Investment options for those running away from cold weather.
One of the most common images in working life paints a photograph of a small yacht sailing in a turquoise blue sea towards a placid sunset. The perfect scene of peace and tranquility that every person wishes for the day when they have fulfilled their work commitment and it is time to retire. So, while he works tirelessly and faces the challenges and frustrations of the “office”, he looks at the small photograph out of the corner of his eye and says to himself “one of these days…”. Now let’s add one more element: it’s snowing outside and the temperature is -25°C.
This scene which is repeated every winter in the main cities of the northern hemisphere of America gives rise to a select group of people who see in the south an escape from the extreme conditions of winter and the possibility of living more comfortably that season of the year. They are the famous “Snowbirds”.
The Snowbird seeks, above all, your comfort and well-being since it has the means to procure it. Sometimes with some ease, sometimes with sacrifices, but always with determination. In this way, a community of temporary migrants is made up that every year seeks warm and pleasant climates to live in while it snows at home.
The main destinations for the Snowbirds are mainly the North American states of California, Arizona, and, of course, Florida, which is a paradise for those fleeing the cold, mainly from cities like New York, Chicago, or Boston in the United States or Toronto, Quebec or Montreal in Canada to give just a few examples.
However, different factors are beginning to have a decisive influence on Snowbirds seeking destinations even further south, such as Mexico or the Caribbean islands. Some of these factors are:
- The COVID pandemic opened up the possibility for the world to work remotely, thereby providing the possibility of literally choosing where to work. The massive migration to states like Florida brought an excess demand for housing space that increased the cost of acquiring property by up to 38%.
- The average cost of foreign real estate investors has increased by 31% to over $375,000, fostering an unprecedented appreciation of properties in states with milder climates.
- The high demand for housing space has increased the cost of average rent by 28% in these states.
- The strength of the US dollar as a result of the increase in interest rates caused by the pandemic puts other currencies such as the Canadian dollar at a disadvantage. (Canada is the country with the highest volume of Snowbirds in the world)
- Given the loss of competitiveness of the Canadian dollar against the US dollar, Mexico becomes extremely attractive for those who want to take full advantage of the exchange advantage.
- Mexico offers a much more attractive cost of living. Services such as water, electricity, and telephony are significantly cheaper, as well as aspects such as medical care have very low costs compared to their countries of origin.
- Likewise, the real estate market is in clear growth and with it, the offer is wide and very varied.
Now, we return to the image we talked about at the beginning of our article, the sailboat in a calm sea of turquoise blue water sailing towards the sunset. Mexico has many wonderful destinations and with more than 11,000 kilometers of coastline we can safely say that it has “a lot of beaches”. But, turquoise sea? Only in the Caribbean!
The Riviera Maya
Due to the aforementioned factors, more and more Snowbirds are choosing to come and live in this corner of paradise. Whether for three or up to six months (a special immigration permit is required to stay more than 6 months in Mexico) many people come fleeing the cold in search not only of warm weather but also of the warmth of those who receive them year after year. with the cordiality and affection characteristic of the Riviera Maya.
Culture, natural beauties, gastronomy, and traditions attract millions of tourists each year to the region, many of whom return home considering the option of spending a long season in the destination while the climate at home is extreme. For them, the options are two. One is to rent a property year after year and the other is to acquire a property as a second residence and use it during the winter while during the summer months, it can be rented and generate extra income. Either of the two options is valid, however, the second generates profits. And who wouldn’t want a little more income?
We have left a third option for the last. And it is simply leaving everything behind and moving to paradise full-time and joining the growing community of ex-pats who have made the Riviera Maya their home. Because as they say “in the sea life is tastier”
If you want to know more about options in investment ideas for Snowbirds in the Riviera Maya, we invite you to contact us. At Select Riviera Maya Real Estate we have an important inventory of properties that suit your needs, tastes, and budget.