Select Mexico Properties

According to a new study conducted by AARP, 27 percent of respondents over the age of 45 will delay retirement plans due to the faltering economy. A more ominous sign, however, is the news that nearly 25 percent of respondents between the ages of 45 and 64 are already tapping into their 401(k) plans and other investments. Seventeen percent of younger baby boomers – those between the ages of 45 and 54 – are putting off paying bills and scaling back spending on medications to make ends meet.

For some workers, it won’t be possible to delay retirement, either due to employer downsizing or personal health reasons. Tapping retirement savings isn’t the best option, even for boomers in their forties. The economy could take years to recover, during which it will be difficult – if not impossible – to replace those retirement withdrawals. The cumulative effect will be a lower net worth at the time of retirement.

What can workers do right now to improve the worth of their retirement investments? Few investments are performing well right now. It’s easy to see why so many workers believe they will delay retirement. One option that many workers are considering is an investment in Puerto Vallarta luxury properties.

It sounds counter-intuitive, but right now land prices in Puerto Vallarta are low, and won’t be this low again for some time, if ever. Pacific coast building sites are in high demand, and the Mexican government has placed limits on how much coastline can be developed.

At the same time, retirees from all over the world are looking for a place where they can maximize their retirement savings via a low cost of living. They’re not interested in sacrificing their quality of life, so a place like Puerto Vallarta is a big draw.

Residential investors are taking two approaches here: some are building investment properties for immediate sale, while others are building their own retirement homes right now in anticipation of substantial appreciation, and a shortage of Pacific view real estate in the coming years.

Puerto Vallarta luxury homes aren’t experiencing the same market slowdowns that you may be seeing in the US real estate market. This is due, in part, to strong interest in Puerto Vallarta properties by bargain-seeking Europeans who are looking to combat high post-retirement living costs, and who have the advantage of a strong Euro. If you would like to know what the addition of a Puerto Vallarta luxury home can do for your retirement portfolio, please contact a Select Mexico Properties sales representative today.

Photo Credit: Rore D.