{"id":820,"date":"2009-12-10T00:37:56","date_gmt":"2009-12-10T05:37:56","guid":{"rendered":"https:\/\/www.topmexicorealestate.com\/temp-blog\/?p=820"},"modified":"2009-12-10T00:41:54","modified_gmt":"2009-12-10T05:41:54","slug":"mexico-real-estate-mortgages-are-keeping-the-market-moving","status":"publish","type":"post","link":"https:\/\/www.topmexicorealestate.com\/blog\/2009\/12\/mexico-real-estate-mortgages-are-keeping-the-market-moving\/","title":{"rendered":"Mexico real estate Mortgages are Keeping the Market Moving"},"content":{"rendered":"

The Mexico real estate <\/a>market along the tourist zones have been adjusting to the\u00c2\u00a0lower amount\u00c2\u00a0of buyers present during this past year.\u00c2\u00a0 Another adjustment that we have noticed is where the capital is being sourced from previous years when purchasing Mexico real estate.\u00c2\u00a0 The majority of monies before were financed by using assets from properties in the buyer’s home country, but now with some favorable adjustments in the interest rates here in Mexico, mortgages against the Mexican property<\/a> is now becoming more feasible.\u00c2\u00a0 More complicated, more weeks required, and more patience are other factors that need to be included to the equation if using this financing option.<\/p>\n

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\u00c2\u00a0This past week\u00c2\u00a0some good friends of ours, a couple from\u00c2\u00a0Canada purchased a beautiful Mexico Condo<\/a> on the beach.\u00c2\u00a0 The purchase was a little different from the typical real estate sale by non-Mexicans in the fact that the money for the purchase was obtained by Mexico financing<\/a>.\u00c2\u00a0 Our Mexico real estate team had found a fantastic deal on an oceanfront\u00c2\u00a0condo for the buyers and then we went to work\u00c2\u00a0to help the Canadians obtain capital at some interesting\u00c2\u00a0interest rates.\u00c2\u00a0\u00c2\u00a0In the past 3 months, interest rates\u00c2\u00a0has dropped at some quite interesting figures.\u00c2\u00a0 And for\u00c2\u00a0many Canadians, given the strong Canadian Dollar rally that has occurred in the fall of 2009, it makes\u00c2\u00a0a lot of sense for some households to invest and purchase in such a market.\u00c2\u00a0 Our friends, have developed a very interesting strategy and have\u00c2\u00a0purchased properties here in the market, have been able to\u00c2\u00a0rent out the units at rates that cover the monthly mortgage expenses, property taxes, and other fixed expenses on holding the Mexico property.\u00c2\u00a0 “by using the\u00c2\u00a0real estate\u00c2\u00a0in Mexico\u00c2\u00a0as collateral, I did not have to tie up or mortgage out against my properties in Canada.\u00c2\u00a0 That caught my attention right away.”\u00c2\u00a0 \u00c2\u00a0<\/p>\n

As the money becomes tighter in the northern markets, the option of Mexico mortgages<\/a>\u00c2\u00a0is being utilized on a greater basis.\u00c2\u00a0\u00c2\u00a0\u00c2\u00a0Before, when no credits were available for either the Mexican buyer or the non-Mexicans, money would be raised from alternative sources.\u00c2\u00a0\u00c2\u00a0The Mexican national would either need to purchase properties with cash, or obtain the capital from close\u00c2\u00a0family\u00c2\u00a0or close friends.\u00c2\u00a0 Non-Mexicans would also resort to family and friends,\u00c2\u00a0and with low interest rates available, many even obtained a personal loan from their home country assets, and use the money for their investment here in the Mexico real estate market.\u00c2\u00a0 “I knew the market was much slower in 2009 and that I would find some very good deals,\u00c2\u00a0the TOP Mexico Real Estate agents<\/a>\u00c2\u00a0found me an incredible deal way below the market value.\u00c2\u00a0 I just need to hold on for a couple of years and feel confident that the overall market will come back on the Mexican Caribbean which\u00c2\u00a0should give me\u00c2\u00a0double digit returns”<\/p>\n

