How to Build a House in Yucatan
Before we moved to Yucatan, we spent two years renovating a 70-year-old Spanish Revival home in central California. While the process was initially quite enjoyable, several unexpected problems resulted in a project that took twice as long to complete than originally planned. It also cost a considerable amount more than we had budgeted. In the end, we swore off another project and bought a fully renovated house in Merida’s Centro Historico for considerably less.
Oddly enough, it didn’t take long before we found ourselves engaged in the renovation of a smaller colonial house to use as an office. Perhaps we’re slow learners, or we just can’t accept defeat. Yet, contrary to our expectations, the project was completed quickly and on budget, despite the arrival of a major hurricane near the end of construction.
If you plan to renovate one of Merida’s lovely colonial homes, or to build a new home in the area, don’t be surprised if your experience is like either or neither of ours. No matter where you are in the world, building a house can be simple or complicated, easy or hard, a dream or a nightmare.
Having said all that, there are some things that you should consider if you are going to build or renovate in Yucatan. Many of our readers have asked our opinions on this subject, so we are offering them in this article. By no means is this meant to cover every possible situation, and we would hope that anyone who has something valuable to share will comment below.
1 - Buy Local
The most important thing we have learned is that if you are building in Yucatan, then choose a local architect and construction firm that has several years of experience in Yucatan. Select those who have a portfolio that matches your tastes and a list of satisfied references. There are many here speak English and their firms have at least one additional person on staff who speaks English as well. Several architectural firms over the years have developed their English-speaking skills in order to communicate better with English-speaking clients. The local architect school, FAUADY, graduates more architects every year and is a well-respected school in Mexico. There are no shortage of competent, honest and creative local architects.
Many foreigners who come to Yucatan learn the basics of renovation and remodeling. Depending on the scope of your project, they may offer a reasonable alternative to using a local firm. But remember that they do not have friends or family in the business, nor in government, and it is through this network of personal resources that the majority of Mexican business gets done.
Local architects and contractors are well connected and know the local markets and best practices. They will be able to advise you on construction and design techniques that work best in a tropical climate using materials that are most common to the area. They know the authorities in the government and the culturally accepted way to make things happen. In the long run, they will probably achieve the results you want at a better price.
2 - Get An Estimate
Ask for a design and presupuesto (estimate) from more than one firm. Most will include the price of this effort in the cost of renovation and/or construction. The ones who are not awarded the contract will charge a nominal fee, which depends on the scope of your project. This process will educate you on many levels and help you to choose the best design, engineering and construction options. It will also help you determine which firm is the best fit for your project and is the most responsive to your needs.
Always obtain a design and presupuesto BEFORE starting work. It may be impossible to have a design that is complete in every detail, but the closer it is to including all line items required to complete the project, the fewer unhappy surprises there will be later on.
Most firms we interviewed will charge as little as 10% and as much as 30% of your construction budget to design, administrate and supervise your project. The amount you pay is not always a case of “you get what you pay for,” so be sure to shop around.
3 - Follow The Rules
Follow the laws of Mexico. In the past, many construction projects in Mexico have been preformed by an informal labor force and paid abajo de agua (literally, under water, but it means 'under the table'). Many changes by federal and local governments makes this approach more risky than it used to be. Avoid using free-lance labor on large projects, and be sure that all workers are paid Social Security. Not paying Social Security (IMSS... pronounced "eemz") may save you a few pesos, but you are taking that money right out of the mouths of the families being supported by the (mostly) men working on your house. And if anyone gets hurt working on your project, IMSS has them covered medically so that it will not come out of your pocket. Those abañiles (workers) work hard for you... paying them Social Security on top of their daily wage is only fair.
4 - Get A Contract
Obtain a standard construction contract from your Mexican architect or Notaria (lawyer). At a minimum, it should limit your liability for budget overruns and may include incentives for completing the project to a schedule. The contract should also stipulate that all workers be paid Social Security by the contractor (not you). The contract must be signed by all parties and notarized to be enforceable. All of the firms listed below will enter into a standard construction contract.
5 - Do Your Accounting
If the intended use for your finished renovation or new construction is a rental property or other income-producing venture, you should contract with a lawyer and accountant to establish a Mexican corporation (SA de CV) or limited liability company (S de RL de CV). You will need to report your rental or other income and pay taxes, or risk penalties and fines from Hacienda, the Mexican IRS.
6 - Permitame
Always obtain all required permits before beginning work. Many colonial homes in Merida’s Centro are designated as "historic" and will require a permit and inspection by INAH (National Institute of Anthropology and History). If you fail to obtain the proper permits, your project can be suspended and you will have to pay fines to resume.
We used to provide a list of local architects and construction firms that we knew to be good. But the list of known and good architects and builders has grown, and now it feels as if any list is leaving someone out. Longer too is the shorter list of architects and builders with whom people have had bad experiences. We will leave the comments to this article so you can read about others' experiences and opinions. But recommending or not recommending someone has become fraught with peril and is no longer practical.
