Real Estate in Mexico: More Attractive as Canadian Home Prices Peak

Canadians seem to have caught up with, and perhaps even surpassed, Americans in terms of the benefits they can get from buying real estate in Mexico; For quite some time now, the US dollar has been at an all-time high against the Mexican peso, making buying a home in Mexico more attractive, simply because of the money saved by living in Mexico. For Canadians, a recent study suggesting that some of Canada’s major domestic markets have become “overheated,” meaning inflated prices, combined with the fact that the dollar is at an all-time high against the US dollar, could make buying real estate in Mexico a very sound financial option.

While Canada’s overall house prices increased by an average of 10% during the first quarter of 2010, the places where people buy the most (Toronto and Vancouver) have increased by much more. The price of the average two-story house in Toronto, for example, increased more than 13% from a year ago to more than $550,000 CDN. In Vancouver, two-story homes are up nearly 20% to just under $990,000. While these rates look exciting, experts in Canada say these jumps are not sustainable and that markets are perhaps “overheated” and, compared to their reaction to the recession, “irrational”. The expected interest rates and sky-high prices are expected to hold the market back during the year.

For homebuyers, this means they have the option to buy at really high prices, which probably won’t increase significantly, in places where the cost of living is also very high. Alternatively, buyers who are considering investing in a second home should especially consider purchasing a home in Mexico. Let’s consider the benefits.

First of all, for the “average” price of a home in Toronto – more than $550,000 – a real estate buyer could find a beautiful luxury villa in many of the most famous coastal cities in Mexico, such as Playa del Carmen, Puerto Vallarta or La Paz, to name just a handful of examples. And this is comparing life in gray, snowy Toronto to a sunny paradise on a wide, beautiful white beach surrounded by subtropical jungle. For Canadians who are considering a second home, especially for vacations, or those who have the opportunity to move for retirement or other purposes, there is no comparison between the two options. Life in these Mexican places, in addition to providing the highest level of luxury and convenience with international shopping, excellent medical care, championship golf clubs and much more, is also considerably more affordable than in Toronto, Vancouver or many other Canadian places. .

Mexico Real Estate also presents the best opportunities for investment. Condominiums and high-quality homes and condos in Mexico provide many vacation home owners with reliable income from rentals to other vacationers while the property is not in use. Property management companies make this type of income quite easy. Another option is the emerging tourist areas; the state of Campeche (across the Yucatan peninsula from Cancun) currently has a development with beachfront lots starting at around $65,000. While these lots include 20m of pristine beachfront, the area shows high potential for significant increases in property prices; Two new luxury condominium-resort developments, a recently restored colonial town, and all the amenities currently available, with another $100,000 invested in building a home, these properties could sell for many times as much in just a few years.

To make all this much better, the Canadian dollar is at a high, on a par with the US, and at an all-time high compared to the peso, and is expected to stay that way for some time. While prices will be slow to adjust to the high value dollar in Canada, this means that the same dollar will buy much more in Mexico, in terms of real estate, big ticket purchases and everyday items.

Bearing these conditions in mind, all Canadians considering buying property may do better to consider real estate in Mexico.

RED TOP Mexico Real Estate; The Leading Network of Specialists in Mexico to Find and Buy Mexican Properties Safely

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