Mexico Real Estate – Excellent Retirement Option for Strong Canadian Dollar

by Thomas Lloyd

Canadians who are thinking of retiring anytime in the near future have a unique option in the Mexico Real Estate market. While recent studies have shown that a good retirement can be planned within a very wide range of budgets, the facts that Mexico Real Estate available for excellent prices and that the cost of living in Mexico is relatively low make this point even more true for soon-to-be retired Canadians planning to make their retirement savings go as far as possible. These benefits have also been considerably strengthened recently by the considerable strength the Canadian dollar has gained recently, both against the American dollar and the Mexican peso, and also by a very high point in competition and sales prices in the real estate market in Canada.


Research in Canada has shown that Canadians can afford to retire on a very wide variety of budgets. One story tells how a woman complained that she only had $2 million saved, and it wasn't enough for her retirement; the woman beside her said she already had $200,000 and it was more than enough. The point is that each woman was able to live according her own needs. Whatever budget you're looking at for your retirement, property in Mexico offers a way to make this budget go further.

One of the main reasons why a budget will go further in Mexico now is the strength of the Canadian dollar. First of all, let's consider how the Canadian dollar has behaved recently. Only earlier this decade the dollar was down at a low of about 65 cents US. Little by little this began to rise, with a few ups and downs, and by December 2008, the Canadian dollar was hovering around 80 cents US. Starting around April this year, Canada's dollar jumped to above 90 cents in about to month, and then over the rest of the year it has risen to about 95 cents, as the chart below shows.

What does this mean for Canadians hoping to buy a Mexico property for their retirement? In most of the beachfront destinations, and other attractive retirement locations, properties are sold in American dollars, since they are geared towards the international market. A search in the Mexico MLS listings will show that retirement-friendly properties in international communities near the beachfront, or on a beautiful lake location, can be found for as low as $75,000 US, heading up to about $2,000,000 US.

Let's take a lower-middle price of about $400,000. If your budget 1 year ago allowed you to buy a beautiful, beachfront condo for $400,000 US with a pool, and many other luxuries, the strong Canadian dollar would now allow you close to $500,000, opening up many more options, or stepping up the luxury one notch. Or, on the other hand, you could buy that same property, which last year would have cost you $500,000 Canadian (with an 80 cent exchange rate), for about $416,000 Canadian, leaving you almost $85,000 more in savings for your retirement.

Also, let's consider what you'll get for that $400,000. Currently, in Toronto, which is seeing a condo boom, the large number of young buyers – who are still willing to put up with Canadian winters for a while – have pushed the prices up, and average unit runs just under $425,000. We must remember, these are just average prices; while a unit for about this price is definitely pleasant, in a Mexico beachfront location, a condo a this price can get you not only the same or higher level of style and comfort, but also many benefits such as pool, warm weather all year round, and, most importantly, a condo building with a beautiful ocean view, only steps away from soft, white beaches, that stretch out for miles on end, spotted with palm trees. And if you imagine a house for your retirement, large, beautiful homes of a variety of styles are available in key retirement destinations such La Paz, Playa del Carmen, Lake Chapala and many other for this price and less. Again, who can argue with warm weather, an ocean view, and a short walk to the beach? Of course, this $400,000 was an example, and these savings and benefits are true for any budget or lifestyle choice, whether lower or higher.

Remember those $85,000 you saved by buying a Mexico property with the strong Canadian dollar? They will go a long way in a Mexico Retirement. While the Canadian dollar has gained considerable strength on the American dollar, the Mexican peso has hovered just around 13 pesos per US dollar. This means that the Canadian dollar will also go a lot further here to cover day to day expenses and purchases. Large Mexican chains, and international stores such as Walmart offer many of the same products as we can find back home, but at Mexican prices. In general, groceries and many other products are already available at relatively lower prices in Mexico, the current strength of Canada's dollar will make this even more significant; lower cost of living can help to make your retirement budget more realistic.