The luxury amenities like pools and other great recreational facilities together with its great weather, fun-filled living, and tasty treats are awesome reasons to purchase a property in Mexico. Comparing the cost of buying a home to real estate prices in Canada, USA, and Europe, Mexico offers lower costs for its property ownership. Aside from these benefits, owners also pay cheaper rates for taxes, maintenance, and other housekeeping services.
Take a look at these costs of owning property in Mexico.
The Actual Price of your Property
The most direct and important cost to consider is the actual amount you will pay for your Mexican property. These purchases entail different values which are according to the location, size, and amenities, similar to what other real estates in any other country demands for.
Notary and Agent Fees
Business transactions such as the purchase of a property in Mexico involve several costs: notary fees, agency fees, sales taxes and translation costs among others.
Annual Property Taxes
Annual fees called “predial” require all Mexican property owners to pay this property tax in their local mayor’s office. Rates vary from state to state but only ranges within a few hundred dollars. Size and location of your home will be the basis for determining your “predial”. Some areas do not provide bills so make sure you keep updated with this payment.
Yearly Land Trust Fees
A special land trust known as Fideicomiso is a necessity for foreign residents seeking property ownership in Mexico. This is provided by banks for properties within 50 km (30 miles) from the Mexican coast or 100 km (60 miles) from a border. An amount which is around US$500 is the usual payment for an upfront fee and then a yearly property payment is also necessary.
Gated communities such as those available for purchase in Mexico entail additional costs for maintenance and other Homeowner’s Association fees. This is similar to purchasing an apartment, a condominium unit, or a residential area within a golf or country club.
Gas and electricity usage costs are lower in Mexico than in the northern border areas. But when compared to an average people’s earnings, these costs are relatively higher. Government subsidizes energy consumption per household but this benefit can become void once you exceed this “allowance”. It is therefore important to remember that the more you use electricity, the more expensive the proceeding energy unit becomes.
Insurance for Your Home
Your property in Mexico and its contents should be covered by your personal home insurance plan. This is another cost to be considered when purchasing a property in Mexico. Living by the coast has numerous benefits and the disadvantages and risks of storm surges, flooding, and other natural calamities. A well-covered home insurance policy will keep your mind at peace even when these events happen.
Are there any other costs related to owning a property in Mexico? Please add your comments or suggestions below.