More pesos for your dollar!
In the last three months, the Mexican Peso has lost 37% of its value against the U.S. Dollar.
Let me rephrase that – in the last three months the dollar gets you 37% more pesos.
That means, if you have dollars, everything costs 37% less in Mexico. Free money!
Seems it has to do with the decline in the price of oil, which provides nearly 40% of the Mexican government’s revenue.
In addition, the US recession has reduced the demand for Mexican products. Even with the devalued peso making Mexican exports relatively cheaper, the U.S. consumer isn’t going to be buying like they have in the past. In the states the binge is pretty much over.
This slide of the peso opens up a lot of opportunities for Americans. First off, it makes your holiday in Mexico a good deal cheaper.
Secondly, of you are looking for a new home, Mexico can greatly reduce your cost of living. One word of caution, however, is that, wherever you go, always pay in pesos. If you sign up for tour with a U.S. operator, you will be paying in dollars – and the tour operator will be reaping the benefit of the devalued peso.
Let’s say you rent a house in Mexico. A typical price for three to four bedrooms, two bathrooms, and a two car garage would be 5,500 pesos a month. Several month’s ago, you would have been paying the equivalent $550 a month; today you are only paying the equivalent of $346 a month.
If you want a great vacation, or, more importantly, if you are out of your house, and living in a trailer, or with relatives, or worse, Mexico is a great bargain. In the U.S., you couldn’t rent a decent room for $346 a month.
But isn’t Mexico dangerous? Maybe we should ask, isn’t the U.S. dangerous? Contrary to what the media would have us believe, Mexico is actually safer than the U.S. According to UN statistics, you’re 3 times more likely to be a victim of crime in the U.S. than you are in Mexico.
According to FBI statistics the murder rate (per 100,000 people) in Baltimore is 43.3; in Washington DC it is 29.1; and in Detroit 47.3.
In Mexico the murder rate is less than a third of those figures – it is only about 13 per 100,000 people.
Save your money…and your life.
Come on down!