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Owning Retirement Property In Mexico How To Finance The Dream

Just a few years ago, there was no solution for financing property in Mexico. Mexican banks don't offer the kind of generous home loans that we enjoy in the United States. On the other hand, US lenders were hesitant to write loans for property located outside of the country that they had very little control over. However, with the huge surge of more adventurous retiring Baby Boomers and a US housing market that seems to have reached a plateau, people are finding more and more ways to buy investment property in Mexico.

The most popular way to purchase property in Mexico is to pay in cash. The cost of property is so much less than here in the United States that many homeowners can use a second mortgage or the profit from an investment sale and pay for a property in Mexico outright. The gem of the Mexican real estate market today is the Costa Maya, a 57 mile strip of white sandy beachfront located along the Caribbean Sea where entire lots are selling for as little as $60,000. Paying in cash from the sale of investments is the least complicated way to buy property in Mexico and the most affordable.

Interest rates on international loans are, not surprisingly, higher than a standard property loan. Additionally, there are fewer restrictions. Since the concept of an international property loan in the US is still in its infancy, lenders have a tendency to be ultra-cautious. However, for those who need to or prefer to seek out an international property loan, the choice is a viable solution. Buying property in Mexico today can be an extremely lucrative investment.

Those who invested in Cancun in its "early days" just 30 or so years ago have made incredible returns on their investment. The once quaint fishing village now has become one of the most popular tourist destinations and retirement hotspots, with property values in excess of $1 million. With an international property loan, expect to put down at least 30% and a repayment term of 20 years.

Normally, you'll have to show that the property is a second home or vacation home, and will not be your primary residence. Lenders want to make sure that you still have ties to the US and so will still have an incentive to pay back the loan. Another trend is international financing companies located in Mexico, that are partnered with US companies, looking to tap into the fast growing American interest in investment property in Mexico.

Companies such as Houston based ConfiCasa Riviera Maya advertise cross-border loans with current rates between 7.99% and 11.98% depending on credit score, the amount borrowed, and the length of repayment. ConfiCasa offers interest rates as low as $50,000 as well as development loans, ideal for investors looking to get in on blossoming coastal development in its infancy. Lack of financing is no longer a reason to put off buying investment property in Mexico. Of course there will be more work involved with buying international property, but with the housing market leveling off and predicted to drop, it's time to look into real estate investment opportunities with more potential for big returns.

Mexico and its booming real estate market is on the radar for serious real estate investors-the good news is that now just about anyone can get in early on the opportunity.

Author is a freelance copywriter. For more information on retirement property in Mexico, visit

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