Opportunity in Mexico
Property values in Mexico, as in the United States, tend to increase year after year. As the demand for oceanfront property in the U.S. has outstripped supply, it has become unobtainable for the average person. However, in Mexico, there are numerous locations where one can still afford oceanfront or ocean view properties, as prices start at a much lower point.
The increase in value of Mexican oceanfront and ocean view land over the last few years has, for the most part, eliminated what we would refer to as “cheap”. Fortunately, one can still enjoy a price differential of four to ten times that of similar properties in the United States. As with all property, the relative value and appeal of land in Mexico comes down to three key factors: location, amenities, and accessibility to the United States.
In addition to Mexico’s lower land costs, construction costs are lower, maintenance is inexpensive, and ownership costs (taxes and utilities) are extremely low. A person can live comfortably on the savings from property taxes alone.
For example, in most areas of Mexico, property taxes are approximately 0.1% so, for a $1,000,000 home, one would pay about $1,000 per year. In Florida, property taxes are about 2.5% or $25,000 on a million dollar home. So, with the $24,000 annual difference in property taxes, one could hire a maid, pay the utilities, buy groceries, and still have money remaining.
Purchasing property anywhere requires an extensive amount of research, planning, and preparation. Mexico is no exception. A person should research and understand the laws, and work with true professionals who can guide one to a safe and successful property purchase in Mexico. The process is relatively similar to that of the United States and equally as safe. Today, multinational financial institutions such as GE Capital provide 30 year financing in Mexico. First American Title Insurance Company, America’s largest title insurance provider, can offer you title insurance to ensure the safety of your transaction.