It’s no news that Mexico has been a preferred location for people to retire to from around the world. The country is home to about 1.5 million Americans and equally as numerous expats from places like Europe and Asia. Once you realize the benefits and advantages of living in Mexico, you soon come to the conclusion that life is actually better when you move to the country. The place is really cheap compared to other developed nations and has some of the most affordable real estate throughout the world.
Whether you look at it from an investment point of view or if you’re thinking about the value offered by the Mexican lifestyle—you’d realize that there are few places like Mexico to settle in. The country shares borders with the US and most of Central/South America—and is generally accessible from the rest of the world. Additionally, it’s recognized as one of the fastest growing emerging economies in the world and is the second largest economy in Latin America.
With it’s economic potential, the affordable lifestyles and the accessibility from any part of the world—you’d have the perfect basecamp to launch your financial and business moves. All the while you sit and relax in the warm weathers that prevail throughout the year.
Playa del Carmen has recently come to light as one of the more popular regions to buy up property in. The city is located along the Caribbean coast that runs down Mexico—sharing much of the climate and aesthetic features of Caribbean countries, but with one exception— property in Playa del Carmen costs a fraction of what the Caribbean costs. This is the perfect moment for expats to jump into the real estate market in Playa del Carmen because this is the best place to invest in amongst all the other domestic real estate markets in the country.
Reasons To Invest in Playa del Carmen
The real estate market in Mexico is generally thriving right now, even during the Covid-19 pandemic—carrying forward much of the momentum it enjoyed before the breakout. During the last quarter of 2019, experts pointed out that prices grew by 2.44% on a quarterly basis. This growth was put down to the growing middle class in the country where 82% of all Mexicans wanted to buy property rather than rent it out. This effect was compounded by the international interest garnered by the market and the government’s incentives to people willing to invest in both commercial and residential property.
Playa del Carmen, as part of the real estate industry in the region wasn’t excluded from the overarching market dynamics. As people started buying up property in the more popular regions like Cancun and Tijuana—Playa del Carmen stood out as the next target for massive property development projects. This was to be expected, I’m personally surprised that people didn’t move in earlier, because Playa del Carmen offers the following advantages:
It’s the Focal Point for Domestic Demand
Property is an asset that has a relatively inelastic supply in the long run because of the physical limitations of the asset. How will you buy a house when there are no homes to buy in any given region and no room to build more houses? Something like this has happened in places like Mexico City, Tijuana and Guadalajara with their enormous populations. As people move in, it stifles demand and housing prices skyrocket—these areas are some of the most highly valued real estate markets through the country.
In response to these dynamics, the domestic and international investor looks for other places to invest in. They move toward areas like Playa del Carmen that have a high supply of homes ready for the taking. Playa del Carmen has become the center of attention for many real estate developers and people are snapping up property while the region is still a relatively cooler market.
Considering the existing dynamics, the market will start expanding and prices will get higher as time goes by. With an immense domestic demand for housing and the international investments in real estate, property in Playa del Carmen will become one of the most prized jewels in the region. If you’re thinking about buying property here from an investment’s standpoint, you stand to make a lot of money in Playa del Carmen.
Manufacturing Plants Are Moving to Mexico
First the US-China trade war and then the nCovid-19 outbreak—corporations have realized that China’s bad news. The higher tariffs imposed by Trump during the trade war forced people out of China, no longer able to enjoy the cost advantages offered by China. The lockdown in China then forced more people out because they couldn’t just stop production in the region.
This has forced many organizations to reconsider their supply chain processes to move their manufacturing plants to Mexico and Europe instead. This new surge in commercial activity is bound to increase the wages and move investments into Mexico to make the country into a thriving hub of commercial activity. Both the rising wages and the people who’ll move in will make Playa del Carmen the go-to place to buy a house.
Low Cost of Living in Playa del Carmen
Playa del Carmen offers people pretty much everything they’d want from their ideal home. It’s located on the beautiful Caribbean shores and is in close proximity to many metropolitan regions in Mexico without the added premium. Considering the differences in the exchange rates between the US dollar and the Mexican Peso, anyone who’s making money outside the country will live the most luxurious life at a fraction of the cost.
Conclusion
With low costs of living, growing commerce and high property valuations, Playa del Carmen becomes the ideal place for you to buy a home in. You can buy the house, rent it out, hold it or sell it or even live here—the choice is your—but no matter what you do, having this home on your portfolio could do much to enhance your portfolio valuations. If you’re interested, you can get in touch with the people over at SIMCA Mexico who’re currently planning out real estate development projects in Playa del Carma.
I hope you enjoyed reading: Reasons to Buy Property in Playa del Carmen For the Perfect Retirement Plan. Please contact SIMCA Mexico as you’re ready to buy property in Mexico.
I would also like to share some really great articles on Mexico and SIMCA Mexico.
Buying Property In Mexico: A Step-By-Step Guide For Expats
Best Cities in Mexico for Snowbirds
What is the Mexico Maquiladora Program
About The Author
Mikkel Thorup is the host of The Expat Money Show podcast and Director of Content at Escape Artist. He is also the author of #1 Best-Selling book Expat Secrets on Amazon. He has spent nearly 20 years in continual travel around the world, visiting more than 100 countries including Colombia, North Korea, Zimbabwe, and Iran. His goal is to help people just like you to generate additional streams of income, eliminate your tax bill, and take advantage of offshore structures so you can travel the world freely and never have to worry about money again. For more information on his legal (but creative) tax strategies for Expats watch this free video.
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