Playa Del Carmen, Mexico (PressExposure) December 18, 2009 -- Canadians browsing Mexico MLS real estate listings may not see a large difference in listed prices compared to a year ago, but the Canadian dollar has been holding a fairly steady, and strong exchange rate to the American dollar, giving Canadians more international buying power than they have typically had for the past few years. This factor makes Mexico real estate, especially that found in top international choices such as properties found in Playa del Carmen MLS listings or Cancun MLS listings, an attractive option in terms of property price, cost of life, and lifestyle; ideal Mexico real estate in these beachfront destinations can be found for retirement, a winter home, or simply to relocate the family to a warmer climate, with a more affordable cost of life.
While only about 6 years ago, the Canadian dollar had been sitting near a low of 64 cents U.S. for a considerable time, recently the dollar has made its way up to about 95 cents U.S., and has been fairly constant since early October. Even a year ago, the dollar was trading at only 80 cents. This rise in value means that Canadians can enjoy life on Cancun or Playa del Carmen's beaches - considered to be some of the most beautiful beaches in the world - for a considerably lower price than before.
Mexico beachfront properties in Playa del Carmen and Cancun for the international market are sold in U.S. dollars. 6 years ago, a property worth $400,000 U.S. in Mexico would have cost a Canadian about $615,000 CAD. Now that same property would cost about $420,000 CAD; this is a saving of almost $200,000. These funds are considerable, and could be used for many purposes, including further investment, lifestyle, or increased retirement savings. An average home or condo in Toronto, for example, costs about this amount; for the price of an average unit there, Cancun or Playa del Carmen now offer Canadian buyers beachfront luxury, in a warm climate, that a few years ago would have had a considerable extra cost to it.
Just as the Canadian dollar has risen in strength compared to the U.S. dollar, it has also risen considerably against the Mexican peso. In the middle of this decade, the Canadian dollar had an exchange rate of 8 pesos; the rate is now 12. This means that the cost of living in Playa del Carmen or Cancun is also over 30% less. Add this to the fact that the cost goods and services (including day to day items, groceries, restaurants, travel and many other items) is already less in Mexico, this means that living in Mexico is now a very attractive option for Canadians, financially speaking.
In terms of lifestyle, Playa del Carmen and Cancun are not only affordable, but include a broad range of modern services - such as international stores and high tech hospitals - and activities. Both of these locations include a large community of Americans, Canadians and Europeans, meaning Canadian property buyers can enjoy having neighbours from their home country and many other countries as well. The current high value of the Canadian dollar makes these benefits more accessible and attractive for Canadians planning to buy a second property, or relocate to a warmer climate.