like they're successful and living large I mean it's all about the show, right? However, they're hitting potholes and speed bumps at high speeds too And believe me when the time comes that their mechanic or pincherso guy says man You need a new rim because I just can't pound out the dings and bangs anymore won't hold a seal Well, do you know what a rim for a late model bmw suv costs something like 400 bucks
[04:48] But a good old-fashioned retro inner tube five bucks and why not you can't see it only your hairdresser knows for sure Even a rim that's been wanged and banged a few times looks just fine from the outside So your little mechanic or pincherso guy will give you a choice five bucks versus 400 bucks Duh, as long as it looks and rides. Okay. Why not? However, here's the rub car mechanics up in states They'll tell you it's a bad idea to run just one inner tube in one tire when you've got four tires on that car. Why? Sets up imbalances they say especially at high speeds They'll tell you it puts more stress on the tire and the frame and the rest of the body might even set up some unnatural Vibrations, especially at high speeds. Well, that's what a mechanic up in the states will tell you
[05:33] That might be true if you drive like vin diesel or mario andretti. Is he still alive? Obviously up in the states. They want you to buy a new rim because they get a nice fat commission on it Hey, i'm not saying putting an inner tube in is a perfect solution It's not and I bet you could try that up in the states and gotten an accident And somehow it was discovered the insurance probably would deny the claim and put the blame on the inner tube But that ain't gonna happen down here If you ever read your insurance policy, which no one ever really does They all have exclusions like that and a million others too. Well as for me guess what i'm running on one inner tube right now Am I worried? Am I scared? Is it dangerous? Can anyone tell i'm riding on one tube? Can you tell when you're driving does it feel different in a word? No, am I suggesting you do the same?
[06:19] Hey, it's your call only remember down here in latin america when your mechanic or pichazo guy recommends an inner tube He's not judging you or inferring that you're a cheapskate. He's just giving you the choice He gives everyone who's in that spot and you know in a way it's kind of nice He's trying to save you some dough. Yeah, like that would ever happen. I put your mechanic up in the states All right. So here's what happened to me just a few days ago Hit a nice big pothole front left tire tire went flat instantly pulled over to the side of the road Got the jack out spare one of those stupid little donut spares I might add hate those things come to think of it I'd pay extra for a real spare but one wouldn't fit in a space where that donut is Bad idea i'd like to meet the guy who invented those things and clock them in the face
[07:04] Maybe I can only imagine how many people worldwide really hate that guy Anyway, I pulled the jack out want to take the tire up and guess what the pothole I hit was so deep had such a ragged edge That it bent one of my wheel lugs and I couldn't get it off And I knew if I really laid on the tire iron i'd shear it off and then what Now all this happened outside the city limits of a pretty big latin city a couple of blocks from the pan american highway Decent neighborhood nice people then soon enough and this can only happen in latin america people started gathering around Asking if they could help two cars even pulled over That's the gringo advantage, you know because I was way off the gringo tourist trail And well if you're a gringo you can count on the fact there's gonna be a lot of latin good samaritans out there
[07:51] Yep, and the two guys that pulled over were upper middle class with nice cars trying to practice their english on me So there I was stuck and I didn't want to force that lug and break it off then Where would I be? Ah, but then I remembered I have car insurance The cheap third party kind I pay about 150 a year for but it is car insurance which includes complete Sort of triple-a coverage actually it's sort of triple-a coverage on steroids So I speed dialed the number they were there in 10 minutes Realized yes, I had a problem and they towed my car to the nearest pincazo guy mechanic all covered on my cheap third party insurance He said yep, i'm gonna have to break this leg off and put a new one on I said, yeah, how long is it gonna take? He said maybe an hour But he said I have to send my guy out to get you an original replacement part
[08:39] I said how much he said probably around 10 bucks and as for my labor. He said Is 10 bucks? All right. He was negotiating with me and I thought hell 10 bucks. No problem I mean really 10 bucks won't even get you an opinion from a car mechanic up in the states in the end the whole job Uh a little under 20 bucks and then he said, you know I don't have to send my guy out to get you an original lug at the dealer I could get a universal replacement lug, but the problem is the nut won't match the ones you've got on the wheels It's a different style, but that only costs you three bucks instead of maybe 10 or so I said nah get the original. All right So there you have it the guy was trying to save me money all the way down the line Why because this is latin america and this happened way off the gringo tourist trail
