These vary depending on the type of property and what state it’s situated in, and the Notary Public processing the legal transfer will advise you on which costs and taxes are applicable as part of your transaction.

Closing costs you need to budget for when you buy a house in Mexico

This guide shares a list of the principal closing costs you’ll need to take into account when you are purchasing property in Mexico.  There might be other fees, but these are the main ones most buyers face when they purchase land and/or a residential home in Mexico.

Property acquisition tax

This tax is paid on the sale value of the property and is typically equivalent to about 2-4% of the sales value, depending on the Mexican state in which you buy. (Some states are raising this rate that can be as much as 6.5%.) This tax is paid whether the property is sold, transferred, donated, placed into trust, split-off, or merged.

Sales tax (IVA) on residential property

Mexico’s sales tax us known as IVA that stands for Impuesto al Valor Añadido (Value Added Tax).  No IVA is payable on residential property.  Commercial property transactions are liable to IVA at the current rate in addition to the acquisitions tax.

Property appraisal tax

The tax authority might choose to perform a commercial appraisal (audit) of the property after you purchase it. If the appraisal value is greater than 10% of the price you paid for it, you will be asked to pay 20% tax on the difference between the two amounts.

Federal Register registration fee

When purchasing a home, the buyer pays a fee (based on the value of the transaction) to have the public records updated and the legal Title Deed (re)issued. The rates vary depending on what Mexican state you buy in, and you should budget for about 2-4% of the sales value to cover this fee.

If you purchase property on agrarian terms you don’t need to pay this, but you might have to pay a similar fee to the local comuneros as part of the paperwork involved in properly completing that transaction.  Check in the locality where you intend to buy property and ask about what the fees are.

Fees for Public Notary services

Buyers are required to pay fees to the Notary Public for services provided to transact the legal matters related to the sale. Notary fees are based on the transaction value and vary by state.

The buyer gets to choose which Notary Public to use, so it makes sense to check several Notaries locally for their current rates —and if you are working with a realty agent ask for their recommendation too. Typically, Notary Public fees work out to between 4% and 7% of the sales value.

Fees for the property trust, fideicomiso, if relevant

If you purchase property within the 50km/100km ‘restricted’ zones (near coasts and land borders), you will need to pay a local bank to set up and manage a property trust for you, and there are government fees to pay as well.

• Banks charge around US$1,000 equivalent in Mexican pesos to set-up and manage the trust through the bank.
• In addition to the bank fee, there is a one-time government fee to pay to set-up the property trust permit in Mexico, amounting to about an additional US$1,000.
• The bank makes an annual service charge amounting to between US$1,000-$2,000 equivalent in Mexican pesos. The annual service fee covers trust administration and certain legal obligations (e.g., the filing of necessary documents annually) by the bank on your behalf.
• If you want to expand or alter the trust, e.g., add or remove beneficiaries, there are additional bank administration fees and government fees to do this.
• When you sell the property, you will need to cancel the trust, and the bank charges around US$1,000 fee to do this.

Some people choose to place their property into a trust even if it’s not situated in the restricted zone as part of their estate planning preparations. You should seek professional financial planning advice about whether this is appropriate in your circumstances.

Foreign national acquisition permit

If you are not a Mexican national (natural or naturalized) and depending on which Mexican state the property or land is situated in, the transaction may require a special permit that grants a foreign national the right to hold title deed of a property logged in their name on the Federal Register.

Check with your Notary Public, who advise you if this is necessary in your case and will usually manage the filing on your behalf if it is.

This Federal Law requirement was reintroduced in 2022, but we are told by associates that some states in Mexico are not enforcing it at present. Talk to your property agent and/or Notary Public for further details about this in the place where you intend to buy.

If you need this permit, its cost will add a government administration fee of ~US$400 to your closing costs. If you hire a Notary Public or attorney to file this on your behalf, you will have those costs to pay in addition to the government fee.

Other attorney fees

If you hire a lawyer in addition to the Notary Public (the legal process must be filed through a Notary Public), you will also need to pay they lawyer additional fees for services they undertake on your behalf. These should be negotiated in advance.

Buyers may need to hire a lawyer in addition to the Notary Public if there are complications with the purchase and they need specialist advice on the matter.

Land and/or building surveys

Unlike some states in the US, sellers are not legally liable for any deficiencies that might be found on a property after its sale.  For this reason, it’s prudent to hire a professional land and building surveyor to assess the property before you sign a contract.

Pre-purchase surveys are optional and their cost falls entirely on the buyer. The fee for the survey/study will depend on type, extent, and complexity of surveys undertaken, and the size and type of property being surveyed.

Ask your realty agent, architect, or building project manager for advice and details about this. Some local architect firms might offer survey work as part of their services.

Gated community and condo service fees

If you are buying a house in a gated community, or a condominium, be sure to check on the annual service fees, and have these put in writing.

Service fees can range from a few hundred to a few thousand dollars a year, depending on location, number of houses or apartments in the enclosure, and the scope of the amenities present.

Keep in mind that service fees tend to rise year-on-year, especially as developments get older and more maintenance or structural repair is needed, e.g. to water cisterns and swimming pools.

Property title insurance

When you buy property in Mexico, you might consider purchasing title insurance. You must purchase this at the point of purchase, before you close on the property.  Rates are based on the sale value of the property. Learn more on this article.

Costs and taxes when selling a Mexican Property

When you eventually sell a residential property in Mexico you will need to budget for a range of additional fees and taxes as part of the sales transaction.  You can learn about these on this sister article: Costs and Taxes of Selling a Property in Mexico.

Learn more about property in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Latest articles and insights about real estate in Mexico
• Working with a realty agent in Mexico
• Insuring your Mexican home
• Enjoying your home and home life in Mexico

Policy wording for Mexican property insurance

Property insurance policies sold in Mexico differ from policies you are used to seeing in your home country. The policy wording is unique, and the types of coverage offered by insurance companies is different here, so some things that you would expect to be included as standard, might not be present if you purchase your insurance in Mexico directly from a Mexican insurer.

Familiar policies, fully underwritten in Mexico

To help foreign residents who own property in Mexico to purchase insurance products familiar to them, specialist companies based in the U.S. have developed property ownership insurance policies which reflect the wording, terms and covers included on US and Canadian policies.

The insurance policy is fully underwritten by a Mexican insurance company (by law, it has to be this way), but the U.S. companies work in partnership to create a product that is familiar to those purchasing insurance in the US and Canada, and which is legally sound under Mexican law.  The premiums are paid in US dollars and any pay-outs are also paid in US dollars.

