Now is the time to buy in México

Principal advantages of investing in Mexico

México is an attractive destination for foreigners who wish to have a second home. Besides its well-known tourist and cultural attractions, it offers properties at a lower cost than the United States and Europe. In fact, in 2007, International Living magazine rated Mexico as first place in its annual list of “Best Places to Retire”. In particular, the article cited the availability of modern services, access to quality health services, good real estate opportunities and a wide range of attractions.

"Mexico has a strategic geographical position with great natural beauty as well as an exceptional demographic advantage. Additionally, the diversity of its productive sectors, solid relations in international business, economic stability and a notable political maturity make Mexico one of the best destinations for international investment.”

The Advantages of Investing in México

• Location

In terms of geographic location, México is the foreign destination that is the closest in proximity (generally speaking) for the American consumer market, and the second closest for the Canadian market. In contrast to other competitors in Central America and the Caribbean, Mexico has a wide array of destinations that are apt for carrying out real estate development projects. In addition, it has a fully equipped airport and highway infrastructure for easily transporting its visitors

• Attractions

Besides offering a considerable number of beach destinations (Cancún and the Riviera Maya), most with a highly developed infrastructure, Mexico also offers a variety of recreational and cultural attractions that are unsurpassed on the entire continent. This was a key factor for the International Living magazine to designate Mexico as the best place to retire in 2007.

• Cost

Despite having a cost-of-living index that is similar to (or, in some categories such as medical or personal attention services, even less than) fully developed countries, generally speaking the price of vacation homes in Mexico is 50% less than destinations such as Florida or Spain.

• Potential for Property Appreciation

Market trends on home prices are difficult to predict. However, it is important to point out that Mexico has had a stable real estate track record, one which has been immune to the excesses and turbulences that have been observed in the United States and other European markets recently. Furthermore, according to Softec estimations, the average price of vacation home living in Mexico showed an average annual increase of 8.7% between 2002 and 2007, a capital gain which is competitive with other investment options.

• Language and the Community

Around one million Americans reside in Mexico, making up 25% of the total number of American citizens living abroad. All of Mexico’s most important cities as well as the main tourist destinations have a well-represented community of American citizens. Additionally, knowledge of English as a second language is more extensive in Mexico than in most of the region’s countries.

How can I buy Mexican real estate?

Article 27, Section I of the Mexican Constitution prohibits foreigners from directly purchasing real estate property located within 100 kilometers (62 miles) of Mexican borders and within 50-kilometers (31 miles) of the Mexican coastline. This area is known as a “restricted zone”. However, the Foreign Investment Law allows foreign investors to purchase rights to the use and enjoyment of properties in the restricted zone by means of a trust contract.

A trust is a legally-binding instrument that permits foreign investment in Mexico. This contract grants the same rights and obligations that a Mexican landowner would acquire upon purchasing real estate in his country.

* Source: PROMEXICO.gob.mx