Renting vs. Buying Property in Mexico

By Patrick Connelly
latinworld.com


It is, ultimately, the point where the process of living in Mexico diverges into two distinct paths. The question of whether to rent or to buy – to purchase that clifftop villa on the Pacific or just rent a nice place in the nearby town – plagues many a prospective buyer in the U.S. and Canada. The decision has more variables in it than a college calculus class, but here are a few things to take into consideration if you are having the same quandary.

1. Renting keeps your options open

If you are like me and have a total fear of commitment (relationships, locations, etc. etc.) then renting is perfect for you. Well, that and if you are just not totally sure on living abroad for long periods of time or permanently, or don’t fancy investing money in a property in another country. Renting can be a great option for the certain type of person, especially those new to Mexico. Buying or building a house ties you down to that property. Renting does not. Simple as that. If you find out that you hate Mexico and want nothing more than to stay in the U.S., it is much easier to cancel or see out a lease than it is to sell a home. And if you want to travel around Mexico or Latin America for an extended period of time, it is usually easy to sublet your rented property to recoup some of the losses.

2. Buying a house is an investment

While the global recession has driven down home prices in Mexico in recent months, owning a home south of the border is still a great long term investment. The Mexican economy hasn’t been hit as hard as the U.S. has and the situation north of the border will recover in time. In fact, many real estate professionals are predicting a strong buyer’s market in the coming months in hotspots like Puerto Vallarta and Cancun. With a bit of shrewd cunning great deals can be found these days and when the markets bounce back – and they will – owning a property in Mexico suddenly becomes a very, very valuable commodity.

3. There is far less of a financial investment when renting

Well, duh. Financially speaking, it is definitely the “safer” of the two options. While you certainly get more bang for your buck in Mexico than you do in the U.S., buying a home is still a major financial investment.

4. YOU own the house and deal with no one else

Anyone that has dealt with landlords knows it can be a real headache. Its no different in Mexico. The fact that you do not own your rental property and have to answer to a higher up may lead to squabbles over anything from redecorating to rent to leases. Choosing a good rental management company can prevent conflict if you want to rent.

On the other hand, when you own a house, you decide what goes in it, what additions will be put on, etc. etc. You are your landlord.

5. More choices when buying

Odds are, you will find a property for sale in Mexico that matches your desires before a rental. There are just more options out there to choose from. Rentals are only ultra popular in certain areas frequented by vacationing tourists, while good homes for sale exist everywhere.

The choice ultimately comes down to you. Owning a home in Mexico can be the experience of a lifetime, but it isn’t for everyone. My advice would be to rent a house for a few months in your desired location….get to know the culture, climate, and lifestyle. If you fall in love with it, jump in. If you hate it, simply back out or try a different region of Mexico. This is by far the smartest approach to take – many a gringo have made impulse buys after a two week vacation in Cancun or Cabos and ended up with a house they later realize they don’t want.