Policies to suit your situation and needs

The home insurance policies available in the market offer a wide range of options, and you can choose what to include and what to exclude as part of your coverage plan.

Depending on where your home is situated in Mexico, the risks (and coverage) you need to insure against will vary. For example, homes near the coast should be insured against hurricane damage and earthquakes, whereas inland only cover for earthquakes (and perhaps flooding, if you home is situated near water) will be needed.

Home insurance policies cover a wide range of eventualities and the most common coverages include reimbursement of costs related to:

• Damage caused by hurricanes and earthquakes
• Damage caused by and wind storms and floods
• Injuries to housekeepers and other workers in your home
• Burglaries and vandalism
• Damages to third parties, e.g. falling trees
• Coverages for owner-specific liabilities, e.g. in condos

You can cover all risks or named perils

Policy options and choices include all risks versus named perils, whether to cover assets like outbuildings surrounding the main property, and the option to insure your personal goods.

• The better policies will include coverages for third party liability: this is  helpful in the event that someone who does not live at your home meets with an accident on your property, or where some damage is caused to a neighbor, e.g. by a falling tree.
• This article about third party liability in relation to your home shares more details.
• Other considerations to take into account when you’re assessing your insurance needs include purchasing cover for any watercraft you may own, as well as special arrangements for condos, where some liabilities are shared and some are owner-specific.

Regardless of the type of insurance you choose, the insurer underwriting the policy is far more important than the broker or agent selling you the product: in the event of a claim, the integrity of the underwriter will determine pay-outs, not the insurance broker.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Free eBook: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

It might take longer to sell than you anticipate

Mexico’s real estate markets are very regionalized and, in most cases, localized.

The location where the property is situated will influence how long it takes for a property to attract a buyer and transact through to closure between the parties.

Property transaction volumes are much higher in big cities, major resort areas, and popular colonial towns than in smaller towns, villages, and islands—and this transaction rate will determine, to a greater or lesser degree, how long it takes to match a buyer with a seller.

Typical time scales when buying a home in Mexico

When you are in the market to buy a home in Mexico, you may find the buying process frustrated by the seller—especially if it is a private sale instead of buying from a developer. This might sound strange, as you might think that the seller will be keen to close the transaction.

However, many factors come into play with Mexican property transactions; sellers may have to negotiate with family members, other ‘interested’ parties (e.g. distant relatives who may or may not be associated with the deeds), as well grapple with nuances of Mexican cultural behaviors in regards to ‘letting go’ of things—like long-held heirlooms.  This article about property cycles across the generations shares some helpful insights.

Some transactions may go through very quickly: for example, when the seller needs fast cash, or a developer is selling you a brand-new property.

Whatever the final time scales end up being, expect the buying process to be different to what you may be used to in the USA, Canada, and Europe—and realize that you may have to be patient if you found your ‘dream home’ and think you can move-in quickly; in some cases, you can; in other cases, you won’t be able to.

Typical time scales when selling your home in Mexico

When you come to sell your Mexican home, you will realize that the location of your property will not only affect its sale price, but also the time it takes to sell the property.  Some properties can remain on the market for years before they sell; this is particularly true of homes situated in remote or rural areas.

Conversely, some homes can sell soon after they are listed—these tend to be properties in Mexico’s popular places including larger cities (especially trendy neighborhoods of Mexico City) as well as popular beach resorts and trendy or sought-after colonial mountain towns.

Most of Mexico’s realty markets are not as “mature” as property markets in the USA or UK, for example, and transaction volumes are lower.

As a rule of thumb: land and property in rural and remote places, as well as those in areas with less well-developed amenities and local services will take considerably longer to sell —perhaps a year or more— than properties situated in larger towns and cities, and the most popular towns and resorts.  These also tend to be places which offer nearby local services and amenities—shops, schools, community centers, clinics, hospitals, etc.

Typical time scales when closing on a property transfer

Once a buyer and a seller have agreed to proceed in earnest, the paperwork can take anything from a few weeks to several months to reach a close.

If you are buying, you should not rush your Notary Public or lawyer as they conduct the necessary checks as part of their due diligence.  If any untoward matters arise, these may add delays, but addressing them helps to protect the buyer and the seller.

Most real estate transactions in Mexico go through without major delays, and with all the necessary paperwork and title deeds completed to legal norms.

The solidity of the legal procedures involved in Mexican real estate transactions has enabled US insurance companies to provide secure title insurance. It’s important, however, that both buyers and sellers exercise patience and understanding. Mexico’s legal system is bureaucratic; managing your own expectations (and your practical plans) to suit will save a lot of unnecessary stress as you purchase or sell your Mexican home.

Tip: a good local realty agent might help

Finding and working with a well-established realty agent in the locality you intend to move to in Mexico can bridge important gaps in most people’s capabilities, in terms of providing local knowledge and planning, as well as helping to save valuable time as the good agents will know the transactional procedures and might be able to provide facilitation that can accelerate the sales process.

Learn more about property in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Latest articles and insights about real estate in Mexico
• The costs and taxes of buying a home in Mexico
• The costs and taxes of selling a home in Mexico
• Working with a realty agent in Mexico
• Insuring your Mexican home
• Enjoying your home and home life in Mexico

Comprehensive guide to real estate in Mexico for buyers, owners, sellers and renters—continually revised and updated.

Extensive and detailed guide to real estate in Mexico

Our comprehensive guides to real estate in Mexico introduce you to essential information about property in Mexico whether you are:

• Renting property in Mexico;
• Buying a home in Mexico;
• An owner who needs to insure and maintain the property;
• An owner who plans to rent a property in Mexico;
• Selling your home in Mexico; and
• Working with Real Estate Agents in Mexico.

Property rental in Mexico

We publish detailed guides about all aspects of property in Mexico, including renting residential property here.

Property purchase in Mexico

Connect to detailed and exhaustive guides about buying and owning property in Mexico.

Owning and maintaining a property in Mexico

Browse detailed information that helps existing property owners manage, maintain, and insure their property in Mexico.

Insurance for your home in Mexico

Helpful guides and insights to help you consider how to get the right level of coverage for your home and property in Mexico, including coverage against third party liability damages.

Selling your home in Mexico

When you come to sell your residential property in Mexico, our guides and articles give you practical insights to help you prepare, market and sell your property.

Working with realty agents in Mexico

Insights and tips for finding and working with a local realty agent in Mexico, whether you are renting, buying or selling a property.

