BUYING PROPERTY IN MEXICO AS A CANADIAN. How to buy property in Mexico as a foreigner.
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- เผยแพร่เมื่อ 5 ต.ค. 2024
- Are you interested in buying property in Mexico as a non-resident? This could be a rental property in Mexico or maybe you want to buy something to live in during the winter months. In this video I sit down with fellow Canadian Ron Chabot to discuss how him and his wife bought their first property in Ixtapa, Mexico and the process to follow if you're interested in investing in properties in Mexico.
DISCLAIMER:
WITH ANY AND ALL INVESTING YOU SHOULD ALWAYS OBTAIN INDEPENDENT LEGAL, TAXATION AND FINANCIAL ADVICE FROM A LICENSED PROFESSIONAL BEFORE INVESTING ANY OF YOUR OWN MONEY.
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I sat down with my friend Ron Chabot while I was travelling in Mexico this winter. Ron and his wife Pat bought their first property in Ixtapa, Mexico 7 years ago. It was a bit of a unique situation based on some circumstances such as a builder that went bankrupt and the bank stepping in and taking over the sales process. There are a variety of differences with purchasing property in Mexico vs buying in Canada so It was great to be walked through this process as a beginners guide to real estate investing in Mexico.
Ron talks about his experience in dealing with two different sales teams working for the same cause which got confusing. Eventually the sellers realized this was not the most efficient way and scaled down to one team to make things easier.
There was also the issue of what state some of the units in the building were in. Some had been completely finished and others had electrical wires sticking out of the walls and no AC units installed and were being sold in "AS IS" condition.
Once Ron and Pat had decided on the unit they wanted, now came the time to make an offer, finalize it and sign the legal documents with the Notary which required an additional trip down to Mexico to sign documents in person.
Because this property falls in the restricted zone in Mexico, Ron and Pat were required to purchase the property in a real estate trust. The trust holds the asset with Ron and Pat being the beneficial owners of that trust on a 99 year lease.
Following the legal proceedings, Ron and Pat were able to take possession of the unit and start making the unit live-in ready and start enjoying their new purchase.
Because financing can be difficult in Mexico, Ron and Pat purchased the property in cash, therefore their only expenses are the monthly maintenance fees, hydro costs and some other small expenses related to owning property in Mexico.
This property was purchased for about $186,000 CAD (fully furnished) and if rented would generate approximately $3200-$3500 CAD per month for 5-6 months a year. Some recent sales in the same complex of similar type units have been in the $350,000 CAD range.
Whether this property is used as a vacation rental, an AirBnB or is owner-occupied it's an all round solid investment.
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Great vid! I help so many Canadians moving to Mexico with their nonresident Canadian tax implications. It’s amazing to see how Canadians are diversifying globally.
thanks for the transparency and great information!
Any time!
Lots to do here for sure. I see in the last year more than 12% of Canadian are investing here, Riviera Maya .Of course due diligence it must and so been a realtor in Canada and in Mexico with license help a lot. :) Darren i saw you at multi conference 2024, sorry i miss to say hi.
Very useful and well done video, especially from a Canadian's perspective!!
Glad you liked it Jeff
Very Useful info for Mexico bound Expats and Snow Birds
This was great. AS a Canadian considering buying property in Mexico, these are the stories I'm looking for.
And I cannot get over how much he sounds like Geddy Lee. I bet he sings a killer "Temples of Syrinx".
Glad you enjoyed it Alaina. I'll be heading there next week so I'm looking forward to going back.
Great info, I'm from where he is as well, sounds very good. I like the term "Realtor"
Very cool!
Nice video…. I’m an American who dreams of buying property in Mexico. Shockingly little information out there in this
This is crazy, Me and my wife have shopped at 53rd street music for as long as we can remember.... Small world.
That is a crazy small world. i was just home in RD and stopped in to the store and one of my high school buddies I was in a band with is working at the store now.
Pls clarify: 21k revenue, less 6k condo fee (including property tax?) = 15k, net income.
I hope it's a gorgeous development for $500 condo fee / month is quite high I think.
It's a really nice development and area.
You're in Mexico and drinking Bud Light??? Otherwise, good information in this video!
Gracias!
Haha, Ron's choice not mine. I'm more into local beer.
