 Should
I live in a gated community like Las Gaviotas? Is that safe enough or should I have a
security system as well?
Gated communities like Las Gaviotas offer a very comfortable life style but there are
many more Mexican neighborhoods that are less expensive. There is
crime everywhere, but a lot less in Mexico than one would expect.
There are lots of good security systems available here and you need
not be afraid to live in Mexican neighborhoods.
What
kind of finance is available in Mexico?
There are developers that offer finance but the interest rate is
very high, between 14% and 16%. There are a number of US lenders
already offering US interest rates of between 7% and 8%. The
interest rate will depend on the property, the deposit and the
finances of the buyer. The deposit will be a minimum of 20% and in
some cases 30%.
How
do I choose a good real estate agent?
This is not an easy question and there is no easy answer. The best
way is to get a recommendation from someone that bought from a local
agent and was happy with the service. You cannot depend on name
brands from the US to be good agents here and sometimes the best
agents are from small local firms like ours.
Is
Title Insurance a good idea?
Mexico has many different kind of titles so it easy to get confused.
If the property you want to buy does not qualify for Title Insurance
it might not be the best idea to buy it. Stewart Title is insuring
several developments now and if a developer tells you there is Title
Insurance, ask to see the policy and ask for the contact details of
the Title Insurance representative. If the agent selling the
property tells you Title Insurance is not necessary, walk away.
What
documents should I ask for when considering purchasing a property?
You need to see the title, the last tax bill and a bank trust, if
available.
What
happens to the deposit I make on a property?
It is important to only give a small deposit until you have the
opportunity to see the title insurance and the contract. If you
decide not to purchase the deposit should be returned to you
immediately.
How
can I be sure I am not paying too much for a property?
Like anywhere else, Mexican property is worth what someone will pay
for it but you can ask for an appraisal and ask what similar
properties have sold for. If the agent will not answer these
questions, get another agent.
What
are the property taxes in Baja Mexico?
Your yearly property taxes will run you about ¼% (0.25%) of the
total purchase price of Baja California real estate.
Is
there such a thing as Escrow in Mexico?
Mexico does not have traditional escrow but you can find developers
that are using a Title Company to hold money in escrow. Be careful
of any developer that wants you to give an unsecured deposit.
What
are closing costs going to be?
Closing costs are higher here than in the US. Between 4% and 6% is
normal.
If
I make a deposit on a house and then find the house has a lien on it
or has problems with the title, can I get my deposit back?
Only if you have stipulated in the offer agreement that you have the
right to withdraw your offer under those conditions.
Who
do I need to settle the property?
You will need a Notario. This is a lawyer that is licensed to
conduct property transactions.
|
