By Fiona Anderson, Canwest News Service July 25, 2009

With the recession hitting the United States harder than Canada, and the Canadian dollar still strong, this may be a great time for Canadians to buy that sunny, tranquil getaway in the U. S. or farther south. But to make sure it is tranquil, do your due diligence, just like you would at home.

Tom Kelly, a syndicated columnist based in Washington state, has co-authored two books about buying real estate in Mexico and Central America.

He believes prices in those areas will go up once American baby boomers recover some of their wealth.

U. S. boomers weren't prepared for the economic downturn and once they rebuild, they are going to look for a cheaper lifestyle. And it's definitely cheaper in Mexico and Central America, Kelly said.

Canadians, on the other hand, haven't been as hard hit and were better prepared, he said. So they are in a better position to buy now.

"And the further you go, typically the less expensive it's going to be," Kelly said.

Panama, for example, "is a bargain right now," Kelly said. "But it costs money to get there."

And while Puerto Vallarta and other places in Mexico are easier to get to, deals can be found there, too, because not as many people are buying, he said. The outbreak of H1N1 flu in the spring turned some people off. And the rash of drug-related crime did too, Kelly said.

But Kelly believes Mexico is perfectly safe, with the violence limited to the drug trade near the border. "There's no history of these people targeting non-nationals," Kelly said.

Mexico is also safe from a purchasing perspective with title insurance now available to those buying property, he said.

A lot of the horror stories of people buying in Mexico and ending up with nothing really stemmed from "nonnationals buying property they should have never bought in the first place because nobody owned the title to it," Kelly said.

For financing, it's cheaper to re-mortgage your Canadian property and buy with cash than get local financing. While there are international banks that will lend you money, they will charge more, he said.

David Ingram is a North-Vancouver-based former real estate agent who has made a career out of advising Canadians who want to buy property outside the country, and foreigners who want to buy property in Canada. About 6,000 people attended his seminars last year.

The first thing to remember is, every country, and every state, is different, he said. So get the advice you need to learn the rules before you buy.