Where to start...

Well first you need to decide that yes you want to move...once you've decided that, start doing research into where you want to live, what you want in a house, etc.

Most people rent for the first 6 months to see if they will actually like living there before they buy. This is what we plan to do as well. There are lots of rentals there - most Real Estate companies have a list of rentals. I found a site that has quite a few in our price range. The site is http://www.panchosvillas.com/ and we're going to try to look at some of their rentals in December when we're there. I've also got some friends keeping their ears open for us.

There are all sorts of things to keep in mind if you want to move there.

First off: You need a certain Visa to stay longer than 180 days. Here is a brief explanation of what they are:

This is the one we normally get - the airlines give you the form on the plane.

FMM - The Short-Term Non-Immigrant Visa

Short term visas are intended for visitors (usually tourists) to Mexico on short term (six months or less) visits. For trips of longer than six months, a non-immigrant or immigrant visa should be considered—see the sections below for details. The FMM has a 'Business Visitor' section, specifically for persons who come to Mexico for short business visits not exceeding 180 days. FMM visas are issued by airlines and are also available at ports of entry*

This is what we'll probably get for the year we're there:

FM3 - The Long-Term Non-Immigrant Visa

Mexico operates what is known as a FM3 visa. The FM3 visa is a renewable long term (more than six months) permit which gives non-immigrant temporary residency status to the holder. This means that it gives a person the right to live in Mexico (under terms as set out in the visa) but it does not lead to, and cannot be converted to, a visa leading to permanent residency or Mexican Citizenship.
There are various categories under which FM3 visas are granted, and these relate to the activities you intend to undertake while in Mexico. Under the terms of the FM3, you are authorized to only undertake certain, specific activities which may be lucrative or non-lucrative, depending on the visa's classification.

This is what we'll probably apply for once we make the move for good...we'll see what the rules are in 5 years or so although they just revamped the Immigration Act so maybe it will stay the same...who knows.

FM2 - The Immigrant Visa

FM2 visas are intended for people seeking permanent residency status in Mexico or those who may seek eventual Mexican Citizenship.
There are various categories under which FM2 visas are granted, and these relate to the activities you intend to undertake while in Mexico. Under the terms of the FM2, you are authorized to only undertake certain, specific activities which may be lucrative or non-lucrative.
You must hold a FM2 for a qualifying period* before you may apply for "immigrant" status or Mexican Citizenship.
You do not need to have held a FM3 visa before applying for a FM2, and any years you may have accrued while living in Mexico under the auspice of a FM3 do not count towards your FM2 qualification period.
If your goal is to seek long-term residency in Mexico, or to become a Mexican Citizen, you should apply for FM2 status (or request a change of status from FM3 to FM2) so that your time starts counting towards the qualification period as soon as possible.
Once you are in possession of a FM2, following the qualification period, you may apply for full residency status in Mexico
When your full residency status has been accepted, you may also begin your application for Mexican Citizenship, although this is optional; you can remain a 'resident alien' on a FM2 visa indefinitely.

 I find this funny, although maybe to get Canadian citizenship it may also be a multiple choice test. I don't know. :-)

To get Mexican Citizenship you will be asked to undertake an exam, which you must pass, in order to acquire naturalization/citizenship. The examination is of a "multiple choice" type, comprises of some fifteen questions, and is not hard—although you will need a basic grasp of the Spanish language to pass it.

This is a really good website for the rules and regulations: http://www.mexperience.com/ and all sorts of 'How to" Guides.

Next up: The cost of living in Mexico