While more and more Americans and Canadians are planning to retire in Mexico, sometimes the prospect of buying a retirement property ahead of times still seems to put an overly large strain on the budget, even considering the fact that property prices are considerably more accessible in Mexico.
One option to help make this more accessible is a Mexico mortgage. Viable mortgage options are available and are becoming ever more common among American and Canadian buyers. Those planning ahead to retirement can consider a variety of options to use this tool for their benefit, including:
Paying the property in the next 10-15 years. For some people this is a huge benefit in itself, since it's always easier to have the option of monthly payments than having to come up with everything in one big chunk. This also allows buyers to keep the savings they have in tact.
Double as vacation property. Of course, this property will be in Mexico; why not come down on vacation to enjoy it in the mean time? In this case, in addition to paying off a retirement property, owners will also enjoy savings from hotels and food during vacations in the mean time.
Double as rental income. Whether an owner uses the property for their own vacations or not, a considerable income can be gained from renting out for both vacations and for long term. Done casually, this can cover any expenses, and contribute a little to the payments. Done with a decisive, clear investment plan, the property can almost pay for itself, leaving the owner not only with current savings in tact, but also saving the rest of the money that would otherwise have to be contributed to the home payment, allowing them to live in Mexico with that much more comfort!
For any buyer considering this last option, it is necessary to consider the location, size and general appeal of the property for renters, considering factors if it will be long term, or vacation rental, and these factors may have to take a little precedent over personal tastes for retirement. Fortunately, most of the favorite vacation locations are also ideal for retirement. Of course, it is necessary not to "bite of more than you can chew" – buyers should always ensure that they can cover their payments in the case that rental doesn't covered it every month (If a property is carefully selected, generally this is not a problem with Mexico's strong tourism industry, but as the last recession showed us, it's always good to move with care.)
Of course, these same options could be used back home, but the difference is that in Mexico, beachfront or beautiful lakefront properties are available for a much better price, offering owners an ideal future retirement property!
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