Many buyers like to consider Mexico real estate an investment; but what about really using the tools available to generate financial gain? The following is a story of one buyer who uses Mexico mortgages to buy properties, and in doing so has acquired several properties, and is preparing himself to live in Mexico comfortably for an early retirement.
This buyer, who we'll call Tim, started off with a fairly modest investment of a condo in Playa del Carmen around the $150,000 USD mark. Instead of using the property of vacations, Tim decided to treat it like an investment. Having bought through a mortgage, Tim sat down to talk with his agent and other people who knew the market well, did some math, and realized that he could cover the expense of his condo, including maintenance fees and monthly loan payments, through a strategic rental plan.
Tim moved ahead with the strategy, and thus started the process of acquiring a condo at very little expense to himself; his only expenses were the down payment and closing costs. For the rest, the condo is “paying for itself. "
Because of his ability to continue saving, even while owning a second property, Tim has been able to acquire another 2 condominium units in this way; the first one is close to being paid off.
By the time Tim retires 10 years from now, he will be the full owner of 3 condominium units. He has already chosen which one he is going live in, and knows that he will be able to live comfortably on the income from the other 2! Knowing this he has even planned to make some extra payments from his savings a few years early.
To be realistic, this isn't just a snap of the finger. It takes planning and dedication. Currently, Tim “downgrades" when he comes down to Playa del Carmen on vacations, and stays in a comfortable, but modest and well-priced hotel room, while he continues to see the income from his rentals. If he wanted to, he could take a couple of steps up in luxury, since all of his savings are almost entirely in tact.
It also takes careful research to make sure that the properties bought are ideal for vacation or long term rental. Tim put these aspects ahead of his personal taste for this reason; fortunately, however, most features that are attractive to vacationers are also attractive to retirees.
However, Tim's story shows us something; it is very possible to invest in condos in Mexico successfully on a moderate income using tools such as mortgages, and to get ready for retirement in doing so.
Consider a plan like this for yourself.
TOPMexicoRealEstate.com; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely