Will Mexico Land Demand follow United State Real Estate Trends?

Will Mexico Land and real estate have similar demand increases in the next decade as being witnessed in the United States?  Several factors must be taken into consideration in order to project such similarities. 

In the United States, recent studies show some interesting population trends.  Some first wave population shifts are being registered which shows a slight decreases from the northern colder states towards the south western regions.  Texas, Wyoming, Nevada are some of the states that are absorbing much of the moves. States such as Michigan, Rhode Island, Maine are decreasing in size.  Land in Mexico historically has never been an option for consideration, but the quantity of ex pats buying Mexico real estate has been steadily increasing.  

As the population of both Canada and United States grow older, and this population segment begin retiring from their jobs, a large quantity of them begin exploring new life style options.  Their children are no longer living at home, graduated from college, and the homes might be much larger than required.  With the thought of selling the home, people review closer the living requirements for only two people vs. an entire family.  The life long dream of living in a warmer climate, waterfront living, smaller yards and square footage with less maintenance required becomes more appealing.  These are the continued trends that are expected over the next coming decade.

As Mexico land is more affordable on an average than in the US or Canada, and the day to day living expenses as well are less than their northern counterparts, it is now becoming a viable option and not so much a fantasy dream for many Americans and Canadians.  The costs in Mexico for oceanfront and waterfront properties are much less on average than found in Florida, South Carolina, and many other southern states near the coasts.  Even the carrying costs and day to day living expenses are considerably less which allows for savings and social security checks to stretch out much further than the traditional retirement community bills.  The infrastructure of many regions in Mexico have seen drastic improvements over the past 15 years with the North American Free Trade Agreement.  People who have never been to Mexico are pleasantly surprised to the amenities, the cleanliness, and the natural beauties available in many cities throughout the nation. 

Some of the deterrents keeping larger amounts of Americans and Canadians from purchasing large quantities of Mexico land include such items as extra processing requirements.  Many non-Mexicans do not realize that they can own land in Mexico.  Real Estate can be purchased and sold by non-Mexicans and only within 50 kilometers from the oceanfronts is the extra requirement of establishing a bank trust outlined.  People are also with the misconception that it is extremely long air travel time and are surprised to hear that many of the Mexico cities can be only 2 – 3 hour flight depending on the regions.  As more North Americans discover these factors and continue analyzing the large day to day cost differences, Mexico is projected to have even larger increases in the population of ex-pats.  

As the northern countries, and northern states begin witnessing population decreases and the warmer climate regions begin receiving these new influxes, it is expected that Mexico land will become at the highest level of demand by non-Mexicans than ever witnessed in history.  It is expected that as the population ages, and they retire, they will prefer to live in warmer climates but within communities that are inexpensive.

Thomas Lloyd graduated from Purdue University Krannert School of Management with a degree in Management/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree and Mexico Professional Real Estate LicenseS.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at (512) 879-6546 or through the company’s web site www.TOPmexicorealestate.com NETWORK

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