#692 – Earthquakes, Construction, and Expat Life in Latin America

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 up 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 All right You're having a nasty spell with your big hurricanes and we've had some monster earthquakes down here So which is worse and which would you rather have or not have as for big earthquakes in the last year or two? Anyway, we've had three very unusual. I'm talking about Mexico and Central America now my preferred stomping grounds

[00:52] At least for the time being the fact is it's been common knowledge in most Latin American earthquake zones That's most of Central and South America Mexico, too. By the way, I'll repeat this again. Mexico is not Central America It's North America. Look it up. You'll see this too. I don't know why people think Central America Well, I guess I do know why you were asleep or partying that day in 11th grade geography class Anyway, it's always been said that in earthquake zones in Central and South America The big ones come along about every 25 years. That'd be anything over a six pointer on the Richter scale However, in the last year or two, they've been coming with much greater frequency than that Take that huge 8.2 earthquake that just happened in Mexico about a week ago Any eight pointer is massive and last one Mexico had was a hundred years ago

[01:40] But globally there's an eight pointer somewhere on the planet about every year You might remember a couple years ago. Chile had an eight pointer And those things are massively destructive even so if your house or where you're living is built to anti seismic standards There'll certainly be a lot of shake rattle and roll and it'll scare the crap out of you and the dogs But the building won't survive though. Certainly a lot of your plates glasses and knickknacks won't so anyway Just the other day when that big eight pointer hit Mexico Everybody and I mean everybody in Central America felt it too I sure felt that it lasted around a minute and a half Whereas the last big six and seven pointer I was in lasted only about 30 seconds That's the difference between a six seven and an eight not to mention the larger the earthquake the bigger and more frequent the aftershocks

[02:26] And there were plenty after that big eight pointer now You probably saw in the news that there was terrible damage done in Mexico But keep this in mind Mexico hasn't had a huge one like that for a hundred years So it's been estimated that about 95 percent or more of all the destruction happened to homes businesses and infrastructure That were constructed before around 1970 with a high percentage of the damage structures built on the sides of hills and mountains and valleys In other words many of them were precariously perched well before builders and contractors Started routinely building anti seismic earthquake resistant structures now before the 60s and 70s Not that they didn't make nice strong solid buildings. It's just that there was no consistency There were just as many buildings that were rock-solid as paper-thin junk

[03:14] And you know I was checking out the destruction on the 6 o'clock news myself and on Mexican TV stations It just wasn't the 6 o'clock news. It was 24 7. It was a huge event I noticed and it was easy to see if you knew what you're looking for in most all cases when they showed a pile of Rubble I was not seeing rebar reinforced concrete I was seeing age-old even ancient adobe style construction And you know throughout Latin America and many parts of the world Adobe block construction has been and even is now the material of choice for the lower classes poor and very poor Why because it's basically sun-dried mud No cement or rebar reinforcement at all Just mud water clay and some hay mixed in as sort of an organic rebar

[04:01] And by the way many thousands more very weak structures made out of a low-fired kind of terracotta brick They're set in mortar, but no metal rebar. That's why when a big shaker hits that stuff cracks and crumbles And since there are many poor and lower middle class neighborhoods made exclusively of that material That's where most of the damage is done and what you see on the 6 o'clock news Especially in very old lower class neighborhoods and many of the rustic neighborhoods way out in the boonies Naturally, those are the sites the news teams are going to focus in on when they're doing their reports And that's what you're going to get to see on the nightly news up in the states because that's the most dramatic Now that's not to say if you're living in a fairly modern nicely built anti-seismic structure There'll be no visible or structural damage at all, especially when you're talking about a six seven or an eight

[04:50] The truth is if you're going to live down here You have to get used to cracks in concrete and occasional fissures and streets and sidewalks that could swallow you if you're not paying attention I know you've got your share of sidewalk cement wall and garage slab cracks up where you live too People say it's from the foundation settling right? Well down here it's from that and the occasional earthquake In fact, I remember a few cases of my friends building new houses up in chicago And unfortunately once in a while cracks in the basement wall or driveway would appear in a year or two And the owners would get really pissed off the next thing, you know They're calling up the contractor and bitching come and fix this or i'm gonna sue you Well down here when that happens and it will there's no one to sue and if you did go to court

