Forbes Says Now’s the Time to Invest in Mexico Real Estate
As one of the world’s best places to retire abroad, Mexico has been popular among international investors for decades, and now Forbes has advised readers that this is an ideal time to invest in Mexico real estate, stating that Latin America’s second-largest economy is also one of the world’s top four places to buy a second home and/or vacation home overseas!
“Mexico offers two long coasts, mountain towns and colonial cities, plus Mayan ruins, jungle rain forest, rivers and lakes”, wrote Forbes. “It’s also the most accessible ‘overseas’ haven from the United States, since you could drive back and forth if you wanted”.
Why You Should Invest in Mexico Real Estate Right Now
Heading into 2019, the dollar’s current strength has created exceptional value in some of the world’s hottest investment property markets, including Mexico. This means right now is a fantastic time to invest in a rental property or second / full-time residence, whether you want to collect ongoing rental income or plan to live in Mexico either full or part time.
“Mexico is home to the biggest established populations of American expats in the world”, wrote Forbes. “More than 1 million Americans live in Mexico, and more than 500,000 own homes here”.
Can I own Property in Mexico as a Foreigner?
First and foremost, it’s important to establish once and for all that YES, foreigners can legally own and buy property in Mexico, (see our buyers guide). In fact, changes in the constitution over the years have made it easier than ever for foreigners to buy real estate in Mexico and right now is a great time to buy! “Expats [in Mexico] are enjoying a low cost of living at today’s exchange rates”, wrote Forbes. “While new arrivals are getting great property bargains”.
Coastal property in Mexico still trades for less than coastal property in the United States. Property in Mexico can also surrender an annual rental income, depending on where the property is situated. The cost of ongoing ownership (especially maintenance and taxes) is also relatively low in Mexico. Today, Mexico offers investors a wide choice of property options.
Why San Pancho, Nayarit?
Book-ended between two huge luxury markets on the Riviera Nayarit, San Pancho is an unexposed treasure. The town is petite, but home to several chic restaurants, eclectic shops and an uncrowded beach where you can still sip margaritas with your feet in the sand. On any given happy hour, you can watch the sun dip into the ocean, regardless of the season. Ten minutes from Sayulita’s vibrant nightlife and 45 minutes from the Puerto Vallarta International airport, San Pancho has everything visitors need.
The tranquil surroundings are perfect for a breezy hammock nap or a lazy walk on the white sand beach. If folks are activity inclined, the town is home to some of the best outdoor adventures in Mexico including surfing, mountain biking four-wheeling, equestrian activities, diving, fishing, and more. Humanitarianism runs deep here too. If visitors are looking for a way to get involved in the community, they can volunteer with the turtle rescue project, spend time at the jaguar preservation center or spread joy at the world-renowned Entre Amigos, an education-based non-profit community center.
Another major player in keeping the culture of our little town as diverse as it is, is Terra Tropical and the La Patrona Polo fields. These influential residents of our pueblo are inclusive and charitable. They also contribute heavily to the infrastructure of the town and are invested in keeping this little piece of paradise as safe and quaint as it can be.
Along with the above-mentioned dynamics, the topography of the town helps prevent the expansion and massive development that a lot of the region is experiencing, keeping it the perfect mix of locally-owned shops, hotels, and restaurants.
On the real estate end, the rate of sales has gone up drastically in the last three years. Two years ago, a home in Bahia de Banderas would be on the market for an average of one year (366 days and listed with AMPI Flex Multiple Listing Service). Today we are seeing the sales timeline cut down to 200-day range.
Average sales prices for the area have jumped 65% in the last few years AND, in San Pancho alone, we saw a 400% increase in sales between 2016-2018. hese statistics represent a broad market and include everything from luxury beach homes to downtown commercial lots. The rental market is also where a significant boom is happening. Like many tropical destinations around the globe, the short-term rental boom is in full bloom with few long-term options. This can be very profitable for the homeowners in these communities.
Speaking from personal experience, we rented our near-the-beach, three-bedroom home for almost 200 nights a year for between $250-350 per night. The neighboring house (4 bedrooms with a small pool, same area), currently rents for $350 per night and they are almost full all season as well as profiting in the offseason.
The “slow season” in this area is getting shorter and shorter due to a larger contingency of local Mexican nationals visiting during the summer months and that is only going to improve with the advent of the new highway direct from Guadalajara cutting the time here, from four hours to a quick two-hour drive. Also, with our surfing swell season being in the summer and San Pancho now being on the surfer’s map, there is a large influx of surfing families from Canada and the U.S. coming down on vacation while the kids are out of school for the summer. With overflow from Sayulita and our family friendly dynamic here in San Pancho, we are becoming more popular for off-season rentals.
The Puerto Vallarta airport is easily accessible from most international airports and some smaller as well. This graph illustrates the hours on the flight respective to location withinin the United states and Canada with a maximum of a six-hour flight from upper Canada, and a minimum of two hours from Southern California.
For any more questions on investing in Mexico or San Pancho, Nayarit, Mexico, feel free to reach out and ask! Click here to CONTACT US