It is already a known fact that Mexico has become a very popular destination for people who are looking forward to move out of the country, especially after retiring. The reasons for which more and more people choose Mexico as the place where they could spend their golden years are countless, but a summary of them would include the proximity to the U.S. and Canada, the favorable levels of taxation, the laid-back lifestyle and warm weather.
If the decision to buy a property in Mexico may be taken quite easily, the actual process of doing it cannot be taken lightly. As with any overseas location, purchasing a property requires plenty of careful research and preparation. In the majority of cases, you will need to request assistance from a reputed professional in order to complete the transaction successfully.
It is of course wise to choose a house in Mexico according to your financial situation and personal preferences. Generally, there are three main categories of people who are interested in buying a house in Mexico these days: those who are after a bargain investment after the fall of the market, those who want to retire in Mexico because it is cheaper to live here and those who simply love Mexico and want to have a vacation home here.
The economic recession made it possible for many people to consider investing in a Mexico property, as prices are at an all-time low. Even though many consider that the worst is over, numerous American buyers have not regained their confidence in making arrangements for buying a new in their country. This is why this is currently a “buyer’s market”, as properties geared towards foreign buyers are currently available in large numbers and price reductions are offered by sellers. There is no wonder the number of real estate transactions in Mexico is currently on the rise.
Another important reason for which a house in Mexico may prove to be the right choice for your retirement is the fact that life in Mexico is comfortable and generally worry-free. You will certainly fall in love with the laid-back Mexican lifestyle, if you haven’t done so already. The negative image of Mexico as painted by the media in relation to the drug related violence along the border is not actually an accurate depiction of the way regular Mexicans and expatriates live. The communities preferred by expats are actually safe and friendly, offering you the opportunity of enjoying each day at the fullest. Many of the properties you might consider are located in private gated communities and you may end up feeling safer there than in many American cities.
The political and economic environment is currently a favorable one for those who are looking for property investment opportunities in Mexico. The growth in the real estate sector is mainly due to the fact that this sector does not rely heavily upon the construction sector. The economic growth is sustained by a decreasing level of unemployment and the continuous improvements that are made in the transport and telecommunication sectors. All this leads to a stabilization of the local currency, the peso, which translates into an emerging market investment environment.
The mortgage market is another reason to invest in a house in Mexico. This was actually introduced in 2003 and it has grown remarkably since then. Decreasing interest rates are available to locals and foreign investors alike. The mortgage market has matured in the last years in terms of accessibility, security and availability. The ever-growing middle class society is nowadays becoming more and more attracted to foreign investment.
If you are interested in becoming a buy-to-let investor in Mexico, you should be pleased to find out that this country enjoys a year-round tourism market with great returns during peak seasons. This is important as the return potential for investment houses is directly linked to the tourism market. Some of the areas such as Cancun are located on the tropical Caribbean coastline, which means the weather is great for tourism all around the year. There are actually more than 3 million people visiting Cancun every year, both for enjoying the nearby cultural attractions and the stunning beaches.
Finally, double taxation treaties and low property taxes have contributed to the increased number of Americans and Canadians who are looking forward to investing in the Mexican real estate market. Even though there are some difficulties with owning land in restricted areas, Mexican Real Estate Trust Agreements can be put in place to solve them. The increasing demand of houses against the supply indicates that Mexico will not be so inexpensive over a decade, so this is a good moment for considering an investment here.