Learn more about real estate in Mexico

We continually update our guides and articles about matters related to property and real estate in Mexico.  Connect to further resources for insights and connections:

• Latest insights about real estate in Mexico
• Latest insights about renting property in Mexico
• Tips and insights about insurance for your Mexican home
• Latest insights about realty agents and agencies
• Connect to professionals who can help with property closings

However, financing options for Mexican property is increasing through mortgages offered by Mexico’s principal banks, and some specialized lenders also offer so-called “cross-border” loans—lending money in US dollars, at dollar rates, for the purpose of buying property in Mexico.

This article outlines some key points to note as you consider financing a residential property in Mexico—including an outline of the principal options buyers may examine as a means to finance their home here.

Principal ways to finance a residential property purchase in Mexico

The main routes by which foreign nationals tend to finance the purchase of a residential home in Mexico are:

• Cash purchase.
• Developer financing.
• Seller financing.
• Mexican bank mortgage.
• Specialized lender mortgage (‘cross-border’ loan).
• Specialist financing.

Cash purchase

The overwhelming number of property transactions in Mexico (estimated at higher than 90%) are transacted on a cash basis.

Sellers either have the cash in the bank or sell investments elsewhere (a house or other investment asset) to create liquid capital to transact the property purchase in Mexico.

“Cash buyers” have the advantage of being able to move swiftly and might also be able to negotiate lower prices if competing buyers don’t have ready cash, need to sell their home, or need to get approval for loans before they can commit to buy.

If the property is being sold on agrarian terms, i.e. possession, not legal title, then the transaction must be made with cash, seller financing, or other private financing as commercial banks will not mortgage these property types.

Developer financing

If you are buying a brand-new home from a real estate developer, the developer might offer staged payments, and some property developers also offer financing—although interest rates on their loans might be higher than rates offered by US banks. Check the details of the interest rates as well as other terms of those loans.

Whether staged payments are offered —paying for the property using several smaller payments over a defined period that is also often tied to specific events in a property’s construction cycle— depends on whether the property is bought ‘off-plan’ (i.e., the construction has not started), whether construction is ongoing, or whether the property is ready to move into.

Seller financing

In some cases, the seller of the property (even a private property) might be willing to accept staged payments from the buyer over months, or years.

Each arrangement is custom-made, and any agreements should be made formally with the professional assistance of a Notary Public, who will draw a up a legal contract that sets out the formal arrangement between the parties.

Typically, the property is placed into a trust in the seller’s name and when the buyer has discharged all payments owing, the trust is transferred into the name of the buyer.

Sellers ought to be aware that evicting a person from a property in Mexico is time consuming and will carry legal costs in the event that the buyer breaks the terms of the arrangement.

Mortgage from a Mexican bank

Mexican banks offer mortgages although interest rates may be higher than you are accustomed to. Substantial deposits are also required, and the ‘loan-to-value ratio’ —the sum the bank is willing to lend in relation to the house price— will vary depending on your circumstances as well as current house market sentiment.

Most commercial banks in Mexico will only lend money to foreign nationals with Residente Permanente status; foreign nationals with Residente Temporal status cannot usually acquire credit in Mexico.

Permanent residents who apply for mortgage credit may be asked to furnish some or all of the following documents to obtain credit in Mexico:

• A bank account history showing regular inward payments to the account; this could be a Mexican bank account, or a foreign bank account.
• A Mexican tax number (RFC);
• Recent bank statements from a bank abroad; and/or recent credit card statements;
• Medical certificate that verifies the good health of the mortgagee (for life assurance on mortgages).
• Credit reference letter from banks of financial institutions based abroad.

Specialized lender mortgage, or ‘Cross Border Mortgages’

Most of Mexico’s largest commercial banks are subsidiaries of large multi-nationals and/or have certain affiliations with foreign banks.

Some banks have started offering, through U.S. and Canadian affiliates, so-called ‘Cross Border Mortgages’ for Mexican real estate: lending money in dollars to U.S. and Canadian residents to buy property in Mexico—typically secured on the buyer’s foreign income, most usually a pension. This type of financing is also being offered by several independent specialist mortgage companies.

Typical characteristics of specialized ‘cross border’ loans:

• The maturities and rates offered vary from bank to bank.
• Loans are available from three years to 30 years.
• Rates on dollar-denominated loans are lower than those on peso-denominated loans, but higher than rates offered on mortgages for property situated in the U.S. or Canada.
• Some of these mortgages are fixed rate, and others are linked to interbank benchmark rates—plus a premium.
• These ‘cross border’ loans typically require a minimum loan amount of US$100,000 and will typically be for a maximum 70% of the value of the property being bought, so buyers need to raise substantial deposits for these types of mortgages.

Charges and paperwork requirements for these loans are comparable to those for obtaining loans in Mexico, for example:

• They require minimum credit scores.
• The borrower must take on and keep current mortgage life insurance, and property damage insurance.
• The lender will ask to see official identification, proof of income, copies of tax returns, and recent bank statements.
• You will need to show detailed documentation that proves the current legal status of the property in Mexico—you cannot finance property in Mexico sold on agrarian terms.
• These specialized loans also carry fees for extending the credit, charges for credit scoring, and fees for formal property valuation.

Specialized financing options for Mexican property

A range of specialized financing options may be available depending on your circumstances.  These include:

• Using your retirement savings (401k) to finance property in Mexico.
• Taking out a ‘home equity’ loan on an existing property you own outside of Mexico and using the capital to buy property in Mexico.
• Taking out a personal loan abroad and using the money to buy a home in Mexico.
• Setting up a special type of trust that is placed into the lender’s name until the payments are completed, at which time the lender discharges their benefit from the trust and passes it to the buyer.
• Other finance options might also be available, depending on your circumstances.

We recommend that you seek the advice of a certified financial advisor if you want to consider any of these financing routes to buy a home in Mexico.

Fees, charges, and background checks

As with most financial loan products, there is an assortment of charges levied on the borrower as well as a pile of documents to file for a credit application to be considered and funds to be approved, and released for use.

Fees and charges for property loans in Mexico

Common charges to open a mortgage account include:

• Mortgage assessment and arrangement fees.
• Credit referencing fees.
• Formal property valuation fees.
• Insurance fees, including life insurance and property insurance.
• Other legal and professional fees.
• Also note that some mortgages may carry an early repayment penalty fee. Not all do; check the terms of the loan agreement for details about this.

