– Does that sound like a familiar sentiment?
Buying a second home in another country has long been an easy way to invest offshore. And today, with the U.S. in recession and the tax man looking for ever-new ways to take a bite, it’s increasingly popular.
Traditionally, Mexico has arguably been the most popular country in which to buy a second home. And there are some good reasons for making your second-home investment in Mexico. Among these are the convenient location and the relatively sophisticated real estate market.
The latter is due in part to the large number of U.S. and Canadian residents who have purchased property in Mexico. Mortgage financing is available in Mexico (and though cash is still king, you no longer get strange looks if you ask about financing although you may be obtaining a peso loan).
And in Mexican resort towns with large expat populations, you’ll find real estate firms like Timothy Real Estate Group used to shepherding gringos through the Mexican buying process—which, make no mistake, is different from that in the U.S.
For investment purposes, beach homes and condos that can be rented out are far and away the most popular option. Mexican beach resorts with an active market in short-term vacation rentals include Puerto Vallarta, Manzanillo and Mazatlán on the Pacific Coast; Playa del Carmen, Akumal and other villages on the Riviera Maya; and the villages of the Yucatán Gulf Coast near Mérida.
Condominiums and houses for short-term rental are also available in popular inland cities with thriving tourist trades or snowbird populations. These include San Miguel de Allende and the Lake Chapala area.
If you plan to rent out a Mexican property—even if it’s only for the months when you’re not there—it’s important to work with a good property management firm. Unless you live in Mexico full-time, you really won’t be able to manage a property yourself.
In tourist areas like Puerto Vallarta you can generally find several property management firms. Many condominium buildings even have a property management office on the premises through which you can list your condominium for rent.
Only you can decide whether buying a property in Mexico is the right investment for you. A property requires maintenance but cab bring much joy and even some investment value. In your Mexico home you can look out to the wide Pacific or down to the cobblestone streets of an 18th-century colonial town. And what stock or bond can offer you that?
Some Puerto Vallarta Properties
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