Should you be selling overseas property fast in Mexico? Mexico is a large country and is one of the most important trading partners of the United States.
It has a flourishing real estate market and attracts foreign investors from all around the world, especially from the United States and China. Here’s a look at the latest real estate trends in Mexico.
#1: The election of Joe Biden as President of the United States.
The United States is Mexico’s most important trading partner. Millions of Mexicans live and work in the US, both legally and illegally, and many repatriate their income back home to Mexico. This keeps the Mexican economy going. Mexican immigrants to the United States are the biggest buyers of property in Mexico.
President Biden has restored faith in the long-term relations between the US and Mexico after Trump’s wall threats. This has seen record levels of investment flood back into Mexico from the US.
#2: Higher interest rates will have a bearing on the property market.
The Banxico or the federal bank of Mexico has been consistently hiking interest rates over the last 12 months. Interest rates are now at 5.75 percent, up from 5.25 percent in December 2016. It is expected to be raised further to 6.25 percent soon.
Higher interest rates will have many consequences. For one, the mortgage rates are expected to be higher. This will have a direct bearing on the property market as it will slow down buying activity for a bit. One should get used to a regime of higher mortgage rates in Mexico for the foreseeable future.
#3: Rental Prices are expected to be high.
One of the biggest reasons for people to buy their own homes in Mexico is the high rental prices in all cities in the country, especially in Mexico City. Rental prices are expected to be 0.7 percent of the value of the property per month. This is ridiculously high and indicates that there is a serious bubble in the rental market in Mexico that is waiting to bust.
#4: Foreign investors will feature in a big way
With Mexico becoming a significant country economically a number of international business executives will look to move to the country because of their business interests here. Foreign investors from the United States, Europe and China are expected to buy properties in some of the prime neighborhoods in Mexico such as Del Valle, Narvarte, Roma, Napoles and Condesa in Mexico City. This is certainly good news for those of you who are looking to sell your property quickly in Mexico.