Background checks (documentation)

Before financiers lend you any money, they conduct extensive investigations of their potential clients, including proof of income, checking the credit bureau for your credit history reports (in Mexico and abroad), as well as socio-economic studies to assess the risk of the loan.

Common requirements include:

• A minimum age, usually 18 but it depends on the bank; and not older than 70.
• Legal residency status: Mexican banks will usually require Permanent Residency status to extend any loan, secured or unsecured; specialized lenders might not require you to be resident, and/or might accept Temporary Residents.
• Proof of income (dual incomes can be considered for couples).
• Bank references and recent bank statements.
• Official identification and proof of address.
• Birth certificate, and marriage certificate if applicable.  These might need to be apostilled and translated into Spanish.

Additionally, you’ll need to show documents related to the property transaction such as:

• The formal signed contract between the buyer and the seller.
• Proof of any deposits or forward payments made to the seller.
• Copy of the legal title deeds for the property.
• If the loan is for construction, you’ll need to show the deeds and official map of the land parcel as well a copy of the architectural plans, and official permissions to build, as relevant.
• Copies of receipts for property taxes and other utilities to show that the property has no liens of this type.
• Foreign residents may be asked for a foreign national acquisition permit, and lenders will want to see this granted before they release any funds.

Time scales for arranging finance on a property in Mexico

Banks and other specialized lenders have been improving the ‘turn-around’ time for loan approvals in recent years. Some will give a decision ‘in principle’ (subject to further investigation) within a few days and may release the funds within a couple of weeks. The process can take much longer, though, so you should be prepared for this.

It’s unwise to commit yourself to a non-negotiable or time-limited contract to buy a property based on a loan given ‘in principle’ as the lender may take longer than you expect to complete the necessary checks and can even refuse the loan at the last minute.

Even when the loan is agreed, it may take several weeks for the lender to release the funds. Keep your plans and intentions flexible and don’t commit to any contractual agreements before the funds have been released by the lender.

Learn more about property in Mexico

Mexperience offers detailed insights about property in Mexico for buyers, owners, renters, and sellers.

• Latest articles and insights about real estate in Mexico
• The costs and taxes of buying a home in Mexico
• The costs and taxes of selling a home in Mexico
• Shared ownership of property in Mexico
• The Mexican peso and exchange rates
• Insuring your Mexican home
• Enjoying your home and home life in Mexico

Your home’s interior design has the potential to inspire and lift you every day, and when you’re creating your dwelling spaces in Mexico, it makes sense to take inspiration from the natural habitats that surround you, as well as the local environment, and regional culture.

Interior design for your house in Mexico

Daniela Bahena is a professional interior designer with degrees in architecture and interior design. She brings her knowledge and expertise in these disciplines to interior home decoration projects, combining beautiful aesthetics with in-depth awareness about construction, use of materials, and appropriate approaches and techniques for the surrounding environment.

She’s passionate about creating interior spaces that transform a house into a home, blending her clients’ priorities and lifestyles with the warmth and charm of authentic Mexican design.

Daniela helps you to define the intention and purpose of each space you want to transform. Her design approach focuses on harmony and balance to create functional spaces you’ll enjoy and feel well inside, every day.

By applying her background in architecture and interior design, Daniela offers solid advice that considers your house build, the local surroundings, and climates through the seasons; selecting appropriate materials and including design elements that are aesthetic and durable.

Daniela’s experience and support help you avoid making material mistakes and falling into common pitfalls by providing a structured approach to your home’s interior design.

Benefits of working with an interior designer

When you’re making plans for the transformation of the interior spaces in your Mexican home, working with a professional designer offers key benefits, including:

• Taking command of your interior design project, guided and facilitated by an experienced professional who composes a detailed schema with step-by-step support to help you through each stage of the design and implementation.
• Carefully structured consultations that help you to define your intentions, give your project a clear direction, and enable you to visualize the look & feel of your home spaces.
• Have a design schema created for your individual situation and that meets your lifestyle and functional requirements, and that matches your budget.
• You’ll also save time and obtain value for your budget with a reference list of suppliers in Mexico that sell the materials and elements needed to realize your design project—included in the final schema.
• Whether you intend to undertake the interior design work yourself (DIY), hire local professionals to help, or a combination of these, having a carefully thought out plan and defined schema will help you to make the most of your budget and avoid material mistakes that can cost considerable time and money to put right.

Known in Spanish as Ley Nacional de Extinción de Dominio, the law enables a judge to immediately order the seizure of a property that is suspected to be part of a corrupt or illegal transfer chain (for example, if previous owners used illicit means to acquire it or build it) and/or if it’s suspected the property is being actively used for criminal purposes.

Legal quagmire if your property becomes entangled

Under this law, a property may be immediately seized without trial if the authorities present a petition to a judge and that judge deems that there are grounds to suspect the authorities have a genuine case.  The state may subsequently dispose of the property even before a trial has taken place. The law is causing some controversy especially in relation to a present owner’s risk of loss due to an illicit transaction history that the owner could not have known about.

If you buy a property in Mexico and, even years later, it’s discovered that the property was transacted illegally you could forfeit the asset and have no recourse to insurance coverages which would become null-and-void in this circumstance.

As the law is relatively new and untested there are no substantive case studies to reference regarding the appeal process.  In any event, legal costs to defend the asset would be substantial even if a subsequent trial ruled in the owner’s favor.

The law covers titled land, titled physical property (residential and commercial) and ejidos (communal land); as well as any assets situated on or linked to the property including valuables, goods, bank accounts, etc.

Definitions of ‘illicit uses’ of the property include —but are not limited to— organized crime, kidnapping or human trafficking, concealment, storage of stolen or illegal goods (e.g. cars, fuel, drugs), extortion, and money-laundering.

The wrong tenants could cause you to lose your Mexican home

This law also places the burden of responsibility of current use of the property directly on the owner.  If you rent your house out and the tenants use it for illegal purposes, then the state can seize the property from you with a writ from a judge.  In circumstances where your rented property is used by the tenants for illegal purposes it may prove impossible to get your home back or get compensated after the fact.

When you rent out your Mexican home you should be absolutely sure that detailed referencing and due diligence has been undertaken on potential tenants and that the people who apply and sign the rental contract are the same people who move in.  The contract should also contain carefully-worded legal clauses which specifically prohibit illicit use of the home.

Speak to your real estate agent or a lawyer or Notary Public to ensure your contract is current in respect of this new legal code.

