Owning property in Mexico has always appealed – from sandy beaches to welcoming locals, delicious food and the promise of plentiful sunshine, there’s little not to love about the Central American destination.
For many foreigners, owning homes Mexico City proves to be the easiest option thanks to the restaurants, nightlife, shopping, museums, parks and looser restrictions.
While beachfront properties are still considered prime, inland properties in CDMX, Ecatepec, Guadalajara, and other major cities aren’t tied to the same residential property laws that make buying by the beach difficult.
While foreigners may not always have the easiest time buying property, it is the norm to own in Mexico- 80% of residents live in owner occupied houses. And while there are some hoops to jump through, in most places buying property is straightforward.
This guide will walk you through everything you need to know about buying property in Mexico.
What’s the property market like in Mexico?
Generally, the property market in Mexico is strong and on the rise. The country’s economy is holding fast despite the threat of trade alterations from the US, and is growing more swiftly in 2018 than economists previously predicted. Because of this, national buyers are snapping up property as foreign investors rush to take a cut as well. It’s a seller’s market, meaning home prices may be a little high- but so are the values.
Can foreigners buy property in Mexico?
Yes- with some restrictions. Mexican citizens are able to buy land without any real barriers, but foreigners face some geographically-based barriers that can restrict some from buying in the most desirable areas.
Residential property that’s 31 miles or closer to the coastline or 62 miles from a border will need to do so via a trust through a Mexican bank. These can be created and used, but it’s often a long process. Foreigners are typically encouraged to work with a notary and a lawyer as they navigate their purchase.
How can I find a property in Mexico?
Property agencies and agents
It’s a good idea to engage a real estate agent if you’re planning to buy property in Mexico. Online listings are still growing in popularity, and if you choose to search on your own you may find that you’re missing more than half of the available properties in your desired area.
Luckily, realtor fees in Mexico aren’t too high to start with, and it’s common to negotiate them down before you get started.
New scams are being tried every day, and it can feel like it’s impossible to protect yourself when you set out to buy a home. However, the following principles will go a long way towards making sure you and your investment remain safe throughout the process.
How do I choose the right property?
Depending on where you choose to buy, what type of property you can get will vary. In the major cities, look for apartments and townhouses- you’ll struggle to find land or freestanding homes. By the beach, however, keep an eye out for larger villas, land parcels and plenty of apartments, many of which are in residential hotels.
Condition of the property
Technically, there are no official building standards for property in Mexico. If you’re buying a prefabricated home, you’ll want to hire a surveyor to do a thorough inspection before you settle on your new place.
Tip: Don’t hire a surveyor recommended by the seller or your real estate agent; this is a common scam.
What are the steps to buying a property as a foreigner?
The steps for buying a home in Mexico are pretty simple, even if you’re choosing to buy in the restricted zone. While they vary from transaction to transaction, the process should be something like the following:
What are the legal requirements to buying a property in Mexico?
Buying property in Mexico will require you to engage a notary to draw up a sale contract, but otherwise the legal requirements are pretty thin.
You’ll want to:
How do I get a bank loan/mortgage?
To get a mortgage, you can go to any major Mexican or a bank in your home country. You don’t need to be a Mexican resident or even have a visa to buy property in Mexico.
If you need a fideicomiso to make your purchase, you’ll also find a wealth of options- many of the larger international banks that work in Mexico will help you get a trust, as will local Mexican banks like Banorte and Banamex.
If you’re planning to pay your down payment from a foreign bank account, you’ll want to keep an eye on the exchange rate and associated fees from your bank to make sure you’re not going way over budget.
What kind of taxes and fees will I need to pay?
Unfortunately it can be a little hard to pin down exactly what level of fees you’ll pay due to looser regulations, but some good ones to look out for include:
Beyond the somewhat tedious process of setting up a bank trust, the real estate process in Mexico is fairly straightforward.
As far as investment in Mexico is concerned, there’s never been a better time as the nation’s citizens and a multitude of tourists rush to enjoy the Mexican seaside. Good luck with your property purchase!
Leave a Reply ·