Mexico Real Estate

Today i read a press realease about a brand new guide available for foreigners looking to invest in Mexico real estate.

 You can read the full press release here

Sabancuy, Campeche  -  Announcing a price reduction on Sabancuy, Mexico, a lot / land. Now $65,000 USD - Mexico beach lots $65000.

Property information

Puerto Morelos, Quintana Roo  -  Announcing a price reduction on puerto morelos, a 400 sq. ft., 1 bath, 1 bdrm single story "2nd story can be added". Now $35,000 USD - Cheaper than your car.

Property information

In todays economy the best and safest investment oddly enough is actually in buying and selling Mexico real estate.  Let me give you a real life example so you understand exactly how this works.

In 2007 a gentleman from the United States bought a small home from me.  The selling price including all closing costs came to $44,900usd.  This client purchased with the thought of a pure investment versus investing the money in a bank, the stock market or any number of other "safe" investments with safe returns.  To many people in the investment arena this would sound very risky or ill advised.  However, when you take a closer look at what has happened with Mexico property over the last ten years most would agree that this is a very sound business move.  This is especially true of homes and land near the beach in the Riviera Maya of Mexico.  In places like Playa del carmen homes for sale have doubled and some cases tripled or more in the past decade.  Even with the news media and everyone claiming a terrible economic crisis, still the property values remain and increase.

To continue with this case study, in December of 2007 the client bought this home in the Riviera Maya and paid under $45,000usd for the home.  This same client contacted me in late 2009 asking me to put the home back on the market for the asking price of $72,500usd and this price would include the closing costs.  From December of 2007 until December of 2009 the only thing that was done to this home was painting of the exterior.  The cost of paint and labor was approximately $500usd.  So now the client has a total investment of $45,400usd.

The home was sold in January of 2010 and the final agreed upon price was $71,000usd.  The closing costs paid by the seller would be about $5000usd so that leaves $66,000usd.  That is all within a period of just one month over 2 years or 25 months.  If you do the math that is a return on investment of about 45%.  Now let me ask the question, if this same client had not purchased property in Mexico and instead invested this same money in any other place would there have been a 45% return on investment?  I challenge anyone to find something legal where in 25 months you could see that type of return.

This is something that happens frequently in Mexico and purchasing now is very easy for foreigners.  There are a few things that an investor needs to know and look for prior to buying a specific property in Mexico but if you do your due dilligence you will find that many deals like this still do exist.  In a bad economy if you are in investor this is the best time to find these type of properties in Mexico.

 If you want to find cheap Campeche real estate you should also check my Mexico beachfront listings

Chemuyil, Quintana Roo  -  Announcing a price reduction on calle cuba mza 203 house 17, a 653 sq. ft., 1 bath, 2 bdrm single story. Now $83,900 USD - Check it out!.

Property information

Chemuyil, Quintana Roo  -  Announcing a rent/lease reduction on Akumal, a single story. Now $875 USD Weekly - .

Property information

Mexico is a great place to vacation as it is very close to the United States and Canada by plane and the climate is warm when it is very cold everywhere else.  Have you ever been on vacation in Mexico?  If so, have you ever wondered how it would be possible for you to own your own place here?  I know i did that several times while on vacation in Mexico.  First, it seems a little scary looking at buying a property in another country where you do not speak their language.  Also, there are plenty of rumors flying around about how the government can take away your property or how corrupt things are in Mexico it goes on and on.  There of course are also rumors that foreigners cannot own a property in Mexico.  Nothing can be further from the truth.  The government cannot take away your legally titled property once it is registered with the public registry.  Also, foreigners can and do own homes, land, condos as well as commercial property in Mexico every day.

You just simply have to know the laws.  According to the Mexican constitution a foreginer cannot title any property that is within 100km of any border or 50km of any coast in their name.  That doesnt mean you cannot own it, it means you have to title it differently than you would if you were in the interior of Mexico.  In the interior you can buy property as you would in the U.S. or Canada.  It can be titled in your name with no problems at all.  If you want a home or property in mexico that is within 50km of a beach then you have two choices.

First choice is setting up a Mexican corporation or an S.A. de C.V.  This is very much like an LLC corporation in the U.S.  It is primarily for sole propreitorships and small to medium business.  That business then in turn can purchase property and hold title to the property in the business name.  You need two people that are 18 or older to sign up as principles of the corporation.  The nationality of the two people doesnt matter and you can split the ownership of the company any way you like.  For example each person is 50% owner or one can be 99% and the other can be 1%.  In order to title your property in a business name you have to show that either you are doing business with that property OR that you have the intent to do business.  An example might be if you bought a building and downstairs was a restaurant that you rented to someone and upstairs was a condo and you lived in it.  Something like that would work, but be aware if the tax/real estate authorities ever choose to investigate your property and they find that it is primarily for residencial use only?  They can slap you with a pretty hefty fine.

The other way you can title the property is in a bank trust or "fideicomiso."  The property you have is titled in the name of the trust and then you are the trustee meaning that you have full control over the trust thereby giving you rights of ownership of the property.  For most purposes people use the fideicomiso to title their home.  Even if you plan to rent out your home or condo to make money that is still considered residencial and not commercial.

 There are a few more things to know about this process when purchasing but this gives you a high level overview of how it works.

 If you have any questions about the buying or selling process feel free to email me at info@cheapmexicorealestate.com

Cheack out mexico real estate homes in puerto morelos starting at $42,500usd.

This is an important announcement regarding Mexico real estate in Puerto Morelos for $39,900usd + closing.

 Effective January 15, 2010 the Puerto Morelos real estate there will increase to $42,500usd + closing for each home.

The closing costs are about $5,500usd for each home and that includes the Fidiecomiso (bank trust setup).

If you are seriously thinking about buying one of these 2 bed 1 bathroom homes in Puerto Morelos please contact me today at info@cheapmexicorealestate.com to get your paperwork in and lock-in the old price.  After the 15th the price will be set and it will not be negotiable.