Buying a Condo in Mexico – The Ultimate Guide
We put together this guide for investors considering buying a condo in Mexico.
Whether you are thinking of buying a condo primarily as an investment offering high income-generating potential or you are looking for an apartment to keep for private use, this guide is designed to cover all aspects of purchasing a condominium unit from finding condos for sale Mexico through to the steps involved in the buying process.
The 7th Heaven Properties guide to buying a condo in Mexico
Contents
Is Buying a Condo in Mexico a Good Idea?
How Much Does it Cost to Buy a Condo in Mexico?
Can Foreigners Own Condos in Mexico?
Where are the Best Places to Buy a Condo in Mexico?
How Do you Buy a Condo in Mexico?
Getting a Mortgage in Mexico
Investment Opportunities – Explore Condos for Sale in Mexico
Is Buying a Condo in Mexico a Good Idea?
Buying a condo in Mexico offers investors the opportunity to own property at a relatively affordable price in one of the world’s top vacation destinations.
For buyers looking to own their own home in the sunshine, Mexico is a fantastic choice which has long been popular with property buyers. Why? The reasons are many and varied. For some it’s to laze on the country’s magnificent beaches and enjoy a laid back lifestyle in the sunshine, while for others it’s to enjoy a unique cultural heritage which is unlike anywhere else in the world, from world-class cuisine to fascinating historic sites and breathtaking natural beauty. Best of all, property prices and the cost of living are very attractive so all this can be enjoyed at a fraction of the cost of countries such as the USA, Canada and Europe.
For investors looking for investment properties in Mexico offering high potential for significant income generation, Mexico is also a choice that makes a lot of sense. As one of the world’s top 10 tourist destinations, the country welcomes over 40 million overseas visitors each year. The very large and consistently growing number of tourist arrivals offers condo owners the opportunity to earn significant income via the vacation rental market.
How Much Does it Cost to Buy a Condo in Mexico?
The cost of condos in Mexico varies according to several factors such as location, size and perceived value.
Prices range from approximately US £80,000 to US £100,000 for studio or 1 bedroom condos for sale in Tulum or Playa del Carmen within a new condo development up to US $2 to $3 million for a luxury penthouse apartment in prestigious beachfront or waterfront developments in Los Cabos or Cancun.
Can Foreigners Own a Condo in Mexico?
Yes, foreign nationals can buy condos in Mexico and the Government of Mexico welcomes foreign investment.
Although there are some restrictions to foreign property ownership in Mexico, there are also some very commonly used ways to bypass the restrictions.
For example, according to Mexico’s constitution, foreigners are prohibited from owning land within 31 miles (50 km) of Mexico’s coastline or within 62 miles (100 km) of Mexico’s international borders.
To work around this constitutional restriction, it is very common for foreign buyers to purchase property through a bank trust called a “fideicomiso” which is set up by a local bank with the foreign buyer as sole beneficiary or via the establishment of a Mexican corporation.
Where are the Best Places to Buy a Condo in Mexico?
That depends very much on your personal preferences and objectives.
If your heart is set on the eastern Caribbean coast, condos for sale in Cancun and the Riviera Maya (including Playa del Carmen, Tulum and Akumal) are very popular choices.
For those who prefer the western Pacific coast, be sure to take a look at condos for sale in Cabo San Lucas at the tip of the Baja California Peninsula and condos for sale in Puerto Vallarta located further south in the State of Jalisco.
Read more: Best Places to Buy Property in Mexico
How Do you Buy a Condo in Mexico?
Buying property in Mexico is a relatively straight-forward process. Below we have outlined the typical process.
Firstly, once a preferred unit has been selected, the buyer will need to submit a written offer.
If the offer is accepted by the seller, the buyer will then need to pay a deposit into an escrow account to secure the unit which is typically 5% to 10%.
Once a formal agreement has been drawn up, the buyer will need to present all required documents to a Notary and ensure the “fidecomiso” documents are drafted and finalized.
Closing takes place once all paperwork has been finalized, both parties have signed and all taxes and payments have been made.
For more detail on the purchase process, please see our guide to buying property in Mexico.
Getting a Mortgage in Mexico?
It is possible to buy a condo in Mexico with cash or a mortgage.
Both local banks, international institutions and some of the major developers offer financing options to residents and foreign buyers alike for the purchase of residential property and residential lots as well as construction or renovation.
In the case of non-residents, up to 70% financing is typically available, which would therefore require a minimum down payment of 30%.
As you would expect at home, upon receipt of your application the financial institution will conduct typical checks to assess your suitability for a mortgage.
Should your application be approved, you should expect interest rates to be a little higher than in the USA, Canada or Europe. Mortgage terms tend to be in the region of up to 15 years.
Investment Opportunities – Explore Condos for Sale in Mexico
Ready to begin your search for condos for sale in Mexico?
To find investment opportunities from across the country from brand new beachfront condos for sale in Playa del Carmen to traditional apartments filled with character in Puerto Vallarta, explore condos for sale in Mexico on our website.
Please note that our website only showcases a sample of the condos and apartments available.
Contact 7th Heaven Properties, the Luxury Caribbean Property Specialist, to explore the full range of investment opportunities in Mexico.