Investment Property Mexico

Looking into property investment in Mexico? Want to know where the property investment hotspots in Mexico are? Our guide gives you the facts information you’ll want to know.

Mexico is becoming an increasingly popular place for US citizens to buy investment property. With the current lack of activity in the US housing market more and more people are looking south of the border to Mexico to make their money through buying property for investment and re sale. There are several reasons why Mexico is becoming more popular as a destination for investment property.

Firstly the number of retired baby boomers in the US is increasing. These are people with money to invest and willing to take a chance on buying property in Mexico because the expected rates of return over the medium term are forecasted to be much greater than anything available in the US right now.

Financing Investment Property in Mexico

Secondly, the methods of financing investment property purchases in Mexico have become much easier. Banks in Mexico differ from their counterparts in the US in that they do not offer generous loans for private home owners wanting to purchase their own property. At the same time US banks were up until recently reluctant to finance the purchase of an investment property outside the US because they would have little legal recourse should something go wrong.

Today, the most common way of purchasing an investment property in Mexico is to pay in cash. Because the average price of a property in many areas of Mexico is still considerably less than prices in the US, this is still a viable option. Many people take out a second mortgage to finance their purchase of property in Mexico. Others simply use the profits from a previous investment property sale to pay for their house in Mexico.

Investment Property Location Mexico

One of the main investment hotspots for property in Mexico right now is the Costa Maya. He Costa Maya is located just south of the popular tourist destination of Cancun; however, it is nowhere near as developed. The Costa Maya is still relatively undeveloped due to the fact that up until recently there were no government plans to bring electricity and water supply to the region as a whole. His has changed and the government in Mexico realizes the importance and benefits that can be brought to the region with investment and have now undertaken a large infrastructure project. Investment property can still be bought on the Costa Maya for as little as $50,000 and prices are set to increase up to ten fold over the next 15-20 years.

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