Are you interested in buying property in Mexico? These days, many foreigners are buying beachfront property in Mexico’s top destinations. The lovely country has a wonderful climate, beautiful beaches, and interesting culture. In addition, beachfront real estate is still affordable when compared to homes in other countries. Plus, foreigners can buy properties near the coast or borders through a Fideicomiso or Bank Trust, which is the official process that allows non-nationals to legally own Mexican real estate in paradise. Also, it is important to make sure you are choosy when it comes to the property you buy. Older homes may have repairs and maintenance that could be too time consuming. In addition, you must be cautious when buying new construction to make sure you only buy from a reputable developer to avoid unforeseen issues down the road. Keep reading more to learn about buying property in Mexico as a foreigner.
Carefully Choose Where to Invest
For starters, it is important to be cautious when deciding where you want to invest your hard earned money. There are lots of properties for sale in Mexico no matter where you look, especially in top destinations such as Puerto Vallarta, Cabo and Cancun. You can find everything from older homes with charm to brand new construction. The most important thing to consider is quality. If you buy an older home, make sure you have a proper home inspection to make sure there are not underlying issues. If you prefer a newer home or brand new construction, make sure you only work with reputable developers that have an excellent reputation in the industry. If you don’t, you could risk ending up buying a mediocre property that could end up causing serious problems down the road.
Bank Trust for Foreigners
Next, only Mexican citizens are allowed to buy land that is close to the coast or near the border. However, foreigners are able to purchase Mexican real estate through a Fideiocomiso (known as a Bank Trust in English) in order to sidestep this law. The bank trust is the legal way for non-Mexican citizens to purchase real estate along the coast and the border. Instead of the property deed being in your name, the title is held through the bank trust or Fideicomiso. The bank itself is the trustee, but the homeowner/investor is the beneficiary. Bank Trust owners get to enjoy the same property rights as Mexican citizens. Plus, as beneficiary for the property, you can also designate substitute beneficiaries in the event you pass away.
How Do Fideicomisos/Bank Trusts Work?
In case you don’t know how they work, fideicomisos are organized with the help of a Notario. Known as a notary public in English, the bank trusts have a term of 50 years. Then, they are automatically renewed for another 50 year term when the original term concludes. The process to renew your Fideicomiso term is simple and not expensive. Plus, fideicomisos allow the homeowner to designate a secondary beneficiary in the event of the homeowner’s death. That way, heirs are not required to go through probate because the property is legally held in a bank trust.
How to Buy Property in Mexico
Do you want to make an offer on a property in Mexico? If so, make sure you have a reputable broker to work with. They will work hand in hand with the local notary public and escrow offices to oversee your purchase transaction. In many locations in Mexico, real estate brokers use dual-column bilingual documents in English and Spanish. Once an offer has been accepted, an escrow account is opened with an earnest money deposit. Next, the title company will hold the escrow funds until closing. At that time, the title company will disburse the escrow funds according to the purchase agreement terms that were signed by the buyer and seller.
If you want to buy beachfront property in Mexico, you can do so through a Fideicomiso or bank trust. First, work with reputable agents and developers to avoid buying a lackluster property that will end up being a money pit. Next, make sure you carefully select a quality property. If you’re ready to invest in your future, look into Mexican real estate in top locations such as Puerto Vallarta, Cabo and Cancun. These sought after destinations have excellent climates, great shopping, gourmet restaurants, and endless outdoor activities to enjoy. These factors make them all ideal places to buy the vacation home of your dreams. Before you know it, you could be enjoying a tropical cocktail on the beach!
About Lemuria Real Estate
Ideally situated on Puerto Vallarta’s exclusive South Shore, Lemuria Residences is a new luxury condominium complex that belongs to a Master planned community designed by the prestigious Gensler Global Architecture firm. The ecologically planned themed property includes more than 1700 acres of preserved Sierra Madre jungle with stunning views of the mountains and Banderas Bay. The outstanding onsite amenities include multiple pools, BBQ areas, restaurants, a 2000 square meter spa, Sports Club, gym, tennis courts, pickleball courts, organic herb garden, and yoga spaces. There are also freshwater rivers and private hiking trails located nearby so it’s the ideal place to invest if you want to be close to nature. Contact Lemuria Residences today to learn more about our luxury beachfront condominiums for sale in Puerto Vallarta.