Guide to real estate in Mexico – Part two
Last week we talked about buying property in Mexico and the amount of research, planning, and preparation that goes into understanding how to buy property in a foreign destination. This guide was meant to give you an overview of key facts and tips you need to take into account as you buy or sell property in Mexico. We discussed the kind of property you are looking for and what research you need to do. You need to find the right professionals who can guide you through a successful property transfer in Mexico. Real estate in Merida and its surrounding cities can bring you lots of happiness but if you don’t find the right people to help you it can end up being a nightmare.
Mexican Law For Property Ownership
Finding property in Mexico is half the battle. Knowing the Mexican laws is the other half. Mexican Law does allow private ownership of land by foreigners but its laws are very specific about the way in which land rights should be transferred from seller to buyer as well as what type of lands are not eligible for public ownership.
Generally, property may be purchased and owned outright for residential use by foreigners outside restricted land border zones (100km or 60 miles) or outside coastal zones (50km or 30 miles). A foreigner can own land in these restricted areas but it must be through a trust, which is set up through a bank and provides for ownership in all but your name. The Mexican Constitution previously banned foreign nationals from owning property that was within the restricted border zones in order to protect Mexican soil from foreign invasion.
Financing Mexican Real Estate
It is extremely important to know beforehand how you are going to finance your property in Mexico. A realty agent in Mexico may be able to advise you and guide you to certain financial institutions like banks and mortgage brokers to help you complete your property investment in Mexico. Historically, however, real estate in Mexico has been handled in cash. Mexican banks are beginning to offer mortgages for the purchase of Mexican real estate but significant deposits are required and interest rates are not as low as those offered in the United States and Canada. Cash is still king here in Mexico.
Financing may also be available from some specialist US-based mortgage companies located within Mexico but it is extremely important to research all of your options first so that you aren’t full of any surprises along the way.
There are so many factors to consider when you are considering the purchase of property in Mexico. Because there is a lot of red tape to cut through, it shouldn’t deter you from finding your piece of paradise that awaits you in Mexico. With the help of good real estate agents, you will find real estate in Mexico that suits you and your family.
At Merida Property Management, we can help you find the right property for you and your family and we can help you manage it as well.