For those looking to make an investment in Mexican real estate, there is now a step-by-step guide available from Live and Invest Overseas that can help make the process more secure and efficient. Before taking the plunge into buying property in Mexico, however, it is important to understand the laws surrounding ownership. This blog post will provide an overview of what you need to know before you buy property in Mexico.
How to Legally Own Property in Mexico
In general, it is permissible for an individual or trust to hold title in their own name without restrictions when investing in Mexican real estate. However, this changes when it comes to coastal properties as Mexico has a Zona Restringida (restricted zone) extending 50 kilometers inland which may impact ownership procurements. The restricted zone was created by the Mexican Constitution of 1917, which prevents foreign individuals and entities from owning land within this area; all coastal property must be owned by a fideicomiso (trust). It is important to note that while trusts are used for coastal properties as a method of “owning” the land without violating the law, they do not grant direct control over the property; instead, control remains with a bank acting as trustee on behalf of the buyer.
Making Your Investment Secure
As with any major financial commitment, there are certain steps you should take before investing in Mexican real estate. This includes determining your budget and researching potential areas where you would like to buy property. Once you have determined where you would like to purchase property, it is essential that due diligence be completed regarding legalities around ownership and zoning regulations; having proper documentation and permits before any kind of commitment or purchase is made can save time and money down the line. Additionally, working with an experienced broker — such as those at Live & Invest Overseas — can help ensure that your investment is secure and successful.
Confidently purchase property In Mexico
Mexican citizens and expats alike can safely enjoy the various benefits of buying property here such as increased rental income potential or capital gains through appreciation of their investment once all due diligence has been completed. Understanding the rules surrounding ownership—especially those regarding the Zona Restringida—and researching potential areas where you would like to buy are critical steps when considering investing in Mexican real estate. With these guidelines followed and proper documentation secured, individuals can confidently purchase property knowing that their investments are safe and secure.
