[earlyretirement]

[quote=JohnAlt91941][quote=treehugger]
I want something that has plenty of room for my toys and dogs (bikes, stand up paddle boards, 2 75 pound dogs) and gets good gas mileage. I think I am going to go this weekend and test drive the Jetta sportwagon and AUDI A3 both TDI get great gas mileage, but is the extra cost of diesel worth it?
[/quote]

My 2009 Jetta TDI had a failure of the high pressure fuel pump. VW had to replace the entire fuel system due to metal shavings from the pump grenading. Mine wasn’t the only one for this generation of the TDI.

http://forums.tdiclub.com/showthread.php?t=299854

I think Audi diesels use the same fuel pump.

Additionally, the turbo failed on it twice and I kept getting a check engine light for the exhaust temperature sensor despite NUMEROUS attempts at repair by the dealership.

I also owned a 2003 Jetta TDI that was the best car I ever had. I wish I still did. 45 mpg, 650 miles to a tank. But the clean diesel I bought in 2009 was a mess.[/quote]

Yikes. I hope I don’t have any problems like that. This was my first Audi. The only problem I’ve had so far is that I just went in for a service visit and keep in mind my car is less than 2 years old. I only have 16,900 miles on it. Well, I just took it in a few weeks ago for a scheduled maintenance and they said the front brake pads already need to be changed! I was like huh? And it was something like $1,300 or something they quoted.

I was shocked as I’ve owned other cars before where I owned it for 4 or 5 years and never had to change the brake pads. Apparently with the Q7s they say EVERY 15,000 to 20,000 miles! And the back brakes they say every 25,000 to 30,000 miles.

I said thanks but no thanks and said I’ll wait until my “Check Brake” lights go on.

Other than that I’ve been really happy with the TDI. I always heard people complain before about Diesels being loud, fuel smelling, etc. But I really wouldn’t even know it was a diesel if it didn’t have the TDI on the back of my car.

I’d definitely get another TDI again in the future. I don’t change cars often. I’m not that type. I typically drive cars until they can’t drive any further. But this “change brake pads” after only 15,000 miles thing turns into other problems I’ll probably sing another tune.

But as BG mentioned, it really does feel like you’re in a protected tank. There is a LOT of room and it’s spacious and the third row is big enough for our kids. When the in laws come in town we actually put the 3rd row to good use.

Any of these SUV’s you can buy a roof rack really easily online for paddle boards, etc.

[earlyretirement]

[quote=deadzone]You guys are the ones that aren’t being objective. You have no evidence that Baja is any more dangerous for AMERICAN TOURISTS than it was say 10 or 20 years ago. Like most American’s you’ve lost your objectivity and instead base your decisions on hype and fear monguering.[/quote]

Are you for real? So you think that the general crime rates (forget about murder) hasn’t gotten worse in the past 20 years)??

No, I’m not fear mongering at all. But you seem to really be focused on the murder rates. I didn’t mention anything about murder at all.

[earlyretirement]

[quote=desmond]I can see the slogan now, “Visit Baja, your chances of being murdered cannot be proven”[/quote]

I don’t think most people are worried about getting murdered. You’re taking the most extreme example. Other bad stuff can happen. I’m NOT saying to stay away. I’m just posting objective facts.

Again, murder is the most extreme example you can use.

Personally I love Mexico and most of the other countries of Central and South America and I visit frequently for vacation and also for work as I do business in many of these countries.

I really love it. I do think you have to stay objective. Do I think your chances of getting murdered are high? Absolutely not. Can other bad stuff happen? Absolutely.

[earlyretirement]

[quote=desmond][quote=deadzone] As I have before, I challenge somebody to provide a link to an actual case. Last time I challenged the piggs to do this the crickets were chriping loudly.[/quote]

You can continue your trips to Baja DZ, but your continued denial of what is going on down there can bring harm to others. Here is a link, I am sure you will make some excuse about it:

http://www.cbsnews.com/8301-18559_162-6044922.html

This is the last part of the article:

Chris: Even Tyler still talks about the happy times… still talks about his favorite burrito shop.

