Mexican real estate – more attractive because Canadian housing prices are high

It appears that Canadians have matched, and perhaps even surpassed, Americans in terms of the benefits they can gain from buying real estate in Mexico. For a while, the US dollar has held high against the Mexican peso, making buying a home in Mexico more attractive, because of the savings from living in Mexico. For Canadians, a recent study suggests that some of Canada’s major housing markets are “overheated” — meaning inflation — combined with the fact that the dollar is at a premium against the U.S. dollar to buy real estate in Mexico. Be the best option financially.

While real estate prices across Canada rose by an average of 10 per cent in the first quarter of 2010, the places where people buy the most – Toronto and Vancouver – rose the most. For example, the price of a two-story home in Toronto rose more than 13% to $550,000 CDN a year ago. In Vancouver, two-story homes fell nearly 20 percent to $990,000. While these rates look exciting, experts in Canada say these jumps are not sustainable and the markets are likely to be “overheated” and “irrational” compared to their reaction to the downturn. The expected increase in interest rates and these high prices are expected to reduce the market during the year.

For homebuyers, this means you have the option of buying at a higher price, which may not be as high in areas with higher costs of living. Alternatively, buyers especially considering investing in a second home should consider buying a home in Mexico. Let’s consider the benefits.

First of all, with an “average” house price in Toronto – over $550,000 – a real estate buyer can find beautiful and luxurious villas in many of Mexico’s famous beach towns, such as Playa del Carmen, Puerto Vallarta or La Paz. Just a few examples. This contrasts life in snowy, gray Toronto with a sunny paradise of wide, beautiful, white beaches surrounded by tropical rainforest. For Canadians thinking of a second home – especially for vacation – or for those who have the opportunity to relocate for retirement or other purposes, there is no comparison between the two options. Life in these Mexican locations, while offering a high level of luxury and convenience with world-class shopping, excellent healthcare, championship golf clubs and more, is very affordable in Toronto, Vancouver or many other Canadian locations.

Mexican real estate offers excellent investment opportunities. High-quality condominiums and homes and condos in Mexico provide many vacation owners with a reliable income that they rent out to other vacationers when the property is not in use. Asset management companies make this type of income easy. Another option is the up and coming tourism areas; The state of Campeche (on the other side of Cancun on the Yucatan Peninsula) currently has one development with beachfront lots starting at $65,000. These lots include 20 meters of virgin beach, and the area is showing great potential for a significant increase in property value. With two new luxury condo-resort developments, a recently restored colonial townhouse and all amenities currently available, with another $100,000 investment to build a home, these properties could sell for multiples in a few years.

To top it all off, the Canadian dollar is at an all-time high – on par with the US, and high against the peso – and is expected to stay that way for some time. While prices are slower to adjust to the higher dollar in Canada, that means the same dollar buys that much more in Mexico — in terms of real estate, big-ticket purchases and everyday goods.

With these factors in mind, all Canadians considering a property purchase may do better to consider Mexican real estate.

TOPMexicoRealEstate NETWORK; Mexico’s leading network of specialists to safely find and buy Mexican property

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