Most Americans had their money invested in stock market in one way or another. This includes their 401Ks, traditional IRAs and ROTH accounts just to name some.
A few years ago, with the stock market yielding record breaking highs, people were experiencing immense growth in their portfolios. But as the saying goes, ‘What goes up, must come down’. All types of stocks and mutual funds are very volatile to many industry indicators that pivot on diverse factors. Factors such as, supply and demand, international crisis, and the unpredictability in all markets.
A tilt in the market leads to a disastrous outcome and could jeopardize your financial stability as has just happened. With the Pandemic and the invasion to Ukraine everything went upside down.
But what does diversifying your portfolio mean?
The concept of diversification is to invest in several sectors, markets, and types of investments. This is to be better protected from volatility and to perform better over the course of many years.
That said, I think is much better to have a mix of tangible assets rather than having all the eggs in the same basket. I am not saying to take all your money out of the stock market and invest it in foreign real estate. However, diversifying your portfolio isn’t a bad idea either.
Purchasing property only in the US is not something smart right now. This year, mortgage rates have risen by more than two and a half percentage points. Moreover, the increasing expenses of purchasing a home have made prospective purchasers back off. As a result, house sales have fallen in recent months.
Investing in internationally renowned vacation destinations
Let’s take a look at how investing in vacation destinations that keep growing year after year are a good option for diversifying your portfolio.
Rapidly developing countries like Mexico offer plenty of opportunities for investing. Mexico’s real estate market is in full swing and on sale. With the dollar exchanging very favorably with the peso and new developments popping up all over the Riviera Maya, there is no better time to buy than now!
There are several locations along the Mexican Caribbean like Cancun and the Riviera Maya Playa del Carmen and Tulum that are showing exceptional growth. These communities are considered resort destinations and have a year-round flow of tourist.
Just at the end of last year, 31 million international tourists arrived in Mexico which meant 18 thousand 428 million dollars per economic spillover, 67.6 percent higher than in 2020.
Regarding hotel occupancy, there was an annual average of 45.9 percent, 19.9 percentage points above 2020, and 34.2 points below 2019.
Tourism and Investments
The Secretaries of Tourism of the state informed that at the end of December 2021 there was a maintained national investment of 215,579 million pesos. This investment had 521 tourism projects, which generated 161,818 direct and indirect jobs. The entities with the highest investment are Nayarit, Mexico City, Baja California Sur, Yucatan, Quintana Roo, and Guerrero.
Also, in the third quarter of 2021, foreign direct tourism investment was one thousand 548 million dollars. And in this same period, tourism employment showed a growth of 4.9 percent, equivalent to 191,409 more employed people than the previous quarter.
From January to November 2021, in domestic flights there was an influx of 39 million 742 thousand 70 passengers. Which is a 58.2 percent more than in the same period of 2020. And, in international flights, 31 million 686 thousand 341 passengers, 76.5 percent above the record of first 11 months of 2020.
The tourism industry is an essential source of income for Mexico. It is equivalent to 8.4% of GDP. This industry generates 2.5 million direct jobs and more than 5 million indirect jobs
Most importantly, it is the main tourist destination for travelers from the United States and Canada. This year Cancun and the Riviera Maya became the second most visited tourist destinations of the world.
Diversifying your Portffolio with Mexico Real Estate
Evidently, Mexico has all the elements to consolidate itself as an international investment destination, a leader in development and tourism. Mexico is a country with great investment opportunities, capable of generating public-private partnerships and creating joint ventures.
The Ministry of Tourism announced that Mexico is one of the seven most attractive countries for investment (United Nations Conference on Trade and Development – UNCTAD) and the ninth among the 25 most attractive to investors from around the world, according to AT Kearney.
Mexico is on track to consolidate itself as a global tourism power.
Consider investing in Riviera Maya or Cancun for diversifying your portfolio
Mexico is one of the best places to retire worldwide. It has the second-largest coral reef in the world, and it is in the Mexican Caribbean. Also, there are more than 45 thousand archaeological sites in Mexico. And the Riviera Maya and Cancun are close to many. Thus, the myths and history of the Mayan world have a great ethnic and historical richness.
One other reason to think about Mexico as a place to invest in is that its gastronomy is one of the three cuisines globally that UNESCO declared Intangible Cultural Heritage of Humanity. Furthermore, Mexico has 32 destinations that UNESCO declared a World Heritage Site.
In Mexico, there are more than 176 protected natural areas, and it is home to 10% of the global species diversity. Three thousand years of history preserve the memory of 65 ethnic groups.
Take a moment to contact us at Top Mexico Real Estate. Let one of our professional agents provide you with information on real estate investment opportunities for diversifying your portfolio. Remember, at Top Mexico Real Estate… We make it happen!