We have several houses, and they all provide solid income. In fact, they are much more than just covering themselves, and allow us to create contingencies.
But we want to live in Mexico.
There are skyrocketing housing prices, but, with interest rates rising, I’m thinking prices will drop everywhere, including Mexico.
Do you think it would be wise to sell one of our homes here, wait for prices to drop, and then buy in Mexico?
Renting there has become very difficult, the prices are outrageous and with pets it is even more challenging.
We don’t have enough cash to buy a place in Mexico without selling anything. What should we do?
going to mexico
,big move‘ is a MarketWatch column looking at the ins and outs of real estate, from navigating a new home search to applying for a mortgage.
Do you have questions about buying or selling a home? Do you want to know where your next move should be? Email Aarti Swaminathan at [email protected]
Dear going to Mexico,
It is always wonderful to live in a new city, to say nothing of a new country. It is definitely an adventure if one is up for it.
But before you take that plunge and head south of the border, I have questions: Have you checked where you want to live in Mexico? And have you occupied a neighborhood in which you find yourself living for a long time? Are you familiar with the property taxes, insurance, and other costs that may arise when you are planning to buy a home in Mexico?
The property market in Mexico is certainly more interesting, as you have more options to choose from, rather than focusing on the home you’re about to buy, excluding the finer details like income tax and insurance costs.
The price can vary greatly depending on where you look.
The median home price in Mexico as of June was 881,000 pesos ($44,000), a . According to report good by Sociedad Hipotecaria Federale, a government financial agency. Home prices are up 8% from last year.
,‘Are you familiar with property taxes, insurance, and other costs that you will have to bear?’,
But if you want to buy a beachfront property in Cabo, Cancun or Tulum, that price tag could run up to a million, or even up to $40 million at the high end of the luxury market, Ed Eakin Jr., a real estate agent in Dallas who also operates a brokerage in Mexico, told MarketWatch.
Akin also refers potential buyers to local agents in Mexico.
In the US, the median home price of a current home in August was $389,500, up 7.7% from a year earlier, According to the National Association of Realtors,
On top of that, if you’re buying a beach house in Mexico, it’s also not a direct transaction – you have to go through a trust to buy property. But you can sell it, rent it out, lease it as you own it, and even list your children as beneficiaries.
And if you’re interested in renting it out as Airbnb ABNB,
Consider yourself one of many people: “The demand for Airbnb in the Riviera Maya is insane,” Eakin said.
As a matter of timing: You said you expect prices everywhere to drop, and want to jump when they do.
,If you see a home of your choice in the location you have chosen, it may be wise to move fast and buy.,
But if you wait for prices to drop in Mexico, the value of your property in the US may also drop, so your budget may be smaller.
Consider the fact that economists like Moody’s Analytics’ Mark Zandi are expecting home prices to 10% fall from top to trough, Home price growth in the US is also slowing down sharply
On that basis, it makes sense to move fast and buy if you see a home of your choice in the location you have chosen.
Additionally, you’re more likely to save on property taxes, because they’re much lower than what we pay here in America, according to Eakin.
It’s not an easy decision, but since you have multiple homes and have the opportunity to expand internationally, it might be worth embarking on this adventure as early as possible.
But of course, you have to choose wisely and see what makes the most financial sense for you.
By emailing your questions, you agree to publish them anonymously on MarketWatch. By submitting your story to Dow Jones & Company, the publisher of MarketWatch, you understand and agree that we may use your story, or versions thereof, across all media and platforms, including through third parties.,
Credit: www.marketwatch.com /