Sunshine, surf, sand and an amazing culture – there are many reasons to move to Mexico! But have you thought about what a strong dollar could do for you when it comes to buying real estate in prime Mexican destinations?
The economic uncertainty over the pandemic has thrown the Mexican economy for a loop. After holding steady in both international markets and the dollar/peso exchange rate for several years, the Mexican peso has become vulnerable. The peso is experiencing record lows with an exchange rate of 25:1 against the American dollar. The peso to Canadian dollar is about 17:1.
More Bang for Your Buck
What can be challenging for Mexico’s peso can be especially beneficial for your American or Canadian dollar. A strong dollar stretches further, allowing Americans and Canadians to get more bang for their buck in Mexico. Examples include more affordable imports and services, the chance to travel or live abroad even if a little later. But that’s not all.
A strong dollar means that savvy real estate investors can buy more when it comes to carving out their own piece of paradise in beautiful Mexico. Whether you’re considering a dream home purchase, a piece of land, or an addition to what you already own, the time is now to make your real estate move. Mexico will bounce back and it will bounce back strongly. The advantageous exchange rate won’t be around forever.
This also affects renters in a positive way. They can scoop up more favourable living spaces in desirable locations for less money.
To better understand what your American and Canadian dollar can do for you, let’s consider two examples:
Example 1: Renting a Home
You found a spacious, fully outfitted condo to rent in a coastal destination. It costs 10,000 Mexican pesos a month. In September 2019, the exchange rate was 18:1. You would have had to exchange $555US to pay the rent. Today, you would have to exchange about $400US. That’s about a 28% discount!
Example 2: Buying a Home
You are ready to buy something special, maybe a 2-bedroom/2-bathroom coastal home. It is in a gated development, has a pool, and is only a 5-minute walk away from the beach as well as markets, shops, and restaurants. The asking price is 2,000,000 pesos. Using the same September 2019 exchange rate, you would have had to pay $111,111US. With today’s exchange rate, you would only need $80,000US. What a deal! (And our buyers thought so, too, as this is a real-life example from our collection of listings.)
Example 3: Buying in USD
Now I am sure you are saying “Wait a minute, much of the Mexico real estate market is priced in USD”. And you are not wrong. We have listings in 3 currencies, USD, CAD and MXN, however often property is priced off of the world USD currency. Huatulco Mexico specifically is a very Canadian driven market and therefore many developers and sellers are offering reduced prices, incentives and/or promotions to make their property more desirable for the Canadian dollar and USD buyer, making it the right time to invest and take advantage of this timely opportunity before the market changes.
Now add in the amenities and services needed to maintain your new home. These can include help with the cooking, cleaning, lawn care, and property renovation. With such a strong dollar and great exchange rates, your hard-earned money can get you more than you could ever hope for in your home country or other retirement destinations!
To learn how a strong dollar can help you with real estate in Huatulco, Mexico, contact us today.