CHAPTER TWENTY-ONE: Property Investing in Mexico

Bordering the US, Guatemala and Belize and with coasts on the Pacific Ocean and the Gulf of Mexico, Mexico is an exciting and vibrant nation filled with Latin spirit. From the hectic clutter of Mexico City to the lively coastal resorts of the Yucatan Peninsula, the country offers a wealth of experiences. Mexico has it all – superb beaches, an enviable climate, bucketloads of culture and 10% of the world’s known species – and, in recent years, an increasingly stable and secure environment for foreigners wishing to buy property. The countryside is also extremely varied, from semi-arid desert in the north and volcanic mountains in the centre, to tropical terrain in the south. The remains of the Mayan civilisation add an exciting dimension to the country.

Today’s Mexico is among the fastest-growing industrial powers in the world, with cities boasting 21st Century facilities and an increasingly good transport infrastructure. The country has a free market economy which recently entered the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Mexico has twelve free trade agreements with over 40 countries, putting more than 90% of its trade under such agreements. GDP growth was 3% in 2005, whilst inflation dropped to 4.1%. The next government, due to take over in 2006, will be expected to confront the challenges of boosting economic growth, improving Mexico’s international competitiveness, and…