What are the steps to buying property in Mexico?

[tyler]

I heard it's difficult?

[JimMcG]

I heard it's difficult?

In today's environment, there are good deals, but 'buyer beware' takes on a whole new meaning.

[playaperro]

Let say you want to buy a casa blanca condo in sandy beach resorts.

It already has a 50 year bank trust the original buyers paid $310,000.

You can pick one up right now for $175,000 furnished.

You Interested.

[Roberto]

I heard it's difficult?

Nope, it's easy. Just takes money. Let me know and I'll fix you up.Some basics:Don't buy into an incompleted project. If they say 'The swimming pool will go over there", leave. Don't take any promises, even if put into writing. Ask to see a copy of the Bank Trust or a Mexican deed on the property. If they don' t have either, leave. If it's a condo they may have a Master Trust and the condo will be in that trust until you get your own trust, that's OK. If it is in a Mexican Title you need to have someone examine the title, not all properties under a title can be sold.Ask for and get an estimate of all closing costs. It is higher here than in the US so don't be shocked after you sign an agreement to buy, get the numbers first. Be sure that the seller has agreed to pay their capital gains tax if there are any.Find out about the association fees. Some of the developments are much higher than others. If the property has been in a rental pool, you can ask for the rental history. Don't depend on rental income to make your payments, I don't care what they tell you, that is a mistake.Be sure the Bank Trust papers are processed by a Notario. Expect it to take 6months to a year to finally close, but you will have possession of the property as soon as the money is passed.Most people don't bother with title insurance, it's not the same as in the US. Don't expect to find bank financing down here. It ain't gonna happen. Seller financing does occur. Most buyers have used equity in a home is the US to make the purchase.There are lots and lots of really good deals on completed homes and condos. For example, right now you can buy a nice 1 bedroom condo at the Princessa, with all the amenities, pool, etc. for about $100 K and terms. Maybe 50% down. Contact me if you've got questions.

[Terry C]

Tyler, read the article over at http://rptides.blogspot.com/ it tells a lot about bank trusts and owning property in Mexico.

[Wahoo]

the hard part is if you want to sell.

Research the property, and then research some more.

Attached properties are "Attached" with many unseen strings. Your condo is only as strong as your other partners. Think of what salt does to your car in the winter in Ohio, multiply it by 4. You will need to re furbish and expect levies using dollars not pesos. I know homes at Las conchas that have had to rebuild their retaining walls. So make sure you have reserves. How about a new elevator? Paint, parking etc. Need new sliding doors because of the "salitre"? Put one in the budget evry 5yrs.

Do your research on utility costs, they are very high compared to PHX. Association fees have gone up over 100% on some HR condo's with no end in sight and if the condo has 15% units in arrears get ..... Walk away. What they will do in the future is anyone guess. So stick with the SFR.

And if you still want to buy, get a partner with a Bank. Even if you do not need a loan, use a bank. ( 50/50 ) A bank will protect its interest and know the ropes, and by association you will be protected.

You use and have their "Notario". You are at the mercy of this "rain maker" and using a Bank's knowledge and contacts helps. Notario's are not regulated and charge what ever they like and then add fees at their pleasure even after the facts. It is not closed util he says so.

Yes, their are many lenders in Mex, Rockypoint. They will require independent appraisals and review the paper work, trust etc. You can always pay the bank off after 3 -5 years after you feel comfortable.

Here is a good one; http://www.platinumcapitalinternational.com/

The reason many say no financing available is the the underwritting guidleines are real; "full documented loans". You have to be able to afford the home not using any rental income and have the reserves. (6 mo) This is owner occupied or second homes, not for investment or speculation.

Speculating is not recommended for newbies, especially in RP.

If you need to take out a lien against your presant home, you probably should rent any of the 1,000's of places available. Co mingling of assets and liabilities is not a good idea. Too many Phoenicians and Calimen are stung by this move. You need to protect your OO and placing a lien agaisnt it to buy RE in another country???? What are you thinking?

Buying and getting a string attached asking for money every month might make that beach home not so attractive after a couple of years.

[Wahoo]

This is a good blurb on each section down to San Jorge.


http://rptides.blogspot.com/2009/03/fabulous-beaches-of-puerto-penasco.html

[Roberto]

Buy the 41 ft. ketch Tyler and be a modern day Travis McGee. !!!

[InkaRoads]

Most important is to understand the paperwork, if you do not read spanish, find someone you know that does and when in Mexico do like the mexicans find yourself a "Notario Publico" same as an american Lawyer, not to be confused with a "notary" in USA.
And agreed with Roberto, if your particular choice does not have four walls, roof and a key to open the front door, run, RUN LIKE HELL IS BROKEN LOOSE!!!

[La Pequena Hermana]

Notario's are much stronger than "lawyers" in Mexico. Deal with them if you can.