Seven Important Reasons Not to Invest in Mexico - Unless ...

by Enrique (Henry) Saldana  (August 2012)

The article in this month's Sac-Be newsletter, "Chan Chemuyil: Some Homeowners' Concerns," has prompted me to release the following article. This article serves to support the fact that foreign real estate investors in Mexico need to be more careful and practice a more thorough due diligence process whenever purchasing property in Mexico. If you feel you may have a similar problem, contact us. WE MIGHT BE ABLE TO HELP!

It is said that Miami is the capital of real estate and mortgage fraud in the USA, and I thought I had seen it all. However, and though I must confess that I have had my share of deals gone wrong whereby I have had to make up for lost fees from client's funds, the real estate industry in Mexico has far exceeded all expectations, and still continues to amaze me time and time again.

The seriousness of some of these "problems" has prompted me to write the following series of articles: "7 Important Reasons Not to Invest in Mexico - Unless ...", which you may receive by registering and sending us a request through our email address, or you may wait to see them published in this online magazine.

Our intent in the drafting of these series of articles, is not to discourage investment in Mexico, but to encourage investment through a more integral, thorough, and conscious effort of providing important information and bringing awareness to foreign national real estate investors as to what can go wrong in any real estate purchase investment transaction in Mexico, and how to avoid it.

Proper disclosure, as it is called in the USA; or transparency, as they call it in Mexico, should be an important part of every real estate transaction in Mexico. Unfortunately, to a greater extent, it is not, and thus the constant deficiencies of the system.

Nor is it our intent to promote only the negative aspects of real estate investment in Mexico, for there are many good deals in Mexico, and very many good, honest and responsible developers and real estate practitioners (realtors), but they must be properly identified. There is no properly identifiable real estate organization, outside of the so-called AsociaciĆ³n Mexicana de Profesionales Inmobiliarios (AMPI), or Mexico's NAR analogous organization that, so far, has not been able to provide the certainty required by the foreign national real estate investor with regards to professional standards and legal guarantees in the real estate industry in Mexico.

Some might say, the reason is that AMPI is an organization that has yet to incorporate a greater number of real estate practitioners presently working with foreign national real estate investors, not to mention the fact that they have very elitist admission policies, according to the general view of real estate practitioners in Mexico.

So if you are interested in learning the "7 Important Reasons Not to Invest In Mexico - Unless ...", send us an email to add your name to our registrar's mailing list,

These seven important reasons are explained in the context of Mexico's cultural myths, fallacies and idiosyncrasies, and how they affect the way the business of real estate is conducted in Mexico, not to mention the fact that the lack of a regulatory governmental entity that may oversee these problems and an outdated and faulty legal system all combine into creating an investment system of uncertainty and corruption.

By the way, and before you jump to any conclusions regarding this article to try to identify a hidden agenda on my part, let me just say that I am a Mexican-born (Mexican National) real estate and mortgage practitioner in Mexico, who simply likes to speak the truth and who can, and will, provide through these articles factual and strong arguments to support the referred-to information and who has lived in Mexico long enough to understand the following:

Myths, Fallacies and Idiosyncrasies in Real Estate Investment in Mexico

1.       That Mexico is a warm and accepting country, therefore a secure place to invest, is a myth.

2.       That Mexicans are gentle and courteous, thus trustful people with regards to real estate investment, is a fallacy.

3.       That Mexicans are open-minded people, and would not attempt to go against your personal interests, is a cultural idiosyncratic misconception by Anglos and other foreign national real estate investors in Mexico.

4.       That Mexicans welcome foreign real estate investment, is a fact.

5.       That Mexicans can work together in accomplishing a successful real estate transaction, is wishful thinking.

6.       That the old saying of "El que no tranza, no avanza", "You must take advantage of others to get ahead," with regards to real estate investment in Mexico, is the law of the land, is an absolute truth.

7.       That the Mexican real estate investment process is a reliable and efficient process, couldn't be farther from the truth.

This report courtesy of Enrique (Henry) Saldana
Mexico Realty Solutions
Cel: (984) 111-8743

See Also:

Reason #1: Mexico, a Warm and Accepting Country

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