\u00c2\u00a0The process of Mexico mortgages is a little more complicated and a few more requirements are requested than your typical Mexico real estate transaction.\u00c2\u00a0 So prepare for various more weeks of process than a typical 40 day purchase process (typical amount of days required for non-Mexicans when purchasing properties in the Mexico restricted zone).\u00c2\u00a0 One of the first requirements are for the buyer to be qualified.\u00c2\u00a0 The Mexico bank will normally require a FICO score which, depending on the bank, may require at least a 690 score.\u00c2\u00a0 During the Mexico financing\u00c2\u00a0process, the bank may also require documents such as your last 3 month bank statements, last annual tax return, and last employment payment receipt.\u00c2\u00a0 On the side of the Mexico property,\u00c2\u00a0 the bank will need and require a catastral number on the property.\u00c2\u00a0 For condominiums in pre construction, this will eliminate many projects for qualification\u00c2\u00a0unless the developers have obtained their condominium regimen beforehand.\u00c2\u00a0\u00c2\u00a0 Insurance\u00c2\u00a0requirements are also a necessity and this may cause delays\u00c2\u00a0in obtaining\u00c2\u00a0copies or to ensure minimum amounts insured are protected for the financed\u00c2\u00a0property.<\/p>\n

As we helped our friends obtain\u00c2\u00a0their condo by using financing from a Mexican bank, we are realizing that\u00c2\u00a0we are on the forefront of the introduction of new\u00c2\u00a0solution for millions of Americans and Canadians to purchase a Mexico real estate property.\u00c2\u00a0 The process though is much more complex, requires various documentation from both the buyer and from the property, but if you and the seller have the patience and extra weeks required to complete the transaction,\u00c2\u00a0the benefits can be quite attractive.\u00c2\u00a0 Call us if you want more information or have further questions on how you can invest\u00c2\u00a0with a strategy of\u00c2\u00a0leveraging off of your Mexico real estate<\/a>.<\/p>\n

Thomas Lloyd <\/strong>graduated from Purdue University Krannert School of Management with a degree in Management\/Financial Option Investments. He has been living, investing, and working professionally in Mexico for over 15 years. In the summer of 2009, he received the first federally applied Mexico Real Estate Degree <\/strong>and Mexico Professional Real Estate License<\/strong>S.E.P. #5978657. He is the current president of TOPmexicorealestate, you can contact him at <\/em>(512) 879-6546<\/span><\/strong> or through the company’s web site<\/em> www.TOP<\/span>mexicorealestate.com<\/a> NETWORK
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\"Page<\/a><\/span><\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The Mexico real estate market along the tourist zones have been adjusting to the\u00c2\u00a0lower amount\u00c2\u00a0of buyers present during this past year.\u00c2\u00a0 Another adjustment that we have noticed is where the capital is being sourced from previous years when purchasing Mexico real estate.\u00c2\u00a0 The majority of monies before were financed by using assets from properties in […]<\/p>\n","protected":false},"author":2,"featured_media":13675,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[135,282,254,298],"tags":[108,433,136,212],"class_list":{"0":"post-820","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-living-in-mexico","8":"category-mexico-banks","9":"category-mexico-investment-property","10":"category-mexico-loans-mortgages","11":"tag-mexico-financing","12":"tag-mexico-mortgage","13":"tag-mexico-property","14":"tag-mexico-real-estate-agents","15":"entry"},"_links":{"self":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/820","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/comments?post=820"}],"version-history":[{"count":5,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/820\/revisions"}],"predecessor-version":[{"id":833,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/posts\/820\/revisions\/833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media\/13675"}],"wp:attachment":[{"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/media?parent=820"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/categories?post=820"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.topmexicorealestate.com\/blog\/wp-json\/wp\/v2\/tags?post=820"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}