Merida Colonial Home Purchasing Tips
In the process of putting the final touches on our new home, we were lucky enough to meet a man named Jorge Sosa, whose business is called The Handyman. Jorge, who was raised in California, worked many years for large maquiladoras here in Merida, managing their buildings, building their buildings and dealing with construction issues. He struck out on his own and created this small company, Handyman, to provide a wide range of services to homeowners in Merida.
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While Jorge's service is a bit more expensive than hiring the guy down the street who may or may not know how to put up that wall you've been wanting around your garden, he earns that extra money with a good understanding of how things work around here, an understanding of the tastes of most Americans and Canadians, and a team of capable, clean workers who clean up after themselves. And he guarantees his work, so if something isn't right, he'll come back and fix it. And for those of you still learning Spanish, Jorge speaks perfect English.
We asked Jorge to give us a few tips about what he looks for when evaluating a colonial home in this area, something that he has helped various friends with over the years. Since he has experience fixing everything, we figured he might be a good person to tap for this information. The following are some tips on what to look for when buying a colonial (or any other) home here in the Yucatan.
First Things First: Walls
When inspecting a colonial home that you want to buy, the first thing you'll want to do is review the condition and placement of the walls. You are probably going to find cracks and even plaster falling off the walls. These are nothing to worry about as they can be easily repaired. The most important thing to determine is if the walls are made from cement block or from stone. The stone wall construction is called mamposteria, and walls made this way can be anywhere from one to two and a half feet wide. Of course, we all love the old stone walls, but there are some things to keep in mind when you are assessing them.
Repairing these walls is done all the time, and if the house is more than ten years old, some repair will probably be in order. If there are spots of excessive humidity on the walls, repair will consist of digging out the old plaster around the stones and replacing it with new plaster. This is a messy process (one you don't want to have to live in the midst of...) because it creates a lot of very fine polvo (dust).
Look carefully at where the walls are placed. Cement block walls are easily moved or altered. You want a door there? a window? No problem! But if that wall is made of mamposteria, creating a new door or window in that space may not be so easy... in fact, it may not be possible without tearing down a large section of the wall. These walls were often built without supporting columns or reinforcement, so removing or altering them may compromise another wall or the ceiling. It can be done, but no contractor can give you an honest bid for this type of project, since it is impossible to know what the opening will need in time and materials until the job has been started.
Run your hands along the walls. If a very fine dust comes off on your fingers, that probably means the walls are painted with cal paint. This is basically a form of very thin plaster with color added to it. While this type of paint allows the old stone walls to breathe, it also tends to stain and flake off. You should count on having to repaint every few years, depending on the humidity in your house. If the cal paint is on an outside wall, you will probably have to paint every second year to keep it looking beautiful. There are vinyl paints here, of course (called vinilica), and they can be used on any kind of wall. If you use vinilica on a mamposteria wall, you run the risk of bubbling as the wall releases its humidity over time. Vinilica on a cement block wall will last for a long time, as long as there are no humidity problems.
Another thing to keep in mind is the height of the walls. When assessing how much it is going to cost to paint a room, keep in mind that many of these old colonials have very high ceilings. This fact almost doubles the cost of painting a room because of the increased area of the walls. Painters will also have to set up andamios (scaffolding) in order to paint the walls and ceilings. You haven't lived until you've watched painters setting up scaffolding around your precious furniture, balancing on old boards with full buckets of paint twenty feet in the air! Plan to paint before you move in if at all possible.
Up On The Roof
When you decide to get serious about a house, make an appointment with your realtor to see the roof (if you haven't already). It is important that you go up on the roof and inspect it for yourself. If you are unable to climb, bring a friend who can do this for you and perhaps take photographs for you as well.
All colonial roofs need to be sealed with a very heavy latex sealant called impermeabilizante. (Working Gringos Note: we felt we had really become locals when we could finally pronounce that word!) Unlike with walls, with a roof you do need to worry about cracks. The slightest crack in a roof will mean a leak in your house. If the roof has not been sealed at all, you will need to consider the additional cost of doing this in your estimates. A perfectly sealed roof will look perfectly clean and painted white (there are black and red impermeabilizantes, but they are rarely used). The proper sealing job for a colonial roof requires several coats of sealant and cloth in between to reinforce the layers. If the house appears to have been sealed, get down on your knees and feel the surface. If it feels thick and slightly rubbery, that's a good thing! You also should be able to find traces of the cloth that was applied. If instead it looks like the roof was sealed with paint and you can see fine cracks everywhere, that probably means that the sealant was watered down and/or no material was used.
