Bargains Beyond the Border - Get Past the Blood and Drugs: Mexico's Lower Cost of Living Can Avert a Tearful Retirement. Tom MD Kelly

Create a good rental property and rent it for the next 5, 10 or 15 years. The sooner you start the better. I would not be where I am today had I not bought my first home in Mexico 11 years ago. Had I only bought 30 years ago . . .”

      According to the most recent study by the National Association of Realtors, consumers are making “a lifestyle choice” and turning to second homes sooner in their lives. That finding affirms what we know about Baby Boomers – the prime candidates for retirement second-home purchases – who define themselves by personal experiences and adventure. Interestingly, they are now joined by their children – the proud members of the Gen-X and Gen-Y generations – who view practical experiences as paramount in their lives.

      After three rocky years, many families are feeling they can go on vacation again. These people can help you make a purchase decision sooner. Not only can renters help you get in the door now, but they can also provide steady income for you down the road – perhaps to travel in retirement.

      “Make people suffer in a crappy economy for a few years and eventually they just say ‘screw it. I’m going on vacation.’ 2010 seems to be that year,” Hill said.

      Let’s say you have come to the conclusion that there is absolutely no way you could afford a second home at this time in your life. Now, step back and put yourself in renter’s shoes. Would you rent this place, say for $250 a night, which is the cost of the cheapest hotel in the area? OK, that’s $1,750 a week. And, you genuinely believe you know enough people who would rent this home for at least 10 total weeks this year?

      “If someone gives me all the factors of a proposed plan, I can tell them exactly where they will stand financially. If I have purchase price, currently furnished or unfurnished, down payment, rate and duration of the loan, I can let people know where they will be next year or in 5 or 10 years.

      “The key is to do it right. Most people don’t. They don’t have a clue about what people want or how to make guests feel special. So many rental homeowners think that you just throw in some furniture and the renters will come. They are so wrong. There is so much more to it than that.”

      Often, the key to renting out your place until you retire is buying in an area that people desire and can easily reach. In our next chapter, we suggest 10 terrific options.