Article provided by: Ron Morgan
Recent years have seen an rise in the number of Americans buying homes in Mexico. Many people are fulfilling their dreams of retirement in a warmer climate, while others are purchasing vacation homes to escape from the city several times a year. Mexico’s beaches and warm weather appeals to many who wish to spend more time in the outdoors and pursuing beloved hobbies such as biking, scuba diving and horseback riding. Regardless of the reason, Americans are fulfilling their dreams and purchasing houses, apartments and villas in beautiful Mexico.
So is a home in Mexico right for you? What are the ins and outs of buying a home in Mexico? We can help you!
Can Americans buy property in Mexico?
Americans and other foreigners can purchase a home in Mexico. As a matter of fact, Americans can purchase and hold a deed to a property and are entitled to the same rights as a Mexican national as long as it is not within the “restricted zone”.
What is the “restricted zone”?
The restricted zone in Mexico is the area where foreigners are not able to own property. This area is approximately 30 miles from the country’s shorelines and also includes areas that are 60 miles from international borders such as the Mexico/US border. These properties are often highly sought after and can be purchased by foreigners through a Mexican corporation for commercial property, or a bank trust also known as a fedeicomiso. In either situation, the title would be held indirectly through a bank trust or corporation.
What are the risks and benefits of using a bank trust to purchase a home in Mexico?
Using a bank trust to purchase a home in the “restricted zone” in Mexico is quite common and relatively low risk. Since the Mexican government first established specialized bank trusts to allow investors to purchase residential properties in the “restricted zone” of Mexico in 1973, many Americans have chosen this method even for buying in unrestricted zones.
These bank trusts may add some time and fees to the purchasing process, but there are also some advantages to using bank trusts. One of the advantages is that more than one person can be the owner of the property. A second advantage is you can list an heir for the property, and it can be transferred quite easily to that person quite easily.
Stated simply, there are three ways to purchase property in Mexico. The first is through direct deed, the second is through a Mexican corporation, and third is through a bank trust. Buying a home in Mexico is within reach with the right professional.
It is recommended that purchasers contact an agent who is licensed as a “Professional Real Estate Association in Mexico”. Our team of highly qualified professionals are the best in the business, and we can help you navigate the home purchasing process - from finding the home of your dreams in Mexico to making an offer and purchasing the property. Contact our group today to begin the journey of fulfilling your dreams.How To Buy A Home In Mexico
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