really Cost to Own a Property in Mexico

What does it really Cost to Own a Property in Mexico

The value of your property in Mexico lies not only in the obvious benefits you get from it but also the lower prices of real estate and upkeep when compared to its counterparts in Europe, Canada and USA. Plus, comfortable weather, great-tasting food, and a relaxing lifestyle give more value to your money than in any other place in the world. Property maintenance, taxes, and housekeeping services are cheaper in Mexico and go a long way to making life far more comfortable.

When you purchase property in Mexico, consider these direct and indirect costs:

Home and Contents Insurance

An important consideration when you own property in Mexico is insuring your home. This covers both the house and its contents. Beautiful properties built along coastal areas and areas prone to flooding should take out specific insurance policies to cover such unlikely events.

Cost of Real Estate

As in any country, the bulk of your expenditures will go to the actual cost of the property in Mexico you are buying. Mexican properties vary in costs depending on the location, size, and amenities.

Taxes on Property in Mexico

You will need to take into consideration the annual tax on property in Mexico called “predial”. Depending on the size and location of your home, these property taxes may differ in various states although the usual amount is only a few hundred dollars. There are some areas where you will not receive a bill in the post or a reminder, so make sure you know when this payment is due, which is usually done in the local mayor’s office.

Real Estate and Agency Fees

Investing in a Mexican property has also additional charges which you must consider in your over-all investment. Fees such as: notary fees, sales taxes, and agency fees as well as other lawyer’s fees must be paid.

Fideicomiso – Bank trust for your property

Fideicomiso is a special land trust from a bank for foreign residents who would purchase a property within specified locations like within 50 km (30 miles) away from a Mexican coast or 100 km (60 miles) from any border. Depending on your property, an upfront fee followed by a yearly payment ranges from about US$500.

Electricity and Gas

The cost of services is higher in Mexico comparing it to the average person’s earnings. Gas and electricity costs may seem lower than those in the northern border. It is good to note that the more electricity you consume, the energy units become more expensive. Government subsidy is provided as long as you don’t go beyond your “allowance” or the responsibility of paying the full electric bill is yours.

HOAs

When budgeting for your home costs for a year, remember to include the HOA’s fees and other subsequent payments. This is relevant for any gated community, similar to buying a condo, an apartment, or living within a golf or country club.

Feel free to add any costs related to property ownership in Mexico that we may have overlooked.

Villa La Estancia Real Estate Investment in Cabo

A Real Estate Investment in Cabo

When looking for a vacation home you want somewhere that is both beautiful and functional, somewhere that will continue to hold your interest and admiration for years to come. Cabo San Lucas could be such a place; this is a perfect fusion of the time and wind created natural environment and the creature comforts that man brings with him. The Cabo desert is flanked by rolling mountains and the sparkling Pacific, but in the midst of this is Cabo san Lucas.

People may come here to see the iconic arch-shaped rock formations, but they stay for the city and all it has to offer.

A real estate investment in Cabo

Cabo has long been a vacation hotspot and real estate investment, but it can be so much more! The urban expansions of the last few decades were well-planned, and this has paid off quite spectacularly. An extensive selection of properties can be found here from charming condominiums to vacant lots, to city apartments, and of course beach-front homes.

Here are some of the most important factors to consider when you think about moving to Cabo San Lucas or making a sound real estate investment in Cabo.

What’s the weather like?

Climate is a big deal for many people when they look for a vacation home and real estate investment; if you’re used to shovelling snow from October onwards then warmth and sunshine are pretty high on the priorities list, right? Well, Cabo San Lucas will not disappoint! The temperatures here range between 50 and 95 degrees Fahrenheit, and even on the hottest days humidity is manageable. The Pacific breeze takes the edge off even the hottest day, and you can bank on a wonderful 15 days of rain per year… just enough to stop all the plants dying off! In Cabo san Lucas barbeque is always on the menu.

Golf courses

For many retirees a second home is all about the lifestyle it can offer them rather than the minutiae of the home itself. This is yet another area where Cabo comes out on top; the medical facilities are world class, the cost of living is lower, and all the modcons you could ever want are here. But it’s the golf courses that really set it apart; courses designed by the biggest names in the business can be found here.

Rub shoulders with the rich and famous

For those who fancy their chances at rubbing shoulders with the rich and famous there is no better spot in Mexico to call home. Cabo San Lucas sits in close proximity with California and as such has long played host to Hollywood elite and the big .com’s of Silicon Valley. Weekends are when it really kicks off; cocktail parties with elite guest lists are hidden behind every other door… just imagine who you could be living next to when you join them in with a real estate investment in Cabo.

Red tape of real estate investments in Cabo

A good realtor can make the process of buying in any place relatively quick and simple, even if you yourself are hundreds of miles away. To ensure that you get a good realtor be sure to choose a reliable name and check all references that are given to you. A notary public will still be required to validate your real estate purchase by confirming the validity of your legal documentation. This process is different to the one you’re no doubt used to, but it’s no better or worse – simply different.

Cabo San Lucas could be your dream home; a place to start again.