When we first started looking here the conventional wisdom was to rent first and then if you like it to buy if that was how you wanted to invest your money. In the ten years we came back and forth to Mexico the real estate prices went up, down and right now back up again.  In 2001 we decided to buy without renting first. Why? Well it is a personal decision. You have to know yourself! We are not second guessers. When we make up our minds we just do it. We had been coming back and forth for eight years! We felt we knew what we wanted by then and when we came down the year before we both turned the magic 55 we decided if we found something we liked we would buy it.  At that point we were lucky as the prices were not in the current manic phase. 

All that looking for eight years had crystallized our list of needs for the house we wanted to live in. We knew that with the onset of my arthritis we needed a one floor home. We had investigated all the neighborhoods and knew we wanted to be in the village proper.  We were lucky enough to find the home that fit all our needs in a price we could afford! We bought it and then rented  it out until we could come down the following year. It worked for us. Renting first may work for you!

November 2007- Prices have stabilized and some have dropped. Mostly due to the housing stagnation  NOB. Still with all the new construction, buyer beware. It may look great new but the work may have been very shoddy!

May 2006-Prices and availability here in the village seem to be only going up (the prices, not the listings!)  You may decide to rent now but many people are only doing it short term- 6 months or less. Depending on your financial situation in more than six months you may find yourself priced right out of the area/market you are looking in. Land prices if you are planning on building are way up! Then again some people are leaving their money in wherever and just doing rentals. There don't seem to be many really nice long term as in more than a year or two at most. So if you do this you have to be prepared to move a lot.

Here are some things to consider if you are looking at a long term rental (thanks Wendy).

LOCATION: What is the distance to the nearest grocery stores, bus stops, airport, good doctor, dentist, hospital etc. and availability of English speakers if you are not fully bilingual? Avoid locations near bus routes, workshops (tallers), etc. A locale that seems quaint and/or picturesque on a vacation with strong smells, loud noises, traffic etc. may become less tolerable over a longer stay.

SERVICES: Inquire locally for costs of butane gas, electricity, water and telephone, garbage collection etc. Investigate methods of paying your bills. Failure to pay bills on time, often results in immediate discontinuation of services and sometimes a delay in reconnection.

WATER: What is the source of the house's main water supply? Does it come from city mains, tinacos on the roof and/or underground storage tanks? Is there sufficient pressure to keep potable water flowing? What is the condition of the electrical pump? Where is the cut-off valve between the house and the city water main? Hot water tank-where is it located? Is the combustion well-adjusted and the tank vented properly? Do the faucets or toilet valves leak? Does the toilet, shower stall, sinks drain properly? Is the place on septic or sewage? What is the condition of the essential service infrastructure of your town?
 

ELECTRIC SERVICE: How dependable is the service? Is it grounded properly? How many electrical outlets are included in each room? Where is the fuse box or circuit breaker located. Customarily, electrical outlets may not be grounded properly, hence giving electrical shocks. They may also only have two holes instead of three for electrical appliances. This means you will have to saw off the third prong of the electrical appliance.

COOKING: What is the condition of the stove and refrigerator? Test the burners, oven, freezer compartment etc. for function.
As the renter is usually responsible for maintaining own cooking fuel supply, suggest having two gas tanks with valve to switch from empty to full. Ensures that you do not run out of fuel while awaiting arrival of `El Gas'. If furnished, what is the condition of the dishes, cooking utensils, furniture etc? Is there sufficient closet space in the rooms or will you need a portable closet (ropero)?

SECURITY/PEST CONTROL: Are there any obvious signs of pests, rats, cockroaches, ants, termites, mosquitoes etc.? How are you going to prevent infestations? Are the mesh screens on windows and doors intact? Does the roof, windows or doors leak during rainstorm? What is the condition of the carport or garage? Off-street, secure parking highly advised. Are doors and window locks adequate and in working order? Steel bars in place? Can thieves get over walls or access your place from neighbor's roof/walls etc. Who are the neighbors, how do they live, are there barking roof dogs etc. What other arrangements can be made for 'security' when you leave the place.