As U.S. and Canadian real estate markets settle (slowly), resort destinations that offer wonderful new opportunities, including retirement living, are being explored.
Increasingly, "Boomers" who have more personal wealth than any previous generation are buying in Mexico. Because the demand comes mainly from these affluent buyers, the market doesn't seem to be affected by what is happening north of the border, at least based on what I observed and heard in another recent visit (my fourth this year) to Puerto Vallarta.
I don't have Canadian stats but according to an estimate by the U.S. State Department as many as one million U.S. citizens already live part-time or full-time in Mexico.
Tens of thousands of real estate purchases made each year in Mexico by Canadians and Americans are normally made in US$ dollars.
Due to the present economic situation and a U.S. government printing money at will, you may have heard a few speculations that that there will be a devaluation of the US$ in the next 18 to 24 months. One prediction for a currency crisis is that the US$ will lose between 60 & 90 percent of its value today.
I realize this is a hypothetical situation but in the case that something serious did happen what would the consequences be for someone purchasing property in Mexico using US$? How do you think the Mexican government would react? Would the US$ be dropped?
People who have just signed contracts (pre-sale) to purchase Mexican real estate in the future would have large US$ deposits being held in trust until the project is built.
What if the developer got cold feet and decided to refund your US$ deposit? If the dollar were to collapse before the building is complete how would the value of your US$ deposit be protected?
If the project is completed before a collapse and you have a US$ mortgage will an owner be laughing (all the way to the bank)?
I'd be interested in hearing other thoughts and economic theories...