For Sure!
Mexico has become a very attractive place for real estate investment in the last few years. Even with the pandemic, people didn’t stop looking for properties in this country. Most properly in the Riviera Maya.
This is not just luck, since people from all countries started traveling to these places, such as Cancún, Playa del Carmen, Cozumel, and Tulum, mostly. This is bringing positive consequences for the real estate investors, due to the high demand for hotel rooms and properties for vacation rentals, and causes a direct impact on the ROI raise.
Maybe you were thinking about investing but were not sure about Mexican rules on purchasing properties. Don’t worry, it’s not that big deal!
First of all, here you have some advices:
- One of the requirements to buy a house in Mexico as a foreigner is to have a permit issued by the Secretaría de Relaciones Exteriores (Ministry of Foreign Issues). You can go in person or carry out the procedure through a legal representative who must have a notarized power of attorney.
- The properties located in an area less than 50 kilometers away from the sea, have some restrictions. In this case, you will have to opt for a bank trust or acquire it through a Mexican corporation. This means, the property would remain in the name of a third party, but you will be able to make full use of the facilities.
- If you don’t have enough budget, don’t worry! There are mortgage loans for foreigners in Mexico. These credits can be granted by some banks, or another national entity such as Infonavit or Fovissste, if you are a beneficiary of one of these. The requirements to apply for financing tend to be the same as for any Mexican.
Here you have some answers/questions of BanBajìo (Mexican institution), about getting a trust to purchase a property:
What Is A Trust For Real Estate Located Within
Restricted Zone?
This Type Of Trust Is An Agreement Entered By And
Between A Mexican Person (Legal Entity Or Individual),
A Trust Bank And A Beneficiary.
In Said Agreement, The Mexican Person Transfers The
Ownership Of A Real Estate Property To The Bank, So
That It Holds Title On The Property And Allows The
Beneficiary To Enjoy The Real Estate In Almost Any Form
As The Actual Owner.
The Beneficiary Is Entitled To Use The Property For
Residential Purposes.
What Does “Restricted Zone” Means?
Restricted Zone Is All The Land Or Constructions
Comprised Within A Stripe Of 50 Kilometers (Approx. 31
Miles) Wide Next To The Seashore Or 100 Kilometers
(Approx. 62 Miles) Along The Borders.
Why Is A Trust Needed For A Foreign Person To
Acquire Real Estate Within The Restricted Zone?
It Is Needed Since The Mexican Constitution On His 27
Provides That Only Mexicans Are Entitled To Acquire
Direct Ownership Of Land Within The “Restricted Zone”.
How Long Can A Trust Last? Can It Be For An
Undefined Term?
According To The Law, This Type Of Trust Can Be
Established To Last Up To 50 Years. A Few Months
Before Said Term Expires, A Renewal For Another 50
Year Period Can Be Requested From The Government.
As A Consequence, There Is No Trust To Last For An
Undefined Term.
What Is The Process To Establish A Trust To
Acquire Real Estate In The Restricted Zone?
The Process Has Many Details That We Will Not Specify
In This Space, But As An Overview We Can Mention That
It Starts When The Involved Parties Provide Certainly
Information And Documentation To The Bank, Along
( Find the complete file on https://drive.google.com/file/d/1ff4Fia1ZSXcJmNJldhyZrs4lP1qat_c-/view )
Now that you have this information, don`t wait so long before making a smart decision. We assure you that real estate won’t ever be a bad way of investment.
| If you want to know more about real estate investment in Playa del Carmen or Tulum, please contact us. |
5th Avenue Realty Group. Playa del Carmen, Mexico.
