Lush tropical beaches, gorgeous sunny climate all year round, untouched beaches as far as the eye can see, it’s no wonder that more Americans and Canadians have made the leap to invest in real estate in Mexico over the last decade.
But how is it done? And where to begin?
These are the questions we are often asked, as many foreigners don’t know where to begin to purchase abroad and many don’t know the ins and outs of purchasing property in Mexico.
For example, did you know that, as a foreigner, you CAN purchase property in the so-called “restricted zone” of beach destinations? Did you also know that the simplest way to buy an investment property is through a formalized trust with a Mexican bank, called a fideicomiso?
Why Invest in Overseas Property?
As you may already know, real estate investments are one of the safest ways to grow your money and protect your future.
There are numerous reasons to choose Mexico for your financial investment. As we mentioned above, the enviable tropical climate that Mexico enjoys all year long as well as the breathtaking beach destinations near cities with all the services you may need.
Here are 3 additional reasons to consider broadening your investments to real estate in Mexico:
#1: High Economic Development = Excellent Return on Investment (ROI)
For a real estate acquisition to have and growing ROI, one thing is essential: a great LOCATION.
Mexico has countless locations with rapidly-growing economic development, modern infrastructure, as well as natural and cultural riches.
The Riviera Maya
The Riviera Maya is a top destination that serious investors consider when purchasing property in Mexico. It’s home to beautiful destinations such as Cancun, Playa del Carmen, Puerto Aventuras, Akumal and Tulum. There are also other highly profitable areas to boost your investment such as the Pacific beach towns of Puerto Vallarta and Los Cabos, or the cultural hub of San Miguel de Allende.
Each of these beach destinations are great for investing in real estate for one simple reason: they are sought-after resort towns for tourism. If your long-term plan is to buy a property for retirement or to convert it into a vacation rental, these will provide a great ROI.
Mexico: in the Top 10
According to the World Tourism Organization, Mexico has been among the top ten most visited countries in the world for over a decade. The destinations that are mentioned are some of the most visited in the country and in high season, the demand for accommodations, in these fully-equipped and accessible destinations, exceeds the supply.
Mexican properties have the potential to be fruitful investments.
#2: Foreign Currency to the Mexican Peso
IOnvesting in real estate in Mexico brings with it several economic benefits. Being able to rent properties for foreign vacationers in US Dollars or resell the properties in that currency generates a much higher return on investment, since the US Dollar maintains its value around 20 times greater than the Mexican peso.
The cost of living in the country (in Mexican pesos) is also much lower than in other places, even in destinations that can be considered “expensive”.
Additionally, the annual property tax in Mexico (known as predial) is lower than in the United States, Canada and many European countries. This annual tax is paid prior to March 31 and its cost depends primarily on the size of your investment.
Tip: if you pay the property tax ahead of time (for example, in January or February) the government will give you a discount on the total. The discounted amount usually varies between 6-10%.
#3: Real Estate in Mexico = Higher Equity
The “capital gain” is the increasing value that the property you acquire obtains over time.
To determine the capital gain of an investment property, several factors are taken into account including the location (the accessibility of basic services near the property), highway proximity, commercial development in the area, and the influx of people, both Mexican and expats alike, in the area.
So why not get started today?
Mexico has various areas with increasing demand, solid infrastructure and modernization that go beyond its large cities. It doesn’t matter if you’re looking for a beachfront paradise to retire or a cultural gem in the country, you’re guaranteed to discover an extraordinary option to fit your budget and increase your investment over time.
Source: 3 REASONS TO INVEST IN REAL ESTATE IN MEXICO IN 2023.
For matters pertaining to real estate in Puerto Vallarta, or real estate in Bahia de Banderas, property management, buying houses in Puerto Vallarta, buying condos in Puerto Vallarta or the surrounding areas Mexpat Realtors in Puerto Vallarta is a great resource call them or go to their website www.mexpatrealtors.com for more information
