| Guide to Property and Real Estate in Mexico
In this guide:
>
Introductory Guide to Property in Mexico
> Renting Property in Mexico
> Buying Property in Mexico
> Estate Agents in Mexico
> Real Estate Developments in Mexico
If you plan to stay in Mexico for an extended period of time, it may be more cost-effective for you to seek some real-estate, either to rent or to own, in Mexico. You may also want to consider Mexico as a destination to buy a second home, perhaps to retire to later on.
Whatever reasons you may have, a property investment in Mexico can offer good value for your money, but as with all property investments, you'll need to do your homework first!
Foreigners can own property in Mexico - even near the border and coastal areas - and you don't need to have a resident permit in order to be a land-owner.
If you plan to buy property and retire to it in Mexico, you will find that getting a permit to reside in Mexico is a formality provided that you can prove a regular income and fulfill the retirement criteria. Connect to the section on Mexperience about Retirement in Mexico for full details.
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Introduction to Real Estate and Property in Mexico
Foreigners staying in Mexico for an extended period of time (usually greater than a few months months) will probably find the rental of a property - or perhaps a purchase - better value than staying at a hotel for the whole time. Others may just want a home in the sun 'down Mexico way' as a place to stay on holiday, and rent out when they're not there...
Whether it's cheaper to rent or buy during a stay in Mexico depends on where you are staying, and what your requirements are. From a fiscal viewpoint, big city hotels can be as expensive as New York, London or Paris: hotels in small cities and towns can be incredibly good value for money - especially in Colonial Cities.
As for a property investment - Mexico has a lot to offer. Property prices in Mexico have risen substantially in recent years - especially near the coast - but value can be sought with time and patience. Property in Mexico can also surrender an annual rent, depending on where the property is situated. Cost of ongoing ownership is also relatively low in Mexico (maintenance, taxes, etc).
> Renting in Mexico
Some rental properties require a 6 month minimum term - others will let you stay on a month-by-month (or even a weekly) basis. Local estate agents can help you find the short-term accommodation you need, but there are other ways to find property as well - read the Renting Guide for more details.
> Buying in Mexico
Buying property in Mexico is a major commitment: in terms of time, effort and money - just as it is in any other country around the world. Contrary to what you may think: buying property in Mexico can be safe and sound, but you must seek professional advice, exercise caution, and do your homework. You'll find a good outline about what's involved in the Buying & Selling Guide.
> Estate Agents
The role of the estate agent in Mexico is similar to that of the estate agent in the UK/EU/US. Connect to the Estate Agents Guide for advice and information about choosing an estate agent to help you rent or buy property in Mexico.
Important! The information in this section is provided for outline guidance only. Information, figures and rates change without notice. Seek professional advice before entering into any agreement or contract. Mexperience Conditions of Site Use
Guide to Renting Property in Mexico
If you're staying in Mexico for an extended period, or even you're planning to buy property, the chances are you will need to rent beforehand. This page offers an overview of the rental scene in Mexico and some tips and advice on finding a rental property for your needs...
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Renting in Mexico
> Finding A Rental Property
> Deposits and Contracts Terms
> Payment of Rent
> Rental Increases
> Insurance
> Checking Out
Important! The information in this section is provided for outline guidance only. Information, figures and rates change without notice. Seek professional advice before entering into any agreement or contract. Mexperience Conditions of Site Use.
Renting in Mexico
People who rent property in Mexico far outweigh the number who buy. This is because property prices are much higher than average incomes will allow people to afford, and although mortgages are now being proffered by Mexican banks (a few years ago they were virtually unheard of), at an average of 15% a year, they are expensive by current US and European standards.
As access to long-term credit secured by real-estate is becoming more widespread, this is slowly beginning to fuel demand for land and house sales, but on the whole, the majority of the population still rent.
As a result of this rental properties are plentiful, commonplace and varied - and there is something to suit every need, and every budget.
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Finding A Rental Property
You need to establish what your budget is going to be and then draw up a shortlist of areas in the location you want to rent in, avoiding less desirable areas, including those near shanty-towns and areas where crime levels and violence are or may be high. This is especially relevant in Mexico City. Smaller towns and cities just don't suffer from crime the way Mexico City does.