[09:25] And I know when you're on the gringo tourist trail the mechanics will always try to upsell you same with health and car insurance When you're on the trail, they figure gringos have money. They want the best and they don't mind paying for it Meanwhile off the trail, they treat you like you're one of the locals They're not thinking about a two-tier system gringo prices versus local prices Of course, they would if they could but since there's no gringos around to prove it out It rarely happens. Oh, and here's another tip Anytime you take your car to a mechanic or a pinchazzo guy, whatever Make sure you bring along an old bed sheet that you're not using anymore I always do that then as I hand over the keys to the guy I throw that bed sheet over the driver's seat completely Why because these guys are just loaded with dust and grease and at some time along the way They're going to sit in the front seat of your car and just might in most cases will
[10:12] Mung up your nice upholstery Of course, that's not going to happen if you're at the service department of a real dealership like Honda, Nissan, Toyota, whatever Those dealerships are franchises and will follow first world protocol and bag up your seats Put a protective piece of paper down on the floor might even cover your steering wheel Of course when you roll out of there, you'll be paying first world service and maintenance prices Which in my mind are almost never worth it. You're better off going to a local neighborhood guy He can do just the same stuff for you at half the cost or much less But chances are he's going to look like pig pens latino brother So you have to protect the interior of your car yourself And I always say give the work to the local neighborhood guys if you can Just like I always say skip places like starbucks pay half or less and go to one of the local shops
[11:01] Give them your business screw taco bell starbucks dairy queen crispy cream and all the other first world franchises that have made it down here But you won't it's almost impossible for us gringos and expats to avoid those places completely Yeah So i'm a hypocrite too since I do recommend gringos and expats looking for a brick and mortar business to check out franchises That haven't landed down here in latin america yet So go ahead open a franchise make some money make a living even clean up But as for your own personal consumer choices skip them and patronize mom and pop shops and locally owned and operated places Whenever you can mixed messages there, right? So shoot me like my dear departed dad used to say you'd say johnny I know a lot of guys that are really good at stuff. They hate
[11:50] Could that be you are you good at something? You just don't like hey, you know, it could start out that way You're really good at let's say working with wood or making stained glass windows Or maybe you've got more than a knack for painting writing mathematics gardening Whatever you find you're really good at it, but it's just so damn boring Even so if that's the case in time, you'll find if you're really good at it The compliments will start pouring in people will want your stuff. You'll get orders often with notoriety comes dough And after a while you kind of put your own personal stamp on what you're doing Then funny enough as my dad also used to say if you quit doing what you're really good at More often than not you'll work your way right back into it You hear people talk about that all the time. They say man when I retire i'm never gonna work again
[12:39] I'm just gonna lounge it on the pool or golf every day. But here's the conundrum There's nothing quite like the feeling of a job well done Even if it bored the hell out of you while you were doing it And when it's really well done and people you don't even know start laying on the accolades and compliments Well, that'll take your feelings to an even higher level If there's one thing i've learned being here in latin america almost 30 years now and meeting lots and lots of expat Gringos some of them who stayed and love it others who've stayed a while and just couldn't get over that initial hump The fact is everybody who comes down here has talent most with many different talents Problem is if you're stuck on a treadmill, you might never get a chance to find out Though some are lucky enough to find out or stumble into their talent when they're young
