Updated on February 6, 2017
Mexico: Real Estate Update
Sun, sand and geopolitics: The lure of Mexico: Vacation properties
Excerpts from The Globe And Mail. Sunday Feb. 5, 2017 Mexico Update
An uncertain political environment in the United States is prompting some high-net-worth Canadians to head even further south for vacation real estate investments this winter. x
With Donald Trump occupying the Oval Office, Canadians are carefully considering the geopolitical landscape before laying out their purchase plans and Mexico is benefiting.
The peso has dropped some 15 per cent against the greenback since Mr. Trump’s victory in November while the Canadian dollar has strengthened. Although most Mexican properties in the desired oceanfront areas are priced in U.S. dollars, local real estate experts still contend it is an affordable market for Canadian investors.
“I don’t think that we’ve ever been busier,” says Charles Tibshirani, a Canadian lawyer who moved to Mexico eight years ago and opened a law practice three years ago. “Real estate transactions are multiplying and multiplying.”
Mr. Tibshirani says his three Mexican offices handle about five to six closings a week – 50 per cent of which involve Canadian investors. And some clients are willing to leave deposits of upwards of 80 per cent on $400,000 (U.S.) properties that are at least a year away from being built.
The Mexican real estate market, still in recovery mode from the downturn in 2008, is in the midst of a building boom with some 16 hotels and other developments under construction in the Los Cabos area alone. Caisse de dépôt et placement du Québec teamed up with a consortium of Mexican institutional investors in 2015 to create a co-investment vehicle to spend some $2.8-billion (Canadian) on infrastructure projects in the country over the next five years.
Abril Pola, a Century 21 agent in Los Cabos, says Canadians are attracted to Mexico’s ocean views, quality of life and affordability. A two-bedroom condominium can be purchased in the Los Cabos area for about $200,000 (U.S.) – a far cry from prices in Vancouver and Toronto.
“The cost of living is ridiculous,” Mr. Tibshirani says, adding that he pays less than $700 a year in property tax on his property valued at approximately $300,000.
Real estate and travel experts suggest Canadians do their homework to understand the laws and restrictions for home ownership in Mexico to avoid the lasting effects of “Margarita fever” – a common malady among foreign investors that induces them to act quickly after seeing the advantages of living in Mexico instead of weighing all the pros and cons.
In our office , Santana Rentals & Real Estate we have Jesse, our local expert, Joan from the US and Canadian REALTOR® and a Certified International Property Specialist® Brell to ensure you are well represented.
“People are buying but it can be difficult to purchase in Mexico. There is a whole set of rules that people have to abide by. The ownership structures are unique there,” says Stephen Fine, president at snowbirdadvisor.ca, an online guide for Canadian snowbirds.
If you are thinking of buying anywhere in Mexico – Contact us first – We are connected, active and Global.
Check out this real estate opportunty – Casa and Casita with Pool 5 minutes to the beach for $110,000 USD>