Types of Property in Mexico and Where You Can Get Land

The trick to real estate investment is the same as any other form of investment. You need to find the right property to invest in. One that will grow, and hopefully one that you can buy at a low price and sell much higher. Just a little crash course there, I’m sure you know that, but it may be harder and harder to find that kind of property here in the states as large firms like Blackrock are buying up a lot of properties and jacking up the prices of homes. 

Mexico is currently seeing an uptick in its real estate prices. Just like in America, many cities have seen skyrocketing housing prices. Currently, Mexico has a large inventory of real estate. An inventory that will surely be depleted in the coming decades. Currently, Mexico’s middle class accounts for about half of the total households in Mexico, and that is expected to increase by more than 3 million by 2030, according to Global Property Guide.

Moreover, Mexican real estate has always seen a large demand from foreign investment. Cities like Cabo San Lucas and Cancun have seen a torrent of investment and now account for almost 5 million tourists a year. Similarly, Tulum is seeing a massive investment as well, and home prices are now similar to many American cities.

There are still hidden gems that are relatively untouched by development for now. In Baja, California alone, there are several great cities to the north on the peninsula that we believe will follow the same trend as Cabo San Lucas and Tulum, and we have started developing those cities.

Types of Land Titles

If you are a foreigner looking to buy property in Mexico, there are a couple of things you need to know, as there are a couple of different types of titles and laws you will need to work with to make your investment. New listings in Mexico will require foreigners to file different forms depending on where in Mexico the property is found. 

Fideicomiso

Non-Mexican citizens looking for homes for sale within 50 km of the ocean or 100 km from a land border will have to file a fideicomiso. This is a trust you must make with a bank that gives them technical ownership of the land but cedes all control of the land to you and your inheritors. 

Ejido Land

Ehido land is traditionally a communally owned plot of land. This was originally helpful to farmers, as it gave them a designated plot of land. Today, it is a cooperative of owners that gets to decide whether or not a piece of land is sold, they also get to decide whether the land will be for private or public use. This land can not be promoted for sale and cannot be sold to foreigners. In order to sell it to foreigners, you must apply for titulo de propiedad.

Titulo de Propiedad

If you own Ejido land and you want to be able to sell it to a foreigner, the cooperative must vote on you granting total private ownership of this land. Once done, the property is yours.

Escritura

This is the most common deed or title held in Mexico. Mexican nationals can hold this title anywhere in the country. Foreigners can hold this title anywhere outside the restricted zone. 

Mexican Residence Visa

You can apply for a temporary visa that will allow you to stay in the country for six months, but if you’re looking to make it a permanent move, you will have to apply for a permanent residence visa.

Americans are moving out of large urban areas, especially as working from home is getting more and more accessible for people. The benefit of living in cities like Ensenada is that you don’t have to give up living in a city to get an affordable mortgage. Besides, there are some pretty great beachfront properties to choose from.

There are plenty of reasons you may want to move to a new country, and Mexico is a really great choice. If you are interested, visit here for more information.

Where to Buy Land in Baja

If real estate investing is your main reason for buying land in Mexico, there are several promising locations we think you may want to consider. For instance, Tijuana has seen its home prices shoot up by 10% in the last year.

A reason may be Californians, especially San Diegans, leaving the state to find a cheaper alternative. Cities like Tijuana, Tecate, and Ensenada are essentially suburbs of San Diego. Ensenada, the furthest city of the three, is only a 45-minute drive from downtown San Diego.

Ensenada

This port city is home to several amazing attributes. For instance, Valle de Guadalupe is one of Mexico’s best wine-producing regions, and International Land Alliance has a real estate development nestled between Ensenada’s city center and Valle de Guadalupe called Valle Divino. Imagine being able to wake up and look out upon miles of vineyards on one side and on the other an ocean view. 

We also have an oceanfront property called Plaza at Bajamar. This is a growing community of ex-pats just like you. This Baja real estate has the perfect ocean view and is also a short walk (or ride) to some of the best golf courses.

Ensenada is truly one of Baja California’s best-kept secrets, but only for now. This city has every indication that it will follow in the footsteps of Playa Del Carmen and Puerto Vallarta in that its real estate prices will shoot up.

San Felipe

If you don’t care about being close to San Diego or close to a big Mexican city, then San Felipe offers a sleepy beach getaway. Far from the lights and sounds of a big city, this small fishing town is still waiting for its big investment. We have a development a short distance from the town center. This town is at the end of the Gulf of California, so its calm waters could be home to a huge tourist destination in the coming future.

Baja Real Estate

All in all, we believe in the promise of investing in real estate. Mexico gives many Americans the great opportunity to be able to not only buy real estate but to be able to make a huge return on investment. You don’t need to sign on with us, there are plenty of ways to invest in Mexican real estate. If you are curious about what we have to offer, please visit us on our website.