Select Mexico Properties

In a recent interview with Fox Business News, Garry Garrabrant, who is real estate billionaire Sam Zell’s partner, explained what happened to the US market and why buying real estate in Mexico makes so much sense.

According to Garrabrant, the US real estate market has collapsed in part because home builders in the US were building to meet a “perceived” demand. With an abundance of credit and a “build-it-and-they-will-come” philosophy, US home builders simply overbuilt in so many markets that when changes were made to consumer credit, there were too many houses valued too highly and not enough real dollars to support them.

In contrast, credit is a very new concept in Mexico. Consumer credit, including mortgages, was virtually unheard of. Real estate transactions were conducted as cash transactions, and not surprisingly, not many people had enough cash to buy a home outright.

Mortgages and other forms of consumer credit are now available. The Mexican economy is strong and growing, and people have more income than they did in the past. There is such a pent up demand for homes that the housing market has what Garrabrant terms a “virtually unlimited demand.”

This bodes quite well for investors who are thinking of buying real estate in Mexico. Right now, land prices are still quite affordable, even in premium locations along the Pacific Coast, like Puerto Vallarta. You’ll never find a comparable piece of land in the US for what you’ll pay when buying real estate in Mexico. With the demand, however, these premium parcels of land won’t last long. Aside from competing against the domestic demand for land, you’ll also soon be competing against retirees from all over Europe and Asia who are looking to avoid the high cost of retirement living by – you guessed it! – buying real estate in Mexico.

Select Mexico Properties has some of the most beautiful properties along the Pacific Coast in Nayarit, just minutes north of Puerto Vallarta. You’ll be able to take advantage of all that Puerto Vallarta has to offer, while at the same time enjoying a peaceful retirement home in the foothills of the Sierra Madres. These parcels are selling out fast. If you would like more information about how you can take advantage of the huge investment potential of buying real estate in Mexico, please don’t wait. Contact a Select Mexico Properties sales representative today.

Photo Credit: Andrzej Gdula