The information contained in this article is published in good faith and not intended to constitute personal, professional, legal, financial or investment advice, nor replace the services of professional advisors.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Latest articles about property rental in Mexico
• Free Guide: House maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Get your property transaction independently examined

An independent examination of your sales contract and transactional procedures provides cross-checks as you navigate your way through a property purchase or sale in Mexico.

Linda Neil and her team at The Settlement Company® are experienced real estate professionals who can:

• Explain the procedures, legal matters, and tax rules to you in detail, independently of parties who have a vested interest in the transaction.
• Examine the details of your property purchase/sale contract to ensure that it does not contain clauses that may cause adverse effects and/or create undue risks.
• Ensure that the fees you are being asked to pay for professional services are reasonable, and that the tax calculations are aligned with current tax rules.
• Offer you a direct line for independent verification of matters which arise that you are unsure about as you make your way through the property transaction.
• Act as liaison between you, your real estate agent (if you are using one) and other professionals—for example, the Notary Public or local attorney situated in the State where the transaction is taking place.

Benefits of hiring an independent professional

Personalized service: This independent consulting service is formed around your individual needs. Furthermore, you can order practical support through the procedures to ensure professionalism and integrity in your transaction.

Overcome language issues: Property purchase/sale contracts are often written in Spanish and the seller’s deed is written in Spanish—by law. The legal terminology and clauses can be obscure or confusing. This service will help you to understand what you are committing to within the context of the sales/purchase contract. Linda and her team will explain what you are committing to in terms of Mexican law.

Oversee your investment: Hiring an independent assessor can protect your investment through an examination of the proposed transaction. This can help to ensure that agreements are realistic and are able to be fulfilled, legally.

Avoid pitfalls and hidden costs.  The costs of dealing with improper procedures or adverse contract terms after a property deal is closed can be substantial. An independent review and examination of your property deal prior to signing or payments being made can help you avoid to the costs and inconvenience of dealing with problems afterwards.

How the support service works

Linda and her team at The Settlement Company® provide an initial consultation, and can offer you a package of support services as you make your way through a property transaction in Mexico.  These services include:

• An initial consultation to talk about your situation and the proposed transaction.
• A review and examination of your sale/purchase contract and the Seller’s deed.
• Explain what you are committing to contractually, with highlights of any clauses that may be unusual or risky, as well as remarks about matters which you might want to consider renegotiating before you sign.
• An independent assessment of the professional fees, transaction fees, and property taxes you should be paying—whether you are the buyer or the seller.
• Advice and information about what structures need to be in place to ensure the property closes efficiently for tax purposes: when you are buying, ensuring that the contract and title are properly documented; when you are selling, how to claim current tax allowances on capital gains.

Service Fee: For the initial consultation and review with a written report, the fee is US$560.

The fee includes the support service as described above and will also include an estimate to supervise the entire transaction including Foreign Relations permits, appraisals, escrow fees, bank trustee fees, (if applicable) no liens and property tax certificates and full registration in the state where the property is registered—which are optional additional services you can purchase if you want or need these.  Fees are billed directly by The Settlement Company® who accept payments in the US, or in Mexico.

It’s therefore sensible to take some time to review the composition of your habitat and living spaces to help mitigate the risk of damage and injury that may occur during an earthquake, making your situations easier to cope with in the aftermath of a strong seismic event.

Effects of earthquakes on your property

Weak earthquakes may not be felt, or cause a gentle sway with little or no discernible impact on objects or the structure of your home. Stronger earthquakes can cause a wide variety of hazards, including:

• hung objects falling from walls and ceilings;
• furniture and other household items can fall or fly across a room;
• food pantries, crockery storage and other cupboards may be affected as shelving or items stored on the shelves fall;
• mirrors and glass can break causing dangerous shards and splinters;
• tiles, fixtures, and fittings can become loose and/or fall;
• live electricity wires may become exposed;
• gas pipes can break, causing a fire or explosion;
• water pipes can burst, causing the house to flood;
• utilities like electricity, telephone (internet), water, and gas may be cut-off;
• swimming pools may crack open and leak;
• strong quakes can cause buildings to move-off their foundations and collapse.

Earthquake insurance

You can insure your Mexican property and its contents against natural disasters, including earthquake damage—and better policies also cover the costs of temporary alternative accommodation if your home becomes uninhabitable.

If you already have a home cover insurance policy, double-check the renewal date and that the policy specifically covers your home for earthquake damage, as not all policies are comprehensive.  You can learn about protecting your house and its contents on our detailed guide to insuring your home in Mexico.

Preparing your habitat for earthquakes

Some forethought and planning around your home situations can make a material difference when a strong earthquake strikes.  Most earthquake-related injuries and casualties occur when people fall trying to run during the shaking; are hit by falling objects or debris; and/or when they are struck by collapsing walls or buildings.  Considering how your habitat is furnished and arranged, and what impact an earthquake would have on the objects inside of it, can help you to mitigate damage and injury.

Bedrooms

Earthquakes can happen at any time, and it’s possible that you’ll experience an earthquake overnight while you’re in bed.  Situate your bed away from glass and don’t hang heavy pictures/frames or mirrors above the bed; consider also what you may have attached to or hanging from the ceiling above the bed.

Children’s rooms

If you have children, carefully review their bedroom spaces for potentially hazardous fixtures, fittings, and toys that might fall and cause injury during an earthquake. If you have children’s play areas in your home, check that any heavy items that could tip or fall are securely fastened, and cross check outdoor play areas (like tree houses) to mitigate the risk of heavy objects falling onto the children in the event that they are playing there when an earthquake happens.  Be mindful that mirrors and other glassware can fall and/or crack and break; consider relocating any hazardous objects away from children’s bedrooms and other play areas.

Tall and/or heavy furniture

Book-cases, wardrobes, and other heavy furniture which appeared solid and stable when you placed it can fall effortlessly during a strong earthquake—and can pose a lethal risk if they fall on you or block vital exits.

Review the current placement of heavy furniture in your home, and screw large pieces to the wall using metal brackets designed for this; consider also how falling pieces could block your evacuation route and make changes as necessary. Packed boxes, stored baggage, and other stowed heavy items should ideally be kept in defined storage spaces, or low-down, so that they don’t cause a falling hazard.

Fixtures and fittings

Review your home’s fixtures and fittings and consider how they may behave in the event of an earthquake.

Picture frames and wall art: Picture frames (especially those framed using glass) and mirrors should be securely fastened to walls using double-hooks, and mirrors especially can benefit from additional fastening with putty (mastique).

