BUYING OR RENTING PROPERTY IN MEXICO - MEXICO REAL ESTATE

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BUYING OR RENTING PROPERTY IN MEXICO - DON'T BE AFRAID!

Americans and other foreigners may obtain direct ownership of property in the interior of Mexico. However, under Mexican law, foreigners cannot own property outright within the restricted zone. The restricted zone encompasses all land located within 100 kilometers (about 62 miles) of any Mexican border, and within 50 kilometers (about 31 miles) of any Mexican coastline.

There are many options available to buy property in Mexico. There are houses for buying or renting, villas for buying or renting, condos for buying or renting, and multi-plexes, too. All of these options make for terrific investments, in addition to places to live, and are readily available.

The reasons of buying property in Mexico can be financial, but they will largely be a personal choice. If you are a regular visitor to the country, perhaps renting is a waste of money. Perhaps you are considering your retirement and would like to establish your future residence as early as possible. In the meantime, you can rent the property out and have some, if not all, of the expenses paid for as it waits for your arrival.

If you are a serious candidate buying or renting property in Mexico, consider the value of the property as it compares to the surrounding real estate. Consider also what the long-term outlook for the particular region is.

Buying or renting property in Mexico is only slightly different than doing the same in the United States, but even those small differences can cause problems if not handled correctly.

UNDERSTAND THE PROCESS OF BUYING AND RENTING PROPERTY IN MEXICO

Buying Property in Mexico - Since the 1970's foreigners have been able to buy real estate in Mexico with coastal and border properties which is owned through a trust deed established with a Mexican bank. Foreigners may also directly own rural or urban land in the interior of the country with certain limitations on specific agricultural tracts. To understand the process of buying property in Mexico please see our guide about buying property in Mexico.

Rental Potential - There exist a very strong rental market for both homes and condos in Mexico wih it's rental expertise can assist you by providing a full range of rental services for you. Good properties can expect to have an average occupancy of 85%.

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...

Renting Property 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.

Finding a Renting Property in Mexico
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? Just as buying property successfully requires attention to: location, location, location - the same rule applies for acquiring good rental property.
Approach renting propeties market
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.

• Estate agents will have a list of rental properties in Mexico
• Classified sections of newspapers in Mexico do contain property listings
• See signs on buildings or houses that read "Se Renta" (for rent) - with a phone number
• Chat with Mexican people about renting property. They are very friendly - you will connect with someone who can refer you to a person with a place for rent.
• People don't tend to ask for references in Mexico.
• Ask about the availability of electric, water and gas.

Deposits
Deposits tend to be the equivalent of 1 calendar month's rent, paid upfront with your first month's rent. Contract Terms usually state that you must pay the deposit and first month's rent in advance.

Payment of Rent
Be sure to get a receipt for all payments, especially those made with cash.

Insurance
Local insurance companies can arrange this for you and if you're using an agent, the agency may be able to recommend someone.

Checking Out
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.