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Americans buying second homes in Mexico has grown increasingly common in the past few years due to new laws and the proliferation of real estate companies specializing in this market opening up shop in the United States.
The opportunity to buy property at incredible prices south of the border has enticed many Americans to jump in on the bandwagon.
And now, as a “mortgage boom” is being proclaimed in Mexico, providing housing for thousands of low-paid workers, foreigners buying property in Mexico is expected to become even more popular and mainstream.
A January 15, 2007 article by Ronald Buchanan of The Latin Business Chronicle, “Real estate: Mexico mortgages spur boom,” discusses the current real estate frenzy that is going on in Mexico.
“It may lack the frenetic activity of Panama or the bargain-basement prices of Argentina, but the Mexican real-estate market is growing as never before on the basis of the nation's new-found economic stability.”
“The growth is evident in all areas: commercial, industrial, vacation and retirement properties, and upscale housing, but nowhere more than in low-cost homes. Hillsides on the roads leading out of the working-class north and east of Mexico's huge capital are peppered with housing developments.”
Many of these people who will now live in the new developments earn as little as $4,000 a year, so the new homes are much appreciated.
“They are beneficiaries of a silent revolution in Mexico's capital markets — ‘like electricity, you can't see it, but the lights sure go on,’ as one banker said — that led to the construction of more than 3 million low-income homes during the six-year presidency of Vicente Fox that ended last December.”
This economic stability in Mexico is something that seems to be spreading across the whole country, and add to this the fact that Americans are bringing in a lot of money by buying property and patronizing the shops and restaurants, and the future looks extremely bright for all.
All of this is because of a new program in mortgage securitization.
“A key has been the securitization of mortgages, a development launched by specialist lender Su Casita; high growth rates have attracted international banks to structure the bonds, and last year Su Casita's portfolio grew to almost $700 million. Infonavit, the government housing agency, has joined in, but there is still plenty of room for growth: mortgage-backed securities still account for only about 0.2 percent of GDP, compared with some 10 percent in developed economies.”
Mexico’s foreign-owned banks are also pitching in, and the development of a lot of American-backed developments is also fueling the growth.
“Donald Trump's $200 million Trump Ocean Resort Baja Mexico has highlighted a slew of US-financed developments in areas such as Baja California and Puerto Peñasco, Sonora (better known to Arizonans as ‘Rocky Point’).”
LEI is a preferred lender in the new Trump development, so contact an LEI Mexico agent today for more information.
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