Headlines in Canada have been pointing to opportunities for Canadians interested in a Mexico Real Estate investment. In Canada, real estate sales have jumped tremendously during the month of October, and high bidding competition is eating up good deals. If we combine this with the fact that the Canadian dollar is reaching parity with the U.S. dollar, and that Mexico Real Estate is still offering considerable price reductions (sometimes as high as 35%), it looks like an ideal time for Canadians looking for a winter home or a retirement property to make their move and buy real estate in Mexico.
The month of October began with sure signs of a healthy housing market in Canada, and in the middle of October the market was showing not only normal but high sales.
Even at the beginning of the months some sources were saying that the supply of housing was getting scarce in just about all of Canada's biggest cities - Toronto, Montreal, Vancouver, Calgary and Edmonton among various other cities. As a consequence, heavy competition in bidding had led to a tougher market for anyone looking for a good deal. Prices for two storey homes are up from October 2008 only 0.1 % - the average is $410,000 (remember, this is the price for just an AVERAGE house); while the increase is very low, tough buying competition will already make hard to find a good deal.
Another factor for Canadians to consider is the climbing value of the Canadian dollar. By the middle of October, the Canadian dollar had reached 97 cents U.S., and some experts predict that the dollar will reach parity again by early 2010. This means that the buying power of the Canadian dollar is at one of the highest points that it has had in decades, especially when compared to the peso which has been sitting at about 13 pesos per U.S. dollar for some time.
Now take all this and compare it to the situation in Mexico. In the major Mexico Real Estate areas for North Americans the supply is still larger than the demand, and many sellers are still offering super price reductions. A top-notch Mexico Condo (far above "average" in terms of luxury and design) in Puerto Vallarta, for example, can be found for a discount of as much as 30-35%. Other areas, such as Playa del Carmen real estate, Cancun, Ixtapa, also offer price reductions and preconstruction discounts on condos. Homes can be found for excellent prices in these areas, as well as Lake Chapala. Tulum is offering great prices for lots with high development potential. Great offers can currently be found in many other beachfront locations. Besides accessible prices, developers and banks are also offering other attractive financing options and very accessible down payments.
Canada looks to be pulling out of the recession a little ahead of many other parts of the world; this makes it an ideal time to buy in Mexico. If you are planning for your retirement or you need a winter home, you couldn't find a better time than now while prices and buying competition in Mexico Real Estate are still low, and the Canadian dollar and economy are on their way up. If you are looking for an investment, it is best to buy now, because when Americans and Europeans start buying more property in Mexico again, the prices are likely to soar, showing similar appreciation to the last two decades - 15% annual on average.
The other benefits of owning property in Mexico are endless: a much lower cost of living; excellent, fast, modern health care - although you have to pay for it, prices are considerably less than in the U.S., and there are no Canadian waiting lines; excellent infrastructure, which receives continuous investment; a rich cultural heritage of music, festivals, food and history; beautiful white Mexico beachfront real estate; amazing mountain scenery; eco parks, and many other ways to enjoy nature; availability of a broad range of international stores and products. Mexico offers just about everything - except cold winters.
If you are a Canadian thinking of joining thousands of other Canadians in buying real estate during these months, consider the option of buying in Mexico. For more information about properties, the buying process, and life in Mexico, call us.