In this case, you don't know what you are getting into. The thick coat may have been applied just to groom the house for sale, but it could also mean that the house has leaks and the job was done to temporarily plug the leaks. If you go inside the house, look up and you can see water marks or humidity stains on the ceiling, then you can assume that the job was not done well. Yes, this can be fixed, but fixing it right usually means resealing the entire roof.
In Merida, everybody has a friend who has a cousin who seals roofs. Most people believe that sealing a roof is as simple as applying paint. If you ask around, you'll find that the plumber, the painter and even the gardener will do the job if you pay them. In reality, sealing a roof is tricky. Although it isn't rocket science, it does have certain procedures that need to be followed precisely. And it is a very difficult job. Imagine a guy on your roof in the middle of the day in 90-plus degree heat, applying blinding white material to the roof. There is a lot of room for error here, but errors are the one thing you need to avoid. Even professionals can make mistakes, but at least a professional applier will honor a warranty and will repair the mistake.
One last thing while you are on the roof. Look around and see what kind of water storage unit is on the roof. Although the old cement type of tinaco blends in beautifully with an old house, they aren't particularly healthy. These cement water tanks do not seal well and are not hygienic. Replacing this with a plastic, germ-free unit is a must.
Going Down... the Fosa Septica
In the Yucatan, we do not have city sewers like many cities in the world, so we depend on individual septic systems. Please read this very informative Yucatan Living article before you ask any questions so you can understand how they work.
As a buyer, the important thing to know is what kind of system is in place. In a newly renovated home, you probably don't need to worry about this. But in homes that have undergone little or no renovation, there are some things to consider. Many homes downtown were originally part of one single mansion that occupied most of a city block. Over time, these homes were divided and sold as independent houses. If this is the scenario for your house, keep in mind that the house you are buying may share the septic system with one or more houses on the block. So when you are starting to plan for renovation of that house, be sure to count on putting in a new fosa septica that serves just your home.
Plumbing and Electricity
As I've mentioned above, if you are planning to buy a renovated home, none of this applies... probably. When a house has been occupied by a Yucatecan family or closed for many years, these things will almost surely be an issue.
With a renovated home, be sure to ask for the electrical and plumbing plans from the seller, so it will be easier to find pipes or installations. You can't use a stud finder in an all-cement house! If the home is not previously renovated, you will probably be able to see the electrical wire running outside of the cement or stone walls. When these things came to this part of the world, families put in galvanized pipes for plumbing and single hard wire for electrical wiring. All of it was done on the walls, so nothing is hidden. If this is what you see, it may be functional, but it probably won't work well with modern appliances, computers, etc. Most likely, these installations will need to be totally replaced.
Even if the seller says that this sort of work has been done, and some of the installations are already hidden, check the faucets, rooftops and gardens to see if you can see any old and deteriorated galvanized pipe that will need to be replaced. Take a screw driver with you and open an outlet to see if it is a single wire with its installation bristle. If you find this, you can probably count on rewiring the house and having some major plumbing jobs. If instead you find copper pipes or, better yet, PVC or CPVC and flexible multistring wiring, then you probably won't have much work to do.
Last Thoughts
From stories we have heard, the earliest immigrants to Merida from the US and Canada were often unpleasantly surprised by things they needed to do to their homes in order to live in the comfort they were accustomed to. Still, they bought the houses, they renovated them and now they are very happy here. Hopefully, you will take the comments above as tips to improve your buying skills, not as stories to scare you away from buying. There is nothing in a colonial house that cannot be fixed... it's only a matter of money and time. And dust. Now that you have read this article, you won't be caught off guard and will have a better understanding of what you will need to invest in the house you are buying.
Comments
Working Gringos 16 years ago
We are pretty sure that if you can show the facturas or other official paperwork pointing to where the money came from, then it is not subject to this tax. This is JUST to catch those people that are depositing cash that is totally unaccounted for.
