Mexico - Hot Market?

Mexico could be the new place to invest, according to an article last week in the San Diego Source.

With low cap rates and high real estate prices dominating the US market, more and more investors are snapping up real estate in Mexico.

Add to that the current health of the peso against the dollar, Mexican property is looking very tempting to the US investor.  Why is the peso performing so well?  Increased exports, low interest rates, availability of cheap labor, ties to the U.S. economy and an inflow of funds from a rise in the price of international commodities, including oil, are all contributing to a healthier peso.

However, owning land in Mexico is still complicated by mounds of red tape.  To own real estate in Mexico, a US company must first become a Mexican company and pay taxes to the Mexican government, not the US.  Commercial properties are typically secured by a guarantee trust, not a deed of trust.

To avoid becoming bogged down in red tape, many US companies have decided to partner with Mexican firms in place of becoming one.  This means that Mexican investment firms are suddenly seeing their project portfolio double in size.

Read more in the San Diego Source.

For more information on emerging markets, contact Pacific Security Capital at www.pacificsecuritycapital.com or call 1-800-844-6085.