[05:35] The judge would laugh at you So that means down here driveways patios and walkways around your property will also develop various fissures and cracks And you just have to put up with that stuff However, when a crack becomes a fissure your gringo sensibilities will get the best of you and you'll probably call up a contractor Have them bust out the slab and put in a new one However, you're not down here to let the small stuff drive you crazy. So look out for that So anyway, southern mexico got hit very hard lots of damage That means there'll be thousands and thousands of construction jobs, etc for deported illegal alien mexicans Silver lining you be the judge what happens next? Well during the rebuild They'll be making those structures anti-seismic. So the next time they have a big shaker

[06:24] Hopefully many years from now fingers crossed and wishful thinking there'll be few lives lost and very little structural damage That's the pattern here in latin. America. For example, Costa Rica, Guatemala, Nicaragua, Chile and El Salvador All had big six and seven point earthquakes in the last 20 or so years And in those countries pretty much everyone 30 or 35 years and older Remembers those events. Well, so in those countries the big reset button was hit 20 or so years ago They had their crappy construction wake-up call and nobody wants to go through that again They've all rebuilt into much safer and more modern standards even in many but not all of the very poor districts Which is why in just the last year when guadamala was hit with a 6.5 and a 7.2

[07:12] Very few structures crumbled and only three or four people died Whereas when the last really big one hit I think it was in 1986 Whole neighborhoods were wiped out and a couple hundred people died Yep, earthquakes are nasty But they tend to clear the playing field of badly built structures and they scare the hell out of people in the process So when they rebuild they definitely up their standards because they don't want to go through that again And that's just what happened in mexico They haven't had a big earthquake for a hundred years. No one alive even remembers the last big one So as the lower middle class and poor populations grew they expanded haphazardly with cheap and crappy materials on very cheap land In many instances unsuited for building and though zoning laws do exist even in the lower middle class and very poor areas

[08:00] They're rarely enforced and people often just build without permits or any kind of oversight But I can guarantee in a year or two when those places have been cleared and rebuilt There'll be a lot more concrete and rebar and thus safer when the next big one rolls through And you know What's always surprising to me is big high-rise commercial buildings and residential towers never seem to come tumbling down Even though when you stare up at them, they look pretty fragile That's because specialty international construction companies come in and put those things up They strictly follow international construction guidelines Though local companies could do some of the finish work. It's the big transnationals that do the heavy lifting That said there are lots of 10 20 30 even 40 story high rises in earthquake zones

[08:48] And you know every time i'm in one of those buildings i'm thinking i'd never want to be in one of these during an earthquake yet Some people live and or work in those things eight hours a day and even though you never hear of them being damaged personally I'd never want to live in one myself In fact, I prefer and feel much safer in a fairly modern two at max three story building But that's just me by the way I was once in a very high rise building in japan and in the lobby There was a scale model of it and I noticed here this 70 or 80 story building was designed to sit on some Fantastically giant rubber grommets and underground shock absorbers and springs Man, if that didn't scare the hell out of me talk about blind faith, huh? But then again, those are the guys that saved the planet from godzilla. What is it four times now?

[09:37] By the way, I know a number of gringos and expats who live in high rise towers I have to check in with them to see how they fared during the big one last week I haven't heard from them. I guess so far so good All right enough said about that except to say when you move here to latin america earthquakes are pretty much a fact of life And hurricanes not so much unless you live on the caribbean coast But even then you could build your house to withstand andy hurricane In fact looking at the news lady when I see the damage done, especially in the caribbean islands again You see it's the poorly constructed bamboo laminate and thatched roof structures that end up being piles of rubble The one mistake I see so many people make even wealthy people living in the islands They make a nice solid cement concrete rebar structure And they top it off with a very light and breezy bamboo wood metal laminate or thatched roof

[10:28] Sure, they look nice and keep with the tropical theme But when a hurricane comes through there goes the roof and everything inside gets ruined But even so if you're well protected with a concrete roof There's always a chance that an uprooted coconut palm will come sailing through your kitchen. Yep. That's happened to me Regarding beach property, gringos and expats love anything near a beach You have to understand that sometime or another you're liable to get flooded out The good news is no one puts basements in houses on the beach or pretty much anywhere in latin america So if and when you end up with ocean water in the kitchen or living room We're talking about cement tile and concrete structures here. So no real damage done except perhaps to your belongings and furniture

