Thomas Lloyd,  Broker By Thomas Lloyd
2010-06-01

While the recession is coming to and end, and many can relax again, reports are warning that some things have changed for good; some jobs will never come back to the U.S., and, on a national level, bills are coming due for borrowed money used to get through the hard times. One study created a list of some difficulties Americans are likely continue to see and will perhaps even have to deal with them more directly. The dream of buying Mexico real estate and living in Mexico has been considered a little luxury for a long time, but this possibility can actually help you to deal with a rough recovery from the recession, and the changes that experts way will be permanent afterwards.

One of the most likely changes from the part of the U.S. government to deal with a big deficit and even bigger debt is that taxes will increase and government services will decrease. (Yes, we already get quite little compared to what we're paying out, but many experts agree that the government will move in this direction.) And the areas that will see it the most – education and Medicare, which are areas state and local governments spend the most on. Who's hit the hardest? Families and retirees. While this trend will be true in most of the world, the reaction from residents will have to start planning for these expenses.

One of the best ways to do this is to live in a place where high-quality services are available for a relatively low price. Excellent private schools in Mexico are available for a reasonable price, and even more noticeably, world-class healthcare with state-of-the-art equipment and very professional staff is available in Mexico for 50%-70% less than in the U.S.

Another prediction – people will retire later. Because of the high financial pressures the Social Security system is going through with more and more the Baby Boomer generation beginning to high retirement age, Baby Boomers are also hit the hardest by a rising retirement age to delay the beginning pay-outs, and relieve the strain on the system. The age is officially supposed to go up to 67 within less than 30 years, but experts predict that the age will actually go up more and sooner. Besides the fact that the cost of living in Mexico is considerably less than in the U.S., making it much easier for retirees to live comfortably on a smaller budget (removing the ever more common necessity to delay retirement on your own choice to help make funds go further,) those who find a way to invest in Mexico will actually be able to retire sooner than later. The possibility of investing in Mexico will actually help as a solution for the next 3 points as well.

These are that income will not rise as quickly as the growing expenses from the rising taxes and decreased services. Closely connected is that job security is permanently lower; although the recession is ending, cheap foreign labor is an ever growing form of competition. This means jobs that exist will be less likely to increase pay as much as in the pass, and with globalization and the internet, many more jobs are now susceptible to cheap foreign replacement. There is also less certainty that large companies or other institutions will take care of their workers, either through long-term job stability or long-lasting benefits, which are now likely to disappear without much notice.

The best solution to deal with this issues is to have a secure plan of how to take care of yourself. Besides being one of the best retirement or re-location options for Americans, buying Mexico property can serve as a substantial investment income, leading to both income security and early retirement. Talking to a real estate expert in Mexico could help you find the security that is becoming ever less common north of the border.

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Region:  Playa del Carmen real estate.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. A Mexican Certified Realtor he is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546.

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