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Those remittances…

21 April 2007

Some Mexicans manage to send quite large remittances back home…  but do you really think José Lopez, sending back $20,000 a year at a few hundred bucks a week is anywhere near the source of the cash flowing into Mexico?

Retirement homes and property are a more likely candidate.  Mexico — even Monterrey — seem to be the Arizonas and Floridas of the future.  Alas poor Mexico!:

Last year, three major money lenders, or financial groups, were offering loans for properties in Mexico. Today, the number has increased to nine, according to IMI Group.

The firm estimates U.S. citizens own $30 billion in residential real estate in Mexico, and another $5 billion is expected to be developed during the next two years.

Roy Nelson, associate professor of international studies at Thunderbird School of Global Management in Glendale, said Mexico’s economy is growing, helping fuel rapid development of real estate.

However, he believes the overall growth is not as rapid as most international _ and Mexican investors _ would like it.

“There are a lot of people, including Mexico’s President Felipe Calderon, who would like to see the country’s economy growing a lot faster, but there are political forces that are holding it back somewhat,” said Nelson, who also teaches at several Mexican universities.

Nelson echoes IMI Group’s opinion about real estate expansion, particularly in areas like Monterrey, Mexico, a magnet for foreign companies and growing real estate.

“Monterrey’s real estate prices are skyrocketing,” Nelson said. “A lot of people from the United States and Canada are buying property in Monterrey as well as other areas that attract tourists.”

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