Whether you plan to live,work,invest or someday retire in Mexico,now is the best time to buy a home or condo for sale in a popular vacation destination like Playa del Carmen or Tulum in the Mexican Caribbean,or Cabo San Lucas on Mexico’s Pacific Coast. Regardless of why you have become interested in Mexico real estate or where you plan to look for the perfect vacation home,there are a few things every buyer should know about how to buy a house in Mexico.
“Mexico is rapidly becoming one of the most popular countries for Americans,Europeans and other foreign nationals to purchase vacation homes,” wrote The Yucatan Times. “Unlike some countries,buyers do not have to be residents in Mexico to own property,so there is no need to qualify for resident status under immigration laws.”
Real Estate Trusts
You may have already heard that in order to purchase land in what has come to be known as the restricted zone – which encompasses all land located within 62 miles of any Mexican border and within 31 miles of any Mexican coastline – foreign buyers must use a real estate trust known as a fideicomiso (pronounced fee-day-e-co-me-so). The trust allows buyers to work around an old law that was designed to protect Mexico real estate from foreign invasion.
“The trust holds the deeds to the property,and the buyer and/or other named persons which the buyer specifies are sole beneficiaries to the trust (and therefore the property),” wrote The Yucatan Times. “The beneficiary has full rights to do whatever he [or she] likes with the property. It can be developed in accordance with local planning regulations,rented,leased,sold or given away.”
The fideicomiso also permits the buyer to name a beneficiary who may inherit the land and Mexico’s property ownership laws provide comprehensive protection for the seller and the buyer in all property transactions,provided the law is followed and all necessary documentation is filed. This brings us to the importance of working with an English-speaking attorney when purchasing Mexico real estate,to ensure that the home buyer (beneficiary) rights are properly recorded in the public record by a notary public,and all other paperwork is in proper order. Buyers should always discuss financing with their real estate professional and the developer of the property.
“Foreigners can get financing from a Mexico lender,and often developers have specific companies that they can recommend and that have pre-approved the project,” wrote The Yucatan Times. “U.S. lenders are starting to offer loans on properties in Mexico,and more U.S. lenders are expected to soon join the market.”
Playa del Carmen Real Estate
The cost of real estate in places like Mexico’s Riviera Maya – which stretches south from Cancun and encompasses popular expat real estate havens like Playa del Carmen and Tulum – has been increasing dramatically in recent years and shows no signs of slowing down,but there are still amazing deals to be found. In fact,if you are looking for a condo or homes for sale in Playa del Carmen,Tulum or anywhere else in the Riviera Maya,you’ll find that prices are still very affordable compared to tropical beachfront destinations in the U.S. and Europe.
Want to learn more about how to buy a house in Mexico and enjoy guaranteed rental income? There are amazing condos and homes for sale in Playa del Carmen,Tulum,Cancun,Cabo,Puerto Vallarta and other parts of Mexico,but it’s important to really understand the ins and outs of Mexico real estate before you buy.