Casa de la Espiga
We believe it is a good time to buy in San Miguel, as it will continue to be a popular destination for the large number of Baby Boomers on the cusp of retirement. Mexico offers a much less expensive alternative to life In the US, and the weather and abundance of cultural activities in a place such as San Miguel make it yet more attractive.
Jim Cramer of CNBC’s Mad Money, purchased three properties in San Miguel this summer and rates Mexico real estate as a solid investment opportunity. “It’s not such a bad idea to diversify away from stocks”, Cramer said. “Mexico properties have no property taxes, are easy to maintain and there are property managers everywhere,” he said. “I think that out-of-favor real estate in Mexico, that’s easily accessible to Americans, represents a great buy,” Cramer said.
Most buyers of real estate in San Miguel de Allende tend to be North Americans, what happens in the US typically is reflected here. Market prices have been coming down and the demand has slowed considerably since late 2008 but is slowly recovering, as is generally happening in the U.S.
Most property owners here do not have mortgages on their San Miguel homes. Taxes and carrying costs are quite low. Without the pressure of a monthly mortgage payment to meet, owners have generally preferred to wait for a market upturn instead of reducing their price for a faster sale. This year, a number of sellers have concluded that a lower list price is the only way to attract more buyers. We have noticed that homes priced below USD$500k are beginning to move more so than ones that are higher priced.
Another factor that should be mentioned is the large number of wealthy Mexicans who are increasingly viewing San Miguel as an enjoyable and secure place to live. The increasing demand for property on the part of Mexican nationals is ultimately going to stabilize and even increase property values.
Up and coming neighborhoods tend to be the ones on the outskirts of the center of town such as San Antonio, Guadalupe, Independencia, and San Miguel Viejo, to name a few. However, potential buyers need to see these areas for themselves so that they have a feel for what these colonias have to offer and how they fit one’s needs.
For more information and list of properties for sale in San Miguel de Allende, visit www.coatesdolan.com.