As Mexico oceanfront properties become 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 such as the Las Vegas and Florida real estate markets Now, the savvy real estate investors, with the slow down and correction of the American markets, are broadening their sites into new developing and rising markets In this new century with the more open global market community, international investing does not seem that adventurous as the years before to many of the local real estate experts throughout US, Canada and UK Mexico waterfront real estate is a logical top option.
Here in Mexico, the markets are not as mature as those from Canada, UK, nor of the USA.
The same regulations do not apply here in Mexico as those from our home countries.
Some people see this as a half empty glass, others, as a half full glass.
Less regulation, more risk, but much larger potential for greater returns!
*Do your homework
*Surround yourself with qualified people
*Manage the risk and reap the rewards
Over the past 10 years, the Mexico preconstruction condo process has changed as more developers have appeared on the oceanfronts In the early years, various local developers were the
options available to the early international investor pioneers here in Mexico Soon, regional
and national players started investing into raw plots of land seeing the signs that large
numbers of international end users were flocking to the Mexico Beaches Today, we are in
phase one of large multi national developers placing their footprint signatures along specific
neighborhoods throughout Mexico You the investor, are in a phase of investment here in Mexico
very unique, in that you can find a variety of Mexico Preconstruction condo options.
TRADITIONAL PROCESS TO RESERVE A MEXICO PRECONSTRUCTION CONDO
1) $10,000 usd to reserve a specific unit
2) 30% – 50% of the total condo unit value is paid to the developer with signatures of the promissory contracts
3) monthly payments to the developer are realized by the buyer during the construction period
4) upto 90% of the unit is paid with the physical delivery of the Mexico condo unit
5) the remaining 10% is paid with the legal delivery of the condo
As outlined above, soon, regional and national players started to give more purchasing options The price might increase a few percentage points as the larger developers had greater cash flows, but this would be reflected back into the final price of the unit such payment schedules might include:
NEW PAYMENT PROCESS
1) $10,000 – $20,000 usd to reserve
2) 30% – 40% of the total condo unit value paid to the developer with signatures of the promissory contracts
3) payments made on construction milestones (first floor complete 20% payment, windows doors inserted, 15% ej.)
4) upto 90% of the unit is paid with the physical delivery of the Mexico Condo unit
5) the remaining 10% is paid with the legal delivery of the condo
Finally, with the introducton of several American and European mega developers, their large deep pockets have opened
up the market to more accesible payment schedules But as we know, risk controls cost money, and these are transferred
into the price per square meter.
MULTI NATIONAL DEVELOPER PAYMENT PROCESS
1) $15,000 – $20,000 usd to reserve
2) 30% of the totla condo unit value paid to the developer, and sometimes to escrow
3) no payment needed during the construction period
4) the remaining 70% is paid with the legal and physical delivery of the Mexico preconstruction condo.
5) some developers, will then offer in – house financing to kick in at this point offering from
5 years upto 20 year financing
The above payment schedules are all guidelines and we can find a variety of payment plan options, and a variety of developers
throughout Mexico Some have conditions set in stone, others are flexible in negotiation
