Should we sell our property in the U.S. before prices drop, and purchase our dream home overseas?
Written by Aarthi Swaminathan
It’s always amazing to live in a new city, let alone a new country. It’s definitely an adventure if one is up for it. But before you take that plunge and move south of the border, I have questions: Have you checked out where you want to live in Mexico? And have you nailed down a neighborhood that you see yourself living in for a long period of time? Are you familiar with the property taxes, insurance, and other costs you’d have to bear for the home you’re planning to buy in Mexico?
Putting aside the nitty-gritty details like income tax and insurance costs, instead focusing on the home you’re about to buy, the property market is definitely more interesting in Mexico, because you have more options to choose from. The price can vary significantly, depending on where you look. The median home price in Mexico was 881,000 pesos ($44,000) as of June, according to a report by Sociedad Hipotecaria Federal, a government financial agency. Home prices are up 8% from last year.
But if you’re looking to buy a beachfront property, such as in Cabo, Cancun or in Tulum, that price tag can run up to a million, or even as steep as $40 million at the high end of the luxury market. Potential buyers to local realtors in Mexico. In the U.S., the median home price of an existing-home in August was $389,500, up 7.7% from a year ago, according to the National Association of Realtors.
On top of that, if you’re buying a home in Mexico on the beachfront, it’s also not a direct transaction — you’ll have to go through a trust to purchase the property. But you can sell it, rent it, lease it, just like you own it, and even list your children as a beneficiary. It’s not an easy decision to make, but since you’ve got multiple homes and have the opportunity to expand internationally, it may be worth embarking on this adventure sooner rather than later.
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