Some buyers may be aware of the fact that it is now possible to buy a Playa del Carmen home or condo through mortgage directly from a bank in Mexico. While this presents an excellent opportunity and another viable option to consider, buyers will need to ensure that they are prepared for this process, which is longer with more paperwork involved than what buyers are used to from the U.S. or Canada.
If buying a home in Playa del Carmen through a Mexico mortgage, buyers should consider the following items carefully:
Credit Scores. Mexican restrictions are tighter especially than in the U.S., and even than in Canada. Higher credit scores will be required, and more documentation as evidence.
Property Qualification. These tighter restrictions are also true of property qualifications. Buyers interested should ask an experienced broker to give them information or refer them to an expert on the issue so they are familiar with what kind of properties they can consider. Some Playa del Carmen home and condos are sold pre-qualified for a mortgage, making the process easier.
Rental Market History vs. Monthly Payments and Expenses. Investors using this tool as away to make a property investment will need to consider various factors into their calculations. Interest rates, and therefore monthly payments, tend to be higher in Mexico. There are cases in Playa del Carmen where buyers have generated enough return from renting out their property to cover monthly payments and other property expenses; however, before counting on this kind of income, buyers will want to do their research and make sure they are moving safely.
Property Management. If a rental management company has been set up or designated for a certain development, this can heavily influence the success of income from vacation rentals. Investors should investigate the reputation of the responsible company, and how it intends to find renters.
Property Expenses. Whether treating a property as an investment, or simply as a future retirement location, buyers considering a mortgage will want to make sure they have considered both the total monthly payments as well as monthly HOA fees (home owners' association), which can be very low, very high or anywhere in between. Higher fees, however, may bring better rental service. Property taxes tend to be very low, but should also be counted.
Payment Options. Especially in the case where the owner will not be in Playa del Carmen all year round, they will want to be sure that they know when the payments are due, and how they can be made. For those who can open a Mexican bank account (with an FM2 immigration document, given to residents or a Mexican business) can arrange automatic withdrawal.
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