Home Security: Prevention or a Costly Recovery?

Security measures too often neglected within touristic communities

The unthinkable happened. I was a recently a victim of burglary twice within a one week period, the second time before I finished all the security measures that I had planned after the first incident.  Both events were perpetrated by the same criminals according to two different casual observers who saw what they thought were two men in a white car “doing work” on my house. The feeling of violation was undeniable and the mounting cost of my financial loss was upsetting. A simple social “hack” (i.e. their deception of being “workers”) had given the crooks time sufficient to relieve me of most of my personal valuables.

After multiple, consistent recommendations from fellow expatriates in the region, I decided to interview Sergio Hernandez, Director of El Vigilante alarms and monitoring service based out of Rosarito, Baja California to get a 10-year seasoned veteran’s views on home security issues. El Vigilante installs and monitors alarms systems 24 hours a day, 7 days week, including holidays.

From behind the desk of his modest office in downtown Rosarito Hernandez told me, “Sadly, 80 percent of my new clients arrive after they have had a burglary. People simply are not in the habit of preventing security problems. Many of them have lived for years without an incident and simply think ‘if it hasn’t happened by now, it never will.’ They wait to be a statistic before they take action.” (He had me pegged on that one.)

Hernandez commented about the unfortunate reality that handymen, workers, and even security guards may be complicit since they have access and detailed knowledge of home owner’s schedule. This is especially true for large burglary hauls where even bulky items such as pianos are taken. Such burglars are clearly confident that the owners will not appear.

Hernandez reputation does seem to indicate that he knows effective security. For 10 years, two of the major insurers in the region that cater to foreign clients provide discounts and waive deductibles on certain home insurance policies if home owners contract the services of El Vigilante.

Alarm systems are particularly helpful at preventing and minimizing the impact of a burglary attempt because the very presence of an alarm system with its stickers, siren, and visible strobe light causes the burglar pause about the real potential of getting caught. The warning and the blaring siren is enough to prevent the vast majority of burglaries—Hernandez estimates “90%.”

Yet no system is perfect. Petty burglars or crystal meth addicts looking for just a few dollars for their next drug fix may not even know how to read or have the frame of mind to even hear the otherwise earsplitting siren. Hernandez noted that his patrols have frequently found drunks and drug addicts passed out on the floor in homes that have been breached with the alarm still blaring.

Here are some tips that can help put Mexican home security systems into perspective and make them more effective:

·         Identify the weakest points of entry to your home and resolve them. Those will almost certainly be the points that the criminals will use to gain entry.

·         Verify your alarm company’s state license to install and monitor alarms. Surprisingly most companies in this area do not have the proper licenses to install and monitor systems. Further, a license to provide security guards does not necessarily mean that company has a license to install and monitor alarm systems. These activities require two separate licenses.

·         A reputable company will not ask you for keys to your home. You may however choose to give them a key to a patio gate so that they may fully inspect the exterior of the home in the event of an alarm.

·         Remember that the point of home security is not to make 100% certain that there is never intent on your home. That is an unreachable goal. Instead, think about how to organize your security give a burglar as little time as possible in the case of an intrusion. This is where an alarms system and monitoring are particularly important.

·         A neighborhood watchman or guard is not a substitute for an alarm system on an individual home. Not only are guards unable to be all places at all times, there are unfortunate cases where guards have been directly involved in burglaries. Make sure your guards are deserving of confidence and protect your own house. (I plan a future column on security guard selection and oversight.)

·         A good alarm system will have at least a 12-hour battery backup. This means that the system will function and be able to alert the monitoring station even in the event of a power outage.

·         Make sure that the phone line used for monitoring is not easily tampered from the street. It is best if the phone line enters your house from as high a point as possible.

·         Ask your alarm installer to provide you with wireless panic buttons. These (normally) silent alarms will cause both your alarm company patrol and police to be dispatched immediately.

·         If you are in the home and you hear the noise of an intruder, call 066 (NOT 911) and stay on the line with a bilingual emergency representative. Use the panic button that your alarm company provided you.

·         Never give your alarm codes to workers, guards or the like. You may trust them but you certainly don’t trust all the people that they know and work with. Your alarm system is part of your security shield and you should treat it with at least as much respect as you treat your bank ATM card and PIN. Never post your alarm codes in a place obvious to others.