Divinia: There were so many times that were good that completely outweigh the bad.

Chris: I know we’ve lost Mexico and we won’t go back… and we’ll leave it at that.

Divinia: It’s just gonna have to be something that was once upon a time for us…

Mexican authorities never investigated the Hall kidnapping.

In 2008, more than 1,000 kidnappings were reported in Mexico; at least 65 of those ended in death.

Desmo writes: Nobody wants to report it, victims, press, tourism departments, etc. The victims just want to get home and never go back.[/quote]

This post has some good points. Especially the part about victims not reporting the crimes. You do NOT even need to think about DEATHS or MURDERS or worst case scenarios. Just getting mugged or robbed is a scary thing. Forget about the worst case scenarios.

And that point is spot on target about crime statistics. FORGET about official crime statistics in many Latin American countries including Mexico. Sure, the murder #’s are probably accurate but the petty crime stuff and even the more serious stuff are NO WHERE near the true #.

The vast majority of people that get robbed in many Latin American countries don’t report it because they know there is nothing the police can or will do about it for the most part.

I always laugh when people try to throw out some random government statistic and try to make it sound safer than the USA! LOL.

The thing is in the USA people report almost every little crime. Look at the ridiculous police reports in the paper about people reporting something getting taken out of their yard, out of their car, etc. People in most Latin American countries would laugh at you if you told them you took the time to fill out a police report upon getting robbed, mugged, etc. It’s a waste of time.

So totally FORGET about whatever government statistic there is on crime in many of these countries INCLUDING Mexico. The real true #’s of crime is MUCH higher than what you read.

So always remember this when you read some government or “official” statistic on crime in these countries.

Remember something important. These countries can be and ARE fun and really great full of wonderful people. I”m not even saying there is a high probability that something bad will happen. But I think it’s always important to be objective in all these posts.

The plain facts are that the judicial system doesn’t really function in most of these Latin American countries. Or even if they do, they are plagued with a tremendous amount of corruption, fraud and abuse. So imagine someone that files a police report and then the thug retaliates against them or their family. MANY people don’t file police reports because they know the judicial system is fundamentally broken or corrupt.

I could tell you guys some true life stories that would make your heads spin. Trust me. The judicial system doesn’t work in many of these countries. Or if it does, it could be many many years later when it wouldn’t really matter.

[earlyretirement]

I’m not sure what the affordable SUV’s are but I’d highly recommend getting a diesel version of whatever you are thinking of if they have it.

I’ve never owned a diesel car before getting my Audi Q7 TDI back in 2011. This is one HEAVY SUV, especially considering I got the towing package which is heavier. I think it’s like 7,000 pounds and I still get about 23 miles to the gallon combined with city/highway.

I’m not really the roadtrip kind of guy. Although we did take a roadtrip up to Lake Tahoe in it, mostly I just use it around San Diego with the kids. Gas is more expensive for diesel but the savings with gas mileage is GREAT.

My main point being that getting a diesel SUV is good for gas mileage. I was worried before that there would be enough gas stations that have it. It can be a pain sometimes if there isn’t a gas station right around the corner that has Diesel but it’s not too bad and you can check online or with various Apps.

I only fill up my tank about every 550 miles or so. Granted it does have a big gas tank but I’ve rented some big SUV’s before on vacation where I got REALLY horrible MPG!

[earlyretirement]

[quote=Want_to_Retire]My bad – no I’m not landlording Phoenix’s rich and famous or local sports personalities – it’s Paradise Valley Village or HS area – 85032. Got carried away there a bit! In what I consider my general area it’s high $100s to mid $300s (track houses only – there are a few large landowners whose land makes them value themselves at $600 to $700) – I’m mid in this market. The prospective tenants that I actually get to have a conversation with are all firmly entrenched in AZ (jobs, families). To the extent we talk about CA they all like it and enjoyed visiting it.

