In recent years, Mexico has been a real estate hot spot for Canadians and Americans looking for retirement or vacation homes. After a visit to our sunny southern neighbour, many tourists are drawn not only by the good weather but by the culture and pace of life. Of course when we’re on vacation it’s easy to fall in love with a place. We wake up every day and get to enjoy whatever sights and activities suit our mood. There is little stress in life and as a result we can easily be convinced that buying vacation homes in Mexico is a great idea. And it is. Unfortunately, many investors fail to take the time to do the proper research. Buying property in a foreign country is different than buying at home. At home you’re familiar with the communities, amenities, facilities, and housing prices. You either know or can easily access an expert who knows which areas have peaked in prices and which areas offer a great long-term investment. So why, when shopping for homes in a foreign country like Mexico, are buyers willing to spend their savings seemingly at the drop of the hat? Whether you’re mesmerized by the appeal of a beach-side community or you incorrectly conclude that if everybody else is buying it must be a good deal, it’s easy to make mistakes when buying property in Mexico.
First of all, you need to remember that as far as climate is concerned, Mexico offers different risks than most of the States and Canada. Indeed, in Canada, although the weather can be quite cold, destructive weather effects are quite rare. On the other hand, like you would expect in the Southern U.S., Mexico faces its share of inclement and dangerous weather. Hurricanes are of course the main topic of weather discussion and must be considered when purchasing property in Mexico. Mother Nature somehow manages to always have the last laugh. Imagine investing your retirement savings into a Mexico home that’s in a high risk hurricane zone and seeing it destroyed by the devastating effects of a hurricane. There is plenty of research available to help you choose a region of Mexico that is low risk for hurricanes and therefore a more sound investment for your future. Areas like the Baja Peninsula, the west coast of the Gulf of Mexico from Matamoros to Veracruz, and the tip of the Yucatan Peninsula including Playa del Carmen, Cancun, and Cozumel are all high-risk hurricane zones. Granted, these are some of the most popular tourist regions in Mexico but investing in real estate here can certainly present interesting challenges. For the security of your family and your investment it is much more advisable to consider low risk hurricane zones like Villahermosa, Acapulco, or Baja North. If you’ve got your heart set on coastal property, your safest investments will be between Acapulco and Huatulco or the region east of Veracruz on the Gulf of Mexico. Typically speaking, the west coast of Mexico, with Pacific Ocean beaches, tend to be low to medium risk hurricane regions while the east coast with Gulf of Mexico beaches sees more tumultuous weather.
Once you feel confident that hurricanes are not a major issue, you can consider what kind of property suits you best. Many visitors to Mexico stop in regions like Puerto Vallarta, Mazatlan, Cancun, and Playa del Carmen and are drawn to the fact that these areas are well-developed, offer excellent amenities, and a wealth of properties to view. On the other hand, being the most well-developed tourist regions in Mexico makes property in these regions among the most expensive in Mexico as well. Moreover, the influx in tourism every winter means that infrastructure is taxed as you’re inundated with people from 4-6 months out of the year. For some people looking to buy in Mexico, this may be exactly what you want. Providing you have the funds, you’re welcome to shop for homes in regions that have the most restaurants, shops, and tourist facilities. However, many people looking to invest in Mexican real estate want to get a better deal. Likewise, some of you would be drawn to a more relaxed environment where you can enjoy some peace and quiet. All the bells and whistles of a big Mexican resort town do nothing to pique your interest. As such, you should consider regions where the tourist boom is just beginning. The towns are friendlier, are more representative of Mexican culture, and provide greater long-term investments.
Perhaps the most important step in your search for Mexican real estate is finding a great representative. A real estate agent with a track record of success will likely have a wealth of knowledge about communities in Mexico and where you will find the biggest bang for your buck. Do the research first and you’ll almost certainly find a home that you can enjoy in Mexico for years to come.
