Before you decide to make any Real Estate Investment in Mexico, there are few important things you need to take care of. The most important been Trusts. Foreigners interested in buying Real Estate in Mexico have to understand that they can acquire rights over real estate investments in Mexico both in the coastal and in the border zones through a trust, which is a legal instrument very similar to those commonly used in the United States of America.
To explain in layman’s term. The fact is a foreigner cannot buy Real Estate in the restricted zones of Mexico. But foreigners need not get disheartened. There is another easy and legal way to enjoy all the benefits of owning real estate in Mexico.
The way is a sort of Real Estate trust known as Fideicomiso. This is a trust agreement between Mexican bank and property seller for restricted zones. The bank acts as trustee and buys lands on behalf of the foreign buyer. This means that the bank has the title to the Property in Mexico. A foreign buyer need not worry about the losing rights over the Mexico Property. The Bank is merely a trustee and has a fiduciary obligation to follow the instructions of the trust beneficiary in this case the foreign buyer. The trust beneficiary has full right to use or sell the property as deemed fit. The beneficiary can even rent the property, can borrow against the property, and can sell the property if he or she so chooses without any problem at all.
Mexican law provides that the original trust term of 50 years has to be renewed for additional 50-year periods, but it is important to know that this can be set up to be done in perpetuity upon the written request from the beneficiary of the trust. It is always a good idea to set this up to happen automatically if possible, that way the bank will not have the opportunity to come in and claim your land upon the expiration of the original trust. Or you could have an attorney oversee this.
Now, that you know that buying property is easy if you just care to get familiar with laws of Mexico. Tourism is a major source of development and earnings for Mexico; therefore Government of Mexico ensures that foreign investors can easily invest and reap benefits of this booming economy.
Mexico offers unparalleled beauty and life style choices coupled with sound real estate investment opportunities. Now, you don’t have any reason not to enjoy living in Mexico. So, go to Mexico and buy a dream home for yourself and have a time of your life.