Making the decision to invest in real estate in Mexico can seem daunting at first, but as with everything knowledge is power and we’re going to show you exactly why buying real estate in Mexico is safer and provides better return on investment than the stock market... If you know where to buy and how to choose the right kind of investment property.
Here are five reasons it’s safe to invest in Mexico real estate, along with some tips on location and the best types of investment properties to achieve great return on investment.
1. Travel in Mexico is Safer Than Many U.S. Cities
Mexico is one of the world’s top tourism destinations and is the top retirement destination for Americans who want to spend all or part of the year in a warmer climate. Despite (often inaccurate) media portrayals of violence, it’s important to keep in mind that it remains isolated along the country’s northern border and that millions of people from around the world visit Mexico safely each year. Also, there are no safety advisories in effect for popular tourist destinations like Cancun, or Playa del Carmen, Cozumel, Puerto Aventuras and Tulum in the Riviera Maya. Finally, the assault rate in the U.S. is actually five times higher than it is in Mexico according to the U.N., and even highly populated Mexico City is four times safer than Washington D.C.
2. Foreigners ARE Permitted to Own Property in Mexico
Some would-be buyers are discouraged from making the decision to invest in real estate in Mexico because they are unsure of the rules for buying property, but in reality the steps are quite simple. The law states that foreigners who buy real estate within 50 kilometers of the coast must set up a fideicomiso, which is just a three-party fiduciary trust that permits a financial institution to hold the property title in your name. As the rightful owner of the property and as the only beneficiary of the trust, you are free to do what you want with the land, provided it falls within the local building laws, etc.
3. World’s Largest Untapped Real Estate Market
With real estate in Mexico – as with anywhere else – it’s all about location. Here, the real growth is happening in Tulum, which lies just south of Playa del Carmen and the Cancun International Airport in Mexico’s Riviera Maya. Known for having the best beaches in the world, the Tulum real estate market is about to experience a major expansion, but has already been smoldering hot for years.
4. Unbeatable Investment Property Rental Income
Mexico’s Riviera Maya region also boasts incredible occupancy rates, which translates to great opportunities for real estate investment, especially in vacation homes that double as income producing property when not in use. Combine this with the fact that the Tulum real estate prices are still very low compared to other top beach vacation destinations and it’s easy to see why people are making money in Mexico.
5. Portfolio Diversification and Capital Protection
Buying land in Mexico provides investors with much more than just access to great rental income and rapidly appreciating real estate, however. It also offers a hedge against inflation over time and much-needed diversification for your investment portfolio. Also, because real estate is a “hard asset,” it also provides an added level of capital protection, since property and land retains a value that is independent of the nominal value of paper currencies and fluctuating markets.
Do you have additional questions about buying Mexico real estate? Let us know in the comments!
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