Shelving, cupboards and storage units: If you have floor-based shelving or cupboards that store heavy items, for example, in food pantries, crockery storage, laundry areas, tool sheds, etc. it’s wise to ensure that the shelving, cupboard or other storage units are securely screwed to the walls.  When an earthquake comes, these types of units can become unstable and fall over.  Replacing the items could be costly, and if someone is nearby them when the quake comes, units laden with heavy objects could fall on top of people.  It’s prudent to avoid storing heavy objects on open shelves near frequently used work or transit areas.

Overhead hanging objects: Overhead lamps and chandeliers should be routinely checked to ensure that they remain securely anchored, especially in older properties where the wood or cement ceilings they are attached to may be in a state of decay.  If you have a heavy (e.g. iron) chandelier over/near a bed or other space where people rest or meet (e.g. a dining table or desk), ensure it’s very well secured, or consider relocating or removing it.

Bookshelves and other storage: If you have heavily laden bookshelves, don’t place these too near any beds or other resting places, nor along key exit routes, even if they are fastened to the wall.  Heavy cabinets ought to be fastened to the wall if they are in a space near where people work or sit, or near doors or exit routes.  Consider installing latches on high cupboard doors to prevent objects from falling out of them in the event of a quake.

Water heaters

Most water heaters in Mexico are gas-fired.  Your water heater should be securely strapped to a strong load-bearing wall using appropriate brackets.  Ensure you know how to switch-off the gas feed and water supplies.  If you are (re)installing your home’s water heater, consider using modern flexible gas piping instead of metal pipework.

Learn more about caring for and insuring your home in Mexico

Mexperience publishes extensive information to help you plan and care for your home life in Mexico through guides, articles and free eBooks:

• Further advice about how to plan and what to do during and after an earthquake is available online.
• Read our free guides about house maintenance and home security
• Latest articles about property insurance
• Articles about real estate in Mexico

Factors that may influence accommodation choices

Everyone’s situation has unique attributes when they’re moving, although there are several common factors that tend to influence the choices regarding accommodations, including:

• how long you intend to stay in Mexico—shorter stays will usually preclude a home purchase, but not all people who intend to stay long term will buy a house;
• your familiarity of Mexico—if you know Mexico and have friends or family here, this will likely influence your approach to finding accommodations; and
• any existing arrangements—some people already have property in Mexico they can move into, although sometimes the property is in a different location to where they want to live now; also
• specific circumstances and financial means—you might have specific reasons for wanting to rent or buy, and your decisions might be facilitated or restricted based on your financial means.

Renting before buying

If you do decide to buy property in Mexico, you might consider renting first to get a feel for the area(s) you’re thinking about moving into, before committing to a place or neighborhood—even if your preference is to buy and you have the financial means to do so.

If you already know the area you want to live in from previous experiences, you might only rent for a brief time in temporary accommodations while you scout for and buy a property in Mexico.  Some people buy soon after they arrive, perhaps on impulse, although most people rent (or stay with friends or family) at least for a short while beforehand.

Mexico’s house rental market

Most people who come to Mexico to live for the first time start out by renting a house here, and we recommend that people unfamiliar with the country begins by renting in the first instance—if only on a temporary basis.

Renting property gives you flexibility that can be helpful, although you’ll have to purchase a house in Mexico to benefit from the widest choice of property types available and obtain a dwelling space that suits your needs in detailed ways which rented properties are unlikely to be able to.  Renting property might also place other restrictions upon you; for example, many rentals don’t allow pets.

Rental properties are plentiful in Mexico, but the practicalities of finding a decent rental that is adequate for your needs takes time and effort, patience, and a degree of luck in respect of the listed properties during the timeframe that you are scouting the market.

Some real estate agents will help you scout for properties, although many agents prefer to only deal with property purchases and sales because the income available to them from rentals is materially lower than income generated from property sales.  If you intend to rent before you buy, let the agent know this, because some agents who don’t normally deal with rentals are sometimes prepared help potential future buyers to rent something locally in the near-term.

Buying a house in Mexico

People with intentions to stay longer in Mexico trend toward buying a property as soon as practical, as it can represent a better investment over the long term—provided that you choose wisely, that includes settling in a location that properly suits your lifestyle intentions, and that you don’t overpay for the property.  It’s better to buy less house in an optimum location than more house in a sub-optimal location.

Buying also gives you a much wider range of options than renting and enables you to shape the living spaces as you’d like them. It might also be sensible to buy sooner in a place where the market is buoyant, and prices are rising.

Choosing to buy a property in Mexico enables you to find a place that is more precisely suited to your lifestyle needs and can also encourage you to ‘put down roots’ in the location you have chosen—this is related to the level of commitment you have in relation to your move to Mexico.

Mexperience offers extensive articles and guides about real estate in Mexico that help you to discover the property market here, whether you are a buyer, an owner, or a seller.

Financing a property purchase

Many people moving to Mexico have capital available to them to purchase a home here —especially retirees— through investments and savings, or with equity that has accumulated in their existing home.

However, some people moving here might need or want to finance a home in Mexico.  Most foreign residents who buy property in Mexico do not need or seek credit, although real estate financing in Mexico is available through various specialized finance houses.  Our guide to real estate in Mexico includes a complete chapter about real estate finance.

Owning a house in Mexico

Home ownership is a responsibility whichever country your property is located in. Once you have moved to Mexico and taken possession of your home, whether you own your property in Mexico or are just renting it, there will be certain matters to organize and deal with on a regular basis to keep your house properly maintained and secured when you are home and away. With some local insights and forward planning, the maintenance and security of your home in Mexico should pose no major headaches or inconveniences.

Mexperience publishes a comprehensive guide to home maintenance and security in Mexico with tips and practical knowledge to help you manage your home in Mexico, keep it secure and prevent your Mexican home from falling into disrepair.

Insurance for your home in Mexico

Whether you’re buying or renting a home, it’s prudent to consider insurance for your home and personal possessions.

Mexico is subject to hurricanes (if your property is near the ocean) and earthquakes (whether you’re by the sea or inland) and it makes sense to protect your investment with an adequate home insurance coverage plan to protect your asset as well to cover you against third party liabilities, e.g., a tree falling onto your neighbor’s property and causing damage or injury.

If you’re only renting, you can buy an insurance plan to protect your personal items from loss due to flooding, burglary, etc.

Selling a house in Mexico

When you purchase property and eventually come to sell your home, there are different routes to market, agents to consider, processes to follow, and paperwork to organize.  Our guide to real estate in Mexico includes a full chapter dedicated to helping home sellers.