As for the real estate prices, most of the houses here are priced in US dollars already (the ones that the gringos are selling anyway), so we believe they will continue to be priced in dollars. The houses that are priced in pesos will not change either, as those are usually homes sold by Mexican nationals. The buyers are not necessarily coming from the United States... they come from all over the world. So the seller prices will probably stay the same.
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Brenda Thornton 16 years ago
Gee, that is not a particularly high level for a cash transaction to be taxed, but I have heard that collecting taxes in Mexico is a challenging thing. That would seem to make it daunting for small businesses to make deposits.
My husband and I have an idea for a small business catering to Norte Americanos, if we relocate, and would like to make a little money and be able to employ two or three Mexicans at a good, living wage for them. However, if one truly is legitimate and pays one's taxes as one is supposed to do, only to see them taxed again at deposit, that would seem to be a difficult situation.
When all this meltdown started and we began to see the dollar actually increase against other currencies, my husband and I commented on how bad things must really be, when the dollar, which is crisis because the U. S. is in crisis, is actually the currency to which they are fleeing.
The big question is, if the U. S. dollar has gone from slightly over 10 pesos per dollar to around 13 per dollar, are the individuals selling real estate in Mexico going to change their prices to account for that?
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CasiYucateco 16 years ago
Ah... and it seems the very knowledgable mcm has thoroughly answered the taxation issue at that blog (Adventures of a Third World Shopkeeper) as well.
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Working Gringos 16 years ago
As far as we know, there is now a law in Mexico that taxes CASH deposits of over $25,000 pesos. Wire transfers do not count, as they are generally coming from another bank account where the money is traceable. This law is about trying to capture taxes from illegal money transactions that are all done in cash. Likewise, checks for over that amount will not be taxed if they are coming from a traceable account.
Of course, we are not accountants or lawyers, and if you have any doubt, you should check with one. We list a few good ones who speak English in our resources directory, which you can find from the left side of the front page of our website.
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Ray 16 years ago
The taxation issue was raised on another blog Adventures of a Third World Shopkeeper. It was back in the summer.
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CasiYucateco 16 years ago
"From Turkey:" What is your source for that information? Where did you hear that?
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From Turkey 16 years ago
Is it true that deposits in cash, of any kind, over 25,000 pesos per month, are now being taxed by the government, new rule as of a couple of monthes ago? Wire transfers do not count?
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Working Gringos 16 years ago
Surely you have been watching the news lately. With the current financial meltdown going on around the world, the only safe place for your money is in US dollars. That makes the peso fall in relationship to the dollar. The Mexican government has billions of dollars in reserve, and has been buying pesos to prop up the price... so we guess it could be much worse.... Time will tell.
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maria luisa and bill 16 years ago
we are wondereing why peso:us dollar exchange above 13. today(9 oct)...what is causing this sudden historic strong dollar.(exchange was 9.8 just a few weeks ago!)
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Working Gringos 16 years ago
As usual, Casi Yucateco said it better than we could have. We'd like to add that we too have read that remittances to Mexico are falling and that Mexicans are returning to Mexico, probably due to lack of work. This MIGHT be good for Mexico... an influx of English-speaking Mexicans with entrepreneurial ideas they picked up in the States.
Only time will tell.
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CasiYucateco 16 years ago
As recently as August, housing sales in Merida were still pretty strong. How were they today or last week? I don't know.
Merida has seen a decent share of European buyers and Canadian buyers in the recent past. So, there is a diversified set of buyers out there, not just US buyers.
The Mexican / Merida housing market is primarily a cash market. So, availability of credit doesn't really harm Merida sales as much as within the USA, for example. On the other hand, at least some of the cash being used in Merida surely came from cash-out refinances and savings that may be held more closely in future months.
The real meltdown in economies - world-wide - is only just occurring now. Any given realtor in Merida won't know if they are just having a slow day or week or if the market has completely changed until some time has passed.
But we all know this: There are serious financial problems world-wide. There has been an enormous creation of "money" over the last 7-8 years. And now that a lot of that paper is coming due, there is no hard cash to pay it off. So, "money" that people thought was there, isn't.
Time will tell how bad it gets. Anywhere.
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