President Calderon Announces that Recession Will Soon End: Good News For Mexico Real Estate Market

In the past decade, Mexico real estate buyers have seen the economy, infrastructure and services in this country improve drastically As the international recession continues to loom over the world, buyers may be more cautious, wondering what the long term effects might be, and if the current standard of living here will be decreased. However, the current government is not only reassuring that Mexico will come out of the recession stronger than ever, but is taking action to help guarantee this outcome. Also, as other countries begin to pull out of the recession, it may be an intelligent excercise for foreign buyers to review the options and take advantage of price reductions in various regions including the Playa del Carmen real estate market, Yucatan Real Estate areas, and even Cozumel real estate activities before the price pressures start rising the values.

On July 21^st Felipe Calderon, the President of Mexico, announced that signs are positive that the recession will soon end in Mexico “We have been able to contain the impacts to a certain limit,” said the president, “and we are working hard not only to overcome the recession, but also to move ahead with more strength.” The President mentioned that several positive signs indicate that economic recovery will begin soon, albeit slow He also stated that Mexico will come out of the crisis not only surviving, but stronger with a clear direction of growing more and being more competitive.

The reasons and the results

The President noted that the government's programs have helped bring about the new hope in the economy. Some of the most significant measures the government has taken are those to support the automotive industry, which accounts for a fifth of Mexico's GDP, and provides income for more than 3 million families The measures include financial bail outs, work stoppages – which have saved companies money and prevented job loss – and a new vehicle program, encouraging owners of vehicles more than 10 years old to buy a new car with a 15,000 peso subsidy.

These measures have helped keep confidence in the Mexican auto industry strong; Volkswagen is currently expanding its plant in Puebla, investing 4 billion dollars in the new expansion This is only a fraction of the total which Volkswagen plans to invest in Mexico between 2008 and 2011 The new section of the plant is expected to create 2000 jobs directly, and more than 6000 indirectly Calderon compared the Mexican auto industry to its main competitors – China, India and Brazil – stating that Mexico has much better conditions in terms of transportation, logistics and production for competitiveness.

This investment and confidence in the Mexican auto industry indicates the resilience of the Mexican economy, and the ability of the current government to make intelligent decisions in strengthening key areas of the Mexican economy.

Benefits and Effects on Mexico Real Estate

The competence of the current administration and the confidence with which international business continues to invest in Mexico's economy should instill confidence in buyers and investors of Mexico real estate Foreigners can be confident that Mexico's economy will continue to strengthen, which in turn will mean that the current quality of infrastructure and services will not only be maintained, but will continue to improve More and more foreign buyers will find that healthcare, stores, availability of goods will be at least as good as what they're used to back home – but still at a considerably lower price Besides the availability of international items, an improving Mexican economy will provide high quality products from this country.

Another factor for potential buyers of Mexico real estate to consider now is the signs that the recession is not only drawing to an end in Mexico, but in various places around the world As of July 23^rd, the Bank of Canada declared that the recession is essentially over in that country The expectation is that the country's economy will grow 1.3 % this quarter (contrasted to the 1% contraction originally fore-casted), and that the last quarter of 2009 will see approximately a 3% increase The Bank acknowledged that the growth will be slow as long as the U.S. is in recession; but the turnaround for the U.S. is expected to come soon as well, although somewhat slower.

Foreign buyers would be wise to investigate the possibilities of buying Mexico real estate soon With various signs being positive and housing prices strengthening in various countries – Canada's housing prices are already on the rise again – there are still many price reduction opportunities in the various regions of Mexico including the Puerto Vallarta real estate market As the international recession comes to an end and more people buy with confidence, these price reductions will also come to an end It is better to buy before this happens This being said, it is always necessary to buy carefully, making sure all the necessary information is found Qualified, experienced agents, such as TOPMexicoRealEstate NETWORK, Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely, can help find the “good deal yet safe deal” that will be right for each buyer's needs, and the correct data to make solid investment decisions.

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 License S.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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