Establish what kind of property you want and where: An apartment or house? Close to town, or out of town? Near the market and local services? Away from the crowds? In a gated community?...
In smaller places, take time to walk around, exploring neighborhoods to get a feel for the area you may rent in. This is especially important if you'll be renting for an extended period.
Just as buying property successfully requires attention to: location, location, location - the same rule applies for acquiring good rental property.
You will need to be able to speak some Spanish to effectively rent property on an independent basis, especially outside the main tourist areas. Wherever you are in Mexico, if you only speak English and don't employ the use of an agent, your options may be limited and you may not end up negotiating the best deal possible.
There are several ways to approach the market:
Estate Agents: Estate agents will have a list of rental properties on their books. Be sure to go to several estate agents in the area, as they may all list the same property - possibly at different rates. Estate agents will know the area and be able to point you away from areas you wouldn't want to live in and especially useful if your Spanish language skills are limited or you want a professionally managed service.
Newspapers & Internet Cafe Billboards: This is a common way people find rented property in the US and Europe; classified sections of newspapers in Mexico do contain property listings, but you explore other routes as well.
Your Hotel: If you're staying at a hotel, they may have contact with one or more property agents in the area. You may want to enquire at reception as they could put you in touch with a local person who could help you out.
Local People, Local Places: A good way (as reported by many people who go to Mexico searching for a rental) is to engage with the local people in an area where you have decided to look for a rented property (check that the area meets your requirements and standards). Go back to the area regularly, get known and chat with people: in restaurants and cafes, for example. Internet Cafe's often have billboards with information about properties and rooms for rent locally - check them out!
Mexican people are very friendly and sooner rather than later you will connect with someone or somewhere who can refer you to a person with a place for rent. You may also see signs on some buildings or houses that read "Se Renta" (for rent) - with a phone number. This may be the agent if the sign is very posh or labeled with a logo, or most probably the landlord if it's handwritten. If you like the look of it and its in the right area: you might want to explore it further.
References
People don't tend to ask for references in Mexico for short term informal rentals (depends on the circumstances), although if you deal through an Estate Agent you will probably be asked for one or two.
When dealing directly with landlords, they tend to judge whether or not they want you to rent the property during their first meeting with you. How much rent you pay and what deposit is required can also be decided at this initial meeting. If you are dealing directly with the landlord, be aware that your first impression will count - lots!
Key Questions
Ask about the availability of electric, water and gas - are they hooked up, or do you need to do this? If there is gas, you are likely to need a gas cylinder - you may need to contract this yourself, and pay a deposit on the tank; some properties now have direct gas lines. Ask about the state of the shower, and if there is a water purifier on the tap, ask if it requires maintenance (and when was the filter changed). Is the phone connected? Are there any maintenance problems you should know about? If its a house, and it has a garden, ask if there are any tools - or if the landlord knows a gardener you can hire. If there is a swimming pool, ask about its maintenance. If there is an alarm, ask how to operate it. Is there a water pump (for pressure)? If so, is it automatic, or manual?
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Deposits and Contract Terms
Deposits tend to be the equivalent of 1 calendar month's rent, paid upfront with your first month's rent. An inventory should be carried out with the agent or landlord, noting down any major defects that exist when you start the rental agreement. Any items missing or (further) damage would be charged to your deposit.
Contract Terms usually state that you must pay the deposit and first month's rent in advance.
Your contract may specify a minimum term (say, 1 month), and also specify how much notice you have to give before you leave. Be sure that you understand your commitments fully before signing the agreement.
Some rentals will have a 6 or 12 month minimum stay: some may be as short as a week, although the latter tend to be holiday homes or apartments and are likely to cost more.
If you are in any doubt about your contract, or if you cannot read and understand Spanish well, either use an agent, or get someone to translate it for you. Although the contract may have an English version, in a dispute, only the Spanish version will be recognized in Law.
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Payment of Rent
You will either pay the agent or the landlord directly. The concept of "Direct Debit" (direct transfers out of your bank account to pay bills) doesn't really exist in Mexico yet, so you'll have to hand-over cash to the agency office, or to the landlord who will visit every two weeks or monthly to collect.
