My husband recently wrote about this and I wanted to share it with you as I too, as a foreigner living in Mexico, get many questions on this.
From: Shawn Bandick, One Stop Real Estate
Many people think because of the shifting in the market in the USA that the Mexican Real Estate market must also be flat. This is not so. They also assume if there’s a credit melt down in their area it will happen in Mexico as well. That’s not going to happen either. How can I be so sure? It’s easy, Mexico is not a credit driven economy. Most Mexicans don’t have a credit card, at best they have a debit card, and this way they are only spending the money they have.
Currently most Mexicans don’t have mortgages on their homes. Yes it might be a modest home but they built it as they had the income and they never paid the huge mortgage payments. Only in the last few years have mortgages been available and only if you could put about 20 to 30% down. That’s a very healthy no risk position for the bank. In a nut shell credit is so new to Mexico that the economy doesn’t rely upon it; therefore you will not find a credit crunch in Mexico.
Enjoy the Adventure! Suzanne
Suzanne Marie Bandick
Live your Dreams Life Coach
P.S. My book: Only in Mexico You Say? The Humorous Side of Living in Mexico is available now on my site http://www.onlyinmexicoyousay.com/.
Would you like help to visit or live in Mexico? Visit http://www.liveyourdreamscoaching.com/.