Investors turn to Mexico as US Stock Market declines
Real Estate in general has proven to be an excellent investment, and actually better than the Stock Market over the long term. Real estate in Mexico is really a safe haven for real estate investors, more so than in the US. The recent drop in values of real estate in the US and Mexico makes now an excellent time to invest in real estate. I tell potential buyers looking for a mortgage in Mexico that they can choose to invest in the US, but unless it will be their primary residence, it isn’t a good place to put their money because prices are going to be very slow to increase in the US – there is a huge inventory in the market, and many foreclosures are yet to be put into the market, which will likely depress prices even further. If people are looking to pick up a property in the US for cheap and rent it out – guess what? Everyone else has the same idea and the rental market will not be strong and rents will be low. If people want to buy a great primary residence to live in for not much money, then the US is a good place to buy a home.
The real estate market in Mexico is still very viable, and although prices are the lowest they have been in the last 5-8 years, the bottom of the market hasn’t fallen out. There are no massive foreclosure problems in Mexico. Interest rates are at an all-time low in Mexico (as low as 5.25%) and values are going to appreciate much faster than in the US since there is still a huge pent-up demand of baby boomers looking to make their retirement nest-egg go as far as possible. This is even more true now that retirement assets have dropped in value – again. Mexico is still an inexpensive place to live – once people have their real estate purchased. Warren Buffet and J. Paul Getty (as well as other wealth investors) share an identical strategy that when everyone is selling, it is a good time to buy and pick up exceptional deals. This is true of Mexico right now. Investors are fed-up with the stock market and will want to put their money into a safe investment - and for many, a place they can use and enjoy as the value of their real estate goes up. Investing today is not so much about how much return you can make on your capital investment, but it is more about protecting the investment you have so that it doesn’t lose value. We can honestly tell potential buyers that a dollar invested in Mexico isn’t going to disappear like it can in the Stock Market. ---Doug Jones, President Mortgages in Mexico