“We want to live in Mexico: ‘Should we sell our property in the US before prices fall and buy our dream home abroad?’

We own several houses and all offer a solid income. In fact, they more than cover each other and allow us to build contingencies.

But we want to live in Mexico.

Real estate prices have skyrocketed there, but as interest rates rise, I think prices will fall everywhere, including in Mexico.

Do you think it would be prudent to sell one of our homes here, wait for the price to drop, and then buy in Mexico?

Renting there has become too difficult, the prices are outrageous and it’s even more difficult with pets.

We don’t have enough cash to buy a house in Mexico without selling anything. What should we do?

Move to Mexico

The big move‘ is a MarketWatch column covering the ins and outs of real estate, from finding a new home to applying for a mortgage.

Do you have a question about buying or selling a home? Do you want to know where your next step should be? Email Aarthi Swaminathan at TheBigMove@marketwatch.com.

Dear moving to Mexico,

It’s always amazing to live in a new city, let alone a new country. It’s definitely an adventure if you’re up for it.

But before you take the plunge and move south of the border, I have questions: Have you researched where in Mexico you want to live? And have you pinned down a neighborhood that you see yourself living in for an extended period of time? Are you familiar with the property taxes, insurance and other costs you would have to bear for the house you want to buy in Mexico?

Leaving aside the essential details like income tax and insurance costs, instead of focusing on the house you want to buy, the real estate market in Mexico is definitely more interesting because you have more options to choose from.

The price can vary greatly depending on where you are looking.

According to a, the average home price in Mexico in June was 881,000 pesos ($44,000). report by Sociedad Hipotecaria Federal, a government finance agency. Real estate prices have increased by 8% compared to the previous year.

“Are you familiar with the property taxes, insurance and other costs you would have to bear?”

But if you’re looking to buy a beachfront property like in Cabo, Cancun, or Tulum, that price can go as high as $1 million, or even as high as $40 million at the higher end of the luxury market, Ed Eakin, Jr., a Dallas real estate agent, says also operates a brokerage firm in Mexico, told MarketWatch.

Eakin Jr. also directs potential buyers to local real estate agents in Mexico.

In the US, the average home price for an existing home in August was $389,500, up 7.7% from a year ago. According to the National Association of Real Estate Agents.

On top of that, when you buy a beachfront home in Mexico, it’s also not a direct transaction—you have to do it go through a trust to purchase the property. But you can sell it, rent it, lease it just as you own it, and even list your children as beneficiaries.

And if you are interested in renting this out as Airbnb ABNB,
Consider yourself one of many: “The demand for Airbnb in the Riviera Maya is insane,” said Eakin Jr.

On the subject of timing: You said you expect prices to fall everywhere and then you want to get involved.

It may make sense to act quickly and buy if you see a home you like in your chosen spot.

But if you wait for prices to drop in Mexico, chances are your real estate value in the US will also drop, which can stretch your budget.

Keep in mind that economists like Moody’s Analytics’ Mark Zandi expect house prices to rise fall 10% from peak to valley. Home price growth is also slowing rapidly in the US

Based on this, if you see a home you like in your chosen location, it may make sense to act quickly and buy.

Additionally, you’re more likely to save on property taxes because they’re far lower than what we pay here in America, according to Eakin Jr.

It’s not an easy decision, but given that you have multiple homes and the opportunity to expand internationally, it may be worth embarking on this adventure sooner rather than later.

But of course you have to choose wisely and see what makes the most financial sense for you.

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https://www.marketwatch.com/story/we-want-to-live-in-mexico-should-we-sell-our-property-in-the-u-s-before-prices-drop-and-purchase-our-dream-home-overseas-11664984514?rss=1&siteid=rss “We want to live in Mexico: ‘Should we sell our property in the US before prices fall and buy our dream home abroad?’

Brian Lowry

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