Financing
Your Mexican Property Investment
Historically
and in many cases today, most property/real-estate deals in Mexico
are cash only. Mexican Banks are now beginning to offer mortgage
products for the purchase of real-estate in Mexico, although 30-40%
deposits are required and interest rates are not as attractive as
those in the US, Canada and Europe.
There are some
banks in the US who are now offering mortgages on Mexican Property,
but they are usually offered on the back of equity built up in a
property in the USA and the rates are higher on the additional loan
amount, to reflect the additional risk. Many Americans HAVE mortgaged
a house in Mexico using this financial vehicle so it is possible.
Financing inside
Mexico is still difficult and relatively expensive, so if you plan
to buy real-estate in Mexico you will be well advised to have your
own foreign funding available; either through an equity-release
scheme or other fund. Some people who are planning to retire to
Mexico will sell their house in their home country and use the proceeds
to finance property in Mexico; those who want to keep a 'base back
home' may release equity from their existing home, rent it out,
and use the dual proceeds to fund their retirement home in Mexico.
It's important
to think carefully beforehand about how you are going to finance
your property in Mexico. An Estate Agent in Mexico may be able to
advise you, and some even have connections with financial institutions
in the USA who can proffer solutions depending on your personal
circumstances.
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