By David Simmonds
I’m starting to see a little softening of prices in the areas where most Americans want to buy in Mexico. It is nowhere near a collapse, which I don’t expect to happen. But as prices (and therefore available equity) have ratcheted back in the U.S., Mexico prices are seeing some affect.
The hot corridor from Cancun to Playa del Carmen is just about sold out on beach-front lots. Just off the beach, a short walk, you can get a nice, modern home for $200,000 – $300,000. But south of there, all the way to Belize, still has some good possibilities. Condos can be purchased in the $100,000 – $200,000 range, and beachfront houses around $500,000. Puerto Morelos currently has a nice buildable beach-front lot listed at $350,000. Construction costs vary, depending on the sobriety of the contractor and the desired amenities, but I have heard that $55.00 a square foot is still possible if the stars line up correctly.
There are many properties for sale in this area, which usually means a buyer’s market. Now is a good time to start kicking some tires and find a seller that needs to sell. But remember, Mexico has around 6,000 miles of beaches, and the Maya Riviera corridor values have skyrocketed in recent years. For my money, I like the next hot place.