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Why Millennials Should Be Investing in Mexico Real Estate

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Millennials, a group also known as “Generation Y” and the “Peter Pan Generation,” is a demographic group that includes anyone who was born between 1980 and 1995. According to the Pew Research Center, millennials have officially overtaken Baby Boomers as America’s largest generation at more than 75 million, and now they are also revolutionizing the real estate investment market in Mexico. This is due in part to their interest in Mexico luxury condos and vacation homes, as well as Mexico’s version of the Real Estate Investment Trust, or REIT, which are known as Fideicomiso de Inversión en Bienes Raíces, or FIBRAs.

“If I were starting my career, especially if I lived in a nation where I couldn’t explore my full potential, I’d try my luck in Mexico,” wrote Larry Fink, CEO and Chairman of BlackRock. “Why? Because Mexico is finally beginning to unlock its true potential as an economic powerhouse.”

According to a report by Finamex Casa de Bolsa and research by The Visionary, property searches on the Web are very common for millennials, who are eager to get involved in real estate investment. One thing that characterizes millennials in relation to the real estate investment market is investing in luxury condos, vacation homes and other properties that boast a modern design and lean toward expensive tastes.

“Real estate investment provides the ability to capitalize off a long-term strategy without a high-dollar commitment,” wrote Sherman Bridge Lending. “Unlike investing in the stock market, investors do not have to suffer unease or panic of its finicky nature.”

On a macro level, the goal of any real estate investment is to acquire a property in order to profit from it, either by renting it, which is where vacation homes in places like Mexico come into the picture, or by selling it. For millennials to invest in real estate successfully, it is imperative to inculcate the value of savings from childhood.

Of course, as we mentioned, another way of investing in Mexico real estate is to allocation a portion of your portfolio to FIBRAs, which are essentially investment vehicles that are responsible for renting and managing Mexico luxury condos, vacation homes, commercial buildings, developments and other properties that offer a decent return on investment (ROI). So a FIBRA portfolio may consist of residential real estate, office buildings, shopping malls, hotels and even hospitals. Furthermore, FIBRAs are typically diversified by property type and by the number of units, type of tenants and geographical location. Thus, the properties are intended for lease or acquisition of leasehold.

“These securities typically own thousands of rental units, which allows their shareholders to benefit from economies of scale,” wrote Investopedia. “In addition to creating a steady income stream, rental properties are a great way to protect and grow capital.”

Want to know more about investing in Mexico real estate?

Investment Properties Mexico can help you with every aspect of finding vacation homes and buying a house in Mexico! We have the necessary experience to guide our clients through every step of the real estate investment process, so click here and contact us today – we have the connections to help you find the best vacation homes and Mexico luxury condos on the market.

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