Why Buying Real Estate in Mexico Is Easier Than Ever

In recent years, it has become easier and easier for Americans and other non-residents of Mexico to purchase and obtain direct ownership of residential property and other forms of real estate in the interior of Mexico, without any restrictions other than those imposed on Mexican residents. Yet, there are some forms of restrictions for those non-residents who wish to own property near the border or along the Mexican coast. In fact, non-residents cannot own any property in their own name with in this so-called restricted zone.

But for many interested parties, this aforementioned restriction is not as much of an obstacle as it seems. The Mexican government has provided a means to encourage foreign investment in these areas. This comes in the form of a real estate trust, not unlike those set up in the United States, called a fideicomiso. In this type of trust, the Mexican bank must be designated as the trustee and, as such, holds legal title to the property and is the owner of record. Beneficial use is, however, held by the property buyer. The beneficial owner may enjoy the unrestricted use of the property, including the right to enjoy the property, sell the property, lease the property, and improve the property.

Most of the time, the initial term of fideicomiso trust is fifty years, but it may be renewed for an additional period of fifty years within the last year of each fifty-year period. Further, the renewal process can be continued indefinitely, enabling the investor to obtain long term control over the property. Consequently, for all intents and purposes, the fideicomiso offers the same rights and obligations that direct ownership of property does.

The issue of financing has been addressed in new ways lately. In the past, Mexican banks didn't offer the same types of attractive home loan packages that made it simple to finance a home in the United States. In Mexico, the majority of people tend to build their own homes starting with a small foundation and expanding slowly as income allows. Thus, for many years, Americans who wished to buy property had no choice but to pay in cash for the full amount.

Due to recent reforms in real estate law, some American banks are now able offer loans for property in Mexico--a fact that has contributed greatly to the ease with which properties can be purchased by non- residents. Not only can existent properties be purchased but loans for construction have been made available through U.S. banks as well. In some cases, certain banks will only write loans for second or third homes in Mexico while still others offer loans for primary residences and investment properties. The end result is a variety of options for those interested in making an investment in Mexican real estate.

While there are numerous differences between purchasing a home in the U.S. and purchasing a home in Mexico, the process today is easier than ever before. It's important to find a real estate agency with a solid track record for success in helping Americans to obtain property in Mexico.

There are always numerous factors to consider purchasing property in a foreign country. By working with professional financial advisors, talking with others who have experienced the process, and doing your own independent research online, buying property can be a fulfilling endeavor with long term benefits.