Property ownership is a dream that many people share, and it often represents one of the largest financial investments a person makes in their lifetimes. Working, paying off the mortgage over time and maintaining the property in which your family lives can be both a challenge and a joy.
And while those that succeed in achieving their dream of home ownership usually choose to buy real estate in their hometown or country of origin, some dreams are a little different. Some people dream of moving down south instead, escaping the day-to-day grind in Canada or the United States and moving to Mexico.
You, a Mexican Property Owner?
In an age where working from home is more and more common, buying property in Mexico can be a fantastic opportunity, whether the property in question is your first home, a vacation home for use in the winter, or a place to enjoy a retirement.
Mexican real estate gets more and more valuable every year, and the pace of new construction has not slowed in recent decades. So for those wondering: “Can foreigners buy property in Mexico?,” the answer is yes, absolutely!
Not only is buying real estate in Mexico an exciting way to enjoy a foreign culture and explore a new country, it can also be a fantastic financial investment. Buying property in Mexico could be one of the best financial decisions you’ve ever made!
Read on to learn more about the ins and outs of buying Mexico real estate, and how easy it is for foreigners to buy property in Mexico and live their dreams.
Real Estate in Mexico: A Great Investment Opportunity
Before getting into the nitty-gritty details of buying property in Mexico and the legal aspects of Mexican real estate transactions, it’s important to understand why so many Americans, Canadians and buyers from countries all over the world have chosen to live or own property there.
Being the owner of real estate in Playa del Carmen, Cancun or other Mexican hotspots brings you closer to what makes Mexico so great: the sun, sand, beaches, low cost of living and vibrant culture. Foreigners that buy real estate in Mexico also have access to gorgeous mountains, jungles, deserts, and a climate that is second to none. The nature of Mexico real estate varies by location, and allows you to choose the style that fits you best.
For example, if you want to buy real estate in Tulum to take advantage of what is sometimes described as a “hippy-chic vibe,” you’ll be able to find a number of developments that suit your needs. If instead you’d prefer to live in Merida, a town in the northern part of the Yucatan Peninsula 30km from the beach, you can do that too, enjoying all it has to offer. With colonial buildings, vibrant culture and unique and flavorful cuisine, it’s not a bad choice!
The point is, buying property in Mexico is within your reach, and much easier than you may think. There is no shortage of areas to explore, so get started today!
How to Buy a Home in Mexico
While it’s easy to buy Mexico real estate today, it wasn’t always that way.
Prior to 1973, foreigners were not permitted to buy property in Mexico. However, after the Mexican Government passed the Foreign Investment Law, non-Mexicans were able to buy property anywhere except for the Restricted Zone, which was defined as areas within 100 miles of the borders, and within 50 miles of Mexico's coastlines.
In the early 1990s, the Mexican Government relaxed the rules even more, opening up the Restricted Zone to foreign investment. Since then, it has been completely legal and safe to buy property in the Restricted Zone, provided that you comply with certain government rules.
Now, foreigners are able to purchase land and property within the restricted zone as long as they do so through what is called a Fideicomiso.
What is a Fideicomiso?
A fideicomiso is a property trust guaranteed by a recognized Mexican bank, one in which you are the beneficiary. Using a fideicomiso, foreigners can legally purchase Mexico real estate in the country’s restricted zones.
A trust agreement is renewable on a 50 year period, and puts you in complete control of the property. And while owning property through a fideicomiso includes a setup cost and a yearly maintenance fee of approximately $600 USD, you can rest easy knowing that you have all the same rights that would be enjoyed by a Mexican owner.
A foreigner can buy property that cannot be sold without his or her written consent, and using a fideicomiso allows you to own multiple properties, to will your property to your heirs, to build on land you buy, or to sell the property to another interested buyer down the line.
It’s a safe, legal and very common way for a foreigner to own real estate in Mexico, something more and more people are discovering every day. More than one person can be designated as the beneficiary, so couples can co-own, and so can friends.
Live the Dream: Buying Property in Mexico
For those interested in learning a little bit more about buying real estate in Mexico, there is a lot of good information out there. You can start by checking out one of our blogs on the subject, and learn more about the step-by-step process and how to buy Mexico real estate easily.
We also recommend reading up on the best places to explore in our where to buy real estate in Mexico blog, as well as our blog that covers issues related to property taxes in Mexico. But as always, if you have questions or want some advice, it’s usually alway best to reach out to professionals.
Zisla has been in the business of helping foreigners buy real estate in Mexico for years. They know all the details, have access to the best new and upcoming property developments, and can help you decide how you want to approach the situation in a way that suits your needs best. Call Zisla today, even if only for a chat. When you have your feet up in Mexico, enjoying your new view, you’ll be very glad you did!