[13:24] But that's generally not the case take a guy like rodney dangerfield a comic mentor to so many successful comics today For how internationally famous he was he said in an interview once he was doing comedy part time and working full time As a salesman at a hardware store till he was 50 something So then how do you find your own particular talent or talents? Well first you have to jump off the treadmill turn off the tv Quit watching sports or tone it down and start trying new things things you've thought about doing for a long time I've never got around to including traveling to foreign countries And i'm not talking about kancun playa del carmin or casta rica as those lovable canadians like to call it Do yourself a favor and skip the grango tourist trail Of course, you knew that already
[14:10] And one of the best ways to kick off that new phase in your life is to come down to one of my expat insider seminars The next one is going to be in july 2018 Provided of course uncle sam loosens up the leash enough to let you leave the country for a little trip Anyway, while I work out the details on the upcoming july seminar If you're interested in getting in on the early bird discounts and the latest info as I firm up the details Just send me an email the expat files at gmail.com with the word seminar in the subject box All right continuing on with a very recent second boots on the ground story This one not only showing you a great example of the cost of living here But also giving you an update and a very good idea of what's happening with that Ever expanding real estate bubble down here now you've heard me say just in the last few shows
[14:57] Then in almost all medium and large latin cities off the grango tourist trail It's a truly amazing renters market. In other words, you can rent houses apartments condos townhouses for way under market value In fact in some cases the deals are unbelievable as you'll soon find out Now I should point out for those of you who are thinking about building once you get down here You can still build practically anything you want to absolute first world standards with high grade materials for 30 to 40 bucks A square foot the caveat there is you have to keep your eye on the architect and the builder So they follow your plans and changes to the letter You know if you've ever built a house There's always changes some tiny and minuscule like deciding to add a few electrical outlets or moving the door
[15:42] A foot to the left or the right or you might find and this happens a lot when you're walking through your building as it's being Constructed you decide on some rather big changes add another room expand a few feet to a wall Raise the ceilings put in a loft make the garage bigger Whatever by the way here in latin america You can do that and not go down to any government office and fill out a thousand permission forms That means you make the decision and you go no government delays No garlic breath inspectors breathing down your neck, but you knew that already, right? Anyway, if you're there like a shadow pushing your contractor along you can easily build a nice first world style dwelling for 30 to 40 Bucks a square foot. So what's that mean? Well a brand new three thousand square foot house for more or less a hundred grand Sure. It's mostly about saving tons on labor costs
[16:29] But remember too the fact that here in latin america at the lumber yards You've got all kinds of amazing wood then you've got real marble and granite at four mica prices That's because all that stuff is available from local sources Which really cuts down on the shipping costs and there'll be no import taxes either So when you build a place you've got all kinds of different savings across the board along with the fact that Basements pretty much do not exist here except when used as parking lots in commercial buildings not to mention latin houses No matter how sophisticated do not have heating and air conditioning ducks nor do they use double or triple glazed windows Insulation or extensive weather stripping now all that might sound like a bad thing But you'll see when you get down here most of the time that stuff's just not necessary at all
[17:15] Except if you're living in low elevations around the coast where it can be extremely hot and you will need air conditioning And you'll have to provide some kind of insulation Maybe ducks if you're going to air condition the whole house But as mentioned in a few previous shows even gringos who can afford it rarely have central air and heating What they'll usually do if they live in the hot climates is have just one room or two Set up and rigged out for air conditioning. I'm the perfect example for that over the years I've had a few beach houses and of course in the day it was damn hot But I only had the bedrooms rigged out for air conditioning Now i've heard a lot of gringos living up north say if I had a beach house in latin america I wouldn't have air conditioning. Hell you got ceiling fans. That's what beach living is all about However, let me tell you you can't really appreciate air conditioning in a bedroom until you live down here
