There are many ways to invest in Mexico and investing means something different to everyone. This ‘How To' outlines the top 3 opportunities for investing in Mexico property. These opportunities are to:
- Invest in Mexico property that increases in value.
- Invest in Mexico to receive revenue from your vacation property and;
- Invest in Mexico for a better quality of life.
Invest in Mexico property that increases in value
Yes, even now.
In spite of global challenges, the Mexican real estate market continues to stay strong with Mexico property increasing in value in unique destinations. Canadians and Americans have increasingly strong buying power which continues to sweeten property deals in Mexico. Huatulco is one of the perfect destinations for real estate investment due to its low-density master plan, sustainability norms, green buffer in and around the town and its vibrant expat community.
Not only are Baby boomers seeking out investment opportunities in tropical and vacation locations. Due to the pandemic, many people have begun working remotely and they're not going back to the office. They also want to invest in an alternate lifestyle and something that is relatively close to home, making Mexico the perfect spot.
The Mexican government has also made it easier for foreigners to buy land. Foreigners can buy and sell property in Mexico through a real estate trust called ‘fideicomiso'. A fideicomiso allows a foreign buyer to receive full title and the property can be sold, transferred and willed, similar to any property in Canada or the U.S.
Invest in Mexico to receive vacation property revenue
Mexico has traditionally been the most popular country in the world to buy a second home. It is a short flight for travelers from the U.S. and Canada and flights are relatively inexpensive.
Smart investors are realizing that with real estate prices so low in Mexico, it’s the perfect time to buy an investment property. Renting out your vacation property is money in your pocket and will allow renters to help amortize your mortgage for you. It may also be a tax write off for you. You may be able to write-off interest on your mortgage you used to purchase the property as well as expenses such as insurance, maintenance repairs, travel expenses, any legal and professional fees. It is recommended to consult an international accountant to discuss what you can write-off.
In addition, the pandemic crisis has made destinations like Huatulco more desirable for people looking to rent for longer stays, with all the amenities and in less-populated areas. During the pandemic, many companies and their workforces learned productivity was possible outside of the office. Now that working remotely has entered the mainstream, we may see a new trend of people taking longer trips that combine work and pleasure. “A lot of people have gotten comfortable that they don’t have to squeeze a nine-day vacation into six. They can take the extra days and maybe work a couple half-days remotely,” said vacation-rental company Vrbo president Jeff Hurst. “I do think we’re going to start to see people be more creative on how they think about working from any house, as opposed to just their own house, or any destination as opposed [to] from just their office.”
Mexico has long been the destination of choice for Canadians and Americans for many reasons including climate and the fact that it is easy to get to. Both of those factors combined with high-speed internet and lower property investment opportunities, make investing in Mexico vacation property a logical choice.
Invest in Mexico for a better quality of life
The warm weather, slower pace and lower cost of living make for a desirable location when investing in Mexico real estate. Investing, retiring and living in a country with a hará mañana (‘will do tomorrow') attitude symbolizes the laid back quality of life that people dream of. This feeling is especially apparent along the Oaxaca coast of Mexico. Being dubbed as ‘Mexico Without the Crowds, or Attitude' and a place that provides travelers and expats with ‘beach bliss', Oaxaca is an attractive place to slow down and enjoy life.
The low cost of living in Oaxaca also makes it the perfect investment spot. Statistics have shown that one can live in this State for half the cost they do back home without sacrificing the luxuries they are used to. Delicious organic fruits and vegetables are literally half the price of Canada or the U.S. and luxuries like spas, maid service and dining out are easily affordable.
From it's low cost of living to stress free lifestyle, the Oaxaca coast is perfect for those who want to shift life down a gear or two and enjoy their retirement, alternate lifestyle or investment property. Let us know how we can help you take advantage of these opportunities.