11 November 2018
With this article, we begin a series of publications on investments in the Mexican economy. We will tell you about promising industries, interesting types of business in terms of investments and the potential profit that an investor can receive.
The first article focuses on the most obvious investment object which is real estate.
Like any other tourist country, Mexico receives millions of tourists every year. In recent years, tourist traffic has been growing by more than 10% over the year. For example, in 2017, Mexico was visited by more than 40 million people, and according to forecasts for 2018 this figure will increase by another 5 million. The industry is one of the three leaders in the Mexican economy and annually brings more than 21 billion dollars into the country's budget. And this is only in the form of taxes and other fees. As for the profits of citizens, it is even difficult to calculate it. Only the lazy doesn’t make money on tourists here. Large investors are building hotels, entertainment complexes and restaurants with nightclubs. Developers build and sell a huge number of square meters of housing. Rentiers buy real estate or build houses to be rented out to tourists. Small and medium businesses make money on related services such as excursions or other entertainment.
As for real estate, many foreigners buy it for the investment purposes. For example, at the beginning of the 2000s, Americans and Canadians got interested in Mexico. At that time, the tourist infrastructure left much to be desired, and in many cities it was possible to inexpensively purchase either land or very spacious apartments.
By the way, large tourist centers, such as, for example, Tulum, at that time were just beginning to be built and expanded. Therefore, investors who then invested money in land or construction, as a result, were able to earn tens of times more than the initial cost. And even now, Mexico has cities like Tulum was then. They are just beginning to develop and gain popularity among tourists, and the local population has not yet been spoiled by attention, and there is an unlimited amount of building land and finished real estate is not so expensive yet. For example, the city of Mahahual. There you can still buy relatively inexpensive land of any size right on the sea coast with its own beach without any problems. These cities will eventually become new tourist centers that will allow the investor to earn more.
Now, a large one-bedroom apartment in Puerto Aventuras, near Tulum, only rented for tourists brings the owner an average of 2-3 thousand dollars a month. Considering that the tourist season here lasts almost all 12 months and real estate does not stand idle without tenants, we can assume an income of at least $ 20 thousand per year. In addition, this does not take into account the fact that over time, real estate itself increases in value. In particular, on the Caribbean coast from year to year, there is an increase in the cost of finished housing by 5-8%, which in the future 5-7 years will allow real estate to be sold almost twice as expensive as the initial price, if it is in good condition or preliminary repairs are made. You can manage your real estate either independently or remotely with the help of partners on the spot, who will hand it over at a good price, look after, and take care of minor repairs, and transfer the profit to the investor's account.
In the near future, the demand for real estate in Mexico will only grow. The government is doing everything at the legislative level so that foreign investors would invest money here without restrictions. Of course, you need to know the specifics of buying a home in Mexico and beware of fraudulent schemes, but there are no prohibitions for citizens of other countries in purchasing real estate. In addition, now a lot of ready-made housing is being rented in the country - from small apartments worth $ 80-150 thousand to huge villas on the coast with all amenities, swimming pools, access to the sea for $ 4-5 million.