Working with a local realty agent

Finding and working with a local realty professional can be a worthwhile investment.

A well-established agent will be able to provide you with insights into the local area and community, brief you about locales and neighborhoods that could be appropriate (or otherwise) for your needs; and when you buy a house with the help of an agent, they might also assist you by connecting you to local groups, associations and perhaps even new acquittances that could become friends.

Renting out your Mexican home

If you purchase a home in Mexico, you might plan to rent out your Mexican home, in part or in its entirety.  Mexperience offers helpful articles that share insights about this, and our guide to real estate includes a chapter about renting.

Further research and resources

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Resources include:

• Articles about lifestyle planning in Mexico
• Discover places to live in Mexico
• Principal routes to legal residency in Mexico
• Latest articles about lifestyles in Mexico
• A regular Mexico Newsletter you can subscribe to for free

Estate planning for legal residents in Mexico

The estates of tourists and temporary visitors who come to Mexico for a short period are not affected by this issue as they are most likely to be legally domiciled in their home country, where their will would be read and interpreted, regardless of where in the world they die.

However, for residents living in Mexico (and those planning to make Mexico their primary residence, or legal domicile), it’s important to ask the question: How will my estate and loved ones be affected when I die in Mexico?

It’s a simple question with complex answers, and taking the time to consider your present circumstances and plan for your passing in Mexico will ensure that your loved ones will not be left dealing with complex legal matters, and that your assets and other interests are dealt with according to your wishes when you die.

If you already have a living will set-up in your home country, you also need to consider how that might be affected by your legal residence in Mexico; you might have to take steps to ensure that your wishes are legally enforceable under Mexican law.  Mexico’s legal system is markedly different from places such as the US, Canada, and other European countries, hence the importance for foreigners living in Mexico to acquaint themselves with local laws and customs—and prepare their estate accordingly.

Who needs to make estate planning arrangements?

Planning for your estate to be properly administered after your death is especially important if you:

• have legal residency in Mexico;
• own a home in Mexico;
• hold a bank account(s) in Mexico;
• have savings and investment plans in Mexico;
• own a company in Mexico;
• hold any trusts in Mexico;
• have assets split between Mexico and other countries.

Professionals who can help

You will need to hire some professional help to get this done properly.

Professional advisors

Professional law firms and property consultants can provide advice and either help you directly by writing a will, or referring you to a trusted source who can undertake the legal paperwork work for you.  See Professional Assistance services.

Notary Public

We have explained in these pages before now the importance of the role of the Notary Public in Mexico, and this person should be your first port of call as you begin to plan your estate.  Even if you use other services to structure your estate (e.g. financial planner), you will need to hire a Notary Public in order to get the necessary legal instruments in place.

Accountant

If you have business interests in Mexico, you should also consult with your accountant about matters related to any business accounts or assets, especially where these are held in company names, trusts, or jointly owned with others.

Financial planner

If you have a financial planner or investment manager, you should also involve that person in discussions about planning your estate.

Your country’s consulate offers limited support

As we mentioned in our article about consulate support, your home country’s consulate can only provide limited support in relation to personal matters, and in the event of a natural death, they will usually help to identify and contact the person’s next-of-kin in their home country.  They cannot and won’t become involved in any matters related to estate disputes, probate or any issues in relation to your personal assets in Mexico.

Don’t delay your estate planning work

If you’re living in Mexico and have any significant assets here or abroad, and have been procrastinating on matters related to your estate, or if you plan to move and create a new lifestyle in Mexico and want to ensure that your assets and personal interests are protected if you die when you’re here, you need to stop thinking about it and start taking some action.  By making adequate plans for the inevitable, your loved ones will be grateful and your assets will be properly administered.

Resources for Living & Lifestyle in Mexico

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Our resources include:

• Insightful articles about living and lifestyle in Mexico
• Complete guides to aspects of living in Mexico
• A library of free Mexico guides you can download
• A regular Mexico Newsletter you can subscribe to for free

Realty markets are localized in Mexico

Mexico is a vast country with wide regional variations in lifestyle, topography and climate, infrastructure, transport links, and local amenities.  The country’s real estate markets are highly localized, and accurate data in regard to prices and historical trends is not easy find in aggregate as it is in the US, Canada, and Europe.

Property portals give you insights into asking prices and rents

In recent years, a series of Mexican property portals have emerged which aggregate property listings nationally: MetrosCubicos, VivaAnuncios and InMuebles24 are the principal ones you ought to review to gauge current asking prices.

The portals also feature extensive listings for home rentals in towns and cities across Mexico, so if you’re planning to rent a home here, the portals are a good way to assess rental prices and find a home to rent.

These sites are helping to bring additional data together for buyers and sellers, but remember that asking prices and sale prices are rarely the same. Real estate agents tell us that closing prices on property here are typically between 10 and 15 per cent lower than market asking prices, depending on the location, state of the property, as well as individuals’ situations surrounding the transaction.

House price data is not centralized

There is no publicly-accessible ‘official’ central register of house prices in Mexico, and even some of the ‘informal’ registers which exist may peddle doubtful data, as sellers are not always forthcoming about the full details concerning the prices at which properties changed hands.

Official registers do exist —on records at local government and Notary Public offices— but getting access to these data is tricky, and generally has to be undertaken in-person on state-by-state (or even municipality) basis, making it near-impossible for any individual to build a precise picture of what is trending regionally or nationally.

Note also, that transactions of untitled properties sold on agrarian terms won’t appear in any official statistics, and the buyers’ pool in this market is smaller because these properties cannot be financed or used for collateral.

Some private firms and government agencies exist that commission data-gathering exercises and compile reports based on those data. The depth and scope of their data may be limited, but they add perspective and insights for potential buyers.

Other sources of house price data in Mexico

In the absence of a central register of prices showing current trends, potential buyers, and sellers seeking to set a price on their property for sale, can repair to a variety of other data sources for guidance.

Local real estate agents

Locally based and well-established realty agents are among the better people to talk to for an indication of prices in a given market.  The good ones will have been operating in the market for some while and will have a balanced perspective about the price levels similar houses in specific local neighborhoods have been listed at and sold for.

The disadvantage of this information source is that agents are inevitably vested in talking-up the price of the product they sell; some agents may represent the buyer and the seller simultaneously (this is not illegal in Mexico as it is in some US states) and so it’s prudent for buyers especially to check other information sources to cross-check price levels.  You can learn more about this on our comprehensive guide to working with realty agents in Mexico.

