In Mexico’s central highlands, picture-perfect San Miguel de Allende has become gringo central for retirees. Tens of thousands of Norte Americanos make this their home at least part of the year. This includes more than a few millionaires who have diversified part of their fortune in a place where the weather is fine all year and excellent health care is affordable.
Being that this real estate market is so tied to what’s happening in the U.S., however, naturally things took a dive when the real estate bubble burst in the land where most of that investment was coming from. Fewer buyers started showing up awash in cash and those who had bought in Mexico with home equity money from a house back home found it tougher to unload their $million+ Mexican showpiece.
Things are starting to pick back up again as the U.S. stock market rises again and the recession is winding down. Does that make this the perfect time to buy? If you are in it for the long haul, yes. The agents I talked to and saw houses with said while prices are not ticking up yet, they seem to have hit a bottom. That bottom is 20-40% from the peak three years ago, so you may not be able to expect a quick flip, but you should have solid appreciation over time.
For what you can expect to get for your money in this popular city, see our new real estate article, San Miguel de Allende for Millionaires.