Jul 28
Texas Buy Back
Mexicans Are Buying Back Texas, One Piece at a Time
The rise of the peso against the United States dollar has some Mexican developers looking north to invest in Texan property. The Mexican economy is growing steadily, and faster than the US economy, at about 2.6 percent a year and the peso has gained 3.2 percent on the US dollar since January of 2008. In comparison, the US economy is expected to see a 1.4 percent growth in 2008.
Mexicans are seizing an opportunity to purchase foreclosed properties in the southern Texas areas close to the US-Mexican border such as Mission. Mexicans with money to invest are seeing the housing and real estate slump as a perfect time to diversify their holdings. Investors are finding bargain prices in the current sluggish climate. All that’s needed are the funds and a valid entry visa into the US.
Even though Texas hasn’t taken as bad a hit as other regions, home sales in the first quarter of 2008 have dropped 12 percent and foreclosures rose 20 percent from the same quarter a year ago. Investors from Monterrey, Mexico, are eying the southern Texas area as an excellent investment opportunity, and most are purchasing property with plans to develop it in two or three years when the real estate market is expected to begin to turn around for the better. Some, on a more personal level, are looking for retirement homes or for housing for their children studying at Texas colleges and universities.
Regardless of the reason, southern Texas needs an infusion of cash to boost its flagging economy and investors from Monterrey are glad to help out. Thus a new Tex-Mex connection is being forged.