Tips For Building Your Home In Mexico
Let us help you when you are thinking of buying an investment property, your dream home, or something in between. The market in Mexico is fantastic and growing exponentially. From Baja California to the Yucatan and all the beach destinations in between, there is no end for us to find your next property. There are options to meet all budgets. Buying property is safe, easy, and affordable. There are tremendous opportunities to maximize your dollar. That makes getting more bang for your buck with real estate in Mexico simple. It does not matter what vacation destination you are looking at, there are gems to be found because your dream home is in Mexico. Buying (and holding property) in foreign countries can be a different process, but simple nonetheless. The first step is buying land for sale in Mexico so you can build your dream home.
Building in Mexico is advantageous for many reasons. The weather is ideal, the beaches are pristine and the cost of living is far less than its neighbors to the north. But, beware. If you’re treading on unfamiliar territory, building a home in Mexico could come with some pitfalls. We want to share a couple of important tips we know that make building your home in Mexico a hassle-free process.
The first step begins with land and we are commonly asked the same question. Can foreigners buy real estate in Mexico? The answer is an absolute yes. The Mexican constitution says that no foreigner can directly own titled property within 50km of the coast or 100km of the border. If you are not a Mexican national and want to buy property in these restricted areas, it is easily done via a bank trust or Fideicomiso in Spanish.
At MexHome, we know that we make buying land in Mexico an easy process that facilitates building the home of your dreams. This is an exciting step in a new lifestyle we can not wait to help you with.
Get To Know The Area
Spend time in the area you are thinking about building in, get to know your would-be neighbors, and find out what they are like. Be aware of the infrastructure around you. Consider the following questions: Is water easy to access? Is the electricity reliable, or even available? Is there Internet available and if so how fast is it? Do the shops and services on offer meet your needs? Can you make do without any of these things? These questions and more are just some of the things you need to consider when you are looking at land for sale in Mexico.
Always Work With A Knowledgeable Realtor
Before you build a home, you need to choose a lot. To make sure the transaction goes smoothly, you need to find an experienced real estate agent in Mexico who is familiar with the area and knows the ins and outs of real estate law. Talk to a MexHome agent about your dreams. We can help you find the perfect property through our vast inventory of land for sale in Mexico and help give you valuable advice on building your dream home.
Set Up A Bank Trust
Once you have decided which lot to buy, you might need to set up a bank trust. Foreigners who wish to invest in real estate in Mexico’s Restricted Zone need to establish a bank trust, known as a Fideicomiso. This is handled by a Public Notary. At MexHome we are happy to talk about any of your doubts and will explain the process while answering all the questions you might have.
Be Sure To Follow All Of Mexico’s Laws
The laws of your home country are not always the international norm. Something as simple as drilling a well in the wrong place or without the proper paperwork can get you some hefty fines. Make sure you are aware of all labor legislation, government policies, zoning regulations, and municipal bylaws, and follow them to the letter. We recommend you find a bilingual lawyer who has worked with people who have built homes and real estate in Mexico.
Make A Checklist
Or even several lists. Write everything down – all the essentials and any extras you’d like to include – before you start the journey. Review it often to make sure that all your bases are covered. You may forget a crucial need of yours if you don’t!
Hire An Experienced Project Manager
This is especially important if you plan to be out of the country during the construction phase of your dream home in Mexico. You want someone on-site who can keep an eye on progress in your absence and give you regular status reports. Your property manager can also take care of ordering and paying for materials, paying the building crew, and other logistics.
Ask Around To Find A Reputable Contractor And Architect
Talk to friends and neighbors in the area who have already bought land for sale in Mexico and built new homes or have had extensive renovations done to an existing structure. Ask them as well as your project manager for recommendations. You want to work with a reliable, experienced firm that can build your dream home in Mexico right the first time.
Always get an estimate
Ask the construction company for estimates before the work begins. Don’t hesitate to ask tough questions. Make sure that the contractor has a clear idea of what your expectations are. But don’t just opt for the least expensive bid. You want a firm with an experienced crew that will do a top-notch job using quality materials. Establish a timeline for the completion of the project. If you are not satisfied with the contractor you have chosen, we can provide you with alternatives.
Before work starts, take lots of pictures.
This is especially important if you are adding to or renovating an existing structure. These photos can come in handy as they can be used as evidence when it comes time to calculate capital gains.
Put Everything In Writing
Like anywhere in the world, it is easy for foreigners to unknowingly make a mistake that gets them into serious trouble. Anything contractual agreements should always be in writing. Make sure all terms are written down and that all the parties involved sign the contract and get a copy.
Always have two or more people reviewing the documents to prevent any misinterpretation of the terms and to read the fine print. One of them should be your lawyer.
Get The Proper Permits
Before starting the physical work or groundbreaking, have copies of all the needed building permits in hand. Your project manager and a lawyer can help you with this.
Always Stay Informed
Your contractor should be accountable for the job you hired him for. But keep a close eye on the progress and don’t be afraid to ask questions. Visit the site as often as possible to make sure everything is going smoothly. However, let the workers do their jobs; if there is a problem, go to the supervisor/project manager instead.
Keep Track Of All Your Invoices
You will need them to manifest the property once the construction is complete as well as to calculate capital gains when you decide to sell. Note that the Mexican tax authorities will only consider official CFDI receipts (commonly known as factura) as expenses. A series of numbers added up on the back of a paper napkin won’t pass muster.
Make sure your contractor or project manager is paying the laborers their IMSS (Mexico’s Social Security). If they are not, you will be held responsible for these payments sooner or later.
Get A Manifestation
Once all building work is complete, make sure you have the construction manifested. We could dedicate a whole blog post on how to go about this process, but for the time being, be aware that a manifestation is necessary should you decide to sell the property. Keep all permits and invoices in a safe place as you will need to include them in your application.
At the end of the day, this is your dream coming to life! Make it a fun project and kick back and relax whenever you can. Yes, it can be stressful at times, but it’s also the adventure of a lifetime buying land for sale and building in Mexico. After everything is said and done, you will have your place in paradise!
The MexHome Promise
Owning property as a foreigner is easy, which also makes building your dream home in Mexico attainable. We facilitate a seamless and secure process. We are here to help you and are excited to share our knowledge. This is the first step in a new and exciting lifestyle. Deciding is the hard part, we are here to answer questions and help you build your dreams. We have amazing land for sale in Mexico. Contact us and see the one-of-a-kind homes we have to offer and the real estate in Mexico.