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+--- Thread: Foreign Ownership of property (/thread-1872.html)
Foreign Ownership of property - jesm - 04-05-2013
While not impacting GTO and other interior locales, the Mexican Congress is moving to amend Article 27 of the Constitution which forbids non-national ownership of property in Mexico within 50 km of the ocean or 100km of national borders. This change is being pushed by the new President and has support among the 3 main political parties. If approved and implemented it will boost foreign investment, jobs and property values. Presently foreigners are allowed to "own" property in these areas but thru a cumbersome and expensive trust mechanism thru major Mexican banks.
RE: Foreign Ownership of property - peddler665 - 04-05-2013
It's about time. Where I stay in Ixtapa a lovely townhouse w/pool & staff was purchased for $180,000 US in 1988.
Today? Equivalent one sold this year for $130,000. Not much of a investment to say the least.
RE: Foreign Ownership of property - The Duck - 04-05-2013
and then what's the next step will be the privatization of CFE and Pemex?
RE: Foreign Ownership of property - jesm - 04-05-2013
Such changes in value for Mexican, and elsewhere, resort properties has been common. This is more reflective of general exonomic conditions, especially in areas with a large number of American owners. Many,many 2nd home purchases here were funded by 2nd mortgages (home equity loans) and when the US real estate market collapsed banks started asking for that money back as the home value no longer covered their exposure. Under pressure to repay many owners were forced to quickly short sell at much lower prices. If you are optimistic on the Mexican 2nd home market and have cash this is a great opportunity to buy for a longer (10 yr horizon) investment.
Privatization,ie equity ownership, of those "crown jewels",probably not. More participation, such as joint development agreements with shared profits ,very likely, especially in Pemex. They seem to lack the capital needed for the very expensive deep water well production and with partners contributing cash and technology could be pulling up much more oil. Pe?a Nieto is favoring this type of foreign involvement.
RE: Foreign Ownership of property - philyrossy - 04-05-2013
I may be incorrect, but have heard that the reason Pemex is in trouble is because all of the money it makes is used for wages and benefits of its employees, thus nothing is left for repair and exploration. So, with foreign capital, I guess the only way to win on the investment would be to produce MORE oil, until it starts to run dry, or until the price drops? :huh: