Buying a home is one of the most substantial purchases most of us will ever make in a lifetime. From the sizable down-payment (often up to 20% of the property value) to paying off your mortgage loan with interest, the repayments can take many years. It may seem like a daunting task in the beginning. However, once you are on the property ladder, you have the potential to unlock more cash if your home increases in value.
Of course, house prices can fluctuate, and the property market has good years and bad. In times of recession, house prices usually drop due to oversaturation in the marketplace. At the moment, the opposite is true as demand outstrips supply, thus keeping house prices high.
For investors, it is essential to study real estate projections and future predictions of recession to see if the months ahead will become a buyer’s or seller’s market.
So what does the future hold for real estate in 2022?
Despite some commentators predicting a housing crash, many forecasters speculate that the market will remain buoyant with a slight leveling off or slowing down compared to 2021. A published report by Zillow predicts that house prices in the United States will increase by 11% percent in 2022. Canadian forecasts are slightly more conservative but still expected to rise by around 5%-9%.
And what of Mexico? With many people still looking to buy a second home or retire south of the Rio Grande, what are the prospects for real estate investment in Mexico for the coming year?
Despite the pandemic, foreign investment in Mexico’s real estate market is still robust, with many American and Canadian nationals looking to either relocate or buy second homes in Latin America’s second-largest economy. According to Forbes magazine, almost 1 million Americans live in Mexico, with close to half a million owning homes.
While the rest of the world locked down during Covid19, Mexico remained largely open, the effects on the housing market being positive as migration continued. Real estate figures for 2022 are encouraging and expected to improve further.
Property yields and returns on capital gains aside, Mexico is also attractive for many other reasons, including:
As a destination for vacationers, Mexico makes the top ten of most visited countries, hosting 45 million tourists every year. Many of them choose to rent homes or villas during their stay, further adding to the buoyancy of the real estate market.
With an optimistic outlook for 2022, buying property is still a sound investment with excellent returns on your capital.
For a comprehensive guide to real estate in Puerto Vallarta and the Riviera Nayarit, contact Puerto Vallarta Villas and their professional team of real estate agents who will advise you on every aspect of the property market in Mexico. Information is available by clicking on the following link, email, or telephone contact.
+52 (322) 221 5495 – Mexico Office Ext. 14
415 704 0455 – From US or Canada
888-444-7245 – Toll-Free
More info HERE.