[11:14] Many times it's just a matter of repainting when the thing dries out. Oh, by the way talking about driving a point home Your long-time listeners will remember i've always poo-pooed the idea of having carpets and rugs in any house here in latin america Number one for the bugs in humidity number two if there is any water damage at all Especially salt water from the coast you can kiss your carpets. Goodbye. There's no way of bringing them back. Remember It's salt water we're talking about. I know I know up in the states You've got wall-to-wall carpeting especially up in those cold climbs You're used to it feels good on the bare feet and all that Nevertheless not recommended at all here in latin america Sure, there are plenty of carpet outlets and such you can go nuts and get any style or brand name you want Besides with all the fantastic and incredibly cheap tile you can get down here as well as the beautiful hardwood flooring and trim

[12:05] Why carpeting however and predictably many of the upscale latin gringo wannabes that I know Have installed wall-to-wall carpeting. Why because it's the gringo thing to do Everyone's got it up in the states. Oh and one last thing about carpets and rugs That's not to say you can't have the odd nice artistically tasteful throw rug here and there You know something nice under your dining room or coffee table At least then if you're expecting a hurricane you can roll it up and shove it in the closet But really do yourself a favor and skip the wall-to-wall carpeting. Oh, and here's another mistake I see a lot of upscale latins making gringos too when they're looking for a beach house There's one simple thing you should always do whether you're buying an existing beach house or building Always ask the neighbors especially the old-time gardeners and guys with their machetes

[12:55] The old-timers who've lived there all their lives ask them to point out the worst case high tide or storm scenario And have them point out on your property or the property you're thinking about buying and building on The farthest point inland where they've seen the water creep up Not the average high tide line everybody knows that i'm talking about the worst case High water line then when building your house unless it's going to be on concrete stilts and a lot of mar You know build it at least 50 feet inland from the ultimate high water point or do as some smart gringos have done Bring in the earth movers and do a little terra farming and give yourself some artificial high land to build on Now I know when north americans think about flood plains All they do is go down to the local municipality and ask for the topographic map laying out the 50 and 100 year flood plains

[13:46] However in latin america, you're just not gonna find maps and data like that If you go down to a latin american municipality and ask him for a 20 and 50 year floodplain map They're just gonna look at you nod smile a bit and probably be thinking What's that crazy gringo on about so it's buyer beware And you have to investigate that stuff yourself However, your builder or your architect will build your house or whatever anywhere you want on your own land You're the boss. You're writing the checks or forking out the cash So they're not going to argue with you even if you've picked a difficult inconvenient or perhaps real dumbass spot to break ground Bottom line you have to do your own investigation about such things and if you don't speak spanish Well pay someone who does to do it. All right moving on

[14:32] Looks like i've got an email here from doug d Looks like it's reasons 2460 through 70 to get the hell out of the us. He says Hey, johnny was traveling to london today and I exchanged a small amount of money So i'd have money for taxis, etc when I land When one of those combio booths a money exchange place at the airport Once there I was required to allow them to scan my passport To exchange more than a hundred dollars us Yes, I know the exchange rate at airports is a ripoff But this was the last minute trip for work and I had to do it I asked them why why they had to scan my passport to change a measly hundred bucks They said it was now required for everyone leaving the us

[15:21] I asked required by whom the lady looked at me sort of sheepishly and said why the us government? So johnny, can you think of any reason they would need to know about little old me and my measly hundred bucks? Love your show. Thanks for the information you share best doug Well doug, I do know the primary reason they need to know every little thing about you and every other us citizen The us government does need to keep tabs on all its sheep They want to know exactly where we are and they don't want any one of us to escape at fleecing time I know it was a rhetorical question and you knew the answer already Meanwhile, the greater majority of people out there don't want to hear or think about it and have a hard enough time Just plugging away on their treadmill Of course, most people listening to the show right now are actually thinking about jumping off that treadmill, right?

