Many real estate investors in the U.S. are beginning to look past the border for alternatives to an uncertain market; while prices are low, experts are still not certain if prices have bottomed out yet, and some warn that the low prices will just stay that way – for quite some time. Mexico real estate provides one alternative close to home which investors are finding attractive.
Mexico property prices, on the whole, were far less affected by the U.S. housing bubble and the international recession than the U.S. itself and many other places. Only in certain tourism hot-spots (specifically those that were in the middle of a boom where pre-recession demand from U.S. buyers created a glut of new construction which is still on the market, did prices take a dip, and this was less severe than in the U.S. Price reductions are disappearing, and sellers are listing their properties back at the "normal" prices of 2007/2008.
In most of the country, prices have continued in a slow but steady upward direction. Both situations can provide excellent opportunities for investors.
Those investing in the beachfront tourism areas can still find some of the price reductions left over, or those special cases where a buyer has reasons not related to the global economy to sell quickly at a lower price. The return to a healthy upward movement in property sales prices means that these opportunities will pay off in re-sale return. As tourism continues to grow in Mexico as well, the rental income market is also an excellent choice for bring return from a property investment.
In the rest of Mexico, prices have generally remained lower. Making a lower value investment here will show slower appreciation, but also appreciation that is less susceptible to fluctuations in the U.S. economy. Some colonial cities as well as lakefront villages are just being discovered by international tourism, and could bring a more drastic return as the tourism economy takes off.
Compared to the U.S. market which one hand has been erratic at times, and on the other hand leaves some smaller investors feeling that the situation is largely manipulated by large investment corporations with the inside scoop, the Mexico real estate market is still less "sophisticated," meaning that the opportunity for this kind of large scale manipulation is not available. For smaller investors, this leaves more freedom to find either high-potential properties, or very stable and secure investments, with more confidence that an erratic market will not cost them a good chunk of their life savings.
TOPMexicoRealEstate.com; Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely
