Home Investing in Mexico Beat the Exchange: Mexican Coastal Real Estate Savings

Beat the Exchange: Mexican Coastal Real Estate Savings

by Brent May

If you’re an American or Canadian investor with an eye for lucrative opportunities, pay close attention – the current economic climate has paved the way for some truly remarkable deals on Mexican coastal real estate.

Over the past couple weeks, the Mexican peso has experienced a significant decline against both the US dollar and the Canadian dollar. Two weeks ago, the exchange rates stood at 16.5 MXN per USD and 12.2 MXN per CAD. However, the tide has shifted to 18.43 MXN per USD and 13.39 MXN per CAD.

This fluctuation in the peso’s value has created a window of opportunity for foreign buyers to maximize their investment in Mexican coastal real estate priced in pesos. Let’s break down the potential savings.

 

 

Weak Peso Creates Unbeatable Opportunities

In the first example below, a property listed at 3,300,000 MXN two weeks ago would have cost:

  • $200,000 USD (at 16.5 MXN/USD exchange rate)
  • $270,492 CAD (at 12.2 MXN/CAD exchange rate)

Today, with the peso trading at 18.43 MXN/USD and 13.39 MXN/CAD, that same 3,300,000 MXN property now costs:

  • $179,055 USD, a savings of $20,945 USD
  • $246,452 CAD, a savings of $24,040 CAD

Property listed in the $200,000 USD price point:

Property Listed Price 2 Weeks Ago Today Savings
 

3,300,000 MXN

 

$200,000 USD
(16.5 MXN/USD) 
$179,055 USD

(18.43 MXN/USD)

 

$20,945 USD

 

$270,492 CAD
(12.2 MXN/CAD) 
$246,452 CAD

(13.39 MXN/CAD)

 

$24,040 CAD

 

 

Property listed in the $500,000 USD price point:

Property Listed Price 2 Weeks Ago Today Savings
8,250,000 MXN

 

$500,000 USD

(16.5 MXN/USD)

 

$447,639 USD

(18.43 MXN/USD)

 

$52,361 USD

 

$676,230 CAD

(12.2 MXN/CAD)

 

$616,131 CAD

(13.39 MXN/CAD)

 

$60,099 CAD

 

 

Property listed in the $1,000,000 USD price point:

Property Listed Price 2 Weeks Ago Today Savings
16,500,000 MXN

 

$1,000,000 USD

(16.5 MXN/USD)

 

$895,279 USD

(18.43 MXN/USD)

 

$104,721 USD

 

$1,352,459 CAD

(12.2 MXN/CAD)

 

$1,232,263 CAD (13.39 MXN/CAD)

 

$120,196 CAD

 

 

These tables clearly illustrate how the weakened Mexican peso leads to significant cost savings for both USD and CAD buyers when purchasing properties priced in pesos compared to just two weeks ago.

The potential savings are substantial, especially for higher-priced properties. This presents a remarkable opportunity for savvy investors to secure their dream property along Mexico’s stunning coastlines at a significant discount.

 

Canadian Interest Rates Cut!

But the benefits don’t stop there! The Bank of Canada recently announced a 0.25% cut in their key interest rate, bringing it down to 4.75%. This is the first rate cut since the start of the pandemic, and it’s a clear signal that the central bank is taking steps to cool down the overheated housing market in Canada.

For our Canadian friends, this rate cut presents an incredible opportunity to tap into the equity of your existing property and invest those funds in Mexican coastal real estate at a substantial discount. Combining the weak peso with low interest rates, you can stretch your investment dollars even further.

With the Mexican peso’s current weakness and the favorable interest rate environment in Canada, the stars have aligned for foreign investors seeking to diversify their portfolios with Mexican coastal real estate. Don’t let this golden opportunity pass you by. Contact our team today, and let us guide you through the process of securing your dream property at an unbeatable value.

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