Thanks for the advice Chief. We will have a FM3 as we will be permanent. Is there still capital gains??? Also a real estate agent quoted $209/month for the unit available in your complex so about the same. Does that include everything like utilities?
Utilities? I wish.... That money is about strictly for everything outside your unit. Pool maintenance, gardening, painting outside and all that sort of thing. Plus it pays for security at night. We have uniformed guy watching the block for us. I think all the units have gas hot water and stove/ovens, so you get a separate bill quarterly for that. Gas is pretty cheap. Of course with all the places to eat, we do more warming leftovers in the microwave!
Water is included in the HOA from the faucet. It is city water and is not treated in any manner on site. The rumor is you could drink it as the city has come a long way, but it tastes bad and might give you kidney stones from the excessive minerals in it after a long time. That being said, they stock the big waters jugs on site and the staff will deliver for a tip. We keep one in a garfon on the counter and I took a small pump setup down and hooked it up another bottle under the sink that supplies the ice maker and water on the fridge door. My place does have a fancy filtration system that the previous owner installed that used to service the fridge and a drinking water tap, but I didn't know how to service it or how it worked and it made me nervous. Again, they said you could drink it filtered, but for 20 peso a big jug, I'll use the bottled water, thank you....
Electric is on your own. Crank the AC and you will know it when the 2 month bill comes in. However if you are conservative on the AC, it isnt bad. I am told since we face west towards the water, we get more afternoon sun and heat up more. East facing units are more protected from the afternoon sun. Also we are on the top, so I imagine that probably contributes to heating it up. The unit below me is for sale, maybe we will be neighbors! You have to watch too on how much you use total. They have a usage pricing structure. If you use too much, your rate for electric can jump up. The higher rate stick with you until you have some months back under the cutoff.
You also need to look at how you are going to use it. We regrettably cant be there all the time, so we pay a manger to watch the place, pay the bill and such. If you aren't going to be there year round, you should think about how you will take care of the place while you aren't there. Air it out now and again, check on it, and so forth. You don't have the security issues of having a free standing house out by itself, but you still have the regular issues.
On the capital gains, I do not want to give you the wrong info, but I *think* it is moving to you need to have an FM2 to avoid them. FM3s were good at one point and maybe you can still get by with them. One thing you learn is in MX a federal law isn't read the same in various areas. How they might choose to do it Merida may be totally different in Cozumel; same law, different implementation. Remember though that capital gains is only on the profit you make on the sale. I don't think you need to worry in the near future that prices will skyrocket and you will be carting out tons of money when you sell it. Worst case, right now you would have to pay around 30% on the difference between what you paid and what you sold it for. Oddly, I think if you sell it for LESS than you paid, the buyer has to pay tax on that difference. They get you coming and going. So long term, you may have to deal with changing rules. Short term, you aren't likely to make much on a sale. Again though, get a good attorney involved and position yourself for your needs.
