The primary market is booming. A lot of housing is being built – from very budgetary – 25-90 thousand dollars for a condo or house, to premium – in the range of 1.5-3 million dollars for a villa, condo or penthouse on the first line. The area of such housing will be in the area of 500 m2 with large terraces, it will be fully furnished. The bulk of foreigners are focused on buying middle class housing – 120-350 thousand dollars. Usually these are small condominiums within walking distance to the sea, or even overlooking the sea. Such objects are in demand among tourists who, for some reason, prefer houses and condos separated from hotels. A big drawback of primary housing is a certain delay in the completion date and obtaining an escritura – a certificate of ownership. There are condominiums that do not issue certificates to their owners for a long time. However, this does not prevent the owners from living on their own or renting this property to tourists. All communications are connected in these condominiums, the infrastructure is organized and they are no different from those put into operation. The secondary market is in a rather disorganized state. There is no single database of objects, as, for example, in the USA, there are no charges for activities without a license for realtors (but they are already starting to tighten up). But this market is interesting since offers often appear with a discount of 10-40%. But, if when buying a primary property you can get by with a notary and a company lawyer who will prepare and execute all the documents and you can do everything yourself, then when buying a secondary property you need a realtor who can ensure the security of the transaction, check the object for encumbrances, ownership, collateral, etc. Of course, there are fraudulent schemes, but this is a topic for a separate post and you should always consult a lawyer. In any case, it’s better not to go through it yourself. The difference in the cost of primary and secondary housing is in favor of the primary when it comes to condos, since at the stage of construction or design the price will be 20-30% lower than after the commissioning of the house. The situation with houses is a bit similar, but the bulk of houses on the secondary market are cheaper than new ones.
There is no definite answer for which client Mexico is. There are areas with expensive real estate and a very developed infrastructure: golf courses, yacht clubs, clinics, schools, supermarkets. But in the same areas there are real estate of the average price level, but already a little further from the sea (5 to 10 minutes on foot).
For the 1st half of 2018, the price increase in Mexico was 9.9%. How noticeable is the growth of a cent in reality, is it there?
Yes, it is there and is noticeable. There is a construction boom in the country. Annual population growth – more than 1.6 million people + tourism growth and the flow of immigrants from richer countries (USA, Canada, Europe)
There is an established belief that it is dangerous to live and relax in Latin America. How true is this and what aspects of the purchase of real estate by foreigners is it important to control?
Of course, there are dangerous places where it is better not to meddle. There are robberies, thefts and murders, but all this is not as massive as the media describes it. While following basic safety rules, you can absolutely not be afraid of anything. This is especially true for tourist areas. When buying real estate, a good lawyer and realtor is important, who will defend the interests of not only the seller, since the seller pays a commission, but also the buyer.
When did the flow of foreign buyers pour into Mexico? What caused it?
There has always been an interest in Mexico by foreigners. There are a lot of citizens of the USA, Canada, Italy, France, Germany, Czech Republic, Poland and many other countries. There are foreigners living here for over twenty years. Russians “discovered” Mexico 5-7 years ago. Of course they have been here before, but they began to come in masse during the last five years. Now there are a lot of them
Which potential buyer makes sense to opt for Mexico? Basing on our experience we see three categories of buyers:
1. There is a lot of money and a person wants to keep it or diversify it. These are people buying premium class housing.
2. People who have small free funds and are looking for stable markets for investments. This category looks at housing worth 120-250 thousand dollars with a yield of 6-12% per annum.
3. People who move to Mexico to live with little money, buying something up to one hundred thousand dollars. They are trying to build a business, receive a small passive income from their home country, have their own business or work online.
What are the current real estate prices in Mexico? What options are most often offered to buyers? What is the best choice?
Prices for new real estate in the middle price segment are $ 1500-2500 per m2. The premium segment has a ceiling, but it is difficult to clearly define it. A villa on the beach of 700-800 m2 can cost 3-8 million dollars, and in the first line, not the beach, but a rocky coast or a yacht marina and a smaller house, then you can go with a million and a half. In the budget segment, prices start at $ 600-800 per m2. First of all, you need to understand what the purpose of the purchase is, what are the expectations, budget, quality of construction, house or condo. This is the first thing we ask the client. When buying a primary home, there will be expenses for the purchase of furniture and other necessary things, since when buying a secondary property, almost certainly everything, including linen and dishes, may be included in the price. New ones are rented only with a kitchen, plumbing and joinery. A small percentage of condos are turnkey. If the task is to buy and immediately receive income, then the secondary. If the task is to buy cheaper, then the primary is at the construction stage, but you have to wait. You can, of course, buy cheaper on the secondary market, but then you need to have a trusted realtor so that he monitors discount options, and then very quickly makes a decision.