Investing in real estate in Mexico? Share your experience.
Hi! I am an investor in real estate in Tulum, Mexico, and currently a partner of Riviera Maya Property Consultants, and innovative real estate/ architectural firm in Tulum.
We started off in Mexico after having moved from London, and we knew nothing!
Now, after having spent a few years building, investing and establishing a real estate company, I am glad to answer questions and to share experiences.
Waiting to hear from you.
Ruta
[MOD EDIT: LINK REMOVED]
Hello Ruta,
I am from Monterrey, Mexico and I am interested in flipping houses! If you have any tips on how to get started please let me know!
Thanks
Fernando
Hello Ruta,
I am definitely interested in purchasing condos or tourist beach property as an investment vehicle.
Would love to connect.
Thank You.
Hi Ruta,
What are your thoughts on the stability of the Mexican government? I have considered investing in Mexico but the thing that keeps me away is fear that the people of Mexico could vote in a socialist government with anti foreigner ownership laws.
@David Mirza that's something that caught my attention, too. When it comes to investing- not necessarily real estate- I've heard of instances in other socialist (for a lack of a better term) governments where the governments will try to impress upon potential investors that there's serious money to be made and that the government will let the business operators take their principal and then some out once the money is made only for that government to pull the ol' switcheroo on them.
It's certainly an exotic venture, that's for sure...so don't let me try to dissuade you...it's just something I've noticed.
Originally posted by @Ruta Uleviciute:
Hi! I am an investor in real estate in Tulum, Mexico, and currently a partner of Riviera Maya Property Consultants, and innovative real estate/ architectural firm in Tulum.
We started off in Mexico after having moved from London, and we knew nothing!
Now, after having spent a few years building, investing and establishing a real estate company, I am glad to answer questions and to share experiences.
Waiting to hear from you.
Ruta
[MOD EDIT: LINK REMOVED]
I would be interested in hearing about your experience in helping foreigners invest in mexico. How do you handle the legal process? What part of mexico do you feel is best for real estate investing (rentals - duplex - small appartments, etc)?
I would also be curious to know how the land lease situation works in Mexico because I don't think you are aloud to own the property unless you are a Mexican citizen. I think it's a land lease, or something along those lines. Does anyone have experience with that? That worries me and has always made me shy away from considering it as an option.
Hi Abhijit,
Sure, you can email me directly at ruta at rivieramayapropertyconsultants dot com, and we can discuss the best options for you.
Best,
Ruta
Originally posted by @Abhijit Joshi:Hello Ruta,
I am definitely interested in purchasing condos or tourist beach property as an investment vehicle.
Would love to connect.
Thank You.
Originally posted by @Francisco Cimon:
Originally posted by @Ruta Uleviciute:Hi! I am an investor in real estate in Tulum, Mexico, and currently a partner of Riviera Maya Property Consultants, and innovative real estate/ architectural firm in Tulum.
We started off in Mexico after having moved from London, and we knew nothing!
Now, after having spent a few years building, investing and establishing a real estate company, I am glad to answer questions and to share experiences.
Waiting to hear from you.
Ruta
[MOD EDIT: LINK REMOVED]
I would be interested in hearing about your experience in helping foreigners invest in mexico. How do you handle the legal process? What part of mexico do you feel is best for real estate investing (rentals - duplex - small appartments, etc)?
Hi Francisco,
Basically all the clients that invest with us in Tulum are foreigners. As a foreigner buying land in Mexico within 50km (32 miles) from the coastline, you will use the means of a bank trust (fideicomiso) or you may buy property by establishing a Mexican corporation. A fideicomiso is a real estate trust where the bank (trustee) holds the trust deed for the purchaser (beneficiary). You can choose your bank: Scotia Bank, HSBC, Banamex (Citigroup), Santander, etc. The bank acts as the Trustee, and you are the Beneficiary of the trust. You maintain complete control over the trust, and may sell, lease, mortgage, and pass the property on to your heirs. The trust is the beneficiary's property. Fideicomiso is equivalent to a Living Trust in the US. You can contact us directly through our company website: rivieramayapropertyconsultants dot com
Originally posted by @Ruta Uleviciute:
Originally posted by @Francisco Cimon:Originally posted by @Ruta Uleviciute:
Hi! I am an investor in real estate in Tulum, Mexico, and currently a partner of Riviera Maya Property Consultants, and innovative real estate/ architectural firm in Tulum.
