19 June 2008 605 views One Comment

Bloody headlines from the Mexican border sell papers - and lots of them - so do pictures of the Mexican military supposedly “storming” through Mexican towns. Those who are interested in investing in real estate in Mexico are well aware that describing all of Mexico in terms of two or three border towns is much akin to describing all of the United States in terms of the inner city areas of any number of American cities. Yes, those places exist in both countries, but most of the areas of both nations are filled with good people who place a great deal of value on the quality of life in their communities, and they work hard to improve it.

The Military

The first, and most shocking (for Americans) observation of this strange phenomenon is the presence of the Mexican military everywhere inside the country of Mexico. This is something that is unheard of in the U.S., where it is (supposed to be) illegal for the American military to be used against U.S. citizens inside their own country. The system in Mexico is much the same as the system in the U.S., with the Mexican military taking on the role that Americans usually see as the jobs of the National Guard, S.W.A.T. teams, the FBI, and Homeland Security. In most places in Mexico, the military is a welcomed sight and an integral part of the community, especially in times of natural disaster. It might not be a bad idea for the potential investor, once a location is decided upon, to go by and visit with the local police and/or military installations. Many a life-long friendship has been developed in just such a manner.

Crime Stats are Relative

At the present time, it is not possible to compare current crime rates in Mexico and the United States because it is not possible to get statists past 2005 for the U.S. and 2006 for Mexico. This means that a comparison in statistics between the two nations would not be valid because many old issues have been resolved and new ones have sprung up in other places. However, the statistics that are online can be found here for the U.S. and here for Mexico.

Mexico’s highest 2006 state homicide statistics were in Sinaloa, Mexico, Oaxaca, Guerrero, Chiapas, Michoacan, and Sonora. The lowest 2006 state homicide rates were in San Luis Potosi, Durango, and Tabasco. The question then becomes one of whether to choose an investment location based solely on crime statistics. It very may well be that a state with a very low crime rate may also have a very high rate of weather related tragedies. It could be that a state with a high crime rate may have only one city that is responsible for that entire crime rate.

It is left to the potential investor to do all of their homework so that a skewed view of crime - and the role of the police and military - in any state or city in Mexico, does not unduly influence their decision. This is the same advice one would get in investing in real estate in the U.S., or anywhere else in the world.

Photo by Rob Lee