According to El Financiero newspaper, due to President Donald Trump’s intention to cancel the Affordable Care Act (ACA) and the low cost of housing in Mexico compared to the US, 3.9 million retired Americans could opt to reside in the neighboring country.
With the incentive Trump has for the possible cancellation of the ACA in the United States, better known as ObamaCare, it would force millions of US retirees to seek asylum in Mexico, from which will be profiting firms such as Belmont Village, Ballesol and Le Grand Senior Living that invest in luxury retirement homes in ‘Aztec soils’.
The Mexican Retirement Assistance Association (AMAR) estimated that there are about 3.9 million Americans who could seek asylum in Mexico by the end of 2050 due to the low cost of living in the country, reports El Financiero.
Javier Govi, president of AMAR, mentioned that the current situation in the United States with Trump made Mexico more alluring to Americans who are about to retire. “The cost of living in the country is much lower, about 30 percent less (than in the US). If you add Donald Trump’s current policies, the devaluation of the peso against the US dollar, and the possible cancellation of ObamaCare, it causes that a certain American social class, like it is the senior group, start becoming interested in coming to our country”, said the executive.
In Mexico there are about a dozen residential real estate projects for seniors with high purchasing power, such as Belmont Village, which opened in May − with monthly payments of between 50 thousand and 80 thousand pesos for its residents — or the Spanish company Ballesol that works along with Grupo Presidente in Querétaro, and Santa Fe in Mexico City, besides the Le Grand Senior Living in Huixquilucan, Estado de México.
“Based on the studies that have been carried out, there is a very important potential for the national and foreign market. Nowadays, in very conservative terms, a minimum of 250 projects are required to cover the independent living, assisted living and memory care services in the country,” said Govi.
According to the National Population Council, there is also a great potential in the Mexico senior market. The adult population (over 60 years old) will triple in the future, and between 2017 and 2050 it will go from 12.9 million to 32.4 million people.
The AMAR also estimated that out of the current total population of Mexicans over 50 years old, only 8.7 percent have the economic capacity to afford one of these ‘luxury’ houses, which is equivalent to about 9 million people.
“The demographic dividend coming in Mexico is a crucial factor for the development of this market, aside from the fact that there are more senior citizens with probabilities of getting a higher income due to more elaborated pension plans, which will allow a better way of living during this stage”, explained Pablo Espinosa, chairman of the Retirement Board firm “Casa del Bosque.”
Currently, there exist 814 nursing homes and senior residences throughout the country that assist elder people.
Patricia Will, Belmont Village CEO, said they see in Mexico a significant market for this business sector outside the American Union. “Mexico is our first market in which we make incursions outside the United States, since we see a significant possibility in the country for being a new market that counts with a few residences for seniors. I believe that in Mexico City we can build five more units, from which we already have a second plot in New Polanco; continuing the search for a third one in the south part of the city. They would be ready in the next 7 to 10 years”, she added.
The firm has 24 retirement homes in the United States, and in a second stage they plan to open more centers in Mexican beach areas, primarily focused on the foreign market.
Source: El Financiero
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