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Investing in Mexico Real Estate: The American Dream "Redefined"

12 January, 2015

Well,I wanted to write a feel good piece but sometimes things have to be said,a so called slap in the face wake up call,and this applies to me as well as I found out a few years ago.

Here we are in post crash 2008 or something and some people are wondering after picking up the pieces and seeing which ones still fit,what the hell happened? Well we all know what happened,but most like to sit there and hope that things will get better instead of taking some type of personal responsibility for our part in this whole problem. I mean you work your entire life,pay bills,get taxed,and what little money you have left over you entrust to someone else to make you decent returns. Well that guy is out to make as much as he can first so he gambles with your money.

I know a guy in this business and he freely told me that they gamble the money for the first 3 quarters and if things go well,then great,if they don’t then they reinvest in safer guaranteed return options in the 4th quarter so it looks like a turnaround and makes the overall portfolio look better. He also found it funny that the majority of  people don’t even pay attention to their accounts until tax time,and if they see that the first three quarters were bad,then they look at the last quarter and say “ things are turning around “.

Let’s be honest,if you think some guy is sitting in a room all day looking after just your investments that’s crazy. Your money is tied up with hundreds if not thousands of others in some kind of I hope I make money investment. People nowadays are even wanting to self invest some of their Social Security money because they finally realize that they can make better investment decisions than the Govt.

So what does this have to do with the age old American dream of home ownership? Let’s take a look at the real facts. 

The baby boomers version of the American Dream is being radically rewritten by their descendants due to the destruction of the housing market,uncertainty in Social Security,and the fact that the average investor has seen a 40% loss over the last few years. Even though some investors have recovered their losses,they are still back at the beginning wondering when the next card will fall.

Smart investors and consumers who are worried about their retirement options and the economy as a whole,have taken action and are looking abroad for more stable and lucrative vehicles,basically reclaiming their independence and boosting their options by investing in vacation/retirement properties especially in Mexico Real Estate. Whether this property is Akumal real estate,Playa del Carmen real estate,Cancun real estate or Tulum real estate. The fact that 70% of all tourism dollars are spent in this 80 mile stretch of the Riviera Maya makes investing here a no brainer.

Time magazine reported that buyers were purchasing investment properties at an increased rate of 65% from 2011-2012 and still rising,devouring more than 25% of the new development market,and that was a year ago.

I know it’s all over the news...construction numbers are climbing,but did you know that 2/3rds of all new construction has been for apartments and multi-dwelling structures,not on single family dwellings. These numbers are attributed to job uncertainty and the need for most to relocate quickly due to job opportunities which may arise,therefore some buyers are declining on a 30yr commitment and settling on a more practical investment such as Mexico real estate. Most middle age workers are now opting to rent and invest their IRA or 401k funds in places they want to be when they retire,while making money at the same time. While investment properties in some areas are seeing better than average returns,properties in prime vacation locations like Mexico,especially the Riviera Maya,where long term rentals are a norm if you want them,have their owners wondering why they have any money in traditional retirement accounts at all.

The National Association of Realtors Chief Economist Lawrence Yun stated that “ Rising rental income easily beats cash in the bank as an added inducement. In addition,41% of investment buyers purchased more than one property.

Trip Advisor also reported an uptick in vacation rental property of 40% over 2011 versus hotels,and Air B&B “ Bed and Breakfast” just booked their 5 millionth night up from 1 million last year alone.

The trend,it would seem,is that middle age Americans are opting to invest in final destination homes instead of a primary residence,while taking advantage of the returns and enjoying the property a few weeks a year realizing that when they retire their home is paid for,and in Paradise.

Be well Amigos 

And as always…don’t take my word for it,do your own homework,and then call Investment Properties Mexico

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