Readers of the blog often ask me why we chose to buy property in Mexico instead of simply renting a place.
I considered writing an article about the pros and cons of doing both – but that topic has been beaten to death. If you Google it, you will receive over 27,000,000 responses – I know, I did it.
Besides, an article like that still wouldn’t answer the question why “we” decided to buy a place in Mexico.
I can tell you that the decision was made only after carefully analyzing data and information from a wide range of sources and then scouting the area. My wife and I are fiscal conservatives and we only invest in something if the probability of a successful return is very high.
Just in case you’re curious what type of data and information I reviewed, here is a quick rundown (feel free to skip this part):
Historical data and projections related to population and economic growth; crime statistics; government investment and projected investment in infrastructure; real estate law; currency exchange rates and projections; environmental protection laws and possible impact on future construction in the area; medical services and facilities; price comparisons; probability of future rental income; and tax law (capital gains and property).
This amount of research might sound excessive to some people but it was necessary to give us both peace of mind.
Summary of Analysis
Although the data overwhelmingly supported the decision to buy a property as opposed to renting, we still planned to rent unless we could find the perfect place that checked some additional boxes on our combined wish list.
Through a combination of great luck and even better timing, we stumbled across the perfect place for us near Akumal. To read more about why we chose this part of the Riviera Maya, click HERE.
Paul, What About Conditions Today?
If I stopped the article here, at least one reader would inevitably ask me the question above, so here is my answer:
Although I don’t dedicate as much time to researching real estate conditions as I did before we bought, I still keep up with current events that would affect our investment. Saying that, the conditions are still favorable to invest in real estate in certain areas of the Riviera Maya – especially the coastal area south of Playa del Carmen. This area actually reminds me a lot of south Florida in the early 1980’s before the price of real estate shot up.
Let’s Wrap This Up
The purpose of this article was not to convince anyone to buy a property in Mexico; rather, it was to explain why two highly fiscally conservative people would invest in a property located in another country.
So far, I think the investment was a sound one. We have lived here over a year and we have had two offers to buy the condo at a price above what we paid. The condo isn’t for sale but that doesn’t stop people from asking to buy it.
We know that we could sell it now and make a profit but we love the place too much to leave. We found a lot more than an investment property – we found a tight community of amazing people.
I pondered making a comment about how “priceless” that is but I resisted because it seemed a bit cliché.
It is nice to know that when we are ready to sell it, we should have significantly more return on our investment than we would have had if we had invested in bonds or left it in a savings account.
Of course nothing in this world is certain except for death and taxes. We are hopeful that people won’t get tired of the warm, turquoise waters of the Caribbean anytime soon. But if they do, the worst case scenario is that we have to keep living in this beach paradise forever. I think we could handle that option.