No one wants to invest in real estate in a country that is on a fast track to nowhere. Everyone wants to invest in real estate in a country that works tirelessly to build its reputation, resources, and opportunities around the world. Such is the case with business-minded Mexico and its new found determination to form a trade pact with Brazil.

At the present time, Brazil and Mexico are responsible for approximately 70% of all of the economic activity in the region. Brazil has the 8th largest economy in the world. Mexico has the 11th largest economy in the world. If these two nations are able to form a satisfactory free trade agreement, there can only be blue skies ahead for both of them and, even at this writing, the President of Mexico is in Brazil proposing just such an agreement.

This free trade agreement will have several consequences for those who wish to invest in real estate in Mexico. First, protecting the economy of Mexico will protect the value of their investment. Since about 80% of all of Mexico’s exports go to the U.S., the more they can export to Brazil, the less they will have to depend on the economic winds of fortune in the U.S. Having an economy that can thrive when some of its partners are not doing well is one of the fundamental principles of investing in real estate in any foreign nation.

The wise investor will also watch to see just what products Brazil is importing from and exporting to Mexico. This will be a huge indicator of which ports to invest in, as well as where the new jobs (and real estate profits) will be.

It is nice to be an American – or a Canadian – or a Frenchman. It’s nice to sing one’s national anthem and wave one’s flag. However, when one is a real estate investor, its nice to know who has the money, where they are going to spend it, and who their friends are. That does not have one single thing to do with nationality. It has to do with having one’s finger on the pulse of the world and knowing where the next best market is going to be. With a new free trade agreement with Brazil already well into the talking stage, at the highest of levels, Mexico is the place for anyone’s real estate dollars in this often volatile global economy.

Resource: BBC: Mexico Favours Brazil Trade Pact