Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

An American in Cancun

Recently, I traveled to Cancun to purchase some land.  The timing was good, as the peso was trading at 13.09 to the dollar.  Cancun has multiple major construction projects going on, and the city is bustling.  I consider cities like this to be in short supply, as it has plenty of things for tourists to do, and will satisfy most everyone.

Additionally, I think that the coming escapism will serve the city well.  If you look at the box office receipts this year, they appear to be rather high.  In my opinion, that's a good reflection of people that are looking for a way to think about something besides the bad news.  Avatar took in well over $1 billion internationally, and that leads me to believe that escapism is alive and well around the world.

So, to complete the real estate transaction as a foreigner, I will need an FM2 form, which is a visa that leads to permanent residency.  It's not difficult to get, as long as I can prove that I have sufficient outside income to live in Mexico.

Something else that came up was this:  to open a bank account there, I would also need the FM2.  If I deposit more than $1000 US per month, there is a 3% tax automatically taken for the govt.  That's brutal, when you consider the VAT tax there is already at around 17%.  Never let it be said that the Mexican govt. cares too much about its people.  The new 3% tax is especially harsh on people working in the US and depositing money with their relatives in Mexico.