There has been fervent discussion about the impact of US recession on Mexico Real Estate and its future prospects. When talking about Mexican Property market, it may seem that it is closely related to the US real estate. Some may very well paint a gloomy picture for Mexico Real Estate market. But an in depth study of Mexico Real Estate will reveal a bright future for Mexican Real Estate in the coming year.

The real estate in Mexico has witnessed steady appreciation in the last 5 years. Both, homes and condos in Mexico, new and resale have contributed to this growth. The real estate market in Mexico is usually popular with American citizens who look for a second home or vacation home in Mexico. The reasons for this popularity have been its close proximity to USA, low cost of living, better value for money and a warm sunny climate. Recent years have seen thousands of American expatriates buying retirement homes in Mexico. Moreover, infrastructure in Mexico has improved to international standards. This has made Mexico a much sought after destination.

You may very well ask why Mexican Real Estate industry won’t suffer as a consequence of the recent fall of US economy.

Destination like Cancun, Playa del Carmen, Puerto Vallarta , Baja California region are very popular with real estate investors in Mexico. These areas are continually seeing new and grand real estate projects conceived and completed to meet the demands of the buyers eager to buy real estate in Mexico. With the introduction of Mortgage financing for foreign real estate investors in Mexico, the increase of foreign investment has strengthened the growth of real estate market in Mexico. Since, the lending process and criterion for foreign real estate investors has been simplified, it has served in increasing enthusiasm for Mexico real estate.

Mexico real estate market is much more stable than US real estate market. The residential mortgage backed securities, popular in the US property market, are not common in Mexico, so have a much less effect of the sub prime crisis afflicting US economy.

Another factor is that the buying market who are looking for the second vacation home is not really experiencing too much of the current recessionary effects in America.

One very interesting development seen in Mexican real estate market is the increase in real estate investors from Canada. Canada has experienced a very strong dollar in recent times. Strong economy and increased property markets, especially in the main areas of Toronto and Vancouver , have led to a large number of Canadian home owners able to spend money on a second or Vacation Homes in Mexico.

Mexican real estate market seems to be a promising and steady destination for investors throughout the coming years. Recessionary influences of the US have not shown any medium to long term negative impact so far on Mexico Property Market. Foreign investors from Canada and Europe are flocking to Mexico compensating for any dwindling of investment from USA. So go ahead and buy your dream vacation home in Mexico and secure your investment for the future.

Author: Insight Advisors

Yes, there is a large group of people who have great opportunities in front of them right now. Some of them just don’t know it yet. Move up Buyers, First time buyers, Investors and Builders with cash for inventory are all in a good position to take advantage of this downturn market.

We are now seeing the best opportunities to purchase in several years. Competition for properties is low, interest rates are a bargain (3.99% for a 5 year fixed) and Canada looks like it will have the quickest economic recovery. Now is the time to make a move and create some wealth for your future.

If you look you can find a situation where you have a strong Toronto Real Estate Agent representing you and an eager seller or a property that has been on the market for a long time. Just make sure your agent is capable of negotiating and can prove that they have done so in the past.

The move up buyer is the person who currently owns their own home but is looking to buy a larger lot, a nicer home, something that is completely renovated or maybe leaving a condo for a house. It is true that you will lose money selling your existing home in the current market, but that is fine because you will be buying something at a higher price which will allow you to make back every penny of the loss and create new gains.

The real estate buyer who is in the best position is the one who was on the fence 6 months ago about whether or not they should buy a better home or someone who received a promotion or raise but has been too busy with the new job to execute a move. As long as you have some job security, now is the best time to make the jump.

If you bought your current home for $600K in 2007 and now you can maybe sell it for $500K. You have taken $100K loss. That is okay if you buy a more expensive home in the same market because the home that was bought for $1.2M in 2007 is only selling for $1M today. Therefore you make back the $100K you lost on the sale of your existing home plus you saved an additional $100K by buying in today’s market. The above mentioned situation will vary depending on your specific situation so be sure to work with your real estate agent to work out the exact figures to ensure it is a profitable move for you.

