Americans visiting Mexico are rejoicing at the exchange rate. During the second week of February 2016, it was hovering around 18.5 pesos to the dollar. People are getting great deals on meals, souvenirs and hotel rooms. If Americans are thinking about purchasing real estate, now is a great time to buy.
Many thinking about retiring full or part time to Mexico will be receiving their incomes in US dollars and this transfers into a substantially lower cost of living. This alone can be enough incentive to relocate, but with the current exchange rate this could provide extra motivation to invest. There is an estimated one million US expats living in Mexico.
With more than 70 million American baby boomers expected to retire in the next two decades, many without adequate pensions or health care plans, some experts predict a vast migration to warmer and less expensive climates. Typically they purchase a property 10 to 15 years before retirement, use it as a vacation home and/or rental income, and then they eventually move there for most of the year. Developers are increasingly taking advantage of the trend, building gated communities, condominiums and golf courses.
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According to Collier’s International Global Investor Outlook for 2016, real estate continues to grow in its appeal and remains a positive investment. More than half of the respondents with multi-asset portfolios said that they would increase their real estate allocations during the next 11 months of 2016. The outlook projects a five percent increase in Mexican investments.
Mexico is in a better position to withstand the beating in commodities prices because its economy is based on manufacturing and consumer demand from the US, the destination for 80 percent of its exports. Mexico also has an increasingly strong, private consumer and favorable demographics.
Moving to Mexico won’t create a price panacea. It is especially true if you buy lots of goods imported from the US. However, you will see a significant amount of savings, especially if you are savvy.
Mexico is moving in the right direction, working to raise the real estate standards to protect buyer and seller interests. AMPI (our National Real Estate Association) plays a key role in the real estate industry in Puerto Vallarta, Mexico, working closely with local, state and national governments. Our local AMPI Association is leading the country in developing and implementing real estate standards. To become members of our local AMPI Association Real Estate professionals sign our Bylaws that require our members to follow our Ethical Code of Conduct; to use our contract forms which have been legally vetted to protect buyers and sellers; to participate in and comply with our MLS Rules and Regulation along with using the shared database. Our Bylaws, Code of Ethics, MLS Systems, Contracts and our other systems are constantly improved on through the expertise and experience of our members. Find a Committed AMPI Professional Here