Mexico Real Estate A Foreign Buyer's Guide
North Americans have always found Mexico a great place for real estate investment and the number of this breed of real estate investors have quadrupled in the last couple of years.
The process of real estate investment in the state has improved over the years--- International Herald Tribune reports. The newspaper also points out that the financing scenario in the country has improved too. The government regulations regarding the property buying process has been relaxed too. The net result is that Mexican real estate market is attracting more and more foreign property buyers, especially the North Americans.
The process of real estate transaction in Mexico follows more or less the same model as USA or Canada. There are a few common points with European countries too. Still, it is important to take up an extensive research before taking the plunge. Here are a few points that the foreign investors should take notice of while investing in any Mexico real estate.
Choose your agent with caution
First of all, you have to decide on the type of the property that you want to invest in. From vacation home to modern condos-Mexico real estate market offers you multiple options. It is advisable that you take the assistance of a renowned, experienced and competent real estate agent in finding out the property that suits your needs and budget. But, make sure you deal with a real estate agent, who is affiliated with the American National Association of Realtors.
As a foreign buyer, know your limitations
There are certain restrictions for the foreign property buyers in Mexico. Foreigners can not own properties within 100km of the Mexican border or within 50km of the coastline. And as a foreign buyer you should be prepared to bear additional expenses other than usual property taxes and fees, as you have to make the purchase through a bank trust.
Make sure that you are buying private properties
When you are buying properties in Mexico-a vacation home, a condo residence, a retirement home or likes-make sure, it is constructed on the privately owned land. Many lands in Mexico are owned by the co-operatives and when you go to sell such properties you need to have every member’s permission and this makes the resell of the property virtually impossible. So before signing the deed, make sure that the land is privately owned by the vendor who has the right to sell it in the real estate market.
Before buying the property make sure about your real estate investment goals
If reselling of the property is your sole objective of investing in Mexico real estate, then you should think twice. Because reselling of property in Mexico involves lengthy legal hassles. Above all, the capital gain tax is huge which means it may eat away your profit from the appreciation of your property.
