5 Steps to Homeownership in Mexico
Updated: Dec 31, 2022
So you want to buy property in Mexico?
It's easier than you might think...
Are you dreaming of living beachside but don't know if it's possible or even where to begin? Let me explain the process in 5 simple steps. Whether you're looking for a place to retire, part time vacation home or strictly a real estate investment, the path is easy when you have the right guidance and support.
Let's jump into our 5 simple steps!
Step #1 - Do Your Homework
Researching and asking friends who have purchased here will help you find a real estate agent you can trust. Remember, not everyone is licensed here as it's not yet required and that's okay. There are many unlicensed brokers who are very knowledgable and competent. As a matter of fact, you can't get a license without first having a few real life transactions under your belt. What you're looking for is experience and integrity. In this wild west market, trust trumps everything.
Once you have that peace of mind, you can move on to step 2...
Step #2 - Window Shop
This is the fun part. Tell your agent what you want, be specific, just like we described here and you'll get the best results. It's important for agents and clients to work together, communicating often and openly to come up with the best match for your unique needs and style. Start with virtual tours to create a short list of properties to tour in person. I encourage clients to remain open to the possibility of different towns/areas unless you're a frequent visitor and are confident in your choice.
"Virtual tours give you more time to relax on the beach when you finally get here."
Step #3 - Jump on a Plane
This is where it gets real. Visiting in person brings you one step closer to owning your own condo, villa, hotel or land in paradise. Every broker does things a bit differently but if you choose to work with me, I'll be here to greet you and prep you for your property tour. I like to start with a casual meeting over light refreshments where I'll brief you on the itinerary and confirm your investment goals as it's easy to get caught up in FOMO when you're out viewing these beautiful properties and pull the trigger prematurely. I'm here to keep you on track. As mentioned above, I encourage you to check out more than one area, you never know where you might find the perfect fit. We will compare notes over lunch during or at the end of our tours each day.
Step #4 - Decision Time
Relax! If it's strictly an investment, stick to your numbers and avoid emotion. If it's a place you're going to enjoy yourself or with your family and friends then chances are, you'll know it when you see it. If you're truly struggling, your agent can help you through this part with some important questions to ask yourself.
Step #5 - The Boring Stuff
A) The last and least interesting part of the process is actually one of the most important. Right up there with Step #1... it's time to retain a lawyer and start the paperwork. Keep in mind that closing costs here can run between 6-8% of the price of your new property.
B) If you are a foreign buyer you will also need a fideicomiso which is essentially a bank trust. Your lawyer will help you set this up with the bank.
*In the case that you're using 3rd party financing, this will be the time for that as well although most transactions here are cash deals.
Are you ready?
If you work with me I promise to keep your heachaches to a minimum. Call me today to have a chat about your investment goals.