Remington Financial Group loans, investing in Mexico

Investing in Mexico

There are many reasons Remington Financial Group (RFG) has extended its growth to Mexico. Among these is the proliferation of opportunities for potentially very rewarding long-term investment opportunity with limited risk. For comparable product types, cap rates in Mexico are approximately 200 to 400 basis points above U.S. cap rates. With its increased gross domestic product (GDP) per capita, vibrant economy, and the strength of the peso, investing in Mexico has never looked better. The country’s foreign direct investment is at an all-time high. Additionally, Mexico’s political climate is more open to investment than ever before. Changes in foreign investment laws, as well as the institutionalization of properties by U.S. Title Insurance companies, are two reasons for increased confidence among foreign investors. Institutions like AMB, Hines, ING, JP Morgan, ProLogis, and Prudential have already made considerable commitments in Mexican real estate.

U.S. buyers continue to be encouraged to buy Mexican real estate, since Mexican properties continue to be much cheaper than those in the U.S. Also, property taxes are very low in comparison to the U.S. and Canada. Homebuyers in San Diego, California or Phoenix, Arizona, for example, are more frequently being pushed south, where real estate is more affordable than it is stateside.

Real estate investment opportunities also abound surrounding tourism. Approximately 300,000 to 500,000 Americans and Canadians take extended vacations of over four months, which translates well for very profitable weekly rental properties. The allure of beachfront vistas, vacation homes, and retirement villas are among the many reasons that over 1.5 million Americans now own property in Mexico.

The property market is booming. Although the sale of single-family second homes continues to rise in the U.S., baby boomers are traveling and looking to spend their wealth in locales outside of their home country. As the richest generation in the history of the world, baby boomers are purchasing real estate abroad, with wealth from the economic boom of the ‘90s.

The government in Mexico provides reasons for investing in Mexico and highlights promising areas of investment in Mexico.