How to Invest in Real Estate in México

Formula 2 + 4.

The first two steps when you are thinking investing in México or any country:

1.- Determine your Budget. 2.- DETERMINE THE LOCATION.

USD 500.000? 800,000? 2 M? How much is enough? When is the right time?

It is never enough and never a wrong time to invest. However, knowing prices in the real estate market is necessary. Don’t let an agent or company determine your budget. This decision should be evaluated, considering factors such as: «How long will I live in the property? Will I use the property for short-term rentals? Will I not live in the property and use it as an income and appreciation generator?»

Location, location, location

Very valid in real estate. For example, in Baja California Sur, Founders is the initial neighborhood where you find the splendor of the original Loreto Bay project. Agua Viva is ten years younger than Founders, and while it maintains the spirit of the original project, there was also a focus on providing more space between each lot. In Quintana Roo, Tulum, it’s getting really crowded on studio offerings, while Puerto Morelos is blooming, Playa del Carmen is a consolidated destination, and Cancún has been, for many years, the central spot of the investment in the north of the state. It is essential to know that not all lots or projects have all the official documentation in order; for this field, it is indeed crucial to receive the advice of a qualified and certified expert, as your investment could be affected if you choose a place that will give you headaches and not returns or appreciation.

Four-Step Formula. Legal and safe way to invest in México.

1.- Proposal. A proposal with an earnest deposit ensures you don’t miss the opportunity to acquire the chosen property. It always establishes conditions and a timeframe to finalize the negotiation. The deposit is 100% refundable at this stage.

2.- Due diligence.- The next step is to verify all the property’s technical, structural, legal, and physical details and ensure you know all possible aspects or elements to consider during your purchase. You can always say NO, and your earnest deposit will be fully refunded

3.- Escrow.- Put all these in writing, including all your observations, conditions, delivery times, deadlines, and penalties, in case either party does not comply. Emphasize that the total payment of the negotiation will not proceed until everything stipulated is fulfilled on time

4.- Fideicomiso.- It’s a real estate trust. Is a representation on your behalf by a Mexican bank of your choice (Scotiabank, HSBC [the world’s largest bank], Banamex [Citigroup], Santander, Scotia, etc.). The bank acts as the Trustee, and you and the individuals you designate are the trust’s Beneficiaries. As the beneficiary of the trust, you maintain total control over it, retain the use of the property, and make all investment decisions. This is not a lease agreement; it is equivalent to a Living Trust in the United States. A trust grants the Trust Beneficiary (You) absolute and irrevocable control over the property. To enjoy, lease, improve, mortgage, sell, inherit, and bequeath. A proposal with an earnest deposit ensures you don’t miss the opportunity to acquire the chosen property, but ALWAYS establishes conditions and a timeframe to finalize the negotiation.

Recuerde que es importante recibir ayuda de un profesional en la materia

Nuestras publicaciones son únicamente con fines explicativos, las leyes pueden cambiar, actualizarse o modificarse, incluso cambiar entre un estado de la república y otro. por ello es crucial, recibir asesoría con un profesional experto en el ramo que usted requiera conocer más o tenga dudas, es preferible detener su compra o venta de una propiedad hasta tener toda la información necesaria y que se apegue a la legislación o leyes en su totalidad, con esto se evita siempre dolores de cabeza innecesarios.