In central and downtown Toronto it does not seem like things are going to slow down much more, we are starting to see the surplus inventory dry up and there is a lag in new listings.

First time buyers are also in an amazing position to jump into the real estate market feet first. The official description of a first time buyer is someone who has never owned property before or has not had an interest in owning a property for at least 4 years.

There are a lot of government programs available to assist the first time purchaser. There are rebates for land transfer tax, both municipal and provincial, there is a tax credit to help with closing costs, and you can access $20,000 of your RRSP, tax free, for your down payment. And most importantly, at the introductory level there is a surplus of properties to choose from and negotiate for. The key is to have an agent who is not afraid to go in and fight for the best price for you.

Investment Buyers are also in buying heaven. Right now there are many homes that are available to buy that have multiple units in them. The rental market has stayed strong in Toronto proper and there are still a number of potential tenants filling the appointment books. This is the time to buy because you can lock in a low interest rate with a nominal down payment, which will allow all of the operating costs to be carried by the rental income.

The other segment of the investor buyers are builders. If a builder has sold off their finished products and are now sitting with cash in the bank they can buy up inventory at a good price for future projects and sit on them until the higher markets return.

In every market there are opportunities to be had, you just need to know where to look and be in the right position to take advantage of them.

These are heavy days for Canadian homeowners. If you’ve been in your home even a few years, you’ve probably already enjoyed a modest climb in the value of your home. Even if you don’t intend to sell, it’s good to know that your real estate investment is doing well. But we’re also enjoying an environment in which mortgage rates have reached historic lows.

That combination — strong valuations and low mortgage rates — has an unprecedented number of Canadians looking for ways to capitalize on the great opportunities available to them.

Whether it’s to buy their first home, trade up, or take equity back out of their homes, Canadians are jumping at the opportunity to borrow at today’s rock-bottom rates.

While many homebuyers are reconsidering the value of fixed-rate mortgages to lock in those low rates, you should keep in mind that adjustable-rate mortgages – the darling of the dropping rate trend – can still offer real value to homeowners. It’s a matter of finding the right combination of mortgage features and options.

As banks have been joined by other lending institutions, we have seen our menu of ontario mortgage options grow accordingly – with some innovative new mortgage types now available to help Canadians take advantage of today’s unusual opportunities.

One of the most innovative mortgages we’ve seen in a very long time is a new adjustable-rate mortgage with some very compelling features. First, it’s based on an institutional rate benchmark known as Bankers Acceptance. Most of us are familiar with the rate benchmark known as Canadian Prime – and we are accustomed to assessing mortgage rates based on Prime. The BA, on the other hand, is the rate at which banks will lend money to one another – and it’s typically a lower rate (sometimes much lower) than the prime rate offered to a bank’s best customers. The new BA-based mortgage – compared to the best prime-based mortgage available – could have saved a mortgage client a bundle over the last several years, primarily because the prime rate tends to be “stickier” in an environment where rates are falling. Often, the more fluid, market-based BA rates deliver the rate change more quickly. The BA rate is no trade secret, by the way; pick up a copy of your favourite financial paper and look for the published money rates to find the Bankers Acceptance Rate.

But the attractive rate structure is not the only perk. The same BA-based mortgage – so welldesigned to help clients wring the last quarter point from their mortgage rate – now also comes with a rate cap which guarantees that your rate will never climb higher than 2.15% above the starting base rate – no matter what happens to rates during your mortgage term. There’s no worry about locking in too high because the rate is always adjustable down.

Only the ceiling is fixed. It’s a homebuyers’ dream:

A mortgage with limited upside and unlimited downside. If you’re thinking about buying a home this year, or you haven’t had your mortgage reviewed in the last several months, take the opportunity to get an expert assessment of your many options from a mortgage professional. It could be the best investment you’ll make this year!