How To Buy Property in Mexico
Looking for the perfect retirement home, vacation rental or investment property? Here’s how to make those dreams come true
By Janet Blaser
With so much in the news lately about Mexico’s tremendous investment opportuniAes, comfortable, affordable lifestyle and easy visa process, it’s not surprising that thousands of Americans and Canadians are buying property here.
While parts of the buying process are familiar, Mexico has some procedural differences you might not know about. We talked to Sotheby’s InternaAonal Realty agents Paula Beltran and Monica Colomer to share some Aps and advice.
First things first: Can foreigners even own property in Mexico? The answer is a resounding YES.
“It’s perfectly legal for foreigners to buy and own Mexican real estate, and it’s easier than you think,” confirmed Monica. “Especially right now, since Mexico is a buyer’s market with great opportuniAes.”
Having a reliable real estate agent that you trust—and who’s fluently bi-lingual—is crucial.
“Most common mistakes can be avoided if you work hand-in-hand with an expert real estate agent,” said Paula. “Take your Ame to research and understand the property, legal requirements, financing opAons and the local market before making an offer. Rushing the process can lead to mistakes and regret later on.”
Chances are you’ve heard stories of expats “finding a great deal” from someone they met on the street, a neighbor’s cousin or some other such thing. While some of those tall tales may be true, most real estate transacAons like that won’t pan out to be what they were presented as.
“Make sure everything is in order with the property,” advised Paula. “It’s important to verify that the seller is up to date with taxes and payments for all services to the property and that you comply with all legal requirements.”
In Mexico, you must have a notario assist with the legaliAes of the transacAon. Your agent will help you choose one who’s experienced in the area where you’re buying.
“Notarios are experienced aOorneys who meet certain criteria and also represent the governor of the state in real estate transacAons,” added Monica. “A notario must be involved to ensure the transacAon is legally valid.”
“The notario plays a crucial role in the process of buying and selling a house,” explained Paula. “Their primary funcAon is to ensure the legality and authenAcity of the transacAon. They verify the idenAty of the buyer and seller, authenAcate signatures and cerAfy the documents related to the purchase or sale.”
Some aspects of homebuying in Mexico are the same as anywhere else. “LocaAon, locaAon, locaAon!” said Monica. “Different areas have different atmospheres, so you’ll want to find the one that suits you and your lifestyle.”
“Ask to see at least four properAes, so you can find the one that best suits your needs,” suggested Paula. “This will help you choose a house with the best advantages and benefits for your family rouAne, guaranteeing a comfortable life for your loved ones and adding value to your investment.”
Buying a coastal property as a foreigner requires a fideicomiso, or bank trust, a legal agreement in which a Mexican bank acts as a trustee and holds legal ownership of the property on behalf of the foreign buyer.
“The trust is for 50 years and can be automaAcally renewed. During this period, the foreigner has all the rights and benefits of ownership, including the ability to sell, rent or inherit the property,” said Paula. “It provides legal security and complies with the restricAons established by the Foreign Investment Law in Mexico.”
Monica added, “A fideicomiso protects your rights as an owner and also makes it easy to buy and sell as a foreigner.”
Both Monica and Paula advise negoAaAng the price carefully with your agent and also comparing financing opAons, especially because of the changing conversion rates recently between the American dollar, Canadian dollar and Mexican peso.
With a wealth of real estate projects available, an ever-evolving economy and favorable poliAcal stability, Mexico has posiAoned itself as one of the most aOracAve countries for cross-border investment. Foreign Direct Investment (FDI) increased a record 12% last year and shows no signs of stopping. That’s good news if you’re looking for investment opportuniAes! Paula, based in Guadalajara, sees key opportuniAes in the city and surrounding areas.
“Guadalajara has been experiencing steady economic growth over the past decade,” she said. “The city is a major hub for technology and innovaAon, as well as a dynamic center for cultural and arAsAc events.”
“Downtown Guadalajara is the cultural and historic heart of the city, home to many of the city’s museums, theaters, and historic landmarks,” Paula conAnued. “There has been significant real estate investment, parAcularly in the renovaAon of historic buildings into hotels, offices and apartments. One of the most sought-aper neighborhoods is Providencia, known for its upscale restaurants, bouAque shops and modern office buildings, as well as luxury condominiums and office space.”
“Nearby Zapopan is one of the wealthiest and fastest-growing areas in Guadalajara,” she added. “Home to several presAgious universiAes, with a thriving technology sector and significant growth in high-end housing developments and commercial properAes.”
With its endless postcard-perfect beaches and warm, mild climate, Mexico is one of the best desAnaAons for vacaAon homes, said Monica. “ProperAes in popular coastal towns like Tulum, Cancún, Playa del Carmen and Cabo San Lucas do double duty as income-generaAng vacaAon rentals when you’re not using them yourself.”
Working out of Mexico City, Monica has an up-close-and-personal understanding of the nicest areas. “Las Lomas de Chapultepec, Polanco, Club de Golf Bosques and Club de Golf Bosques de Santa Fe are all super-nice buying opAons,” she added.
“Enjoy the process!” said Monica. “InvesAng in Mexican real estate is always a great decision because of the guaranteed increase in value.
AUTHOR
Janet Blaser
Janet Blaser is a writer who has lived in Mazatlán, Mexico since 2006. A former journalist in California, her work now focuses on expat living. Janet’s first book, “Why We Left: An Anthology of American Women Expats” is an Amazon bestseller. Follow Janet on Instagram and Facebook. Source: CBNC. Extrated from: https://www.cnbc.com/janet-blaser/
