Define your Budget
1. How can I know the estimated closing cost and other expenses?
I always advise to my clients an approximate rate of 6.5%, this is a conservative and high amount, and I have done many operations in the 4.5% range. I prefer to be conservative on the spreadsheet. Clik here for further details of such estimated costs.
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2. What kind of options for financing are available in Mexico?
Only recently have new financing tools become available for Mexican foreigners. If using Mexican property as collateral, the rates may be higher, but it leaves home country equity free for other capital raising options. Please read more at Financing Options.
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3. What is the price expected for the different properties available in the Riviera Maya?
The pricing per square meter is a constantly changing figure. Especially in the past 2 years, the price has been jumping constantly as this zone continues to be a booming area. Write me for the latest figures.
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1. When buying or selling a property in Mexico, who pays the closing costs?
It is common that the buyer pays the transfer of acquisition tax and all other closing costs, including the Notary's fees and expenses, while the seller pays his capital gains tax and the broker's commission.
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2. How much will my closing costs be?
See Article Closing Costs.
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1. Is there financing for foreigners in Mexico?
In Mexico, historically and in many occurrences today, when buying real estate, the transactions are cash operations. Mexican Banks are only recently starting to offer mortgage tools for property acquisitions for the Mexican nationals. Only within a few months ago this year, have major Mexican financial institutions begun offering options to Mexican Foreigners basically for Americans, Canadians, and Brittons. Most Mexican foreigners have used home equity or other assets from there home countries to raise capital for investing here in Mexico. With the new tools now available, allowing for Mexican Property to be mortgaged, many foreigners are now discovering new exciting options to purchase their Mexican ocean front homes. PLEASE READ Financing Options.
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2. Can I use my own bank to carry the mortgage?
Yes, you can finance, raise your capital from any bank in the US or Canada that will allow for such operation. In other words, here in Mexico there are no restrictions, it is basically the banks who are processing the loans who will advise to you whether or not they have a program to finance property, in another country. I will send you another email with an introduction to multi national bank here in mexico, who has just purchased a chain of banks up in the USA. They do offer mortgaging to americans for properties down here in Mexico, using the Mexican property asset as collateral. read up, and forward your quesitons.
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3. Is there a minimum down payment that is required if I was to use a Mexican bank?
That depends on which financial institution you decide to work with. It is still not very common for Mexican Banks to offer loans to Mexican foreigners. Bancomer mentioned above does have a new program, and I only imagine that this tendency will continue with the other 4 major banks of mexico. Bancomer is requiring 30% down , they will finance the remaining 70%.
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