Mexico has become an interesting location to invest in real estate projects or own a second home and vacation property. Many people from all around the world, and especially the United States and Canada, are actively buying real estate in Mexico. In recent years Mexico become an attractive place to invest. We believe there are several reasons behind this trend:
- Mexico is a popular tourist destination and is ranked as the 7th most visited country in the world. It attracted 22.4 million international tourists in 2010; contributed $11.8 billion to Mexico’s economy in 2010, one of the top sources of foreign exchange for the country.
- Mexico’s trade regime is built upon 13 trade agreements with 44 countries, including the United States, Canada, and the European Union.
Property taxes are very low in Mexico and the country is ranked #1, according to KPMG’s Competitive Alternatives 2010, making it the best place to do business from a tax burden point of view.
- All the multinational corporations took advantage of Mexico‘s opportunities and are implanted in the country like Lafarge, Alstom, Eurocopter, EDF, LVMH, L’Oreal, Areva, Danone, Home Depot, Starbucks, Ernst and Young, AXA)
- The prices of Mexico properties are clearly affordable regarding other markets. And, with positive economic perspectives, many experts agree that the long-term investment prospects remain attractive.
- Over 70 million people in the United States are now over 50 years old. This segment of the population is prone to seek vacation homes, retirement locations and real estate investments. As more and more people invest in Mexico additional services are built to support this trend. As this occurs, it often makes Mexico even more appealing to new investors.
- Over 1 million Americans now live full time in Mexico. Along with residents who have moved from other countries this large population has proved the safety and viability of life in Mexico.
- The average rental yield for a property in Mexico is about 10% to 12% a year, over the value of the property, for permanent rentals. For holiday rentals, it may vary, depending on the area the property is located and the demand it faces in a particular period of time. Despite seasonal variations the profits are commonly higher.
International direct flights from Cancun are low-cost and do not require early bookings.
- Mexico’s warmer climate is attractive to many from the United States, Canada and other foreign locations. For decades many people have enjoyed vacationing in Mexico. “Purchasing” property is the natural next step.Most of the popular destinations in Mexico offer an array of interesting and fun things to do. From beach life and diving to golf and water sports most people are excited at the numerous ways one can recreate in Mexico. Those who enjoy exploring the rich history and culture of Mexico will explore each region and discover they that have its own unique opportunities. And, of course, many people find that Mexico is the perfect destination for simple rest and relaxation.
There is growing inventory of condos, villas, homes and land plus a wide selection of resorts and developments with extensive amenities. This provides a steady supply of inventory for interested buyers and investors.
The long-term future of Mexico looks promising. The country itself is becoming stronger economically and the opportunity for long-term real estate appreciation in most regions continues to be favorable.
- We clearly believe that Mexico real estate provides an attractive opportunity for both investment and enjoyment for decades to come.