7 - Check References
Suffice it to say that you should ALWAYS check references before you go ahead with someone to design or build your house. There are plenty of good people here in Merida with references. You could also check with Profeco, the federal government organization that monitors consumer affairs. If a business person in Merida has had problems enough that someone has reported them to Profeco, you can find out. If you do not speak good Spanish, consider taking a Spanish-speaking friend with you to make the visit easier.
8 - Have Fun!
This might be the hardest thing to do sometimes. Building a house anywhere in the world is stressful and has been known to break up marriages. Try not to take out your frustrations on your architect, your builder, your workers or your partner. Look at this beautiful thing you have the privilege of creating and enjoy the process!!
Suerte!
Profeco
address: Calle 49 No. 479-A, x 54 y 56, Centro, 97000 Mérida, YUC, Mexico
phone: +52 800 468 4212
website: https://www.gob.mx/profeco
Comments
CasiYucateco 14 years ago
Adam,
Just curious: If your price estimates ranged from $350 US to $600 US per square meter, about where did your final project come in, once completed and all costs considered? (if you don't mind sharing) Just wondering where Carlos came in on that range. Thanks!
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CasiYucateco 14 years ago
Tom: That sounds like the land I know of. I do believe it has been for sale a long time. And the reason, I believe, is that most people will not pay that much money in that area of town. Yes, it is more than you can get in other areas and does have fruit trees.
You will probably have the following expenses: many thousands of dollars to raise the wall around the property. It does have some wall, but not high enough to prevent burglary and theft (I don't believe). You will have many thousands of dollars constructing a house. Two bathrooms and a bedroom is fine to start, but you'll probably want other rooms for a hacienda. Building from scratch is much more expensive than changing around an existing building: new foundations, all new materials.
You will likely not be able to sell it for what you pay for it. Yes, there are adventurous people who don't care which part of town they live in and are willing to blend in with locals. But the biggest market is looking for either walkable neighborhoods or Centro houses or N Merida homes with plenty of parking/garage, etc. This is likely a "need a car to live" area, is not Centro or N Merida, few to no other expats nearby, but would have parking. So, if you are willing to buy in a less desirable area, willing to forget about 'getting your money out of it' and make it your lifelong home, or sell at a loss, then maybe you would be happy -- IF it turns out the neighbors are quiet and peaceful.
Also, at 4000 sq meters, that may be more land than you can own under a fideicomiso. (no problem if you are a Mx citizen) If you are an expat (not a Mexican citizen), you should discuss with a Notario (special real estate attorney) what options you may have (and total annual costs $$$ under each option) for owning that much land. You may find an option you like. Or you may be surprised at the carrying costs each year.
There are very few homes in that area that cost $90,000. You may disagree with my opinions and be very happy there, but you asked for opinions.
Here's one really big suggestion I would make: Ask about renting it for a couple weeks and stay out there day and night. Eat and sleep there. See what the airport noise is like at 7 am or 10 pm or hours when you haven't visited there briefly. See what the neighborhood is like at night. See how close any services and stores are to the property. If you still like it, then try negotiating on the price.
Would you be happy with less land near Ucu or Caucel? Or an old ruin of a house within Merida with a large garden? Have you tried shopping Spanish-language want ads, rather than Internet real estate companies?
What about checking for properties in Uman, Valladolid, Motul, Izamal? All of those areas may be lower priced and you may find a large plot of land for the same or lower price, if that is what you are looking for, and if you don't mind living farther out. Locals will say that Kanasin has crime problems.
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Adam 14 years ago
Architect recommendation:
Renovating in Merida was new to my wife and me. We obtained half a dozen rough estimates for construction ranging from $350 US per square meter to $600 US per square meter. As a designer I wanted to work with an architect who had excellent communication skills.
We visited Carlos Barrera on an existing jobsite and were immediately impressed with how thorough his renovation process was. I asked Carlos many questions about the construction process. On seeing my interest in the construction process, he went the extra mile to explain all aspects of the building process so that I could better understand exactly how things were done and how to get the best result with our limited budget.
On awarding him the job, he commenced construction promptly and his crew worked tirelessly (including Mondays) to complete the build. I could tell that, to Carlos, building our house was as much a passion for him as it was for me. As my design inevitably evolved to incorporate new elements, Carlos made adjustments to the built process without any fuss. He sent videos and pictures regularly so that I was able to chart the progress from New York.
As a local Meridano with strong ties to the community, he knew who to talk to get things done, whether it be a hardwood deck, or the specific variety of grass we requested. His financial dealings were completely transparent and we never felt we were being taken advantage of. On the contrary: on several occasions Carlos rejected a higher priced supplier in spite of the commission it would bring him.
We are very pleased with the house and are building a second one with Carlos.
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Joel & Shawn 14 years ago
We purchased then renovated a home in Merida and completed the project in June of 2010. We worked with Carlos de la Barrera on our project in Merida. The completed house is beautiful and more than we could have hoped for. We found working with Carlos to be easy and easy to manage through email, pictures, etc, as we were in the States for almost all of the project. We trusted Carlos completely and he come through. He went the extra mile and took us all around Merida to show us homes and what could be done. He even helped us get appliances...and a mattress! We would recommend Carlos to anyone looking to build, renovate in Merida.