[18:04] Well and not just on vacation. I'm talking about the lowlands and coastal areas now Especially when the sun's beaten down on your roof all day That's why gringos and expats are utterly amazed when they finally discover the alti plano regions Meanwhile here in latin america, especially in the medium and large cities the massive real estate building boom continues on Unabated it's as if you bought a car and they forgot to install a brake pedal sooner or later You're gonna crash and it's gonna hurt In fact some older gringos and expats tell me it reminds them of the big building boom that went on in the 50s 60s And 70s in the states new office buildings malls subdivisions cranes everywhere And it's a fact every time I drive through or visit a medium or large latin city There are dozens and dozens of brand new high-rise mostly residential towers and office buildings going up
[18:55] Who's gonna buy or rent those things who's building them? Well wouldn't you know it it's money that won't go into the banking system because it's what they call dirty money And even if it's clean money, they don't want bank rates of return. They want traditional real estate rates of return You know 10 15 percent, but man these projects are heading into a black hole They're never gonna come out of which brings me to my next boots on the ground story Nope, I did not say boobs on the ground. I said boots on the ground though. That does conjure up an image of my grandma anyway Just last sunday a funny thing happened when I was driving out of guatemala city heading down the pan american highway for el Salvador now if you've ever been down here and driven that stretch, you know, it's an amazing sight to see I won't go into detail here But that's where all the upscale and first world subdivisions malls gated guarded communities
[19:45] Well, you could say it's upscale urban sprawl the new berbs where just a few years ago There was nothing but cattle coffee and sugar plantations Anyway when driving south from guatemala city as you go out the city limits You'll find it's like a 50 mile stretch where you see absolutely no slums all pretty much new construction or recent construction With hundreds and hundreds of high-end projects too and though during rush hour and stuff There's lots of traffic the projects themselves are not congested So you've got projects and malls etc mixed in with horse farms coffee plantations and altiplinal rainforests Hard to explain you have to see it now on that strip By the way around 10 miles past the guatemala city limits on the pan american highway You're out in the boonies suddenly you're in the wealthy wooded berbs with very nice gated guarded communities
[20:35] and The biggest shopping mall in latin america. I know I know you're thinking who gives a crap about malls You might even be completely sick of the concept by now However, that means if you live up and down the pan american highway on that 50 mile strip to el solver you've got access to everything Even places I personally hate places that are disgusting and I advise you to avoid like starbucks Ihop chucky cheese pizza hut tgifs applebees You know all those artery clogging franchises. Everyone's so addicted to up in the states But I digress aside from that every step of the way You'll notice gigantic building cranes and even more buildings breaking ground high rise residential buildings business towers New medium and high-end gated guarded communities by the way near that giant sprawling mall
[21:22] Which isn't as ugly as it sounds driving further south for just five minutes I noticed seven high-end residential towers that had just gone up in the last year and last sunday I happen to be not three blocks away from that high-end mall on an auxiliary road Just two blocks from the pan american highway when surprise surprise I saw in the parking lot of one of those high-rise residential towers. They were having an open house There was a tent in the parking lot balloons everywhere Milk and cookies coffee and champagne and I noticed there were way more realtors than interested lookers In fact, the parking lot was virtually empty with only two cars and two couples standing around Anyway pulled into the virtually empty parking lot got out of my car grabbed a cookie off the table and a brochure So it was a seven-story building with one two and three bedroom apartments for sale and rent
[22:09] Walked into lobby went up to the desk where a guy was sorting keys And I said how many apartments you got in this building and he said hmm I don't really know and I said all right How many are owner occupied how many are rented and he says I don't really know that either and I said How long you been working here? He said a year and a half and I said, how old is this place? He said well, it was opened two and a half years ago All right. Remember that he said two and a half years ago Now we're talking about a building that looks absolutely brand new But it was finished two and a half years ago Of course All this was going down in spanish and just then one of the realtors walked up behind me and I said Do you know that this guy behind the counter has been working here a year and he doesn't even know how many units exist in this building? Don't you find that strange?
