As one of the world’s best places to retire abroad, Mexico has been popular among international investors for decades, and now Forbes has advised readers that this is an ideal time to invest in Mexico real estate, stating that Latin America’s second-largest economy is also one of the world’s top four places to buy a second home and/or vacation home overseas!
“Mexico offers two long coasts, mountain towns and colonial cities, plus Mayan ruins, jungle rain forest, rivers and lakes”, wrote Forbes. “It’s also the most accessible ‘overseas’ haven from the United States, since you could drive back and forth if you wanted”.
Why You Should Invest in Mexico Real Estate Right Now
Heading into 2019, the dollar’s current strength has created exceptional value in some of the world’s hottest investment property markets, including Mexico. This means right now is a fantastic time to invest in a vacation home or second / full-time residence, whether you want to collect ongoing rental income or plan to live in Mexico either full or part time.
Can I own Property in Mexico as a Foreigner?
First and foremost, it’s important to establish once and for all that YES, foreigners can legally own and buy property in Mexico, even in the "Restricted Zone" (see more on this below). In fact, changes in the constitution over the years have made it easier than ever for foreigners to buy real estate in Mexico and right now is a great time to buy! In these areas, “restricted” is simply referring to the Mexican federal government’s requirement for foreign buyers to set up a bank trust known as a fideicomiso in order to hold the title.
What and Where is the Restricted Zone in Mexico?
According to the Mexican constitution, the Restricted Zone includes property within 64 miles of any international border and within 32 miles of the coast. In these areas, “restricted” is simply referring to the rules governing real estate transactions that involve foreign buyers.
What is a Fideicomiso?
A fideicomiso is a type of bank trust that gives the beneficiary absolute control of the property. You can choose to enjoy the land, lease it, make improvements, mortgage the property, sell it, designate the property for inheritance or give it away. In other words, your property is held under a fiduciary that is managed by a bank in Mexico on your behalf, and you get to call all the shots.
Best Places to Invest in Real Estate in Mexico
Either way, house prices in Mexico are insanely affordable compared to other similar destinations, especially in the Riviera Maya along the Mexican Caribbean coast, which stretches for more than 80 miles south of Cancun. In fact, you simply can’t invest in Mexico real estate without first coming to the Riviera Maya, which is home to top vacation destinations like Playa del Carmen, Puerto Aventuras and Tulum.
“Expats [in Mexico] are enjoying a low cost of living at today’s exchange rates”, wrote Forbes. “While new arrivals are getting great property bargains”.
Playa del Carmen Real Estate
The cost of living in Playa del Carmen – and throughout the entire Riviera Maya region – is extremely affordable, offering buyers a fabulous lifestyle at a fraction of the cost you would pay in other parts of the Caribbean. When you buy Playa del Carmen real estate, you also get to enjoy the many unique charms of this bustling international city, including excellent walkability on the Mexican Caribbean Sea and every modern convenience at your fingertips. There are hundreds of shops, restaurants and entertainment venues along Fifth Avenue, not to mention a large (and growing!) Playa del Carmen expat community, and the real estate market is red-hot.
“Mexico is home to the biggest established populations of American expats in the world”, wrote Forbes. “More than 1 million Americans live in Mexico, and more than 500,000 own homes here”.
Puerto Aventuras Real Estate
Situated just 30 minutes south of downtown Playa del Carmen, the exclusive gated beach, marina and golf community of Puerto Aventuras offers a more secluded, intimate vibe. It’s easy to walk or ride a golf cart from the many different villas and Puerto Aventuras condos for sale to the various shops and restaurants around the international marina, which is also home to a beloved Dolphin Discovery experience. It’s also a breeze to connect with many different local tour operators in Puerto Aventuras, while the development’s professional golf course was designed by Thomas Lehman and the world’s second-largest barrier reef is located just offshore.
“Real estate trades in U.S. dollars or Mexican pesos, depending on the region”, wrote Forbes. “And the country’s accessibility from the United States makes it a top choice”.
Tulum Real Estate
Last but definitely not least, the eco-chic town of Tulum is home to the best beaches in the world and ancient Mayan ruins, including a stunning pyramid overlooking the Mexican Caribbean Sea. There are a wide variety of new Tulum real estate rentals available, including turnkey condos for sale and vacation homes that are designed to provide ongoing rental income, but could just as easily serve as your very own Tulum retirement haven one day. Despite the rustic feel of beachfront Tulum, the town itself (centro) is also home to plenty of shopping, dining and entertainment venues, which makes it easy to lose yourself here for as long as real-world demands will permit!
Invest in a Vacation Home, Forget the Hassles
As we mentioned already, unless you want to spend a lot of time personally managing, maintaining and booking your new vacation home rental, finding a property with "No Worries, No Hassles Ownership" is also an essential step in the process! Some of the innovative new condo-hotel developments in this area - including KASA Residences - offer resort-style services and amenities, along with “No Worries, No Hassles Ownership,” which basically means buyers don’t have to do anything to maintain or rent out the property… Except sit back and collect ongoing rental income and enjoy their vacation home with friends and family, if and when they decide to pay a visit.
Want to learn more? Check out 10 reasons to invest in Mexico real estate here.