·         As a side benefit, a well-designed alarm will give you peace-of-mind when you return home. Deactivation of the system produces audible notifications from the siren that tell you that the system is disarmed and that all was well in the home while you were away.

·         Reputable alarm companies will program at least two modes for your alarm system:  At Home and Away. The purpose is to protect your belongings when you are Away and to offer intruder alerts to external access points if you are home in order to protect your physical welfare when you are At Home.

·         Be responsible with your alarm (and your drinking!). One common cause of false alarms for Hernandez’ foreign clients is that they arrive home inebriated and they neglect to properly deactivate the alarm! Yes, living in Mexico can be fun but keep it in check and be smart.

Brian Flock is a degreed and certified real estate broker in the region of Rosarito and Ensenada in Baja California, Mexico.  He may be contacted at Flock Dream Homes (www.flockdreamhomes.com), brian@flockdreamhomes.com or (619) 793-5224.

Sergio Hernandez is director of El Vigilante, an alarm company that covers the region from Rosarito to Ensenada. El Vigilante can be reached at alelvigilante@yahoo.com.mx or 01 (661) 612 41 74 in Mexico.

Mexico Real Estate: The True Price of Adventure in Paradise

An open look at the cost-of-living in Mexico

By Brian Flock (as published in Mexidata.info)

Would-be expatriates look for home destinations that appeal to their individual definition of adventure and paradise. For the first time, International Living reported Mexico as the world’s top retirement haven because of its economy, real estate, and quality of life. That was great news for Mexico yet it missed some important details on cost-of-living from the experience of those who have already jumped at the dream of paradise on a budget.

Real Estate

The main attraction for those migrating to Mexico has clearly been the real estate, as evidenced by the phenomenal growth of the home market here, especially since 9/11. Not only are oceanfront and ocean view properties still 50-80% less than their US counterparts (if there really is a direct comparison), property taxes are a tiny fraction of states within the United States. Coastal and inland water-view living is simply a bargain in Mexico when compared to the United States.

Services

Salaries in Mexico are much lower than north of the border and this shows itself in all kinds of services that expatriates need every day. Doctors, dentists, constructions workers, handymen, mechanics, housekeepers, and gardeners all charge 50-75% less than their US counterparts. The net affect is that expatriates can extend their money and even improve their quality of life. Other services such as entertainment are also much less in Mexico.

Groceries

It is challenging to compare the cost of food in Mexico to that in the United States. Mexican cuisine is substantially different than the normal daily fare of Americans, and it can be quite economical. However, adding a variety of dishes common to the multiethnic menu of today’s American poses challenges of supply and a substantial increase in food costs.

The saving grace seems to be produce, which is fresher and offers more tropical favorites such as papaya, mangos, plantains, avocados, and guavas at good prices throughout Mexico.

Energy

Energy is about two to three times the price in the United States, with the exception of gasoline which is currently about 25% less than the going US price. This comes as somewhat of a surprise to foreigners who think nothing of leaving their PC and monitor burning at all hours of the day, and who ignore the “vampire affect” of the many chargers and electrical adapters scattered throughout their house.

Electronics

Mexico’s stiff import tariffs on electronic goods from Asian competitors mean that electronics in Mexico are notoriously expensive. Adding the Mexican value added tax (IVA) makes these products cost about double the identical product in the United States. This is a serious consideration when thinking about adorning a new, Mexican home with a 55-inch plasma display for the living room! Notable exceptions are Mexican-made and Mexican-branded appliances that are on par or slightly less than their foreign equivalents.

Clothing

Most foreigners don’t bother buying clothing in Mexico for the same reason that many Mexicans along the border with the United States avoid buying clothes in Mexico. The quality of common clothing is relatively poor, or the price of good quality clothing is 30-50% more than in the US. And say goodbye to well-advertised sales in your Sunday paper. There is simply no such analogy in most of Mexico. Most expatriates continue to purchase their clothing on their trips to the United States – easier for border areas like northern Baja California but more challenging the further you go into Mexico’s interior.

