06 October 2008
Mexico emerges as popular property investment for Canadians
Canadian property investors are increasingly investing in Mexico as they regard the US market as not a good prospect at the moment.
An increase in the number of flights from Canada to Mexico and a desire to avoid the volatility of the US market means more are buying second homes and investment properties further afield.
One investor, Doug Walker, had considered buying in Hawaii and the Caribbean. He wanted a holiday home to which he and his wife could eventually retire. 'We were looking for something special but we also wanted to make a good investment,' he said.
He has now bought a home overlooking the Sea of Cortez and the 18th hole of a private golf club on Mexico's western coast.
Walker is not the only Canadian looking to Mexico for a good investment. According to Alfonso Sumano, the Mexican Tourism Board's regional director for Canada, more and more Canadians are holidaying in Mexico and then deciding to invest.
This year flights arriving in Mexico increased by 9.2% and this has made Mexico an easy destination to reach and boosted interest.
'Canadians can leave home in the morning and be on the beach by lunchtime,' said Sumano. Although he could not provide any official statistics for the number of Canadians buying property in Mexico, he said the number had increased substantially.
At Querencia, the luxury gated community where Walker has invested, about 10% are owned by Canadians. Jorge Carrera, president and chief executive officer of Querencia, said he has seen an increase in interest from Canadians.
'My last five buyers have been Canadians. We haven't really targeted them but with the interest we are getting, we are looking to attract more Canadians,' he added.
He reckons that the strong Canadian dollar, low property taxes - just 0.25% of a property's assessed value - and a very low cost of living make Mexico an attractive location for property investors.
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