While the United States is just over the boarder struggling with the housing market, the Mexican housing market looks good and investors are taking notice.
President Felipe Calderon has set an impressive goal for a country that normally takes on the hits the US takes. He is planning on seeing a million new mortgages in Mexico by 2010. He is not just sitting back and hoping it happens, though.
In an announcement scheduled for Monday, Calderon will provide plans that will help to keep Mexico moving in the right direction with growth in housing markets here. In addition, he will talk about the resale market here, which is relatively small and provide his plan to handle urban sprawl that is becoming a problem.
The housing boom here is being helped by several factors. First, the economy is doing well. There is some indication that Mexico is worried about the effect of the likely US recession, but the central bank held the benchmark lending rate here steady this week, in hopes that this would combat the problem. The Mexican economy has seen economic growth for the last six years.
Other benefits to the markets here include interest rates. Although unchanged recently, these rates are still affordable. The key here is that only 6 per cent of homes here are mortgaged. Many Mexicans inherit properties. Delinquency rates are staggeringly low in comparison to the US. Just 4 per cent in last year's fourth quarter.
Investors are taking note of these improving economic times here. A vast number of opportunities exist here. With house values steadily increasing and demand high, the opportunities are potential short and long term benefits to investors.