Canadians who are planning on making a property investment any time in the near future right now have every reason in the world to consider buying Mexico Real Estate. Besides excellent infrastructure in various excellent beachfront locations, a Mexico Home or condo offers a luxury level property at a much more affordable price than what a buyer can find in Canada, with many locations showing excellent potential for increased value. For investors a Mexico Condo on the beachfront is an ideal property, combining the attractiveness of warm weather with convenience, and well developed infrastructure. Various recent economic factors in Canada have likewise made these factors even more appealing.
One recent factor which property investors must consider are the new mortgage restrictions recently set up by the federal government. In order to cool the housing market somewhat, in mid-February the federal government of Canada tightened mortgage restrictions in several ways. Two measures taken especially target investors, requiring real estate buyers to demonstrate the ability to handle a five-year fixed mortgage rate – higher than the previous 3 year rate, and requiring buyers who will not live in their property to make a 20% down payment, up from the previous 5%. Both measures make it more difficult for buyers to invest in a property for income purposes.
Mexico Real Estate presents one of the best options for investors looking for an option that shows excellent potential for high return. Homes or condos on Mexico’s beachfront can also provide income through rental for vacationers. Many who own homes in Mexico have chosen a balance between their lifestyle and investment, using the property when they are on vacation, and renting it out to other vacationers when they are not. Many condo units even include on-site rental services to facilitate this kind of income.
Mortgages for real estate obtained through financial institutions directly in Mexico are also becoming a more viable option. In the past – less than ten years ago – Canadian buyers had to mortgage a property back home, and make a cash purchase in Mexico. Now, mortgages are becoming available and easier to obtain for both Mexican citizens and foreigners, meaning that buyers can use the property in Mexico itself as collateral for the loan. Canadians can receive institutional financing for up to 75% of the property value – only slightly less than the 80% now required for investors in Canada.
When the strong value of the Canadian dollar is considered, together with the fact that Mexico real estate is cheaper than similar quality properties in Canada, this 5% is quickly outweighed. The Canadian dollar has been hovering around 0.95 US for several months now; Mexico real estate on the beachfront is usually sold in US dollars, and the fact that the dollar has increased its value against the US. Dollar by almost 50% over the past few years, means that Canadians can now afford a property in Mexico of significantly greater value than before. It also means the payments on a mortgage in Mexico will be easier to make.
Overall, while in Canada it’s becoming more difficult to invest in a property, it’s easier and, in many ways, more attractive in Mexico, considering new mortgage options available in Mexico and the strength of the Canadian dollar. Consider investing in a property in Mexico.
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