Frecuent Asked Questions
Find the answers to all your questions about Buy and Sell Real Estate at the Mexican Caribbean.
Am I able to Invest at Real Estate since I'm a foreigner?
The answer is simple. YES and invest safety through an escrow or a Mexican Company.
The main restriction is located at the 27th Article of the Mexican Laws which sets that foreigners can’t own properties inside the 100 kilometers (60 miles) all across the borders and 50 kilometers (30 miles) from the offshore.
The government, however, has provided 2 ways to mange this restriction, through the use of a escrow or a mexican company.
What is a Escrow?
In a escrow there is 3 parts involved: The original owner of the property, the bank or institution, and the person who receives the escrow’s benefits.
The escrow does not provide direct property to the foreigner beneficiary. Instead, sets a legal base in which the bank or the authorized institution, keeps the title as legal property, so it can represent the name of the foreigner beneficiary.
The escrow’s documents guarantee and keeps all the rights and privileges of the property. The escrow can be established for a long term of 50 years, which can be extended at anytime of its terms, forever. The costs to set a Escrow are not the same between each bank entities.
However, the range is in between US$ 450 and US$ 1,000 to build the escrow, and in US$ 400 and US$ 800 for the maintenance of the escrow every year.
The buyer is the beneficiary and owns all the rights of enjoying the property, including remodeling, rentals, mortgage, transfer it to inheritors or selling the property at anytime.
The bank escrows are established by a mexican notary, up from the date of the reception of a permission from the Exterior Relations Ministry. This is a daily routine procedure because of the huge ammount of Real Estate foreigners owners. The forms are standard and the process is fully completed by the notary as part of the closing procedures.
Beneficiaries are allowed to modify their property. The building by the owner is permitted, according to the local urban regulations.
How to buy through a Mexican Company?
To buy a Property through a Mexican Company is interesting and an alternative highly profitable. First thing, as long as inside the company owns 2 or more parties, the Mexican Company can be fully owned by foreigners, is no longer requires that a mexican citizen be one of the parties of the company to make it valid. Second thing, a mexican company can be the owner of a property from the start, skipping the need of a escrow and its respective fees. This means that you, as the only owner of the company, are owners of the property at “full domain”, just like in the United States.
And for last, through establishing the property in a company, you can legally rent the property, generating atractive incomings if you are located in a turistic pole.
The establishing of a mexican company in order to buy Real Estate is a relatively simple process, that can takes between 6 and 8 weeks and that usually the price is US$ 1,500 and US$3,000 around, it depends of their complexity ans the number of business partners involved.
Why the scrow is necessary?
The proposal of the escrow is to allow to the foreign people to acquire Real Estate at Mexico, inside the “forbidden areas”, and to guarantee a safe transaction. The forbidden area is any land inside the 100 kilometers (60 miles) all across the borders, and up from 50 kilometers (30 miles) from the offfshore.
When the Mexican Law was created, it was designed to protect the lands and avoid the massive losing of the territory, that they have been through the history. Instead of emend the Law, Mexico created and added the escrow to encourage the foreign invvestments in the highly desirable, especially all across the offshore. Residential Properties out of the forbidden can be acquired by the foreigners without needing a Bank Escrow, even some buyers choose to use it.
I'm thinking about buying a house at Mexico.Is it a safe country to live in?
The answer is YES, MEXICO IS A SAFE PLACE TO LIVE IN. Seven million of nort american people travel to Mexico every year for holidays. The US State Department estimates that over 385,000 US citizens owns the Permanent Residence at Mexico, almost twice than 10 years ago.
Many people is acquiring the new beachfront resorts, at exotic spots like Playa del Carmen, Riviera Maya, Puerto Vallarta, Los Cabos, Cancún, San Miguel Allende, just to mention some of them
It is a good option to acquire a property in Mexico?
The Real Estate market in Riviera Maya is growing, Mexico’s economy ranks at ninth as one of the largest economies worldwide, appreciating and encouraging foreign investment, particularly tourism
The Riviera Maya is a recognized touristic center around the world, ideal for both national and foreign tourists as well as for retirees, mainly from the US and Canada. The acquisition of Real Estate in this zone guarantees an excellent return on investment.
How much I'm going to be charged for the Property Taxes?
Property Taxes at Mexico are 0.25% of the global valuation for financial effects. The munipal taxes are published by late January and the must be cancelled at the Local Taxes Deparment. If the payment is effected before certain established terms, you can get attractive discounts.
* All this rates are approximated, and can change depending of the state or municipality where the Property is located.
Who manages my property if I am out of the city?
In GMB we work together with our company Imexico offering customized management services with returns of investment guaranteed ranging from 8% to 13 % of the total value of your property.
Who is responsible of furnishing my apartment in Mexico?
Most of the times our projects offers fully furnished properties, but in case that it is not furnished we have the best contracts with companies offering counseling with the best prices in the market.
Investing in a property for vacation rentals is a good idea?
Investing in a property is always an excellent option, even better in a zona like the Riviera Maya where vocational rentals guarantee high returns of investment that go along with the high flow of tourists in the zone. GMB counts with professional advisors and specialized programs in vocational rentals, ask about them.
Which is the ideal location in the city to buy a property?
The properties that have higher added value are close to the main boulevards and exclusive areas with easy access to transport, stores and major attractions of the city.
The GMB projects are characterized by its location, in the best areas of the main cities of the Riviera Maya, surrounded by the wonders of the region in an atmosphere of comfort and luxury.
How do I choose a good apartment?
Your property must be adapted to your lifestyle, with comfortable spaces and features. Before you start to search, think about your needs, make a list of priorities, such as location, size and amenities. Set requirements looking at a property and choose the one that suits you the best.
Why prices vary from one type of apartment?
The apartment prices vary not only because of the size, as is logical, but also for variations in height and views. The lower floors are usually cheaper than the high floors and in the same floor there might be different models of an apartment.