There are both potential advantages and disadvantages to owning a home in Mexico. Let's discuss them all and then reveal the *biggest* danger of owning a home in Mexico for U.S. taxpayers that are actively earning income remotely.
Possible Advantages of Buying:
• A devaluation of the currency in your country of origin that does not result in a devaluation of the Mexican peso could make your purchase of real estate in Mexico look like an excellent investment.
• If property values increase dramatically during your ownership of the property, then you may be able to profit from your ownership.
• You avoid having a landlord (who may have wanted to increase the rent excessively, terminate the lease, refuse to make repairs and upgrades or ask for a guarantor or guaranty, see discussion on guarantors and guaranties below).
• You may be able to renovate and improve the property so that it better suits your needs and then possibly recoup some or all of the costs of any repairs and/or upgrades you make during your stay upon the sale of the property.
• Even if housing prices go up in your neighborhood or the general area in which your property is located, your housing costs might remain relatively constant, and that could save you money over the long run.
• You might be able to rent out your home (all or part of it) on a short-term or long-term basis.
• A big increase in the human lifespan due to advances in medicine may make purchasing a home less expensive than renting for the rest of your life.
But there several dangers of owning a home … click here to read more on our Substack.