Tahoe-Truckee Market Beat: The benefits of living abroad
Special to the Sun
One trend that has become popular in recent years has been retirees moving overseas to stretch their retirement budgets.
Personally, I’ve had several friends and clients from the Truckee area who chose to retire in places like Mexico, Thailand and the Philippines.
Some of them moved permanently and others chose to purchase their second home in a foreign jurisdiction.
Moving away from the Truckee/Tahoe area wouldn’t appeal to me at all, but having a beach house overseas some might make some sense.
I had one old friend from Truckee who retired and went off to the Philippines. He purchased a condominium on the beach for about $40,000 and told me he could live well after his fixed expenses for about $20 per day, and he was right on the beach participating in the outdoor activities he loved.
Quite a few Truckee residents I knew went down to Mexico for their retirement. Mexico had a law that restricted home ownership in areas near the border and close to the coast, which are some of the most desirable places to live.
If you wanted a beach house, you had to get a long-term lease, but never could get outright ownership.
I’m not an expert on Mexican real estate law, but apparently that law has been changed, and currently foreigners can own real estate on the coast and it can be done through the use of a trust or a Mexican corporation.
I’d definitely recommend consulting an expert in this area before making a purchase abroad.
I used to have a client who had been a ski instructor at Squaw Valley during the 1960 Olympics and retired after a long career as a ski instructor at Squaw and other local resorts.
His income was somewhat limited and his retirement solution was to spend two months of the year at Tahoe in mid winter with a ski pass and enjoy the slopes almost every day.
He would then spend the rest of the year in Thailand living on the beach and spend less money in Thailand in 10 months than he did skiing at Tahoe in two months.
I did a quick Internet search of real estate prices and found condos near the beach in Thailand starting at under $30,000.
Living overseas may not be for everyone, but if you’re trying to stretch a budget, it could be worth considering.
Kenneth Roberts is a Truckee-based Registered Investment Advisor. Information is at his blog at http://www.sellacalloption.com or 775-657-8065. The mention of securities should not be considered an offer to sell or solicitation to buy investments mentioned. Consult your investment professional to understand the risks and/or how the purchase or sale of these investments may be implemented to meet your investment goals. Past performance is no guarantee of future results.
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