Why are people keen on investing in Mexican real estate Sayulita Mexico included)?
Many foreigners who stay in the country for an extended amount of time think that purchasing a piece of property provides them with greater overall value compared to staying in a hotel or a rental accommodation. Of course, there are those who simply wish to invest in a second home outside of their native countries. Buying that second property offers them an opportunity to own a vacation home which they can rent out.
It certainly helps that property prices in Mexico have consistently risen and yet remain affordable to many people who are interested in making a foray into the local property market. Even if you factor in additional costs involved in owning a home in Mexico, like maintenance and taxes, the cost of ownership is comparatively low. Additionally, potential investors have several options to choose from.
Sayulita is one of the more attractive markets in Mexico due to its accessibility and welcoming atmosphere for foreigners. Numerous developments within the area have made it possible for continued property market appreciation in the area. It also helps that Sayulita’s climate is pleasant and welcoming for potential property buyers.
But before you consider investing in Sayulita or other Mexican property markets, there are a few crucial things that you need to know beforehand.
Since 1982, the Mexican government has allowed foreigners to own property in the country. The myth that the government can take land owned by foreigners is simply not true. Since 1995, foreigners have been allowed to buy and sell properties through the Direct Property Deed.
However, if you are planning on investing on properties located along the coastline and boarders, you have to do that through “Fideicomiso.”Fideicomiso is a kind of trust that potential investors have to set up with the help a local bank. The local bank holds the deed for the investor but the investor still remains the owner of the property. The trust lasts for 50 years and can be renewed after this period.
Most real estate transactions in Mexico are done in cash. However, if you are looking for financing, there are developers, Mexican banks and US institutions that can offer these for higher interest rates.
The Mexican and American real estate markets share a few similarities in terms of how transactions are done. However, buyers should be aware that the industry in Mexico is not regulated. This is why buyers are advised to proceed with caution and choose reputable companies to work in their behalf when planning to invest in Mexico.
Here at Applegate Realtors, we offer the Vista 360 Real Estate Solutions program for people interested in investing and relocating in Mexico. This program is comprised of comprehensive real estate agency services that will ensure a smooth and stress-free transition for you.