|
By Rhiannon Williamson 
Real Estate prices in the most popular parts of Mexico have been on
the increase of late, and the demand for property to retire, holiday
and invest in has also been on the up – this has created something of a
real estate boom in Mexico but for those still wondering what the fuss
is all about here are the five main reasons why an investor should
consider Mexican real estate…
1) The government of Mexico has
relaxed the rules that once prevented foreign buyers from purchasing on
or close to the coast, and nowadays with the simple use of a bank trust
structure investors can purchase some of the most beautiful prime
beachfront land in Mexico.
This land is ripe for residential and
tourism development and because the demand for hotels and luxury beach
front property is at its most intense in Mexico right now, this means
that an investor who buys beach front real estate in Mexico is probably
buying themselves one of the most promising investments possible.
2)
The Mexican government is committed to the economic improvement of
their country and to this end they are doing everything in their power
to attract foreign direct investment particularly into the tourism and
real estate sectors. This means that not only is investment welcome but
there are certain incentives now in place that make investing in
Mexican real estate even more attractive.
3) Mexican real estate
is incredibly popular with Northern Americans because it is affordable
and easily accessible and also because Mexico itself is a low cost
country in which to live. The large American baby boomer generation is
nearing retirement and as they do so a surge of interest from this
generation into the property market in Mexico is expected. This means
that an investor who buys into Mexico now and targets this particular
group of people could profit substantially – especially if they
consider buying into or developing retirement, gated or exclusive
communities.
4) Over 16,000 foreign companies have recently been
attracted to Mexico by the government’s commitment to developing
policies to make the country more attractive for overseas companies and
investors. The companies who have established trading bases in Mexico
have also created substantial employment opportunities for the local
people and expatriates - as a result, in the main Mexican towns and
cities unemployment is down, GDP is up and local Mexicans and
expatriate employees of the international firms are in a strong
financial position and are looking to rent quality accommodation for
which a premium can be charged.
Real estate investors who prefer
the buy to let market can buy into the residential rental market in
Mexico at a far reduced cost when compared to similar markets in cities
or towns in America or Europe for example, and they can profit
successfully from the increased purchasing power that is now apparent
in Mexico.
5) The tourism market in Mexico is responsible for
generating over 8% of the country’s GDP and supplying over 9% of the
country’s jobs already, and sustained focus by the government of Mexico
on further developing and promoting tourism in Mexico means that the
country is growing in popularity annually. The rise in the numbers of
visitors to Mexico means that there is increased demand for quality
villa and apartment accommodation to let out and a growing number of
overseas investors are now buying up single units, buying into entire
developments and even purchasing land for the development of properties
to meet this rise in demand.
Those who are focusing on this
market sector are making some of the greatest returns in the shortest
period of time in Mexico today - and if current statistics are anything
to go by, the level of overseas interest in both property to let and
real estate to buy in Mexico means that the demand for investment
properties in Mexico is not abating thus offering real estate investors
medium to long term potential for profit and gains.
|