Ixtapa … i live there in 94-95….. i worked at sr frog….. gorgeous city…
I LOVE THIS VIDEO! WOW I SUBSCRIBED
Awesome to hear, glad to have you as part of the team!
Wow great interview dude. Sub
180k? from someone in toronto, that sounds like a miracle!
For those of us in Toronto, everything seems reasonably priced :)
Insightful video! Would like to see options down south outside Mexico that don’t use leasehold and have simple fee Title ownership like Canada. Thanks for sharing !!
Thanks Shawn. Great suggestion on a future topic. Were you thinking specifically of any one place? I have some stuff coming up on the US market.
Darren Voros I’ve purchased land in 🇧🇿 Belize, they have English contracts and Simple Fee Title. I’d like to hear from someone who has purchased a property or build already and seen the ROI over several years.
@@shawnrea1 Let me reach out to a few people I know who invest in Central America and see if I might be able to connect you with someone who can give you some insight
This was pretty good but try not to interrupt quite so often.
Great info though that will help a lot of people.
Looking like Timothy Olyphant on your side profile. Haha, great video!
Interesting but I think it is a bit optimistic in terms of rental returns. What are the costs of renting the apartment in terms of property management costs, unit turns, administration fees, bank trust fees, and taxes? I imagine there is ongoing attorney and accountant expenses to ensure compliance with Mexican rental and tax laws. I have also seen other videos that claim you must be a permanent resident to legally make income in Mexico.
There are definitely fees to consider but because they are there, they self manage. I'm not a tax expert though so we always default to the pros to tell us how we invest in a foreign country.
@@DarrenVoros
plus I think that guy on the right, is a permanent resident in Mexico. I don't see it being logical to be temporary resident and own property. Best become a permanent resident. But it takes time and money . You can probably do it as a temporary resident too , it just takes money .
Guys, do not believe that a trust will protect your investment in Mexico. I purchased a home there and married a Mexican citizen after. We divorced two years ago, she is now suing me for 50% of my property. Despite numerous court appearances, Banco Monex, which initially assured me of the property's security, is now requiring me to defend my ownership
Great information! Love the creative editing. How involved are they in acquiring tenants? Would there be any advantage to buying two if they wanted to become expats and live there for more time of the year?
Thank you! They find most of their tenants through referrals from other residents in the building. Friends and family come and visit for a week and then want to come back and stay 3-4 months :)
I think they ended up buying the penthouse that was for sale and are either going to move into it, rent it out or sell it again. I'll have to go down again next year and check it out. Ha
Getting a head start by beginning early is the most effective way to build wealth, with investment taking precedence. I've learned from last year's experience that starting early allowed me to create a better life through early investments this time around.
I always consult a financial advisor before investing. During the pandemic, I used their strategies to minimise risks and maximize profits, generating around $3 million in three years with my advisor, Jenny Pamogas Canaya.
With the help of google you can book an appointment. She has a wealth of experience in the financial market gained over several years.
Great interview. 👍🏾 Peso vs USD is 58% since 2013... Can the ROI be amended to include inflation and or currency exchange rate?... The latter sounds huge.
Yes you can definitely make that calculation. I don't usually factor in inflation in my numbers but it's definitely something to pay attention to.
What happens after a 100 years. Does the bank then own the property?
Can you share the details on this location in Mexico?
Yes, this is in Ixtapa.
1. do you require any kind of citizenship to live there year round?
2. How are you taxed? by Cdn gov't or Mex gov't on a mexico cashflow property and/or sale?
You need a visa number 2. I’m not sure
Yes, you would need a permanent residency to live year round legally..you would need to show proof of income and net worth..I would start by making an appointment with you local Mexican embassy..there is only a property tax you pay yearly (el predial) I own a property in Tijuana Mexico and only pay 100$ a year on el predial (will probably be more for you with current prices of homes/land going up)
you can live in Mexico year round on a 180 day visa but return to reset, but to avoid capital gains tax when you sell you need residency for 3 years.
@@toonietom that’s illegal, Mexico is starting to crack down on that..the new president has updated there immigration system and trying to get rid of corruption..specially with all the immigrant caravans coming from Central America and South America..
@@alfredoguerrero the corruption is people work in Mexico on a tourist visa.
Don’t care about revenue...it’s click bait! What’s the net income or cap rate?