Be sure to get an official receipt for all payments, especially those made with cash.
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Rental Increases
If you are on an extended stay, be aware that rents in Mexico tend to go up annually. Unless otherwise specified in your contract, rents can go up by any amount the landlord sees fit, and you may have only a week to move out if it's too much! In the majority of cases, increases are modest and in line with Mexico's inflation.
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Insurance
It may not be your responsibility to insure the property (check the contract), although you may wish to insure the contents and your personal belongings. Local insurance companies can arrange this for you and if you're using an agent, they may be able to recommend someone - but shop around as the agents will be on a commission and the deal they proffer may not be your best alternative.
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Checking Out
Check your contract to see how much notice you need to give: you should check this before you sign.
Be sure to give the landlord and/or agent plenty of notice, if necessary in writing, prior to your planned departure.
You should go through the inventory with the landlord or agency and provided everything is in good order, your deposit will be returned to you, either directly by the landlord or by the agency office.
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Important! The information in this section is provided for outline guidance only. Information, figures and rates change without notice. Seek professional advice before entering into any agreement or contract. Mexperience Conditions of Site Use
Mexican Property & Real Estate: Buying Property in Mexico
Purchasing property in any overseas location requires a extensive amount of research, planning and preparation, and Mexico is no exception. You will also need to hook up with the right professionals who can guide you through to a successful property transfer in Mexico. Here's are introductory guidelines...
>
Property in Mexico
> Financing your Mexican Property
> Mexican Law: Property ownership
> Ejido (Agricultural) Lands
> The Role of the Notary Public in Mexico
> Common Checks that should be made
> Outline Property Purchase Procedure
> Choosing the right location
> Buy or Build?
> Building Regulations & Standards
> Estate Agents & other ways of getting to Market
> Valuation for Property in Mexico
> Costs and Taxes
> Time Scales
Important! The information in this section is provided for outline guidance only. Information, figures and rates change without notice. Seek professional advice before entering into any agreement or contract. Mexperience Conditions of Site Use
Property in Mexico
This introductory guide assumes that you are considering the purchase of land or property in Mexico. If you are looking for advice solely on property rentals in Mexico, then connect to the page on Renting now.
Buying property in Mexico, whether its land, a serviced apartment or a house, can offer good value for money in comparison to prices in the US and Europe, although prices in some areas have risen dramatically in recent years and care should be taken in assessing a property's true value. Mexico's land costs can be lower, building and maintenance is cheaper, cost of ownership (taxes, utilities) is very low, and although there are 'horror stories' associated with buying property here (as in every country in the world?), the overwhelming majority of all real estate deals go through legally and smoothly.
The reasons to buy property in Mexico come down to a personal choice, and depend on your individual circumstances. Perhaps you will be living in Mexico for some years and you see long term rental as 'wasted' money, or perhaps you're looking for an overseas property investment that will surrender a rental income, while providing you with a place to stay on holiday when you visit...
Property values in Mexico tend to increase year-on-year, as they do in most places, but in many places (with notable exceptions in popular cities and coastal areas) not as significantly as prices have risen in the US and Europe in the last few years. And as with all property, the relative value and appeal of land and property in Mexico comes down to the three key factors: location, location, location.
Another important factor to consider in Mexico when buying property is the developed state of local and surrounding infrastructure in the location you're looking at. Not all areas are well developed, and property prices will be cheaper in those that are not. However if, for example, a high speed road is built connecting a previously 'remote' location to other, better developed places, you may see a property investment in that area increase substantially. Mexico is a vast country - at nearly 2 million square kilometers - and not all of it is easily accessible. Road infrastructure is improving every year, with most major places now adequately connected, and work continues to connect the more remote areas, but this will take time.
If you're considering the purchase of property in Mexico, you will need to undertake extensive research, choose your location and property very carefully, and ensure that you hire the right professionals and that the letter of the law is followed. Thousands and thousands of foreigners have successfully purchased land and property in Mexico. With the right approach and plenty of homework, there is no reason why you should not become one of them if you want to.
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