At SolutionsAbroad.com we try and offer the best possible advice and advisers when it comes to buying real estate in Mexico. Here are ten simple tips to take into account when embarking on your search:
Work with an agent who is an AMPI member – this is the Association of Mexican Professional Realtors. They are establishing an industry where agents are trained and can be trusted. This is a mark that can give you confidence that you are working with a trusted agent.
Research as much as possible online before you pick your destination, as well as the type of investment – whether you are looking for something on the beach, something more colonial, hacienda style, a gated community etc
Try looking for destinations that are located close to the already established developed areas but should be better value for money. Some examples include: East Cape, Baja California Sur; Todos Santos, Baja California Sur; San Carlos and surrounding areas, Sonora; Los Troncos, Guerrero; Liberty Cove, Sonora; Mazatlán, Sinaloa; Nayarit, Nayarit; Tampico, Tamaulipas.
Define your wish list for your perfect property before speaking to an agent or a developer. Know what you want and what you’re willing to be flexible on and you’ll find it much easier to find something that suits your needs.
Speak to someone who has experienced buying property in Mexico. Learn from their mistakes as much as their experiences! A great way to do this is to look at websites from expat communities in the areas that you are interested. Ask questions on online forums such as on SolutionsAbroad.com, read people’s blogs and research as much as you can.
Budget properly. Know exactly what you can afford and put aside as much as 10% of your budget for taxes, title search and insurance fees, agents fees etc
If you are buying on the coast or near the border you need to have a good understanding of the “fideicomiso” (“trust”) system. The only legal way a foreigner can buy property in these zones is through a bank trust. The buyer can appoint the Mexican bank of their choice to act as a trustee on their behalf. As a trustee, the bank will actually legally own the property. However, all the rights to the property will exclusively be held by the buyer. What this means is that the buyer will be able to use, improve, rent or even sell the property as though they directly owned the property.
Make sure that you are certain that you want to live in your chosen destination. It is recommended that you rent for at least three to six months in the area to get a feel of life there, as well as being able to experience the services, facilities and Mexican way of life before committing your investment. Remember, day to day life can sometimes be different to our holiday experiences.
With your AMPI recognised realtor’s help, check all papers are in order especially the public registry of the property. This will make certain that what you think you are buying both exists and belongs to vendor.
Buy Title Insurance from someone like Stewart Title or First American to protect your investment from any unexpected problems.
Pursuant to the civil codes of each of the states of the Mexican Republic, in order for a lease agreement to be valid, it must be executed in writing. Although the civil codes of the states generally establish the obligations of the landlord, it is advisable that the following obligations be included in the lease agreement that is executed:
As was indicated, the restrictions on the acquisition of real estate by foreign individuals, foreign companies, and Mexican companies with foreign investment must be taken into account.
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Along with the above, it is equally important to determine the best location to acquire property in Mexico before making the purchase. In order to make that determination, the following should be taken into account:
Acquisition of real estate by foreign individuals or entities: The right of foreigners, whether individuals or entities, to acquire real estate in Mexican territory depends on the location of such real estate:
The city booms and has been registered as the fastest growing community in all Latin America. What's bringing people and the growth to this specific region of the Mayan Riviera? The main factor is coming from the increase in tourism, the increase in hotel rooms being constructed and therefore increases in employment.
For those brave souls who are building their home in Mexico, an important part of the process is the Manifestation. This is a notification made before the local property tax department. It signals the termination of the construction and tells the world that the houseis ready to be occupied.
Buying and selling property can be stressful. Here in Mexico it can be both stressful and challenging, As in any country, if you do your homework and use the service of a professional title service company, life will be easier for you. Unfortunately some sellers don’t have all their title documents in order.
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Work with an agent who is an AMPI member – this is the Association of Mexican Professional Realtors. They are establishing an industry where agents are trained and can be trusted. This is a mark that can give you confidence that you are working with a trusted agent.