We started off in Mexico after having moved from London, and we knew nothing!
Now, after having spent a few years building, investing and establishing a real estate company, I am glad to answer questions and to share experiences.
Waiting to hear from you.
Ruta
[MOD EDIT: LINK REMOVED]
I would be interested in hearing about your experience in helping foreigners invest in mexico. How do you handle the legal process? What part of mexico do you feel is best for real estate investing (rentals - duplex - small appartments, etc)?
Hi Cara,
You can purchase property in Mexico through a bank trust. It's the same as direct ownership, it just takes a little more paperwork.
Originally posted by @Cara Lonsdale:
I would also be curious to know how the land lease situation works in Mexico because I don't think you are aloud to own the property unless you are a Mexican citizen. I think it's a land lease, or something along those lines. Does anyone have experience with that? That worries me and has always made me shy away from considering it as an option.
I have seen purchase and rental prices in several non-tourist areas in Mexico, and the rents are way too low to make them worthwhile as rental properties. I don't know how flipping might work or about tourist areas.
Hi Eric,
We operate in Tulum, the fastest growing town in Latin America, which has the most beautiful beaches, climate and atmosphere. You can generally make about 10-15% per year from your initial investment.
Originally posted by @Eric James:
I have seen purchase and rental prices in several non-tourist areas in Mexico, and the rents are way too low to make them worthwhile as rental properties. I don't know how flipping might work or about tourist areas.
Good day Ruta,
I lived in Mexico for over 10 years and I did know that you needed a trust (fideicomiso) as a foreigner to buy land/property in mexico (close to the coastline). From what I understand (and please tell me if I am wrong), the fees involved in purchasing a property/land (because you have to go through a trust) are high. And you have to pay extra (high) fees as a foreigner when you sell your land/property.
Taking into account these fees, how are you making your rental properties "profitable" at 15-20%? Are the rents very high compared to the prices of the rental properties?
Also... where do you clients get their financing? I know that it is very difficult to get a loan from a bank in mexico and the interest rates are VERY high (8% to 12%)...
@Francisco Cimon - the numbers we have been looking at recently seem to agree. We are seeing only that high of a return if the property is purchased with cash and some high occupancy rates are assumed (80%+). I would love to be wrong though as we would prefer to use leverage!
On the positive side, it does look like this level of occupancy has been achieved for the last several years: http://area-international.com/riviera-maya-occupancy-information/2017.html/2016
Anthony,
Keep in mind that the current situation is many states (all?) of mexico is very unstable (for the lack of governance/security issues. Things could go south very quickly for Cancun/Playa del Carmen as a tourist destination.
And I dont speak as a "cnn news watcher" but as someone who lived in the country for over 10 years...
The Riviera Maya and Playa del Carmen in particular are pretty safe. There are 4 levels of police with a local presence: a special tourist police exclusively for tourists (a unique concept), the municipal police, the state police and the federal police. The army is there too to top it off!
@Ruta Uleviciute Are you able to finance projects in Mexico through hard money lenders? How does financing works there? I would assume that interest rates are much higher due to higher inflation rates and the currency being less stable.
@Ruta Uleviciute
We are purchasing a home in Mexico to live in as our retirement home and to rent two airBNB units from. It needs a a lot of work but is in a great location in The central area of Oaxaca city. The owner accepted our offer and will carry the loan. Now we need to do inspections, get rehabilitation quotes, sign documents, transfer funds. What sort of delays, frustrations dangers and culture shock should we prepare for?
Hi @Gary Onstad, how did the purchase process go for you?
Quote from @Daniele Sica:
There are many possibility to buy anything in Mexico as foreign. You pay FIDEOCOMMISIO if you buy 100km close to the beach and you get a title for 50 years renewed after no problem. Find the right attorney we use all time Mexlaw.com
As an agent from canada we easily help Clients to buy land and build. There is a trust that you do with bank to secure the asset and there is a Notary that will function as vigilantes that all is clear before you sign any document.
We also help clients for pre construction purchase where they can save lots of dollars and have the possibility to get good cash flow. as you find this info connected and you feel ok with the risk involve, you ready to go. Information always help with due diligence.
Would love to connect with any one need to know more.
ciao