Why Real Estate Investing in Mexico is More Precious and Valuable
For many in the United Sates purchasing interest in foreign markets is turning out to be a hot ticket item. More foreign nations are developing residential and commercial real estate fast out spacing the US markets, with their growing middle class and the influx of jobs from the US and Canada.
The weakening dollar is also a contributor to foreign investments. When you are cashing in, the return on your investment is higher when you buy using yen, peso, Euro, or another foreign currency.
Clearly it requires a formidable and great deal of home work to get profit out of foreign investments. It is absolutely not enough to buy available land or commercial property, in a foreign country because you can afford it or because of your vacation or enjoyment there earlier.
Besides, there are many different laws that govern other nations which make property owner ship, investment much difficult and different than it is here in the US. To think that you have already and this experience and it is very easy to make foreign investment is short sighted.
Mexican real estate law and how it relates to foreign investment
Mexico has more detailed laws about the investment in and ownership of property especially for foreigners. Their constitution, originally barred foreigners from owning land in Mexico probably to avoid invasion from foreign lands.
According to Article 27 of the Mexican constitution in a zone of 100 kilometers 6w miles) along any border or 50 km (31 miles) along the coast foreign entities can not acquire direct ownership of the land and waters. Till now, foreign investors were allowed ownership of real estate only located outside of the Restricted zone.
Because of the demand of foreign investors for ownership of real property and for the potential positive impact on the economy, the Mexican government passed a series of Foreign Investment Laws from 1973, modified in 1989 and again in December 1993 to incorporate the provision of the NAFTA treaty.
As the constitution cannot be changed, the country allowed land trusts to be established by foreign investors instead.
This is a very common term when a person wants to invest on or own property in Mexico. It is better for all Americans to familiarize themselves with this term.
According to Reality Executives, people who buy homes to reside and have valid entry visa should transfer the title to the property to a Mexican bank. That is the law in Mexico. The foreign becomes the beneficiary of the individual land trust established by him. The bank looks after all the paper work inclusive of filing the permits with the Ministries of the Interior and Foreign Affairs.
The bank is the owner of the real property rights while the beneficiary is the owner of personal rights to use rent, modify or transfer his rights to a third party.
bank holds the title to your land on your behalf according to Mexican
law and title insurance will be covered by an individual title insurance
policy on the property.
It is easier to inherit property in Mexico than in US directly without the delays of Probate as long as a will is in existence. So long as the will exists there is no inheritance tax in Mexico.
Types of properties in Mexico
Buying land, a house, or serviced apartment in Mexico is more profitable compared to US or Europe. Land costs are lower, building maintenance cheaper and cost of ownership is very low in Mexico.
in Mexico are still undeveloped and if you go in for such land you should
know the difficulties you have to face in buying it to the grade before
you build on it.
Infra structure in a country plays a crucial part in having a smooth transaction in Mexico. Geographical location may be ideal for a place but if the road and approach and adequate transportation in and out of the area is missing it need not be considered.
It is therefore meaningless to buy a property simply because you have a fancy for it or you think it is good or you have a gut feeling about it. You may talk to the local people if possible and know the standard of life in that area and the support the government can extend to you.
Doing your due diligence
The Mexican Notary Public will assist you to research the property and ensure there are no liens or other debts on the property. He will ensure that all documents are in proper order and all legal requirements are in place regarding the property.
A great place to invest
in property in Mexico requires avoiding many pit falls. Not withstanding
these pit falls there have been thousands of foreign investors have bought
properties with profitable results. You need not bother about the prolonged
legal process as Mexico is a flourishing country economically. Mexico
surely grows in tourism, industry, and trade and makes your property investment
much more precious and valuable.
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