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 Purchasing Real Estate in Mexico

Can You?  Should You?

The first question usually asked about buying real estate in Mexico is whether you can actually do it.   The answer is yes... many expatriates have purchased property here.  The second question is should you do it?  While it  is true that in years past the Mexican government did not allowed foreigners to buy property, this is no longer the case.  

Although there are restrictions, foreigners can buy property, and they will receive either a simple-fee title or a trust deed allowing them to sell the property or will it to their heirs if they so choose.  The property will not be confiscated by the Mexican government, which is better than in the U.S. where the Supreme Court has ruled that local governments can take homeowners' properties. In years past, buying real estate was always a cash transaction, but now home mortgages are available to qualified buyers; some of these mortgages are offered by Mexican companies, but some are offered by American companies.  Interest rates are generally higher than for loans on U.S. property, and there are other fees attached, but mortgages do allow people without a large lump of cash to buy property.

A general rule of thumb about Mexican real estate is that buyers will receive more for their money in Mexico than back home.  Types of homes in Mexico vary as greatly as they do in the States or in Canada, with everything from expensive estates to one room shacks for sale, but  you can often get twice the house for what it would cost north of the border.  Generally, the closer one gets to resort areas or urban areas, the more expensive the property.   Real estate in rural areas or small towns can be downright cheap.   

Anyone considering buying property in Mexico should keep in mind that he will need a reputable notary (lawyer), that real estate agents are not licensed or regulated and that there are no official building codes.  It is also vital to have a thorough title search done to ensure that the person selling  the property is the person who actually owns it.  There have been numerous scams where gringos have thought they had purchased property only to find it was never really for sale in the first place.  Foreigners who are not yet ready to retire or who are unsure about living in Mexico often buy property and then rent it.   If you plan to buy real estate and relocate here, we recommend staying for at least 6 months in the town where you plan to buy  to ensure that you are really ready to live in Mexico.