Everyday more people join the ranks of retirees living like royalty on tiny budgets in Mexico. Mexico is the preferred location for Americans living abroad. Twenty five percent or one million of the four million Americans living abroad live in Mexico and why not! You can trade in your suburban home in the U.S. for a seaside estate south of the border, live in elegance with beautiful expansive views in a relaxed lifestyle. In Mexico, you can easily afford the help that makes this style of living easy.
By 2011 the first wave of baby boomers will retire, that’s approximately 78 million people. Most of these retirees can modestly retire in the U.S., or live amazingly better in Mexico. Currently there are 25,000 North Americans retiring each year. Rocky Point is expected to be one of the leaders in Mexico’s growing retirement migration destinations. One of the attributes that is credited for these numbers is that its relaxed and refreshing atmosphere is so close to the border. As investors consider what is important for them in retirement, the proximity to the border is important. Accessibility to an airport, ease of doing business, communication and infrastructure are also important considerations. Because the number of retirees is soon to grow exponentially and many will be migrating south, a recent study was done to analyze the demands, travel habits and perceptions of Mexico as a tourist destination in Americans over 50. The study was conducted by the Council for the Promotion of Tourism for Mexico. The list below is what was deduced, and is partly why so many savvy investors are looking here now. 1 The cost of living is lower 2 The weather is better, escaping cold climates 3 The economic and political climates are stable 4 Healthcare is excellent and affordable 5 English is widely spoken 6 Foreigners can own, buy, and sell property 7 Its close proximity to the U.S. 8 A mix of varying activities from passive to more vigorous 9 Share differing cultures, people and art 10 Beauty of surroundings 11Reliving previous satisfactory experiences If anybody is even considering investing in a retirement community, home or destination, they just need to spend a little time here in Puerto Peñasco to realize this is it. With beautiful beaches, sunsets and so much more visual candy, coupled with the lifestyle opportunities here, this little town is simply inspiring. The research involved in making the most important decision for your retirement is so simple. Come to Puerto Peñasco, take your shoes off and stroll on the beach at sunset. But then realistically spend a little more time here, talk to people who live here and enjoy your homework. While pondering these findings and understanding that the numbers about to retire are staggering, it is no surprise that the Marriott hotel group is investing millions here. This in itself is worth noting. The Marriott hotel group does not jump into a new market without serious studies on long term growth and market potential. The Federal government of Mexico is positioning itself with a Cruise ship home port expected to host cruise lines like Holland America, Princess and Carnival. President Calderon has stated that Puerto Penasco is the most important touristic port in the countries northwestern region.
The International Airport and the Coastal Highway connecting us with the Baja and California are both investments in our future that would not be done without serious deliberation.
Another important consideration drawing retirees is of course healthcare. While Mexico’s healthcare continues to gain respect its northern neighbor’s healthcare is, well, out of control. The U.S. health care system is out of reach for millions of Americans… Carlos Slim, Mexican business magnate and richest man on the planet has partially staked Grupo Star Medica, a Mexican national hospital chain. Plans are underway for new, high-quality medical centers in Mexico to cater to U.S. baby boomers who are buying second homes in Mexico…or who simply want to come to Mexico for cheaper health care than they can find in the United States. Companies like Grupo Star Medica are filling niches created by those new homeowners and vacationers. Baby boomers are also choosing Mexico because its health system is much cheaper than in the United States. Plans are also underway to get more U.S. private insurance companies to pay for medical treatment in Mexico. ''For a U.S. insurance policy to pay for medical treatment, the treatment has to comply with certain quality control standards, and we are going to participate with products to serve this niche,'' said Jaime Jimenez, general director for Mexico Trane, another company following Slim’s lead.
There are 40 million Americans that can’t afford health insurance; therefore there is a need to outsource it. For years thousands of Americans have come to Mexico for affordable dental work and elective surgical procedures. You may have heard, “Ignore your teeth, and they will go away.” Well, the United States has neglected health care reform for so long that its users really are going away…to Mexico!
It is not hard to live a great life for well under $20,000 a year including rent or a mortgage; in fact some are doing so with live in caregivers. Everyone’s lifestyle requirements are different. It’s possible to rent a place on the beach for under $1,000 a month. If you don’t need cable TV or Internet, you can save on those expenses. If you like to go out to eat frequently, like to travel, play golf, scuba dive, etc., you will obviously spend more money—but still, much less than you would for a similar lifestyle in the U.S. We are seeing a number of gated communities rise out of the sand. Many of these communities have all the characteristics retirees have come to expect in the states and with a more affordable price. These communities have varying levels of activities on sight, like recreational rooms, fitness centers, walking trails, BBQ areas and so on. There are truly comfortable condominium projects, and even single family homes in secure neighborhoods priced just over $100,000, some within walking distance to the beach. Most projects also offer developer financing. This is where it is important to talk to a credible real estate professional. It would be ill-advised to come down and simply trust that all developments are safe, secure investments. Just like in the states, there are precautions that must be considered. Mexico now has a National Association of Realtors, and we are affiliated with NAR in the US. We are held accountable, and we are AMPI. AMPI is Mexico’s National Association of Realtors. There is a buyer’s checklist provided by AMPI that consists of questions to ask in order to protect buyers. If an agent is an AMPI member, he or she is licensed to sell real estate in Mexico, accountable, and has access to the MLS. Many baby boomers are looking ahead and investing in their future retirement homes. Right now with the buyers market a reality, there is a great opportunity for those with the foresight to really set up for a great retirement. Anyone that has witnessed the growth explosion here remembers that less than 10 years ago there was nothing but sand on Sandy Beach. In the Summer time a few years back there weren’t three restaurants that had air conditioning. Now one could comfortably dine out at a different establishment every night. In a few years Rocky Point will have all the conveniences retirees could ever want, and they can still drive a few hours north to see the grandchildren. The author of this article is Kent White Realty Executives Rocky Point AMPI President kentoblanco@gmail.com |