The following news clip was featured in Reuters today. Here’s a portion of it. Rest is here. Real estate agents have been telling me as well that investment is strongest right now for nationals interested in real estate, more so than for Canadians and Americans. Part of this can probably be attributed with the backlash against Mexicans in the US (immigration laws and what’s happening in Arizona) and the announcement last year that Mexicans now need a visa to go to Canada. This has become a hassle for Mexicans as its not an easy process to go through. So it seems more are taking vacations elsewhere or here in Mexico. And that seems to be the case for vacation properties as well – buy local.
Rich Latin Americans investing in own region
Rich people in Latin America are investing in their own region, betting on sustained growth in Brazil and hoping Mexico’s violence will be temporary, private bankers said on Tuesday. At the Reuters Global Private Banking Summit, executives described improved confidence about commodity-producing Latin America where business leaders are making more money as economic conditions improve. “The perception of emerging market risk is different,” Enrique Marazuela, chief investment officer at BBVA Private Banking, told the summit, adding that more Latin Americans were keeping money in the area. “They are investing in their own region, not only in their home market,” he said. “Brazil is the most appealing case.” “Latin America is one of the more exciting parts of the world for us,” said Anthony DeChellis, chief executive of Credit Suisse Private Bank (Americas).
Marazuela said BBVA was heartened by economic improvement in the past three to five years in Colombia and Peru, and cited optimism about the prospects for Mexico, whose economy has been battered by the U.S. slowdown, the outbreak of H1N1 flu and drug warfare. “For us, Mexico will be the star of 2011. It is recovering,” he told the Reuters summit in Geneva. “We think the U.S. will have weak growth but it will grow at least, and Mexico will benefit from that.”
“The violence is a situation that was there previously, and nobody tried to solve it. Now the government is trying to solve that problem which has a long-term presence,” Marazuela said. “We are not seeing money leaving Mexico.”