[16:11] And doug's little example There's just another reason why you should be engaging that plan before it's too late Now most of you even if you've got a plan b in action or thinking about it Have never really been thinking about the worst case scenario But in the last couple weeks with these massive hurricanes and millions without power and water Putting together a little bug out bag and heading for the boon. He's just ain't gonna cut it You know that have you seen the photos of those gigantic traffic jams heading out of the city? That's what you have to look forward to and worse Look, we're not just talking about natural disasters here either. How about massive unnatural disasters? Like that equifax debacle. You might think it's nothing now But just wait till someone steals your identity. That's what that hack's all about, you know Well, thankfully because of the extreme lag time here in latin america if you're living down here

[17:01] There are no such credit bureaus or credit scoring companies down here If you're going for a loan or trying to get a credit card since there are no real credit checks outside of individual banks You'll have to build up your credit profile in a step-by-step process Or do like so many of us expats do just pay cash I mean really who needs credit what you need is a sponsor a reference. That'll be your latin lawyer He'll sign as what they call a fiedor when you rent an apartment or apply for an internet or a cell phone contract Whatever without him or someone from his office signing as a reference, especially if you don't know spanish You're not going to get too far However, you might need a credit card But once you've got a bank account down here you immediately get a debit card And if that's not enough for you, you can apply for a real mastercard visa credit card

[17:51] But your credit limit will come in tiny steps too. For example as for latin americans first, they'll get a debit card Then after six months or a year or two They'll apply at the same bank for a credit card visa mastercard, whatever They'll have to give up the usual personal information where they work how much money they make letters of reference and recommendation From a professional lawyer and such then they'll get that visa or mastercard, but get this Almost always they'll start out with a pitifully low maximum like for example 200 bucks now, I know some gringos up in the states you do too who have 50 even $100,000 credit card limits, you know, american express platinum cards and all that can you even imagine having a $200 credit limit?

[18:37] Then after six months or a year if you've been a good boy and girl paid on time, etc And all that entails these days, you know is to pay the minimum monthly payment That's what they'd prefer, you know, because then you never pay it off, right? Hmm been there hope not Then if a latin person with a $200 limit hasn't been too much of a deadbeat They'll raise that credit limit to 500 bucks then maybe a year later to a thousand and then nine and nine until He hits that magic number $2,000 credit limit and that for many latin people is the pot of gold at the end of the rainbow Can you guess why? Because that's what the u.s embassy or consulate in any latin country requires you to show them When applying for a legal tourist visa to the states in actuality. It's a pretty good qualifier shows you've been working steady

[19:27] Making decent enough money to get a credit card and that you're a good payer and your bank considers you a good risk In other words, there's a very slim chance on that trip to my jammy or disney world that you're going to overstay your visa And remain in the states illegally By the way, it's been estimated that less than 5 percent of adult latin american people have a credit card not debit card with the $2,000 maximum or better meaning less than 5 percent of latin american adults qualify for a legal u.s tourist visa Bottom line here in latin america They have no national or international credit bureaus or agencies to check people out And considering the equifax bombshell up in the states. That's a very good thing Which begs the question how's that plan b coming along?

[20:14] For you new listeners that plan b being of course an insurance policy when the reset button is hit up in the states So how much time is left? How much breathing space do you have before that happens? I don't know but people a lot smarter than I am are saying the cliff is right up around the bend And for millions who took the brunt of those big hurricanes the reset button has already been pushed At minimum it's been a huge wake-up call for them. Anyway, oh, I bet right now all those tens of thousands of people Sleeping it off in army cots in high school gymnasiums and makeshift dormitories surely wish they would have had a plan b Of course I'm recommending latin america as your ultimate destination for your plan b And the easiest fastest and best way to do that is to come down to my january 2018 expat insider seminar

[21:03] And remember only a maximum of 25 people allowed So come on down get some boots on the ground get ready to drink from the fire hose That's how people describe it Another way to put it is if you want a two to five year Running head start on how to live work play and or retire here in latin america Join me and my crew at my january 2018 expat insider seminar You can get all the info and sign up details at the new expat dot com Don't forget to check out the early bird sign-up discounts and for all you past seminar attendees Remember you get a thousand dollar discount As a repeat offender by the way, some attendees have repeated three times already That says volumes doesn't it and if you just can't make it down to my january seminar

[21:49] The next best thing to get those ducks lined up for your own plan b is to take my nine hour expat essentials course You can check out my free introductory video by going to expat plan b Dot com now if you're along the way in your own plan b and need some help hashing it out Just go to the new expat dot com and download my free phone consultation form look it over It'll definitely give you some good ideas Oh, and I almost forgot if you sign up for my january seminar You get a free one hour one-on-one phone consultation with me All right moving on but continuing with the subject of earthquakes and natural disasters I've got this hot off the presses an email from expat frank starts out don johnny. My chiropractor Is at it again?