I keep a tab on the home prices and in north and central Phoenix zips (eastern part of the valley) and it feels like the prices are stalling a bit now – not surprising given the magnitude and speed of the run up in the past couple years. As per my previous post I think the window to get a return on a rental here is narrowing due to the price rise. I’m not as worried about a bust as long as I can get a decent rental return (and it’s relatively easy to rent) and it’s cheaper to rent than buy. The other positive is it does feel like there’s an employment boom in the Valley and not just construction jobs – manufacturing, R&D, design and engineering – all good, especially for the southern part of the Valley, and I’m good with basking a bit in the reflected glow from Chandler, Ahwatuckee (oh and Scottsdale too!).[/quote]

Ahhhh. 😉 OK….now your post makes a lot more sense to me. I was confused for a while but figured that is what you meant. Thanks for taking the time to follow up.

[earlyretirement]

[quote=FlyerInHi]living abroad is for the culture and the excitement. Otherwise you can live pretty cheap in a small beach town in Florida, Alabama or Texas (and other places that are insourcing destinations).

Some countries don’t allow easy residency unless you are married to a local citizen. So I think it’s better to marry a local who knows how to navigate the local culture.

I grew up abroad near the peak of American power. Back then for my parents being American conferred some extra status. It’s different these days….. But these days you can live abroad and easily stay in touch with American culture. You can watch American movies on first release dates, chat on the net, read online papers, etc… Decades ago it cost a fortune to make long distance calls even inside the country, so overseas phone calls that would last 1/2 hour were out of the question. Now, you have skype and vonage.

I agree that having a foot in both worlds is the best. It opens up your mind. One of my classmates was the daughter of the ambassador of Iran. She would bring us pistachios after every trip home. They even had parties at their residence for the kids So I always thought that Muslims were just like everybody else. I had lots of interesting friends. Too bad that there was no Facebook at the time to keep friendships going after we moved.

It I had kids I would want them to have extensive overseas experience. I would work hard to make it happen. I think that immigrants who still have roots in their home countries are lucky. Their kids will grow up to be the truly globalized generations able to easily move between cultures.

There are lots of new exciting cosmopolitan cities around the world these days. So it’s hard to pick one. I personally wouldn’t want to live in an enclave of American retirees.

Latin culture is warm and fun. I don’t think there are downsides to at least trying it out. You can always decide to go back home stateside.[/quote]

Great post FlyerinHi and I agree. Amazing how technology really changed living abroad and keeping in contact. These days with the technology like Voip phone lines you can have a phone number in most major cities in the world. You mentioned Vonage.com which is GREAT. I have a local # in several cities where we own properties and have family. So they only call a local # and it rings me in San Diego…both them and us with no long-distance charges.

I TOTALLY agree with you about exposing your kids to extensive overseas experiences. We totally agree and we expose our kids to many cultures and travel to many countries. Our kids each have 3 passports including a USA passport.

Having kids born abroad is a GREAT way of automatically having them get residency and a passport in another country plus they can automatically get citizenship and USA passport from the parents.

You’re right that some countries make it VERY difficult to get permanent residency in them. And marriage isn’t a good option for many. LOL. But there are typically ways to gain it. Some countries are easier than others.

[quote=deadzone][quote=davelj][quote=moneymaker]I was at some ones house a couple of weeks ago when the misses gets a phone call and starts freaking out. Evidently her god son (who was kidnapped in TJ 2 weeks earlier) was found dead. Now I didn’t know this guy but she said he lived here in the USA and had just gotten a job right before going down there. Sometimes life sucks![/quote]

This would be a pretty big news story. Even if the family kept quiet during the kidnapping (by order of the kidnappers), the actual murder of a SD resident in TJ would be front-page news. And there would be virtually no way to hide it. Any further information?[/quote]

Exactly Dave, this incident probably didn’t really happen. There is a lot of fear monguring about going to Mexico but not many actual documented cases of American tourists or expats being murdured in Baja. As I have before, I challenge somebody to provide a link to an actual case. Last time I challenged the piggs to do this the crickets were chriping loudly.[/quote]

I have NO way of knowing if this was true or not. I do agree there is a lot of fear mongering. Typically if something happened to a USA citizen you will hear about it. However, there are MANY times when bad things happen to locals and you do NOT hear about it.