[22:55] And that's when it struck me by the look on the realtors face that the info I was asking for Would not shine a favorable light on the real estate situation, but the realtor did answer He said we've got 70 units in the building with get this 20 occupied now remember this place opened two and a half years ago That's less than 30 occupancy and they've had two and a half years to fill it and it seemed to me They were lying about that number because as I walked through the place and checked out a number of floors I saw no one and heard no noises except one lone barking dog But man, it was a nice place very modern beautiful gym Beautiful rooftop pool a totally outfitted bar and karaoke bar, too But again, I saw no one in the gym. No one swimming
[23:42] No one the karaoke bar only the realtors the guy at the desk and two other couples being shown around Now these places were nicely outfitted and the kitchens real granite countertops. Of course, they had that crappy pressboard Cabinetry that you have everywhere these days but the countertops man They would have been worth a fortune in the states now, of course, the places were unfurnished except the three units He showed me the so-called models one two and three bedrooms completely furnished and man were they done up nice Then we got down to the nitty-gritty the pricing and of course I knew by looking around and hearing the numbers they were desperate So I asked what about the 1400 square foot three-bedroom unit? And here's what he said 600 a month which included this 75 a month maintenance fee
[24:28] That'd be water garbage pickup security, etc Oh, and by the way with a three-bedroom you get four underground parking places Then I said look there's a huge supply of empty units like this. You know it and I know I said, how about 400 a month He paused a while and then said I think we could come to some kind of arrangement Remember these places are brand new then we looked at the two-bedroom unit That was 1200 square feet and he said it was 450 maintenance included And I said, oh really I know I could get a place like this for 350 all day long Then I took out of water bills and said I pay cash, you know Hey, are you getting it? Are you seeing what's happening here? They've got a huge surplus of brand new houses high rises condos townhouses in a price range
[25:13] The average latin just cannot afford and believe me. This place is in a perfect location. You don't need a car Safe as can be you're more than close to everything. You're two blocks from the pan american highway Three blocks from the biggest upscale mall and shopping complex in all of latin america That means for good or for bad imax walmart tgif ace hardware gold's gym forever 21 probably 200 stores all upscale and landscaped beautifully within walking distance It's altiplano and of course way off the gringo tourist trail. That means you'll have to know a little spanish or you'll learn fast But it is upscale all the way now if you're gonna live anywhere in latin america You have to ask yourself the following questions. Is the neighborhood good and safe? Would you rather live in an apartment a house or a high rise?
[26:01] Would you like it furnished speaking of that? I said to the realtor, you know, I like the way you furnish those three apartments What if I wanted to rent one of those? Oh, he said no problem. We could do that I said how much he said, oh maybe another 50 to 100 bucks a month man The guy was practically on his knees begging me to take the place All right The next question you should ask if you're gonna rent does the place have a backup generator for electricity if the power goes up Does it have its own water? Well with a big cistern, so you've got an unlimited supply of water Is the place secure? Would it be difficult to rob or break into next? How far are the nearest grocery stores restaurants and shopping areas? Next how long does it take and how much does it cost to take an uber or taxi? Whatever to the closest international airport by the way, I say in this case during rush hour about an hour any other time
[26:49] Half hour next question I ask is it safe and well lit so you can walk around the premises and around the area at night You'll want to have very close banks and atms too. What about high speed internet hookup? Well, all residential towers have that you'll need a copy of the rental contract to show your lawyer and the rules on pets and security Deposits anyway with that beautiful mostly unoccupied residential tower. It's only two and a half years old It passes all those aforementioned tests with flying colors So that my friends is just one example of the state of the real estate bubble here in latin america It really is a renter's paradise So don't let them gouge you though if you're looking to rent on the gringo tourist trail things are a bit different Where gringos pile in with their dollars rents are always higher You've been listening to the expat files living in latin america
[27:35] If you need some help with your own plan b you can schedule a one-on-one phone call with me But first download my free plan b questionnaire at The new expat.com better yet if you want to get your plan b going from right up there in the states Just sign up for my nine hour expat essentials course Get the perfect plan b blueprint by going to the expat files.com Academy most famous