In the past decade, Mexico real estate buyers have seen the economy, infrastructure and services in this country improve drastically. As the international recession continues to loom over the world, buyers may be more cautious, wondering what the long term effects might be, and if the current standard of living here will be effected. However, the current government is not only reassuring that Mexico will come out of the recession stronger than ever, but is taking action to help guarantee this outcome. Also, as other countries already begin to pull out of the recession, it may be a good time for foreign buyers to take advantages of price reductions in Mexico real estate, before the prices rise again.
On July 21st Felipe Calderon, the President of Mexico, announced that signs are positive that the recession will soon end in Mexico. We have been able to contain the impacts to a certain limit, said the president, and we are working hard not only to overcome the recession, but also to move ahead with more strength. The President mentioned that several positive signs indicate that economic recovery will begin soon, albeit slow. He also stated that Mexico will come out of the crisis not only surviving, but stronger with a clear direction of growing more and being more competitive.
The reasons and the results
The President noted that the government’s programs have helped bring about the new hope in the economy. Some of the most significant measures the government has taken are those to support the automotive industry, which accounts for a fifth of Mexico’s GDP, and provides income for more than 3 million families. The measures include financial bail outs, work stoppages – which have saved companies money and prevented job loss – and a new vehicle program, encouraging owners of vehicles more than 10 years old to buy a new car with a 15,000 peso subsidy.
These measures have helped keep confidence in the Mexican auto industry strong; Volkswagen is currently expanding its plant in Puebla, investing 4 billion dollars in the new expansion. This is only a fraction of the total which Volkswagen plans to invest in Mexico between 2008 and 2011. The new section of the plant is expected to create 2000 jobs directly, and more than 6000 indirectly. Calderon compared the Mexican auto industry to its main competitors – China, India and Brazil – stating that Mexico has much better conditions in terms of transportation, logistics and production for competitiveness.
This investment and confidence in the Mexican auto industry indicates the resilience of the Mexican economy, and the ability of the current government to make intelligent decisions in strengthening key areas of the Mexican economy.
Benefits and Effects on Mexico Real Estate
The competence of the current administration and the confidence with which international business continues to invest in Mexico’s economy should instill confidence in buyers of Mexico real estate . Foreigners can be confident that Mexico’s economy will continue to strengthen, which in turn will mean that the current quality of infrastructure and services will not only be maintained, but will continue to improve. More and more foreign buyers will find that healthcare, stores, availability of goods will be at least as good as what they’re used to back home – but still at a considerably lower price. Besides the availability of international items, an improving Mexican economy will provide high quality products from this country.
Another factor for potential buyers of Mexico real estate to consider now is the signs that the recession is not only drawing to an end in Mexico, but in various places around the world. As of July 23rd, the Bank of Canada declared that the recession is essentially over in that country. The expectation is that the country’s economy will grow 1.3 % this quarter (contrasted to the 1% contraction originally forecasted), and that the last quarter of 2009 will see approximately a 3% increase. The Bank acknowledged that the growth will be slow as long as the U. S. is in recession; but the turnaround for the U. S. is expected to come soon as well, although somewhat slower.
Foreign buyers would be wise to investigate the possibilities of buying Mexico real estate soon. Will signs are positive and housing prices begin to rise back home – Canada’s housing prices are already on the rise again - there are still many price reductions in the Mexico real estate market. As the international recession comes to an end and more people buy with confidence, these price reductions will also come to an end. It is better to buy before this happens. This being said, it is always necessary to buy carefully, making sure all the necessary information is found. Qualified, experienced agents, such as TOPMexicoRealEstate NETWORK, Mexico's Leading Network of Specialists for Finding and Purchasing Mexican Properties Safely, can help find the good deal that will be right for each buyer’s needs, and the information to make sure the purchase is safe.