Live locally for a while, and get a feel for the market

An excellent way to gauge local prices is to base yourself locally for a while (see also: renting) in the area where you are interested in investing.  There is no substitute for getting to know the locale, talking to the locals, and probing friends and local contacts about recent market activity, scoping-out the different neighborhoods, and in doing so obtaining a first-hand sense of the local market. Doing this can also help you to negotiate a better price.

Consider how sellers in Mexico are valuing their properties

Another way to arm yourself with local knowledge is to consider how existing home owners in Mexico are valuing the properties they want to sell.  This article on Mexperience describes typical methods that sellers use to assess residential property values in Mexico, and outlines the key factors that tend to influence sellers’ listing prices.

Reviewing this information can help you to gain additional perspectives as you research prices and consider the value of property for sale in Mexico.

Hire a property assessor

Homeowners in Mexico can hire the services of a property assessor —a valuation agent— who, for a fee will compose a detailed valuation report that will be founded on an array of factors including research of recent sale prices in the area, the desirability of the locality, local access and other amenities the property offers, the size and topography of the land plot, and the condition of the current construction.  This article (Spanish) shares some insights into how valuations work and are priced in Mexico.

Typically, the fee for a valuation is based on a peso-per-thousand rate of the assessed value of the property—and thus higher value properties pay higher valuation fees. For example, if an assessor quotes a rate of $3 pesos per thousand, and your property’s assessed value is $5m pesos, then your valuation fee will be $15,000 pesos. ($5m / 1000 x $3.)  You might be able to negotiate a fixed rate, or lower the rate per thousand if the property is larger, or situated in a more expensive area.

Valuation reports have different purposes.  Lenders may ask for a formal valuation of the property before agreeing to release funds, and sellers use valuations as supporting evidence for their asking price —and some sellers might assert that the valuation is Gospel— but remember that these valuations constitute a professional opinion, not a buyer’s tangible offer.

Offers and direct negotiation are key tools

While various disconnected data sources exist to help sellers and buyers gauge the present market value for real estate, the price of a piece of land or a property in Mexico is most-often determined somewhere between “what the current owner is willing to accept” and “what a buyer is willing to pay.”

Cash buyers have leverage

Most foreigners who have been purchasing real estate in Mexico over the years have purchased using cash, by trading down from —or out of— property markets in their home countries and exchanging these for a home in Mexico, oftentimes as part of a retirement plan.

This form of direct capital investment has provided an additional support mechanism for the residential property market in Mexico, and with buyers not subject to the usual pressures of property repayment schedules and interest charges, the market can remain stable even as prices soften or fall.

Serious interest deserves an offer

The asking price is almost always negotiable, except perhaps in very buoyant periods where buyers far outstrip sellers bidding for local properties.

If you are seriously interested in a property you have viewed, then you should make an offer based on your research and intuition.

Experienced local agents tell us that “the most important thing is to make an offer.” Sometimes “low-ball” offers are rejected without further discussion; and sometimes the sellers engage.  We’re told that sometimes relatively-high asking price offers are accepted by buyers without negotiation, and conversely some exceptionally low-ball offers are accepted by sellers.

The negotiations tend to pivot between:

• the underlying reasons current owners may have for selling which may never become apparent to the buyer but which influence the negotiations and the price sellers are willing to accept; and
• underlying reasons buyers might have for wanting a property that can include things like an emotional feeling they encounter in relation to a house they have viewed, or a hurried moving schedule.

Some homes are overpriced

Some homes listed for sale are simply overpriced with owners quite unwilling to budge or negotiate on the matter—and they often appear in no hurry to sell.

Some homes stay on the market (or see-saw on and off of it) for many years when current owners hold a firm belief that the value of the property is far higher than buyers are currently willing to pay—thus creating an impasse.

In these situations it’s prudent for potential buyers to consider alternative properties and ‘move on’ from any notions they may have about buying an overpriced property held by an unyielding seller.

Price trends and lifestyle priorities

As elsewhere, buoyancy in Mexico’s property markets ebbs and flows, driven by a wide variety of factors and influences.  Waves of buoyancy tend to be localized, with certain regions or locations increasing or waning in popularity over time, influencing demand. Prices are ultimately determined by the same factors which often drive house markets  —primarily capital flows and demographics— although broader influences can also cause prices to surges or decline.

Price buoyancy continues in popular places

Popular places like southern Baja California, Puerto Vallarta, and the Riviera Maya have experienced property booms that appear to have no end, fueled by high demand as Americans and Canadians look south for beachfront property of the type that has become unaffordable in the US and Canada to all except the ultra-wealthy.

Foreign buyers are also turning their attention inland, beyond the coasts to highland colonial cities where the year-round climate is temperate and improving transport links and local amenities increase the appeal of these locations.  This is driving demand (and raising prices) in lesser-known and under-explored towns and cities which hitherto experienced relatively low house price inflation: among these are Querétaro, Guanajuato, Valle de Bravo, Puebla, Tepoztlán, Pátzcuaro, and Mérida.

Considering your true lifestyle needs

As the capital cost of acquiring property increases, we recommend you consider reading this article about your lifestyle needs as you scout for a place to live and especially when you intend to make a significant property purchase in Mexico.

The advice in that article shares some helpful insights about the types of areas which are likely to continue benefiting from investor interest: they are the typically the ones that offer value for money, have strong local communities, the location’s character and potential, and local services and amenities which people commonly seek when moving to a new place.

Total cost of property ownership in Mexico

Residential property in Mexico continues to attract buyers from abroad for another reason: the total cost of ownership is lower than it is in the US, Canada, or Europe.  Ownership costs are mitigated by lower property taxes (although these have been rising in recent years, albeit from a low base); lower construction costs (but land prices and materials costs have been rising significantly of late); lower ongoing maintenance fees; and a lower cost of living.

Learn more about real estate in Mexico

We publish detailed and continuously updated information about real estate in Mexico that shares valuable local insights and knowledge about property markets for buyers, owners, renters, and sellers.

Resources for Living & Lifestyle in Mexico

Mexperience offers you a comprehensive online resource of information and local knowledge to help you discover Mexico, explore choices, find opportunities and plan a new life in Mexico.  Our resources include:

• Insightful articles about living and lifestyle in Mexico
• Complete guides to aspects of living in Mexico
• A regular Mexico Newsletter you can subscribe to for free

The information contained in this article is published in good faith and is not intended to constitute personal, professional, legal, financial or investment advice, nor replace the services of professional advisors.