While some optimists feel the housing market in the U. S. is about to start recovery, one key expert Dean Baker, who actually predicted the pre-recession housing bubble, is saying that prices probably won't rise in the near future. Considering this uncertainty, those who consider a real estate purchase an investment should consider a market with stronger promise of price increases. Mexico Real Estate, for example, was, by and large, less affected by the bubble or the recession, and, especially in key markets, such as Playa del Carmen Real Estate, now shows signs of healthy recovery and good potential for future increase.
As for the U. S market, Baker is sceptical that the market is stable, and feel that “it is really hard to make a case" for prices rising in the near future, citing the expiry of programs that lifted the market, the possibility of rising interest rates, and an inventory glut and falling rental rates as reasons for his scepticism.
Whether Baker is right or not, buyers can probably deduce that there's less certainty in the U. S. market then there should be. So what about that real estate investment? While some buyers have just been sitting back, accepting the drop in their current home value in an almost resigned way, some have actually been taking an active approach, and buying in Mexico, where there are good indications for real estate investment.
Consider Playa del Carmen; a very healthy growth rate – one of the highest in Latin America during the past few years – combined with a strong tourism economy has already provided many investors with one of the best opportunities. A new airport in plans, recent expansion of the nearby Cancun international airport and an a new angle coming up on emphasizing diversity in real estate and investment for the community all point to a good possibility that new opportunities for solid real estate investment will continue to appear here.
Just down the road from Playa del Carmen, about 45 minutes, is the town of Tulum. The new airport will, in fact, be built in the municipality of Tulum, just a few miles outside of town. A new urban growth plan, and a special emphasis on “green" ideas or sustainability – an ever growing market trend – put Tulum in a position possibly to enjoy a similar situation to Playa del Carmen about 8 years ago, when investors were able to buy pre-construction, and sell it at a considerable profit before the pre-construction phase was over. Tulum MLS listings currently show a good variety of property options, including condos, homes and, possibly the favorite right now, land.
Real estate owners in the U. S. should re-consider their position; instead of resigned waiting for the U. S. market, which could be longer than expected, buying Mexico Real Estate can offer a real, and profitable, alternative.