Purchasing A Condominium In Mexico
The following guide was put together by investors who have been considering the purchase of Real Estate in Mexico.
Whether you’re considering the purchase of a condominium as an investment which can offer a high income or you’re simply thinking of an apartment for private use, this guide has been designed to cover every aspect of purchasing Mexico real estate and all of the steps in between.
Is The Purchase of Real Estate in Mexico Even A Good Idea?
Buying a condo in a well the opportunity to own property for a rather affordable price in one of the worlds most popular dictation destinations.
For those individuals looking to own a home in an absolutely stunning area, Mexico is a popular choice for property buyers. Why is this? There are a number of various reasons. For some people it is absolutely gorgeous beaches and the opportunity to relax the laid-back lifestyle with year-round sunshine, while other people enjoyed the unique cultural heritage that can not be found anywhere else in the world filled with delicious culinary delights and awe-inspiring natural beauty. Additionally, the cost of living and property prices are quite attractive that it allows people to enjoy a lifestyle typically could not in countries such as Europe, Canada and the United States.
For the savvy investor looking to make an investment in Mexico, the country allows the individual to make a significant income with very little money down. The country is one of the world’s top 10 tourist destinations, bringing in an estimated 3 million visitors per year. The ever-growing amount of chores to Mexico allow condominium owners the opportunity to earn decent income through publication rental market.
How Much Does It Cost To Buy a Condominium In Mexico?
The cost of purchasing a condominium in Mexico is going to vary due to specific factors such as size, location and its perceived value.
Prices throughout the country can vary dramatically ranging from US £80,000 to US £100,000 for studio or 1 bedroom condos in areas such as Playa del Carmen or Merida whereas a luxury penthouse in Los Cabos or Cancun on the waterfront can run up to $3 million.
Are Foreigners Allowed To Own A Condominium In Mexico?
For nationals are allowed to purchase condominiums throughout Mexico and the government of Mexico actually welcomes foreign investment.
Keep in mind that there are some restrictions dealing with foreign property ownership throughout Mexico, but there are multiple ways to bypass these restrictions.
One such example is the fact that Mexico Constitution denies foreigner the ability to only and within 31 miles from Mexico’s coastline.
The workaround to this constitutional restriction is foreigners purchasing property through a bank trust known as a “fideicomiso”, in which a local bank. The foreign buyer all at the sole beneficiary for the establishment of a Mexican corporation.
Where Are Some Of The Best Places To Buy A Condominium In Mexico?
Is going to be quite dependent upon your personal preferences and goals.
If you absolutely love the Gulf and Eastern Caribbean coast, you will find condominiums for sale in Merida which is one of the most popular choices.
However, for those individuals who prefer the Western Pacific Coast, you’ll want to seek out condominiums for sale in Cabo San Lucas which is located at the of the Baja California peninsula as well as those condominiums that are for sale in Puerto Vallarta, which is another popular choice.
How To Buy A Condominium Located In Mexico?
Believe it or not buying a piece of property in Mexico is a rather straightforward process. Below you’ll find the typical process of purchasing property.
Once the property has been selected, the buyer must submit a written offer.
Once the offer has been accepted by the seller, the buyer must then pay a deposit through an escrow account in order to secure the condominium which will typically be between 5 and 10%.
When a formal agreement has been drawn up, the buyer must present the required documents to an notary and ensure that the “fidecomiso” papers have properly drafted and finalized.
Closing on the condominium take place once all paperwork has been properly finalized, and both parties have completely signed the contracts and taxes and payments have been made.
How To Get A Mortgage In Mexico?
One must wonder if it is possible to purchase a condominium in Mexico with cash or a mortgage.
Local banks as well as international tuition offer a wide variety of financing options to foreign buyers as well as local resident to purchase residential property as well as new construction and renovations.
For a nonresident, up to 70% financing is usually available which therefore leaves a minimum down payment of 30%.
Just as with any other country, once you apply at a financial institution for financing, they will conduct a credit check upon your ability to repay a mortgage.
Once your application is approved, you can expect that the interest rates are going to be a little higher as opposed to the United States or Canada. Generally, mortgage terms tend to be within the period of up to 15 years.