When Bill and his wife came on vacation to Mexico, they liked it so much that they looked for the possibility of changing their residence.
At least seasons. They wanted a house for the winters, very close to their familiar Pacific Ocean. Bill is from Washington, and he is 55 years old.
"We arrived in Cabo San Lucas and we did not know anything about the area," says Bill. The first thing they did was look for offers in magazines, so they found the real estate agent, Rebeca Curiel, who accompanied them throughout the purchase process. Curiel remembers that the first thing he said was that they have patience, since a procedure can last for months. So it was.
And what is needed
To buy a property in Mexico you do not need to be a resident. In addition, the same requirements are for foreign individuals and corporations, the fundamental criterion is the place of the property: whether it is in a restricted area or not.
These areas are 100 kilometers in the border strip and 50 kilometers along the country's beaches. Here it is not possible to buy directly, but through a trust created with a recognized banking institution, that will give right to use and enjoy for at least 50 years, explains Fernanda Trillo, senior vice president of Coldwell Banker Commercial.
"Once that period has elapsed, the document is renewed or a new trust is made," says Trillo. "If someone were to die, instead of doing all the paperwork he passes on to his heirs." A fiduciary delegate must carry out the procedure before the Ministry of Foreign Affairs (SRE) and a notary. Obtaining a permit to set up this trust in restricted areas costs 13,910 pesos.
Outside of these delimited areas, foreigners must submit the application FF-SRE-006 or FF-SRE-007 and sign a waiver to the possibility that their country intervenes in any litigation of said property. It also requires the authorization of the SRE.
The new housing paradises for foreigners
Mexico is the number one choice for Americans, the main investors in the country in residential real estate, then there are Canadians, which also coincides with the nations that invest the most in all sectors of the country. In the case of retirees, the cities with the highest demand are Puerto Vallarta and Ajijic, in Jalisco, according to a report from Point2 Homes and with data from AMAR, the Retirement Assistance Association chaired by Javier Govi. Other places are Nuevo Vallarta, Rosarito, Ensenada, Playa del Carmen, Cabo San Lucas, Puerto Peñasco, the Rocky Point of Sonora, and Mazatlan. Mérida is a new polo, while San Miguel de Allende has ceased to be attractive due to its growing social hustle.
What do foreigners buy?
In the residential case, visitors come to spend a few days of rest, especially beach destinations. They are people close to retirement or already retired, who have the time and the savings to acquire a property in the country. Like Bill, although the process was a bit more complicated than in his country, he could have the keys to his new house about 90 days after the process started.
Another type of foreign investment that is growing is in the industrial sector, now more buildings of this type are demanded than corporate, especially in Tijuana and Ciudad Juárez, Guanajuato, San Luis Potosí, Querétaro and Aguascalientes, for the aeronautical and manufacturing boom of cars.
Direct Foreign Investment in Mexico grew in 2017 and represented 29,695 million dollars, according to the Ministry of Economy. Two sectors in recovery are construction, with 10.3% -6 percentage points more than last year-and that of real estate and rental services, which reached 1.4%, but in 2016 it had been 1.1%.
And although much of this is derived from companies that expand their operation in the country, there are also unit investments. "We are seeing that in the commercial segment and offices, foreign companies do not invest in Mexico, I speak for example of a law firm or a service company," says Trillo.
The main reasons are three, listed: insecurity, fluctuations of the dollar and corruption in the government. "Before there was an interest in emerging markets and developing markets, now they are looking more towards development," he says. "But in the industrial sector it has not diminished, investments are going from strength to strength."
Undoubtedly, Mexico is a point of interest for foreign investment in real estate, whether for retirement purposes or for business matters. A boost to the growth and profits of the sector.
Finally, I recommend visiting the beautiful beaches of Baja California Norte, Playas de Rosarito and Tijuana. As well as offering you the best places to spend an incredible stay.
In RE / MAX Baja Realty we offer you the best prices in exclusive Condos, Houses and Residential.
Please dont hesitate to call us
REMAX/BAJAREALTY
Gustavo Torres
(619) 270 5446
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