Q. “How secure is my property if I purchase in Mexico?” Chris M. – San Francisco, CA.
A. Very secure. In the “restricted zones” along the coast or near the border, foreign buyers are required to place the property in a Trust (Fiedecomiso) with a Mexican bank. The buyer is the beneficiary of the Trust and it is saleable, will-able and automatically renewable after 50 years. As a buyer you have full rights of ownership, use and enjoyment. In effect, the Trust allows the transaction to act as “real property” for all intents and purposes. This is an excellent mode of protection as the Bank Trust (Fiedecomiso) places certain fiduciary obligations in the hands of a Licensed, Chartered Mexican Financial Institution. Financing adds an additional layer of protection deriving from the very thorough due diligence the Lender employs to investigate the deed of the property. Banks tend to be rather conservative and would not offer mortgages on Mexican Property without a very high confidence level in doing so. With financing, you not only have a Mexican bank looking out for you, you also have a US bank protecting your interests.
The Mexican economy has also been stable for many years and in fact, they are one of the top 10 emerging economies in the world. The Mexican people are rightfully proud of their emergence onto the world scene and you can be assured that there are no foreseeable changes in the future. The advent of NAFTA in 1993 has been the driving force behind this economic miracle by opening Mexico up to foreign investment and stabilizing their currency.
Mexico’s resort areas rank among the finest in the world and the Mexican government is committing vast resources into the infrastructure of these areas to ensure that they continue to attract investment.
Proximity: Getting to Mexico is very easy for both from the United States and Canada. Most major cities offer non-stop flights directly to major tourist areas and there are more being added every year.
The “Boomer” generation: The enormous amount of accumulated wealth by the boomer generation has never been matched. Today’s U.S. citizens and Canadians are much more adventurous than their predecessors. Instead of settling for Florida many are investing their real estate dollars in Mexico. Over 15,000 Americans and Canadians turn 55 each day. Last year approximately 400,000 foreigners looked south to Mexico as an option for a place to retire or for a second home.
Few people can resist the magic of Mexico and now that financing is available, it is much more attainable for all.
