As Mexico properties are being discovered by the world, the demand is bringing record numbers of investors and buyers to this market. Some are coming with their knowledge and their monies which they reaped from their wise investments in other parts of the world. More and more, savvy real estate investors are broadening their sight into newly developing and emerging markets. In this new century with the more open global market community, international investing does not seem as adventurous as the years before. For many real estate experts throughout US, Canada and UK, Mexico real estate is a logical top option.
The Mexican real estate markets are not as mature as those from Canada, UK, or the USA. The same regulations do not apply here in Mexico as in our home countries. Some people see this as a glass half empty, others, as a glass half full. Less regulation, more risk, but much larger potential for greater returns!
To capitalize on the beneficial side of this coin, remember the following tips:
- Do your homework
- Surround yourself with qualified people
- Manage the risk and reap the rewards
Over the past 10 years, the preconstruction process has changed as more developers have appeared. In the early years, various local developers were the only options available to the early investor pioneers. Soon, regional and national players started investing into raw plots of land seeing the signs that large numbers of international buyers were flocking to Mexico’s beaches. Today, we are in the first phase of large multi-national developers placing their signatures in specific neighborhoods throughout Mexico.
You, the investor, are in a phase of investment here in Mexico which is very unique, in which you can find a variety of options.
Traditional Process to Reserve a Preconstruction Condo:
- $10,000 USD is paid to reserve a specific unit.
- 30% – 50% of the total condo unit value is paid to the developer with signatures of the promissory contracts.
- Monthly payments to the developer are made by the buyer during the construction period.
- Up to 90% of the unit is paid with the physical delivery of the condo unit.
- The remaining 10% is paid with the legal delivery of the condo.
The price might increase a few percentage points as the larger developers had greater cash flows, but this would be reflected back on the final price of the unit. Such payment schedules might include the following:
Please note the above payment schedules are all guidelines; we can find a variety of payment plan options and developers throughout the market, and while some have conditions set in stone, others are flexible in negotiation.
If you want to learn more about Mexico real estate, the buying process and much more specialized contents please visit our website or download some of our exclusive e-books. Our company has a decade long experience, and has helped thousands of satisfied customers find the home of their dreams in Mexico.
And remember, here at Top Mexico Real Estate….
We Make It Happen!