You will find many times when families get members “express kidnapped” they don’t dare tell anyone. Why? Because they don’t want to signal to other thieves that they paid the ransom. Because then all you will see is all their family members getting kidnapped over and over. If they are wealthy, they typically move out of the country, like Eduardo Saverin’s (Facebook) parents did.

If you aren’t wealthy you just don’t tell anyone and try to keep a very low profile. But a LOT of crime is NOT reported. But I don’t buy into USA citizens getting murdered and no one hearing about it.

But I think maybe what the OP was talking about was that someone here originally from Mexico that moved to San Diego and had their family members in Mexico were murdered. THAT I can easily believe. Tons of murders in Mexico and other places that you would never hear about.

In fact, I can speak from experience as my wife’s uncle was murdered down South (not in Mexico). He was NOT involved with the drug trade or anything else shady at all. He owned a business. The police couldn’t do anything.

[earlyretirement]

[quote=SK in CV][quote=Want_to_Retire]The renter is a franchise business owner. The inquiring potential renters are all over the map for my slice of the market – self employed, office manager, professionals etc. I would say I’m mid market for Phoenix houses.[/quote]

Mid-market in PV? Seems unlikely. Average listing price in the region is about $320K. Average in Paradise Valley is about $2,400,000. According to Trulia, there haven’t been any SFH sales there for less than $500K this year. PV is an uppermost market in the region.[/quote]

Thanks for taking the time to provide that follow up info. I don’t know Arizona well at all but like SK in CV I’m a bit confused. Is this Paradise Valley (85253) or Paradise Valley Village (85032)? Because the demographics seem totally different.

The median income for 85253 looks to be about $154,676.

The median income for 85032 looks to be as low as $45,000 in some neighborhoods to about a peak of about $102,000 in the most affluent part of that zip code.

I was having lunch with some buddies today and both of them mentioned that they noticed more out of state license plates lately in San Diego. I noticed that as well driving around. Also, one of them mentioned that he noticed more people he knew that moved out before moving back to San Diego.

I also noticed that on some of the other message boards that I post on. Some people that “swore they’d never be back” are moving back now or planning to. He asked my opinion on what I’d attribute that to.

Here is my take on it. After the bubble bursted, people were in a LOT of pain. Not only did they discover their houses weren’t worth nearly what they thought…but many were using their houses as ATM machines. Yet others that weren’t taking out HELOC loans were hit VERY hard because even if you were well diversified in the stock market, everything took a hit (unless you were shorting the entire stock market).

Most people felt a lot of pain. And many moved out to lower tier, less desirable and lower COL areas. Places like Arizona, Las Vegas, Texas, and even Oregon and Colorado.

But now with the stock market higher than ever, many people have recovered much of their stock portfolio and they feel “richer”. So they are coming back. Even some people that don’t have good job prospects in San Diego are coming back feeling more optimistic and “wealthier” at least on paper.

Like CAR mentioned and a point I agree with is that many “cash buyers” are finding ways to leverage. I’ve heard of some crazy things like people tapping into credit card cash advance checks that are at a low balance for a limited period or even some of these checks that places like Citibank are sending out say “0% until the balance is paid off with a 3% fee”. People ARE using things like this which can be treacherous.

So although it looks like they are “cash buyers” they are really using leverage to buy. Yet others are cashing in part of their retirement savings or 401K’s to buy which isn’t always a good idea either. Yet others I hear about are getting loans from parents or family members.

