Foreign investment and trading expert, Pablo Soria de Lachica believes the second half of 2016 represents one of the best entry points into the Mexican real estate market investors have seen in the past twenty years, even as the U.S. market remains attractive to wealthy Mexican nationals. Differences in property trends between Mexico and the United States offer insight into investment strategies and opportunities.
In Mexico, improved economic and monetary policies and a growing, youthful middle class is driving an expansion and high demand for both new and resale housing. In contrast, aging American baby boomers and their adult children are down-sizing their primary home. Pablo Soria de Lachica makes the comparison of Mexico to the United States during the 1960’s when the U.S. workforce surged and there was a lot of wealth creation. Demographic trends in Mexico continue to be favorable for housing demand over the medium term. According to the UN’s latest population estimates, the median age of Mexico’s population is around 28 compared with 38 in the United States.
Pablo Soria de Lachica notes the peso is at an all time low against the dollar and the increasing availability of long-term mortgages with favorable borrowing costs, growing personal wealth, and productivity gains are making housing more affordable for millions of potential new buyers creating a robust domestic market. Taking into consideration all these factors and low unemployment, Mexico is on track for sustainable growth over the next couple of decades and is by far the most attractive Latin American investment choice.
In the USA, wealthy Mexicans are purchasing properties mostly in California, Texas and Florida – accounting for approximately 9% of all U.S. sales to foreign buyers according to the National Association of Realtors, earning Mexico a fourth place rank, after China, Canada and India, in international purchases of U.S. residential real estate in 2015, a trend that is continuing in 2016. On the other hand, North Americans are investing in condominiums as vacation homes or rental properties on the Riviera Maya, particularly in Playa del Carmen and Tulum. Ownership rules near the Mexican coastline, and specifically beachfront, are very different for foreigners compared to Mexican citizens, Pablo Soria de Lachica suggests having a professional realtor and lawyer to make real estate transactions or investments go smoothly. Either way, U.S. and Mexican property trends indicate a great environment for significant return on investment.
Pablo Soria de Lachica is a worldwide leader in the financial services industry and authority in the foreign exchange market. He has developed online trading tools for investors and published papers on the basic principles of investment as well as advanced techniques and strategies. Soria de Lachica continues to share his observations on current trends in the marketplace through his blog, while collaborating with Kartoshka, a global company at the forefront of the latest technologies in sales, telemarketing, and customer support. He has a Master of Business Administration from Universidad Tecnológico de México (UNITEC).
