Nostalgia Meets Convenience
Mexican areas targeted to baby-boomer retirement have all the amenities and comforts of home, explains Maria Lopez, sales associate at
Condo Hotel Center. Plus, many locations are a short flight or drive away from the American border.
The 1994 NAFTA agreement between Canada, the U.S. and Mexico further opened the possibility of Mexico as a retirement haven. Not surprisingly, most retirees there are American (about 70%), followed by Canadians.
Howard Goakey, founder of
Mexico Buyer's Guide, says Mexico draws baby boomers with its spring-break nostalgia. "As adults, they want to go back to that warm feeling of beaches and palm trees," he says.
Then there's the pricing: Most people who are priced out of beaches from Seattle to San Diego can still afford beautiful Mexican oceanfront property. In Puerto Vallarta, for instance, oceanfront condos go for around $350,000 to $450,000. And you can find attached golf, spa and fishing facilities at substantially discounted prices, because "land in Mexico is abundantly available and inexpensive, and construction costs are not as high," says Lopez. "Just about every development has a boating or golfing amenity."
Clients coming to Goakey's site are looking to spend an average of $250,000 almost exclusively for second homes and are within five years of retirement, looking to get their foot in the door now.
Financing is also safer now, says Goakey, with two major title insurance companies,
Stewart(STC Quote - Cramer on STC - Stock Picks) and
First American(FAF Quote - Cramer on FAF - Stock Picks), granting title insurance in U.S.-backed loans, which are highly recommended to protect your post-retirement investment.
Annika Mengisen
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