Mexico is CHEAP! But its getting more expensive. As property values rise, especially in resort areas, investors wonder how they can profit from this.
Compared to major US cities, Mexico is still very very cheap. But compared to 5, 10, or more years ago, values have really risen.
There are some particulars to pay attention to with Mexican property purchases. For instance, Mexico forbids foreigners from owning land in resort areas. This is worked around by shares in a development, partnerships, or strata arrangements.
Foreign ownership is limited only in the “restricted zone,” land located within 100 km of the Mexican borders, and within 50 km of the coastline.
Instead, a real estate trust must be set up to hold title for the foreigner. Since foreigners are not able to enter into contracts in buy real estate, they must have a bank act on their behalf, much as a trust is use to hold property for minors because they also can not contract. Potential buyers should always get advice and have all real estate transactions overview by a licensed Mexican attorney.
Mexican real estate transactions are not carried out in the same manner as United States real estate transactions. The buyer must retain professionals to assist in the transaction. Mexico has yet to regulate real estate transactions. Real estate agents and brokers are not legally licensed in Mexico. Consequently, a foreign buyer cannot always depend on the normal safeguards that would be applied to real estate transactions in the United States. The old saying “let the buyer beware” is very appropriate. Anyone can set up a real estate company in Mexico. There are no special requirements or brokerage licenses to obtain. A would-be real estate agent merely has to establish a Mexican corporation, obtain a work visa, and he is in business.
As a rule, a foreigner should assume nothing. Was THAT enough of a warning to make sure to get good legal assistance in your transactions??
The best part about investing in Mexico is the proximity to North American investors. You can vacation and view your property, even stay in it if it is not occupied. Mexico has become North America’s playground, so it is likely that you would return every few years.
Anywhere in Mexico that there are tourists, there are vacation properties and property management companies. And realtor’s to re-sell your property when you wish to take your profits!
Your best bet is to travel to Mexico, find an area that YOU really like, and will return to again and again, happily. Then you get a two fold benefit from your investment – it draws you back to your version of paradise as well as hopefully making you money!