Communication

Telephony in Mexico simply costs more. There is a good reason that one of the world’s two richest men is from Mexico!

The good news is that high-speed Internet is now ubiquitous together with basic local telephone packages. Many foreigners control telephone costs by eliminating all the frills on their Mexican telephone line, and by making use of voice over Internet products such as Vonage and Skype. These services make calls back home economical and even save money on calls within Mexico. For example, a one minute call using Vonage to Mexico City costs about a penny a minute with eight cents a minute being the norm. Compare this with 25 to 45 cents a minute for long distance within Mexico on a Mexican line.

Economics is one of the generally positive aspects of life in Mexico. A future column will also cover the spectrum of quality-of-life factors from the perspective of current expatriates in Mexico.

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Brian Flock, a Mexidata.info guest columnist, is a degreed and certified real estate broker in Baja California, Mexico.  Cofounder of the Baja Fair Trade registry, he may be contacted at Baja Ocean Realty or (619) 793-5224.

Baja Real Estate: US Escrow vs. Mexico Escrow

http://www.bajaoceanrealty.net/US_Escrow_Compared_to_Mexico_Escrow/page_2042098.html

The Same Word yet Two Countries Apart

Transaction security is essential to a healthy real estate market. However, many new buyers are surprised to learn processes that they take for granted in the United States are either optional or don’t have an exact equivalent in Mexico. This column will explain the key differences pertaining to the term escrow since it means something quite different here than in the US.

In the United States escrow normally refers to the complete process of closing a transaction and securely handling money, for which the escrow company receives a fee. These companies tend to be title insurance companies that also offer a title insurance policy and provide all closing services. (See table below)

In Mexico escrow refers exclusively to the secure handling of money by a third party, usually a title company or notario público (Mexican notary) for a fee of around $550. The remaining closing services are commonly handled separately, for a separate fee, by an independent closing company, the developer, a lawyer, the notary, or a loan company.

ESCROW	US	Mexico
Common meaning	Funds management   Closing services and administrative oversight of paperwork   Ordering of title insurance   Order inspection reports   Estimate closing costs   Interface with lender requirements	Funds management only
Administered by	Title insurance companies	Title insurance companies   Mexican notaries

      Escrow means different things in the USA vis-à-vis Mexico.

 

 

When purchasing property one of the most important considerations for both a buyer and seller is whether, and under what conditions, the transaction funds will be safely held and distributed by an independent party. In an international transaction, this issue is even more important and often complicated, as either the purchaser or the seller may not be familiar with, or comfortable, having funds deposited in a foreign jurisdiction or with an unfamiliar attorney or bank. Utilizing escrow services from established title insurance companies helps provide a fair level of security to all parties in the real estate transaction.

According to an independent closing services company that I questioned on the subject, “The holding of funds (escrow) by a neutral third party … is one of the safest ways of conducting a real estate transaction in Mexico.  One of the many benefits is that the buyer, the seller and the escrow company must sign the escrow instructions which explicitly state the terms for the money to be held in escrow.  In addition, in order for any funds to be released from the account, both the buyer and the seller must sign the distribution instructions so that all parties are aware of where, when, how much and to whom the money is going.”

I have personally observed that some agents tell their clients that “escrow doesn’t exist,” or that “escrow is not legal in Mexico.” My sincere hope is that this opinion is expressed simply due to a lack of knowledge about the purpose of escrow in Mexico, and not a desire to receive commissions sooner and easier. An unscrupulous agent may rally against escrow in order to hide commissions that exceed the customary fee, or to gain quicker access to buyer deposits. Buyers should be exceptionally cautious about an agent that advises against the use of escrow with a trusted, third-party company that is not involved otherwise in the transaction.

I strongly encourage buyers to use escrow for real estate transactions in Mexico whenever feasible. They should not underestimate the value of their own peace-of-mind. Have a knowledgeable real estate agent or title services agent guide you on the method of negotiating balanced escrow terms that are fair to both parties.

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Brian Flock, a Mexidata.info guest columnist, is a degreed and certified real estate broker in Baja California, Mexico.  Founder of the Baja Fair Trade registry, he may be contacted at Baja Ocean Realty or (619) 793-5224.

As printed in:

MEXIDATA . INFO