Many US workers include the value of their home among the assets they plan to use to finance their retirement. As the Baby Boomers approach retirement, some are questioning whether their property values will be enough to carry them through retirement. Others are delaying their retirement plans in the hope that the real estate values will rebound.

More optimistic investors look at this downturn as a time to invest in real estate, primarily because they can buy properties at a much lower cost. They’re banking on an upswing in the market to provide a solid ROI. Experts are divided on when that upswing will come and how much it will be worth, with some believing that real estate will be back on its feet within 12-18 months, and others believing that the rebound could take as long as a decade.

Investing in real estate isn’t a bad idea. In fact, it’s one of the time-honored strategies for realizing steady gains. The trick to making money in real estate is buying the right property at the right time for the right price. In many “luxury” markets in the US, homeowners have seen valuation declines of 25% or more. While this might indicate a true “bargain” for the speculative investor, it more likely means that the property was overvalued in the first place and the decline in value is really a correction.

A better strategy than buying high-value property in a declining market is to buy lower-priced property with a high return potential in a growing market. Worldwide, real estate investors agree that the growing markets are found in emerging countries. Mexico is one such country, and real estate values here have been climbing steadily for the past decade. The price of property in highly attractive destinations like Puerto Vallarta is still comparatively low. Puerto Vallarta is located on Mexico’s Pacific coast and features a tropical climate akin to Hawaii’s.

Real estate investors are flocking to places like Puerto Vallarta to take advantage of the growth in luxury real estate. The first of the Baby Boomers are ready to retire and the demand for luxury real estate here in Puerto Vallarta is expected to skyrocket. That demand is also expected to continue for years, providing an outstanding opportunity for real estate investors to take advantage of the low cost of living, high quality of life, unbeatable weather and a pleasant, relaxing atmosphere.

Photo Credit: Jessica Bowden