Invest in Global Real Estate
Think of how the world has changed in the last year. Times are volatile and we are in the middle of a crisis. There is no certainty with retirement.
And… that includes social security, 401K’s, pensions, and the stock market. But there is one tangible asset that can provide security, but only if purchased in the right place at the right time. So let’s dive into how global real estate investing can supplement your social security income after you know some basics about social security benefits.
Social Security Benefits
When social security was created for the American people, it was never meant to replace your yearly work income. And it was never considered a retirement plan. It averages 40% of a beneficiary’s pre-retirement earnings.
According to the U.S. Social Security Department, the U.S. is on track to deliver timely payouts until 2037 when the trust reserves are projected to become exhausted.
So obviously adjustments and new laws will change prior to 2037 to keep paying out to the American people. One misconception is that your benefit is based on how much you paid into the system.
But, in reality, it’s strictly based on how much money you earned your entire working life.
Today, the retirement age is set at 66, although people can and do take payouts early. Over the next 5 years, the retirement age will increase by two months at a time and settle at 67 years old to receive your full 100% payout.
So those born after 1960 will have to wait until they are 67 for a 100% payout from the system.
Here’s the thing,
According to U.S. News & World Report, the average social security benefit to Americans was $1503 per month in January 2020. The maximum benefit is $3011 in 2020. To meet that maximum a worker would need to earn over $137,700 for a 35-year period to qualify for the $3000 a month.
So what if I told you that you could supplement your social security payment and live off the average social security payment in Mexico while making a nice passive income on the side?
All you have to do is…invest in a property in a hot destination that appreciates over time and people want to visit.
That leads us to the benefits of investing in Real Estate, specifically Tulum and Playa del Carmen real estate.
Real Estate Investing Benefits
When you invest in global real estate you reduce any national crisis in your current home country. Things could be falling apart at home, but you could benefit from the real estate market in another country.
Of course when investing you want to consider a destination that’s increased in value over a long period of time. Mexico, specifically Quintana Roo has had immense growth and continues to check those boxes.
- Taxes are low. Expect to pay less than $300 a year for taxes compared to $2375 per year in the U.S.
- The infrastructure in Mexico is improving creating that perfect scenario for work at home and digital nomad lifestyles.
- Not only can you own property overseas, but you can always live in them and vacation to get away.
Let’s take an example of owning a condo that you could rent out in the Mexican Caribbean.
If you rented out your condo 80% of the time at a low cost of $120 per night, then that would equal $34,560 for the year or $2880 per month. But in reality many condos are going for a lot more nightly.
And…places are renting between 85%-92% and more during peak season.
When you invest in SIMCA Real Estate properties you have access to luxurious amenities and hotel residential projects that provide a guaranteed income.
In addition to making this passive income, if you purchase during pre-construction in Tulum or Playa del Carmen you can earn up to 28% appreciation even before receiving the keys to your condo.
So it’s a win win… You can live off the social security you receive in the U.S. and make passive money from the rental income off your condo. If you’d like to schedule a discovery call to run by any numbers or find out some of the projects we are working on, we’d love to talk to you.