Who Should You Talk to if You Want to Buy Real Estate in Mexico?

If you have started your Mexican real estate journey, you have probably seen a couple of important words: fideicomiso and Ejido land. Between the two of these words, the prospect of buying real estate in Mexico may seem unattainable, or the hoops may represent hoops you aren’t willing to jump through to buy a home. 

Mexico offers exceptional beachfront property for an affordable price that cannot be found anywhere in our country. Moreover, we believe there are a few positive trends that we believe show Mexican real estate is an excellent investment.

Moreover, International Alliance has recently invested in developing a new division to help buyers clear financing problems many Americans face when buying Mexican property. In just a bit, we discuss this further.

In this article, we will discuss all of these ideas, and hopefully, we will answer any questions you may have.

Mexican Real Estate Trends

As we touched upon earlier, several positive trends in the Mexican real estate market will make buying property a great investment. The first one I’d like to discuss is the GDP growth and housing market trends. According to World Bank, Mexico’s GDP has consistently increased over the last 20 years. Mexico’s renewed investment in its coastline and international trade is a big reason for this. With this, American and Canadian investment in their coastal real estate market has only furthered this trend.

Much like America, Mexico’s housing prices have risen 2.29% compared to America’s 4.22%. Also, like the USA, we see the biggest price increase in metropolitan areas. Monterey rose by 8.74%, Guadalajara by 9.14%, and Tijuana by a staggering 10.51%. This is according to Global Property Guide.

The reason for these steep increases is twofold. One, Americans flocking to Mexican cities and coastal areas to escape the high housing prices. It is estimated 800,000 to 1.5 million Americans have moved to Mexico over the last several years, and according to Bloomberg, visa permits for Americans have gone up 85% since COVID started.

Secondly, the Mexican middle class has seen an increase every year for the last ten years and is thought to add another million and a half middle-class households over the next decade. It goes without the more people who enter the middle class, looking for a family home,  the higher the demand for real estate will be.

Families will be buying a property which will only increase the value of any real estate investment. Not to mention the USD/MXN exchange rate is still favorable to American buyers; currently, the exchange rate is hovering around USD 1= MXN 19, which means your money will go further in Mexico.

The Mortgage Division

So now that you have decided that Mexico real estate is a good investment, you will have to plan how to buy. As we touched upon earlier, entering a fideicomiso is a roadblock For most Americans, and thus finding a person or entity to finance 

Fideicomiso is when non-Mexican citizens looking for homes for sale within 50 km of the ocean or 100 km from a land border (also known as the restricted zone) will have to file a fideicomiso. You must make this trust with a bank that gives them technical land ownership but cedes all control of the land to you and your inheritors. 

International Land Alliance has recently invested in developing a mortgage division. Our mortgage division will provide real estate investors with financing for their homes. We will also act as the third-party entity in the fideicomiso, which means we can provide you with a way to clear the path forward without any roadblocks.

Banks, credit unions, online lenders, and brokers all offer mortgages. Our loans are directly approved by the company as we also provide affordable financing terms. We have worked to remove any unnecessary middleman and have given home buyers another option to finance a home across the border.

We are one of the only real estate companies to offer this kind of service, and certainly, the only one working in this capacity. President Frank Ingrande is quoted as saying, “We believe that we would be one of the first real estate developers in Mexico to offer real estate financing to US citizens.” For more information on this matter, please visit our investor relations page.

Where Should You Buy?

Cancun, Tulum, Puerto Vallarta, and Playa del Carmen have all seen massive investments, some for decades. Playa del Carmen has seen most of its homes bought up and a huge jump in real estate prices. The Riviera Maya beachfront saw the same number of houses sold in the first half of 2021 as all of 2020 combined.

In cities like Ensenada and San Felipe, there are still investment opportunities. New homes are being built every day. However, real estate expenses in Baja are still relatively low compared to the rest of the country. We believe this disparity won’t last as much of northern Baja California is within driving distance from downtown San Diego. Travelers have reported taking a mere five minutes to cross the new footbridge over the border, according to Market Watch.

Ensenada is a port city with some high-end beachfront property. Moreover, the city boasts wonderful nightlife with great restaurants, as well as ballet and several golf courses, and is a few KM from Mexico’s best win-growing region. Not only that but also has Mexico’s highest concentration of scientists. This city is bound to see a boom as more people enter the middle class.

San Felipe is on the other side of Baja California, sitting on the Sea of Cortez. It is a quiet beach town in a region renowned for its green reputation, and all of our homes have a minimal environmental footprint. This sleepy town sits on the border of Baja and mainland Mexico and is a great place to retire or build a vacation home. Some believe San Felipe will become as popular as Tulum or Playa del Carmen. 

International Land Alliance has four real estate developments waiting to build your new home between these two cities. We have created an infrastructure that makes buying a home in Mexico easier than ever, and we believe buying real estate now will be a great investment. For more information, please visit our homepage. International Land Alliance can help get you on your way and ensure you get there.