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Mexico Real Estate vs US Real Estate

17 June 2008 422 views 2 Comments

By: Charles Sipe
us real estate opportunitiesThe latest edition of Fortune magazine argues that you don't have to go overseas anymore for a dream retirement home. Slumping home prices in markets like Miami, Las Vegas, Phoenix, and San Diego have generated opportunities for great deals, without having to adapt to a new culture and way of life in Mexico. Over the past year, home prices are down 21.7% in a year in Miami, 22.8% in Las Vegas, 8% in Pheonix, 9.8% in San Diego and there is little evidence that the downturn will be ending anytime soon. The value of the dollar has also been falling so Americans no longer have the purchasing power that they once had in Mexico. The other side of the argument is that Mexico's home market is appreciating rather than depreciating, the prices are still significantly lower in most areas, the cost of living is still much cheaper and you can hire someone to do your chores for much less. Most people prefer sandy beaches that overlook the Pacific rather than the Phoenix desert. Mexico offers many places to explore for those who want something new. So while I agree that there are opportunities everywhere you look in the US, it pays to do your research to discover the ideal lifestyle that fits you and your goals, even if that means brushing up on your espanol.

2 Comments »

  • Adrian Thompson said:

    I think people now need to factor the US as a very viable option to Mexico. Property is no longer cheap in Mexico. We have just returned to Lo de Marcos area 20 miles north of Puerto Vallarta after visiting a small rural area called Punta Perula near Chemala about 100 mils south of Puerto Vallarta.

    There a small lot 40 x 40 (2 blocks back from the beach) with small improvements such as a one room casita is running around $300,000. That is expensive land. Bearin mind there is basically nothing in Punta Perula: no school, no gas station, no library, no good restaurants, no real shopping other than a few small roadside taco stands. Small bodega’s. Gas is 40+ miles away. Closest real shopping is in Manzanillo or Puerto Vallarta both 100 odd miles away.

    Roads are bumpy, twisty and narrow to and from these major cities. Roads in town are largely dirt. Water does not flow every day, you can’t drink the water, elecric is variable, electricity is very expensive at 40 pesos per kWh. The USA is much cheaper on this front.

    The upside is the beach is nice the weather is warm, but everything else is les than desirable. All this and you can expect to spend a million dollars for a nice beachfront house.

    If you suffer from asthma don’t visit as burning of fields to keep the vegetation down is daily. See if your RV awning fairs like our with holes burnt in it. Add to the daily burning also all the open air fires for cooking and the atmosphere forces you inside daily and certainly every evening. Hope you have a big picture window to see that million dollar ocean view, you will need it.

    Did I mention the roosters crowing morning, noon and night? There are many. It is a special treat when cock fights come to town as they bring in 50 or so more roosters. Most people would choose a busy traffic street location in preference let me assure you. The upsdie is cheep property taxes.

    How about that cheap cost of living. Pretty much gone food on avaerage in major centers is more expensive than the USA. Booze is about the same price, meat is the same price but worse quality. Eating in restaurants is more expensive unless eating in roadsid style taco stands, because most restaurants base the prices in US dollars.

    You can on the other hand buy a great house in the US for $200,000. The water is drinkable and will flow every day. the lectric is relaibale, the streets are clean and smooth to drive on, etc.

    Mexico is different from the USA not the cheap retreat it used to be. RV parks have increased in price from $10-$15 a night to $20-$35. The parks do not come close to equalling the US.

    The biggest misconception today is that Mexico is cheap. This is no longer true for the most part unless you want to go where others do not. Many people who have been coming to Mexico annually for 10+ years are now deciding not to come anymore. Go to Mexico for a different cultural experience, or perhaps the weather in winter at the coast but as for great value from a pricing persective think again.

    # 17 February 2009 at 3:59 pm
  • Adrian Thompson said:

    sorry about the previous email typos please correct as you see fit

    # 17 February 2009 at 4:01 pm

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