Select Mexico Properties

A recent poll showed that 20 percent of respondents believed they would fund or partially fund their retirement using home equity. This is an unstable strategy in light of the current conditions in the US real estate market.

First, home equity is unlikely to provide a significant amount of capital for retirement. After leaving the workforce at age 65, the average retired man can expect to live an additional thirteen years. The average retired woman can expect to live an additional 17. In the absence of major health issues, many retirees live twenty or more years after leaving the workforce. The amount of money needed for a comfortable retirement in the United States easily stretches into the hundreds of thousands of dollars, well beyond what home equity offers. In some cases, people who have amassed more than one million dollars are still concerned that they will outlive their retirement savings.

Second, the US real estate market is in a sharp decline. Some areas – primarily those popular with retirees – have dropped 25% or more in the past year alone. Experts warn that the declines will continue, but are optimistic that the market will begin to rebound within a year. In some areas, realtors are currently reporting a 4-5 year supply of homes for sale, based on the average sales volume for the area. Senior workers who plan to sell their homes may have to wait months or years to find a buyer, sell the home for significantly less than its value; or sell it for less than what is owed on the mortgage.

Third, relying on a single investment to fund retirement is dangerous. Real estate is typically a good investment, as long as you’re investing in the right market. Clearly, the US market isn’t presenting the right investment opportunities right now. In fact, many European real estate markets are doing poorly, too. Latin American real estate is a bright spot in the world market right now. Emerging economies in this part of the world make real estate purchases here attractive to investors.

Puerto Vallarta has one of the hottest real estate markets in Mexico right now. Property is appreciating here at a rate of about 10 percent per year. If your real estate holdings aren’t producing this kind of growth, you may want to take real estate billionaire Sam Zell’s advice and look south of the border for real investment values.

Select Mexico Properties is currently offering a limited number of Pacific coast parcels that are suitable for luxury residential development. The cost of land and construction here are comparatively low, and the return will be high. Please take a moment to look through the parcels we’re offering, then contact a Select Mexico Properties sales representative and let us show you how to use real estate investments to your best advantage.

Photo Credit: Billy Alexander