Americans Moving to Mexico in Droves
Americans Moving to Mexico in Droves
Michael Zenn - BoomersAbroad.com
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June 29, 2011
Puerto Vallarta, Mexico - Recent reports strongly indicate
that the highly televised Mexican drug war has not stopped most
Americans from traveling or moving South of the Border. In fact,
according to an ABC News report, of the 5.25 million Americans living in
other countries, the vast majority (over 1 million) live in Mexico, and
many more may be on their way. A number of Mexican communities now
virtually look like U.S. suburbs and in some cases American and Canadian
property owners outnumber locals.
No Fear Here
In
areas far from US border towns, such as Puerto Vallarta, Playa del
Carmen and Tulum, Mexico’s drug war is a distant and far away place. In
fact, when surveyed, most Americans living here feel that they are much
safer than in cities like L.A., New York, Chicago, Atlanta or Miami.
Indeed, recent statistics prove them to be right.
According to a
report last year by the LA Times, tourist areas in Mexico are 12 times
safer than Tampa or Honolulu, 17 times safer than Dallas or West Palm
Beach, 26 times safer than Orlando or Houston and a whopping 39 times
safer than the U.S. capital, Washington D.C., and Americans and
Canadians are coming in droves.
Why Here, Why Now?
Americans
and Canadians are sneaking South of the Boarder for all the usual
suspects: tropical weather, pristine property, tree-lined beaches,
white-sand, warm turquoise water, crystalline coastlines, the beckoning
beach lifestyle, and a litany of other adjectives. But perhaps this time
they are descending on magical Mexico for a compelling new impetus
altogether.
When the global recession hit, many retirees and
investors were driven south where life is cheap and the living is easy. A
dollar down here buys roughly 30% more, taxes are negotiable, and the
economy is rebounding at a rapid pace. Personal debt and the credit
crisis are virtually non-existent since Mexicans do not generally use
credit to buy things.
Surging Economy
That could
explain why the Mexican economy is surging (not sputtering) out of the
global recession, recording a 4.3% growth rate in the first quarter of
2010 alone (much faster than the U.S.) And if you had invested $10,000
here in 2000 you would have witnessed a 232% gain in your bank account.
Perhaps
the biggest bonus for retirees and investors in Mexico has been their
opportunistic purchases of homes, condos and real estate property. In
key areas, real estate in Mexico is far outpacing growth in other
countries. For example, Playa del Carmen was named the fastest growing
area in the world just a few years ago and Tulum, just to the south, is
poised to grow even faster in the next 5 years.
Healthcare Heaven
The
other goldmine that Americans and Canadians are getting in Mexico is
the veritable healthcare jackpot they enjoy that includes full medical,
dental and vision coverage for about $600 a year. This government run
healthcare plan (IMSS) was created for Mexican employees but is also
open to legal foreigners. Imagine a healthcare-fantasy world where there
are no deductibles, no co-pays, no limits, no prescriptions to pay for
and even pre-existing conditions are covered after 1-2 years. No small
reason to make your way to Mexico.
There are now over 18,000 major
American companies currently investing and operating in Mexico and it
is estimated that over 1 million Americans are buying, building and or
retiring here. In truth, no one knows exactly how many American or
Canadian retirees, entrepreneurs, and families are now traveling or
making plans to relocate to Mexico.
One thing’s for sure, it’s not a
few, it’s not slowing down, and there seems to be no end in sight. And
for those who might doubt it, just ask the Mexican locals and they will
quickly remind you “they’re moving in all around us!”