Posted on March 16, 2020
Coronavirus and the Mexico Real Estate Market
As of the time of this writing, March 16th, 2020, Mexico has very few cases of the virus in the country. The Mexican government is considering limiting people coming south across the border from the US into Mexico to contain the spread of this illness. Surprisingly, Mexico has no problem testing people, like the US so if you are already in Mexico this can be done quickly.
As with the US and other countries, Mexico is advising people to keep their distance and stay home, especially if you have any kind of cold systems or are elderly. Mexico is a land of very generous people who are willing to help each other so if anyone does get sick they can rely on their friends, family, and neighbors to help them if they are in need of anything. This kindness and generosity is a cultural mindedness and not a geographic one.
The real estate market in Mexico is doing very well as more and more people from the US come to the realization that they just cannot afford a quality retirement in the US. Properties are 1/4 to 1/3rd of what they would cost in the US. Food is about the same and utilities are about 1/3rd of the cost in the States. Baja California specifically is a popular destination for Americans and Canadians as well as Europeans. The weather is a mild Mediterranean climate ranging between 60 and 85 degrees year-round and the proximity to the US for shopping, family visits, and medical appointments is extremely convenient.
Building a home in Mexico is currently ranging around $85 per sq. ft. for a standard, high-quality home. Lots range from $35,000 to over $200,000 USD depending on the location, view, etc. Finding builders and materials for building are easy through real estate agents and home inspections, title and escrow services are becoming more of the norm among the top brokers. Sustainable building materials are available through my company Baja California Real Estate, for a quote please contact me directly at 619-547-6621 or through our website, www.bajacalrealestate.com.
Financing real estate purchases in Mexico is very expensive. The average interest rate is between 7% and 12% so naturally, most transactions are done in cash. People either use their savings, sell a property in their home country or take out Lines of Credit and Home Equity Loans at exceptionally low-interest rates. Inventory for modernized homes and new construction is limited as is resale properties so it is a seller’s market. All properties are negotiable however so working with a qualified and experienced real estate agent is a buyer’s best way to get a good deal on a property.
Stay safe and healthy.
For more information or a personal consultation feel free to call me, Diane Webster, Broker/Owner, Baja California Real Estate. firstname.lastname@example.org