Texas Real Estate Slump Lets Mexicans Take It Back

[Lone_Star_Dem]

June 25 (Bloomberg) -- More than a century and a half after Mexico lost Texas to the U.S., Virgilio Garza wants a piece of it back.

A ``Texas for Sale'' sign and cowgirls in boots and white hats greeted Garza at the Convex center in Monterrey, Mexico, earlier this month. A Monterrey developer and investor, Garza was in search of foreclosed U.S. property to buy.

``Texas is like our home,'' said Garza, 45, who joined hundreds of Mexicans poring over lists of Texas properties at the four-day event. Garza, who owns manufacturing sites and other land in Mexico, said he and five partners may invest as much as $8 million in Texas. ``We believe there can be some opportunities.''

A rising peso and an economy growing faster than the U.S. have given some Mexicans the buying power to take advantage of the housing slump in Texas, which the U.S. annexed in 1845 after Texans gained independence from Mexico nine years earlier. A three-year war followed and ended with Mexico ceding about half its territory, including Arizona, Nevada and California, to the U.S. under an 1848 treaty.

The peso has gained 5.9 percent against the dollar since the beginning of the year. The Mexican currency today was little changed, slipping less than 1 centavo to 10.2952 pesos per dollar at 9:43 a.m. New York time. The economy, which rose 2.6 percent in the first quarter from a year ago, is expected to grow 2.6 percent this year, according to a central bank survey of 31 economists in May. The U.S. economy is forecast to grow 1.4 percent in 2008, according to a Bloomberg survey of 57 economists.

Marco Ramirez of McAllen, Texas, is among those trying to sell foreclosed Texas homes to Mexicans. Ramirez's company, called Now! Co., has bought 32 Texas properties and has options on 88 more. His best prospects are Mexican buyers, especially in Monterrey, 150 miles from the Texas border, he said.

Read more here: http://www.bloomberg.com/apps/news?pid=20601109&sid=alUJZgGm4GUI&refer=home


This trend isn't confined to border regions. I live mid-state and we've had an influx of big money, large land parcel buyers from Mexico.

Does anyone else see the irony in this? Republican leadership is handing Texas back to Mexico one bite at a time. :D

[TBF]

1. From the border - well the Houston area anyway - we've been seeing this in

odd ways the last couple of years. This article from the Chron last year (reprinted in a blog): http://www.banderasnews.com/0705/re-mexicowoodlands.htm tells the tale of the Woodlands becoming a retreat for wealthy Mexicans.

The rapid decrease in the value of the U.S. dollar is responsible for all kinds of changes.

[Lone_Star_Dem]

4. Very similar to what we've been seeing in my area

Multi-million dollar purchases of land and high end homes. However, we are a resort area so it's to be expected when the dollar falls that there will be people from other countries looking to invest. The result has been that our property values have been on a steady rise due to influx of investors. Of course wages are stagnate which has in effect priced many new home buyers out of the market.

[nadinbrzezinski]

2. Garza is one of the big wigs in the SLIM group

these people are loyal to money, not country, just like many of our top tier guys

Oh and SLIM... he is the wealthiest man on earth

[CanonRay]

3. I never thought I'd live to see the day the dollar was falling against the peso.

We are in deep shit.

[texasleo]

5. yup