The real estate market has been affected by the world-wide crisis, but unlike other sectors of the economy; housing development is vital for the population. The need for low to middle income housing in Mexico, as well as the easy access to credit; has kept developers up and running.
Areas like the Mayan Riviera have been experiencing a steady growth when it comes to real estate developments. There are plenty of foreigners interested in buying a second home or retiring to Mexico, looking for the same amenities they enjoy at home; and Mexican developers are more than happy to accommodate their needs.
Investing in Real Estate in Mexico: Advantages
According INEGI (National Institute of Statistics and Geography) in the last ten years, Mexico has become a magnet for retirees, investors and real estate buyers. There has been an estimated of 42,000 properties sold to foreigners in the last 10 years, and this is only in the restricted zone (all land located within 100 kilometers of any Mexican border and within 50 kilometers of any Mexican coastline).
Mexico is among the most important emerging economies. The country has been transformed through reforms that contribute to a stable macroeconomic environment in order to lead the rest of Latin America as the least likely country to face economic risks.
Currently, the population is transformed through a fast growth in disposable income (similar to the U.S. during the seventies) and greater access to credit for the middle class. This has meant that Mexico is considered as an attractive investment destination particularly when it comes to purchasing property or investing in real estate or construction for housing development.
Mexico offers investors the opportunity to purchase a property in a popular area like Cancun or Playa del Carmen, for a fraction of the price of similar properties in areas like Florida. Your investment can be as small as the low 80’s for a studio, the price for a 2 bedroom/ bath apartment near the beach is in the mid 100’s; an excellent price for one of the most popular touristic destinations in Mexico.
Mexico also has extremely low property taxes, which are around 0.05 of the value of the property, extremely low compared to 0.85 in Florida. Investing in Real Estate is an excellent choice, from a small studio to a luxury property, there will be people to rent it as a vacation rentals or even a long term rental.
Another advantage of investing in real estate over other more speculative options is clear: owning a piece of property in a place where real estate is cheaper and the equity grows faster. The value of your property depends not only on the supply and demand, or the public perception, or trends or fashions; but a real need for a place to stay for tourists.
Investing in Real Estate in Mexico: Finding the Right Property
The growing population of retirees looking for warmer climates and a lower cost of living, as well as people looking to invest on a second home has increased the amount of companies specialized in building, selling and administration of properties for foreigners.
If you want to invest in real estate, there are plenty of real estate options; with the amenities and services you are accustomed to. The developers are getting more and more potential buyers, looking to invest and they are offering services such as condo-hotels, which allows the owner to rent the property when he is not using it, making a profit the rest of the year.
When choosing to buy property you must take into account important factors:
- Location: This is the most important aspect to consider when buying a property, make sure to choose a safe destination with a reasonable average price per square meter.
- Property: Either if you are looking to buy land, houses or a business, each area or region will be more suitable for one type of investment or another.
- Real Estate professional: Buying a property in Mexico is possible and easy, but you need a certified professional by your side. Someone that has experience working with foreigners and knows the process and has gone through it a few hundred times.
Once you have found the perfect investment property, work together with your Real Estate Agent, Notary and Lawyer to make sure you get your property in a fast, convenient and secure way.