Why You Should Invest in Mexico’s Real Estate
In recent years, the real estate sector in Mexico has surged. Just last year, following the election of Andrés Manuel López Obrador as president the real estate market rallied. Mexico has always been a great real estate option for American’s looking for a second home. Its sunny beaches, generally great weather, friendly locals, vibrant culture, low cost of living, as well as its proximity to the United States makes Mexico an ideal country to invest in real estate. Other factors include the fact that the real estate market in Mexico is much more stable than that in America. For more information as to why you should invest in this great country, keep reading.
Low Cost of Living
Research findings from a study conducted by Numbeo- a leader in the analysis of living data- found that Mexican cities have the lowest cost of living in the Americas. The study collected results in 184 from Canada to the southern tip of South America. This, combined with the fact that the U.S dollar has been recording highs against the Mexican Peso means that American’s looking to invest in Mexico should not only expect extremely competitive real estate prices, but also a very affordable cost of living. To be specific, statistics show that grocery prices in the United States are 13.95% higher than those in Mexico. Similarly, restaurant prices in the United States are 125.80% higher than those in Mexico. Moreover, consumer prices in the United States, in general, are 106% higher than those in Mexico.
Friendly People, Vibrant Culture
Mexican culture is what brought Tequila, tortillas, Nachos and more, to America. Its vibrancy and depth are amazing. Despite series like Narcos that paint Mexico as a dangerous place, in general, Mexicans are very warm and welcoming. Furthermore, because Mexico is so close to the United States, its culture is not very foreign to potential investors. In fact, both countries have greatly influenced each other’s cultures. An article published in Forbes magazine listed Mexico as one of the countries where Americans could relocate to with ease.
Proximity to the United States
Mexico is perfect for those looking to experience an entirely new culture, but don’t want to travel too far from home. Mexico’s proximity to the United States is one of the greatest perks of buying property there. One can choose to fly to Mexico, or simply drive. Because of this, those looking to buy a vacation home do not need to spend so much time and money when planning logistics, when they want to spend some time in their homes. Moreover, because of its proximity to the homeland, people investing in vacation homes can expect to find many of the local brands also available in Mexico. Brands such as Home Depot, Walmart, McDonald’s, and Starbucks also have a presence in Mexico too.
Great Return on Investment
For those looking to invest in property for business reasons, Mexico offers an amazing return on investment. Over the past 5 years, the real estate sector in Mexico has boomed. Moreover, because residential mortgage-backed securities are not common in Mexico, the Mexican real estate sector is much more stable than the United States. In terms of figures, those who invest in the more popular areas such as Cancun, Playa del Carmen, Puerto Vallarta, and Baja California, as well as the Riviera Maya region, can expect anywhere from 8-14% return on investment.
Easy Residency and Visa Application
It is relatively easy for U.S. citizens to access permanent residency in Mexico. A report done by Business Insider found that in the past few years there have been more Americans applying for permanent residency in Mexico, than the other way round. If one is not willing to deal with the paperwork involved for permanent residency, they can also access a 6-month tourist visa with ease.
Investing real estate in Mexico does not come with a tradeoff of poor infrastructure. Mexico has modern infrastructure. Expect great medical care, great schools (including international schools), access to high-speed internet connectivity and a vibrant and international shopping scene.
Mexico is a great choice for investors looking to diversify their real estate portfolio or for those looking to relocate or purchase a vacation home. Its vibrant culture, low cost of living, great return on investment as well as its proximity to the homeland and great infrastructure make it an ideal real estate investment choice.