Americans Buying Property in Mexico

According to a Forbes article, over one-million Canadian and American ex-pats are living in Mexico, and 500,000 own homes in Mexico and these numbers are only going to grow. People have been leaving big metro areas in the United States, and that has only been expedited by the pandemic and the ability to work from home.

California alone has seen around 360,000 people leave its state for states Like Arizona and Texas, but a growing number of Californians are headed to Mexico. Buying a home is more than just purchasing a place to live. It’s investing in your future, and in this article, we’ll discuss why you should invest in Mexican real estate and where you should do it.

Why Should Americans buy Property in Mexico?

Currently, the housing market in Mexico is expanding, and prices for homes in Mexico are set to rise as the economy improves and more Mexican citizens become middle class. It’s estimated that half of Mexico’s population is considered middle class, and by 2030, 3.8 million households are expected to become middle class, according to Global Property Guide.

According to Bloomberg, working from home has become more accessible to many Americans, leading them to look for a more affordable horizon, most within their own metro area.

Moreover, as more American and Canadians buy into Mexican real estate, you expect the prices of homes to continue to go up, so now is a great time to buy into the market. Currently, you can purchase luxury homes for pennies on the dollar. 

For many Americans, especially millennials, owning a home isn’t feasible, but In our Valle Divino properties, you can get a 2BR/2BA for around $140,000. Compare that to the average home cost in California, which is almost $900,000.

Can Americans Own Land in Mexico?

So, once you’ve decided to make the move, next, you will need to look into a few things. In short, yes, foreign buyers can buy property in Mexico, but there are a few roadblocks set up to keep foreigners from buying real estate. Cities like Cancun have seen a massive flurry of foreign investment, so the Mexican government has a few caveats.

Fideicomiso

This is a trust that you must set up with a Mexican citizen. This bank trust basically gives the rights to another person who must keep and use it for the sole benefit of the holder. It is a renewable trust (renewed every 50 years) held by a fiduciary bank. Now, you only need to apply for a fideicomiso if you are buying lands within the restricted zone.

Ejido Land

Ejido land, or restricted zone, is comprised of any land within 100 km of any land border, or 50 km from any ocean. Leaders in Mexico understood how valuable their coastlines are, especially to foreign investment, so they created a bank trust between foreigners and their own government.

Permanent Residency in Mexico

Once you have bought your property in Mexico, you now have to decide whether or not you want to stay. For those who wish to remain in Mexico indefinitely, you can apply for a permanent residency visa.

In order to do this, you must find and set an appointment with your closest consulate. Make sure you bring your passport and all required bank statements. For a complete list of requirements, please visit here.

You don’t need a permanent residency visa to buy land in Mexico, but if you wish to pass through the border more easily, this might be your best bet if you plan on living in Mexico and still working in the United States.

Ensenada Properties

A couple of our properties are in Ensenada, which is a beautiful port city just south of the border and within 45 minutes of driving from downtown San Diego. Real estate in this area is still relatively cheap when compared to San Diego, and we offer some really great options for people looking to own property.

Valle Divino

Valle Divino is located north of Ensenada. It’s a beautiful community on the outer edge of Ensenada and Valle de Guadalupe, which is the area’s wine country. The real estate development is an excellent investment as we are set to construct 650 homes in this property alone.

Bajamar

This is an oceanfront resort that is quickly becoming the most popular real estate development among American and Canadian buyers. Many of the people here are making this their second home, and some are making it where they will eventually retire.

Reasons to Move to Ensenada

Of all the cities you can choose to move to in Mexico, few give as many benefits as this city. For those who are looking to work from home or commute to San Diego, this city is essentially a suburb of the San Diego Metro area. Moreover, for a beach city, the houses you can find here are cheap and luxurious. 

As alluded to before, Ensenada has Valle de Guadalupe just northeast of its city center, which is Mexico’s best wine-growing region and is known as Mexico’s Napa Valley.

Ensenada also has some of the region’s best golf courses and beach resorts, so it is a great place to stay when visiting Ensenada.

Moreover, as a port city, Ensenada has an impressive food scene. Chef Javier Plascencia is one of San Diego’s top chefs and has helped bolster the food scene in northern Baja California, championing a new cuisine, Baja Med.

How to Buy a House in Mexico from the USA

We believe that buying a home in Mexico is a wise investment, but we also think the window of cheap property in Mexico is closing, so it is important to decide your future quickly.
With the fideicomiso process and navigating ejido laws, you will need an agent who can get you a notary and a real estate agent you can trust. We want you to own property, and we believe we have some really great opportunities. If you want to start your home-buying journey today, please visit us at our website.