Select Mexico Properties

For many years, purchasing Mexico real estate was a dicey proposition. First, most Mexico real estate was (and often still is) purchased for cash. Until just a few years ago, Mexican banks didn’t offer mortgages, and foreign lenders were largely unwilling to write loans for property purchases here.

Second, Mexican law doesn’t permit foreign nationals to own property near its coastlines. Instead, properties are held in trust (usually by a bank) for a specific period of time. Trusts can be renewed, so ownership interest is preserved, even over long periods of time.

Third, gaining a clear title to Mexico real estate was challenging, to say the least! Many people thought they had purchased land and later discovered that they had lost their investments because they did not have a clear title, or take proper possession of the land. .

Fourth, once people did purchase Mexico real estate, there was no real way for them to tap into the equity in their homes, even though their properties may have appreciated significantly in value.

The great news for people who want to purchase Mexico real estate is that many of these potential stumbling blocks have disappeared. Dollar-based and peso-based mortgages are now available for Mexico real estate. A peso mortgage usually comes with a higher interest rate, but requires a smaller down payment and smaller monthly payments than dollar mortgages do.

The laws regarding ownership of near-coastal properties haven’t changed, but holding property in trust is extremely safe. Trusts are established for periods of 50 years or more in some cases, and allow the owner to pass the property in trust along heirs.

Title insurance is now available for Mexico real estate purchases. Firms known and trusted in the US for their title work offer title insurance here in Mexico. Purchases are thoroughly researched and clear ownership interests are established. If a title insurance policy is issued and a later claim upsets your ownership rights, your investment is protected.

Possibly the most exciting development for owners of Mexico real estate is the availability of re-financing loans. It is now possible to take advantage of the equity that accumulates in Mexico real estate.

The climate has changed for Mexico real estate investors, making it now safer than ever to buy investment-grade properties here. If you’re interested in exploring what Mexico real estate may offer you, please contact a Select Mexico Properties sales representative today.