The Mexico housing market is on the rise opening up lots of opportunities for local and foreign investors. Its properties are expected to increase in value and serve as extra sources of income for years to come. That is why many people are now interested in making their investments in Mexican real estate. However, there are a few things you should always watch out for when snapping up properties in this country. And our step-by-step first-time home buyingguide will walk you through all of them.
10 steps for first-time home buyers
1) Create a 5-year plan
On average, it takes 5 years to get the return on property investment in Mexico. Given that, you should plan ahead without expecting your money back for quite a long period. This is one of the most crucialsteps for first-time home buyerssince it helps you avoid rough times.
2) Find your safe haven
If you are looking to buy a house in one of the Mexican restricted zones, it’s recommended to carry out property value research. Make sure that it is not expected to show depreciation in the nearest future. Thus, you will be able to protect your assets before investing in real estate.
3) Use home inspection services
Technically, Mexican building codes leave a lot to be desired – no matter whether it’s about residential or commercial properties. For this reason, it’s of utmost importance to pay attention to the condition of your would-be living place. It’s better to make use of professional property inspection services to find out the full scope of repairs before signing the agreement of purchase.
4) Talk to the neighbors
Your step-by-step first-time home buyingprocess should begin with having a word with your future neighbors. That is the easiest way to find out whether a neighborhood is the best place to settle in for you.
5) Make sure all utility services are provided
Is there anything more annoying than frequent power outages and ‘No running water’ signs? Indeed, some Mexican communities fail to provide all of the utility services. With that in mind, checking out supplies in your area will always be a wise thing to do.
6) Do not underestimate the administration service
Poor neighborhood conditions may adversely affect your well-being. If rundown housing and piles of litter are not what you expect from your investments, the high level of administration service should be the main point of your step-by-step first-time home buyingguide.
7) Figure out how much you are required to pay in fees
All homeowners have to pay HOA fees for property maintenance and improvement. To avoid being caught unawares, it’s better to know their amount in advance.
8) Take your property tax into account
Although they are much lower than those in other countries, Mexican annual real estate taxes (known as predial) should always be paid on time. Thus, you will avoid late payment penalties.
9) Get hold of the title as soon as possible
Once the property purchase agreement is signed, your next step is ownership transfer. Never put your deed registration on the back burner.
10) Consult with a real estate agent
Last but not least, it’s recommended to hire an experienced real estate agent who will help you with your step-by-step first-time home buyingprocess.
At Baja Properties, we believe this guide will give you necessary pointers so that you make your property investment decisions easier.