For years, foreigners – especially Americans and Canadians – have invested in real estate in Playa del Carmen, Mexico as a way to safeguard their hard-earned money. Not only is the cost of living much cheaper, but they are also required to pay less taxes. However, many people who are purchasing their first home in Mexico are swamped with questions about the process of buying Playa del Carmen real estate, the residency status and other requirements.

Anyone Can Purchase Real Estate in Playa del Carmen

The long-known myth of “foreigners cannot own property in Mexico’s coast” is nothing more than that – a myth. The reality is that restricted zones exist, but so do ways around them. Through a bank trust or Mexican corporation, any foreigner can own property in Playa del Carmen.

The restricted zones are outlined as anything within 62 miles of any border or 31 miles of any coast. The bank trust or Mexican corporation holds the title; however, the foreigner has all the power over the property and is the rightful owner. This means you are able to modify, sell, rent, or inherit the property as you wish.

It is Safe for Foreigners to Purchase Real Estate in Playa del Carmen

Many Americans and Canadians are slightly afraid of owning real estate in Playa del Carmen, or Mexico in general. However, as long as you purchase legally, there is nothing to worry about. Your real estate agent and your attorney should advise you about the procedures and all of Mexico’s real estate laws. If you follow through, you will be able to purchase your property without any worries of the bank or the government taking it away. You will be one of millions of foreigners who already own property in Mexico.

Residency and Visas

Depending on your personal situation you might need to apply for residency or citizenship. If you plan on using your property only as a vacation home, there is no need for any paperwork; however, if you will be living in Mexico or staying over the visa-free limit, you will need to get a temporary or permanent residence card or apply for citizenship. When you purchase real estate in Playa del Carmen, it will help expedite your residency much quicker. With a good lawyer by your side, you will be able to submit your paperwork and obtain your documents in no time.

Four Easy Steps to Buying Real Estate in Playa del Carmen

The process to purchase real estate in Mexico is quite straight-forward, and very similar to that in the United States or Canada. Once you have found the place you want to call home there are four basic steps to follow. The first is putting in an offer to purchase. This is an offer the buyer presents to the seller. Should the seller accept the offer, the next step is the promissory contract. In this contract the buyer promises to pay the seller and the seller promises to deliver the house. It is a basic contract that outlines that both parties will give each other something of value in an exchange. Then comes the purchase and sales contract. This is the agreement that outlines all the clauses, causes and conditions of the purchase-sale transaction.

The last step of the process is the closing and title transfer. This is when the down payment has been made, the closing is signed off and the seller delivers the home to the buyer. A Notary Public overlooks and signs the documentation that finalizes the transaction.

Costs to Consider in Closing

The purchase-sale transaction does not only require the payment of the home’s value. It carries additional costs for the closing process. In Mexico, the buyer covers these costs, which amount to 4 to 7% of the home’s purchase price. On the other hand, the seller will pay for the capital gains tax and sales commissions.

Financing Real Estate in Playa del Carmen

More often than not, real estate transactions in Mexico are cash deals. For those who want to finance their purchase, they are better off doing so in their home country through a financial institution. Some Mexican lender companies will finance foreigners but with a much higher interest rate. Back home you can take equity out of your home or other tangible assets. If you are purchasing a pre-construction unit, you will find many developers offers some sort of financing for foreigners, as well. However, this requires a much larger down payment and a shorter period of time to pay.

Key Players in a Real Estate Transaction

Buying real estate in Playa del Carmen requires a team. In reality, it could be a buyer-seller transaction. But for safety reasons and to make sure everything is done in time and order, we highly recommend involving a whole team:

• Reputable, local real estate agent
• Attorney
• Authorized Notary Public

It is up to you whether more or less people are involved in your transaction. However, these are the key players in most cases.

We hope these points help you in understanding the ease of the real estate purchasing process in Mexico. You are only a few steps away from having the home of your dreams in Playa del Carmen. If you have any further questions about how to become a homeowner, contact Top Mexico Real Estate. Their team of international, real estate experts is available to help you in buying real estate in Playa del Carmen.