The advantages of buying a second home are, in the first place, that it is a promising investment. That depends on the region where you are looking to invest. You want the second house if you buy in areas you see are growing, where the neighborhoods are growing. Therefore, there is a demand, and the population is growing too.
The second reason is that real estate is one of the best ways to curb the negativity of inflation. Buying a second home, and putting your money into tangible assets, especially properties, is how you could hedge inflation.
Where should I buy my second home?
Specifically talking about Mexico, we know now that their primary industry to generate revenues in the entire country is tourism. Then, putting on the hat of an investor, I would be looking for areas where there is tourism. Looking for Puerto Vallarta real estate, Los Cabos properties, or Cancun condos.
It depends on your taste, habits, and needs; it is very recommended. Hopefully, you can combine all three. You may think, I want something to enjoy myself, a place on the lake within two hours of my primary home. I love this lake, and I like that beautiful view of the lake. Then that would be fantastic, look for lakes around where you live and choose.
Now, if you do not care about the appreciation of the property and your number one reason is the lake that has the best appreciation, it is a decision that you, the investor, need to make.
Is It a Good Financial Decision?
Many love going to Mexico, to the warm weather, to be able to walk on the beach. Or they just love the Mexican culture and the warmth of its people. And if they can combine it with the zone that is also growing in population and appreciation, you are killing two birds with one stone. That makes sense. Hopefully, you can find something that satisfies both.
Many Americans and Canadians go to the beaches in Mexico. First, they go to Puerto Vallarta or Quintana Roo, and fall in love with the place. They go on vacation, and they come back the following year. Then, soon they find themselves going two or three times a year. Finally, they start seeing the appreciation grows.
How Should I Take Care of my Second Home?
It is always good not to leave locked up a property. You might think that nobody touches anything and then when you come back in six months everything will be all right. On the contrary, there is more hidden damage when you just lock it up.
For instance, water pipes were designed, so the water flowed through constantly. However, if you lock everything up and the water pump doesn’t have to turn on and off, things start rusting. That’s just one example. It could be the air conditioning units, the flooring, or the wood.
Therefore, if you don’t want to rent it out, I suggest that you get a property manager who will be there to take care, maintain your property, cut the grass, and make sure that water is running.
Also, if you have someone living there, that’s probably one of the best things you could do. A property manager will be taking care of who’s coming in, who’s renting it, etc.
Where Should you Start?
Firstly, you must decide if you want a second home to enjoy or if you want to invest in it. Or better, both alternatives in one. The second is to determine where you want to buy your second home.
The third step is to start creating your real estate team, especially if it is a location that is far from your first homestead, because they will help you to have all the necessary information for deciding. The more facts you have, the better decision you will make at the end of the day.
Thus, if you are not in that region, you do not have the time to go and walk the streets and understand what is moving. If you cannot get the feeling of the neighborhood and see what is up and coming, you are going to rely on the real estate team.
The most crucial step, and I say this constantly, more important than deciding which property, is deciding which broker will be on your team. It all starts with a good buyer’s rep, interview him, talk to him, and he is going to give you insight about that region.
It is better if it is a local realtor. That way, they know, from their experience, the developers, the history of the property, and all the neighborhoods.
Therefore, this realtor, your buyer’s representative, will introduce you to other key members of the real estate team.
Finally, especially if you make an international investment, find a good local lawyer. We do not recommend hiring someone who is not an expert in investing in a different state, even more so in a different country. Laws are different from one country to the other, and even on a state basis.
If you want more information, please talk to one of our Top Mexico Real Estate representatives. And remember…We make it happen.