With the influx of North American investments, Mexico is always looking forward to making things a little bit easier for you! A little bit easier to finance, a little bit easier to loan, and a little bit easier to buy. But how, exactly? Well, keep on scrolling and find out the five ways your neighboring country looks after you:
Through a Fideicomiso de Garantia
When it comes to home financing, no one will deny that it can be very difficult to qualify for a loan, and that it can get very expensive, more so if we’re talking vacation homes. Not it Mexico though, at least not as of recent years (9-10 years as of time of writing). The Fideicomiso de Garantia or “Guarantee of Trust” is the Mexican equivalent of a deed trust, meaning that it allows you to have a non-judicial foreclosure and a private sale, instead of having to rely on traditional mortgage.
Time periods to retake possession from a loan through this method can go as low as thirty days, believe it or not, and if you do obtain a loan for a property in Mexico, you will get a deduction on your Federal Income Tax, namely a Form 1099 Mortgage Interest Statement. A sweet deal if I do say so myself.
Through Home Equity Loans
One of the easiest ways to get the funds for a vacation home. Closely related to this are Fractional Ownerships, which means shared use of the property, thereby lessening the costs, though it is highly recommended that you get a very, very carefully worded contract for this one (as well as trustworthy people willing to invest in the project).
Through Seller Financing
Being a seller gets you the benefits of a long-term payout with a higher interest rate. Why? Sellers own properties, free and clear, unlike more traditional ownerships. This method also lightens the load, so to speak, since a third party holds the title documents and collects, records and distributes the funds, so not only is it beneficial, it’s also quite practical.
Through Title Insurance
Title insurance is just as viable in the US as it is in Mexico. It may cost more and take longer (seven to ten weeks compared to the US’s one to five day window) but it is the next best thing, and let’s face it, having some peace of mind after what is likely to be a lengthy purchasing, contract signing process is never a bad thing to have. With all the important files (records, easements, liens, etc.) of your property, processed, archived and protected by the Mexican law firm, worrying about title insurance will be the least of your concern.
Through Optimized and Computerized Property Valuation
Bit by bit Mexico is catching to the US real estate scene when it comes to the online, comparative market. This means that fairer and more consistent pricings (by virtue of online databases being shared by all sorts of real estate companies) are steadily becoming the norm. So any project that falls outside said norm will be easier to spot, now whether that’s a good or a bad thing is entirely up to the project itself and your ability to tell proper practices from shady ones, but at least you’ll be able to recognize outliers more often.
There you have it, a quick run-through for the different ways you can make your property purchasing process easier in Mexico, if not more manageable. It’s all about knowing the rules of the playing field and using them to your advantage, so find the one that best works for you and go for it, there’s deals waiting right around the corner!