U.S. Real Estate Hits Crisis, Mexico Emerges As Solid Contender for Investment
By: Mexico Investor
In the last year and a half, we have seen a dramatic change in the global economy. Not just the stock market, but all critical business and real estate sectors have suffered. In fact, even the richest people in the world have gotten poorer just like the rest of us. The economical leaders have lost 23% of their wealth in just the last 12 months. To emerge in a new economy requires radical shifts of thinking and investing.
The US State Department estimates that there are 385,000 Americans permanently living in Mexico. Although buying a vacation or second home in Mexico is not a new idea, we’re looking at Mexico from a new perspective as investors. The potential in an emerging economy is to pinpoint opportunities of growth. With its growing GDP, a higher level of foreign direct investment than any other Latin country, and a current political climate that is more pluralistic and open to investment than any other of the last seven decades, investing in Mexico today offers high rewards with limited risk.
Although the Mexican government does not offer any direct incentives to promote investment in Mexico, there are many benefits to purchasing real estate in Mexico. The property taxes in Mexico are minuscule compared with the U.S. and Canada, usually costing just a few hundred dollars per year. It is also very easy to be exempted from paying the capital gains tax. The appreciation in many areas, especially on the coasts, can be very high, with 50% or more per annum being a realistic number. And above all, buying Mexican real estate is safe and easy, with more and more financing sources available to U.S. and Canadian residents through both U.S. and Mexican banks.
In terms of business investment, as a growing economy Mexico offers opportunities where your professional expertise will give you the upper hand in a market that still requires improvement and infrastructure. The last two presidents have seemed committed to allocating funds for new and expanded roads, ports, and telecommunication infrastructure. This goes hand in hand with increased privatization, which will allow concessions in the national airport network and the telecommunications sector. The idea is that all of those improvements will further encourage and facilitate commerce.
Mexico’s peso is strong and has remained so against the dollar over the last few years, in part by the significant foreign investment in Mexico. A strong local currency bodes well if you’re considering a direct investment in Mexico. You won’t have to contend with the wild swings in property pricing that you might find elsewhere.
The greatest opportunities have a window of time for the best bargain. In the current economy the time is now. The crisis is not going to last forever and prices will continue to climb in the near future. A visionary will take the opportunity to make their investment decisions now and enjoy their investment emerge in solid profit gains in the years to come.
Company Summary: Century 21, Foreign Investment specializes in Mexico Real Estate: Commercial, Residential & Land asset classes. Commercial and land listings throughout Mexico, residential listings in Playa del Carmen. Simple, easy, stress-free title and closing experience for you. Our focus is on one end result: to protect your investment. We invite you to view our website at http://www.mexicorealtyinvestment.com and we encourage you to contact us via info@mexicorealtyinvestment.com.
Written By: Mexico Realty Investment – Kalina Kastelik & Pedro Hinojosa









I would assume the US real estate market will come back once we finaly hit bottom with foreclosures and thing should get better fast – so do not siclunt the US Market
Mike
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