
Some random thoughts I have about building or remodeling a house in Mexico.
One question that always comes up is how are you going to get the money down here to pay for the work. Most ex-pats are bringing money from the US or Canada. I only know about the US, it can be a problem transferring large amounts out of the country. Well, not really a problem but there is paperwork involved, especially since 9/11 and Homeland Security. I've done it a couple of ways but the easiest and cheapest so far has been Monex. Monex is a large, international company that is in the money changing and foreign currency investment business. They have large floating accounts in New York among other world currency centers.
On a friend's advice, I set up an account with them. I can now wire money to them in New York, notify them by email or phone that it is coming and they will follow my instructions on what to do with it. Because I'm sending the money to New York and not out of the country, the paperwork has been minimal so far. I can have them hold the money for a day or more if I think the exchange rate will improve, although I get no interest for that time. I can have them exchange it to pesos and disperse it in various checks to people I have set up with them ahead of time. For instance, today I had a check cut for my architect here in Merida, a deposit made for my condo manager to his bank account in Playa del Carmen and I received the rest in person in cash - all this from one wire transfer and at the exchange rate I saw online. They don't charge me for these services but they are getting a wholesale exchange rate so they make their money that way. I still get a better rate than I've gotten from any bank so I'm happy as well. When you are talking large amounts, even small differences in exchange rates add up quickly.
Another service that I get since I have an account is that I can go into their office and write a check on my US bank and cash it in pesos at that day's rate. The check clears through their account in New York but I get my money immediately.
I'm currently setting up an interest account with them and will transfer a CD that is maturing into that account. It is a peso account that pays 5.34%, they also have dollar accounts that pay a little over 3%. Considering the decline of the dollar these days I'm willing to bet that I will do better in the short term with pesos. This is money that is earmarked for the remodel so it will be short term and I will need it in pesos.
Monex has offices in most major cities of Mexico, I recommend them.

The other thing I did today was go to the Social Security office (IMSS) to sign some paperwork for the workers on my house to receive benefits. This is legally required for all employers but it is not always done, some people don't want to spend the money and bet that they won't get caught. Sometimes they don't but if you are caught there is a significant fine. Aside from that, if a worker is injured working on your property you will be responsible for their medical care. As long as you have registered them with IMSS and paid the social security tax on their wages, they will have full medical coverage and other benefits. Mostly, it is just the right thing to do. I can't stress that enough, these are people who are often risking life and limb to work for very low wages. I think there is no excuse for not ensuring that they get the benefits they are entitled to.
I have heard of contractors or architects that enable their clients in avoiding paying this, in fact they sometimes suggest that it is not necessary. One of the things I really liked about our architect was that he was quite clear that he recommended full compliance. There are benefits to having the employer account in your name not the contractors. If there is a claim and it turns out it wasn't paid, it will be you the owner of the property that they will fine. If it is paid and in your name you have the receipts to prove it. Also, most architects work on a percentage over costs basis, paying this separately keeps it out of that equation.
The cool thing today was that we took in a floppy disk and for the rest of the project it can be paid monthly online. I will only have to go to the office one more time at the completion to close the account. As with most government programs in any country, the paperwork involved is daunting. I pay a small amount monthly for an accounting firm to handle all of it. They file it and tell me how much to pay, I pay it at any bank and get a receipt. I can check online that it is current at any time.
There are a lot of things I find impressive about how things are done in Mexico. IMSS is one of them. The IMSS hospitals are competent in most areas and outstanding in some - Merida being one of those areas with excellent care. Once registered with IMSS, the workers have full medical for themselves and their families. If they are hit by a car on the way to work, it is considered work related. If their wife is pregnant, all of her pre-natal care is covered. Same for the kids including preventative innoculations. In fact, almost anyone can sign up for IMSS and pay their own way for a very reasonable amount. Some foreigners do it although I have a problem with that as the system is trying to protect Mexican workers and citizens and of course, it is stretched thin. Most foreigners can afford independent coverage or self-insurance since medical costs are so reasonable. Many don't see it that way, which is fine with IMSS so far.