Select Mexico Properties

If you don’t know much about the Mexican mortgage industry, you’re not alone. In fact, until just a few years ago, you couldn’t get a mortgage in Mexico, or anywhere else for property located in Mexico. Things have changed when it comes to
buying real estate in Mexico, and the mortgage industry is now thriving here.

Buying real estate in Mexico used to be a cash-only proposition. It was difficult for ordinary Mexicans to amass the money they needed to buy homes, and it was downright dangerous for foreign investors to purchase land here. Complicating matters is the fact that the Mexican constitution prohibits non-Mexican citizens from owning outright land that is within 50 km of the Mexican coast or 100 km of a national border.

Thanks to changes in Mexican law, these two situations have been improved. Mortgages are now readily available for both foreign investors and Mexican citizens. You can find long-term lending products available in either pesos or dollars. Peso mortgages are offered at a slightly higher interest rate than those denominated in dollars. If you prefer the security of a “dollar-mortgage” these are widely available here, too.

In addition to mortgages, you can also get loans to buy land and construct homes. This is great for buying real estate in Mexico that you intend to develop as an investment. After construction is finished, you can sell the home and repay the mortgage while still retaining enough for a tidy profit.

Don’t worry about the demand for luxury real estate here. Retirees and investors from all over the world are buying real estate in Mexico. The demand for luxury real estate is expected to continue for the foreseeable future, as the tidal wave of Baby Boomers increases.

Contact a Select Mexico Properties sales representative today for a lender referral, and get started on your retirement plan by buying real estate in Mexico!

Photo Credit: Jan Stastny