Buying Property in Mexico

Posted by on Feb 12, 2018 in Adventure Travel, Travel and Leisure, Travel Planning | Comments Off on Buying Property in Mexico

If you plan to buy property in Mexico it is very important you receive as much information as possible to be well informed in making your decision. Below are some introductory guidelines that can be useful:

Property in Mexico

Financing your Mexican Property

Mexican Law: Property ownership

Ejido (Agricultural) Lands

The Role of the Notary Public in Mexico

Costs and Taxes

Important! The information in this section is provided for outline guidance only. Information, figures and rates change without notice. For updated information please contact us through our Contact Page.

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Property in Mexico

This introductory guide assumes that you are considering the purchase of land or property in Mexico.

Buying property in Mexico, 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; Mexico’s land costs can be lower, building and maintenance is cheaper and cost of ownership (taxes, utilities) is very low.

The reasons to buy property in Mexico come down to a personal choice, and depend on your individual circumstances. Perhaps you will be living in Mexico for some years and you see long term rental as ‘wasted’ money, or perhaps you’re looking for an overseas property investment that will surrender a rental income, while providing you with a place to stay on a holiday visit…

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 Mexico comes down to the “Location, Location, Location” factor.

Another important factor to consider when buying property in Mexico is the developed state of local and surrounding infrastructure in the location you are looking at. Not all areas are well developed, and property prices will be cheaper in those that are not. However if, for example, a high speed road is built connecting a previously ‘remote’ location to other, better developed places, you may see a property investment in that area increase substantially. México is a vast country – at nearly 2 million square kilometers – and not all of it is easily accessible. Road infrastructure is improving every year, with most major places now adequately connected, and work continues to connect the more remote areas, but this will take time.

If you’re considering the purchase of property in Baja California, sir you have come to the right professionals. Thousands and thousands of foreigners have successfully purchased land and property in Mexico, there is no reason why you should not become one of them if you want to.

Financing Your Mexican Property Investment

Historically and in many cases today, most property/real-estate deals in México are cash only. Mexican Banks are now beginning to offer mortgage products for the purchase of real-estate in Mexico, although 30-40% deposits are required and interest rates are not as attractive as those in the US, Canada and Europe.

There are some banks in the US, who are now offering mortgages on Mexican Property, but they are usually offered on the back of equity built up in a property in the USA and the rates are higher on the additional loan amount, to reflect the additional risk. Many Americans have mortgaged a house in México using this financial vehicle so it is possible.