If you’re considering a real estate investment, where do you shop: where prices are lowest, or where prices show the most promise of appreciation? Of course you choose the second option; The better the chances of appreciation, the better the real estate investment. This is why it is a more attractive option for buyers to invest in real estate in Mexico than in the US market.
The fact that US home prices are at their most affordable in possibly 40 years (compared to income, buying vs. renting, etc.) has got some people excited about the idea of buying back their home and wondering why they should invest in a supposedly cheap home. country, like Mexico, where prices in some areas are almost the same. The problem is that experts are predicting that the US housing market is going nowhere any time soon.
One expert, Dan Alpert, has said low prices are “here to stay,” calling this era of US housing one of “fixed prices” and “very, very cheap money.” This is great for a young couple planning to buy their first home, but for those of you looking for good investments or planning before you retire, it’s best to invest funds where the market presents a viable income opportunity and good return. a future resale; A flat market means your home won’t appreciate in value and can be difficult to rent at a profitable price.
MLS listings in Mexico include many properties in great locations that provide just the opposite. Mexico has seen a steady appreciation of property; Even after the US housing bubble and during the recession, most of the country continued to see healthy resale prices. In the worst case, prices were stable for a while and some temporary price reductions appeared, which have mostly disappeared. Many places promise a healthy appreciation for the near future.
In the main tourist areas of Mexico, renting is a very feasible way to generate good income. Tourism in Mexico has recovered again after the recession, and the main beach destinations, as well as some of the interior, have already reached more than 90% hotel occupancy in 2010 and more. The combination of these 2 factors makes Mexico a more attractive investment market.
But don’t think that just because prices are constantly rising, Mexico is somehow more expensive than the US Of course, places that have seen good appreciation over the last decade, like Puerto Vallarta and Playa del Carmen, prices, usually starting at US$100,000 for cheap properties; But these places are showing all the signs of continued appreciation and are great investments, especially for those planning rental income.
Other areas, just beginning to tap into their tourism potential, offer even lower prices, such as large beachfront lots for less than $70,000 in the state of Campeche, or a quaint Mexican-style home for less than $50,000 in a city that has recently invested in developing its rich colonial charm. Properties like these will not generate much in the form of rentals at the moment, but as tourism continues to grow in these areas, their value will increase considerably.
Whether you’re looking for cheap or luxury real estate, Mexico is a much more promising investment than the current US market.