Why investing in real estate in Mexico is a solid choice
Today’s homebuyers are more finicky than ever, looking to buy a second home or investment property but not always prepared for the financial responsibility. Some even say they are worried about being “house-poor”.
Buying real estate in Mexico’s hot spots can offer a simple solution to those financial risks.
With the U.S. housing supply as tight as it is, it does not necessarily mean this is a seller’s market. It’s more important than ever for both home buyers and sellers to know their market and housing value.
According to RealtyTrac, a real estate sales and analytics company, they say less than one-third of U.S. homes are selling for above asking price while 60 percent are selling for below and 14 percent are selling at market value.
Even though a large percentage of homebuyers are concerned with being “house-poor”, RealtyTrac says that a larger-than-normal percentage of home sales are being done in all cash. This increases market competition even when home prices are not soaring.
As always in real estate, it’s imperative for home sellers to know what the market will pay and home buyers need to make smart offers. This is more important than ever, especially in today’s market where an increasing number of buyers are competing for listings.
In the U.S., home owners in the Bay Area of California are selling for an average of 108 percent of asking price, whereas in other cities such as Pittsburg, St. Louis and Burlington, Vermont, home owners are getting about 80 percent of asking price. Real estate in Mexico, though, is more stable in what sellers get and buyers offer.
Buying real estate property in Mexico means having the option to rent your property out when you’re not using it. Many people snowbird to their Cancun or Playa del Carmen property during the cooler winter months and rent their homes out during the traditional summer months. Wiht a near-constant tourist high-season, it’s easy to generate income from your Mexican vacation property. This is a great way to balance any financial concerns you may have about owning property in another country and becoming “house-poor”.
Investing in Mexico real estate with a certified real estate agent means having someone at your side who understands local market values and is able to help you find exactly what you are looking for.
Not only is he tri-lingual, Bjoern Koch is one of the few locally certified and fully licensed real estate agents in the Cancun, Playa del Carmen and Tulum area who can legally help you buy and sell real estate in Mexico. To learn more, contact Bjoern directly.