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Buying a Property in Mexico

Investment potential

Investors are favoured by Mexican law, and foreign buyers are not discriminated against in any way. Tourism is unlikely to diminish in the near future, meaning that rental returns should be favourable. In fact, in popular tourist areas, returns of 15 per cent can be expected, based on an average of 40 per cent occupancy.

Recent annual price rises have been cited between ten and 20 per cent, so when you couple these facts with low taxes and reasonable maintenance fees, you have a promising investment destination. The market is currently pretty stable and, thanks to moderate inflation, the peaks and troughs that many other markets suffer are unlikely to happen in Mexico.

Whatever type of property you decide to buy, ensure that it is near established infrastructure. Remote homes are harder to rent out, and also tend to witness slower capital appreciation.

Health and education

In general, the healthcare system in Mexico is very good, as the majority of doctors will have trained for at least a year in the USA. The cost of treatment in private hospitals is relatively high however and, so, as there are no reciprocal health agreements between the UK and Mexico, travel insurance is imperative if you don’t want to get hit with a large post-treatment bill. Before entering Mexico it is advisable to be vaccinated against tetanus, typhoid, poliomyelitis, hepatitis and paratyphoid, but malaria tablets are not needed unless you are travelling to the far South East of the country.

Thanks to the amount of American expats, there is a good choice of international schools in Mexico – and even a couple that are based on the British curriculum. Most of these schools provide primary and secondary school education, and most of them offer kindergarten and pre-school as well. Some of these schools teach only in English, but the majority lean towards a 50-50 ratio with Spanish.

Transport

A range of carriers, such as British Airways, fly directly into Benito Juarez – Mexico City’s modern airport. From here domestic airlines Mexicana and Aeromexico fly to all of the major cities and resorts.

Mexico’s road network is one of the most extensive in Latin America. Since 1994, 3,500 kilometers of four-lane highways have been built thanks to government concessions. The majority of these are toll roads but, despite this, journey times can be lengthy simply due to the size of the country.

There is a wide range of car hire firms available, but it’s best to avoid driving in Mexico City itself. If you do hire a car you will need to be over 25 and have a valid credit card, and when on the road ensure that you have valid documentation on you at all times. Driving is on the right, and be alert to any animals that are prone to wondering onto the road.

And finally…

Despite it not being a legal requirement, it is important that you seek the advice of an independent lawyer – especially if your notary public is not fluent in both English and Spanish. In addition to the conveyancing, they can check many things on your behalf – such as the state in which the property will be sold, as many Mexican resale homes do not include telephone lines and light fittings as standard.

Also be aware that estate agents in Mexico are not licensed or regulated in any way, so do not pay any deposits up front. It is also very wise to look at as many properties as possible before you commit to a purchase, that way you will know if you are getting value for money without having to trust an agents opinion.

Finally, be prepared to barter. The asking price of a property may vary dramatically to what the vendor is actually prepared to accept.

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More pages

Page 1: Why Mexico?
Page 2: Finance
Page 3: Investment potential

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