Buying Real Estate in Mexico now! A wise thing to do.

[Heidi Wosak]

2009 was a difficult year financially, right? If you answered "yes" to that question you are part of the Vast Majority. 2010 has also been difficult, but is clearly a different type of year, and there are signs that real estate -- both in the United States and in Mexico -- may be beginning to find a bottom. What is certain is that the large availability of quality properties being offered by distressed sellers in both markets has created a buyers market of unusual scale and depth.

Mitch Creekmore, VP for Stewart Title Guarantee Company in Mexico, recently published a great article where he reviews what is happening in Mexico.

Among the many interesting topics he covers are the two main issues that are in the minds of Americans and Canadians about Mexico now: safety and the real estate market.

Creekmore makes important comparisons between murder rates in Mexico and various cities in the United States and concludes that Mexico remains a very safe place -- especially for Americans and Canadians.

He also makes a clear his belief that US media has painted a wildly exaggerated picture about safety issues in Mexico -- a picture that even many Americans believe has only one intention: to avoid capitals to flow out of the US through tourism and real estate, second-vacation home and retirement housing investment.

It is easy to forget amid the negative reporting in the United States that Mexico is the 14th largest economy in the world (larger than, for example, South Korea, the Netherlands, Turkey, Indonesia or Switzerland), and remains relatively strong.

Interestingly, despite the chorus of inaccurate and largely negative reporting in US media -- and the purely fabricated Swine Flu Panic-demic -- Mexico remains the number one destination for retiring American baby boomers and Americans and Canadians investing in real estate outside their home countries.

When Creekmore turns to the subject of the state of the Mexican expat real estate market his analysis paints a picture of one of the most interesting buyers markets in recent memory:

"According to the Vallarta blog, there were 1,520 transactions in 2007 and yet only 315 in 2009. Puerto Penasco has approximately 1,000 properties listed for sale with about 10-12 deals consummated each month so far in 2010. The majority of the residences on the market are owner-distressed re-sales. This does, however, create ample opportunity for buyers. Most of the markets have seen a price adjustment 30-35% less in price per square meter compared with 2007 highs."

Clearly, Mexican sellers -- and specifically sellers in Rocky Point / Puerto Penasco -- have decided to make big price concessions in asking prices, and transaction prices often are significantly less than even these reduced asking prices.

As Century 21 Sun & Sand advises our clients as Buyers Representatives: if you are interested in a property, make an offer.

Most of the buyers in retirement or resort destinations in Mexico are Americans, Canadians, or the European Union citizens. It is notable that both Canadian and EU buyers have been increasing recently because they did not loose anywhere near the purchasing power that Americans did in 2008-2009 -- and because they see the value of Mexican real estate at 2010 prices!

What else are these buyers thinking about when considering Mexican real estate in 2010?

To make a wise decision about buying or investing in real estate outside the United States, Canada or the EU there are several things to consider. These are our Top Ten:

1. Political and social stability: Mexico has been stable for almost 100 years.

2. Acquisition value: Mexican real estate values have adjusted. The cost-value relationship of 2010 is good and sometimes outstanding depending on the location and seller conditions.

3. Healthcare: Healthcare options in Mexico are diverse, high quality and affordable. Mexico has 4 different healthcare systems.

4. Air and driving connections: The Mexican highway and airport networks are vast and safe.

5. Cost of living; A couple can live like royalty in Mexico with less than $3,000 a month

6. Real Estate historic appreciation or devaluation: Depending on the area where the property is located the historic value has been growing up, despite the fact that prices were adjusting, the absorption rate of the distressed properties will bring up prices sooner than later, projected values for 5 years shows good gains for properties purchased this year.

7. Ownership title quality and title insurance availability: Mexico has mechanisms to secure your title. Title research is always needed before buying from a reputable real estate brokerage. Title insurance is recommended.

8. Available investment funds: Depending on your budget always consider the closing cost as you do in the US, Make the right selection and do not try to buy something over your budget.

9. Financing. Mexico has mortgage loans designed for US, Canadian and EU citizens, and some US mortgage brokers can arrange financing for your Mexican dream

10. Weather, Community, Regional Beauty and Property Beauty. This is very relative concept, but if you think there is nothing better for you than that place and that home, and the last 9 points makes sense for you, then you have to consider that home acquisition.

What advantages you can have buying your home in Mexico compared with those in the US?

Buying a property in Mexico in 2010 represents a unique opportunity to buy your dream home, whatever your budget and life style is at a reasonable affordable price.

In my experience I can tell you that a Mexican Luxury Property always will cost you a fraction of what a similar property will cost in the United States. The cost to maintain that home and live in Mexico will be for sure a fraction of the US cost, and most important, if you decide to retire in the future in Mexico you can use your savings to live better for longer in Mexico than in the United States -- including taking care of your health.

So consider buying Mexican real estate in 2010! Century 21 Sun & Sand welcomes the opportunity to help Americans discover what Canadians and Europeans already know: 2010 Mexican real estate is a bargain!

Heidi Wosak is the CEO and designated Broker of Century 21 Sun & Sand located in Rocky Point / Puerto Penasco, Mexico. Extensive information about Heidi and both Rocky Point / Puerto Penasco real estate and luxury properties throughout Mexico can be found at the brokerage website, century21penasco.com