Hi ,
I know I talk a lot about rentals and renting in Mexico. But many of you have asked me "what about buying a house?" "What are the costs of that, and what should we know?"
Well, for starters there's a reason I don't talk about buying homes much. And that's because there is some risk involved, not always, but enough that I would rather tell you all to rent, rent, rent.
For example, right now, there's a serious situation unfolding in Bucerías where about 1,000 properties are at risk of being seized by the government. Learn more about it from this source.
The story, as I understand it, goes a little like this...
At some point, land in Bucerías was sold and developed, but the state of Nayarit now claims that this land was never meant to be privatized in the first place.
Properties were built, sold, and even resold multiple times over the years. But due to irregularities in the chain of ownership, the current homeowners, foreigners and Mexicans who bought legally on paper, are now caught in the middle of this legal mess.
Now for those of you wondering... most likely, many of these homeowners of the land issue in Bucerias who have proper deeds (escrituras), have been paying their property taxes (predial), and can prove they bought their homes fair and square will likely win their case. But even with strong proof, this will still be an uphill legal battle. Costing time, money, and a lot of unnecessary stress.
And sadly...this isn’t the first time something like this has happened in Mexico.
But here's the thing..
Even when you do all the right things like hire a notario, pay for title searches, make sure the land isn't ejido, it can be legally sold, or work with a trusted attorney...these things can still happen.
*By the way, ejido land is land that cannot be owned by a foreigner.. it is communal land given to a specific set of members. And it cannot be sold unless it is regularized- a process that isn't easy.*
This is the nature of the legal system and land history in Mexico.. Buying property here is not as straightforward as it is in the U.S. or Canada.
Even owning property on the coast requires you to have a special trust known as fideicomiso. So, technically you own the property, but through a trust. Not directly.
So you see, there are often more layers, more risk, and more moving parts than most of you are used to.
And I’ve heard too many horror stories of foreigners caught in years-long legal battles, trying to hold on to the homes they thought they owned. In some cases winning, and in some cases losing their homes.
At the very least regardless of the outcome, they've lost countless years of stress and money paying for attorney fees.
It’s heartbreaking. And it’s exactly why I always recommend renting when you live in Mexico.
Why?You avoid getting tangled in legal disputes over land titles or fideicomisos, or something else. Sometimes renting is even cheaper than owning You can move freely if the neighborhood or town doesn’t end up being the right fit You’ll have more flexibility to explore different areas without a huge financial commitment And most importantly, you protect your wallet and peace of mind.
I get asked all the time, why I don't do more content around the cost of purchasing homes? Or the cost of owning homes? And why I focus on renting? This is why I focus so much on rentals in all my content.
HOWEVER... I am NOT saying that buying property in Mexico is always bad.
There are many safe purchases made here. More often than not, people have zero issues when buying properties in Mexico.
But you need to go into it fully aware that even with all the right precautions, there can be a risk.
So, if you want to minimize your risk, I strongly recommend you rent first. There are many rentals all over Mexico. And they exist in all budgets.
Learn the area of Mexico where you plan to live, understand the system, and give yourself time. It's the most practical and protective step you can take. Especially when you first move to a new country, and you're getting used to how things work here.
And If you're wanting to know how to find rentals like the locals do, check out this blog post.
Saludos, |
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