Canadian seem to have caught up with, and perhaps even passed, Americans in terms of the benefits they can gain in buying Mexico Real Estate; for quite some time now, the American dollar has been sitting at an all-time high against the Mexican peso, making a Mexico Home purchase more appealing, simply because the money saved by living in Mexico. For Canadians, a recent study suggesting that some of the major home markets in Canada have "overheated" – meaning inflated prices – combined with the fact that the dollar is at an all time high against the American dollar point to buying real estate in Mexico could be a very financially sound option.
While across the board in Canada real estate prices rose by an average of 10% for the first quarter of 2010, the places where people are buying the most – Toronto and Vancouver – have risen much more. The price of an average two storey home in Toronto, for example, rose more than 13% from a year ago to over $550,000 CDN. In Vancouver two storey homes rose almost 20% to just under $990,000. While these rates look exciting, experts in Canada are saying these jumps are not sustainable and the markets are, perhaps "overheated," and, compared to their reaction to the recession, "irrational." Expected interest raises and these sky-high prices are expected to slow the market during the year.
For home buyers, this means that you have the option of buying at really high prices, that are not likely to rise significantly, in places where the cost of living is likewise very high. Alternatively, especially buyers considering investing in second home should consider the possibility of buying a home in Mexico. Let's consider the benefits.
First of all, for "average" home price in Toronto – over $550,000 – a real estate buyer could find a beautiful, luxury villa in many of Mexico's most famous beachfront cities, such as Playa del Carmen, Puerto Vallarta or La Paz, to name only a handful of examples. And this is comparing life in snowy, grey Toronto to a sunny paradise on a wide, beautiful, white beach surrounded by subtropical jungle. For Canadians considering a second home – especially for the sake of vacations – or those who have the opportunity to relocate for retirement or other purposes, there's no comparison between the two options. Life in these Mexican locations, while providing the highest level of luxury and convenience with international shopping, excellent health care, championship golf clubs, and much more, is also considerably more affordable that in Toronto, Vancouver or many other Canadian locations.
Mexico real estate also presents on of the best opportunities for investment. High-quality condos and homes and condos in Mexico provide many vacation home owners with a reliable income from rental to other vacationers while the property is not in use. Property management companies make this type of income fairly easy. Another option is up-and-coming tourism areas; the state of Campeche (across the Yucatan peninsula from Cancun) currently has one development with beachfront lots starting at about $65,000. While these lots include 20 m of virgin beachfront, the area is showing high potential for significant increases in property prices; two new luxury condo-resort developments, a recently restored colonial city, and all services currently available, with another $100,000 invested into building a home, these properties could sell for many times more in a few years.
To make all this that much better, the Canadian dollar is at a high – on par with the US, and at an all time high compared to the peso – and is expected to stay that way for some time. While prices will be slow to adjust to the high value dollar in Canada, this means that the same dollar will buy that much more in Mexico – in terms of real estate, large ticket purchases, and day to day items.
Considering these conditions, all Canadians considering a property purchase may very well do better to consider Mexico real estate.
TOPMexicoRealEstate NETWORK; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely
Mexico Real Estate NETWORK; "Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!"
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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