Real Estate in Mexico?

Question

I would like to know the protocol involved in purchasing real estate in Mexico, specifically in Mexico city or surrounding area. Which colonias offer the best value and which should you stay away from. Can a Canadian or American own real estate here.

Answer 1

Hi there. A real state broker is the best way to find a home for you. Major american firms like Century 21, and Remax www.remax.com.mx have branches in Mexico City. You can also check www.metroscubicos.com.mx , a leading real state website which is a good resource for you to check on prices and locations. The protocol is just like in the U.S., you find a home you like and you make a formal offer in written. You can expect to bargain between 4% up to 10% of the face value of the property. Houses are substantially more expensive than appartments. Colonias that offer value? Well, that depends on your budget. Mexico City has seen an impressive price boom in real state since the early 2000's as a result of credit release (it was difficult to obtain credit before) Some of the colonias that are attractive for foreigners include Polanco, Condesa, Santa Fe, Lomas de Chapultepec, Tecamachalco, La Herradura, El Pedregal , Anzures, Bosques de las Lomas. A price for a 3 bedroom house in a high end Colonia starts from US $500,000 while in a middle class colonia starts from US $190,000 and there are many low income neighborhoods that start from $50,000 but you really don't want to live there. As for property there are a few restrictions for a foreigner to own a property but it can be made through a trust or through a Mexican corporation, again, a broker can be the best advise since Mexican laws are complicated to do it on your own. Good luck with your purchase