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Carlos de la Barrera 14 years ago
Hola Tom,
Definitely it is a large piece of land and as you say, it is hard to find that size for the same amount of money except maybe in the Caucel area going towards Sisal and Celestun beach. The only problem there is its location. If you do not mind the long drive north when you need to. I know that location and it is close to Seguro Social 42 Sur and not a great area to spend your bucks. You can buy for instance land for the same price and size in the east side going to Valladolid or west to Caucel or maybe close to Opichen hacienda. Good luck!
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Tom 14 years ago
Thank you "Casi Yucateco",
This property is located over Ave 42, Exit to Tahdzibichien. Dimensions are exactly 40 mts X 100 mts = 4000 Square Mts. 20 minutes away from the airport, we were there and never heart an airplane.
The lot looks very nice, fenced, small one bedroom and 2 bathroom construcction. With potential for expancion, Fruit trees and nice garden area. One water well.
My problem is that i don't have any idea how much is too much for this area of Merida, I think it belongs to Kanasin County.
The owner is asking for 1,000,000.00 pesos about 90,000.00 USD.
Similar properties in the North areas are at least the double on price, can't buy anything worthy for 90,000.00 USD in the North "gringos" Area.
The people around looks nice and friendly but I don't have any idea of how much is too much for this area. Or how "dangerous" could be. I will appreciate any comments if somebody knows these area. Or have any idea about prices around there. TK!
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CasiYucateco 14 years ago
Scott & Tom both ask questions that are extremely difficult to answer.
"For X dollars, how much home could be built?" Nearly impossible to answer. What design do you want for the home? Modern minimalist? Colonial imitation? High ceilings (how high)? One story? Two? Many rooms? Few rooms? AC in every room (apparently so, if it is "American standards")? Garage? Carport? No parking? Iron windows? Wood windows? Aluminum windows?
The resale value depends on the quality of the design, on the finishes used, the style or appearance, how appealing it is to typical buyers. So, there's no possible answer. For that much, in my hands, I can say a very satisfactory house for two people could be built, with a guest bedroom or two, pool and garden.
Tom, If that is the land I'm thinking of, it may have been for sale for a long time. (I could be wrong about which patch of land you are talking about.) It may be too high of a price for what is included in that part of town. If there are two "party areas" nearby, you may want to consider the noise that will cause -- all night long loud music. Loud. Music. Also, it may be close to the airport which may be less than ideal. With more information about the location or the website offering the land, maybe someone will have more information aside from my speculation. $90,000 is a lot for a pool and a small building.
Here's one recommendation: "Drive through the area" using Google Maps. Most streets of Merida are mapped.
Lastly, if you have not vacationed in the area and seen how things are done, it would be a very good idea to spend a week or so just looking around at the city, at a few houses, and enjoying the local culture. After that, make a decision if you want to continue looking in this area, if everything suits you.
I could not locate a Colonia Vicario on my maps, but I may have missed it. I cannot tell the area of town from your description.
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Tom 14 years ago
I'm considering to buy a "quinta" in south Merida, Colonia Vicario. I know this is not the expats' favorite spot but since I can't afford to buy property in a gringo neighborhood because it is more expensive, I found this opportunity very attractive. Its a little bit more than half of acre, with well water, about 80 fruit trees, electricity, a little one-bedroom cabin with 2 bathrooms. Its on Avenida 42. The area seems under construction, with lots of empty lots, one or two very nice haciendas from local folks that are renting them for "parties". The rest of the houses look very poor and there aren't many houses around. Does someone knows this area? "Por la 42, pasando el IMSS" and the military place? They are asking for 90,000.00 USD, I saw similar properties for much more in the North areas. Please if someone knows that area, give me your opinion, any comments are welcome. I would like to get your feedback. My wife's dream is to build a "Little Hacienda" on this land.
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Scott 14 years ago
I have $160,000 usd available to build a home in Merida. Excluding cost of land what size home could be built to American standards for that kind of money? With back courtyard and moderate size pool.
How long would it take to build a home?
After the home is finished what might it's immediate resale value be?
A general estimate is all I am looking for... Of course.
Look at it from the perspective that if you had the money what might you be able to build that would satisfy you own personal expectations.
Thanks in advance for your input.
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CasiYucateco 14 years ago
I don't think it is much changed from what I wrote in September. To be safe, for the raw construction, budget $25 to 35 US dollars per square foot, which works out to about $275 to $385 US dollars per square meter.
That's only the raw construction and only "space" (walls and roof) not including foundation. Then all the finish materials -- tiles, pasta tiles, stonework, paint, light fixtures, kitchen and bath fixtures, plumbing, wiring, protectores, windows, doors, ceiling fans, A/C, etc -- have to be added in. Since those vary by each person's taste, it is nearly impossible to estimate the cost per square anything of those.
Those are _very_ approximate numbers.
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Tere 14 years ago
Could someone please tell me the approx. going rate per m2 of construction at this time Oct. 2010? Many thanks
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