I heard a CRAZY story from one of my buddies today. He works with a girl that bought in my neck of the woods. I guess her family provided much of the down payment she needed. After her mortgage closed only 6 months ago, she went out and they bought 2 new (and expensive) German cars, new furniture on credit and a bunch of other junk. She is already struggling. I honestly don’t know how people could get themselves in this situation so quickly after buying.

My friend that is a real estate professional. EXTREMELY smart guy that bought 30 houses last year. He said he is starting to sell off his portfolio. He said that several private equity companies are way over paying for properties in his area.

While I don’t think we will see ANYTHING like what we saw with the Great Recession any time soon…. I don’t think we are out of the woods. So many people piled into the stock market chasing yield.

I hope this all ends up well.

[earlyretirement]

[quote=Want_to_Retire][quote=SK in CV][quote=Want_to_Retire]You definitely get better demand and appreciation in Coastal CA. However, even in the depth of the slump, I was actively looking and didn’t see any property in South Coastal OC that I can cash flow with 25% down. So, like ctr70, since I would never buy a negative cash flow rental in CA just hoping it appreciates, I ended up buying in dusty ol’ Phoenix. So far, tenants have been good. I think making a broad statements about “better tenants” in CA is interesting, I think it depends on diligent screening and luck in either state.

Now if I had just bought something in South OC hoping for appreciation and put up with some cash flow losses, I’d be eating steak tonight! Or if I had looked in San Diego, doh![/quote]

Most of Phoenix has appreciated at least as much as SD has over the last 15 months. So you should have both cash flow and appreciation, where in OC, you’d have negative cash flow and appreciation. I suspect you bought both at the right time and the right place. Particularly if you can keep it rented to the same tenant. (turnover kills)[/quote]
Update from the ground in Phoenix: Closed on a house in Paradise Valley in February – 25% down, overpaid a bit compared to the market but was tired of getting cut off at the knees on my bids – hoped appreciation will allow me to catch up to the price – it’s close. Put it on the market for rent in April – still finishing repairs/cleanup – got 13 month lease in June. Cap rate (including repairs) – estimate 5% and up depending on turnover (10 month – at 12 month net rent the cap rate is about 9%). Most of the tenants stay past the year and finding new tenants have been fairly quick during the right time of the year. The economy appears to be booming here with news articles about new jobs being created – especially in the Chandler area – but given the appreciation in home prices and the feedback I got from prospective renters on how much they were looking to pay, I think the window for cashflowing investments is closing quickly.[/quote]

Congrats. Just out of curiosity, what is the profile of your renter? Professional? Blue collar, etc?

I was amazed how quickly the market is rebounding there. AZ is not my cup of tea but if you can make the ROI that’s all that’s important.

[earlyretirement]

[quote=FlyerInHi]I grew up abroad and went to international schools. My peers were kids of diplomats, international businessmen, and other interesting people.

I wouldnt want to trade my experience for a boring high school on the suburbs.

The quality of education was great — better than US high schools. Of course American universities are better especially at the graduate levels.

If wanted a family, I’d marry a beautiful foreign woman, live abroad and spend time in America in the summer and during holidays. That is if the finances make it possible. Not everyone can afford that lifestyle.[/quote]

Oh yes FlyerinHi. There are GREAT international schools but many of these I think you will agree are just as expensive as private schools in the USA. I have many friends and colleagues that send their kids to these international schools and most pay a small fortune sending them there.

No doubt living abroad can be VERY exciting. Some of my best years were spent abroad.

The key really is having a steady stream of cash typically NOT in the currency of that country. So if you can make dollars, Euros, Sterling, etc. you can live VERY well in some of these countries.

Particularly nice is people with pensions, SS payments or guaranteed income in US dollars. The true key is NOT to be tied to that local economy and all the ups and downs.

