When planning ahead for retirement, one possible way to gain a property ideal for a relaxing lifestyle in a beachfront community is through a mortgage. The good news is that several properties excellent for
Playa del Carmen retirement come pre-qualified for mortgages, making the process easier.
While every buyer has to evaluate their own finances and decide if a mortgage is a suitable financial tool for their situation, for those who confirm the viability of buying a retirement property in this way it is good to know that there are a variety of options available.
While traditionally, Americans and Canadians buying a home or condo in Playa del Carmen through a mortgage would work through a bank back home, leveraging a property back home, for the past few years it has also been possible to gain a mortgage through a bank directly in Mexico, allowing the option of leveraging the same property they are buying, avoiding tying up home equity.
Mexico mortgages offer a variety of options, including fixed and variable rates, 15-30 year terms and monthly payment packages that include property insurance. Owners can also make payments toward the principal without penalty, paying off the mortgage considerably faster.
The downside is that rates tend to be slightly higher in Mexico than in the U.S. or Canada (about 6.5 % in mid 2010,) and that the paperwork process is more difficult and the approval period is longer.
With condos pre-qualified for mortgage, this second downside becomes much less of an issue, making for both simpler and faster approval. If buying through a mortgage, a buyer should ask their agent for property suggestions that have been pre-qualified, or at least for information about which properties will qualify and which ones won't.
If a buyer is planning ahead for their Playa del Carmen retirement, some of the expense of the mortgage can be covered by vacation rental; if rental is given priority, owners can actually apply larger amounts towards the capital. In this case, buyers should discuss plans carefully with an agent to choose a property ideal for renting out to vacationers. A few condos in quiet residential neighborhoods downtown, only 2 or 3 blocks from the main tourist areas and another two blocks from the beach have good potential for this kind of income, and a number of these are pre-qualified for mortgages.
If you are planning ahead for retirement in a beachfront community, explore your financial options, and consider buying through a mortgage or other financing options.
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