There are many ways to Invest in Mexico, and investing means something different to everyone. This ‘How To' outlines the top 3 opportunities for investing in Mexico property. These opportunities are to:[divider_flat]
- Invest in Mexico property that increases in value.
- Invest in Mexico to receive revenue from your vacation property and;
- Invest in Mexico for a better quality of life.
Invest in Mexico property that increases in value
Mexico saw a slowdown during the economic crash as did the U.S. and Canada, however it's economy and real estate are seeing a positive turnaround. Mexico is seen as a top emerging economy. Canadians and Americans are starting to purchase foreign property again, and Mexico is the perfect place to do so. Real estate in Mexico remains low and because property values in Mexico tend to increase with each year people who buy now will see their investment grow over the next 10-20 years.
Baby boomers make up a substantial portion of North America. This large population of people are seeking out investment opportunities in tropical and vacation locations. They also want something that is relatively close to home, making Mexico the perfect spot.
The Mexican government has also made it easier for foreigners to buy land. Foreigners can buy and sell property in Mexico through a real estate trust called ‘fedeicomiso'. Fedeicomiso allows a foreign buyer to receive full title and the property can be sold, transferred and willed, similar to any property in Canada or the U.S.
Invest in Mexico to receive vacation property revenue
Mexico has traditionally been the most popular country in the world to buy a second home. It is a short flight for travelers from the U.S. and Canada and flights are relatively inexpensive.
Smart investors are realizing that with real estate prices so low in Mexico, it’s the perfect time to buy an investment property. Renting out your vacation property is money in your pocket and will allow renters to help amortize your mortgage for you. It may also be a tax write off for you. You may be able to write-off interest on your mortgage you used to purchase the property as well as expenses such as insurance, maintenance repairs, travel expenses, any legal and professional fees. It is recommended to consult an international accountant to discuss what you can write-off.
Vacation rental properties continue to be a desirable accommodation for travelers. According to TripAdvisor’s fourth annual vacation rental's survey, nearly half (49%) of respondents plan to stay in a rental home in 2014. This is up from 47% in 2013 and 40% in 2012. According to the U.S. Department of Commerce, Mexico remains the top international destination for U.S. and Canadian travelers. Mexico continues to be a destination of choice for many people around the world. In 2012, the Ministry of Mexico Tourism reported a record high in domestic and international tourists with 190 million visitors. This number is up 3.7% from 2011 with 183.2 million tourists.
With more and more people visiting Mexico each year and an increased number of travelers looking to rent a vacation rental property, this is the perfect time to invest in Mexico property for rental revenue.
Invest in Mexico for a better quality of life
The warm weather, slow pace and lower cost of living make for a desirable location when investing in Mexico real estate. Investing, retiring and living in a country with a hará mañana (‘will do tomorrow') attitude symbolizes the laid back quality of life that people dream of. This feeling is especially apparent along the Oaxaca coast of Mexico. Being dubbed as ‘Mexico Without the Crowds, or Attitude' and a place that provides travelers and expats with ‘beach bliss', Oaxaca is an attractive place to slow down and enjoy life.
The low cost of living in Oaxaca also makes it the perfect investment spot. Statistics have shown that one can live in this State for half the cost they do back home without sacrificing the luxuries they are used to. Delicious organic fruits and vegetables are literally half the price of Canada or the U.S. and luxuries like spas, maid service and dining out are easily affordable.
From it's low cost of living to stress free lifestyle, the Oaxaca coast is perfect for those who want to shift life down a gear or two and enjoy their retirement or investment property. Invest in Mexico today and take advantage of these opportunities. [hr]