What Can Rich Mexicans at Lake Chapala Teach You about Preserving Your Wealth?

What Can Rich Mexicans at Lake Chapala Teach You about Preserving Your Wealth?

Many of our www.ChapalaClub.com members and readers have accumulated significant wealth. Many others who may not think of themselves as wealthy, have none the less managed to build up a nice investment portfolio for their retirement years.

A significant number of these folks have begun to realize that it’s a good idea to consider buying at least a starter home right here at Lake Chapala Ajijic Mexico.

In my opinion these Baby Boomer types are wise beyond their years. They realize that right now there’s a significant buying opportunity here with prices lower than in many years.

I’ve been fortunate to help some of these younger (a relative term I admit. I’m 68 and anyone under 50 is young to me.) couples to find, if not their forever dream home, at least  a home to rent for income, to visit on vacation and to what raise in value and protect at least a portion of their assets.

Lake Chapala Ajijic Mexico Is More Affordable Than It’s Been In Years

The real estate market in here in Mexico, like almost everywhere on the planet now, is soft, and prices can be temptingly low.

I know of a very nice, large 2 bedroom 2 bath town home/condo in my neighborhood (a suburb 5 minutes North of Chapala).

It’s just 20 minutes from the international airport, is surround by beautiful exotic flowers and trees and comes with a large common pool, gorgeous gardens and grounds keepers ( who also care for each free standing condo’s private yard) for $90 USD per month.

It is offered for less than $95,000 USD.

A few years ago the home next door to this one sold for $148,000 USD.

This home is not a time share, not a new project that may or may not be finished, and it’s certainly not the only bargain in the area, but it gives you an idea of the savings available now.

I forget just what sage said it now, but the phrase, “Buy when the blood is running in the street.”

Comes to mind.

Well, that’s  a dramatic statement, but at least metaphorically the  economic blood is running in the streets in a large portion of the world. Greece comes to mind.

OK, so your buying power in Mexico at Lake Chapala Ajijic  is significantly higher than it was  just a few years ago. Just how long will that remain so?  Well, I’m not an economist, a currency trader, or an investment banker…. But, I’ll tell you this:

A lot of very smart people are hedging their bet so to speak. They fear a greatly inflated or devalued dollar and are beginning to diversify their assets out of dollars and put some of their nest egg in international real estate.

And especially if you’re an American or Canadian , your neighbor to the south, Mexico seems to me to be the perfect place to do this.

Other considerations: You probably know that if you’re an American you must report any  financial accounts you hold outside the United States with a value of more than US$10,000.

But did you know that as an American  owning foreign real estate is only one of two investments you can own without triggering a reporting requirement to Uncle Sam (the other is gold).

My understanding is that currently, IRS cannot seize foreign owned real estate.

Nothing in this article is advocating breaking the law in any shape, form or fashion, but just suggesting that you consider organizing your affairs in a way that’s best for you to protect your hard earned assets.

In my opinion, holding some of your wealth in Mexican real estate is an excellent way to
do that.  I’m taking my own advice so you know I truly believe it.

As the illustration of the condo currently offered above suggests …You don’t have to be super rich to take up the idea of buying real estate overseas to protect your wealth.

Oh, the headline on this article, “What Can Rich Mexicans Teach You about Preserving Your Wealth?” is simple.

Many well to do Mexicans here have long realized a good strategy for preserved their own wealth is to buy homes and land here at Lake Chapala Ajijic Mexico. You see Mexico has devalued the peso various times over its history.

The last time was in 1994 when the peso lost approximately 40% of its value. Sure, you still had the same number of pesos in the bank as before the devaluation, they just bought 40% less… but real estate did not lose value.

So, smart Mexican people protect themselves again devaluation/inflation  of the peso by diversifying into real estate right here at Lake Chapala Ajijic Mexico… and then they come to visit their “money” on weekends and Festival  days.

Give  the information in this article some serious thought… then

E Mail me for more information: Sid @ChapalaClub.com