Select Mexico Properties

A recent study conducted by Barclays Global Investors shows that many Americans who are approaching retirement age are relying too heavily on the equity in their homes, future anticipated earnings and Social Security. Under the current economy, this combination of assumptions may mean that many Americans do not have sufficient retirement savings.

Real estate values in most major American markets have fallen, due to eroding consumer confidence, a restriction on credit and a basic oversupply of housing. The number of Americans wanting to sell their homes far exceeds the number of buyers, leaving some markets with a housing oversupply that will not be absorbed for years. For some homeowners, this isn’t a problem. For those who planned to fund their retirements using the equity they’ve built up in their homes, however, the decline in real estate values can be devastating.

Further complicating the matter for individuals are unanticipated health crises, job losses and weakness in the value of the Social Security trust fund, the three major components on which many Americans have relied to fund their retirement savings.

One potential source of relief may be investment in real estate outside of the United States. Within the last few years, Mexico has become the preferred retirement destination for Americans, replacing Panama. Mexico is closer to the US, and offers a high quality of life. Additionally, the recent history of free trade agreements between the North American countries has solidified Mexico’s status as an emerging industrial country with the ability to generate independent wealth.

For 1.5 million Americans who already own residential real estate in Mexico, the country offers a low cost of living, high quality of life and the opportunity to take advantage of double-digit growth in property values in some areas of the country, like Puerto Vallarta. An investment in Puerto Vallarta real estate could mean that underperforming or undercapitalized retirement savings could receive a much needed boost in value at a time when many Americans need additional savings support.

If you’re interested in learning what the purchase of Puerto Vallarta real estate can do for the value of your retirement savings and assets, please contact a Select Mexico Properties sales representative today.