What To Know About Owning 2nd and Vacation Homes in San Miguel De Allende, Mexico With Broker Greg Gunter
Many high-demographic families find owning a second home to be an excellent investment, and vacation homes in non-U.S. locations are increasingly popular. While some see it as a great long-term investment considering the economic outlook of the chosen location, others simply feel relieved with the thought of having a dream getaway near a beach, mountains, or other natural or historically significant landscape.
One of the top locations that have attracted foreigners, mainly American retirees and private property investors, is San Miguel De Allende in central Mexico. The UNESCO World Heritage City and Condé Nast Traveler’s #1 City in the World for five different years has become a favorite for tourists and investors due to its historical and natural significance. The neo-gothic churches and flawlessly preserved historical museums and homes in San Miguel are only a few reasons behind its popularity.
Greg Gunter, ranked the #2 Realtor by sales volume in the entire country of Mexico, has sold hundreds of millions of dollars’ worth of luxurious real estate and private properties to foreign and local investors. Gunter claims that Boomers are finding San Miguel De Allende as the perfect getaway for a dream lifestyle. And from Gunter’s helpful insight and 12 years of experience in the real estate market of Mexico, mainly San Miguel, here’s what aspiring vacation homeowners should know:
Having a private residence in another country, preferably where you vacation or love to take holidays, is a great investment at any age—whether mid-career or retired—which Gunter notes is demonstrated by the increasing investments from mid-career home buyers in their 30’s, 40’s and 50’s. With the added benefit of property investment diversification, you get the comfort of taking a vacation whenever you desire without spending time on booking hotels and resorts.
A highly valued perk of owning a second home at your dream getaway location is that you don’t incur hotel/resort booking costs and associated fees. But the biggest advantage, notes Gunter, is the investment Rate of Return, both ROI as an income property while you’re not staying there, as well as the appreciation that Gunter notes can be as high as 18% annually in San Miguel de Allende.
A plethora of property management firms are available in San Miguel de Allende to rent out your home when you’re not in residence. Greg Gunter, a local real estate veteran and architect, claims that a lot of younger families are now investing in the San Miguel housing market for diversified rental income, adding a passive income stream to their mix of investment portfolios.
Gunter also highlights the advantage of investing in San Miguel de Allende because home owners here own their home fee-simple—the deed is in their name—as opposed to the coastal areas of Mexico where buyers never own the home, they are only able to hold it in a trust.
Many real estate pros believe that tourists and expats find the bohemian yet cosmopolitan vibes of San Miguel highly intoxicating. With the rapid influx of foreigners finding safe working space in San Miguel, the demand for luxury corporate estates is also increasing. Gunter suggests that while being a UNESCO World Heritage city ensures that the administration of San Miguel De Allende will preserve the city’s architectural and historical sites, the current real estate market and tourism boost could easily prolong the status of San Miguel De Allende as one of the world’s best investment spots!
