Most people who are considering living in Mexico are also interested in learning how to buy a house in Mexico. With proximity to North American cities, lower costs of living and beautiful beach and mountain destinations, Mexico can be a wonderful place to purchase real estate, especially for the long-term investor. If you do your research and consider the following steps carefully, you can buy a house in Mexico with relative ease.
- Visit and research the local area of Mexico where you want to buy a house. Just like with any real estate purchase, you will want to choose a property in an area you enjoy and where you're acquainted with the community. This makes it easier to find a trustworthy realtor and to transition to your new home once you have purchased. Watch the market carefully. Investment opportunities are abundant, so there is no reason to rush into anything.
- Meet other property owners. It's important to spend time in the community where you want to buy a house. Business networking is very tight in Mexico, so you might want to meet other home-owners who are not involved in the real estate business to make sure you get an unbiased perspective on the market.
- Research the developer, real estate agency and property carefully. Real estate laws and transactions in Mexico do not follow the same laws and processes as those in Canada or the United States. There are few formal inspection requirements, and the closing processes are completed by a notary. The best information about property comes from other investors, local residents and online sources. Properties and developers with strong reputations will have a lot of positive third-party reviews on websites or blogs that can offer the inside perspective on the quality of service and construction. Again, you will have to focus on the specific area in Mexico where you want to buy a house, as all regions have different levels of information.
- Decide if you want to buy a new house or a house listed for re-sale. There are a lot of opportunities to invest in pre-construction or new developments, especially in tourist and vacation regions, but the rates of completion and the quality of labor can vary, so many investors prefer to buy houses that are already built.
- Decide on a mortgage versus cash purchase. Mortgages for foreigners are available in Mexico, but the interests rates are higher and the qualifications for loans can be stricter than U.S. lenders. It is common for U.S. and Canadian citizens to purchase properties in cash. If you are not a Mexican citizen, you will have to set up a bank trust through a local lawyer.