Recently, I was happy to obtain the Certified International Property Specialist and Resort and Second-home Property Specialist certifications.
I am very focused on Lifestyle Real Estate investing for both my clients and my family so these valuable certifications make sense and as a result, I now have a network of real estate professionals around the world to help my clients.
As you many of you know, I have purchased a preconstruction 2nd home in Mexico. As I received several questions on why I bought in Mexico, here are my thoughts.
Mexico has long been a favorite destination for us from the great white north who want to vacation where there is warm climate, stunning beaches, rich culture, and delicious cuisine. Here are just a few reasons why Mexico should be at the top of your list for your next vacation home investment.
10 Reasons Mexico is the Best Choice of Vacation Home Investment
1) Proximity to Canada
One of the biggest advantages of investing in a vacation home in Mexico is its close proximity. For Canadian investors, it is just a short flight away, which means you can easily and frequently enjoy your vacation home without having to endure long flights or significant time differences. In most cases, there are direct flights to major Mexican destinations.
Also, I quickly learned that I could still successfully conduct business back home while in Mexico because of the excellent internet connectivity and minimal time differences to my clients in Canada.
2) Affordability
Compared to other popular vacation home destinations, such as Hawaii, the Caribbean, or Europe, Mexico offers more affordable real estate options.
As a Canadian who owns in Hawaii and travels there often, I can attest first hand that since the pandemic the prices for everything from accommodations, car rentals, food, restaurants etc., have skyrocketed in comparison to Mexico.
For Canadians, our currency can go further in Mexico than those other destinations.
3) Favorable Exchange Rates
Another advantage of investing in a vacation home in Mexico is the favourable exchange rate between it and the Canadian investors.
The Mexican peso has historically been weaker than the Canadian dollar, which means that your money goes further in Mexico. This makes investing in a vacation home significantly more affordable and potentially more profitable in the long run.
4) Growing Economy and Stable Political Climate
Mexico’s economy has been steadily growing in recent years, which means it is becoming an increasingly attractive place for foreign investment. Additionally, Mexico has a stable political climate and has been working to improve its infrastructure and services for tourists and foreign investors.
This also means that investing in a vacation home in Mexico is not only a smart financial decision, but also a safe and stable one.
Because of the weaknesses in the supply chain that the pandemic exposed, recently there has been significant investment into Mexico for manufacturing of goods. Nearshoring is one of the reasons that Mexico’s economy and currency has been so strong since part way through 2022
Is the Mexican political climate perfect? No but where is it perfect? The headlines we read here create the perception that Mexico is less safe than it actually is and contributes to why the home prices are not currently more expensive.
There is work to be done and from what I am seeing there is a concerted effort to strengthen their economic and political systems.
5) Affordable Real Estate Prices
Compared to real estate prices in the Canada, Mexican real estate prices are generally more affordable and as a Canadian, certainly more affordable in comparison to the US when it comes to sun destinations.
This means you can get more for your money in Mexico and potentially earn a higher return on investment.
Additionally, property taxes and other expenses related to owning a vacation home in Mexico are typically and significantly lower than in Canada, which makes it even more of a more attractive investment.
The secret is out and Mexico home prices in key destination markets are quickly becoming more expensive due to the growing economy, greater interest by North Americans looking for a vacation or 2nd destination home. Yet the home prices are still incredibly reasonable to what we are used to at home.
6) Diverse and Beautiful Destinations
Mexico has a diverse range of destinations and settings for vacation homes, each with its own unique charm and beauty. Whether you’re interested in the white sandy beaches of Cancun, the colonial architecture of San Miguel de Allende, the natural beauty of the Riviera Maya, or the wonderful beachfront and resort lifestyle of the Puerto Vallarta region, Mexico has something for everyone.
Additionally, Mexico is home to many hidden gems that are off the beaten path and offer unique experiences. There are amazing options that fit any lifestyle preferences and interests.
7) Established and Growing Tourism Industry
Mexico has long been a popular and steadily growing vacation destination for North Americans, and vacationers from around the globe which has aided the growth of a welcoming and sophisticated tourism sector. As more and more tourists are choosing Mexico, there is growing interest in renting properties in Mexico rather than staying in hotels. With this higher demand makes an attractive and advantageous investment.
8) Strong Online Rental Market
As previously mentioned, Mexico’s growing tourism industry has created a strong rental market for vacation homes. This means that if you’re looking to invest in a vacation home for rental income, Mexico is a great choice.
Additionally, vacation rental properties in Mexico typically have higher occupancy rates and rental yields compared to other locations, providing a higher return on investment.
With the growing popularity of online vacation rental platforms such as Airbnb, VRBO and such it has never been easier to rent out your vacation home to travelers from around the world.
As a lifestyle investor, you are not always going to be occupying your home. These online vacation platforms make it easier for you to rent out your property when not using it, providing you with additional income to cover your operating expenses or even earn income there. The reason I chose the Puerto Vallarta area is that it is quickly becoming one of the top global tourist destinations
9) Friendly Culture
Mexico is known for its hospitality and welcoming culture which means that you can expect to be welcomed with open arms by your neighbors and the local community.
In all our stays in Mexico over the last 20 years, it didn’t matter where we were; we felt welcome. We were always helped when we needed, despite not always speaking Spanish very well. This welcoming hospitality will make your experience of owning a vacation home in Mexico enjoyable and fulfilling.
The one caveat I wish to share is, as foreigners, we are guests in the country and may not understand cultural differences. It serves us well to learn a little about the culture and customs ahead of travelling or buying there so that we support that continued welcoming culture.
10) Warm Climate Year-Round
Last but certainly not least, is the climate. In fact as a Canadian emerging from a rather long cold winter, this is my number one reason for buying a vacation home in Mexico.
If you like the snow in winter, that’s great. However, for those looking to escape the cold, Mexico is a massive draw. Warm temperatures year-round make it the perfect place to enjoy outdoor activities like swimming, hiking, and golfing.
Plus, with so many beautiful beaches to choose from, you can spend your days soaking up the sun and enjoying the ocean breeze.
Is Investing in A Mexican Vacation Property Right for You?
Mexico is a great choice for Canadians looking to invest in a vacation home. With its affordability, proximity, diverse locations, and friendly culture, no wonder it attracts so many vacationers from around the globe. It offers many advantages compared to other vacation home destinations.
Plus, with a well-established and growing tourism industry, strong rental market, warm climate year-round, strong economy and stable political climate, there are plenty of reasons to believe that your investment in a vacation home in Mexico will pay off in the long run. So why not escape the winter blues and invest in a vacation property in Mexico?
Contact me and let’s use my professional designations and connection to help you find your vacation home in Mexico.
