Several months ago, when we decided that Nicaragua was not where we were going to settle, we did some research and Paraguay popped up as a possible option. Paraguay actually came across our desk by way of a shared, expat community website that was looking for people to join them.
We reached out and had a few meetings with some people from that community. They seemed like nice, genuine people and explained that the choice to become part of that community had worked for them.
We dug a little deeper and found quite a lot of information about that community and in that process asked many questions.
Perhaps if you are thinking about becoming involved in an expat community our investigation journey may be useful to you.
It All Starts With a Location
There’s no point signing up to heaven on earth if you don’t have water or other essential services. Sure, you might decide to be an entirely off-grid community and independent of electricity. If you do go that route then you need to factor in the costs associated with alternative power options. So make sure your due diligence checklist includes;
– Water, electricity options
– Access to the property. Is it on an unpaved road? If so, is it accessible in the wet season?
– Does the area flood?
– Is the community in an area that’s impacted by chemicals from nearby agricultural operations?
– Is the area prone to crime, particularly expat targeted?
Logistics and Who Manages What?
Logistics win and lose wars. Likewise, communities stand and fall, dependent on the quality of their logistics.
If the community is making or growing products for sale, consider the logistics. Is the business plan viable? Where is the market, how will the products get to the market? Who will manage the labor and what happens if some members contribute more labor than others?
Legalities and Fine Print
Fine print is small for a reason. Perhaps the only thing worse than a nasty clause in the fine print is a nasty clause that isn’t in the fine print. Such is the reality of legalities.
As much as we would like it to be otherwise, legalities will always be part of the deal, whether they be written or oral. Regardless of their form there is a fundamental truth about legalities. We either work together in agreement or we suffer the consequences.
This is a blog post rather than a legal treatise and it should go without saying, do not think about handing over money without getting independent, qualified legal advice.
However, pertinent questions to ask might include;
– What is the legal structure of ownership of the land?
– Who’s names appear on the title?
– What legal protection does that give you in the country in question?
– What happens if you want ‘out’ of the community?
– What happens to your ‘share’ if you die?
– Are there codified rules/laws governing the community?
– Who are the people ‘in charge’ of the community?
– What is their track record of success?
– Where are their successful communities?
– Are there independent parties that can attest to the success of their communities (past or present)?
– Does the community have other people who have actually invested in the community?
– Are you able to have dogs, cats, other animals on the community?
Ongoing Costs
Land taxes are comparatively low in Paraguay compared to the Western world…at the moment. But one thing is for sure, they will go up. So you need to know, in terms of your liability;
– What are the ongoing and projected ongoing costs?
– Land taxes, internet, water?
– Maintenance, replacement, insurance, registration of builidngs/fencess/machinery/plant/equipment?
Is There an Articulated Community Moral or Spiritual Code?
Love, light and happiness are nice, but many a community has failed due to a clash of moral/spiritual paradigms. If it were simple we would perhaps not be thinking about joining a community in the first place.
If an individual who is driving the community is acting as the single source and author of the moral/spiritual code, without a mandate or consensus of the entire community the warning signs of a cult might be screaming for your attention.
Each to their own but take care. Not all that glitters is gold.
Does the Community Have a Clear SHTF Plan?
I won’t go too deep down that rabbit hole. Suffice to say, there’s events that may occur in the future that may well challenge individuals and communities to the max. You might have the attitude that this just does not matter to you, and that’s entirely fine. However, if you are the kind of person who wants to be prepared for the various scenarios that might be just around the corner then it is worth considering how the community is positioning itself.
In table-topping such a scenario it might be worth thinking about the realities that might come with living in a designated expat community should a situation arise. Perhaps it might be an ark of sorts, or it might also attract desperate people and authorities.
The choice between being part of a centralized community as opposed to going it on your own is a big one. Neither is without its risks and potential benefits. All things to think about.
Do You Need to Be Part of a ‘Shared, Expat Community’?
To be clear, when we say community we are talking about a defined, shared, expat community.
Consider this, are you comfortable with losing your autonomy? The freedom to sell your property, invite family and friends to join you. The ability to interact with the community as an individual rather than a member of a community?
The other consideration that you should make is, in terms of the proposed financial investment the community is asking you to make, how far would that money go if you purchased your own property? Take the time to research how far your financial resources will go should you go it alone. You can find online resources to assist you with this research here.
Can ‘Communities’ Work?
Of course they can. There are flourishing communities in Paraguay and elsewhere. For example, the Mennonites and Amish are but a few examples. These communities are the champions of making it work, but they operate under an entirely different regime to what most ‘conventional’ people would think of doing.
It is reasonable to assume that their relatively strict moral code and belief system has been a fundamental part of their success.
Our Take on ‘Shared, Expat Communities’
This is entirely our opinion and perspective. Each to their own, and we are always willing to be corrected if there’s examples that emerge that prove otherwise.
Shared, Expat ‘communities’ are not for us, but I say that with a qualification. I believe there are potential advantages of buying larger parcels of land with others and then sub-dividing. The process of sub-division is straight forward and cost effective in Paraguay.
An obvious advantage of going this way is that, when it comes to property, you can buy cheaper if you by more. Not only that, smaller parcels of land that are suitable for a nuclear family are becoming increasing difficult to find. There are many tiny blocks of land and then there are large sections, but often not a lot in between.
The other benefit of this approach is that you can have initial influence on who you live next to. This hopefully creates a ‘community light’ kind of relationship with your neighbors. You can collaborate, trade, and share resources in a manner that’s reciprocally beneficial. All parties have the freedom to partake or refrain.
Regardless of the Model, Community is Vital
When we were in New Zealand we had quite a bit of incidental interaction with off-grid, alternative communities. We gravitated more toward those that actually grew their own food and built their own structures. The shared consensus was that it is incredibly challenging to create a self-sufficient, stand alone oasis. People need people.
There is a reason why humans have formed themselves into communities and there are common ties that bind. Some good, some bad. Our challenge is to find our rightful place.
May you find your tribe.
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