Â The facts say that real estate in Mexico is a good investment for retirement.Â On the most obvious level, the savings just make a comfortable retirement lifestyle that much more accessible, often simply making it possible.
But then there’s the other aspect of investment: is it possible to make money as a retiree by buying a property in Mexico, either to resell at a profit or for rental income.
It most certainly is, but there are some important considerations to make.Â Just this morning I read a good article from Denis Miller at Investopedia.Â He makes several main points:
- many people take for granted that rental or appreciation income is a source of easy money
- property investment takes more effort than many people think
- there are 5 main points to look for in an investment to help measure the viability
While I’m very optimistic about the opportunities for retirees to generate extra income through their real estate here, his tips are very valuable and all retirees hoping to make money off their property in Mexico should consider them.Â For now, I’ll just share two points.
First, his five-point balancing test:Â
- Is it a solid company or investment vehicle?
- Does it provide good income?
- Is there good opportunity for appreciation?
- Does it protect against inflation?
- Is it easily reversible?
It is worth pointing out here that if you are going to buy a property for income, tell your agent.Â If you are not sure about one of the points above, ask.
Secondly, he points out that those who try to do it themselves often end up with a full-time job instead of an easy hands-off income.Â To ensure that a real estate investment is easy and hands-off, he offers the same advice I give to buyers:
Hire a property management company.
Â Yes, this takes a bite out of the income, but it ensures that you’ll have the time to enjoy the rest of the income and do what you came to Mexico for; relax on the beach!
I’ve seen retirees successfully use real estate in Playa del Carmen and other parts of Mexico to boost their savings.Â But the best approach is to be informed and evaluate your investment ahead of time.
(You can find out about some other kinds of investment/business here.)
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 16 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate License S.E.P. #5978657. He is the president of Top Mexico Real Estate. Contact him at (512) 879-6546.
The TOP Mexico Real Estate Network; “Mexicoâ€™s Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely!â€