For those who are interested in offshore investments,buying a second home has long been a favorite option,but today’s global economic downturn and rising taxes at home have made buying a vacation home more appealing than ever before. For decades,Mexico has been the most popular country in which to buy a second home for a variety of excellent reasons.
Mexico offers a convenient location,modern infrastructure and a sophisticated real estate market,thanks in large part at this point in time to the many U.S. and Canadian citizens who have already purchased property here. In addition,mortgage financing is available in Mexico,as is title insurance,through large firms with excellent reputations. Although cash is still king here,you won’t get strange looks if you ask about financing,and in Mexico’s most popular cities you will find experts who are experienced in helping gringos through the buying process.
Homes and condos on the beach are the most popular option for investment purposes,as they can be rented out very easily. Active markets for short-term vacation rentals that are home to a variety of Mexican beach resorts include Puerto Vallarta,Manzanillo and Mazatlan on the Pacific Coast,as well as Cancun,Playa del Carmen,Puerto Aventuras and Akumal on the Mexican Caribbean’s Riviera Maya,followed by the many villages of the Yucatan’s gulf cost,such as Merida.
There is also a thriving market for short-term rentals in popular inland cities,such as San Miguel de Allende and the Lake Chapala area,which are appealing for snowbirds. If you plan to purchase Mexico real estate for rental purposes,be sure to work with an experienced property management firm,since you will be unable to manage the property yourself when you are not living in Mexico full time.
Fortunately,many condo communities have a property management office on site,and although it can be more difficult to find help with homes,Mexico’s most popular tourist destinations are home to a variety of companies that can help you list your home or condo. If you buy property outside of the tourist areas,you may need to publicize it yourself and locate renters,or entrust this job to a full-time caretaker. Regardless,before making a purchase be sure to think through the process carefully to avoid unforeseen responsibilities down the road.
While you are the only person who can decide if buying a property in Mexico is a good investment decision for your situation,a Mexico vacation home can provide the potential for residual income,appreciation and a stunning getaway spot – something stocks and bonds definitely can’t do.