Why Mexico Real Estate?
Mexico enjoys a stable economy and is one of the top real estate markets for foreign investors and retirees. The Mexico real estate market is booming and the property is very affordable compared to North America or Europe. For example the Playa del Carmen real estate market is one of the fastest growing real estate markets in the world. (Scroll down to see Mexico real estate for sale and rent.)
- Mexico offers good value for the money compared to the U.S. and Canada, within easy travel distance from home.
- Land, construction, maintenance, utilities, property taxes and services are low compared to the rest of North America.
- Mexico beach and popular tourist areas make sense for buyers seeking a retirement or second home, with the option for vacation rental income when they’re not using the property.
- Lifestyle options vary from Mexico City’s upscale urban culture to jet-set coastal resorts to historic Spanish colonial cities in the central mountains to the beautiful beaches of the Mayan Riviera.
- Two long coastlines offer many beach options, including well-established Pacific Coast resort areas.
- San Miguel de Allende, in the foothills of central mountains northwest of Mexico City, is known for its active arts and cultural life, colonial architecture and large expat population.
Mexico Real Estate Market Information
- Since the 2017 drop in the Mexican Peso real estate in Mexico is a very good bargain
- Prices dropped dramatically after 2008 in beach areas popular with U.S. buyers, especially along the Pacific coast. Now they are steadily increasing and make for a great investment.
- Rental income is moderate but steady, with highest returns (7.76%) reported for small apartments in the Federal District (Mexico City), and lower returns (3.6%) for large beach-front houses in Quintana Roo (Mayan Riviera).
- Home prices in Mexico rose by 5% annually between 2008 and 2017, slightly above inflation, according to the national mortgage association.
- Official statistics on sale prices are not available in Mexico, making precise return calculations difficult.
Real Estate Investment, Taxes and Doing Business in Mexico
- Buyers’ costs: 1.13-4.7%
- Total real estate transactions costs: 4.6-11.2%
- Foreign residents can buy real estate in Mexico, but in coastal areas and near borders must do so through a trust system.
- Bank trusts in Mexico hold property deeds for beneficiaries (purchasers) who can sell, mortgage, lease or bequeath the property to heirs.
- Trusts are for 50 year periods, renewable at any time.
- Non-residents can either pay a 25% withholding tax on rental income without deductions, or
- File a tax return claiming the income as business income, and pay a progressive tax of up to 30% on net income after deducting expenses.
- Property taxes on the assessed value range from .05% to 1.2% annually, payable to the state.
- Please read our Guide to Buying Mexico Real Estate.
Landlord and Tenant
- Historically, laws in Mexico favor the tenant in long-term leases and can make it difficult to evict a tenant even after the lease expires.
- Every state has its own laws regulating long-term rental contracts, which have a minimum term of one year in Mexico City.
Mexico Retirement Visa
- Investment income statements or bank statements showing an average monthly balance equivalent to US$95,000 for the past 12 months, or proof of tax-free monthly income from pensions in an amount greater than US$2,400 for the past six months.
- Foreign individuals who establish their primary residence in Mexico and do not spend more than 183 days per year outside the country are considered residents.
- Mexican residents pay tax on worldwide income.
[Source: Mexico Gobierno la Republica]
Mexico Real Estate Markets of Interest
Riviera Maya Real Estate Market
The Mayan Riviera real estate market on the Caribbean in the Yucatan Peninsula features:
- Cancun resort communities – very established resort area of Mexico.
- Some of the world’s finest white sand beaches in Playa del Carmen market, Tulum, and Akumal making the Riviera Maya real estate market very popular
- Historic colonial city of Merida, just 20 minutes from the Gulf of Mexico – which is becoming very popular with expatriates and investors.
- The island of Cozumel, whose beaches, crystal-clear water and Cozumel Reefs National Marine Park make it a diving and water sports haven
- Mayan ruins throughout the peninsula.
- Learn more about Playa del Carmen real estate
- And the Tulum real estate market
- Please contact our Playa del Carmen buyer’s agent for more information or to set up a Riviera Maya real estate tour.
San Miguel de Allende Real Estate in the Central mountains
- San Miguel de Allende is a World Heritage Site and one of the more popular expatriate markets in Mexico – if not the world.
- There is a wide variety of San Miguel de Allende real estate available – from Mexican haciendas, new condos, houses, and Mexican court yard homes.
- Please contact our San Miguel de Allende buyer’s broker for more information or to set up a San Miguel de Allende relocation tour.
Puerta Vallarta and Cabo San Lucas Real Estate on the Pacific coast
The Cabo San Lucas real estate market is located at the southern tip of the Baja California Peninsula. Warm and sunny all year round, it draws tourist to its many outdoor activities such as fishing and scuba diving.
Despite its humble origins as a small fishing town, this place has grown to become a world-class vacation destination, which has fueled the growth of the local real estate market with high end real estate developments in Cabo San Lucas being the norm now.
Mexico Location and Geography
The United Mexican States consists of 31 states and a Federal District, its capital and largest city.
Mexico is the 13th largest country in the world, with wide geographical and cultural variation.
Climate ranges from desert to tropics to temperate highlands.
[Source: For more information – Wikipedia Mexico]
What to do next if you are interested in Real Estate in Mexico
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Browse our Mexico real estate listings below and contact one of our Mexico real estate buyer’s agents:
- Riviera Maya real estate buyer’s agent – to find your Mexico real estate or Mexico property investment in the Cancun, Playa del Carmen, Akumal, and Tulum real estate markets
- San Miguel de Allende real estate buyer’s agent – to find your real estate in Mexico or property investment in the San Miguel de Allende real estate market
- And check out our Cabo real estate broker specializing in high end property in Mexico