The world has been disrupted physically, mentally, and in some cases, financially in the last month or so. The Coronavirus has created a historic pandemic that will be remembered for generations to come. However, this doesn’t mean that your future real estate plans should be scrapped. Even in what seems to be normal times, plans usually get diverted for one reason or another. Individuals who have positioned themselves to invest in their future can still do so. They may also benefit after this terrible event passes. There is no doubt that the economy will come back and be even stronger than ever.
Let’s take a moment to look at the future’s financial perspective. Here are some simple facts that either a beginner or seasoned investor should understand.
- The Dow Jones, Nasdaq, and Standard & Poor’s stock markets were overdue for a significant correction. Maybe not so abruptly, but was going to experience an adjustment never the less.
- Unemployment in North America was at an all-time low. People were working and had money to spend. This will again happen when businesses start to recover.
- Industries across the continent will find a way to survive. Production levels will again reach all-time highs.
- The US Dollar is trading very well on the International Monetary System and especially with the peso. The dollar will have higher purchasing power throughout the country.
All these points will prove to be beneficial when you start looking at property in Mexico and especially in the Riviera Maya.
The value of the dollar increased after the Coronavirus initiated
The US Dollar’s valuation as of the end of 2020’s first quarter is over 23 pesos per one USD. This gives the buyer quite an advantage when looking to negotiate in US currency. With sellers having to put their property on hold because of the Coronavirus outbreak, situations seem to get a little tight. Once things start to open up, interested buyers want to pay in cash and schedule a quick close. It’s an old cliché, “Cash is King!” And this still holds true today.
Getting more for your dollar
With the dollar having a high exchange rate, it might be time to look at a few items that are on your wish list. Things like adding another bedroom, squarer footage, or being closer to the water, could be possible. Taking advantage of a not-so-ideal situation actually could help everyone involved. The buyer can extend a reasonable offer to a seller that wants to move their property. The purchaser gets their maximum worth from their dollar, and in exchange, the seller receives their funds in US currency.
When the traveling restrictions are lifted, people will want to cross the southern border anxiously. Some will be resuming their vacation plans, and others will come back to their second or seasonal homes. Amongst these people, there will be investors seeking to purchase real estate. Even though restricted travel has slightly depreciated parts of Mexico’s property value, long and short-term rentals will again become a needed commodity. This will immediately create an upswing in property values along with a nice revenue stream and return on investment.
Negotiating added incentives
Mexico’s already red-hot real estate market will be offering even more incentives. This will include presale, new construction, and previously owned properties. Let’s look at a few potential discounts and added incentives.
- Presale Construction has been known to offer deep discounts and, in some instances, short-term financing. When traveling restrictions are eliminated, this could be the case once again.
- New Construction offers brand new condos that are waiting to be sold. Buyers will have options like an upgraded appliance or furniture packages, cash discounts, and specialized short-term financing.
- Previously Owned homes will carry added sales incentives that include discounts for quick closings and all-cash deals. If applicable, the buyer could also negotiate the monthly association fee by requesting a credit for a specific amount of time.
When buying or selling real estate, negotiating is a significant part of doing business. When an offer is given, or inclusions are asked for, don’t give up because the seller or buyer didn’t accept. There must always be a starting point.
Timing can be everything
With the Coronavirus outbreak, doing business in many industries, which includes real estate, has virtually come to a complete halt. The timing of this epidemic doesn’t have to be a disadvantage to both the buyer and seller. When this unfortunate event is over, the real estate market will again thrive. Buyers and sellers will be roaring back more than ever to strike a deal. This is a good thing for both sides. Most real estate deals experience back and forth offers – giving and taking concessions is part of the game. Having this downtime to think should speed up the sales process.
What should we expect after the Coronavirus ends?
There is no doubt that everyone involved wishes the Coronavirus would have never appeared. But it did and has created havoc worldwide. But our instincts for recovery will come back stronger than ever. This is why your plans to purchase property in Mexico should stay the course. Implementing all or any of the above reasons with their directional suggestions should work in everyone’s favor. Whatever you decide to do, at least take a moment to contact us at Top Mexico Real Estate. Let one of our professional agents guide you throughout the purchasing process. You can also take a look at these exclusive properties.