Since America’s Housing Bubble Burst in 2007-08, the housing market has been climbing back over the past decade. Even with the collapse and its devastating effect on the economy for many years, the US managed to maintain financial stability throughout and is actually moving forward. This momentum helped America’s real estate market make a complete recovery, and sales are now climbing to new levels. This small bit of information will make sense as you read on.
The housing market in the Riviera Maya has been one of its most attractive assets for national and international investors for many years. As property values worldwide are soaring to new heights, the Riviera Maya, with its growing popularity, still offers plenty of significant real estate opportunities. This includes not only inland property but also coastal locations as well.
Mexico’s housing market frenzy is mostly stimulated by, but not limited to, many US and Canadian retirees. After World War 2, approximately 8 million servicemen and women came home to their families. This triggered what is known as the Baby Boomer generation [1946 – 1964]. When this generation came of age, America was in full stride to becoming a major player on the world’s economic stage. This, in turn, created lots of success for many Americans and their families.
The majority of these workers, business owners – small and large companies, and investors have created excellent retirement funds. It is now time for some of these people’s lifelong dreams of owning a home in paradise to come true. Mexico offers many options when wanting to build or purchase ready-made or previously owned homes or condos. If you are looking to add equity to your financial portfolio or considering a second or retirement home, we outlined the advantages of purchasing south of the border below.
A Wide Variety of Options
When looking for a second home – permanent residence – investment property, there is plenty of inventory to select from. You may choose to have a home on or near a beautiful white sand beach, surrounded by an unspoiled jungle or in the heart of the city. Each of these unique locations has its own community that offers various condos, villas, and stand-alone homes. However, you are never that far away from any of the geographical areas mentioned above.
An Option for any Budget
Purchasing a property in a specific or desired location isn’t always in the budget. However, the Riviera Maya could fulfill that dream. If wanting a piece of property beachside or amid a lush terrain, prices can be more affordable here than anywhere else in North America. Depending on the size of the lot and type of home – condo – villa, it can be half the cost compared to the US or Canada. This includes but is not limited to developed or undeveloped land, a ready-made home, or condo.
If wanting a home that can be self-sustainable and made from recycled materials, the Riviera Maya and Tulum are forging ahead in this particular market. There are plans for several Eco-friendly developments in and around the Tulum area. Within these developments are vacant lots, move-in ready villas, and condos that offer sustainable living. These individual communities share a wide variety of amenities that include private pools, full-service clubhouses, yoga & meditation facilities, to mention only a few.
Close to Home
Being closer to home for Americans and Canadians is another reason why the Riviera Maya’s real estate market is holding its ground. Not only is Cancun’s International Airport one of the most modern and up-to-date terminals to fly into, but it is also extremely accessible from about every major airport in North America. Transportation to and from the airport is inexpensive and readily available.
More and better for less money
Another motivating factor contributing to Mexico’s red-hot real estate market is you get more for your money. Here are two advantages that help support this statement. They are:
- With lower construction cost, the Mexican builders can offer more inclusions and use top quality materials with little to no additional charge. Contractors in North America have to increase their asking price when using higher-grade materials or when adding custom built-ins.
- When acquiring a home in Mexico, most, if not all, sales are cash transactions. This is when the exchange rate comes into play. The US Dollar trades very favorably with the Mexican Peso. Therefore, your dollar goes much further.
There are other indirect reasons why the Riviera Maya’s real estate market is thriving, and it doesn’t always have to involve physical property. The pricing is only one part of the total equation. Other components include the lower cost of living, picturesque scenery, and near-perfect weather. Mexico’s reputation for having a Caribbean lifestyle and a tropical climate creates an ideal haven for people wanting all of these crucial elements.
Property Taxes and Maintenance
After acquiring a property, other long-term advantages begin to come into play. One of those benefits is property taxes. Mexico’s closing cost includes a certain percentage of taxes paid upfront. Therefore, the annual property tax bill is minimal in comparison to the US and Canada. Upkeep on a property, such as having a gardener, pool service, and needed maintenance, is also quite a bit cheaper than in the US or Canada. If the community or developed has HOA fees, they usually are a lot less than back home.
These are just a few of the reasons that contribute to Mexico’s real estate frenzy. The housing market in the Riviera Maya is still in a position to offer lots of opportunities. However, it won’t last forever. It doesn’t matter if you are looking to purchase an investment property or a home for personal use; you can enjoy everything the Riviera Maya has to offer.
For more information, contact Top Mexico Real Estate and let one of their professional agents arrange for a personal tour.
Remember, at Top Mexico Real Estate … we make it happen!