US crisis and its implications for Mexico Real Estate

U.S.A. is hurtling from one crisis to another. It narrowly avoided a potentially embarrassing debt crisis only to be downgraded by S&P. This clearly signals that how global investors now perceive USA as an investment destination. USA is confronting high employment rates for which it has no solution in coming few months. With no recovery in sight stock markets are awashed with negative sentiments and are tumbling every other day.

For US citizens this is a peculiar problem. Stock markets which have been a huge component of their investments is not longer a safe option given its volatility. Real estate prices never ever recovered after the subprime crisis. They are short of any viable investment options at least in USA.

In midst of all this mayhem and turmoil there is one place which remains a solid investment destination now and forever. Mexico real estate has emerged as a safe bet for investors who are looking for not only stability but also potential returns in future. Recent drop in Mexico real estate prices are boon for those investors who have burnt their hands at US stock market and want to invest in a stable market with good potential upside.

Naturally, a question will arise – US real estate prices are also low, so why not buy it there. The reason why US real estate market is not apt for investing right now is that prices in US market will be very slow to rise. There is a glut of inventory in the market and many foreclosures are yet to be put in to the market. So, if you want to buy real estate solely for investment purposes and not as a primary residence then real estate in Mexico is the way to go.

Mexico home prices are the lowest in last 5 years, interest rates are at an all time low and there are no foreclosure problems in Mexico. Mexico is a very popular destination for tourists and will remain so for a long time. Mexico is also a very rapidly developing country with a strong and resilient economy. This means that the demand for real estate will always be there and will only rise in next few decades.

Another factor that makes Mexico such a good real estate investment option is that baby-boomers in USA have been severely affected by the recession and have seen erosion of their savings. In this scenario, it is difficult for them live off their savings for their entire life with same kind of luxury. Mexico is an inexpensive place to live. Retirees can enjoy a luxurious lifestyle with all amenities and facilities for a longer time.

So, if you are an investor looking for an option to park your savings or a retiree who wants to prolong his savings, then Mexico Real Estate is the safest choice.