Mexico is an amazing destination to buy a vacation home. It’s an ideal place to escape those long northern winters, build beautiful memories with friends and family and be able to purchase amazing beachfront or colonial properties at very competitive price.
For decades, Mexico has been a top destination for North Americans to spend their holidays or even retire to. Investing in a vacation property can save you thousands of dollars during your vacation, and at the same time it is an investment that can also generate an extra income if you decide to rent it out to other vacationers.
Even though buying a property in Mexico is a wise and solid investment, here is a list of 5 mistakes to avoid when buying a vacation property in Mexico
5 Mistakes to Avoid When Buying a Vacation Property in Mexico:Â Buy on ImpulseÂ
After spending a wonderful week in a nice vacation rental in the area, and while chatting with the owner you learn that the same property is for sale. Infatuated with the home, you decide to buy it without evaluating the pros and cons.
Why is it a mistake?
Buying a property without learning more about the local real estate market is like marrying the first attractive person you meet on the street; it might have the looks but no soul and you will be stuck in a bad relationship for quite a while.
If you really like the property, ask around find a trustworthy real estate agent and force yourself to see other similar priced properties, visit other areas and learn more about the neighborhood and the complex where the property is located. Try to gather as much information before purchasing your dream home.
5 Mistakes to Avoid When Buying a Vacation Property in Mexico:Â Buy a Home in an Area You Are Not Familiar With
You decide to purchase a vacation property but do not know anything about the area. You find a place you like and purchase it anyways, only to later find is completely the wrong property for you.
Why is it a mistake?
Seeing a couple of pictures or a nice 360º video of the property will never compare to visit the actual subdivision, meeting the neighbors, visiting during different times of the day, etc. Try to learn as much about the neighborhood, community or subdivision before taking the plunge.
Even the most perfect areas will have special characteristics that might not agree with your lifestyle. A downtown property might have parking limitations, a subdivision might be too far from shops or stores, a family with small children might find themselves near a noisy club, etc.
Your real estate agent is a great source of information not only about the physical properties but also about the areas and neighborhoods. Share with your real estate agent your wants, needs and hobbies so together you can find the perfect property and right fit for you.
5 Mistakes to Avoid When Buying a Vacation Property in Mexico:Â Forgetting or Ignoring Extra Costs
After visiting and researching several properties you feel ready to purchase the house of your dreams. You find the perfect property but it is a bit above your budget. You purchase it anyways.
Why is it a mistake?
Pushing yourself to buy a property above your budget without considering extra expenses can be a headache and cost you a lot of money in the long run. Remember that when buying a vacation property there are additional expenses and things that need to be take care of. You might have to pay monthly maintenance fees, insurance, cleaning fees, HOA fees, property taxes, home repairs, hurricane proofing, Fideicomiso fees, etc.
Researching the real costs of these added expenses will let you plan ahead and prepare a real budget that include all of these and extra costs. Another expense you have to consider is rental and property management if you decide to rent the property. But don’t worry, working with a trusted real estate agent and a little bit of planning you will find the right property for you and your family.
5 Mistakes to Avoid When Buying a Vacation Property in Mexico:Â Buy in a Very Popular Area or Buying in the Middle of Nowhere
Buying a property in the most popular neighborhood, or purchasing a home you love in the middle of nowhere can be tempting. But buying a property on either extreme can be a bad decision in the long run.
Why is it a mistake?
If you go for the most popular neighborhood you might be paying much more for a property that could be bought somewhere else for a cheaper price. Also, popular neighborhoods tend to have bigger crowds and noisy areas. As an owner looking to rent your property you will be competing with a larger amount of real estate options and that could force you to lower the price in order to get clients.
On the other hand purchasing the house of your dreams in the middle of nowhere might get you a better deal in a quieter area, but the commuting to go to the shopping mall or for a nice dinner in the city can be off-putting. Also, people looking to rent a property might not like the long commutes, isolation or lack of services nearby.
5 Mistakes to Avoid When Buying a Vacation Property in Mexico: Not Discussing Your Long Term Goals
You know you want to own a condo near the beach, you go through the buying process, furnish your property and find yourself only visiting a couple of times.
Why is it a mistake?
Owning a vacation property anywhere can be costly. You need to think about your long term goals. What do you want to use the property for? Will this be a vacation property that you will rent out when you are not using it? Will your Mexico property be your personal vacation home over the next couple years until you are able to retire here?
Discuss with your family and your real estate agent your long term property goals. This will help your Mexico agent find the right property that will see you and your family through to the future.
If you are looking for the perfect vacation home in Mexico, here at Top Mexico Real Estate we are committed to be there with you in every step of the process. From finding the right property to signing the deed, our agents will be there to answer all your questions.
For over a decade, we have been helping foreigners become homeowners in Mexico. We have the credentials, the expertise and the expat life insight to help you.
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