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If you haven’t yet heard, Mexico is the newest hot spot to buy that second home you have been dreaming about, or to start investing in real estate and begin building wealth and generating monthly cash flow.
Although the process of buying real estate in Mexico has been greatly streamlined in the past few years, and the transaction as a whole is very similar to one done in the United States, there are still various things that potential buyers should be aware of and become knowledgeable about.
Even if you are not moving to Mexico permanently or will only visit your property a few days or weeks out of the year, it is still important to learn the local laws, customs and traditions of the place you buy your property in.
An article posted on Investbajasur.com entitled, “Buying property in Mexico,” gives some pertinent information on the overall process and things to expect when buying property south of the border.
Obviously, the biggest thing that has been attracting regular buyers and investors alike to Mexico is the cheap cost of homes and land that are found there – although these rock bottom prices are not expected to last for too much longer.
“Buying property in México, whether it is land, a serviced apartment or a house, can offer good value for money in comparison to prices in the US and Europe.
Although, prices in some areas have increased dramatically in recent years, care should be taken in assessing a property's true value; México's land costs can be lower, building and maintenance is cheaper and cost of ownership (taxes, utilities) is very low.”
“Property value in México increases year-to-year, as they do in most places. And as with all property, the relative value and appeal of land or property in México comes down to the ‘Location, Location, Location’ factor.”
The location is obviously very important especially in Mexico, where many areas are still largely undeveloped. You probably do not want to purchase property where you would have to build a road just to get to it.
Property ownership in Mexico has been something that has been largely misunderstood throughout the years. Laws and customs have changed, and now owning property in Mexico is easy and simple to do.
It all has to do with banks trusts and a fideicomiso, which enable foreigners to buy property near the coastline, which used to be prohibited.
“Property may be purchased and owned outright for residential use by foreign nationals outside of the 100km restricted land border zone, or outside of the 50km coastal zone.
Inside of the restricted border/coastal zones, foreign nationals may own land through a fideicomiso (a trust) which is set up through a bank and provides for ownership of the land and property in all but name.”
These things are only the tip of the iceberg when it comes to buying property in Mexico, there are a lot more rules and regulations that must be taken into consideration.
Contact an agent with LEI Mexico to learn more about buying that property you’ve always wanted in Mexico.
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