Buying a property in Mexico: Smart Move or Risky Bet?

Buying a condo in Mexico can be a great idea but will depend on several personal and financial factors. Among the advantages and considerations:

1. Affordable cost of living: In general, the cost of living in Mexico is lower than in Quebec, Canada or the United States. If you are considering buying a property for retirement, whether to spend the winters as a "Snow Bird" or to live there, right now it costs less in Mexico than in the United States (Florida or elsewhere).

2. Pleasant climate: During the winter in particular, the climate is warm and sunny. In coastal cities, however, some months can be more humid, especially after April.

3. Expat communities: Several cities and regions (Puerto Vallarta, Lago Chapala, Mérida, Playa del Carmen) have Canadian and American communities, even European ones, which will facilitate integration.

4. Lifestyle: It is relevant to ask yourself about the lifestyle you are looking for. Some people may prefer an urban style, a life by the sea, or a combination of the two. The urban style offers the opportunity to experience culture, cuisine, art. This will not prevent you from taking a few weeks by the sea - via an internal flight, or even a comfortable bus. In some cities less popular with tourism, restaurants can be more affordable than in tourist sites.

5. Real estate investment: Properties, to the extent that you wish to manage them or find a local company that can do so, can represent good potential for valuation or rental income, whether for part of the year or for the whole year.

6. Access to health care: Some regions offer health care at a much lower cost than in Canada, if needed.

Some of the challenges to keep in mind are:

1. Being a foreigner: In general, it will be more straightforward to buy in a city that is not close to the coast. In fact, in these areas, foreigners must buy through a fideicomiso (bank trust) to legally own real estate.

2. Local regulations: It is important to understand local laws that may differ from the laws in Quebec or elsewhere in Canada, including working with a reliable Mexican lawyer or notary.

3. Check all hidden costs: Whether it is a condominium or a house, it is important to inquire about maintenance fees, property taxes and other costs that vary from one place to another. While maintenance costs for a condo can be relatively low in cities, they can be higher in tourist areas where there are a good number of non-Mexicans who own properties.

4. Monitor currency fluctuations: In addition to experiencing market inflation in the cost of living, fluctuations between the Canadian dollar and the Mexican peso have varied greatly in recent years, to the disadvantage of the Canadian dollar, which can have the effect of amplifying inflationary pressures.

5. Access to residence: If you wish to spend more than 180 days per year in Mexico, it will be necessary to apply for temporary or permanent residence.

6. Security of the region: Security challenges are significant in Mexico and vary greatly by region. It is important to inquire through official sources of the Government of Canada, in order to choose a safe place.

In conclusion, buying a condo in Mexico can be a wise decision, provided that you have considered what you are looking for, have done the adequate investigations, and are working with trusted professionals.

Ask yourself a few questions. Do you intend to live there part of the year or all the year? If so, would you prefer to live by the beach or in a city environment and perhaps just a few weeks on the beach? Do you intend to have your car there (or need to have a car) - City living can allow for easier and relatively low-cost transportation by Uber. Have you done your research on the different regions in Mexico ?

Coming soon: the transactional process

NOTE AND WARNING: This article does not constitute advice and goes beyond the field of competence of a real estate broker licensed in Quebec. The latter is not able to advise you on the purchase of a property outside Quebec, but based on his experience and networks, we can refer you to real estate agents in Mexico who operate in this market

Any comments, personal experience you’d wish to share with the readers? You are welcomed to comment below.