After falling in love with Mexico, the breathtaking views, the delicious food, the friendliness of its people you have decided on buying a home in Mexico, these are the top 8 questions you should ask:
1.What are my closing costs?
When buying a home in Mexico, the closing costs are higher than what most Americans and Canadians are accustomed to from their home countries. On the other hand, the annual property taxes are substantially less.
So, although we do pay more at the onslaught, the recovery in property tax savings is fast.
Also, after about two years, the savings start to accumulate. However, understanding the initial closing cost expenses is vital. Knowing and understanding them is very important to organize and prepare for the budgets properly.
Ask your agent for examples of these expenses so that you can compare a real estate investment of various price points. Better yet, if your agent can give you an in-depth breakdown of the line items. Different line items are fixed regardless of the property’s price point. However, others are variables depending on the investment amount.
2. What accessories and/or furniture are included with the list price or asking price?
When reviewing properties with various developer options, ask for a copy of the items included in the price. Items such as mini split air conditioning units, stove and oven, and refrigerator are often part of the developers’ package.
Developers might throw in other items like beach club passes or golf club memberships. But as some developers are competing or implementing strategies to lock in within a specific price bracket, you might find some units with a skeleton package without any accessories offered.
The list of items to be included in the final price can be added to your initial offer to purchase. That is to document the details and properly include these items in the Promissory contracts.
When buying a home in Mexico, a resale property from a developer, the list of items to be included is even more important. In many cases, the seller is not only selling the unit with the essential accessories such as the air conditioning units, stove, and oven. But they are also including dining room tables, beds, sofa, equipment for the pool maintenance, and other such furniture items.
A complete list of things should already be organized and provided by the listing agent (the agent representing the seller), and your buyer’s representative should request this list so that you can analyze the overall investment options.
3. What other projects and track records does the developer possess?
You need to understand the history and results that developers have delivered in their past projects. Understanding if the developer has an organized administrative team punctually delivering a finished unit.
Also, delivering the common areas punctually and providing the documentation for the legal delivery. All of these items affect your investment and peace of mind.
Evidently, if you plan to begin renting the unit for revenue, you want to receive the unit as soon as possible to find renters. Researching the quality of the previously delivered buildings will also give you a bit of understanding of the quality and workmanship the developer will most likely provide in his future projects.
Listening to previous owners’ feedback on customer service and responses from the developers to inquiries is also important to predict the type of service you will receive in your new property.
4. What are the key milestone dates when buying a home in Mexico?
Three significant dates are the basis of all real estate transactions.
Date of Physical Delivery:
It is the date on which the seller will give the keys to the property along with the possession. With possession, you, as the new owner, can begin living within and can rent out the unit. You also will be responsible for starting to pay HOA fees, electricity, utilities, and expenses regarding the property.
Date of Payments:
These include reservation payments, first deposits, second deposits, and any type of payments agreed upon, including the final fees established for the physical and legal delivery.
Date of Legal Delivery:
On this date, the seller and buyer sign the documentation for legally transferring possession of the property to the buyer.
This will occur with the administration and approval of the Mexican notary public. This event typically requires the completion of 100% of the payments. It usually needs the seller to have completed all documentation required by the law, such as the Regimen of Condominium and manifestation of completion of construction.
5. What are the zoning laws for land?
If you are preparing or planning to purchase a chunk of land, it is imperative to understand what type of buildings you can construct. The listing agent should have copies of the zoning regulations that pertain to the property they are selling. Your buyer’s representative should be able to ask the listing agent for copies so that you and your agent are able to read the regulations and allowances for your ideas or dreams of your construction projects. If the property is within a condo association, you should also request a copy of this entity’s building restrictions and regulations.
6. Are there any HOA bylaws and finances?
Again, suppose your property of interest is within a Condominium Regime. In that case, the listing agent should have copies of this document so that you, as the new member, can read over the regulations in this entity.
Being able to review the finances also gives you insight into future expected expenses. Review the balance in the emergency fund and ask questions to both your buyer’s representative and the listing agent.
7. What services and entertainment are around the neighborhood?
Depending on your habits and hobbies, share this information with your buyer’s representative to find ideal neighborhoods for your visit.
Do you play tennis or pickleball?
Do you love swimming?
Is there a fitness center nearby?
Do you like walking on the beach, biking, and visiting cafes and bakeries?
Where is the nearest hospital or emergency clinic in case of unexpected heart problems?
Where are the nearest park and grocery stores?
You should define these items first and list them in order of priority. You should share the list with your buyer’s representative so that they can help you rake the city to find the best possible neighborhood and then the best possible property to best fit your lifestyle and hobbies.
8. Rental Restrictions.
Many Americans and Canadians plan to rent their new Mexican property to vacationers until they are in full retirement. Once in full retirement, the plan is for them to move to Mexico full-time and begin visiting their home state on specific events or visits. Still, their primary residency would be in their new Mexican property.
Understanding the regulations and restrictions of renting a property within a building, a condo association, or city regulations. Ask for these definitions from your Buyers Representative. They will ask the listing agent for them.
Contact one of our Top Mexico Real Estate represntatives to find out more about the property of your dreams and remember...We make it happen!