Home Investing in Mexico Investment in Mexico: Top 3 Reasons to Consider Real Estate Investment in Mexico

Investment in Mexico: Top 3 Reasons to Consider Real Estate Investment in Mexico

by Brent May

Investment in Mexico has been growing steadily over the years and the country is becoming one of the most popular options for retirees. Recent new reports state that Canada’s real estate market is dangerously overvalued. Mexico, on the other hand, actually offers some of the best real estate opportunities for anyone who wants to invest. Just consider the following reasons for real estate investment in Mexico and Oaxaca:

1. Mexico’s Stable Economy – Over the years the Mexican government has done all that it could to resolve political conflicts and reinstate a stronger economy. The country is slowly but steadily developing a stronger currency and lower unemployment rates. Investors place businesses where there is money revolving in a steady cycle and Mexico, after a good decade of struggling, has attained exactly that.

2. High Interest in Tourism – The majority of investments in Mexico concerns properties that are situated near beaches and the coast of Oaxaca is home to some of the world’s most beautiful beaches. This turns the country and area into one of the best tourist locations and a lot of local and foreign investors are eager to seize as much opportunity as possible. Where there are more people coming in, there will be higher profits. See our article on Oaxaca’s tourism promotion in Canada. 

3. Strong Investment Strategies – Foreigners can now acquire land via the Mexican Bank Trust or Fideicomiso Agreements. This means that they can now sell or lease their property, set up a lucrative business, and even pass their property down to their children. This is paired with exemptions for several capital gains taxes, very low property taxes, and the inclusion of free trade zones for a smoother international business.

Putting It All Together

There are generally four types of land available in Mexico and recent legislation has made it even easier for foreigners to invest in Mexican real estate. Foreigners can now own the land with the aforementioned Fideicomiso trust agreement. Even the Federal Zones can be properly rented out to investors, whether local or international. The Federal Zones are pretty much all of the land and water that goes from the high tide line to thirty three feet up the beach line. This is the commercial area for beach resorts so renting this kind of land from the government is essential for businesses.

As you can see, it is very easy to own land in Mexico. The changes in the government’s approach to real estate and the booming economy have turned the tables around. The economy is stronger, tourism is peaking, and investment strategies have been designed to favor foreign investments, especially in our state of Oaxaca. Investment in Mexico is not just getting better but it is at its best condition yet, therefore it is only reasonable to grab the opportunity while it is still there.

If you’re interested in learning to buy property in Mexico, you can sign up for one of my free webinars here. 

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