Selling Property in Mexico True Experiences Share! Watch it before BUYING !

Selling Property in Mexico True Experiences Share! Watch it before BUYING !
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Who are we?
We're a family, and with our son Louie we moved from Houston TX, twice, to Queretaro, Mexico. We love real estate and started our real estate investing journey in 2015 and reached financial freedom in 2020. We are still working on our goals, but now invite you to join us on our journey in Mexico, where we'll discover the wonders this fantastic country has to offer. From its wonderful people, deep and varied culture, and it's diverse natual beauty we bring you our thoughts and opinions on what we experience in our day to day lives.
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[@2ndlife-ql1hc]

as a summary from here and some other articles I read:
1) buying house in Mexico will cost extra 5~10%, transfer tax of 2% plus many other items of fixed cost, the notaria fees etc;
2) selling house in Mexico will also cost extra 5~10%, including a percentage of income tax if there’s a profit of property value growth than the buy-in price; and again many other items of fixed cost;
// So if buying and hold too short time and sell, it would almost always be a loss, because of too many items of fixed cost, so it’s almost no room for profit of up-flipping, and under 3 years still too short consider the total is loss. Only if you hold 5 years 10 years, when the property value growth is more than 20% then is probably enough to offset all fixed items costs, and still remain a good profit? 🎉

[@davebacon6194]

good one guys, business in mexico is definitely different!

[@dreamlifeinMexico]

@davebacon6194 yes it most certainly is! 😂

[@jackyback3975]

Thanks for honesty. Looks like living in Mexico can be very frustrated with and very stressful

[@chasingtheAmericanDream]

It certainly can be but so can all countries lol

[@dreamlifeinMexico]

@jackyback3975 it can be for moments, but the overall level of stress, i would say, goes way down. Life is definitely laid back and slower here in general

[@davebacon6194]

@@dreamlifeinMexico agree, mexico is less stressful, just not speaking the language and being used to the way they do bidness can be challenging

[@cindyk3076]

Holy cow, selling your house is quite a process, thanks for the info!

[@dreamlifeinMexico]

@cindyk3076 You bet! it can be a little intimidating and lot frustrating!

[@chasingtheAmericanDream]

Owning a house gives you more freedom then renting because you can rent it out and go somewhere else… if you rent you have to worry if you go away paying rent for a place that you are not in. I think of it as wasting money unless you can get someone to rent while you are not there. (Ex. You go away for a month ) Get a good honest property manager to pay the bills and manage the tenant and you will have lots of freedoms. I’m speaking from experience.

[@dreamlifeinMexico]

Agree, but we only buy rentals in us as it's better ROI and leverage.

[@gloriamendez2386]

Are you buying something else in USA? Where did you invest the money of the sale?

[@dreamlifeinMexico]

Yes, we bought a mobile home to rent out

[@2ndlife-ql1hc]

Or if you keep Pesos money in Mexico, there are many banks have deposit interest rate more than 10% annually. Also good

[@ZanakinzMedia]

My wife and I are planning on buying a condo in CDMX or a house in QRO. We were looking at around $100-150k. Our goal is to have a base in North America, Europe and Asia for our children to have the most options in life.
We have a house in the USA and the property taxes & insurance keep skyrocketing… I was told by our family in Mexico that property taxes & insurance are way lower. I’m hoping this is true lol. I am thinking of selling it and buying in Mexico instead.

[@intotheblue970]

You won't get anything half decent for that amount in either of those cities

[@chasingtheAmericanDream]

@@intotheblue970They prob won’t find anything for that price in those cities and if they do it will be a house that is falling apart or needs a LOT of work. You can buy a good house for that cost in La Piedad Michoacán (and towns that are rural) but in CDMX or Queretaro I think it would be almost impossible to find something decent in those cities that doesn’t need work. I am not going to say it’s impossible but it would certainly be hard in a good safe part of town in decent condition

[@ZanakinzMedia]

@@intotheblue970 my family lives in QRO so I have options in that state but I am hoping to find a place in CDMX. Remember it’s just a condo. In the total amount I’m not including HOA fees. I would fathom it’s possible to find something there.

[@ZanakinzMedia]

@@intotheblue970 we were also thinking of Spain or Istanbul for Europe

[@adrianadarnell]

@@chasingtheAmericanDream La piedad has beach?

[@happyslave6783]

So it was a big waste of time. Even with getting lucky on the exchange rate both buying and selling you only barely broke even? And all the risk of getting scammed or getting a squatting tenant who seem to be protected in Mexico too. The whole thing looks like a fool's errand. How long diid you own the property?

[@dreamlifeinMexico]

@happyslave6783 I definitely wouldn't call it a waste of time. We didn't lose to inflation and if we were willing to wait a while then we could have turned a nicer profit, it's all about what you're willing to do. Plus this we bought the home brand new from a well known, established builder, and when we did put a tenant in we used a reputable agency and a poliza juridica to help alleviate any possible issues with the tenant.

[@mlockey1]

This is an interesting video, but what were the total selling costs? Was it a percentage or a set amount?

[@2ndlife-ql1hc]

as a summary from here and some other articles I read:
1) buying house in Mexico will cost extra 5~10%, transfer tax of 2% plus many other items of fixed cost, the notaria fees etc;
2) selling house in Mexico will also cost extra 5~10%, including a percentage of income tax if there’s a profit of property value growth than the buy-in price; and again many other items of fixed cost,
So if buying and hold too short time and sell, it would almost be a loss, because of too many items of fixed cost, so it’s almost no room for profit of up-flipping, and under 3 years still too short consider the total is loss. Only if you hold 5 years 10 years, when the property value growth is enough is offset all fixed items costs; 🎉

[@brucedevenow4469]

Which realtor was able to sell your house?

[@dreamlifeinMexico]

@brucedevenow4469 if you reach out to us i can give you her contact info

[@arion700]

What was you closing costs approximately as a percentage (all fees). This needs to be taken into account when pricing the house I expect.
Also why did you choose a different notaria when selling, was this at the buyers insistence
Thanks

[@2ndlife-ql1hc]

8~10% as I guess from here and many other cases selling house in Mexico 🎉

[@xiomanaxoxoxo3212]

Renting is sounding bettter and better. hahahahahahaa

[@lemmuhj]

My wife is Mexican..they don't have an urgency like us Americans 😅😅😅

[@wetguavass]

The real Americans are the brown people of Mexico, Nicaragua, Venezuela, Bolivia, etc.

[@dreamlifeinMexico]

They most certainly don't! but that a good thing, right? 😂