15 October 2008 166 views No Comment

Real estate not as volitile as stocks

The DOW had fell by 49% at one point, so even if you were well diversified in stocks, you could have lost a tragic amount of your savings through no fault of your own. On the other hand it is extremely rare for real estate prices to fall and even if it did you still have a tangible asset with real value.

Your dollar goes further in Mexico

The value of the dollar has fallen significantly compared to the Canadian dollar and the Euro. It is no longer appealing to go to Canada for shopping because the exchange advantage has evaporated. This is not the case in Mexico. The peso had its greatest fall in over a decade and now it is even cheaper to buy Mexican pesos with American dollars. The current exchange rate is for 1 American dollar is 13.175 Mexican pesos. If you are a retiree who wants their savings to last, a lot of products and services are cheaper in Mexico, especially health care, labor, and of course tequila.

Demand will continue to grow

With 76 million American baby boomers quickly approaching retirement, the 1 million Americans currently living in Mexico will surely grow. Retirees will be drawn to the tropical weather, the tourist atmosphere, low cost health care and the growing community of expatriates. Even younger Americans who have been priced out of markets such as Southern California, are finding a new home in Mexico.

Easy access to the US

Many popular destinations such as Puerto Vallarta, have local international airports with frequent direct flights to and from the US. This makes it easy to check on your property if it is an investment property, or take frequent trips to your vacation home. There are also quality toll roads that connect to the US for a reasonable fee. It is much more difficult to travel to and from other overseas property investments in places like Dubai or Brazil.

Invest in something you can actually enjoy

While it is fun to play the stock market, it can’t beat spending a vacation at a ocean front investment property on the sandy beaches of the Caribbean sea. You can buy a property and hire a management company to rent it out to tourists, and you can drop in when whenever it is vacant. Why invest in things that might someday buy a retirement on the ocean, when you can start immediately reaping the benefits of a oceanfront property investment in Mexico.