How to Buy Real Estate in Mexico
Live the Dream of Beach Front Property or Old Hacienda
Oct 18, 2009
Great deals can still be found in beach real estate in Mexico. A beach lot on the Gulf coast can cost as little as $30k, but buyers will need to do some research to find those deals. Inland, in the beautiful old city of Merida, foreigners can buy a run-down house with lots of period features for the same amount or less.
Private Ownership in Mexico
Foreigners can have private ownership of real estate in Mexico, but the government is very particular about how the deeds are transferred with regards to the type of land being sold. Foreigners do not have to apply for residence status in order to own real estate in Mexico. They can, however, buy land for residential use within 50km of coastal regions and within 100km of land borders.
Beach Real Estate in Mexico
If looking for beach real estate in Mexico, it's possible to buy it outright, but it has to be bought through a trust known as fidecomsio. This is set up through a bank. It allows ownership of the property, but not in name. This is a constitutional law and can't be altered. It was meant to protect Mexico from foreign invasion.
With this in mind, a system of land trusts was created, so foreigners could invest inside the restricted coastal and land border areas. If foreigners were to buy land further inland, outside the 50km and 100km restricted zones, they could buy the properties in their own names.
The trust holds the property deed. The foreign buyer and the buyer's named beneficiaries have full rights to the trusted property. They can rent it out, lease it, sell it or do whatever you want with it. It is theirs.
Use a Mexican Notary Republic
Foreigners will need a Mexican Notary Republic to buy real estate in Mexico, who will help the buyer through all the legalities and ensure all the paperwork is signed off and in order. He or she will ensure the original deed is valid and has good legal history. The notary republic will also ensure the taxes are up-to-date and all maintenance bills from previous owners have been paid. Mexican Law on property ownership is complicated and it states buyers must go through a Mexican Notary Republic.
Title Insurance on Mexican Real Estate
It's important to take out title insurance on Mexican Real Estate at the time of purchase. This will protect the buyer if there are any previous liens against the property. Otherwise the buyer could be responsible for those costs. In Mexico, old liens are passed on to new buyers. Title insurance isn't cheap. A $100k property could cost anywhere from $500. to $5000. for this insurance. But it is worth the expense.
Properties for Sale in Mexico
In early 2009, available properties for sale in Mexico included beach houses in Chelem, just outside of Progresso for under $30K. Most are typical cement block, some are gated with walled gardens. These properties can be rented when the owners aren't there. If the beach isn't doesn't appeal, consider a ruin in the old city of Merida for less than $20k. Real Estate in Mexico can be very affordable, even for a large or old hacienda.
Simply begin by searching the internet and visiting Mexican Real Estate Agents. They will help foreigners get started on their dreams of living in Mexico or simply investing in real estate in Mexico.
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