In the aftermath of the global recession which saw its peak in 2009, many homeowners were expecting an accompanied turn around in the U.S housing market. Experts, however, have identified some compelling evidence that on the contrary there may actually be a "double dip" on the horizon.
For investors, this means that it is more appealing to seek other options in the meantime, such as the Cancun property market, which showed much better resilience, and has managed to maintain the confidence of even U.S. buyers. The following are some points about the Cancun market which makes a good investment alternative.
Growing Demand
Even while the market is at a stand still back home, many Americans are still interested in Mexico condos in places like Cancun, both for purchasing and for vacation rental. Complemented by a large number of buyers and vacationers from other countries, this has returned the demand to a healthy post-recession status, making it possible for investors to find properties with good return.
Sustainable Price Growth
On the whole, the Mexico real estate market was little affected by either the 2006 bubble or the recession; the pockets of coastal areas, like Cancun, where most Americans buy, saw a temporary slow down with price reductions that are disappearing quickly. But the return to the steady price growth in these areas is already clear. While hesitant to sell or buy back home, even Americans are buying in markets like Cancun.
Purchase Option Diversity
While the job situation in the U.S. has caused many would-be new home buyers to live with friends and family instead, virtually shutting down this driving force of the real estate market, new Cancun properties are continuing to sell, offering options such as partial ownership for those who cannot afford the price of complete ownership of a new condo. Developers and owners trying to sell have been creative in finding new options to make property purchase appealing. The increasing availability of bank mortgages and direct seller financing (also an official bank process) for Cancun homes and condos are closely tied into this.
If you are an American looking for an investment, you can either wait another year or two for rock-bottom, then invest in a market that is only expected to recover very slowly even then, or you can consider a market that is in a relatively healthy state now – like Cancun. Which sounds better?
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Region: Cancun Real Estate by Cyndi Ader, originally from the US, has been living in Cancun, Mexico for 17 years. She is a member of A.M.P.I. (The Mexican Association of Real Estate Professionals) and is currently a member of the International Relations Committee. She is also an international affiliate of NAR (National Association of Realtors). She is the owner/broker of Cancun Properties Real Estate and specializes as a buyer’s broker.
