The dollar has never been this strong in Mexican history. Most foreigners don’t realise how much this affects their visit whether it’s a vacation, or a business trip.
For both situations I’m going to use the exchange rate of May 2013 vs. today’s rate.
2013: 12.03 MXN 2017: 21.30MXN
People on vacation often tell me: “ well it’s not like I’m going to invest millions of dollars once I’m there”.
And they are right, unless something like “ The Wolf of Wall Street challenge” becomes popular and you have the means to attempt it. But specially now, more than ever, it can change your vacation more than you think, and what a better way to explain it than with an Example:
So you’re flying down to Playa del Carmen with your significant other for a week (If you don’t have one don’t worry, I’m sure you’ll find someone soon!)You arrive to Cancun Airport and your friends that have already been down here (come on, everybody has at least one) warned you not to get on the commercial shuttle and instead go for a local taxi for which the average rate is 800 pesos.
In 2013: 66.5 USD Now: 37.55 USD Savings: 60 USD (you need to get back to the airport too).
Average meal for 2 is 600 MXN (3 a day for 7 days, I’m also not talking about tacos but a nice meal in a nice place, I mean you’re on vacation)
In 2013: 1,047 USD Now: 591 USD Savings: 456 USD
Average hotel rate is 2000 MXN a night (not a hostel but not a Penthouse with a private pool either, for 6 nights).
In 2013: 997.5 USD Now: 563.3 USD Savings: 434 USD.
I could make this longer and get into taxis in town, going out drinking, tours and whatnot but just covering this 3 basic expenses, just by a different exchange rate you just saved 950 USD, so those are the flights from San Francisco, or the flights plus the hotel if you’re coming from Florida.
“ Alex, all the property prices at the Riviera Maya are in dollars, how is this going to change anything for me?”.
It’s very simple:
First, the example above applies as well, since you will be coming down here to inspect your property before you buy it. For example here at Virgin, we won’t sale a property unless the buyers come here, check out the property themselves, and are represented by an attorney.
Then we must not forget that a property’s price is not the only cost.
All closing costs and taxes (that are already immensely inferior than in the USA) are in pesos, which will immediately save you a lot of money.
Also as I mentioned in my “ Best properties with return on your investment” article, living this close to the beautiful Caribbean comes with a price.
Properties require a fair amount of maintenance to remain in good conditions (maintenance fees are also 20-30% cheaper than in most parts of the world), and of course; parts, appliances (AC units, microwaves etc.), paint, materials and of course the labor are in MXN
This exchange rate wont last forever, so get a calculator, a pen and paper, and a nice glass of wine, and see for yourself why now is the time to invest in México.
If you have any Questions don’t hesitate to contact me.
Written by Alex Aquino