Buying a 2nd Home or Vacation Property
You may be looking for a vacation property or considering buying a second home in Mexico. How do you get started when you are not sure you know what you’re doing?
It can be intimidating. And, that intimidation can lead to delay, endless research, and wondering what exactly should you know and what is it you don’t know.
Here at Vivo Resorts Oaxacan Beachfront Living, we asked a senior member of our Mexico real estate team for advice, tips, and a few pointers on this subject.
J.P. Gosselin works as a consultant and advisor for individuals, couples, and families interested in changing lifestyles through a vacation home by the ocean.
Buying a second home in Mexico is a personal passion of his because he’s gone down this road himself. J.P. has development and ownership experience with real estate in North America and especially Mexico. J.P. suggests these 5 questions to ask yourself to get you started.
What do you want from your second home?
Think experiences, because after the novelty phase wears off then it’s not really about the home itself. It’s about the lifestyle that home makes possible.
So you want a clear sense of the vision and purpose for your second home in Mexico. Is it to escape the cold winters and enjoy warm weather year round? Is it a place for family and friends? Will the home serve as a base for activities, adventures and additional travel?
Pay careful attention to what you imagine life will be like in your new home, and the memories you want to create. This will help you determine what’s most important during your search.
How much time are you planning to spend at your second home, and how often?
Projecting the duration of your visits will help determine how much travel time you are willing to take to get to your new home. A cottage may be appealing if weekend getaways are important but you also have to consider how much of your time will be spent on maintenance and upkeep. If your primary home is in a very cold climate, it may be worth the extra travel to be able to spend 3-6 months in a warmer place.
Every situation offers benefits and requires tradeoffs. Think about this in advance when buying a home in Mexico so you can move toward an optimal situation.
Who are you planning on hosting?
Relationships are a significant part of a happy, healthy and well connected life. Having a space that lends itself to the kinds of activities you envision for the relationships you already have means your home won’t just be a “place” but a “hub.” Planning ahead to find a home with extra space gives you the flexibility to invite family and friends on your adventures.
Will your current financial position allow you to invest in a second home in Mexico?
Understanding your finances in advance helps you focus your search and understand your options. Understanding the different finance pathways available to you will also help you consider the best arrangement, whether that is owning with cash outright or leveraging an existing asset.
You may be at a time in your life where it is desirable to downsize, simplify, and extend the lifestyle options available to you.
Perhaps buying a second home in Mexico is an opportunity to purchase with a group of family members or friends so you have the ideal relationship between equity invested, and the experiences you get out.
Another consideration is whether this home has the potential to become a legacy asset that could be passed on through multiple generations of your family.
When will you start looking for your second home?
Information is most useful for filtering out options that clearly are not a fit. Experience is superior to information once you’ve identified locations of interest, because you want to see how an area feels. It’s difficult to do this with facts and figures alone.
A trip is essential, and it’s important to fit one at the right time because you don’t want to spend a few years thinking about an area only to find out it isn’t going to work because it doesn’t feel right. That is why show homes and open houses exist – for people to walk in and see themselves living there.
After asking yourself these 5 questions, compile your answers and share them with your spouse, family, and friends. “Stress testing” your ideas can reveal insights, confirmation, contradictions, and new angles – which can enrich your thought process. Be prepared for some resistance and reaction, though, as there will be people who think any kind of lifestyle investment or direction is “crazy” or “indulgent.”
There may be some who have their own strong vision for how and where you spend your time. It’s important to connect with your own values and vision. If this is important to you, then there’s a smart and generous pathway that will allow you to get there and share the benefits with others. Time to discuss your options, build a plan and embark on the exciting journey – the journey of finding and buying a second home in Mexico.
Contact Vivo Resorts
To learn more about Puerto Escondido in Oaxaca, or about Vivo Resorts, please call at 1-888-236-2876 (toll-free from the USA or Canada).
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There’s also some good information about buying a second home in Mexico in this TransferWise article entitled, Buying Property in Mexico as a Foreigner.