Once you’ve fallen in love with Mexico, you’ll likely start spending more and more time taking in the beauty the country has to offer. At some point, you may decide to purchase a home or condominium here to call home. There are some differences between purchasing a home in Mexico vs. one in the United States.
Can I Legally Own in Mexico?
As a foreigner, you can absolutely own a home in Mexico, but depending on where the home is located, it is set up very differently, and the rules are set by Mexican law. Before you sign anything, have a Mexican attorney or notary explain how title will be held for the specific property, whether it falls in the restricted zone near a coast or a border, and what that costs.
Property Tax
Property tax in Mexico is called predial. Ask your agent or the local tax office what a specific property pays and when it is due.
Financing
Many foreign buyers either refinance their home in the U.S. to purchase a home here outright or have the cash to swing it. Ask your bank and the seller what financing, if any, is available to you as a foreign buyer, and get the upfront payment, the term and any balloon payment at the end in writing before you commit.
Where to Start – Find a Great Agent
It’s super important if you do decide to make a purchase in Mexico that you find a good agent to help you navigate the process. You will find that a lot of larger towns have Americans who have become agents in Mexico. It’s best to interview a few agents and do your homework. You want someone who knows the local area thoroughly, knows the process like the back of their hand, speaks Spanish and English, and is on your side, not the sellers.
Homeowners Insurance – Get that investment protected
Now that you’ve bought your dream home, you need to insure it against anything that might happen to it from the weather or perhaps other things, like if your home was broken into. In the past, Mexican homeowners insurance policies were incredibly confusing unless you were fluent in Spanish. Today, Baja Bound, the broker SmartGringo links to, offers homeowners and renters policies from HDI Seguros for houses, condos and rentals, quoted online; its FAQ says a home quote needs the full address with postal code and answers to questions such as the number of floors and the construction type. Our homeowners insurance cost post and our guide to comparing Mexican insurance companies go further.
Buying or already own? Get a homeowners insurance quote from Baja Bound.