How to invest in real estate in Mexico?
Currently, the search for economic independence remains one of the biggest challenges that can be encountered Thinking about gaining this independence without depending on growth in a fixed job or territory could be a challenge that sounds almost impossible, however, investing your money is one way to find this independence. There are many different ways to invest your capital, enter the world of real estate is one them. With a proper plan, it can be a very effective way to quickly increase an even not very large amount of money.
What does it mean to invest in real estate?
It is the series of steps or the plan that is carried out to invest capital in real estate with the objective of multiplying that investment or generating more money that helps achieve that financial freedom. It is a way to put your money to work for you.
There are many forms of investment today, but doing it in real estate is one of the most reliable ways to do it. One of the main reasons why it is a safe way to move your earnings are the following:
Different investment options. Beyond mortgage loans, there may be different types of properties in an investment portfolio, from land, apartments, housing developments, commercial, corporate premises, etc.
Investing in real estate is safe and flexible since it is a way to protect or take care of your money, the property works as a backup to apply for mortgage loans.
Investing in real estate is also making your money work for you, the surplus value that real estate acquires over time is a way for your income to be concentrated in a reliable place that will also increase over time without you having to do anything for that to happen, it is a matter of time and planning.
As the first steps for your planning when investing in real estate is to consider the place or territory in which you will do it. In this particular article we are going to talk about the series of considerations that you should take if your plan is to invest in Mexican territory if you are from the same country or if you are a foreigner.
The Mexican Foreign Investment Law allows you as a Canadian, American or European (foreigner) to make a property purchase process within restricted zones legally and safely. This law allows to acquire property in a restricted zone in two ways: Creating a Mexican corporation in which two shareholders are required, one of them must have Mexican tax ID for which it would be necessary to obtain a permanent residence visa as long as a report is made monthly and annual taxes. Another option is through a bank trust, this means that a bank is contracted on behalf of the buyer to have the property title and the bank maintains those rights.
On the other hand, there is also the alternative of acquiring property through a corporation if the objective is to use this property for commercial purposes.
Once the way by which it will be invested in Mexican territory is decided, the type of purchase to be made is chosen, this can be a resale acquiring a property from someone else that is ready to be occupied or in pre construction that is also known as pre-sale and the purchase is made through the developer and that money is used for the construction and development of the property.
As for the purchase process, the first part is usually about setting aside or reserving the property followed by a purchase offer where payment agreements are discussed to carry out the next step, which is the creation of contracts and legal purchase agreements. Finally, the Property Title is acquired in which the right of ownership is transferred to the buyer and it is deeded and written with a notary.
It is always advisable to evaluate all your options taking into account the territory, the capital gain, the objective of the investment and above all to carry out this entire process with the advice of a lawyer who guides all the legal aspects of the purchase so that the title of property is carried out clearly to the point where the registration of the title before the public registry already exists.
Investing in a Mexican real estate can be a smart decision for your finances and carried out by a simple and practical process if you have the necessary information and tools to do it.