Published on 06 October 2005 at 03:34 pm
Filed under: South/Central America:- Mexico Property Guides » Mexico Guide for Real Estate Investors
Average real estate prices in Mexico have consistently risen over the past few years, but the choice of properties available for the investor combined with the attraction of the country for retirees, second homers and tourists means that there is still definite scope for profit and income from the Mexican real estate sector.
Since the economic turmoil experienced by Mexico in 1994 following the devaluation of the Mexican currency, Mexico’s government has worked consistently to establish a strong and sustainable economy and to promote and actively encourage foreign investment into many sectors including tourism and real estate - which further adds to the appeal of Mexico for international real estate investors.
The economic recovery that Mexico has made since 1994 when it experienced the worst recession for over fifty years has been substantial, but the government are still aware that there is a long way to go to reduce unemployment, underemployment, inflation and to improve income distribution. As a direct result of the government’s dedication to improving the Mexican economy, certain investment opportunities and incentives exist that allow international investors to purchase real estate that was formally restricted to local buyers only, including prime tourism land along the coastal regions.
This relaxing of laws relating to the foreign freehold ownership of land and property in certain parts of Mexico has opened up some of the most attractive areas of the country for the development of retirement havens for US and European retirees seeking a low cost of living and great quality of life in their senior years, and also for the development of more commercial tourism ventures.
Mexico has long been considered the retirement choice of Northern American citizens seeking a cost efficient place in the sun in which to retire, but thanks to the promotion of Mexico and its investment opportunities it is now welcoming more international property investment interest with Europeans closing in on Americans in terms of their numbers now living in Mexico.
Real estate prices and opportunities vary massively across the country and it is always necessary to spend time researching the market to get a feel for realistic asking prices and likely rental yields achievable from your property either from the local market or from the more lucrative tourist market. Investors pay a premium for prime real estate in Mexico City but they also reap better financial rewards in the form of the annual rental yield. Those who look to the more established resorts of Cancun and Acapulco for example will also have to pay a premium for prime residential real estate or plots of land, but the desire for properties to buy and rent in and around these locations means that any investment made will reap returns both in the form of rental income and underlying property price growth.
Not all areas of the country are a good bet for real estate investors by any means! Some areas are inhospitable because of climate and geography, some are simply unpopular with tourists or those seeking a place to retire to or holiday in Mexico. In general terms cities and coastal regions make the best investment hotspots in Mexico but watch out for this ever changing, fast developing country because it can bring welcome surprises for those who would like to invest. Furthermore, the attraction and appeal of Mexico is great and the cost of living comparatively low; add to this the fact that while property prices have risen consistently they have not risen anywhere near as fast as those in the US and Europe and you can already get a feel for how very likely it is that both the tourism numbers and the numbers of overseas buyers making real estate purchases in Mexico will rise substantially as infrastructure and communications improve and the government continue to exact significant and successful economic advancements.
South/Central America:- Mexico Property Reports
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