Very informative video. I am interested in purchasing property in Mexico. I am a South Florida resident but don't understand much about the tax laws and or what I should be considering when purchasing a property. P.S looking into Ocean Tulum targeted to be done in 2023. Is there someone you can refer me to or can you do a video on investing as a US citizen in the Tulum area and what we should consider - laws, fees etc.?
Hi, I would like to connect with you about buying property in Mexico I am a realtor in Canada.
Great vid! Do you know the process of paying as a Canadian? Is it normally exchanging Cad dollars into USD and that's it? Does a Peso conversion need to happen at some point? Thanks
real estate in Mexico is usually traded in pesos. In the real tourist areas where both the buyer and seller are not Mexican they might trade in USD if both parties agree.
It looks like the developer and bank decided to sell in USD. I’m guessing most of buyers were Americans and Canadians so that would be more comfortable for the buyers. The buyers don’t have to worry about changes in exchange between contracting and closing.
Which city in Mexico
What is the name of Canadian agent
I am looking to buy one
Nice
Thanks
Hello..i would be interested to connect and discuss property investments in Mexico
Hi! Let’s connect about that. We operate our brokerage in the Riviera Maya. Would love to talk some options 😁
Do you need a temporary/permanent/work visa to rent it out to people? (Wouldn't it be considered commercial activity and don't you need a visa for that?)
3500 can dollars a month, r u sure?
I would like to move to Mexico, do you have any guide to do it?
It is not a lease back
Buy the beach condo
Agreed!
what happens at the expiry of the 99 yr lease
I believe you can renew. I'd be surprised if this building is still standing in 99 years and Ron definitely won't be lol
@@DarrenVoros im thinking of generationally. passing down to my kids
Great interview guys ! Curious where they bought the beautiful furniture?
Good question! Pat did most of the shopping. there are great furniture stores in Mexico with many local manufacturers. And Amazon does deliver there so.... hahaha
hi Darren are you from Alberta?
Yes!
Hi Darren My name is Steve from Canada. My question is how do you get large amounts of money to Mexico to make cash purchases? My wife and I are here and are considering buying a property. Can you help?
Hi Steve! I would love to connect with you and your wife to help you out if you guys are still interested 😁
I need a notario in Oaxaca.
I don't know anyone in that area unfortunately.
Wow... awesome info! We are Canadians thinking of retiring soon ( 2023) and love all of Mexico, but love Ixtapa ( Zihua) a lot! How much would it be to rent his other unit while we look for a place to buy?
We are at final procedure for buying, west coast! May be I can help!
@@NN-yq3yl where about? We're looking at January '23 to make the move.
In acapulco
@@NN-yq3yl we're think Vallarta area, any issues with the buying process?
It is more expensive in PV and in uS $
Great video! Do you have any info on how taxes would work in Canada and Mexico when renting the apartment?
they said maint fees were $280, total $550cad a month, so probably $150 or so of that is taxes
You would be paying taxes to the Mexican Government, AND to the Canadian government. How much depends on how much you make.
How is the market now 7 months into COVID?
Great question Lynne. I saw Ron when I was home in Alberta last. They are still planning to go back this year as are most of their neighbours. He did say some were selling though and some just planned to wait another year until they head back.
Will Farrell rules
Agreed!!
Great video from Timothy Olyphant's twin
What happens after 99 years?
you dont own the rights to it anymore most likely
It just rolls over for another 100 years.
@@toonietom really? I've done quite a bit of research with owning property in Mexico and not once was that mentioned. It was more like 50 year trusts with a bank, and you still have to pay a yearly fee to keep the trust and then make a renewal at the expiration. It didn't seem as simple as just "rolling over"
@@kasiainwonderland of course you still have to pay and renew but you'll be rollin' over in your grave by that time.
Ask question and let the guy talk please! Geez you keep interrupting the guy
n México you never own a property is own by the state who only gives the posetion of the land but not the ownership hehehe at any moment the goverment could confiscate property. You need pay taxes for that proporty. Now new laws are going to passed to stop migration to México and visas are going to be imposed to US citenzens to stop gentrification that is ruining life in México and it is already very difficult to compete for resources
That is the same as the United States. You don't truly own any property in most of the US. If you stop paying the property tax the government takes it from you. You are only renting it from the government.
No way.
Way!
If the lease is 100 years... what happens when lease term ends?