[22:35] I think he's off base on this subject, too But it's something i'd hate for him to be right about He thinks that every time there's an earthquake you should run outside in case the roof collapses in your casa Several things fell off the shelves for him during this last one. We had just the other day By the way, I should tell you that frank lives in and around Antigua guadamala a golden little gem a unesco world heritage site a place will be Visiting for a couple days on my expat insider seminar Anyway frank says if my apartment is not reinforced with rebar It must be the next best thing because i've never even had a hairline crack in the three years I've been living here Although the other apartment I inhabited before this one did have a couple of hairline cracks

[23:24] As for my very solid present apartment The only way anything falls off my nightstand is if I push it off while looking for something else Then he says I had an electrician out one time to see if my electrical outlets were grounded He checked the entire electrical system And said the wiring was up to us standards and that everything was well grounded, too Then he says johnny it may be a great leap to think this But if the wiring is that good up to first world standards, then the rest of my casa must be extraordinary by guadamala or latin standards at least Personally since there was a relatively minimal amount of shaking the last couple earthquakes So as far as i'm concerned, I see no reason to go running out in the yard in the middle of the night

[24:11] And in the cold too because it does get cold here sometimes in antigua at nights sometimes down into the 50s So johnny am I nuts or logically well grounded on these points? Sincere thanks as always frank. All right. Thanks for that frank All right, first, let me mention to the listeners out there at antigua guadamalas the city of around 25 to 30 000 About 5,500 feet above sea level putting it smack dab in the middle of the altiplano That means the weather is nearly perfect all year round except during the rainy season when it rains a lot So whereas daytime altiplano weather is absolutely perfect at nights It can get cold into the 50s. Sometimes if you consider that to be cold and i'm from chicago So it's plenty warm to me even so almost no one resorts to an electric or gas heater though

[24:59] Some people use their fireplaces every so often in the altiplano You'll find lots of fireplaces in upscale homes and apartments Anyway frank, I assure you your apartment walls are just loaded with rebar here in latin america You'll find all concrete and block structures are built that way It's those brick and adobe structures that don't have it However, only in the past maybe 50 years or so have rebar and concrete and standardized internationally for Anti-seismic construction. So not to worry Any project that's been designed by a bona fide architect is going to be up to snuff in that respect However, latin builders are noted for cutting corners So you have to be on the lookout for that and the two things that contractors are most likely to skimp on

[25:45] the portland cement bag mix which makes for weaker concrete and Reducing the rebar count but even so you can skimp a lot and still a structure will hold together quite well So really frank, I guarantee you your building has rebar in it They don't build block and concrete structures anywhere in the world without rebar That's part of the process and why cement blocks have holes in them to shove the rebar through And you know You can prove it to yourself by going to the hardware store and buying one of those stud detectors On the other hand every latin guy thinks he's a stud, but this is a different thing altogether Anyway, those electronic stud detectors will find studs nails wires and rebar Now frank the idea of running outside every time there's an earthquake

[26:31] What's most recommended is to just stand under a door frame. Don't run outside Standing under a door frame is your safest bet by the way The reason why a roof is usually the weakest link is because here in latin america Anyway, although the floors the walls the foundations and such are reinforced concrete in a high percentage of houses The roof is not instead It's likely to be a mix of wood trusses or fiberglass panels even galvanized laminated sheets Because roofs made that way are much cheaper than pouring and reinforcing a concrete roof And even when there is a solid concrete roof often it won't be very thick at all only two maybe three inches Whereas your concrete block walls are six or eight inches thick So even if you have a concrete roof chances are it's only got about half the strength or even less than the walls and floor

[27:21] But no matter how thick your concrete roof it will have rebar in it So even in a big shaker the chances are it's not going to collapse on you But still my advice get under that doorway This is the expat files living in latin america If you want me to help you out with your own plan b just schedule a one-on-one consult Send me an email the expat files at gmail.com And if you want to learn how to move forward with your own plan b from right up there in the states Go to www.expatplanb.com and check out my three videos. See ya nos vemos