In todays economy the best and safest investment oddly enough is actually in buying and selling Mexico real estate. Let me give you a real life example so you understand exactly how this works.
In 2007 a gentleman from the United States bought a small home from me. The selling price including all closing costs came to $44,900usd. This client purchased with the thought of a pure investment versus investing the money in a bank, the stock market or any number of other "safe" investments with safe returns. To many people in the investment arena this would sound very risky or ill advised. However, when you take a closer look at what has happened with Mexico property over the last ten years most would agree that this is a very sound business move. This is especially true of homes and land near the beach in the Riviera Maya of Mexico. In places like Playa del carmen homes for sale have doubled and some cases tripled or more in the past decade. Even with the news media and everyone claiming a terrible economic crisis, still the property values remain and increase.
To continue with this case study, in December of 2007 the client bought this home in the Riviera Maya and paid under $45,000usd for the home. This same client contacted me in late 2009 asking me to put the home back on the market for the asking price of $72,500usd and this price would include the closing costs. From December of 2007 until December of 2009 the only thing that was done to this home was painting of the exterior. The cost of paint and labor was approximately $500usd. So now the client has a total investment of $45,400usd.
The home was sold in January of 2010 and the final agreed upon price was $71,000usd. The closing costs paid by the seller would be about $5000usd so that leaves $66,000usd. That is all within a period of just one month over 2 years or 25 months. If you do the math that is a return on investment of about 45%. Now let me ask the question, if this same client had not purchased property in Mexico and instead invested this same money in any other place would there have been a 45% return on investment? I challenge anyone to find something legal where in 25 months you could see that type of return.
This is something that happens frequently in Mexico and purchasing now is very easy for foreigners. There are a few things that an investor needs to know and look for prior to buying a specific property in Mexico but if you do your due dilligence you will find that many deals like this still do exist. In a bad economy if you are in investor this is the best time to find these type of properties in Mexico.
If you want to find cheap Campeche real estate you should also check my Mexico beachfront listings