cinderella returns home barefoot

When I was in Barra de Navidad and La Manzanilla last November and December, I wanted to see several houses. As luck would have it, one of the houses in Barra sold the weekend before I arrived. So, I looked at several other houses -- and found two that interested me.

Those of you, who have been following this blog, know the rest of the story. I started my tortuous analysis on when I should move, and concluded that I would probably move to Mexico in April of 2008. I would rent for 6 months each in Barra de Navidad, La Manzanilla, and Pátzcuaro -- and then buy wherever I had decided to settle.

Well, the winds of change are blowing again. The realtor I was dealing with in Barra sent me an email on Tuesday letting me know that the sale failed and the house was back on the market. I must admit that it was like hearing that your favorite ex-girlfriend has popped back into your life.

And there is the first warning sign. Comparing a house to an ex-girlfriend should raise all kinds of flags. But let me share some photographs of my sweetheart.

The house is not right on the beach, but it is an easy walk to downtown Barra and the beach. Because it is at the beach, the houses are very close together -- and the lots are very small. Two bedrooms. Two and a half baths. A terrace patio off of the master bedroom on the second floor. With a very nice kitchen.

But it is the little touches that make a difference. These stairs lead from the back yard to the upstairs terrace. Each riser is painted a color from the interior of the house. How cool is that?

And, Nancy, I have found my traveller's palm -- and birds of paradise.

But, I saved the best for last: a pool. Anyone who has spent any time on the Pacific coast in the summer knows where I will be spending most of my time. Good-bye, hot tub. Hello, pool. Meals and reading are about to have a new -- but similar -- venue.

Now a little cold water to be poured on that dream. I still have the same time frame issues. Retirement sometime between January and April 2009. Selling my house in Salem. Those facts have not changed.

And a new issue has arisen. In talking with non-Mexicans who sell property in Mexico, there appear to be a lot of different answers on whether Mexican residency can be claimed to take advantage of the Mexican capital gains tax exemption. Like most "residency" requirements, the application is fluid because it is based on weighing a series of factors. I know that none of you are tax experts, but do you have any idea if residency is assisted if the only residence a buyer has is the one being purchased in Mexico, and if having an FM3 at the time of purchase is a favorable factor? It would make sense that if a person has sold all other residences prior to purchasing a Mexican home, residency should weigh toward Mexico. It will be interesting to see what each of you have to add. I suppose the only trustworthy advice is that you know you can use the exemption when you try to use it and Hacienda approves it.

Now I need to either get back on track with my renting plan -- or I should start the negotiation process to tie the knot with my new princess.