Is this the best time to buy Real Estate in Mexico?
My friends keep asking me if I think this is the best time to buy real estate in Mexico. My answer is simple. It is the perfect time to invest in real estate.
Having cash is detrimental during inflationary times. If you have your money in the bank, your purchasing power decreases.
US Economy 2022
In the United States economy, there’s a battle to get inflation in control after the COVID. Additionally, the Ukrainian/Russian war has put even more pressure on the inflationary period. Also, there are a lot of problems with the supply chain. They were starting to get in control, but then the Russian/Ukrainian war broke out.
So right now, that’s causing a lot of tension. Prices are rising. Many businesses face the depletion of the workforce in the north of the United States, so they need people to come to work.
Moreover, gas prices have probably gone up about 25 to 30%. That causes a significant part of the population to run into their billfolds. All of these are direct factors adding to inflation.
On the other hand, the federal government has raised interest rates to control inflation. Therefore, over the next three-six months, the government will have a complete focus on inflation.
Real estate in the US
With that said, at the moment, there are regions where they can’t construct enough homes to fulfill the demand with the population growth. There are a lot of people moving. To illustrate, I’m in the north of Indianapolis, where families into this region in significant amounts.
However, drive to the north. You could come across little farm villages where you can tell that they’re losing population. The price of properties weighed down, with no appreciation whatsoever. A great way to hedge inflationary times is to invest your money in real estate.
Three reasons. As we just said, one is that it’s a good hedge against inflationary periods. Two, there are many people now moving to Mexico. This has been happening recently. Over the last ten years, an incredible increase in Americans and Canadians now see Mexico competing with destinations in Florida or Southern California. Beachfront properties in Mexico are a fraction of what they are in the United States. Finally, the cost of living in Mexico is about 45, 50, even 55% less, depending on which region of Mexico.
Nevertheless, compared to many parts of the United States, you could save around 50% on your daily expenses. The strategies of experts during inflationary years are: to decrease month-to-month living expenses and invest in real estate. Thus, what better way to do that than buying your home in Mexico, where living costs are substantially lower.
Cost of living
The cost of living will depend on the region that you choose in Mexico. It depends on your lifestyle. If you’re looking for a lifestyle similar to the United States, then the difference is minimal in areas like Puerto Vallarta, Cabo San Lucas, and Cancun real estate.
Meanwhile, if you’re the type of person who likes to live off the beaten track and in smaller cities like Puerto Morelos, Huatulco, or La Paz real estate, your living cost goes even further. And the reason is that it’s not a more extensive metropolitan zone. It’s a simpler life but a wonderful life as well.
You can see the cost of living in the city of your choice compared to your city.
The living costs are less in Mexico. Therefore, your bank savings are going to last possibly twice the time.
When you compare the real estate in Mexico with the United States and Canada, 80% of the time, the cost is less in Mexico for a similar property.
And not only the cost of real estate will be less. Furthermore, and very important, what we call the carrying cost (the money you need to invest for maintenance) will also be less.
Where do I start
First, you need to define what exactly you’re looking for. You may be looking for a place to retire. Maybe you want to invest in a place and rent it out. Perhaps you want a second home. Or perhaps you want both a vacation home that you can rent the rest of the time.
Once you have a good idea of which is the best for you, find out your budget. That is, define how much you’re willing to invest in Mexico.
Secondly, find yourself a good buyer’s representative that’s even more important than the actual property you choose. What is more important is creating your real estate team.
So, get the representative who will give you all types of further information to make an excellent decision.
Most buyers reps have a good questionnaire. Share with them all the necessary information.
With that, they will understand what your dreams your needs are. Hence, they will be able to do all the legwork to give you options.
In short, that’s how you start, and I repeat, interviewing with the agency or the buyer’s representative with the experience and credentials will make a difference. Contact one of our Top Mexico Real Estate representatives to start the process. We have been doing this for twenty years and this is the best time to buy real estate in Mexico. And remember…We make it happen!