I mention the downside risks but you’re right there are a LOT of upside and fun as well. Still, most people that I’ve met over the long haul end up back in the USA. But I do know several that live down South and really love it. They have stable pensions or guaranteed cash flow from investment properties, investments, etc. and they are really living the life.

As you correctly mentioned, if you can experience the best of both worlds I think that is ideal. That’s what I plan to do in “true” retirement once the kids are out of the house.

[earlyretirement]

I thought this was interesting and good to see.

Private universities and colleges being forced to effectively lower their tuition via grants and scholarships.

More parents need to really think about the logic of sending their kids to expensive (in many cases inferior) private schools that cost a fortune.

I’d love to see these schools being forced to cut costs drastically or go under.

http://online.wsj.com/article/SB10001424127887324582004578461450531723268.html?mod=trending_now_1

[earlyretirement]

davelj,

Yeah, you make some great points. Oh yeah, I forgot to mention about the educational system in many of these places. Definitely if you have kids in many places private schools are almost a must. On the plus side when they are older is many of these countries have FREE Universities that are fairly decent for residents.

No doubt, life as a “singleton” is MUCH easier. I spent much of my single days traveling around South America, Latin American and Mexico. It’s just a wonderful place full of wonderful and warm and caring people for the most part.

Some countries are better than others. Someone mentioned Colombia and things have drastically improved over the years. I remember over a decade ago when I first went there, there weren’t many Americans going. In fact, the US State Department was warning against going there.

I remember when I first went even in major cities like Cali, Bogota, and Medellin I didn’t see many Americans there at all. It was TOTALLY obvious I wasn’t from there but I didn’t have any problems at all. Although it was a bit of a culture shock to see police with machine guns roaming around the public shopping malls to protect the stores. LOL.

It still does have pockets of violence but even when I went over a decade ago, if you were fluent in Spanish even if you were obviously a foreigner, you could mostly avoid problems. But to be fair I’ll say that I have family living there now and several of them have experienced random bouts of violence. One has a bullet lodged in his forehead. A thief came on a bus and robbed everyone and started shooting and he literally has a bullet in his forehead which they say is too dangerous to remove. Yet others got robbed.

In all my travels around the world, I’ve never met more friendly and caring and warm people than in Colombia. Just wonderful genuinely caring people. And absolutely the most beautiful females on the planet!

I think the perfect combination in retirement is having a home base here in the USA but going down for part of the year down in various countries. That way you get the best of both worlds. I do plan to spend a few months in retirement living down South once the kids are older and out of the house and we’re empty nesters.

[earlyretirement]

[quote=flyer]My brother and his family live in Wailea, so we usually stay with them a couple of times a year, but always manage to get over to Kapalua. Enjoy your trip![/quote]

That’s a nice low key area as well. We spent some time on the beaches there and enjoyed it. We spent a few weeks there 2 years ago and enjoyed that area too.

Over near Kaanapali we really love as well. In fact, even though we booked a condo we always book a few nights in a hotel as well so the kids can enjoy the pools in that area. Really a fabulous place.

Maui is my favorite Island.

[earlyretirement]

Yep. Flyer you make great points. Many like you mentioned stay for a few years but end up coming back to the USA.

The thing is that for many people it seems glamorous or really cost effective which it can be. But after a while many of these people have most of their family or friends back in the USA. So some of them want to move back closer to grandkids, kids, etc.

One piece of advice I’d have for anyone even thinking about it is get totally fluent in the local language. I can’t tell you how many retirees I’ve met down in various countries that never learned Spanish or Portuguese (for Brazil). Lifestyle and quality of life is MUCH better once you learn the language.

It always amazed me when I would meet retirees that moved to X country and lived there for many years and could only say “hola, adios, or cuanto cuesta” in years of living there.

[earlyretirement]

You guys have great taste. FABULOUS property. I’ve stayed there several times. I’m heading down there next month. Not staying at this property as we rented an apartment but staying in that area. Just fabulous.

[Author]

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